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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 17, 2024
U.S. BANCORP
(Exact name of registrant as specified in its charter)
1-6880
(Commission File Number)
| | | | | |
Delaware | 41-0255900 |
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification Number) |
800 Nicollet Mall
Minneapolis, Minnesota 55402
(Address of principal executive offices and zip code)
(651) 466-3000
(Registrant’s telephone number, including area code)
(not applicable)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | |
Title of each class | Trading symbol | Name of each exchange on which registered |
Common Stock, $.01 par value per share | USB | New York Stock Exchange |
Depositary Shares (each representing 1/100th interest in a share of Series A Non-Cumulative Perpetual Preferred Stock, par value $1.00) | USB PrA | New York Stock Exchange |
Depositary Shares (each representing 1/1,000th interest in a share of Series B Non-Cumulative Perpetual Preferred Stock, par value $1.00) | USB PrH | New York Stock Exchange |
Depositary Shares (each representing 1/1,000th interest in a share of Series K Non-Cumulative Perpetual Preferred Stock, par value $1.00) | USB PrP | New York Stock Exchange |
Depositary Shares (each representing 1/1,000th interest in a share of Series L Non-Cumulative Perpetual Preferred Stock, par value $1.00) | USB PrQ | New York Stock Exchange |
Depositary Shares (each representing 1/1,000th interest in a share of Series M Non-Cumulative Perpetual Preferred Stock, par value $1.00) | USB PrR | New York Stock Exchange |
Depositary Shares (each representing 1/1,000th interest in a share of Series O Non-Cumulative Perpetual Preferred Stock, par value $1.00) | USB PrS | New York Stock Exchange |
Floating Rate Notes, Series CC (Senior), due May 21, 2028 | USB/28 | New York Stock Exchange |
4.009% Fixed-to-Floating Rate Notes, Series CC (Senior), due May 21, 2032 | USB/32 | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule l2b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ Emerging growth company
☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section l3(a) of the Exchange Act.
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On July 17, 2024, U.S. Bancorp (the “Company”) issued a press release reporting financial results for the quarter ended June 30, 2024. The press release is attached as Exhibit 99.1 hereto and is incorporated herein by reference. The press release contains forward-looking statements regarding the Company and includes a cautionary statement identifying important factors that could cause actual results to differ materially from those anticipated. The Company has also made available on its website materials that contain additional information about the Company’s financial results for the quarter ended June 30, 2024 (the “2Q24 Earnings Supplement”), which is attached as Exhibit 99.2 hereto and is incorporated herein by reference.
The information included in Exhibit 99.1 shall be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The information included in Exhibit 99.2 is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act and shall not be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended (the “Securities Act”), except as otherwise expressly stated in such filing.
ITEM 7.01 REGULATION FD DISCLOSURE.
On July 17, 2024, the Company will hold an investor conference call and webcast to discuss financial results for the quarter ended June 30, 2024. The Company has also made available on its website presentation materials containing certain additional historical and forward-looking information related to the Company (the “2Q24 Earnings Conference Call Presentation”). The 2Q24 Earnings Conference Call Presentation is attached as Exhibit 99.3 and is incorporated herein by reference. The 2Q24 Earnings Conference Call Presentation contains forward-looking statements regarding the Company and includes a cautionary statement identifying important factors that could cause actual results to differ materially from those anticipated.
The information provided in Item 7.01 of this report, including Exhibit 99.3, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act and shall not be deemed incorporated by reference in any filings under the Securities Act, except as otherwise expressly stated in such filing.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
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| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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U.S. BANCORP |
|
By /s/ Lisa R. Stark |
Lisa R. Stark |
Executive Vice President and Controller |
DATE: July 17, 2024
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2Q24 Key Financial Data | 2Q24 Highlights |
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| PROFITABILITY METRICS | 2Q24 | 1Q24 | 2Q23 | | | | •Net income of $1,622 million and diluted earnings per common share of $0.98, both as adjusted for a $26 million notable item for an increase in the Federal Deposit Insurance Corporation ("FDIC") special assessment •Net interest income, linked quarter, increased 0.9% on a taxable-equivalent basis •Average total loans increased 1.0% and average total deposits increased 2.2% on a linked quarter basis •Noninterest income increased 2.4% from the second quarter of a year ago and increased 4.3% on a linked quarter basis, as adjusted •Net revenue of $6,867 million, including $4,052 million of net interest income on a taxable-equivalent basis •Noninterest expense decreased 1.7% year-over-year and 0.1% on a linked quarter basis, as adjusted •Return on tangible common equity of 18.6%, return on average assets of 0.98%, and efficiency ratio of 60.7%, each as adjusted •CET1 capital ratio of 10.3% at June 30, 2024, compared with 10.0% at March 31, 2024
|
| Return on average assets (%) | .97 | | .81 | | .81 | | | | |
| Return on average common equity (%) | 12.4 | | 10.0 | | 10.9 | | | | |
| Return on tangible common equity (%) (a) | 18.4 | | 15.1 | | 17.1 | | | | |
| Net interest margin (%) | 2.67 | | 2.70 | | 2.90 | | | | |
| Efficiency ratio (%) (a) | 61.0 | | 66.4 | | 63.7 | | | | |
| Tangible efficiency ratio (%) (a) | 59.0 | | 64.2 | | 61.5 | | | | |
| | | | | | | |
| INCOME STATEMENT (b) | 2Q24 | 1Q24 | 2Q23 | | | |
| Net interest income (taxable-equivalent basis) | $4,052 | | $4,015 | | $4,449 | | | | |
| Noninterest income | $2,815 | | $2,700 | | $2,726 | | | | |
| Net income attributable to U.S. Bancorp | $1,603 | | $1,319 | | $1,361 | | | | |
| Diluted earnings per common share | $.97 | | $.78 | | $.84 | | | | |
| Dividends declared per common share | $.49 | | $.49 | | $.48 | | | | |
| | | | | | | |
| BALANCE SHEET (b) | 2Q24 | 1Q24 | 2Q23 | | | |
| Average total loans | $374,685 | | $371,070 | | $388,817 | | | | |
| Average total deposits | $513,909 | | $503,061 | | $497,265 | | | | |
| Net charge-off ratio (%) | .58 | | .53 | | .67 | | | | |
| Book value per common share (period end) | $31.80 | | $31.26 | | $30.14 | | | | |
| Basel III standardized CET1 (%) (c) | 10.3 | | 10.0 | | 9.1 | | | | |
| | | | | | | |
| (a) See Non-GAAP Financial Measures reconciliation on page 18 (b) Dollars in millions, except per share data (c) CET1 = Common equity tier 1 capital ratio | | | |
“In the second quarter, we posted diluted earnings per share of $0.98 and delivered a return on tangible common equity of 18.6%, both as adjusted. This quarter we generated $6.9 billion in net revenue driven by improved linked quarter net interest income, supported by healthy deposit growth, and continued momentum in leveraging our diversified fee income platform to deepen relationships. We continued to invest for the future while managing our operating expenses prudently, with both linked quarter and year-over-year declines in noninterest expense. This quarter, credit metrics continued to perform in line with expectations, and we believe our reserve levels are appropriate for future losses. All capital and liquidity ratios remain strong, and we increased our CET1 ratio by 30 basis points to end the quarter at 10.3% - a year-over-year increase of 120 basis points. As we head into the back half of this year, we are well-positioned with national scale, an interconnected business model and superior digital capabilities, to continue our delivery of industry leading returns over the long term. I would like to thank all our employees for their continued focus on best serving our clients, communities, and shareholders.”
— Andy Cecere, Chairman and CEO, U.S. Bancorp
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Business and Other Highlights |
U.S. Bancorp promotes Gunjan Kedia to President
U.S. Bancorp announced that Gunjan Kedia will be its new president, reporting to Andy Cecere, who will retain the title of chairman and CEO. Ms. Kedia will oversee the company's three primary revenue-generating business lines, ensuring a shared focus on growth and holistic client experiences across its entire network. Ms. Kedia has spent nearly 30 years in financial services and joined U.S. Bancorp in 2016. She previously served as vice chair of Wealth, Corporate, Commercial and Institutional Banking.
U.S. Bank Recognized as Best-In-Class for Digital Banking
During the quarter, U.S. Bank was named in the top spot of "Best-In-Class" for both its mobile app and online banking in Javelin's annual Mobile Banking and Online Banking Scorecards. U.S. Bank was recognized for overall ease of use, money movement, financial fitness, customer service, relationship deepening and security empowerment in its digital tool.
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Notable Item Impacts 2Q24
($ in million, except per share data) | Income Before Taxes | Net Income Attributable to U.S. Bancorp | Diluted Earnings Per Common Share |
Reported | $2,085 | | $1,603 | | $.97 | |
Notable items | 26 | | 19 | | .01 | |
Adjusted | $2,111 | | $1,622 | | $.98 | |
| | | |
Notable Items | | | |
($ in millions) | 2Q24 | 1Q24 | 2Q23 |
Balance sheet optimization | $— | | $— | | $22 | |
Merger and integration charges | — | | 155 | | 310 | |
FDIC special assessment | 26 | | 110 | | — | |
| | | |
Provision for credit losses | — | | — | | 243 | |
Notable items | 26 | | 265 | | 575 | |
Tax expense | (7) | | (66) | | (143) | |
Notable items, net of tax expense | $19 | | $199 | | $432 | |
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Investor contact: George Andersen, 612.303.3620 | Media contact: Jeff Shelman, 612.303.9933 |
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| U.S. Bancorp Second Quarter 2024 Results |
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INCOME STATEMENT HIGHLIGHTS |
($ in millions, except per share data) | | | ADJUSTED (a) (b) |
| | | | Percent Change | | | | | | Percent Change |
| 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q24 vs 1Q24 | 2Q24 vs 2Q23 | | | 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q24 vs 1Q24 | 2Q24 vs 2Q23 |
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Net interest income | $4,023 | | $3,985 | | $4,415 | | 1.0 | | (8.9) | | | | $4,023 | | $3,985 | | $4,415 | | 1.0 | | (8.9) | |
Taxable-equivalent adjustment | 29 | | 30 | | 34 | | (3.3) | | (14.7) | | | | 29 | | 30 | | 34 | | (3.3) | | (14.7) | |
Net interest income (taxable-equivalent basis) | 4,052 | | 4,015 | | 4,449 | | .9 | | (8.9) | | | | 4,052 | | 4,015 | | 4,449 | | .9 | | (8.9) | |
Noninterest income | 2,815 | | 2,700 | | 2,726 | | 4.3 | | 3.3 | | | | 2,815 | | 2,700 | | 2,748 | | 4.3 | | 2.4 | |
Total net revenue | 6,867 | | 6,715 | | 7,175 | | 2.3 | | (4.3) | | | | 6,867 | | 6,715 | | 7,197 | | 2.3 | | (4.6) | |
Noninterest expense | 4,214 | | 4,459 | | 4,569 | | (5.5) | | (7.8) | | | | 4,188 | | 4,194 | | 4,259 | | (.1) | | (1.7) | |
Income before provision and income taxes | 2,653 | | 2,256 | | 2,606 | | 17.6 | | 1.8 | | | | 2,679 | | 2,521 | | 2,938 | | 6.3 | | (8.8) | |
Provision for credit losses | 568 | | 553 | | 821 | | 2.7 | | (30.8) | | | | 568 | | 553 | | 578 | | 2.7 | | (1.7) | |
Income before taxes | 2,085 | | 1,703 | | 1,785 | | 22.4 | | 16.8 | | | | 2,111 | | 1,968 | | 2,360 | | 7.3 | | (10.6) | |
Income taxes and taxable-equivalent adjustment | 474 | | 377 | | 416 | | 25.7 | | 13.9 | | | | 481 | | 443 | | 559 | | 8.6 | | (14.0) | |
Net income | 1,611 | | 1,326 | | 1,369 | | 21.5 | | 17.7 | | | | 1,630 | | 1,525 | | 1,801 | | 6.9 | | (9.5) | |
Net (income) loss attributable to noncontrolling interests | (8) | | (7) | | (8) | | (14.3) | | — | | | | (8) | | (7) | | (8) | | (14.3) | | — | |
Net income attributable to U.S. Bancorp | $1,603 | | $1,319 | | $1,361 | | 21.5 | | 17.8 | | | | $1,622 | | $1,518 | | $1,793 | | 6.9 | | (9.5) | |
Net income applicable to U.S. Bancorp common shareholders | $1,518 | | $1,209 | | $1,281 | | 25.6 | | 18.5 | | | | $1,537 | | $1,407 | | $1,710 | | 9.2 | | (10.1) | |
Diluted earnings per common share | $.97 | | $.78 | | $.84 | | 24.4 | | 15.5 | | | | $.98 | | $.90 | | $1.12 | | 8.9 | | (12.5) | |
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(a)2Q24 excludes a $26 million ($19 million net-of-tax) notable item for an increase in the FDIC special assessment. 1Q24 excludes $265 million ($199 million net-of-tax) of notable items including: $155 million of merger and integration-related charges and a $110 million charge for the increase in the FDIC special assessment. 2Q23 excludes $575 million ($432 million net-of-tax) of notable items including: $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $310 million of merger and integration-related charges and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions.
(b)See Non-GAAP Financial Measures reconciliation beginning on page 18 | | | | | | | | | | | | | | | | | | | | | | | | | | |
INCOME STATEMENT HIGHLIGHTS |
($ in millions, except per share data) | | | | | | ADJUSTED (c) (d) |
| YTD 2024 | YTD 2023 | Percent Change | | | YTD 2024 | YTD 2023 | Percent Change |
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Net interest income | $8,008 | | $9,049 | | (11.5) | | | | $8,008 | | $9,049 | | (11.5) | |
Taxable-equivalent adjustment | 59 | | 68 | | (13.2) | | | | 59 | | 68 | | (13.2) | |
Net interest income (taxable-equivalent basis) | 8,067 | | 9,117 | | (11.5) | | | | 8,067 | | 9,117 | | (11.5) | |
Noninterest income | 5,515 | | 5,233 | | 5.4 | | | | 5,515 | | 5,255 | | 4.9 | |
Total net revenue | 13,582 | | 14,350 | | (5.4) | | | | 13,582 | | 14,372 | | (5.5) | |
Noninterest expense | 8,673 | | 9,124 | | (4.9) | | | | 8,382 | | 8,570 | | (2.2) | |
Income before provision and income taxes | 4,909 | | 5,226 | | (6.1) | | | | 5,200 | | 5,802 | | (10.4) | |
Provision for credit losses | 1,121 | | 1,248 | | (10.2) | | | | 1,121 | | 1,005 | | 11.5 | |
Income before taxes | 3,788 | | 3,978 | | (4.8) | | | | 4,079 | | 4,797 | | (15.0) | |
Income taxes and taxable-equivalent adjustment | 851 | | 905 | | (6.0) | | | | 924 | | 1,109 | | (16.7) | |
Net income | 2,937 | | 3,073 | | (4.4) | | | | 3,155 | | 3,688 | | (14.5) | |
Net (income) loss attributable to noncontrolling interests | (15) | | (14) | | (7.1) | | | | (15) | | (14) | | (7.1) | |
Net income attributable to U.S. Bancorp | $2,922 | | $3,059 | | (4.5) | | | | $3,140 | | $3,674 | | (14.5) | |
Net income applicable to U.S. Bancorp common shareholders | $2,727 | | $2,873 | | (5.1) | | | | $2,944 | | $3,483 | | (15.5) | |
Diluted earnings per common share | $1.75 | | $1.87 | | (6.4) | | | | $1.89 | | $2.27 | | (16.7) | |
(c)2024 excludes $291 million ($218 million net-of-tax) of notable items including: $155 million of merger and integration-related charges and $136 million for the increase in the FDIC special assessment. 2023 excludes $819 million ($615 million net-of-tax) of notable items including: $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $554 million of merger and integration-related charges and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions.
(d)See Non-GAAP Financial Measures reconciliation beginning on page 18
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| U.S. Bancorp Second Quarter 2024 Results |
Net income attributable to U.S. Bancorp was $1,603 million for the second quarter of 2024, $242 million higher than the $1,361 million for the second quarter of 2023 and $284 million higher than the $1,319 million for the first quarter of 2024. Diluted earnings per common share was $0.97 in the second quarter of 2024, compared with $0.84 in the second quarter of 2023 and $0.78 in the first quarter of 2024. The second quarter of 2024 included $19 million, or ($0.01) per diluted common share, of notable item(s), net-of-tax, compared with $432 million or ($0.28) per diluted common share in the second quarter of 2023 and $199 million or ($0.12) per diluted common share in the first quarter of 2024. On an adjusted basis, excluding the impacts of these notable items, net income applicable to common shareholders for the second quarter of 2024 was $1,537 million, which was $173 million lower than the second quarter of 2023 and $130 million higher than the first quarter of 2024. Diluted earnings per common share was $0.98 in the second quarter of 2024, on an adjusted basis.
The increase in net income attributable to U.S. Bancorp year-over-year was primarily due to lower noninterest expense, a decline in notable items from the prior year quarter, and a decrease in the provision for credit losses, partially offset by lower total net revenue. Pretax income, excluding notable items, in the second quarter of 2024 decreased 10.6 percent compared with a year ago. Net interest income decreased 8.9 percent on a year-over-year taxable-equivalent basis, due to the impact of higher interest rates on deposit mix and pricing, partially offset by higher rates on earning assets and balance sheet optimization activities. The net interest margin decreased to 2.67 percent in the second quarter of 2024 from 2.90 percent in the second quarter of 2023, driven by similar factors. Noninterest income increased 3.3 percent (2.4 percent excluding notable items in the prior year quarter) compared with a year ago driven by higher fee revenue across most categories. The current year quarter included losses on the sales of securities which was offset by a gain on the sale of mortgage servicing rights. Noninterest expense decreased 7.8 percent (1.7 percent excluding notable items) primarily due to prudent expense management, continued focus on operational efficiency, and synergies from the acquisition of MUFG Union Bank ("MUB"), partially offset by higher marketing and business development expense. The provision for credit losses decreased $253 million (30.8 percent) ($10 million (1.7 percent) excluding notable items in the prior year quarter) compared with the second quarter of 2023 largely driven by stabilization in both the economic and credit environment amidst stress in the commercial real estate portfolio.
Net income attributable to U.S. Bancorp increased on a linked quarter basis primarily due to higher total net revenue and a decline in notable items from the prior quarter. Pretax income, excluding notable items, increased 7.3 percent on a linked quarter basis. Net interest income increased 0.9 percent on a taxable-equivalent basis due to deposit and earning asset growth, earning asset repricing and mix as well as continued discipline of overall funding costs. The net interest margin decreased to 2.67 percent in the second quarter of 2024 from 2.70 percent in the first quarter of 2024 driven by a higher earning asset base partially offset by factors mentioned above. Noninterest income in the second quarter of 2024 increased 4.3 percent from the first quarter of 2024, primarily due to higher payment services revenue, while losses on the sales of securities was offset by a gain on the sale of mortgage servicing rights. Excluding notable items, noninterest expense decreased 0.1 percent on a linked quarter basis due to lower compensation and employee benefits expense, partially offset by higher marketing and business development expense. The provision for credit losses increased $15 million (2.7 percent) compared with the first quarter of 2024 primarily due to loan portfolio growth.
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| U.S. Bancorp Second Quarter 2024 Results |
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NET INTEREST INCOME |
(Taxable-equivalent basis; $ in millions) | | | | | | | Change | | | | | | |
| 2Q 2024 | | 1Q 2024 | | 2Q 2023 | | 2Q24 vs 1Q24 | | 2Q24 vs 2Q23 | | YTD 2024 | | YTD 2023 | | Change | |
| | | | | | | | | | | | | | | | |
Components of net interest income | | | | | | | | | | | | | | | | |
Income on earning assets | $ | 8,015 | | | $ | 7,795 | | | $ | 7,562 | | | $ | 220 | | | $ | 453 | | | $ | 15,810 | | | $ | 14,561 | | | $ | 1,249 | | |
Expense on interest-bearing liabilities | 3,963 | | | 3,780 | | | 3,113 | | | 183 | | | 850 | | | 7,743 | | | 5,444 | | | 2,299 | | |
Net interest income | $ | 4,052 | | | $ | 4,015 | | | $ | 4,449 | | | $ | 37 | | | $ | (397) | | | $ | 8,067 | | | $ | 9,117 | | | $ | (1,050) | | |
| | | | | | | | | | | | | | | | |
Average yields and rates paid | | | | | | | | | | | | | | | | |
Earning assets yield | 5.29 | | % | 5.25 | | % | 4.94 | | % | .04 | | % | .35 | | % | 5.27 | | % | 4.80 | | % | .47 | | % |
Rate paid on interest-bearing liabilities | 3.18 | | | 3.12 | | | 2.60 | | | .06 | | | .58 | | | 3.15 | | | 2.34 | | | .81 | | |
Gross interest margin | 2.11 | | % | 2.13 | | % | 2.34 | | % | (.02) | | % | (.23) | | % | 2.12 | | % | 2.46 | | % | (.34) | | % |
Net interest margin | 2.67 | | % | 2.70 | | % | 2.90 | | % | (.03) | | % | (.23) | | % | 2.68 | | % | 3.00 | | % | (.32) | | % |
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Average balances | | | | | | | | | | | | | | | | |
Investment securities (a) | $ | 167,020 | | | $ | 161,236 | | | $ | 159,824 | | | $ | 5,784 | | | $ | 7,196 | | | $ | 164,128 | | | $ | 162,957 | | | $ | 1,171 | | |
Loans | 374,685 | | | 371,070 | | | 388,817 | | | 3,615 | | | (14,132) | | | 372,878 | | | 387,789 | | | (14,911) | | |
Interest-bearing deposits with banks | 53,056 | | | 50,903 | | | 51,972 | | | 2,153 | | | 1,084 | | | 51,979 | | | 47,662 | | | 4,317 | | |
Earning assets | 608,892 | | | 596,135 | | | 613,839 | | | 12,757 | | | (4,947) | | | 602,513 | | | 610,744 | | | (8,231) | | |
Interest-bearing liabilities | 500,464 | | | 487,351 | | | 480,450 | | | 13,113 | | | 20,014 | | | 493,908 | | | 469,324 | | | 24,584 | | |
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(a) Excludes unrealized gain (loss) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Net interest income on a taxable-equivalent basis in the second quarter of 2024 was $4,052 million, a decrease of $397 million (8.9 percent) from the second quarter of 2023. The decrease was primarily due to the impact of deposit mix and pricing, partially offset by higher rates on earning assets. Average earning assets were $4.9 billion (0.8 percent) lower than the second quarter of 2023, reflecting decreases of $14.1 billion (3.6 percent) in average total loans, partially offset by increases of $7.2 billion (4.5 percent) in average investment securities due to balance sheet positioning and liquidity management and $1.1 billion (2.1 percent) in average interest-bearing deposits with banks.
Net interest income on a taxable-equivalent basis increased $37 million (0.9 percent) on a linked quarter basis primarily due to deposit and earning asset growth, earning asset repricing and mix as well as continued discipline of overall funding costs. Average earning assets were $12.8 billion (2.1 percent) higher on a linked quarter basis, reflecting increases in average investment securities of $5.8 billion (3.6 percent), average total loans of $3.6 billion (1.0 percent), and average interest-bearing deposits with banks of $2.2 billion (4.2 percent).
The net interest margin in the second quarter of 2024 was 2.67 percent, compared with 2.90 percent in the second quarter of 2023 and 2.70 percent in the first quarter of 2024. The decreases in the net interest margin from the prior year and the linked quarter were driven by the factors mentioned above, inclusive of changes in balance sheet composition. The yields on earning assets continue to expand as fixed-rate assets reprice at higher levels while deposit migration has been stabilizing and the rate of change in deposit pricing has moderated over the past several quarters.
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| U.S. Bancorp Second Quarter 2024 Results |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
AVERAGE LOANS |
($ in millions) | | | | Percent Change | | | |
| 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q24 vs 1Q24 | 2Q24 vs 2Q23 | YTD 2024 | YTD 2023 | Percent Change |
| | | | | | | | |
Commercial | $130,162 | | $126,602 | | $133,697 | | 2.8 | | (2.6) | | $128,382 | | $132,469 | | (3.1) | |
Lease financing | 4,177 | | 4,165 | | 4,388 | | .3 | | (4.8) | | 4,171 | | 4,422 | | (5.7) | |
Total commercial | 134,339 | | 130,767 | | 138,085 | | 2.7 | | (2.7) | | 132,553 | | 136,891 | | (3.2) | |
| | | | | | | | |
Commercial mortgages | 40,871 | | 41,545 | | 43,214 | | (1.6) | | (5.4) | | 41,208 | | 43,420 | | (5.1) | |
Construction and development | 11,418 | | 11,492 | | 11,720 | | (.6) | | (2.6) | | 11,455 | | 11,843 | | (3.3) | |
Total commercial real estate | 52,289 | | 53,037 | | 54,934 | | (1.4) | | (4.8) | | 52,663 | | 55,263 | | (4.7) | |
| | | | | | | | |
Residential mortgages | 116,478 | | 115,639 | | 117,606 | | .7 | | (1.0) | | 116,059 | | 116,950 | | (.8) | |
| | | | | | | | |
Credit card | 28,349 | | 27,942 | | 26,046 | | 1.5 | | 8.8 | | 28,145 | | 25,809 | | 9.1 | |
| | | | | | | | |
Retail leasing | 4,185 | | 4,082 | | 4,829 | | 2.5 | | (13.3) | | 4,134 | | 5,034 | | (17.9) | |
Home equity and second mortgages | 13,053 | | 12,983 | | 12,753 | | .5 | | 2.4 | | 13,018 | | 12,763 | | 2.0 | |
Other | 25,992 | | 26,620 | | 34,564 | | (2.4) | | (24.8) | | 26,306 | | 35,079 | | (25.0) | |
Total other retail | 43,230 | | 43,685 | | 52,146 | | (1.0) | | (17.1) | | 43,458 | | 52,876 | | (17.8) | |
| | | | | | | | |
Total loans | $374,685 | | $371,070 | | $388,817 | | 1.0 | | (3.6) | | $372,878 | | $387,789 | | (3.8) | |
| | | | | | | | |
Average total loans for the second quarter of 2024 were $14.1 billion (3.6 percent) lower than the second quarter of 2023. The decrease was primarily due to lower total commercial loans (2.7 percent), total commercial real estate loans (4.8 percent) and total other retail loans (17.1 percent), partially offset by higher credit card loans (8.8 percent). The decrease in commercial loans was primarily due to decreased demand as corporate customers accessed the capital markets. The decrease in commercial real estate loans was primarily due to payoffs exceeding a reduced level of new originations. The decrease in other retail loans was primarily due to balance sheet repositioning and capital management activities executed in 2023. The increase in credit card loans was primarily driven by higher spend volume.
Average total loans were $3.6 billion (1.0 percent) higher than the first quarter of 2024. The increase was primarily due to higher total commercial loans (2.7 percent) and credit card loans (1.5 percent), partially offset by lower total commercial real estate loans (1.4 percent) and total other retail loans (1.0 percent). The increase in total commercial loans was primarily due to growth in corporate banking. The increase in credit card loans was primarily driven by higher spend volume. The decrease in total commercial real estate loans was primarily due to payoffs exceeding a reduced level of new originations. The decrease in other retail loans was primarily due to lower automobile loans.
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| U.S. Bancorp Second Quarter 2024 Results |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
AVERAGE DEPOSITS |
($ in millions) | | | | Percent Change | | | |
| 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q24 vs 1Q24 | 2Q24 vs 2Q23 | YTD 2024 | YTD 2023 | Percent Change |
| | | | | | | | |
Noninterest-bearing deposits | $83,418 | | $84,787 | | $113,758 | | (1.6) | | (26.7) | | $84,102 | | $121,705 | | (30.9) | |
Interest-bearing savings deposits | | | | | | | | |
Interest checking | 125,709 | | 125,011 | | 127,994 | | .6 | | (1.8) | | 125,360 | | 128,668 | | (2.6) | |
Money market savings | 208,386 | | 196,502 | | 152,893 | | 6.0 | | 36.3 | | 202,444 | | 149,948 | | 35.0 | |
Savings accounts | 38,855 | | 41,645 | | 58,993 | | (6.7) | | (34.1) | | 40,250 | | 63,883 | | (37.0) | |
Total savings deposits | 372,950 | | 363,158 | | 339,880 | | 2.7 | | 9.7 | | 368,054 | | 342,499 | | 7.5 | |
Time deposits | 57,541 | | 55,116 | | 43,627 | | 4.4 | | 31.9 | | 56,329 | | 39,554 | | 42.4 | |
Total interest-bearing deposits | 430,491 | | 418,274 | | 383,507 | | 2.9 | | 12.3 | | 424,383 | | 382,053 | | 11.1 | |
Total deposits | $513,909 | | $503,061 | | $497,265 | | 2.2 | | 3.3 | | $508,485 | | $503,758 | | .9 | |
| | | | | | | | |
Average total deposits for the second quarter of 2024 were $16.6 billion (3.3 percent) higher than the second quarter of 2023. Average noninterest-bearing deposits decreased $30.3 billion (26.7 percent) driven by balance decreases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking. The decrease was due in part to the impact of higher interest rates and a product change for certain MUB retail checking accounts into interest checking accounts at conversion to create a better customer experience. Average total savings deposits were $33.1 billion (9.7 percent) higher year-over-year driven by increases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking. Average time deposits were $13.9 billion (31.9 percent) higher than the second quarter of 2023 mainly within Consumer and Business Banking. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics.
Average total deposits increased $10.8 billion (2.2 percent) over the first quarter of 2024. On a linked quarter basis, average noninterest-bearing deposits decreased $1.4 billion (1.6 percent) driven by a decrease within Wealth, Corporate, Commercial and Institutional Banking due to the impact of higher interest rates. Average total savings deposits increased $9.8 billion (2.7 percent) driven by increases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking. Average time deposits were $2.4 billion (4.4 percent) higher on a linked quarter basis mainly within Consumer and Business Banking. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics.
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| U.S. Bancorp Second Quarter 2024 Results |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
NONINTEREST INCOME |
($ in millions) | | | | Percent Change | | | |
| 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q24 vs 1Q24 | 2Q24 vs 2Q23 | YTD 2024 | YTD 2023 | Percent Change |
| | | | | | | | |
Card revenue | $428 | | $392 | | $422 | | 9.2 | | 1.4 | | $820 | | $782 | | 4.9 | |
Corporate payment products revenue | 195 | | 184 | | 190 | | 6.0 | | 2.6 | | 379 | | 379 | | — | |
Merchant processing services | 454 | | 401 | | 436 | | 13.2 | | 4.1 | | 855 | | 823 | | 3.9 | |
Trust and investment management fees | 649 | | 641 | | 621 | | 1.2 | | 4.5 | | 1,290 | | 1,211 | | 6.5 | |
Service charges | 322 | | 315 | | 324 | | 2.2 | | (.6) | | 637 | | 648 | | (1.7) | |
Commercial products revenue | 374 | | 388 | | 358 | | (3.6) | | 4.5 | | 762 | | 692 | | 10.1 | |
Mortgage banking revenue | 190 | | 166 | | 161 | | 14.5 | | 18.0 | | 356 | | 289 | | 23.2 | |
Investment products fees | 82 | | 77 | | 68 | | 6.5 | | 20.6 | | 159 | | 136 | | 16.9 | |
Securities gains (losses), net | (36) | | 2 | | 3 | | nm | nm | (34) | | (29) | | (17.2) | |
Other | 157 | | 134 | | 165 | | 17.2 | | (4.8) | | 291 | | 324 | | (10.2) | |
Total before balance sheet optimization | 2,815 | | 2,700 | | 2,748 | | 4.3 | | 2.4 | | 5,515 | | 5,255 | | 4.9 | |
Balance sheet optimization | — | | — | | (22) | | — | | nm | — | | (22) | | nm |
Total noninterest income | $2,815 | | $2,700 | | $2,726 | | 4.3 | | 3.3 | | $5,515 | | $5,233 | | 5.4 | |
| | | | | | | | |
Second quarter noninterest income of $2,815 million was $89 million (3.3 percent) higher than the second quarter of 2023 ($67 million (2.4 percent) excluding the balance sheet optimization impact of $(22) million in the second quarter of 2023). The increase was driven by higher payment services revenue, trust and investment management fees, commercial products revenue, mortgage banking revenue, and investment product fees, partially offset by securities losses. Payment services revenue increased $29 million (2.8 percent) compared with the second quarter of 2023. Within payment services revenue, merchant processing revenue increased $18 million (4.1 percent) due to favorable rates. Trust and investment management fees increased $28 million (4.5 percent) driven by business growth and favorable market conditions. Commercial products revenue increased $16 million (4.5 percent) driven by higher corporate bond fees and foreign currency activity. Mortgage banking revenue increased $29 million (18.0 percent) primarily driven by a $30 million gain on the sale of mortgage servicing rights in the current year quarter. Investment product fees increased $14 million (20.6 percent) due to business growth and favorable market conditions. These increases were partially offset by losses of $36 million on securities sales.
Noninterest income was $115 million (4.3 percent) higher in the second quarter of 2024 compared with the first quarter of 2024. The increase was driven by higher payment services revenue, and mortgage banking revenue, partially offset by a decrease in commercial products revenue and securities losses. Payment services revenue increased $100 million (10.2 percent) on a linked quarter basis primarily due to seasonally higher card revenue of $36 million (9.2 percent) and merchant processing revenue of $53 million (13.2 percent), driven by higher spend volume as well as favorable rates. Mortgage banking revenue increased $24 million (14.5 percent) primarily driven by a $30 million gain on the sale of mortgage servicing rights. These increases were partially offset by losses of $36 million on securities sales and a decrease in commercial products revenue of $14 million (3.6 percent) due to lower corporate bond fees.
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| U.S. Bancorp Second Quarter 2024 Results |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
NONINTEREST EXPENSE |
($ in millions) | | | | Percent Change | | | |
| 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q24 vs 1Q24 | 2Q24 vs 2Q23 | YTD 2024 | YTD 2023 | Percent Change |
| | | | | | | | |
Compensation and employee benefits | $2,619 | | $2,691 | | $2,646 | | (2.7) | | (1.0) | | $5,310 | | $5,292 | | .3 | |
Net occupancy and equipment | 316 | | 296 | | 316 | | 6.8 | | — | | 612 | | 637 | | (3.9) | |
Professional services | 116 | | 110 | | 141 | | 5.5 | | (17.7) | | 226 | | 275 | | (17.8) | |
Marketing and business development | 158 | | 136 | | 122 | | 16.2 | | 29.5 | | 294 | | 244 | | 20.5 | |
Technology and communications | 509 | | 507 | | 522 | | .4 | | (2.5) | | 1,016 | | 1,025 | | (.9) | |
Other intangibles | 142 | | 146 | | 159 | | (2.7) | | (10.7) | | 288 | | 319 | | (9.7) | |
Other | 328 | | 308 | | 353 | | 6.5 | | (7.1) | | 636 | | 778 | | (18.3) | |
Total before notable items | 4,188 | | 4,194 | | 4,259 | | (.1) | | (1.7) | | 8,382 | | 8,570 | | (2.2) | |
Notable items | 26 | | 265 | | 310 | | (90.2) | | (91.6) | | 291 | | 554 | | (47.5) | |
Total noninterest expense | $4,214 | | $4,459 | | $4,569 | | (5.5) | | (7.8) | | $8,673 | | $9,124 | | (4.9) | |
| | | | | | | | |
Second quarter noninterest expense of $4,214 million was $355 million (7.8 percent) lower than the second quarter of 2023. Excluding notable items of $26 million in the second quarter of 2024 and $310 million in the second quarter of 2023, second quarter noninterest expense decreased $71 million (1.7 percent) compared with the second quarter of 2023, due to prudent expense management, continued focus on operational efficiency, and synergies from the MUB acquisition, partially offset by higher marketing and business development expense. Compensation and employee benefits expense decreased $27 million (1.0 percent) compared with the second quarter of 2023 primarily due to synergies from the MUB acquisition, partially offset by merit increases and higher performance-based incentives. Professional services expense decreased $25 million (17.7 percent) and technology and communications expense decreased $13 million (2.5 percent), both due to synergies from the MUB acquisition. Marketing and business development increased $36 million (29.5 percent) due to the timing of campaigns. Other noninterest expense decreased $25 million (7.1 percent) primarily due to a decline in the future delivery exposures for merchant and airline processing and other liabilities.
Noninterest expense decreased $245 million (5.5 percent) from the first quarter of 2024. Excluding notable items of $26 million in the second quarter of 2024 and $265 million in the first quarter of 2024, second quarter noninterest expense decreased $6 million (0.1 percent) on a linked quarter basis, primarily driven by lower compensation and employee benefits expense, partially offset by higher net occupancy and equipment expense and marketing and business development expense. Compensation and employee benefits expense decreased $72 million (2.7 percent) primarily due to seasonally higher employee benefits in the first quarter of 2024, partially offset by higher performance-based incentives. Net occupancy and equipment expense increased $20 million (6.8 percent) due to the timing of maintenance projects. Marketing and business development expense increased $22 million (16.2 percent) due to the timing of campaigns and higher travel expenses.
Provision for Income Taxes
The provision for income taxes for the second quarter of 2024 resulted in a tax rate of 22.7 percent on a taxable-equivalent basis (effective tax rate of 21.6 percent), compared with 23.3 percent on a taxable-equivalent basis (effective tax rate of 21.8 percent) in the second quarter of 2023, and a tax rate of 22.1 percent on a taxable-equivalent basis (effective tax rate of 20.7 percent) in the first quarter of 2024.
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| U.S. Bancorp Second Quarter 2024 Results |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ALLOWANCE FOR CREDIT LOSSES |
($ in millions) | 2Q 2024 | % (a) | 1Q 2024 | % (a) | 4Q 2023 | % (a) | 3Q 2023 | % (a) | 2Q 2023 | % (a) |
Balance, beginning of period | $7,904 | | | $7,839 | | | $7,790 | | | $7,695 | | | $7,523 | | |
| | | | | | | | | | |
| | | | | | | | | | |
Net charge-offs | | | | | | | | | | |
Total excluding optimization impact | 538 | | .58 | | 488 | | .53 | | 463 | | .49 | | 420 | | .44 | | 340 | | .35 | |
Balance sheet optimization impact | — | | | — | | | — | | | — | | | 309 | | |
Total net charge-offs | 538 | | .58 | | 488 | | .53 | | 463 | | .49 | | 420 | | .44 | | 649 | | .67 | |
Provision for credit losses | | | | | | | | | | |
Total excluding optimization impact | 568 | | | 553 | | | 512 | | | 515 | | | 578 | | |
Balance sheet optimization impact | — | | | — | | | — | | | — | | | 243 | | |
Total provision for credit losses | 568 | | | 553 | | | 512 | | | 515 | | | 821 | | |
| | | | | | | | | | |
Balance, end of period | $7,934 | | | $7,904 | | | $7,839 | | | $7,790 | | | $7,695 | | |
Components | | | | | | | | | | |
Allowance for loan losses | $7,549 | | | $7,514 | | | $7,379 | | | $7,218 | | | $7,164 | | |
Liability for unfunded credit commitments | 385 | | | 390 | | | 460 | | | 572 | | | 531 | | |
Total allowance for credit losses | $7,934 | | | $7,904 | | | $7,839 | | | $7,790 | | | $7,695 | | |
Allowance for credit losses as a percentage of | | | | | | | | | | |
Period-end loans (%) | 2.11 | | | 2.11 | | | 2.10 | | | 2.08 | | | 2.03 | | |
Nonperforming loans (%) | 438 | | | 454 | | | 541 | | | 615 | | | 739 | | |
Nonperforming assets (%) | 428 | | | 443 | | | 525 | | | 595 | | | 709 | | |
| | | | | | | | | | |
(a)Annualized and calculated on average loan balances |
|
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SUMMARY OF NET CHARGE-OFFS |
($ in millions) | 2Q 2024 | % (a) | 1Q 2024 | % (a) | 4Q 2023 | % (a) | 3Q 2023 | % (a) | 2Q 2023 | % (a) |
| | | | | | | | | | |
Net charge-offs | | | | | | | | | | |
Commercial | $135 | | .42 | | $109 | | .35 | | $78 | | .24 | | $86 | | .26 | | $87 | | .26 | |
Lease financing | 8 | | .77 | | 7 | | .68 | | 7 | | .66 | | 6 | | .55 | | 3 | | .27 | |
Total commercial | 143 | | .43 | | 116 | | .36 | | 85 | | .26 | | 92 | | .27 | | 90 | | .26 | |
Commercial mortgages | 35 | | .34 | | 15 | | .15 | | 75 | | .71 | | 49 | | .46 | | 26 | | .24 | |
Construction and development | 1 | | .04 | | 6 | | .21 | | (4) | | (.14) | | — | | — | | — | | — | |
Total commercial real estate | 36 | | .28 | | 21 | | .16 | | 71 | | .52 | | 49 | | .36 | | 26 | | .19 | |
Residential mortgages | (4) | | (.01) | | — | | — | | (1) | | — | | (3) | | (.01) | | 114 | | .39 | |
Credit card | 315 | | 4.47 | | 296 | | 4.26 | | 255 | | 3.65 | | 220 | | 3.25 | | 199 | | 3.06 | |
Retail leasing | 3 | | .29 | | 5 | | .49 | | 2 | | .19 | | 2 | | .18 | | 1 | | .08 | |
Home equity and second mortgages | (1) | | (.03) | | — | | — | | (1) | | (.03) | | 1 | | .03 | | (1) | | (.03) | |
Other | 46 | | .71 | | 50 | | .76 | | 52 | | .74 | | 59 | | .80 | | 220 | | 2.55 | |
Total other retail | 48 | | .45 | | 55 | | .51 | | 53 | | .47 | | 62 | | .53 | | 220 | | 1.69 | |
Total net charge-offs | $538 | | .58 | | $488 | | .53 | | $463 | | .49 | | $420 | | .44 | | $649 | | .67 | |
| | | | | | | | | | |
Gross charge-offs | $652 | | | $595 | | | $559 | | | $508 | | | $755 | | |
Gross recoveries | $114 | | | $107 | | | $96 | | | $88 | | | $106 | | |
(a) Annualized and calculated on average loan balances | | | | | | | | | | |
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| | | | | |
| U.S. Bancorp Second Quarter 2024 Results |
The Company’s provision for credit losses for the second quarter of 2024 was $568 million, compared with $553 million in the first quarter of 2024 and $821 million in the second quarter of 2023. The provision for credit losses in the second quarter of 2023 included a notable item of $243 million for balance sheet optimization activities. The second quarter of 2024 provision was $15 million (2.7 percent) higher than the first quarter of 2024 and $253 million (30.8 percent) lower than the second quarter of 2023 ($10 million (1.7 percent) lower excluding the notable item), largely driven by stabilization in the economic and credit environment. The Company continues to monitor economic uncertainty related to high interest rates, persistent inflationary pressures, and other economic factors that may affect the financial strength of corporate and consumer borrowers.
Total net charge-offs in the second quarter of 2024 were $538 million, compared with $488 million in the first quarter of 2024 and $649 million in the second quarter of 2023. Net charge-offs for the second quarter of 2023 included a notable item of $309 million of charge-offs related to balance sheet optimization activities. The net charge-off ratio was 0.58 percent in the second quarter of 2024, compared with 0.53 percent in the first quarter of 2024 and 0.67 percent in the second quarter of 2023 (0.35 percent excluding the impact of the second quarter of 2023 notable item). Net charge-offs, excluding the impact of the second quarter of 2023 notable item, increased $198 million (58.2 percent) on a year-over-year basis primarily reflecting higher charge-offs in credit cards and commercial loans.
The allowance for credit losses was $7,934 million at June 30, 2024, compared with $7,904 million at March 31, 2024, and $7,695 million at June 30, 2023. The linked quarter increase in the allowance for credit losses was primarily driven by portfolio growth. The ratio of the allowance for credit losses to period-end loans was 2.11 percent at June 30, 2024, and at March 31, 2024, compared with 2.03 percent at June 30, 2023. The ratio of the allowance for credit losses to nonperforming loans was 438 percent at June 30, 2024, compared with 454 percent at March 31, 2024, and 739 percent at June 30, 2023.
Nonperforming assets were $1,852 million at June 30, 2024, compared with $1,786 million at March 31, 2024, and $1,085 million at June 30, 2023. The ratio of nonperforming assets to loans and other real estate was 0.49 percent at June 30, 2024, compared with 0.48 percent at March 31, 2024, and 0.29 percent at June 30, 2023. The increase in nonperforming assets on a linked quarter basis was primarily due to higher commercial real estate office nonperforming loans. The increase in nonperforming assets on a year-over year basis was primarily due to higher commercial and commercial real estate nonperforming loans, partially offset by lower nonperforming residential mortgages. Accruing loans 90 days or more past due were $701 million at June 30, 2024, compared with $714 million at March 31, 2024, and $474 million at June 30, 2023.
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| U.S. Bancorp Second Quarter 2024 Results |
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DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES |
(Percent) | Jun 30 2024 | Mar 31 2024 | Dec 31 2023 | Sep 30 2023 | Jun 30 2023 |
| | | | | |
Delinquent loan ratios - 90 days or more past due | | | | | |
Commercial | .06 | .08 | .09 | .05 | .04 |
Commercial real estate | .02 | — | .01 | — | — |
Residential mortgages | .15 | .12 | .12 | .11 | .08 |
Credit card | 1.30 | 1.42 | 1.31 | 1.17 | 1.02 |
Other retail | .14 | .15 | .15 | .13 | .12 |
Total loans | .19 | .19 | .19 | .15 | .12 |
| | | | | |
Delinquent loan ratios - 90 days or more past due and nonperforming loans |
Commercial | .48 | .49 | .37 | .24 | .21 |
Commercial real estate | 1.87 | 1.71 | 1.46 | 1.33 | .87 |
Residential mortgages | .28 | .26 | .25 | .25 | .26 |
Credit card | 1.30 | 1.42 | 1.31 | 1.17 | 1.02 |
Other retail | .47 | .47 | .46 | .41 | .39 |
Total loans | .67 | .66 | .57 | .49 | .40 |
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| | | | | | | | | | | | | | | | | |
ASSET QUALITY (a) |
($ in millions) | | | | | |
| Jun 30 2024 | Mar 31 2024 | Dec 31 2023 | Sep 30 2023 | Jun 30 2023 |
Nonperforming loans | | | | | |
Commercial | $531 | | $522 | | $349 | | $231 | | $204 | |
Lease financing | 25 | | 27 | | 27 | | 25 | | 27 | |
Total commercial | 556 | | 549 | | 376 | | 256 | | 231 | |
| | | | | |
Commercial mortgages | 888 | | 755 | | 675 | | 566 | | 361 | |
Construction and development | 71 | | 145 | | 102 | | 155 | | 113 | |
Total commercial real estate | 959 | | 900 | | 777 | | 721 | | 474 | |
| | | | | |
Residential mortgages | 154 | | 155 | | 158 | | 161 | | 207 | |
Credit card | — | | — | | — | | — | | — | |
Other retail | 141 | | 137 | | 138 | | 129 | | 129 | |
Total nonperforming loans | 1,810 | | 1,741 | | 1,449 | | 1,267 | | 1,041 | |
| | | | | |
Other real estate | 23 | | 25 | | 26 | | 25 | | 25 | |
Other nonperforming assets | 19 | | 20 | | 19 | | 18 | | 19 | |
Total nonperforming assets | $1,852 | | $1,786 | | $1,494 | | $1,310 | | $1,085 | |
Accruing loans 90 days or more past due | $701 | | $714 | | $698 | | $569 | | $474 | |
Nonperforming assets to loans plus ORE (%) | .49 | | .48 | | .40 | | .35 | | .29 | |
| | | | | |
(a) Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due |
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| | | | | |
| U.S. Bancorp Second Quarter 2024 Results |
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COMMON SHARES |
(Millions) | 2Q 2024 | 1Q 2024 | 4Q 2023 | 3Q 2023 | 2Q 2023 |
| | | | | |
Beginning shares outstanding | 1,560 | | 1,558 | | 1,557 | | 1,533 | | 1,533 | |
Shares issued for stock incentive plans, | | | | | |
acquisitions and other corporate purposes | — | | 3 | | 1 | | 24 | | — | |
Shares repurchased | — | | (1) | | — | | — | | — | |
Ending shares outstanding | 1,560 | | 1,560 | | 1,558 | | 1,557 | | 1,533 | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CAPITAL POSITION | | Preliminary Data |
($ in millions) | Jun 30 2024 | | Mar 31 2024 | | Dec 31 2023 | | Sep 30 2023 | | Jun 30 2023 | |
| | | | | | | | | | |
Total U.S. Bancorp shareholders' equity | $56,420 | | | $55,568 | | | $55,306 | | | $53,113 | | | $53,019 | | |
| | | | | | | | | | |
Basel III Standardized Approach (a) | | | | | | | | | | |
Common equity tier 1 capital | $46,239 | | | $45,239 | | | $44,947 | | | $44,655 | | | $42,944 | | |
Tier 1 capital | 53,491 | | | 52,491 | | | 52,199 | | | 51,906 | | | 50,187 | | |
Total risk-based capital | 62,926 | | | 62,203 | | | 61,921 | | | 61,737 | | | 60,334 | | |
| | | | | | | | | | |
Common equity tier 1 capital ratio | 10.3 | | % | 10.0 | | % | 9.9 | | % | 9.7 | | % | 9.1 | | % |
Tier 1 capital ratio | 11.9 | | | 11.6 | | | 11.5 | | | 11.2 | | | 10.6 | | |
Total risk-based capital ratio | 14.0 | | | 13.7 | | | 13.7 | | | 13.4 | | | 12.7 | | |
Leverage ratio | 8.1 | | | 8.1 | | | 8.1 | | | 7.9 | | | 7.5 | | |
| | | | | | | | | | |
Tangible common equity to tangible assets (b) | 5.4 | | | 5.2 | | | 5.3 | | | 5.0 | | | 4.8 | | |
Tangible common equity to risk-weighted assets (b) | 8.0 | | | 7.8 | | | 7.7 | | | 7.0 | | | 6.8 | | |
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (b) | 10.2 | | | 9.9 | | | 9.7 | | | 9.5 | | | 8.9 | | |
| | | | | | | | | | |
(a) Amounts and ratios calculated in accordance with transitional regulatory requirements related to the current expected credit losses methodology (b) See Non-GAAP Financial Measures reconciliation on page 18 |
| | | | | | | | | | |
Total U.S. Bancorp shareholders’ equity was $56.4 billion at June 30, 2024, compared with $55.6 billion at March 31, 2024 and $53.0 billion at June 30, 2023. The Company has currently suspended all common stock repurchases, except for those done exclusively in connection with its stock-based compensation programs. The Company will continue to evaluate its share repurchases in connection with the potential capital requirements given proposed regulatory capital rules and related landscape.
All regulatory ratios continue to be in excess of “well-capitalized” requirements. The common equity tier 1 capital to risk-weighted assets ratio using the Basel III standardized approach was 10.3 percent at June 30, 2024, compared with 10.0 percent at March 31, 2024, and 9.1 percent at June 30, 2023. The common equity tier 1 capital to risk-weighted assets ratio, reflecting the full implementation of the current expected credit losses methodology was 10.2 percent at June 30, 2024, compared with 9.9 percent at March 31, 2024, and 8.9 percent at June 30, 2023.
| | | | | |
| U.S. Bancorp Second Quarter 2024 Results |
On Wednesday, July 17, 2024 at 7 a.m. CT, Chairman and Chief Executive Officer Andy Cecere and Senior Executive Vice President and Chief Financial Officer John Stern will host a conference call to review the financial results. The live conference call will be available online or by telephone. To access the webcast and presentation, visit the U.S. Bancorp website at usbank.com and click on “About us”, “Investor relations”, "News & events" and “Webcasts & presentations.” To access the conference call from locations within the United States and Canada, please dial 888-210-4659. Participants calling from outside the United States and Canada, please dial 646-960-0383. The access code for all participants is 7269933. For those unable to participate during the live call, a replay will be available at approximately 10 a.m. CT on Wednesday, July 17, 2024. To access the replay, please visit the U.S. Bancorp website at usbank.com and click on “About us”, “Investor relations”, "News & events" and “Webcasts & presentations.”
U.S. Bancorp, with more than 70,000 employees and $680 billion in assets as of June 30, 2024, is the parent company of U.S. Bank National Association. Headquartered in Minneapolis, the company serves millions of customers locally, nationally and globally through a diversified mix of businesses including consumer banking, business banking, commercial banking, institutional banking, payments and wealth management. U.S. Bancorp has been recognized for its approach to digital innovation, community partnerships and customer service, including being named one of the 2024 World’s Most Ethical Companies and Fortune’s most admired superregional bank. Learn more at usbank.com/about.
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Forward-looking Statements |
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward-looking statements cover, among other things, future economic conditions and the anticipated future revenue, expenses, financial condition, asset quality, capital and liquidity levels, plans, prospects and operations of U.S. Bancorp. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “projects,” “forecasts,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.”
Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those set forth in forward-looking statements, including the following risks and uncertainties:
•Deterioration in general business and economic conditions or turbulence in domestic or global financial markets, which could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price volatility;
•Turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions, which could affect the ability of depository institutions, including U.S. Bank National Association, to attract and retain depositors, and could affect the ability of financial services providers, including U.S. Bancorp, to borrow or raise capital;
•Increases in FDIC assessments due to bank failures;
•Actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions;
•Uncertainty regarding the content, timing and impact of changes to regulatory capital, liquidity and resolution-related requirements applicable to large banking organizations in response to adverse developments affecting the banking sector;
•Changes to statutes, regulations, or regulatory policies or practices, including capital and liquidity requirements, and the enforcement and interpretation of such laws and regulations, and U.S. Bancorp’s ability to address or satisfy those requirements and other requirements or conditions imposed by regulatory entities;
•Changes in interest rates;
•Increases in unemployment rates;
•Deterioration in the credit quality of U.S. Bancorp's loan portfolios or in the value of the collateral securing those loans;
•Changes in commercial real estate occupancy rates;
•Risks related to originating and selling mortgages, including repurchase and indemnity demands, and related to U.S. Bancorp’s role as a loan servicer;
| | | | | |
| U.S. Bancorp Second Quarter 2024 Results |
•Impacts of current, pending or future litigation and governmental proceedings;
•Increased competition from both banks and non-banks;
•Effects of climate change and related physical and transition risks;
•Changes in customer behavior and preferences and the ability to implement technological changes to respond to customer needs and meet competitive demands;
•Breaches in data security;
•Failures or disruptions in or breaches of U.S. Bancorp’s operational, technology or security systems or infrastructure, or those of third parties, including as a result of cybersecurity incidents;
•Failures to safeguard personal information;
•Impacts of pandemics, natural disasters, terrorist activities, civil unrest, international hostilities and geopolitical events;
•Impacts of supply chain disruptions, rising inflation, slower growth or a recession;
•Failure to execute on strategic or operational plans;
•Effects of mergers and acquisitions and related integration;
•Effects of critical accounting policies and judgments;
•Effects of changes in or interpretations of tax laws and regulations;
•Management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk; and
•The risks and uncertainties more fully discussed in the section entitled “Risk Factors” of U.S. Bancorp’s Form 10-K for the year ended December 31, 2023, and subsequent filings with the Securities and Exchange Commission.
Factors other than these risks also could adversely affect U.S. Bancorp’s results, and the reader should not consider these risks to be a complete set of all potential risks or uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date hereof, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.
| | | | | |
| U.S. Bancorp Second Quarter 2024 Results |
| | |
Non-GAAP Financial Measures |
In addition to capital ratios defined by banking regulators, U.S. Bancorp (the "Company") considers various other measures when evaluating capital utilization and adequacy, including:
•Tangible common equity to tangible assets
•Tangible common equity to risk-weighted assets
•Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology, and
•Return on tangible common equity.
These measures are viewed by management as useful additional methods of evaluating the Company’s utilization of its capital held and the level of capital available to withstand unexpected negative market or economic conditions. Additionally, presentation of these measures allows investors, analysts and banking regulators to assess the Company’s capital position and use of capital relative to other financial services companies. These measures are not defined in generally accepted accounting principles (“GAAP”) or are not currently effective or defined in banking regulations. In addition, certain of these measures differ from currently effective capital ratios defined by banking regulations principally in that the currently effective ratios, which are subject to certain transitional provisions, temporarily exclude the full impact of the 2020 adoption of accounting guidance related to impairment of financial instruments based on the current expected credit losses methodology. As a result, these measures disclosed by the Company may be considered non-GAAP financial measures. Management believes this information helps investors assess trends in the Company’s capital utilization and adequacy.
The Company also discloses net interest income and related ratios and analysis on a taxable-equivalent basis, which may also be considered non-GAAP financial measures. The Company believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures utilize net interest income on a taxable-equivalent basis, including the efficiency ratio, tangible efficiency ratio, net interest margin, and tax rate.
The adjusted return on average assets, adjusted return on tangible common equity, adjusted efficiency ratio, adjusted net income, adjusted diluted earnings per common share, and adjusted net charge-off ratio exclude notable items. Management uses these measures in their analysis of the Company’s performance and believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods.
There may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider the consolidated financial statements and other financial information contained in this press release in their entirety, and not to rely on any single financial measure. A table follows that shows the Company’s calculation of these non-GAAP financial measures.
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CONSOLIDATED STATEMENT OF INCOME |
(Dollars and Shares in Millions, Except Per Share Data) | Three Months Ended June 30, | Six Months Ended June 30, |
(Unaudited) | 2024 | 2023 | 2024 | 2023 |
Interest Income | | | | |
Loans | $5,761 | | $5,605 | | $11,473 | | $10,882 | |
Loans held for sale | 41 | | 38 | | 78 | | 69 | |
Investment securities | 1,294 | | 1,077 | | 2,469 | | 2,151 | |
Other interest income | 889 | | 806 | | 1,729 | | 1,388 | |
Total interest income | 7,985 | | 7,526 | | 15,749 | | 14,490 | |
Interest Expense | | | | |
Deposits | 3,028 | | 1,939 | | 5,912 | | 3,444 | |
Short-term borrowings | 296 | | 740 | | 566 | | 1,189 | |
Long-term debt | 638 | | 432 | | 1,263 | | 808 | |
Total interest expense | 3,962 | | 3,111 | | 7,741 | | 5,441 | |
Net interest income | 4,023 | | 4,415 | | 8,008 | | 9,049 | |
Provision for credit losses | 568 | | 821 | | 1,121 | | 1,248 | |
Net interest income after provision for credit losses | 3,455 | | 3,594 | | 6,887 | | 7,801 | |
Noninterest Income | | | | |
Card revenue | 428 | | 422 | | 820 | | 782 | |
Corporate payment products revenue | 195 | | 190 | | 379 | | 379 | |
Merchant processing services | 454 | | 436 | | 855 | | 823 | |
Trust and investment management fees | 649 | | 621 | | 1,290 | | 1,211 | |
Service charges | 322 | | 324 | | 637 | | 648 | |
Commercial products revenue | 374 | | 358 | | 762 | | 692 | |
Mortgage banking revenue | 190 | | 131 | | 356 | | 259 | |
Investment products fees | 82 | | 68 | | 159 | | 136 | |
Securities gains (losses), net | (36) | | 3 | | (34) | | (29) | |
Other | 157 | | 173 | | 291 | | 332 | |
Total noninterest income | 2,815 | | 2,726 | | 5,515 | | 5,233 | |
Noninterest Expense | | | | |
Compensation and employee benefits | 2,619 | | 2,646 | | 5,310 | | 5,292 | |
Net occupancy and equipment | 316 | | 316 | | 612 | | 637 | |
Professional services | 116 | | 141 | | 226 | | 275 | |
Marketing and business development | 158 | | 122 | | 294 | | 244 | |
Technology and communications | 509 | | 522 | | 1,016 | | 1,025 | |
Other intangibles | 142 | | 159 | | 288 | | 319 | |
Merger and integration charges | — | | 310 | | 155 | | 554 | |
Other | 354 | | 353 | | 772 | | 778 | |
Total noninterest expense | 4,214 | | 4,569 | | 8,673 | | 9,124 | |
Income before income taxes | 2,056 | | 1,751 | | 3,729 | | 3,910 | |
Applicable income taxes | 445 | | 382 | | 792 | | 837 | |
Net income | 1,611 | | 1,369 | | 2,937 | | 3,073 | |
Net (income) loss attributable to noncontrolling interests | (8) | | (8) | | (15) | | (14) | |
Net income attributable to U.S. Bancorp | $1,603 | | $1,361 | | $2,922 | | $3,059 | |
Net income applicable to U.S. Bancorp common shareholders | $1,518 | | $1,281 | | $2,727 | | $2,873 | |
| | | | |
Earnings per common share | $.97 | | $.84 | | $1.75 | | $1.87 | |
Diluted earnings per common share | $.97 | | $.84 | | $1.75 | | $1.87 | |
Dividends declared per common share | $.49 | | $.48 | | $.98 | | $.96 | |
Average common shares outstanding | 1,560 | | 1,533 | | 1,560 | | 1,532 | |
Average diluted common shares outstanding | 1,561 | | 1,533 | | 1,560 | | 1,533 | |
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CONSOLIDATED ENDING BALANCE SHEET |
(Dollars in Millions) | June 30, 2024 | December 31, 2023 | June 30, 2023 |
Assets | (Unaudited) | | (Unaudited) |
Cash and due from banks | $65,832 | | $61,192 | | $70,642 | |
Investment securities | | | |
Held-to-maturity | 81,486 | | 84,045 | | 86,938 | |
Available-for-sale | 79,799 | | 69,706 | | 69,221 | |
Loans held for sale | 2,582 | | 2,201 | | 2,361 | |
Loans | | | |
Commercial | 135,248 | | 131,881 | | 136,775 | |
Commercial real estate | 51,887 | | 53,455 | | 54,357 | |
Residential mortgages | 117,147 | | 115,530 | | 114,449 | |
Credit card | 28,715 | | 28,560 | | 26,626 | |
Other retail | 43,136 | | 44,409 | | 47,221 | |
Total loans | 376,133 | | 373,835 | | 379,428 | |
Less allowance for loan losses | (7,549) | | (7,379) | | (7,164) | |
Net loans | 368,584 | | 366,456 | | 372,264 | |
Premises and equipment | 3,570 | | 3,623 | | 3,695 | |
Goodwill | 12,476 | | 12,489 | | 12,486 | |
Other intangible assets | 5,757 | | 6,084 | | 6,634 | |
Other assets | 59,972 | | 57,695 | | 56,584 | |
Total assets | $680,058 | | $663,491 | | $680,825 | |
| | | |
Liabilities and Shareholders' Equity | | | |
Deposits | | | |
Noninterest-bearing | $86,756 | | $89,989 | | $104,996 | |
Interest-bearing | 437,029 | | 422,323 | | 416,604 | |
Total deposits | 523,785 | | 512,312 | | 521,600 | |
Short-term borrowings | 16,557 | | 15,279 | | 32,334 | |
Long-term debt | 52,720 | | 51,480 | | 45,283 | |
Other liabilities | 30,111 | | 28,649 | | 28,124 | |
Total liabilities | 623,173 | | 607,720 | | 627,341 | |
Shareholders' equity | | | |
Preferred stock | 6,808 | | 6,808 | | 6,808 | |
Common stock | 21 | | 21 | | 21 | |
Capital surplus | 8,688 | | 8,673 | | 8,742 | |
Retained earnings | 75,231 | | 74,026 | | 73,355 | |
Less treasury stock | (24,020) | | (24,126) | | (25,189) | |
Accumulated other comprehensive income (loss) | (10,308) | | (10,096) | | (10,718) | |
Total U.S. Bancorp shareholders' equity | 56,420 | | 55,306 | | 53,019 | |
Noncontrolling interests | 465 | | 465 | | 465 | |
Total equity | 56,885 | | 55,771 | | 53,484 | |
Total liabilities and equity | $680,058 | | $663,491 | | $680,825 | |
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NON-GAAP FINANCIAL MEASURES |
(Dollars in Millions, Unaudited) | June 30, 2024 | | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
Total equity | $56,885 | | | $56,033 | | $55,771 | | $53,578 | | $53,484 | |
Preferred stock | (6,808) | | | (6,808) | | (6,808) | | (6,808) | | (6,808) | |
Noncontrolling interests | (465) | | | (465) | | (465) | | (465) | | (465) | |
Goodwill (net of deferred tax liability) (1) | (11,449) | | | (11,459) | | (11,480) | | (11,470) | | (11,493) | |
Intangible assets (net of deferred tax liability), other than mortgage servicing rights | (2,047) | | | (2,158) | | (2,278) | | (2,370) | | (2,490) | |
Tangible common equity (a) | 36,116 | | | 35,143 | | 34,740 | | 32,465 | | 32,228 | |
| | | | | | |
Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements related to the current expected credit losses methodology implementation | 46,239 | | | 45,239 | | 44,947 | | 44,655 | | 42,944 | |
Adjustments (2) | (433) | | | (433) | | (866) | | (867) | | (866) | |
Common equity tier 1 capital, reflecting the full implementation | | | | | | |
of the current expected credit losses methodology (b) | 45,806 | | | 44,806 | | 44,081 | | 43,788 | | 42,078 | |
| | | | | | |
Total assets | 680,058 | | | 683,606 | | 663,491 | | 668,039 | | 680,825 | |
Goodwill (net of deferred tax liability) (1) | (11,449) | | | (11,459) | | (11,480) | | (11,470) | | (11,493) | |
Intangible assets (net of deferred tax liability), other than mortgage servicing rights | (2,047) | | | (2,158) | | (2,278) | | (2,370) | | (2,490) | |
Tangible assets (c) | 666,562 | | | 669,989 | | 649,733 | | 654,199 | | 666,842 | |
| | | | | | |
Risk-weighted assets, determined in accordance with transitional regulatory capital requirements related to the current expected credit losses methodology implementation (d) | 449,111 | | * | 452,831 | | 453,390 | | 462,250 | | 473,393 | |
Adjustments (3) | (368) | | * | (368) | | (736) | | (736) | | (735) | |
Risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (e) | 448,743 | | * | 452,463 | | 452,654 | | 461,514 | | 472,658 | |
| | | | | | |
Ratios * | | | | | | |
Tangible common equity to tangible assets (a)/(c) | 5.4 | % | | 5.2 | % | 5.3 | % | 5.0 | % | 4.8 | % |
Tangible common equity to risk-weighted assets (a)/(d) | 8.0 | | | 7.8 | | 7.7 | | 7.0 | | 6.8 | |
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (b)/(e) | 10.2 | | | 9.9 | | 9.7 | | 9.5 | | 8.9 | |
| | | | | | |
| Three Months Ended |
| June 30, 2024 | | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
Net income applicable to U.S. Bancorp common shareholders | $1,518 | | | $1,209 | | $766 | | $1,412 | | $1,281 | |
Intangibles amortization (net-of-tax) | 113 | | | 115 | | 123 | | 127 | | 126 | |
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization | 1,631 | | | 1,324 | | 889 | | 1,539 | | 1,407 | |
Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangible amortization (f) | 6,560 | | | 5,325 | | 3,527 | | 6,106 | | 5,643 | |
| | | | | | |
Average total equity | 56,492 | | | 56,131 | | 54,779 | | 54,283 | | 54,287 | |
Average preferred stock | (6,808) | | | (6,808) | | (6,808) | | (6,808) | | (6,808) | |
Average noncontrolling interests | (463) | | | (464) | | (465) | | (466) | | (465) | |
Average goodwill (net of deferred tax liability) (1) | (11,457) | | | (11,473) | | (11,475) | | (11,493) | | (11,527) | |
Average intangible assets (net of deferred tax liability), other than mortgage servicing rights | (2,087) | | | (2,208) | | (2,295) | | (2,418) | | (2,530) | |
Average tangible common equity (g) | 35,677 | | | 35,178 | | 33,736 | | 33,098 | | 32,957 | |
| | | | | | |
Return on tangible common equity (f)/(g) | 18.4 | % | | 15.1 | % | 10.5 | % | 18.4 | % | 17.1 | % |
| | | | | | |
Net interest income | $4,023 | | | $3,985 | | $4,111 | | $4,236 | | $4,415 | |
Taxable-equivalent adjustment (4) | 29 | | | 30 | | 31 | | 32 | | 34 | |
Net interest income, on a taxable-equivalent basis | 4,052 | | | 4,015 | | 4,142 | | 4,268 | | 4,449 | |
| | | | | | |
Net interest income, on a taxable-equivalent basis (as calculated above) | 4,052 | | | 4,015 | | 4,142 | | 4,268 | | 4,449 | |
Noninterest income | 2,815 | | | 2,700 | | 2,620 | | 2,764 | | 2,726 | |
Less: Securities gains (losses), net | (36) | | | 2 | | (116) | | — | | 3 | |
Total net revenue, excluding net securities gains (losses) (h) | 6,903 | | | 6,713 | | 6,878 | | 7,032 | | 7,172 | |
| | | | | | |
Noninterest expense (i) | 4,214 | | | 4,459 | | 5,219 | | 4,530 | | 4,569 | |
Less: Intangible amortization | 142 | | | 146 | | 156 | | 161 | | 159 | |
Noninterest expense, excluding intangible amortization (j) | 4,072 | | | 4,313 | | 5,063 | | 4,369 | | 4,410 | |
| | | | | | |
Efficiency ratio (i)/(h) | 61.0 | % | | 66.4 | % | 75.9 | % | 64.4 | % | 63.7 | % |
Tangible efficiency ratio (j)/(h) | 59.0 | | | 64.2 | | 73.6 | | 62.1 | | 61.5 | |
* Preliminary data. Subject to change prior to filings with applicable regulatory agencies.
(1)Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.
(2)Includes the estimated increase in the allowance for credit losses related to the adoption of the current expected credit losses methodology net of deferred taxes.
(3)Includes the impact of the estimated increase in the allowance for credit losses related to the adoption of the current expected credit losses methodology.
(4)Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.
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NON-GAAP FINANCIAL MEASURES |
| Three Months Ended | Six Months Ended |
(Dollars and Shares in Millions, Except Per Share Data, Unaudited) | June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 |
Net income applicable to U.S. Bancorp common shareholders | $1,518 | | $1,209 | | $1,281 | | $2,727 | | $2,873 | |
Less: Notable items, including the impact of earnings allocated to participating stock awards (1), (2) | (19) | | (198) | | (429) | | (217) | | (610) | |
Net income applicable to U.S. Bancorp common shareholders, excluding notable items (a) | 1,537 | | 1,407 | | 1,710 | | 2,944 | | 3,483 | |
| | | | | |
Average diluted common shares outstanding (b) | 1,561 | | 1,559 | | 1,533 | | 1,560 | | 1,533 | |
Diluted earnings per common share, excluding notable items (a)/(b) | $.98 | | $.90 | | $1.12 | | $1.89 | | $2.27 | |
| | | | | |
Net income attributable to U.S. Bancorp | $1,603 | | | | | |
Less: Notable items (1) | (19) | | | | | |
Net income attributable to U.S. Bancorp, excluding notable items | 1,622 | | | | | |
Annualized net income attributable to U.S. Bancorp, excluding notable items (c) | 6,524 | | | | | |
Average assets (d) | 665,504 | | | | | |
Return on average assets, excluding notable items (c)/(d) | .98 | % | | | | |
| | | | | |
Net income applicable to U.S. Bancorp common shareholders | $1,518 | | | | | |
Intangibles amortization (net-of-tax) | 113 | | | | | |
Less: Notable items, including the impact of earnings allocated to participating stock awards (1) | (19) | | | | | |
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization and notable items | 1,650 | | | | | |
Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangible amortization and notable items (e) | 6,636 | | | | | |
| | | | | |
Average total equity | $56,492 | | | | | |
Average preferred stock | (6,808) | | | | | |
Average noncontrolling interests | (463) | | | | | |
Average goodwill (net of deferred tax liability) (3) | (11,457) | | | | | |
Average intangible assets (net of deferred tax liability), other than mortgage servicing rights | (2,087) | | | | | |
Average tangible common equity (f) | 35,677 | | | | | |
Return on tangible common equity, excluding notable items (e)/(f) | 18.6 | % | | | | |
| | | | | |
Net interest income | $4,023 | | | | | |
Taxable-equivalent adjustment (4) | 29 | | | | | |
Net interest income, on a taxable-equivalent basis | 4,052 | | | | | |
| | | | | |
Net interest income, on a taxable-equivalent basis (as calculated above) | 4,052 | | | | | |
Noninterest income | 2,815 | | | | | |
Less: Securities gains (losses), net | (36) | | | | | |
Total net revenue, excluding net securities gains (losses) (g) | 6,903 | | | | | |
Noninterest expense | 4,214 | | | | | |
Less: Notable items (1) | 26 | | | | | |
Noninterest expense, excluding notable items (h) | 4,188 | | | | | |
Efficiency ratio, excluding notable items (h)/(g) | 60.7 | % | | | | |
| | | | | |
| Three Months Ended | | | | |
| June 30, 2023 | | | | |
Net charge-offs | $649 | | | | | |
Less: Notable items (5) | 309 | | | | | |
Net charge-offs, excluding notable items | 340 | | | | | |
Annualized net charge-offs, excluding notable items (i) | 1,364 | | | | | |
Average loan balances (j) | 388,817 | | | | | |
Net charge-off ratio, excluding notable items (i)/(j) | .35 | % | | | | |
(1)Notable items for the three months ended June 30, 2024 included a $26 million ($19 million net-of-tax) charge for the increase in FDIC special assessment. Notable items of $265 million ($199 million net-of-tax) for the three months ended March 31, 2024 included $155 million of merger and integration-related charges and a $110 million charge for the increase in the FDIC special assessment. Notable items of $575 million ($432 million net-of-tax) for the three months ended June 30, 2023 included $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $310 million of merger and integration-related charges and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions.
(2)Notable items of $291 million ($218 million net-of-tax) for the six months ended June 30, 2024 included $155 million of merger and integration-related charges and a $136 million charge for the increase in FDIC special assessment. Notable items of $819 million ($615 million net-of-tax) for the six months ended June 30, 2023 included $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $554 million of merger and integration-related charges and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions.
(3)Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.
(4)Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.
(5)Notable items for the three months ended June 30, 2023 included $309 million of net charge-offs related to balance sheet repositioning and capital management actions.
| | |
Business Line Schedules Second Quarter 2024 |
WEALTH, CORPORATE, COMMERCIAL AND INSTITUTIONAL BANKING
CONSUMER AND BUSINESS BANKING
PAYMENT SERVICES
TREASURY AND CORPORATE SUPPORT |
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LINE OF BUSINESS FINANCIAL PERFORMANCE | | Preliminary data |
($ in millions) | Net Income Attributable to U.S. Bancorp | | Percent Change | | Net Income Attributable to U.S. Bancorp | |
Business Line | 2Q 2024 | 1Q 2024 | 2Q 2023 | | 2Q24 vs 1Q24 | 2Q24 vs 2Q23 | | YTD 2024 | YTD 2023 | Percent Change |
Wealth, Corporate, Commercial and Institutional Banking | $1,172 | | $1,128 | | $1,067 | | | 3.9 | | 9.8 | | | $2,300 | | $2,305 | | (.2) | |
Consumer and Business Banking | 512 | | 484 | | 709 | | | 5.8 | | (27.8) | | | 996 | | 1,496 | | (33.4) | |
Payment Services | 297 | | 243 | | 313 | | | 22.2 | | (5.1) | | | 540 | | 625 | | (13.6) | |
Treasury and Corporate Support | (378) | | (536) | | (728) | | | 29.5 | | 48.1 | | | (914) | | (1,367) | | 33.1 | |
Consolidated Company | $1,603 | | $1,319 | | $1,361 | | | 21.5 | | 17.8 | | | $2,922 | | $3,059 | | (4.5) | |
| | | | | | | | | | |
| Income Before Provision and Taxes | | Percent Change | | Income Before Provision and Taxes | |
| 2Q 2024 | 1Q 2024 | 2Q 2023 | | 2Q24 vs 1Q24 | 2Q24 vs 2Q23 | | YTD 2024 | YTD 2023 | Percent Change |
Wealth, Corporate, Commercial and Institutional Banking | $1,663 | | $1,645 | | $1,585 | | | 1.1 | | 4.9 | | | $3,308 | | $3,209 | | 3.1 | |
Consumer and Business Banking | 713 | | 700 | | 962 | | | 1.9 | | (25.9) | | | 1,413 | | 2,019 | | (30.0) | |
Payment Services | 784 | | 683 | | 732 | | | 14.8 | | 7.1 | | | 1,467 | | 1,368 | | 7.2 | |
Treasury and Corporate Support | (507) | | (772) | | (673) | | | 34.3 | | 24.7 | | | (1,279) | | (1,370) | | 6.6 | |
Consolidated Company | $2,653 | | $2,256 | | $2,606 | | | 17.6 | | 1.8 | | | $4,909 | | $5,226 | | (6.1) | |
Lines of Business
The Company’s major lines of business are Wealth, Corporate, Commercial and Institutional Banking, Consumer and Business Banking, Payment Services, and Treasury and Corporate Support. Business line results are derived from the Company’s business unit profitability reporting systems by specifically attributing managed balance sheet assets, deposits and other liabilities and their related income or expense. Designations, assignments and allocations change from time to time as management systems are enhanced, methods of evaluating performance or product lines change or business segments are realigned to better respond to the Company’s diverse customer base. During 2024 and 2023, certain organization and methodology changes were made, including revising the Company's line of business funds transfer-pricing methodology related to deposits and loans during the second quarter of 2024 and combining its Wealth Management and Investment Services and Corporate and Commercial Banking lines of businesses to create the Wealth, Corporate, Commercial and Institutional Banking line of business during the third quarter of 2023. Prior period results were restated and presented on a comparable basis.
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WEALTH, CORPORATE, COMMERCIAL AND INSTITUTIONAL BANKING | | Preliminary data |
($ in millions) | | | | Percent Change | | | | |
| 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q24 vs 1Q24 | 2Q24 vs 2Q23 | | YTD 2024 | YTD 2023 | Percent Change |
Condensed Income Statement | | | | | | | | | |
Net interest income (taxable-equivalent basis) | $1,906 | | $1,904 | | $1,894 | | .1 | | .6 | | | $3,810 | | $3,857 | | (1.2) | |
Noninterest income | 1,131 | | 1,113 | | 1,071 | | 1.6 | | 5.6 | | | 2,244 | | 2,090 | | 7.4 | |
Securities gains (losses), net | — | | — | | — | | — | | — | | | — | | — | | — | |
Total net revenue | 3,037 | | 3,017 | | 2,965 | | .7 | | 2.4 | | | 6,054 | | 5,947 | | 1.8 | |
Noninterest expense | 1,322 | | 1,320 | | 1,323 | | .2 | | (.1) | | | 2,642 | | 2,620 | | .8 | |
Other intangibles | 52 | | 52 | | 57 | | — | | (8.8) | | | 104 | | 118 | | (11.9) | |
Total noninterest expense | 1,374 | | 1,372 | | 1,380 | | .1 | | (.4) | | | 2,746 | | 2,738 | | .3 | |
Income before provision and taxes | 1,663 | | 1,645 | | 1,585 | | 1.1 | | 4.9 | | | 3,308 | | 3,209 | | 3.1 | |
Provision for credit losses | 100 | | 141 | | 162 | | (29.1) | | (38.3) | | | 241 | | 135 | | 78.5 | |
Income before income taxes | 1,563 | | 1,504 | | 1,423 | | 3.9 | | 9.8 | | | 3,067 | | 3,074 | | (.2) | |
Income taxes and taxable-equivalent adjustment | 391 | | 376 | | 356 | | 4.0 | | 9.8 | | | 767 | | 769 | | (.3) | |
Net income | 1,172 | | 1,128 | | 1,067 | | 3.9 | | 9.8 | | | 2,300 | | 2,305 | | (.2) | |
Net (income) loss attributable to noncontrolling interests | — | | — | | — | | — | | — | | | — | | — | | — | |
Net income attributable to U.S. Bancorp | $1,172 | | $1,128 | | $1,067 | | 3.9 | | 9.8 | | | $2,300 | | $2,305 | | (.2) | |
| | | | | | | | | |
Average Balance Sheet Data | | | | | | | | | |
Loans | $173,695 | | $171,068 | | $178,749 | | 1.5 | | (2.8) | | | $172,381 | | $177,867 | | (3.1) | |
Other earning assets | 9,590 | | 8,738 | | 6,671 | | 9.8 | | 43.8 | | | 9,164 | | 6,349 | | 44.3 | |
Goodwill | 4,824 | | 4,825 | | 4,651 | | — | | 3.7 | | | 4,825 | | 4,633 | | 4.1 | |
Other intangible assets | 1,007 | | 1,059 | | 962 | | (4.9) | | 4.7 | | | 1,033 | | 998 | | 3.5 | |
Assets | 203,201 | | 199,192 | | 205,169 | | 2.0 | | (1.0) | | | 201,196 | | 203,168 | | (1.0) | |
| | | | | | | | | |
Noninterest-bearing deposits | 57,299 | | 58,580 | | 73,512 | | (2.2) | | (22.1) | | | 57,939 | | 77,816 | | (25.5) | |
Interest-bearing deposits | 216,293 | | 207,841 | | 195,333 | | 4.1 | | 10.7 | | | 212,068 | | 197,372 | | 7.4 | |
Total deposits | 273,592 | | 266,421 | | 268,845 | | 2.7 | | 1.8 | | | 270,007 | | 275,188 | | (1.9) | |
| | | | | | | | | |
Total U.S. Bancorp shareholders' equity | 21,481 | | 21,757 | | 22,359 | | (1.3) | | (3.9) | | | 21,619 | | 21,949 | | (1.5) | |
Wealth, Corporate, Commercial and Institutional Banking provides core banking, specialized lending, transaction and payment processing, capital markets, asset management, and brokerage and investment related services to wealth, middle market, large corporate, government and institutional clients.
Wealth, Corporate, Commercial and Institutional Banking generated $1,663 million of income before provision and taxes in the second quarter of 2024, compared with $1,585 million in the second quarter of 2023, and contributed $1,172 million of the Company’s net income in the second quarter of 2024. The provision for credit losses decreased $62 million (38.3 percent) compared with the second quarter of 2023 primarily due to stabilizing credit quality. Total net revenue was $72 million (2.4 percent) higher in the second quarter of 2024 due to an increase of $12 million (0.6 percent) in net interest income and an increase of $60 million (5.6 percent) in total noninterest income. Net interest income increased primarily due to growth in interest-bearing deposit balances, offset by lower non-interest bearing balances. Total noninterest income increased primarily due to higher trust and investment management fees and investment product fees, both driven by business growth and favorable market conditions. Total noninterest expense decreased $6 million (0.4 percent) compared with the second quarter of 2023 primarily due to synergies from the MUB acquisition, partially offset by higher compensation and employee benefit expense.
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CONSUMER AND BUSINESS BANKING | | Preliminary data |
($ in millions) | | | | Percent Change | | | | |
| 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q24 vs 1Q24 | 2Q24 vs 2Q23 | | YTD 2024 | YTD 2023 | Percent Change |
Condensed Income Statement | | | | | | | | | |
Net interest income (taxable-equivalent basis) | $1,922 | | $1,879 | | $2,295 | | 2.3 | | (16.3) | | | $3,801 | | $4,684 | | (18.9) | |
Noninterest income | 413 | | 423 | | 431 | | (2.4) | | (4.2) | | | 836 | | 831 | | .6 | |
Securities gains (losses), net | — | | — | | — | | — | | — | | | — | | — | | — | |
Total net revenue | 2,335 | | 2,302 | | 2,726 | | 1.4 | | (14.3) | | | 4,637 | | 5,515 | | (15.9) | |
Noninterest expense | 1,555 | | 1,535 | | 1,690 | | 1.3 | | (8.0) | | | 3,090 | | 3,351 | | (7.8) | |
Other intangibles | 67 | | 67 | | 74 | | — | | (9.5) | | | 134 | | 145 | | (7.6) | |
Total noninterest expense | 1,622 | | 1,602 | | 1,764 | | 1.2 | | (8.0) | | | 3,224 | | 3,496 | | (7.8) | |
Income before provision and taxes | 713 | | 700 | | 962 | | 1.9 | | (25.9) | | | 1,413 | | 2,019 | | (30.0) | |
Provision for credit losses | 30 | | 54 | | 16 | | (44.4) | | 87.5 | | | 84 | | 23 | | nm |
Income before income taxes | 683 | | 646 | | 946 | | 5.7 | | (27.8) | | | 1,329 | | 1,996 | | (33.4) | |
Income taxes and taxable-equivalent adjustment | 171 | | 162 | | 237 | | 5.6 | | (27.8) | | | 333 | | 500 | | (33.4) | |
Net income | 512 | | 484 | | 709 | | 5.8 | | (27.8) | | | 996 | | 1,496 | | (33.4) | |
Net (income) loss attributable to noncontrolling interests | — | | — | | — | | — | | — | | | — | | — | | — | |
Net income attributable to U.S. Bancorp | $512 | | $484 | | $709 | | 5.8 | | (27.8) | | | $996 | | $1,496 | | (33.4) | |
| | | | | | | | | |
Average Balance Sheet Data | | | | | | | | | |
Loans | $154,857 | | $154,832 | | $167,002 | | — | | (7.3) | | | $154,845 | | $167,214 | | (7.4) | |
Other earning assets | 2,278 | | 1,879 | | 2,512 | | 21.2 | | (9.3) | | | 2,078 | | 2,346 | | (11.4) | |
Goodwill | 4,326 | | 4,326 | | 4,530 | | — | | (4.5) | | | 4,326 | | 4,512 | | (4.1) | |
Other intangible assets | 4,734 | | 4,696 | | 5,393 | | .8 | | (12.2) | | | 4,714 | | 5,492 | | (14.2) | |
Assets | 168,634 | | 169,073 | | 184,804 | | (.3) | | (8.7) | | | 168,854 | | 185,032 | | (8.7) | |
| | | | | | | | | |
Noninterest-bearing deposits | 20,900 | | 21,375 | | 34,120 | | (2.2) | | (38.7) | | | 21,137 | | 37,616 | | (43.8) | |
Interest-bearing deposits | 202,967 | | 199,298 | | 180,239 | | 1.8 | | 12.6 | | | 201,131 | | 177,227 | | 13.5 | |
Total deposits | 223,867 | | 220,673 | | 214,359 | | 1.4 | | 4.4 | | | 222,268 | | 214,843 | | 3.5 | |
| | | | | | | | | |
Total U.S. Bancorp shareholders' equity | 14,553 | | 14,844 | | 16,386 | | (2.0) | | (11.2) | | | 14,699 | | 16,476 | | (10.8) | |
Consumer and Business Banking comprises consumer banking, small business banking and consumer lending. Products and services are delivered through banking offices, telephone servicing and sales, online services, direct mail, ATM processing, mobile devices, distributed mortgage loan officers, and intermediary relationships including auto dealerships, mortgage banks, and strategic business partners.
Consumer and Business Banking generated $713 million of income before provision and taxes in the second quarter of 2024, compared with $962 million in the second quarter of 2023, and contributed $512 million of the Company’s net income in the second quarter of 2024. The provision for credit losses increased $14 million (87.5 percent) compared with the second quarter of 2023 due to normalizing credit conditions. Total net revenue was lower by $391 million (14.3 percent) in the second quarter of 2024 due to a decrease of $373 million (16.3 percent) in net interest income and a decrease in total noninterest income of $18 million (4.2 percent). Net interest income decreased due to the impact of deposit mix and pricing as well as lower loan balances. Total noninterest income decreased primarily due to lower service charges. Total noninterest expense decreased $142 million (8.0 percent) in the second quarter of 2024 compared with the second quarter of 2023 due to synergies from the MUB acquisition.
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PAYMENT SERVICES | | | Preliminary data |
($ in millions) | | | | Percent Change | | | | |
| 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q24 vs 1Q24 | 2Q24 vs 2Q23 | | YTD 2024 | YTD 2023 | Percent Change |
Condensed Income Statement | | | | | | | | | |
Net interest income (taxable-equivalent basis) | $673 | | $702 | | $623 | | (4.1) | | 8.0 | | | $1,375 | | $1,270 | | 8.3 | |
Noninterest income | 1,094 | | 979 | | 1,050 | | 11.7 | | 4.2 | | | 2,073 | | 1,987 | | 4.3 | |
Securities gains (losses), net | — | | — | | — | | — | | — | | | — | | — | | — | |
Total net revenue | 1,767 | | 1,681 | | 1,673 | | 5.1 | | 5.6 | | | 3,448 | | 3,257 | | 5.9 | |
Noninterest expense | 960 | | 971 | | 913 | | (1.1) | | 5.1 | | | 1,931 | | 1,833 | | 5.3 | |
Other intangibles | 23 | | 27 | | 28 | | (14.8) | | (17.9) | | | 50 | | 56 | | (10.7) | |
Total noninterest expense | 983 | | 998 | | 941 | | (1.5) | | 4.5 | | | 1,981 | | 1,889 | | 4.9 | |
Income before provision and taxes | 784 | | 683 | | 732 | | 14.8 | | 7.1 | | | 1,467 | | 1,368 | | 7.2 | |
Provision for credit losses | 388 | | 359 | | 314 | | 8.1 | | 23.6 | | | 747 | | 534 | | 39.9 | |
Income before income taxes | 396 | | 324 | | 418 | | 22.2 | | (5.3) | | | 720 | | 834 | | (13.7) | |
Income taxes and taxable-equivalent adjustment | 99 | | 81 | | 105 | | 22.2 | | (5.7) | | | 180 | | 209 | | (13.9) | |
Net income | 297 | | 243 | | 313 | | 22.2 | | (5.1) | | | 540 | | 625 | | (13.6) | |
Net (income) loss attributable to noncontrolling interests | — | | — | | — | | — | | — | | | — | | — | | — | |
Net income attributable to U.S. Bancorp | $297 | | $243 | | $313 | | 22.2 | | (5.1) | | | $540 | | $625 | | (13.6) | |
| | | | | | | | | |
Average Balance Sheet Data | | | | | | | | | |
Loans | $40,832 | | $39,803 | | $37,913 | | 2.6 | | 7.7 | | | $40,318 | | $37,426 | | 7.7 | |
Other earning assets | 115 | | 153 | | 74 | | (24.8) | | 55.4 | | | 134 | | 187 | | (28.3) | |
Goodwill | 3,327 | | 3,331 | | 3,331 | | (.1) | | (.1) | | | 3,329 | | 3,323 | | .2 | |
Other intangible assets | 281 | | 300 | | 359 | | (6.3) | | (21.7) | | | 291 | | 372 | | (21.8) | |
Assets | 46,099 | | 46,816 | | 44,126 | | (1.5) | | 4.5 | | | 46,458 | | 43,492 | | 6.8 | |
| | | | | | | | | |
Noninterest-bearing deposits | 2,706 | | 2,791 | | 3,179 | | (3.0) | | (14.9) | | | 2,749 | | 3,181 | | (13.6) | |
Interest-bearing deposits | 97 | | 97 | | 104 | | — | | (6.7) | | | 97 | | 106 | | (8.5) | |
Total deposits | 2,803 | | 2,888 | | 3,283 | | (2.9) | | (14.6) | | | 2,846 | | 3,287 | | (13.4) | |
| | | | | | | | | |
Total U.S. Bancorp shareholders' equity | 9,941 | | 9,965 | | 9,127 | | (.2) | | 8.9 | | | 9,953 | | 9,048 | | 10.0 | |
Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate, government and purchasing card services and merchant processing.
Payment Services generated $784 million of income before provision and taxes in the second quarter of 2024, compared with $732 million in the second quarter of 2023, and contributed $297 million of the Company’s net income in the second quarter of 2024. The provision for credit losses increased $74 million (23.6 percent) compared with the second quarter of 2023 primarily due to normalizing credit conditions. Total net revenue increased $94 million (5.6 percent) in the second quarter of 2024 due to higher net interest income of $50 million (8.0 percent) and higher total noninterest income of $44 million (4.2 percent). Net interest income increased primarily due to higher loan yields driven by higher interest rates and customer revolve rates, along with higher loan balances, partially offset by higher funding costs. Total noninterest income increased year-over-year driven by higher merchant processing services revenue, mainly due to favorable rates, and higher other revenue. Total noninterest expense increased $42 million (4.5 percent) reflecting higher net shared services expense driven by investment in infrastructure and higher marketing and business development expense.
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TREASURY AND CORPORATE SUPPORT | | | Preliminary data |
($ in millions) | | | | Percent Change | | | | |
| 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q24 vs 1Q24 | 2Q24 vs 2Q23 | | YTD 2024 | YTD 2023 | Percent Change |
Condensed Income Statement | | | | | | | | | |
Net interest income (taxable-equivalent basis) | ($449) | | ($470) | | ($363) | | 4.5 | | (23.7) | | | ($919) | | ($694) | | (32.4) | |
Noninterest income | 213 | | 183 | | 171 | | 16.4 | | 24.6 | | | 396 | | 354 | | 11.9 | |
Securities gains (losses), net | (36) | | 2 | | 3 | | nm | nm | | (34) | | (29) | | (17.2) | |
Total net revenue | (272) | | (285) | | (189) | | 4.6 | | (43.9) | | | (557) | | (369) | | (50.9) | |
Noninterest expense | 235 | | 487 | | 484 | | (51.7) | | (51.4) | | | 722 | | 1,001 | | (27.9) | |
Other intangibles | — | | — | | — | | — | | — | | | — | | — | | — | |
Total noninterest expense | 235 | | 487 | | 484 | | (51.7) | | (51.4) | | | 722 | | 1,001 | | (27.9) | |
Income (loss) before provision and taxes | (507) | | (772) | | (673) | | 34.3 | | 24.7 | | | (1,279) | | (1,370) | | 6.6 | |
Provision for credit losses | 50 | | (1) | | 329 | | nm | (84.8) | | | 49 | | 556 | | (91.2) | |
Income (loss) before income taxes | (557) | | (771) | | (1,002) | | 27.8 | | 44.4 | | | (1,328) | | (1,926) | | 31.0 | |
Income taxes and taxable-equivalent adjustment | (187) | | (242) | | (282) | | 22.7 | | 33.7 | | | (429) | | (573) | | 25.1 | |
Net income | (370) | | (529) | | (720) | | 30.1 | | 48.6 | | | (899) | | (1,353) | | 33.6 | |
Net (income) loss attributable to noncontrolling interests | (8) | | (7) | | (8) | | (14.3) | | — | | | (15) | | (14) | | (7.1) | |
Net income (loss) attributable to U.S. Bancorp | ($378) | | ($536) | | ($728) | | 29.5 | | 48.1 | | | ($914) | | ($1,367) | | 33.1 | |
| | | | | | | | | |
Average Balance Sheet Data | | | | | | | | | |
Loans | $5,301 | | $5,367 | | $5,153 | | (1.2) | | 2.9 | | | $5,334 | | $5,282 | | 1.0 | |
Other earning assets | 222,224 | | 214,295 | | 215,765 | | 3.7 | | 3.0 | | | 218,259 | | 214,073 | | 2.0 | |
Goodwill | — | | — | | — | | — | | — | | | — | | — | | — | |
Other intangible assets | 9 | | 10 | | 10 | | (10.0) | | (10.0) | | | 10 | | 23 | | (56.5) | |
Assets | 247,570 | | 238,828 | | 238,913 | | 3.7 | | 3.6 | | | 243,199 | | 237,559 | | 2.4 | |
| | | | | | | | | |
Noninterest-bearing deposits | 2,513 | | 2,041 | | 2,947 | | 23.1 | | (14.7) | | | 2,277 | | 3,092 | | (26.4) | |
Interest-bearing deposits | 11,134 | | 11,038 | | 7,831 | | .9 | | 42.2 | | | 11,087 | | 7,348 | | 50.9 | |
Total deposits | 13,647 | | 13,079 | | 10,778 | | 4.3 | | 26.6 | | | 13,364 | | 10,440 | | 28.0 | |
| | | | | | | | | |
Total U.S. Bancorp shareholders' equity | 10,054 | | 9,101 | | 5,950 | | 10.5 | | 69.0 | | | 9,578 | | 5,775 | | 65.9 | |
Treasury and Corporate Support includes the Company’s investment portfolios, funding, capital management, interest rate risk management, income taxes not allocated to the business lines, including most investments in tax-advantaged projects, and the residual aggregate of those expenses associated with corporate activities that are managed on a consolidated basis.
Treasury and Corporate Support generated a $507 million loss before provision and taxes in the second quarter of 2024, compared with a $673 million loss before provision and taxes in the second quarter of 2023, and recorded a net loss of $378 million in the second quarter of 2024. The provision for credit losses decreased $279 million (84.8 percent) compared with the second quarter of 2023 primarily due to balance sheet optimization activities in the prior year quarter, along with relative stability in the economic outlook in the current quarter. Total net revenue was lower by $83 million (43.9 percent) in the second quarter of 2024 due to a decrease of $86 million (23.7 percent) in net interest income, partially offset by an increase of $3 million (1.7 percent) in total noninterest income. Net interest income decreased primarily due to higher funding costs partially offset by higher yields on the investment portfolio and cash balances. The increase in total noninterest income was primarily due to increases in commercial products revenue and a gain on the sale of mortgage servicing rights, partially offset by losses on the sales of securities and a decrease in other revenue. Total noninterest expense decreased $249 million (51.4 percent) compared with the second quarter of 2023 primarily due to a decline in notable items and synergies from the MUB acquisition, as well as prudent expense management and continued focus on operational efficiency, partially offset by higher net shared services and marketing and business development expense due to the timing of campaigns.
Income taxes are assessed to each line of business at a managerial tax rate of 25.0 percent with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in Treasury and Corporate Support.
| | |
Supplemental Consolidated Schedules Second Quarter 2024 |
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| | | | | | | | | | | | | | | | | |
QUARTERLY CONSOLIDATED STATEMENT OF INCOME |
(Dollars and Shares in Millions, Except Per Share Data) (Unaudited) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
Interest Income | | | | | |
Loans | $5,761 | | $5,712 | | $5,742 | | $5,700 | | $5,605 | |
Loans held for sale | 41 | | 37 | | 36 | | 42 | | 38 | |
Investment securities | 1,294 | | 1,175 | | 1,182 | | 1,152 | | 1,077 | |
Other interest income | 889 | | 840 | | 803 | | 860 | | 806 | |
Total interest income | 7,985 | | 7,764 | | 7,763 | | 7,754 | | 7,526 | |
Interest Expense | | | | | |
Deposits | 3,028 | | 2,884 | | 2,751 | | 2,580 | | 1,939 | |
Short-term borrowings | 296 | | 270 | | 332 | | 450 | | 740 | |
Long-term debt | 638 | | 625 | | 569 | | 488 | | 432 | |
Total interest expense | 3,962 | | 3,779 | | 3,652 | | 3,518 | | 3,111 | |
Net interest income | 4,023 | | 3,985 | | 4,111 | | 4,236 | | 4,415 | |
Provision for credit losses | 568 | | 553 | | 512 | | 515 | | 821 | |
Net interest income after provision for credit losses | 3,455 | | 3,432 | | 3,599 | | 3,721 | | 3,594 | |
Noninterest Income | | | | | |
Card revenue | 428 | | 392 | | 436 | | 412 | | 422 | |
Corporate payment products revenue | 195 | | 184 | | 182 | | 198 | | 190 | |
Merchant processing services | 454 | | 401 | | 409 | | 427 | | 436 | |
Trust and investment management fees | 649 | | 641 | | 621 | | 627 | | 621 | |
Service charges | 322 | | 315 | | 324 | | 334 | | 324 | |
Commercial products revenue | 374 | | 388 | | 326 | | 354 | | 358 | |
Mortgage banking revenue | 190 | | 166 | | 137 | | 144 | | 131 | |
Investment products fees | 82 | | 77 | | 73 | | 70 | | 68 | |
Securities gains (losses), net | (36) | | 2 | | (116) | | — | | 3 | |
Other | 157 | | 134 | | 228 | | 198 | | 173 | |
Total noninterest income | 2,815 | | 2,700 | | 2,620 | | 2,764 | | 2,726 | |
Noninterest Expense | | | | | |
Compensation and employee benefits | 2,619 | | 2,691 | | 2,509 | | 2,615 | | 2,646 | |
Net occupancy and equipment | 316 | | 296 | | 316 | | 313 | | 316 | |
Professional services | 116 | | 110 | | 158 | | 127 | | 141 | |
Marketing and business development | 158 | | 136 | | 306 | | 176 | | 122 | |
Technology and communications | 509 | | 507 | | 513 | | 511 | | 522 | |
Other intangibles | 142 | | 146 | | 156 | | 161 | | 159 | |
Merger and integration charges | — | | 155 | | 171 | | 284 | | 310 | |
Other | 354 | | 418 | | 1,090 | | 343 | | 353 | |
Total noninterest expense | 4,214 | | 4,459 | | 5,219 | | 4,530 | | 4,569 | |
Income before income taxes | 2,056 | | 1,673 | | 1,000 | | 1,955 | | 1,751 | |
Applicable income taxes | 445 | | 347 | | 139 | | 431 | | 382 | |
Net income | 1,611 | | 1,326 | | 861 | | 1,524 | | 1,369 | |
Net (income) loss attributable to noncontrolling interests | (8) | | (7) | | (14) | | (1) | | (8) | |
Net income attributable to U.S. Bancorp | $1,603 | | $1,319 | | $847 | | $1,523 | | $1,361 | |
Net income applicable to U.S. Bancorp common shareholders | $1,518 | | $1,209 | | $766 | | $1,412 | | $1,281 | |
| | | | | |
Earnings per common share | $.97 | | $.78 | | $.49 | | $.91 | | $.84 | |
Diluted earnings per common share | $.97 | | $.78 | | $.49 | | $.91 | | $.84 | |
Dividends declared per common share | $.49 | | $.49 | | $.49 | | $.48 | | $.48 | |
Average common shares outstanding | 1,560 | | 1,559 | | 1,557 | | 1,548 | | 1,533 | |
Average diluted common shares outstanding | 1,561 | | 1,559 | | 1,558 | | 1,549 | | 1,533 | |
Financial Ratios (%) | | | | | |
Net interest margin (taxable-equivalent basis) | 2.67 | | 2.70 | | 2.78 | | 2.81 | | 2.90 | |
Return on average assets | .97 | | .81 | | .52 | | .91 | | .81 | |
Return on average common equity | 12.4 | | 10.0 | | 6.4 | | 11.9 | | 10.9 | |
Efficiency ratio | 61.0 | | 66.4 | | 75.9 | | 64.4 | | 63.7 | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED ENDING BALANCE SHEET |
(Dollars in Millions) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
Assets | (Unaudited) | (Unaudited) | | (Unaudited) | (Unaudited) |
Cash and due from banks | $65,832 | | $76,985 | | $61,192 | | $64,354 | | $70,642 | |
Investment securities | | | | | |
Held-to-maturity | 81,486 | | 82,948 | | 84,045 | | 85,342 | | 86,938 | |
Available-for-sale | 79,799 | | 72,426 | | 69,706 | | 67,207 | | 69,221 | |
Loans held for sale | 2,582 | | 2,080 | | 2,201 | | 2,336 | | 2,361 | |
Loans | | | | | |
Commercial | 135,248 | | 134,726 | | 131,881 | | 133,319 | | 136,775 | |
Commercial real estate | 51,887 | | 52,677 | | 53,455 | | 54,131 | | 54,357 | |
Residential mortgages | 117,147 | | 116,079 | | 115,530 | | 115,055 | | 114,449 | |
Credit card | 28,715 | | 27,844 | | 28,560 | | 27,080 | | 26,626 | |
Other retail | 43,136 | | 43,262 | | 44,409 | | 45,649 | | 47,221 | |
Total loans | 376,133 | | 374,588 | | 373,835 | | 375,234 | | 379,428 | |
Less allowance for loan losses | (7,549) | | (7,514) | | (7,379) | | (7,218) | | (7,164) | |
Net loans | 368,584 | | 367,074 | | 366,456 | | 368,016 | | 372,264 | |
Premises and equipment | 3,570 | | 3,537 | | 3,623 | | 3,616 | | 3,695 | |
Goodwill | 12,476 | | 12,479 | | 12,489 | | 12,472 | | 12,486 | |
Other intangible assets | 5,757 | | 6,031 | | 6,084 | | 6,435 | | 6,634 | |
Other assets | 59,972 | | 60,046 | | 57,695 | | 58,261 | | 56,584 | |
Total assets | $680,058 | | $683,606 | | $663,491 | | $668,039 | | $680,825 | |
| | | | | |
Liabilities and Shareholders' Equity | | | | | |
Deposits | | | | | |
Noninterest-bearing | $86,756 | | $91,220 | | $89,989 | | $98,006 | | $104,996 | |
Interest-bearing | 437,029 | | 436,843 | | 422,323 | | 420,352 | | 416,604 | |
Total deposits | 523,785 | | 528,063 | | 512,312 | | 518,358 | | 521,600 | |
Short-term borrowings | 16,557 | | 17,102 | | 15,279 | | 21,900 | | 32,334 | |
Long-term debt | 52,720 | | 52,693 | | 51,480 | | 43,074 | | 45,283 | |
Other liabilities | 30,111 | | 29,715 | | 28,649 | | 31,129 | | 28,124 | |
Total liabilities | 623,173 | | 627,573 | | 607,720 | | 614,461 | | 627,341 | |
Shareholders' equity | | | | | |
Preferred stock | 6,808 | | 6,808 | | 6,808 | | 6,808 | | 6,808 | |
Common stock | 21 | | 21 | | 21 | | 21 | | 21 | |
Capital surplus | 8,688 | | 8,642 | | 8,673 | | 8,684 | | 8,742 | |
Retained earnings | 75,231 | | 74,473 | | 74,026 | | 74,023 | | 73,355 | |
Less treasury stock | (24,020) | | (24,023) | | (24,126) | | (24,168) | | (25,189) | |
Accumulated other comprehensive income (loss) | (10,308) | | (10,353) | | (10,096) | | (12,255) | | (10,718) | |
Total U.S. Bancorp shareholders' equity | 56,420 | | 55,568 | | 55,306 | | 53,113 | | 53,019 | |
Noncontrolling interests | 465 | | 465 | | 465 | | 465 | | 465 | |
Total equity | 56,885 | | 56,033 | | 55,771 | | 53,578 | | 53,484 | |
Total liabilities and equity | $680,058 | | $683,606 | | $663,491 | | $668,039 | | $680,825 | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEET |
(Dollars in Millions, Unaudited) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
Assets | | | | | |
Investment securities | $167,020 | | $161,236 | | $161,885 | | $163,236 | | $159,824 | |
Loans held for sale | 2,382 | | 2,002 | | 2,154 | | 2,661 | | 2,569 | |
Loans | | | | | |
Commercial | | | | | |
Commercial | 130,162 | | 126,602 | | 126,884 | | 130,415 | | 133,697 | |
Lease financing | 4,177 | | 4,165 | | 4,212 | | 4,305 | | 4,388 | |
Total commercial | 134,339 | | 130,767 | | 131,096 | | 134,720 | | 138,085 | |
Commercial real estate | | | | | |
Commercial mortgages | 40,871 | | 41,545 | | 42,089 | | 42,665 | | 43,214 | |
Construction and development | 11,418 | | 11,492 | | 11,736 | | 11,588 | | 11,720 | |
Total commercial real estate | 52,289 | | 53,037 | | 53,825 | | 54,253 | | 54,934 | |
Residential mortgages | 116,478 | | 115,639 | | 115,196 | | 114,627 | | 117,606 | |
Credit card | 28,349 | | 27,942 | | 27,753 | | 26,883 | | 26,046 | |
Other retail | | | | | |
Retail leasing | 4,185 | | 4,082 | | 4,167 | | 4,436 | | 4,829 | |
Home equity and second mortgages | 13,053 | | 12,983 | | 12,977 | | 12,809 | | 12,753 | |
Other | 25,992 | | 26,620 | | 27,842 | | 29,149 | | 34,564 | |
Total other retail | 43,230 | | 43,685 | | 44,986 | | 46,394 | | 52,146 | |
Total loans | 374,685 | | 371,070 | | 372,856 | | 376,877 | | 388,817 | |
Interest-bearing deposits with banks | 53,056 | | 50,903 | | 47,532 | | 53,100 | | 51,972 | |
Other earning assets | 11,749 | | 10,924 | | 9,817 | | 9,371 | | 10,657 | |
Total earning assets | 608,892 | | 596,135 | | 594,244 | | 605,245 | | 613,839 | |
Allowance for loan losses | (7,550) | | (7,438) | | (7,270) | | (7,266) | | (7,068) | |
Unrealized gain (loss) on investment securities | (7,464) | | (7,121) | | (8,806) | | (8,241) | | (7,356) | |
Other assets | 71,626 | | 72,333 | | 73,280 | | 74,261 | | 73,597 | |
Total assets | $665,504 | | $653,909 | | $651,448 | | $663,999 | | $673,012 | |
| | | | | |
Liabilities and Shareholders' Equity | | | | | |
Noninterest-bearing deposits | $83,418 | | $84,787 | | $90,590 | | $97,524 | | $113,758 | |
Interest-bearing deposits | | | | | |
Interest checking | 125,709 | | 125,011 | | 127,445 | | 132,560 | | 127,994 | |
Money market savings | 208,386 | | 196,502 | | 187,322 | | 177,340 | | 152,893 | |
Savings accounts | 38,855 | | 41,645 | | 44,728 | | 50,138 | | 58,993 | |
Time deposits | 57,541 | | 55,116 | | 52,697 | | 54,729 | | 43,627 | |
Total interest-bearing deposits | 430,491 | | 418,274 | | 412,192 | | 414,767 | | 383,507 | |
Short-term borrowings | 17,098 | | 16,364 | | 18,645 | | 27,550 | | 54,172 | |
Long-term debt | 52,875 | | 52,713 | | 48,863 | | 43,826 | | 42,771 | |
Total interest-bearing liabilities | 500,464 | | 487,351 | | 479,700 | | 486,143 | | 480,450 | |
Other liabilities | 25,130 | | 25,640 | | 26,379 | | 26,049 | | 24,517 | |
Shareholders' equity | | | | | |
Preferred equity | 6,808 | | 6,808 | | 6,808 | | 6,808 | | 6,808 | |
Common equity | 49,221 | | 48,859 | | 47,506 | | 47,009 | | 47,014 | |
Total U.S. Bancorp shareholders' equity | 56,029 | | 55,667 | | 54,314 | | 53,817 | | 53,822 | |
Noncontrolling interests | 463 | | 464 | | 465 | | 466 | | 465 | |
Total equity | 56,492 | | 56,131 | | 54,779 | | 54,283 | | 54,287 | |
Total liabilities and equity | $665,504 | | $653,909 | | $651,448 | | $663,999 | | $673,012 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
CONSOLIDATED DAILY AVERAGE BALANCE SHEET AND RELATED YIELDS AND RATES (a) |
| | | | | | | | |
| | For the Three Months Ended June 30, | | | |
| | 2024 | | | 2023 | | | |
(Dollars in Millions) (Unaudited) | Average Balances | Interest | Yields and Rates | Average Balances | Interest | Yields and Rates | % Change Average Balances |
Assets | | | | | | | | |
Investment securities | $167,020 | | $1,314 | | 3.15 | % | $159,824 | | $1,098 | | 2.75 | % | | 4.5 | % |
Loans held for sale | 2,382 | | 41 | | 6.98 | | 2,569 | | 38 | | 5.90 | | | (7.3) | |
Loans (b) | | | | | | | | |
Commercial | 134,339 | | 2,209 | | 6.61 | | 138,085 | | 2,201 | | 6.39 | | | (2.7) | |
Commercial real estate | 52,289 | | 847 | | 6.51 | | 54,934 | | 847 | | 6.18 | | | (4.8) | |
Residential mortgages | 116,478 | | 1,141 | | 3.92 | | 117,606 | | 1,087 | | 3.70 | | | (1.0) | |
Credit card | 28,349 | | 925 | | 13.13 | | 26,046 | | 822 | | 12.67 | | | 8.8 | |
Other retail | 43,230 | | 650 | | 6.05 | | 52,146 | | 663 | | 5.10 | | | (17.1) | |
Total loans | 374,685 | | 5,772 | | 6.19 | | 388,817 | | 5,620 | | 5.79 | | | (3.6) | |
Interest-bearing deposits with banks | 53,056 | | 736 | | 5.58 | | 51,972 | | 674 | | 5.20 | | | 2.1 | |
Other earning assets | 11,749 | | 152 | | 5.22 | | 10,657 | | 132 | | 4.99 | | | 10.2 | |
Total earning assets | 608,892 | | 8,015 | | 5.29 | | 613,839 | | 7,562 | | 4.94 | | | (.8) | |
Allowance for loan losses | (7,550) | | | | (7,068) | | | | | (6.8) | |
Unrealized gain (loss) on investment securities | (7,464) | | | | (7,356) | | | | | (1.5) | |
Other assets | 71,626 | | | | 73,597 | | | | | (2.7) | |
Total assets | $665,504 | | | | $673,012 | | | | | (1.1) | |
| | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | |
Noninterest-bearing deposits | $83,418 | | | | $113,758 | | | | | (26.7) | % |
Interest-bearing deposits | | | | | | | | |
Interest checking | 125,709 | | 386 | | 1.23 | | 127,994 | | 312 | | .98 | | | (1.8) | |
Money market savings | 208,386 | | 1,993 | | 3.85 | | 152,893 | | 1,224 | | 3.21 | | | 36.3 | |
Savings accounts | 38,855 | | 26 | | .27 | | 58,993 | | 23 | | .16 | | | (34.1) | |
Time deposits | 57,541 | | 623 | | 4.35 | | 43,627 | | 380 | | 3.49 | | | 31.9 | |
Total interest-bearing deposits | 430,491 | | 3,028 | | 2.83 | | 383,507 | | 1,939 | | 2.03 | | | 12.3 | |
Short-term borrowings | 17,098 | | 297 | | 6.98 | | 54,172 | | 742 | | 5.49 | | | (68.4) | |
Long-term debt | 52,875 | | 638 | | 4.85 | | 42,771 | | 432 | | 4.05 | | | 23.6 | |
Total interest-bearing liabilities | 500,464 | | 3,963 | | 3.18 | | 480,450 | | 3,113 | | 2.60 | | | 4.2 | |
Other liabilities | 25,130 | | | | 24,517 | | | | | 2.5 | |
Shareholders' equity | | | | | | | | |
Preferred equity | 6,808 | | | | 6,808 | | | | | — | |
Common equity | 49,221 | | | | 47,014 | | | | | 4.7 | |
Total U.S. Bancorp shareholders' equity | 56,029 | | | | 53,822 | | | | | 4.1 | |
Noncontrolling interests | 463 | | | | 465 | | | | | (.4) | |
Total equity | 56,492 | | | | 54,287 | | | | | 4.1 | |
Total liabilities and equity | $665,504 | | | | $673,012 | | | | | (1.1) | |
Net interest income | | $4,052 | | | | $4,449 | | | | |
Gross interest margin | | | 2.11 | % | | | 2.34 | % | | |
Gross interest margin without taxable-equivalent increments | | 2.09 | | | | 2.32 | | | |
| | | | | | | | |
Percent of Earning Assets | | | | | | | | |
Interest income | | | 5.29 | % | | | 4.94 | % | | |
Interest expense | | | 2.62 | | | | 2.04 | | | |
Net interest margin | | | 2.67 | % | | | 2.90 | % | | |
Net interest margin without taxable-equivalent increments | | 2.65 | % | | | 2.88 | % | | |
| | | | | | | | |
(a)Interest and rates are presented on a fully taxable-equivalent basis based on a federal income tax rate of 21 percent. (b)Interest income and rates on loans include loan fees. Nonaccrual loans are included in average loan balances. |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
CONSOLIDATED DAILY AVERAGE BALANCE SHEET AND RELATED YIELDS AND RATES (a) |
| | | | | | | | |
| | For the Three Months Ended | | | |
| June 30, 2024 | March 31, 2024 | | |
(Dollars in Millions) (Unaudited) | Average Balances | Interest | Yields and Rates | Average Balances | Interest | Yields and Rates | % Change Average Balances |
Assets | | | | | | | | |
Investment securities | $167,020 | | $1,314 | | 3.15 | % | $161,236 | | $1,194 | | 2.96 | % | | 3.6 | % |
Loans held for sale | 2,382 | | 41 | | 6.98 | | 2,002 | | 37 | | 7.32 | | | 19.0 | |
Loans (b) | | | | | | | | |
Commercial | 134,339 | | 2,209 | | 6.61 | | 130,767 | | 2,180 | | 6.70 | | | 2.7 | |
Commercial real estate | 52,289 | | 847 | | 6.51 | | 53,037 | | 854 | | 6.48 | | | (1.4) | |
Residential mortgages | 116,478 | | 1,141 | | 3.92 | | 115,639 | | 1,107 | | 3.83 | | | .7 | |
Credit card | 28,349 | | 925 | | 13.13 | | 27,942 | | 940 | | 13.53 | | | 1.5 | |
Other retail | 43,230 | | 650 | | 6.05 | | 43,685 | | 642 | | 5.91 | | | (1.0) | |
Total loans | 374,685 | | 5,772 | | 6.19 | | 371,070 | | 5,723 | | 6.20 | | | 1.0 | |
Interest-bearing deposits with banks | 53,056 | | 736 | | 5.58 | | 50,903 | | 704 | | 5.56 | | | 4.2 | |
Other earning assets | 11,749 | | 152 | | 5.22 | | 10,924 | | 137 | | 5.05 | | | 7.6 | |
Total earning assets | 608,892 | | 8,015 | | 5.29 | | 596,135 | | 7,795 | | 5.25 | | | 2.1 | |
Allowance for loan losses | (7,550) | | | | (7,438) | | | | | (1.5) | |
Unrealized gain (loss) on investment securities | (7,464) | | | | (7,121) | | | | | (4.8) | |
Other assets | 71,626 | | | | 72,333 | | | | | (1.0) | |
Total assets | $665,504 | | | | $653,909 | | | | | 1.8 | |
| | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | |
Noninterest-bearing deposits | $83,418 | | | | $84,787 | | | | | (1.6) | % |
Interest-bearing deposits | | | | | | | | |
Interest checking | 125,709 | | 386 | | 1.23 | | 125,011 | | 362 | | 1.17 | | | .6 | |
Money market savings | 208,386 | | 1,993 | | 3.85 | | 196,502 | | 1,914 | | 3.92 | | | 6.0 | |
Savings accounts | 38,855 | | 26 | | .27 | | 41,645 | | 26 | | .25 | | | (6.7) | |
Time deposits | 57,541 | | 623 | | 4.35 | | 55,116 | | 582 | | 4.25 | | | 4.4 | |
Total interest-bearing deposits | 430,491 | | 3,028 | | 2.83 | | 418,274 | | 2,884 | | 2.77 | | | 2.9 | |
Short-term borrowings | 17,098 | | 297 | | 6.98 | | 16,364 | | 271 | | 6.66 | | | 4.5 | |
Long-term debt | 52,875 | | 638 | | 4.85 | | 52,713 | | 625 | | 4.76 | | | .3 | |
Total interest-bearing liabilities | 500,464 | | 3,963 | | 3.18 | | 487,351 | | 3,780 | | 3.12 | | | 2.7 | |
Other liabilities | 25,130 | | | | 25,640 | | | | | (2.0) | |
Shareholders' equity | | | | | | | | |
Preferred equity | 6,808 | | | | 6,808 | | | | | — | |
Common equity | 49,221 | | | | 48,859 | | | | | .7 | |
Total U.S. Bancorp shareholders' equity | 56,029 | | | | 55,667 | | | | | .7 | |
Noncontrolling interests | 463 | | | | 464 | | | | | (.2) | |
Total equity | 56,492 | | | | 56,131 | | | | | .6 | |
Total liabilities and equity | $665,504 | | | | $653,909 | | | | | 1.8 | |
Net interest income | | $4,052 | | | | $4,015 | | | | |
Gross interest margin | | | 2.11 | % | | | 2.13 | % | | |
Gross interest margin without taxable-equivalent increments | | 2.09 | | | | 2.11 | | | |
| | | | | | | | |
Percent of Earning Assets | | | | | | | | |
Interest income | | | 5.29 | % | | | 5.25 | % | | |
Interest expense | | | 2.62 | | | | 2.55 | | | |
Net interest margin | | | 2.67 | % | | | 2.70 | % | | |
Net interest margin without taxable-equivalent increments | | 2.65 | % | | | 2.68 | % | | |
| | | | | | | | |
(a)Interest and rates are presented on a fully taxable-equivalent basis based on a federal income tax rate of 21 percent. (b)Interest income and rates on loans include loan fees. Nonaccrual loans are included in average loan balances. |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
CONSOLIDATED DAILY AVERAGE BALANCE SHEET AND RELATED YIELDS AND RATES (a) |
| | | | | | | | |
| | For the Six Months Ended June 30, | | | |
| 2024 | 2023 | | |
(Dollars in Millions) (Unaudited) | Average Balances | Interest | Yields and Rates | Average Balances | Interest | Yields and Rates | % Change Average Balances |
Assets | | | | | | | | |
Investment securities | $164,128 | | $2,508 | | 3.06 | % | $162,957 | | $2,192 | | 2.69 | % | | .7 | % |
Loans held for sale | 2,192 | | 78 | | 7.14 | | 2,516 | | 69 | | 5.51 | | | (12.9) | |
Loans (b) | | | | | | | | |
Commercial | 132,553 | | 4,389 | | 6.66 | | 136,891 | | 4,198 | | 6.18 | | | (3.2) | |
Commercial real estate | 52,663 | | 1,701 | | 6.49 | | 55,263 | | 1,650 | | 6.02 | | | (4.7) | |
Residential mortgages | 116,059 | | 2,248 | | 3.88 | | 116,950 | | 2,137 | | 3.66 | | | (.8) | |
Credit card | 28,145 | | 1,865 | | 13.32 | | 25,809 | | 1,622 | | 12.68 | | | 9.1 | |
Other retail | 43,458 | | 1,292 | | 5.98 | | 52,876 | | 1,305 | | 4.98 | | | (17.8) | |
Total loans | 372,878 | | 11,495 | | 6.19 | | 387,789 | | 10,912 | | 5.67 | | | (3.8) | |
Interest-bearing deposits with banks | 51,979 | | 1,440 | | 5.57 | | 47,662 | | 1,162 | | 4.91 | | | 9.1 | |
Other earning assets | 11,336 | | 289 | | 5.14 | | 9,820 | | 226 | | 4.64 | | | 15.4 | |
Total earning assets | 602,513 | | 15,810 | | 5.27 | | 610,744 | | 14,561 | | 4.80 | | | (1.3) | |
Allowance for loan losses | (7,493) | | | | (7,006) | | | | | (7.0) | |
Unrealized gain (loss) on investment securities | (7,293) | | | | (7,437) | | | | | 1.9 | |
Other assets | 71,980 | | | | 72,950 | | | | | (1.3) | |
Total assets | $659,707 | | | | $669,251 | | | | | (1.4) | |
| | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | |
Noninterest-bearing deposits | $84,102 | | | | $121,705 | | | | | (30.9) | % |
Interest-bearing deposits | | | | | | | | |
Interest checking | 125,360 | | 748 | | 1.20 | | 128,668 | | 595 | | .93 | | | (2.6) | |
Money market savings | 202,444 | | 3,907 | | 3.38 | | 149,948 | | 2,203 | | 2.96 | | | 35.0 | |
Savings accounts | 40,250 | | 52 | | .26 | | 63,883 | | 36 | | .11 | | | (37.0) | |
Time deposits | 56,329 | | 1,205 | | 4.30 | | 39,554 | | 610 | | 3.11 | | | 42.4 | |
Total interest-bearing deposits | 424,383 | | 5,912 | | 2.80 | | 382,053 | | 3,444 | | 1.82 | | | 11.1 | |
Short-term borrowings | 16,731 | | 568 | | 6.82 | | 45,369 | | 1,192 | | 5.30 | | | (63.1) | |
Long-term debt | 52,794 | | 1,263 | | 4.81 | | 41,902 | | 808 | | 3.88 | | | 26.0 | |
Total interest-bearing liabilities | 493,908 | | 7,743 | | 3.15 | | 469,324 | | 5,444 | | 2.34 | | | 5.2 | |
Other liabilities | 25,385 | | | | 24,509 | | | | | 3.6 | |
Shareholders' equity | | | | | | | | |
Preferred equity | 6,808 | | | | 6,808 | | | | | — | |
Common equity | 49,041 | | | | 46,440 | | | | | 5.6 | |
Total U.S. Bancorp shareholders' equity | 55,849 | | | | 53,248 | | | | | 4.9 | |
Noncontrolling interests | 463 | | | | 465 | | | | | (.4) | |
Total equity | 56,312 | | | | 53,713 | | | | | 4.8 | |
Total liabilities and equity | $659,707 | | | | $669,251 | | | | | (1.4) | |
Net interest income | | $8,067 | | | | $9,117 | | | | |
Gross interest margin | | | 2.12 | % | | | 2.46 | % | | |
Gross interest margin without taxable-equivalent increments | | 2.10 | | | | 2.44 | | | |
| | | | | | | | |
Percent of Earning Assets | | | | | | | | |
Interest income | | | 5.27 | % | | | 4.80 | % | | |
Interest expense | | | 2.59 | | | | 1.80 | | | |
Net interest margin | | | 2.68 | % | | | 3.00 | % | | |
Net interest margin without taxable-equivalent increments | | 2.66 | % | | | 2.98 | % | | |
| | | | | | | | |
(a)Interest and rates are presented on a fully taxable-equivalent basis based on a federal income tax rate of 21 percent. (b)Interest income and rates on loans include loan fees. Nonaccrual loans are included in average loan balances. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LOAN PORTFOLIO |
| June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
(Dollars in Millions) (Unaudited) | Amount | Percent of Total | Amount | Percent of Total | Amount | Percent of Total | Amount | Percent of Total | Amount | Percent of Total |
Commercial | | | | | | | | | | |
Commercial | $131,043 | | 34.9 | | $130,530 | | 34.8 | | $127,676 | | 34.2 | | $129,040 | | 34.4 | | $132,374 | | 34.9 | |
Lease financing | 4,205 | | 1.1 | | 4,196 | | 1.2 | | 4,205 | | 1.1 | | 4,279 | | 1.1 | | 4,401 | | 1.2 | |
Total commercial | 135,248 | | 36.0 | | 134,726 | | 36.0 | | 131,881 | | 35.3 | | 133,319 | | 35.5 | | 136,775 | | 36.1 | |
| | | | | | | | | | |
Commercial real estate | | | | | | | | | | |
Commercial mortgages | 40,844 | | 10.9 | | 41,157 | | 11.0 | | 41,934 | | 11.2 | | 42,473 | | 11.3 | | 42,775 | | 11.3 | |
Construction and | | | | | | | | | | |
development | 11,043 | | 2.9 | | 11,520 | | 3.1 | | 11,521 | | 3.1 | | 11,658 | | 3.1 | | 11,582 | | 3.0 | |
Total commercial | | | | | | | | | | |
real estate | 51,887 | | 13.8 | | 52,677 | | 14.1 | | 53,455 | | 14.3 | | 54,131 | | 14.4 | | 54,357 | | 14.3 | |
| | | | | | | | | | |
Residential mortgages | | | | | | | | | | |
Residential mortgages | 110,680 | | 29.4 | | 109,396 | | 29.2 | | 108,605 | | 29.0 | | 107,875 | | 28.8 | | 107,017 | | 28.2 | |
Home equity loans, first | | | | | | | | | | |
liens | 6,467 | | 1.7 | | 6,683 | | 1.8 | | 6,925 | | 1.9 | | 7,180 | | 1.9 | | 7,432 | | 2.0 | |
Total residential | | | | | | | | | | |
mortgages | 117,147 | | 31.1 | | 116,079 | | 31.0 | | 115,530 | | 30.9 | | 115,055 | | 30.7 | | 114,449 | | 30.2 | |
| | | | | | | | | | |
Credit card | 28,715 | | 7.6 | | 27,844 | | 7.4 | | 28,560 | | 7.6 | | 27,080 | | 7.2 | | 26,626 | | 7.0 | |
| | | | | | | | | | |
Other retail | | | | | | | | | | |
Retail leasing | 4,178 | | 1.1 | | 4,137 | | 1.1 | | 4,135 | | 1.1 | | 4,271 | | 1.2 | | 4,637 | | 1.2 | |
Home equity and second | | | | | | | | | | |
mortgages | 13,180 | | 3.5 | | 12,932 | | 3.5 | | 13,056 | | 3.5 | | 12,879 | | 3.4 | | 12,799 | | 3.4 | |
Revolving credit | 3,597 | | 1.0 | | 3,473 | | .9 | | 3,668 | | 1.0 | | 3,766 | | 1.0 | | 3,797 | | 1.0 | |
Installment | 14,169 | | 3.8 | | 13,921 | | 3.7 | | 13,889 | | 3.7 | | 14,145 | | 3.8 | | 14,452 | | 3.8 | |
Automobile | 8,012 | | 2.1 | | 8,799 | | 2.3 | | 9,661 | | 2.6 | | 10,588 | | 2.8 | | 11,536 | | 3.0 | |
Total other retail | 43,136 | | 11.5 | | 43,262 | | 11.5 | | 44,409 | | 11.9 | | 45,649 | | 12.2 | | 47,221 | | 12.4 | |
Total loans | $376,133 | | 100.0 | | $374,588 | | 100.0 | | $373,835 | | 100.0 | | $375,234 | | 100.0 | | $379,428 | | 100.0 | |
| | |
Supplemental Business Line Schedules Second Quarter 2024 |
WEALTH, CORPORATE, COMMERCIAL AND INSTITUTIONAL BANKING
CONSUMER AND BUSINESS BANKING
PAYMENT SERVICES
TREASURY AND CORPORATE SUPPORT |
| | | | | | | | | | | | | | | | | |
WEALTH, CORPORATE, COMMERCIAL AND INSTITUTIONAL BANKING | Preliminary data |
| Three Months Ended |
(Dollars in Millions) (Unaudited) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
INCOME STATEMENT | | | | | |
Net Interest Income (taxable-equivalent basis) | $1,906 | | $1,904 | | $1,971 | | $2,021 | | $1,894 | |
Noninterest Income | | | | | |
Card revenue | — | | — | | — | | — | | — | |
Corporate payment products revenue | — | | — | | — | | — | | — | |
Merchant processing services | — | | — | | — | | — | | — | |
Trust and investment management fees | 648 | | 640 | | 620 | | 627 | | 621 | |
Service charges | 147 | | 135 | | 128 | | 129 | | 135 | |
Commercial products revenue | 200 | | 208 | | 149 | | 150 | | 198 | |
Mortgage banking revenue | — | | — | | — | | — | | — | |
Investment products fees | 82 | | 77 | | 73 | | 70 | | 68 | |
Securities gains (losses), net | — | | — | | — | | — | | — | |
Other | 54 | | 53 | | 51 | | 54 | | 49 | |
Total noninterest income | 1,131 | | 1,113 | | 1,021 | | 1,030 | | 1,071 | |
Total net revenue | 3,037 | | 3,017 | | 2,992 | | 3,051 | | 2,965 | |
Noninterest Expense | | | | | |
Compensation and employee benefits | 565 | | 566 | | 534 | | 543 | | 543 | |
Net occupancy and equipment | 39 | | 39 | | 37 | | 37 | | 38 | |
Other intangibles | 52 | | 52 | | 55 | | 57 | | 57 | |
Net shared services | 532 | | 514 | | 517 | | 501 | | 563 | |
Other | 186 | | 201 | | 225 | | 183 | | 179 | |
Total noninterest expense | 1,374 | | 1,372 | | 1,368 | | 1,321 | | 1,380 | |
Income before provision and income taxes | 1,663 | | 1,645 | | 1,624 | | 1,730 | | 1,585 | |
Provision for Credit Losses | 100 | | 141 | | 69 | | 136 | | 162 | |
Income before income taxes | 1,563 | | 1,504 | | 1,555 | | 1,594 | | 1,423 | |
Income taxes and taxable-equivalent adjustment | 391 | | 376 | | 389 | | 399 | | 356 | |
Net income | 1,172 | | 1,128 | | 1,166 | | 1,195 | | 1,067 | |
Net (income) loss attributable to noncontrolling interests | — | | — | | — | | — | | — | |
Net income attributable to U.S. Bancorp | $1,172 | | $1,128 | | $1,166 | | $1,195 | | $1,067 | |
| | | | | |
FINANCIAL RATIOS | | | | | |
Return on average assets | 2.32 | % | 2.28 | % | 2.31 | % | 2.33 | % | 2.09 | % |
Net interest margin (taxable-equivalent basis) | 4.18 | | 4.26 | | 4.37 | | 4.40 | | 4.10 | |
Efficiency ratio | 45.2 | | 45.5 | | 45.7 | | 43.3 | | 46.5 | |
| | | | | | | | | | | | | | | | | |
WEALTH, CORPORATE, COMMERCIAL AND INSTITUTIONAL BANKING | Preliminary data |
| Three Months Ended |
(Dollars in Millions) (Unaudited) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
AVERAGE BALANCE SHEET | | | | | |
Loans | | | | | |
Commercial | $115,649 | | $112,959 | | $113,301 | | $117,195 | | $120,880 | |
Commercial real estate | 37,472 | | 38,004 | | 38,357 | | 38,477 | | 38,518 | |
Residential mortgages | 15,134 | | 14,703 | | 14,571 | | 14,274 | | 13,620 | |
Credit card | — | | — | | — | | — | | — | |
Other retail | 5,440 | | 5,402 | | 5,610 | | 5,698 | | 5,731 | |
Total loans | 173,695 | | 171,068 | | 171,839 | | 175,644 | | 178,749 | |
Other Earning Assets | 9,590 | | 8,738 | | 7,287 | | 6,458 | | 6,671 | |
Total earning assets | 183,285 | | 179,806 | | 179,126 | | 182,102 | | 185,420 | |
Non-earning Assets | | | | | |
Goodwill | 4,824 | | 4,825 | | 4,825 | | 4,638 | | 4,651 | |
Other intangible assets | 1,007 | | 1,059 | | 1,112 | | 921 | | 962 | |
Other non-earning assets | 14,085 | | 13,502 | | 15,371 | | 16,193 | | 14,136 | |
Total non-earning assets | 19,916 | | 19,386 | | 21,308 | | 21,752 | | 19,749 | |
Total assets | 203,201 | | 199,192 | | 200,434 | | 203,854 | | 205,169 | |
Deposits | | | | | |
Noninterest-bearing deposits | 57,299 | | 58,580 | | 62,213 | | 66,144 | | 73,512 | |
Interest checking | 51,938 | | 50,783 | | 51,214 | | 52,891 | | 50,709 | |
Savings products | 152,244 | | 145,106 | | 142,979 | | 143,393 | | 131,208 | |
Time deposits | 12,111 | | 11,952 | | 12,041 | | 13,437 | | 13,416 | |
Total deposits | 273,592 | | 266,421 | | 268,447 | | 275,865 | | 268,845 | |
Other Interest-bearing Liabilities | 15,761 | | 15,159 | | 13,837 | | 12,842 | | 13,353 | |
Other Noninterest-bearing Liabilities | 10,748 | | 10,060 | | 11,969 | | 12,877 | | 11,794 | |
Total liabilities | 300,101 | | 291,640 | | 294,253 | | 301,584 | | 293,992 | |
Total U.S. Bancorp Shareholders' Equity | 21,481 | | 21,757 | | 22,707 | | 22,837 | | 22,359 | |
Noncontrolling Interests | — | | — | | — | | — | | — | |
Total Equity | 21,481 | | 21,757 | | 22,707 | | 22,837 | | 22,359 | |
NET INTEREST SPREADS (%) | | | | | |
Total earning assets | 1.16 | | 1.16 | | 1.17 | | 1.16 | | 1.19 | |
Total assets | .57 | | .60 | | .57 | | .60 | | .72 | |
Total deposits | 3.01 | | 3.06 | | 3.11 | | 3.08 | | 3.17 | |
Total liabilities | 3.00 | | 3.05 | | 3.10 | | 3.06 | | 3.12 | |
CREDIT QUALITY | | | | | |
Net Charge-offs | | | | | |
Commercial | $72 | | $51 | | $28 | | $42 | | $35 | |
Commercial real estate | 35 | | 13 | | 71 | | 49 | | 12 | |
Residential mortgages | — | | — | | — | | — | | — | |
Credit card | — | | — | | — | | — | | — | |
Other retail | — | | 1 | | — | | 1 | | — | |
Total net charge-offs | $107 | | $65 | | $99 | | $92 | | $47 | |
Net Charge-off Ratios | | | | | |
Commercial | .25 | % | .18 | % | .10 | % | .14 | % | .12 | % |
Commercial real estate | .38 | | .14 | | .73 | | .51 | | .12 | |
Residential mortgages | — | | — | | — | | — | | — | |
Credit card | — | | — | | — | | — | | — | |
Other retail | — | | .07 | | — | | .07 | | — | |
Total net charge-offs | .25 | % | .15 | % | .23 | % | .21 | % | .11 | % |
| | | | | |
| June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
Nonperforming Assets | | | | | |
Nonperforming loans | $1,353 | | $1,292 | | $937 | | $830 | | $604 | |
Other nonperforming assets | 1 | | 1 | | 1 | | 1 | | — | |
Total nonperforming assets | $1,354 | | $1,293 | | $938 | | $831 | | $604 | |
| | | | | |
| | | | | | | | | | | | | | | | | |
WEALTH, CORPORATE, COMMERCIAL AND INSTITUTIONAL BANKING | Preliminary data |
| Three Months Ended |
(Dollars in Millions) (Unaudited) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
OTHER INFORMATION | | | | | |
Average Loan Balances | | | | | |
Commercial real estate division | $45,003 | | $45,695 | | $46,344 | | $46,622 | | $46,840 | |
Global markets & specialized finance | 14,203 | | 14,088 | | 14,585 | | 14,997 | | 15,316 | |
Middle market | 29,250 | | 28,693 | | 28,712 | | 29,592 | | 30,616 | |
Wealth management | 27,661 | | 27,240 | | 27,404 | | 27,143 | | 26,910 | |
Corporate banking and other | 57,578 | | 55,352 | | 54,794 | | 57,290 | | 59,067 | |
Total | $173,695 | | $171,068 | | $171,839 | | $175,644 | | $178,749 | |
| | | | | |
Average Deposit Balances | | | | | |
Commercial real estate division | $14,950 | | $15,240 | | $16,336 | | $16,544 | | $16,476 | |
Global markets & specialized finance | 72,081 | | 65,192 | | 63,439 | | 64,406 | | 61,528 | |
Middle market | 40,700 | | 39,974 | | 39,921 | | 40,139 | | 41,043 | |
Wealth management | 42,240 | | 41,806 | | 41,302 | | 40,112 | | 39,769 | |
Corporate banking and other | 103,621 | | 104,209 | | 107,449 | | 114,664 | | 110,029 | |
Total | $273,592 | | $266,421 | | $268,447 | | $275,865 | | $268,845 | |
| | | | | |
Noninterest Income | | | | | |
Trust and investment management fees | | | | | |
Wealth management | $166 | | $165 | | $158 | | $157 | | $161 | |
U.S. Bancorp Asset Management | 60 | | 61 | | 57 | | 59 | | 59 | |
Global corporate trust & custody | 265 | | 262 | | 258 | | 259 | | 251 | |
Fund services | 147 | | 142 | | 138 | | 141 | | 142 | |
Other | 10 | | 10 | | 9 | | 11 | | 8 | |
Global capital markets | 238 | | 242 | | 188 | | 191 | | 216 | |
Treasury management | 147 | | 135 | | 128 | | 129 | | 135 | |
All other noninterest income | 98 | | 96 | | 85 | | 83 | | 99 | |
Total | $1,131 | | $1,113 | | $1,021 | | $1,030 | | $1,071 | |
| | | | | |
Assets Under Management by Category * | | | | | |
Equity | $73,940 | | $70,924 | | $66,344 | | $67,371 | | $63,958 | |
Fixed income | 217,792 | | 212,045 | | 200,607 | | 201,045 | | 204,257 | |
Money market | 154,977 | | 155,774 | | 154,250 | | 148,593 | | 140,366 | |
Other | 33,622 | | 33,421 | | 33,134 | | 31,212 | | 30,674 | |
Total | $480,331 | | $472,164 | | $454,335 | | $448,221 | | $439,255 | |
| | | | | |
* Amounts reported reflect end of month balances reported on a one month lag. |
| | | | | | | | | | | | | | | | | |
CONSUMER AND BUSINESS BANKING | | | | Preliminary data |
| Three Months Ended |
(Dollars in Millions) (Unaudited) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
INCOME STATEMENT | | | | | |
Net Interest Income (taxable-equivalent basis) | $1,922 | | $1,879 | | $1,960 | | $2,049 | | $2,295 | |
Noninterest Income | | | | | |
Card revenue | 3 | | 3 | | 3 | | 4 | | 2 | |
Corporate payment products revenue | — | | — | | — | | — | | — | |
Merchant processing services | — | | — | | — | | — | | — | |
Trust and investment management fees | 1 | | 1 | | 1 | | — | | — | |
Service charges | 173 | | 178 | | 194 | | 203 | | 187 | |
Commercial products revenue | 6 | | 6 | | 5 | | 5 | | 7 | |
Mortgage banking revenue | 160 | | 166 | | 137 | | 144 | | 161 | |
Investment products fees | — | | — | | — | | — | | — | |
Securities gains (losses), net | — | | — | | — | | — | | — | |
Other | 70 | | 69 | | 70 | | 78 | | 74 | |
Total noninterest income | 413 | | 423 | | 410 | | 434 | | 431 | |
Total net revenue | 2,335 | | 2,302 | | 2,370 | | 2,483 | | 2,726 | |
Noninterest Expense | | | | | |
Compensation and employee benefits | 554 | | 560 | | 553 | | 577 | | 589 | |
Net occupancy and equipment | 154 | | 147 | | 153 | | 153 | | 154 | |
Other intangibles | 67 | | 67 | | 72 | | 75 | | 74 | |
Net shared services | 681 | | 676 | | 712 | | 688 | | 774 | |
Other | 166 | | 152 | | 181 | | 178 | | 173 | |
Total noninterest expense | 1,622 | | 1,602 | | 1,671 | | 1,671 | | 1,764 | |
Income before provision and income taxes | 713 | | 700 | | 699 | | 812 | | 962 | |
Provision for Credit Losses | 30 | | 54 | | 48 | | 7 | | 16 | |
Income before income taxes | 683 | | 646 | | 651 | | 805 | | 946 | |
Income taxes and taxable-equivalent adjustment | 171 | | 162 | | 163 | | 201 | | 237 | |
Net income | 512 | | 484 | | 488 | | 604 | | 709 | |
Net (income) loss attributable to noncontrolling interests | — | | — | | — | | — | | — | |
Net income attributable to U.S. Bancorp | $512 | | $484 | | $488 | | $604 | | $709 | |
| | | | | |
FINANCIAL RATIOS | | | | | |
Return on average assets | 1.22 | % | 1.15 | % | 1.13 | % | 1.37 | % | 1.54 | % |
Net interest margin (taxable-equivalent basis) | 4.92 | | 4.82 | | 4.92 | | 5.08 | | 5.43 | |
Efficiency ratio | 69.5 | | 69.6 | | 70.5 | | 67.3 | | 64.7 | |
| | | | | | | | | | | | | | | | | |
CONSUMER AND BUSINESS BANKING | Preliminary data |
| Three Months Ended |
(Dollars in Millions) (Unaudited) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
AVERAGE BALANCE SHEET | | | | | |
Loans | | | | | |
Commercial | $4,149 | | $3,912 | | $3,872 | | $4,131 | | $4,226 | |
Commercial real estate | 11,912 | | 12,054 | | 12,324 | | 12,577 | | 12,859 | |
Residential mortgages | 101,213 | | 100,801 | | 100,485 | | 100,208 | | 103,835 | |
Credit card | — | | — | | — | | — | | — | |
Other retail | 37,583 | | 38,065 | | 39,148 | | 40,387 | | 46,082 | |
Total loans | 154,857 | | 154,832 | | 155,829 | | 157,303 | | 167,002 | |
Other Earning Assets | 2,278 | | 1,879 | | 2,170 | | 2,688 | | 2,512 | |
Total earning assets | 157,135 | | 156,711 | | 157,999 | | 159,991 | | 169,514 | |
Non-earning Assets | | | | | |
Goodwill | 4,326 | | 4,326 | | 4,327 | | 4,515 | | 4,530 | |
Other intangible assets | 4,734 | | 4,696 | | 4,926 | | 5,154 | | 5,393 | |
Other non-earning assets | 2,439 | | 3,340 | | 4,483 | | 5,071 | | 5,367 | |
Total non-earning assets | 11,499 | | 12,362 | | 13,736 | | 14,740 | | 15,290 | |
Total assets | 168,634 | | 169,073 | | 171,735 | | 174,731 | | 184,804 | |
Deposits | | | | | |
Noninterest-bearing deposits | 20,900 | | 21,375 | | 23,341 | | 25,488 | | 34,120 | |
Interest checking | 72,353 | | 73,021 | | 74,903 | | 78,340 | | 75,467 | |
Savings products | 92,792 | | 90,842 | | 87,776 | | 82,805 | | 79,498 | |
Time deposits | 37,822 | | 35,435 | | 33,763 | | 31,946 | | 25,274 | |
Total deposits | 223,867 | | 220,673 | | 219,783 | | 218,579 | | 214,359 | |
Other Interest-bearing Liabilities | 965 | | 1,118 | | 1,231 | | 1,238 | | 1,229 | |
Other Noninterest-bearing Liabilities | 2,143 | | 2,117 | | 2,288 | | 2,420 | | 2,630 | |
Total liabilities | 226,975 | | 223,908 | | 223,302 | | 222,237 | | 218,218 | |
Total U.S. Bancorp Shareholders' Equity | 14,553 | | 14,844 | | 15,365 | | 15,760 | | 16,386 | |
Noncontrolling Interests | — | | — | | — | | — | | — | |
Total Equity | 14,553 | | 14,844 | | 15,365 | | 15,760 | | 16,386 | |
NET INTEREST SPREADS (%) | | | | | |
Total earning assets | 1.34 | | 1.33 | | 1.33 | | 1.32 | | 1.33 | |
Total assets | 1.00 | | .96 | | .92 | | .90 | | .94 | |
Total deposits | 4.76 | | 4.77 | | 4.91 | | 5.09 | | 5.21 | |
Total liabilities | 4.72 | | 4.73 | | 4.87 | | 5.03 | | 5.15 | |
CREDIT QUALITY | | | | | |
Net Charge-offs | | | | | |
Commercial | $15 | | $14 | | $13 | | $17 | | $9 | |
Commercial real estate | 1 | | 1 | | — | | (1) | | — | |
Residential mortgages | (4) | | — | | (1) | | (3) | | (3) | |
Credit card | — | | — | | — | | — | | — | |
Other retail | 47 | | 53 | | 52 | | 44 | | 27 | |
Total net charge-offs | $59 | | $68 | | $64 | | $57 | | $33 | |
Net Charge-off Ratios | | | | | |
Commercial | 1.45 | % | 1.44 | % | 1.33 | % | 1.63 | % | .85 | % |
Commercial real estate | .03 | | .03 | | — | | (.03) | | — | |
Residential mortgages | (.02) | | — | | — | | (.01) | | (.01) | |
Credit card | — | | — | | — | | — | | — | |
Other retail | .50 | | .56 | | .53 | | .43 | | .24 | |
Total net charge-offs | .15 | % | .18 | % | .16 | % | .14 | % | .08 | % |
| | | | | |
| June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
Nonperforming Assets | | | | | |
Nonperforming loans | $393 | | $380 | | $387 | | $363 | | $392 | |
Other nonperforming assets | 23 | | 25 | | 26 | | 26 | | 25 | |
Total nonperforming assets | $416 | | $405 | | $413 | | $389 | | $417 | |
| | | | | |
| | | | | | | | | | | | | | | | | |
CONSUMER AND BUSINESS BANKING | Preliminary data |
| Three Months Ended |
(Dollars in Millions) (Unaudited) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
OTHER INFORMATION | | | | | |
Other Retail Loan Information | | | | | |
Average Balances | | | | | |
Retail leasing | $4,185 | | $4,082 | | $4,167 | | $4,436 | | $4,829 | |
Home equity and second mortgages | 10,549 | | 10,471 | | 10,421 | | 10,238 | | 10,107 | |
Other | 22,849 | | 23,512 | | 24,560 | | 25,713 | | 31,146 | |
Total other retail | $37,583 | | $38,065 | | $39,148 | | $40,387 | | $46,082 | |
Home equity first lien* | $5,894 | | $6,107 | | $6,332 | | $6,573 | | $6,822 | |
Home equity loans | 2,025 | | 1,913 | | 1,812 | | 1,665 | | 1,503 | |
Home equity lines | 8,524 | | 8,558 | | 8,609 | | 8,573 | | 8,604 | |
Total home equity | $16,443 | | $16,578 | | $16,753 | | $16,811 | | $16,929 | |
Net Charge-off Ratios (%) | | | | | |
Retail leasing | .29 | | .49 | | .19 | | .18 | | .08 | |
Home equity and second mortgages | (.04) | | — | | (.04) | | .08 | | (.04) | |
Other | .79 | | .82 | | .82 | | .62 | | .35 | |
Total other retail | .50 | | .56 | | .53 | | .43 | | .24 | |
Retail Credit Production | | | | | |
Indirect loan/lease production volume | $1,929 | | $1,569 | | $1,072 | | $1,090 | | $1,588 | |
Direct branch loan/line production volume | 1,754 | | 1,382 | | 1,336 | | 1,575 | | 1,570 | |
Other production volume | 522 | | 375 | | 256 | | 308 | | 250 | |
Total retail credit production volume | $4,205 | | $3,326 | | $2,664 | | $2,973 | | $3,408 | |
Branch and ATM Data | | | | | |
# of branches | 2,207 | | 2,256 | | 2,274 | | 2,280 | | 2,304 | |
# of U.S. Bank ATMs | 4,534 | | 4,522 | | 4,524 | | 4,520 | | 4,514 | |
| | | | | |
* Home equity first lien balances are reported within residential mortgages as required by regulatory accounting principles. |
| | | | | | | | | | | | | | | | | |
CONSUMER AND BUSINESS BANKING | Preliminary data |
| Three Months Ended |
(Dollars in Millions) (Unaudited) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
Mortgage Banking Division Data | | | | | |
Mortgage banking revenue | | | | | |
Origination and sales (a) | $80 | | $69 | | $46 | | $70 | | $81 | |
Loan servicing | 176 | | 180 | | 180 | | 176 | | 187 | |
Mortgage servicing rights fair value changes | | | | | |
net of economic hedges (b) | (6) | | (2) | | 4 | | (3) | | (1) | |
Other changes in mortgage servicing rights fair value (c) | (90) | | (81) | | (93) | | (99) | | (106) | |
Total mortgage banking revenue | $160 | | $166 | | $137 | | $144 | | $161 | |
Mortgage production volume | $9,449 | | $7,129 | | $7,405 | | $9,493 | | $11,560 | |
Mortgage application volume | $14,415 | | $12,531 | | $9,535 | | $12,947 | | $15,841 | |
Mortgages serviced for others (d)(e) | $225,780 | | $232,907 | | $233,382 | | $232,263 | | $251,572 | |
A summary of the Company's mortgage servicing rights and related characteristics by portfolio as of June 30, 2024, was as follows: |
(Dollars in Millions) | | HFA (f) | Government | Conventional (g) | Total |
Servicing portfolio (h) | | $50,185 | | $25,762 | | $137,716 | | $213,663 | |
Fair value | | $824 | | $522 | | $1,980 | | $3,326 | |
Value (bps) (i) | | 164 | | 203 | | 144 | | 156 | |
Weighted-average servicing fees (bps) | | 36 | | 45 | | 25 | | 30 | |
Multiple (value/servicing fees) | | 4.60 | | 4.55 | | 5.66 | | 5.16 | |
Weighted-average note rate | | 4.74 | % | 4.31 | % | 3.73 | % | 4.04 | % |
Weighted-average age (in years) | | 4.4 | | 5.8 | | 4.8 | | 4.8 | |
Weighted-average expected prepayment (constant prepayment rate) | 10.1 | % | 10.6 | % | 8.3 | % | 9.0 | % |
Weighted-average expected life (in years) | | 7.3 | | 6.7 | | 7.2 | | 7.2 | |
Weighted-average option adjusted spread (j) | | 5.5 | % | 5.9 | % | 4.6 | % | 5.0 | % |
(a)Origination and sales revenue recorded based on estimated number of applications that will close. (b)Represents the net impact of changes in the fair value of mortgage servicing rights related to assumption changes and the derivatives used to economically hedge the mortgage servicing rights fair value changes. (c)Primarily the change in MSR value from passage of time and cash flows realized (decay), but also includes the impact of changes to expected cash flows not associated with changes in market interest rates, such as the impact of delinquencies. (d)Amounts reported reflect end of period balances. (e)Includes subserviced mortgages with no corresponding mortgage servicing rights asset. (f)Represents Housing Finance Agency division. (g)Represents loans primarily sold to government-sponsored enterprises. (h)Represents principal balance of mortgages having corresponding mortgage servicing rights asset. (i)Calculated as fair value divided by the servicing portfolio. (j)Option adjusted spread is the incremental spread added to the risk-free rate to reflect optionality and other risk inherent in the mortgage servicing rights asset. |
| | | | | | | | | | | | | | | | | |
PAYMENT SERVICES | Preliminary data |
| Three Months Ended |
(Dollars in Millions) (Unaudited) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
INCOME STATEMENT | | | | | |
Net Interest Income (taxable-equivalent basis) | $673 | | $702 | | $676 | | $663 | | $623 | |
Noninterest Income | | | | | |
Card revenue | 425 | | 389 | | 433 | | 408 | | 420 | |
Corporate payment products revenue | 195 | | 184 | | 182 | | 198 | | 190 | |
Merchant processing services | 454 | | 401 | | 409 | | 427 | | 436 | |
Trust and investment management fees | — | | — | | — | | — | | — | |
Service charges | — | | — | | — | | — | | — | |
Commercial products revenue | — | | — | | — | | — | | — | |
Mortgage banking revenue | — | | — | | — | | — | | — | |
Investment products fees | — | | — | | — | | — | | — | |
Securities gains (losses), net | — | | — | | — | | — | | — | |
Other | 20 | | 5 | | 5 | | 6 | | 4 | |
Total noninterest income | 1,094 | | 979 | | 1,029 | | 1,039 | | 1,050 | |
Total net revenue | 1,767 | | 1,681 | | 1,705 | | 1,702 | | 1,673 | |
Noninterest Expense | | | | | |
Compensation and employee benefits | 226 | | 228 | | 218 | | 218 | | 218 | |
Net occupancy and equipment | 9 | | 9 | | 9 | | 9 | | 9 | |
Other intangibles | 23 | | 27 | | 29 | | 29 | | 28 | |
Net shared services | 511 | | 508 | | 514 | | 497 | | 488 | |
Other | 214 | | 226 | | 245 | | 228 | | 198 | |
Total noninterest expense | 983 | | 998 | | 1,015 | | 981 | | 941 | |
Income before provision and income taxes | 784 | | 683 | | 690 | | 721 | | 732 | |
Provision for Credit Losses | 388 | | 359 | | 461 | | 399 | | 314 | |
Income before income taxes | 396 | | 324 | | 229 | | 322 | | 418 | |
Income taxes and taxable-equivalent adjustment | 99 | | 81 | | 57 | | 81 | | 105 | |
Net income | 297 | | 243 | | 172 | | 241 | | 313 | |
Net (income) loss attributable to noncontrolling interests | — | | — | | — | | — | | — | |
Net income attributable to U.S. Bancorp | $297 | | $243 | | $172 | | $241 | | $313 | |
| | | | | |
FINANCIAL RATIOS | | | | | |
Return on average assets | 2.59 | % | 2.09 | % | 1.50 | % | 2.14 | % | 2.85 | % |
Net interest margin (taxable-equivalent basis) | 6.61 | | 7.07 | | 6.70 | | 6.75 | | 6.58 | |
Efficiency ratio | 55.6 | | 59.4 | | 59.5 | | 57.6 | | 56.2 | |
| | | | | | | | | | | | | | | | | |
PAYMENT SERVICES | Preliminary data |
| Three Months Ended |
(Dollars in Millions) (Unaudited) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
AVERAGE BALANCE SHEET | | | | | |
Loans | | | | | |
Commercial | $12,334 | | $11,705 | | $12,121 | | $11,899 | | $11,691 | |
Commercial real estate | — | | — | | — | | — | | — | |
Residential mortgages | — | | — | | — | | — | | — | |
Credit card | 28,349 | | 27,942 | | 27,753 | | 26,883 | | 26,046 | |
Other retail | 149 | | 156 | | 165 | | 172 | | 176 | |
Total loans | 40,832 | | 39,803 | | 40,039 | | 38,954 | | 37,913 | |
Other Earning Assets | 115 | | 153 | | 10 | | 5 | | 74 | |
Total earning assets | 40,947 | | 39,956 | | 40,049 | | 38,959 | | 37,987 | |
Non-earning Assets | | | | | |
Goodwill | 3,327 | | 3,331 | | 3,326 | | 3,333 | | 3,331 | |
Other intangible assets | 281 | | 300 | | 319 | | 340 | | 359 | |
Other non-earning assets | 1,544 | | 3,229 | | 1,679 | | 2,142 | | 2,449 | |
Total non-earning assets | 5,152 | | 6,860 | | 5,324 | | 5,815 | | 6,139 | |
Total assets | 46,099 | | 46,816 | | 45,373 | | 44,774 | | 44,126 | |
Deposits | | | | | |
Noninterest-bearing deposits | 2,706 | | 2,791 | | 2,772 | | 2,796 | | 3,179 | |
Interest checking | — | | — | | — | | — | | — | |
Savings products | 96 | | 96 | | 98 | | 100 | | 103 | |
Time deposits | 1 | | 1 | | 1 | | 1 | | 1 | |
Total deposits | 2,803 | | 2,888 | | 2,871 | | 2,897 | | 3,283 | |
Other Interest-bearing Liabilities | 342 | | 304 | | 253 | | 308 | | 457 | |
Other Noninterest-bearing Liabilities | 4,712 | | 6,275 | | 4,674 | | 4,973 | | 5,300 | |
Total liabilities | 7,857 | | 9,467 | | 7,798 | | 8,178 | | 9,040 | |
Total U.S. Bancorp Shareholders' Equity | 9,941 | | 9,965 | | 9,695 | | 9,442 | | 9,127 | |
Noncontrolling Interests | — | | — | | — | | — | | — | |
Total Equity | 9,941 | | 9,965 | | 9,695 | | 9,442 | | 9,127 | |
NET INTEREST SPREADS (%) | | | | | |
Total earning assets | 6.00 | | 6.46 | | 6.11 | | 6.16 | | 5.97 | |
Total assets | 4.75 | | 4.73 | | 4.80 | | 4.72 | | 4.49 | |
Total deposits | 6.03 | | 5.99 | | 5.94 | | 5.89 | | 5.74 | |
Total liabilities | 5.17 | | 5.31 | | 5.39 | | 5.29 | | 4.84 | |
CREDIT QUALITY | | | | | |
Net Charge-offs | | | | | |
Commercial | $57 | | $51 | | $44 | | $37 | | $35 | |
Commercial real estate | — | | — | | — | | — | | — | |
Residential mortgages | — | | — | | — | | — | | — | |
Credit card | 315 | | 296 | | 255 | | 220 | | 199 | |
Other retail | 1 | | 1 | | 1 | | 1 | | 1 | |
Total net charge-offs | $373 | | $348 | | $300 | | $258 | | $235 | |
Net Charge-off Ratios | | | | | |
Commercial | 1.86 | % | 1.75 | % | 1.44 | % | 1.23 | % | 1.20 | % |
Commercial real estate | — | | — | | — | | — | | — | |
Residential mortgages | — | | — | | — | | — | | — | |
Credit card | 4.47 | | 4.26 | | 3.65 | | 3.25 | | 3.06 | |
Other retail | 2.70 | | 2.58 | | 2.40 | | 2.31 | | 2.28 | |
Total net charge-offs | 3.67 | % | 3.52 | % | 2.97 | % | 2.63 | % | 2.49 | % |
| | | | | |
| | | | | |
| June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
Nonperforming Assets | | | | | |
Nonperforming loans | $— | | $— | | $— | | $— | | $— | |
Other nonperforming assets | — | | — | | — | | — | | — | |
Total nonperforming assets | $— | | $— | | $— | | $— | | $— | |
| | | | | |
| | | | | | | | | | | | | | | | | |
PAYMENT SERVICES | Preliminary data |
| Three Months Ended |
(Dollars in Millions) (Unaudited) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
OTHER INFORMATION | | | | | |
Total Noninterest Income | | | | | |
Retail payment solutions | $442 | | $390 | | $436 | | $410 | | $422 | |
Corporate payment systems | 198 | | 187 | | 184 | | 201 | | 192 | |
Global merchant acquiring | 454 | | 402 | | 409 | | 428 | | 436 | |
Total | $1,094 | | $979 | | $1,029 | | $1,039 | | $1,050 | |
Payment Volumes | | | | | |
Retail payment solutions (Issuing) | | | | | |
Credit card | $36,504 | | $33,683 | | $35,604 | | $34,526 | | $34,924 | |
Debit and prepaid card | 26,766 | | 25,262 | | 26,169 | | 25,795 | | 26,119 | |
Total retail payment solutions | $63,270 | | $58,945 | | $61,773 | | $60,321 | | $61,043 | |
| | | | | |
Corporate payment systems (issuing) | $22,391 | | $21,477 | | $21,012 | | $22,925 | | $22,126 | |
| | | | | |
Merchant volume (acquiring) | $147,809 | | $137,552 | | $135,727 | | $144,558 | | $145,376 | |
# of merchant transactions | 2,136,671,083 | | 1,930,302,342 | | 2,002,532,119 | | 2,094,366,023 | | 2,040,006,881 | |
| | | | | | | | | | | | | | | | | |
TREASURY AND CORPORATE SUPPORT | Preliminary data |
| Three Months Ended |
(Dollars in Millions) (Unaudited) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
INCOME STATEMENT | | | | | |
Net Interest Income (taxable-equivalent basis) | ($449) | | ($470) | | ($465) | | ($465) | | ($363) | |
Noninterest Income | | | | | |
Card revenue | — | | — | | — | | — | | — | |
Corporate payment products revenue | — | | — | | — | | — | | — | |
Merchant processing services | — | | — | | — | | — | | — | |
Trust and investment management fees | — | | — | | — | | — | | — | |
Service charges | 2 | | 2 | | 2 | | 2 | | 2 | |
Commercial products revenue | 168 | | 174 | | 172 | | 199 | | 153 | |
Mortgage banking revenue | 30 | | — | | — | | — | | (30) | |
Investment products fees | — | | — | | — | | — | | — | |
Securities gains (losses), net | (36) | | 2 | | (116) | | — | | 3 | |
Other | 13 | | 7 | | 102 | | 60 | | 46 | |
Total noninterest income | 177 | | 185 | | 160 | | 261 | | 174 | |
Total net revenue | (272) | | (285) | | (305) | | (204) | | (189) | |
Noninterest Expense | | | | | |
Compensation and employee benefits | 1,274 | | 1,337 | | 1,204 | | 1,277 | | 1,296 | |
Net occupancy and equipment | 114 | | 101 | | 117 | | 114 | | 115 | |
Other intangibles | — | | — | | — | | — | | — | |
Net shared services | (1,724) | | (1,698) | | (1,743) | | (1,686) | | (1,825) | |
Other | 571 | | 747 | | 1,587 | | 852 | | 898 | |
Total noninterest expense | 235 | | 487 | | 1,165 | | 557 | | 484 | |
Income (loss) before provision and income taxes | (507) | | (772) | | (1,470) | | (761) | | (673) | |
Provision for Credit Losses | 50 | | (1) | | (66) | | (27) | | 329 | |
Income (loss) before income taxes | (557) | | (771) | | (1,404) | | (734) | | (1,002) | |
Income taxes and taxable-equivalent adjustment | (187) | | (242) | | (439) | | (218) | | (282) | |
Net income (loss) | (370) | | (529) | | (965) | | (516) | | (720) | |
Net (income) loss attributable to noncontrolling interests | (8) | | (7) | | (14) | | (1) | | (8) | |
Net income (loss) attributable to U.S. Bancorp | ($378) | | ($536) | | ($979) | | ($517) | | ($728) | |
| | | | | |
FINANCIAL RATIOS (%) | | | | | |
Return on average assets | nm | nm | nm | nm | nm |
Net interest margin (taxable-equivalent basis) | nm | nm | nm | nm | nm |
Efficiency ratio | nm | nm | nm | nm | nm |
| | | | | | | | | | | | | | | | | |
TREASURY AND CORPORATE SUPPORT | Preliminary data |
| Three Months Ended |
(Dollars in Millions) (Unaudited) | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
AVERAGE BALANCE SHEET | | | | | |
Loans | | | | | |
Commercial | $2,207 | | $2,191 | | $1,802 | | $1,495 | | $1,288 | |
Commercial real estate | 2,905 | | 2,979 | | 3,144 | | 3,199 | | 3,557 | |
Residential mortgages | 131 | | 135 | | 140 | | 145 | | 151 | |
Credit card | — | | — | | — | | — | | — | |
Other retail | 58 | | 62 | | 63 | | 137 | | 157 | |
Total loans | 5,301 | | 5,367 | | 5,149 | | 4,976 | | 5,153 | |
Other Earning Assets | 222,224 | | 214,295 | | 211,921 | | 219,217 | | 215,765 | |
Total earning assets | 227,525 | | 219,662 | | 217,070 | | 224,193 | | 220,918 | |
Non-earning Assets | | | | | |
Goodwill | — | | — | | — | | — | | — | |
Other intangible assets | 9 | | 10 | | 10 | | 10 | | 10 | |
Other non-earning assets | 20,036 | | 19,156 | | 16,826 | | 16,437 | | 17,985 | |
Total non-earning assets | 20,045 | | 19,166 | | 16,836 | | 16,447 | | 17,995 | |
Total assets | 247,570 | | 238,828 | | 233,906 | | 240,640 | | 238,913 | |
Deposits | | | | | |
Noninterest-bearing deposits | 2,513 | | 2,041 | | 2,264 | | 3,096 | | 2,947 | |
Interest checking | 1,418 | | 1,207 | | 1,328 | | 1,329 | | 1,818 | |
Savings products | 2,109 | | 2,103 | | 1,197 | | 1,180 | | 1,077 | |
Time deposits | 7,607 | | 7,728 | | 6,892 | | 9,345 | | 4,936 | |
Total deposits | 13,647 | | 13,079 | | 11,681 | | 14,950 | | 10,778 | |
Other Interest-bearing Liabilities | 52,905 | | 52,496 | | 52,187 | | 56,988 | | 81,904 | |
Other Noninterest-bearing Liabilities | 7,527 | | 7,188 | | 7,448 | | 5,779 | | 4,793 | |
Total liabilities | 74,079 | | 72,763 | | 71,316 | | 77,717 | | 97,475 | |
Total U.S. Bancorp Shareholders' Equity | 10,054 | | 9,101 | | 6,547 | | 5,778 | | 5,950 | |
Noncontrolling Interests | 463 | | 464 | | 465 | | 466 | | 465 | |
Total Equity | 10,517 | | 9,565 | | 7,012 | | 6,244 | | 6,415 | |
NET INTEREST SPREADS (%) | | | | | |
Total earning assets | nm | nm | nm | nm | nm |
Total assets | nm | nm | nm | nm | nm |
Total deposits | nm | nm | nm | nm | nm |
Total liabilities | nm | nm | nm | nm | nm |
CREDIT QUALITY | | | | | |
Net Charge-offs | | | | | |
Commercial | ($1) | $— | $— | ($4) | $11 |
Commercial real estate | — | | 7 | | — | | 1 | | 14 | |
Residential mortgages | — | | — | | — | | — | | 117 | |
Credit card | — | | — | | — | | — | | — | |
Other retail | — | | — | | — | | 16 | | 192 | |
Total net charge-offs | ($1) | | $7 | | $— | | $13 | | $334 | |
Net Charge-off Ratios (%) | | | | | |
Commercial | nm | nm | nm | nm | nm |
Commercial real estate | nm | nm | nm | nm | nm |
Residential mortgages | nm | nm | nm | nm | nm |
Credit card | nm | nm | nm | nm | nm |
Other retail | nm | nm | nm | nm | nm |
Total net charge-offs | nm | nm | nm | nm | nm |
| | | | | |
| | | | | |
| June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 |
Nonperforming Assets | | | | | |
Nonperforming loans | $64 | $69 | $125 | $74 | $45 |
Other nonperforming assets | 18 | | 19 | | 18 | | 16 | | 19 | |
Total nonperforming assets | $82 | | $88 | | $143 | | $90 | | $64 | |
U.S. Bank | Confidential 1 U.S. Bancorp 2Q24 Earnings Conference Call July 17, 2024
U.S. Bancorp 2 Forward-looking Statements and Additional Information The following information appears in accordance with the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward-looking statements cover, among other things, future economic conditions and the anticipated future revenue, expenses, financial condition, asset quality, capital and liquidity levels, plans, prospects and operations of U.S. Bancorp. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “projects,” “forecasts,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those set forth in forward-looking statements, including the following risks and uncertainties: deterioration in general business and economic conditions or turbulence in domestic or global financial markets, which could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price volatility; turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions, which could affect the ability of depository institutions, including U.S. Bank National Association, to attract and retain depositors, and could affect the ability of financial services providers, including U.S. Bancorp, to borrow or raise capital; increases in Federal Deposit Insurance Corporation (FDIC) assessments due to bank failures; actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions; uncertainty regarding the content, timing, and impact of changes to regulatory capital, liquidity and resolution-related requirements applicable to large banking organizations in response to adverse developments affecting the banking sector; changes to statutes, regulations, or regulatory policies or practices, including capital and liquidity requirements, and the enforcement and interpretation of such laws and regulations, and U.S. Bancorp’s ability to address or satisfy those requirements and other requirements or conditions imposed by regulatory entities; changes in interest rates; increases in unemployment rates; deterioration in the credit quality of U.S. Bancorp’s loan portfolios or in the value of the collateral securing those loans; changes in commercial real estate occupancy rates; risks related to originating and selling mortgages, including repurchase and indemnity demands, and related to U.S. Bancorp’s role as a loan servicer; impacts of current, pending or future litigation and governmental proceedings; increased competition from both banks and non-banks; effects of climate change and related physical and transition risks; changes in customer behavior and preferences and the ability to implement technological changes to respond to customer needs and meet competitive demands; breaches in data security; failures or disruptions in or breaches of U.S. Bancorp’s operational, technology or security systems or infrastructure, or those of third parties, including as a result of cybersecurity incidents; failures to safeguard personal information; impacts of pandemics, natural disasters, terrorist activities, civil unrest, international hostilities and geopolitical events; impacts of supply chain disruptions, rising inflation, slower growth or a recession; failure to execute on strategic or operational plans; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; effects of changes in or interpretations of tax laws and regulations; management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk; and the risks and uncertainties more fully discussed in the section entitled “Risk Factors” of U.S. Bancorp’s Form 10-K for the year ended December 31, 2023, and subsequent filings with the Securities and Exchange Commission. In addition, factors other than these risks also could adversely affect U.S. Bancorp’s results, and the reader should not consider these risks to be a complete set of all potential risks or uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date hereof, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events. This presentation includes non-GAAP financial measures to describe U.S. Bancorp’s performance. The calculations of these measures are provided in the Appendix. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
U.S. Bancorp 3 2Q24 Highlights ▪ Solid financial performance › Highly diversified and sustainable fee revenue streams; Over 40% of total net revenue ▪ Effective balance sheet management › Earning asset portfolio positioning and repricing; Stable funding costs ▪ Prudent expense management › Operational efficiencies and expense discipline support full- year expense targets ▪ Strong capital accretion › Driven by enhanced earnings generation; Continued emphasis on capital-efficient growth ▪ Disciplined credit risk management › Asset quality metrics stabilizing; Trends reflective of broader macroeconomic and credit environment $0.97 | $0.98 10.3% + 30 bps vs. 1Q24 +5.4% Reported Adjusted 1 Earnings per share CET1 Ratio2 Total Net Revenue Return on Tangible Common Equity Noninterest Income Growth (2024 YTD YoY) 1 Non-GAAP; see appendix for calculations and description of notable items 2 Common equity tier 1 capital to risk-weighted assets, reflecting Basel III standardized with 5 year current expected credit losses (CECL) transition $6.9B 18.4% | 18.6% Reported 1 Adjusted 1
U.S. Bancorp 4 2Q24 Results Summary Income Statement Balance Sheet Capital 1 Non-GAAP; see slide 9 and the appendix for calculations and description of notable items 2 Taxable-equivalent basis; see appendix for calculation 3 Common equity tier 1 capital to risk-weighted assets, reflecting Basel III standardized with 5 year CECL transition 4 Earnings returned (millions) = total common dividends paid and aggregate value of common shares repurchased inclusive of treasury shares repurchased in connection with stock compensation plans Adjusted Reported Adjusted1 change vs. $ in millions, except EPS 2Q24 2Q24 1Q24 2Q23 Net interest income2 $4,052 $4,052 0.9 % (8.9) % Noninterest income 2,815 2,815 4.3 2.4 Noninterest expense 4,214 4,188 (0.1) (1.7) Net income to Company 1,603 1,622 6.9 (9.5) Diluted EPS $0.97 $0.98 8.9 (12.5) Change vs. $ in millions 2Q24 1Q24 2Q23 Nonperforming assets $1,852 3.7 % 70.7 % NPA ratio 0.49 % 1 bps 20 bps Net charge-off ratio 0.58 % 5 bps 23 bps 90+ Day Delinquency 0.19 % 0 bps 7 bps Ending balance Avg balance Average Period Balance change vs. $ in billions 2Q24 2Q24 1Q24 2Q23 Total assets $680.1 $665.5 1.8 % (1.1) % Earning assets 619.3 608.9 2.1 (0.8) Total loans 376.1 374.7 1.0 (3.6) Total deposits 523.8 513.9 2.2 3.3 Change vs. 2Q24 1Q24 2Q23 CET1 capital ratio3 10.3 % 30 bps 120 bps Total risk-based capital ratio 14.0 % 30 bps 130 bps Book value per share $31.80 1.7 % 5.5 % Tangible book value per share1 $23.15 2.8 % 10.1 % Earnings returned (millions)4 $770 1 1 1 Credit Quality
U.S. Bancorp 5 Performance Ratios 1 Non-GAAP; see appendix for calculations and description of notable items 2 Net interest margin on a taxable-equivalent basis 1.07% 0.93% 0.98% 0.81% 0.81% 0.97% Return on Average Assets Adjusted for notable items 2Q23 1Q24 2Q24 14.6% 11.6% 12.6% 10.9% 10.0% 12.4% Return on Average Common Equity Adjusted for notable items 2Q23 1Q24 2Q24 22.3% 17.4% 18.6% 17.1% 15.1% 18.4% Return on Tangible Common Equity Adjusted for notable items 2Q23 1Q24 2Q24 63.7% 66.4% 61.0% 59.2% 62.5% 60.7% 2.90% 2.70% 2.67% Adjusted Efficiency Ratio Efficiency Ratio Net Interest Margin 2Q23 1Q24 2Q24 Return on Average Assets Return on Average Common Equity Return on Tangible Common Equity1 Efficiency Ratio1 & Net Interest Margin 2 1 1 1 1 1 1 1 1 1 1 1 1 2
U.S. Bancorp 6 Sustainable Earnings Power Diversified fee income businesses support our short- and long-term growth objectives Fee income represents 41% of U.S. Bancorp total net revenue1 1 YTD taxable-equivalent basis 2 Business line revenue percentages exclude Treasury and Corporate Support; see appendix for reconciliation As a % of Total Net Revenue1,2 Fee NII Payment Services fee revenue Breadth of capabilities, diversified distribution model, proprietary technology platform, payments ecosystem Mortgage fee revenue Leading digital mortgage platform and lending tools; Gaining share as we optimize our distribution channels Trust & Investment Management revenue Leading market position with sizable distribution, balance sheet, and product advantages Fee revenue differentiators with national reach 33% 43% 24% 37% 18% 60% 63% 82% 40% WCIB CBB Payments Payment Services Consumer & Business Banking (CBB) Wealth, Corporate, Commercial & Institutional Banking (WCIB)
U.S. Bancorp 7 $497 $512 $503 $503 $514 12.3% 14.3% 7.1% 6.4% 1.6% 39.4% 45.8% 48.6% 51.0% 52.1% Noninterest-Bearing (NIB) Interest-Bearing Chg in NIB balance (QoQ) Total Deposit Beta 2Q23 3Q23 4Q23 1Q24 2Q24 Balance Sheet Summary Effective balance sheet management and stabilizing deposit trends Total Average Deposits Highlights Total Average Loans $389 $377 $373 $371 $375 5.79% 6.02% 6.13% 6.20% 6.19% Average Balance Avg Yield % 2Q23 3Q23 4Q23 1Q24 2Q24 Investment Portfolio End of Period Balances $ in billions 1 Cumulative deposit beta cycle to date measured from 4Q21 2 Balances exclude unrealized gains (losses) ▪ Core deposit levels remain stable; Total noninterest bearing mix shift continues to slow. ▪ Meaningful year-over-year improvement in both the loan book and Investment Portfolio yield (40 bps increase each). ▪ Linked quarter Investment Portfolio yield increase driven by cash balance positioning and reinvestment of qtrly runoff. $164 $162 $161 $162 $168 2.75% 2.87% 2.97% 2.96% 3.15% Ending Balance Avg Yield % 2Q23 3Q23 4Q23 1Q24 2Q24 ( 2 ) ( ) ( ) ( ) ( ) 1
U.S. Bancorp 8 Amount ($B) Reserve (%) Commercial $2.2 1.6% Commercial Real Estate 1.6 3.1% Residential Mortgage 0.8 0.7% Credit Card 2.5 8.7% Other Retail 0.8 1.9% Total $7.9 2.1% Change vs. 2Q24 1Q24 2Q23 Non-performing Assets Balance $1,852 $66 $767 NPAs/Period-end Loans plus OREO 0.49 % 1 bps 20 bps Ne Net Charge-offs NCOs $538 $50 $198 NCOs/Avg Loans 0.58 % 5 bps 23 bps Core Provision for Credit Losses Trending $ in millions, unless specified 1 Non-GAAP; see appendix for calculations and description of notable items Credit Quality Trends reflect stabilization in the broader macroeconomic and credit environment amidst continued CRE stress Net Charge-off and Nonperforming Assets Highlights Allowance for Credit Losses by Loan Category, 2Q24 ▪ Delinquency rates flat linked quarter driven by stable underlying macro conditions. ▪ CRE Office reserve coverage remains at over 10%. ▪ Proactively managed credit risk across the portfolio. 1 1 $340 $420 $463 $488 $538 $238 $95 $49 $65 $30 NCOs Reserve Build Allowance for Credit Losses/ Period-end Loans 2Q23 3Q23 4Q23 1Q24 2Q24 1 1 $568$578 1 $515 $512 $553 1 2.03% 2.08% 2.10% 2.11% 2.11%
U.S. Bancorp 9 Excluding Notable Items2 Reported % Change Notable Items2 % Change $ in millions, except EPS 2Q24 1Q24 2Q23 vs 1Q24 vs 2Q23 2Q24 1Q24 2Q23 vs 1Q24 vs 2Q23 Net Interest Income $4,023 $3,985 $4,415 1.0 % (8.9) % $— $— $— 1.0 % (8.9) % Taxable-equivalent Adjustment 29 30 34 (3.3) (14.7) — — — (3.3) (14.7) Net Interest Income (taxable-equivalent basis) 4,052 4,015 4,449 0.9 (8.9) — — — 0.9 (8.9) Noninterest Income 2,815 2,700 2,726 4.3 3.3 — — (22) 4.3 2.4 Net Revenue 6,867 6,715 7,175 2.3 (4.3) — — (22) 2.3 (4.6) Noninterest Expense 4,214 4,459 4,569 (5.5) (7.8) 26 265 310 (0.1) (1.7) Operating Income 2,653 2,256 2,606 17.6 1.8 (26) (265) (332) 6.3 (8.8) Provision for credit losses 568 553 821 2.7 (30.8) — — 243 2.7 (1.7) Income Before Taxes 2,085 1,703 1,785 22.4 16.8 (26) (265) (575) 7.3 (10.6) Applicable Income Taxes 474 377 416 25.7 13.9 (7) (66) (143) 8.6 (14.0) Net Income 1,611 1,326 1,369 21.5 17.7 (19) (199) (432) 6.9 (9.5) Noncontrolling Interests (8) (7) (8) (14.3) — — — — (14.3) — Net Income to Company 1,603 1,319 1,361 21.5 17.8 (19) (199) (432) 6.9 (9.5) Preferred Dividends/Other 85 110 80 (22.7) 6.3 — (1) (3) (23.4) 2.4 Net Income to Common $1,518 $1,209 $1,281 25.6 % 18.5 % ($19) ($198) ($429) 9.2 % (10.1) % Net Interest Margin1 2.67% 2.70% 2.90% (3) bps (23) bps —% —% —% (3) bps (23) bps Efficiency Ratio2 61.0% 66.4% 63.7% (538) bps (266) bps .3% 3.9% 4.5% (181) bps 147 bps Diluted EPS $.97 $.78 $.84 24.4 % 15.5 % $(.01) $(.12) $(.28) 8.9 % (12.5) % 1 Taxable-equivalent basis 2 Non-GAAP; see appendix for calculations and description of notable items 2Q24 Earnings Summary – Detail
U.S. Bancorp 10 ▪ Year-over-year performance impacted by deposit mix and pricing, partially offset by higher rates on earning assets. ▪ Linked quarter increase in net interest income due to deposit growth, earning asset repricing and mix, and stable funding costs. $ in millions 1 Non-GAAP; see appendix for calculations 2Q24 1Q24 2Q23 Loans $5,761 $5,712 $5,605 Loans held for sale 41 37 38 Investment securities 1,294 1,175 1,077 Other interest income 889 840 806 Total interest income $7,985 $7,764 $7,526 Deposits $3,028 $2,884 $1,939 Short-term borrowings 296 270 740 Long-term debt 638 625 432 Total interest expense $3,962 $3,779 $3,111 Net interest income $4,023 $3,985 $4,415 Taxable-equivalent adjustment 29 30 34 Net interest income, on a taxable-equivalent basis1 $4,052 $4,015 $4,449 Net interest margin (taxable-equivalent basis) 2.67 % 2.70 % 2.90 % Net Interest Income (taxable-equivalent basis)1 +0.9% Linked Quarter -8.9% Year-Over-Year Net Interest Income
U.S. Bancorp 11 ▪ Year-over-year increase in noninterest income driven by higher fee revenue across most categories, partially offset by lower other revenue. ▪ On a linked quarter basis, noninterest income increased primarily due to seasonally higher payment services revenue, mortgage banking revenue and other fees, partially offset by lower commercial products revenue and other revenue. $ in millions Payments = card, corporate payment products and merchant processing Other = investment products fees, securities gains (losses) and other 1 Non-GAAP; see slide 9 and the appendix for calculations and description of notable items 2Q24 1Q24 2Q23 Payments $1,077 $977 $1,048 Trust & Inv Mgmt 649 641 621 Service Charges 322 315 324 Commercial Products 374 388 358 Mortgage 190 166 161 Other 203 213 236 Noninterest Income, Adjusted1 $2,815 $2,700 $2,748 Notable Items1 — — (22) Noninterest Income, Reported $2,815 $2,700 $2,726 Noninterest Income Reported +4.3% Linked Quarter +3.3% Year-Over-Year Excluding Notable Items1 +4.3% Linked Quarter +2.4% Year-Over-Year
U.S. Bancorp 12 ▪ Year-over-year, adjusted noninterest expense decreased due to ongoing expense management, a focus on operational efficiencies, and synergies from the Union Bank acquisition, partially offset by higher marketing and business development expense. ▪ On a linked quarter basis, adjusted noninterest expense decreased due to lower compensation and employee benefits expense, partially offset by higher net occupancy, equipment, marketing and business development expenses. $ in millions 1 Non-GAAP; see slide 9 and the appendix for calculations and description of notable items 2Q24 1Q24 2Q23 Compensation & Benefits $2,619 $2,691 $2,646 Technology & Communications 509 507 522 Occupancy & Equipment 316 296 316 Professional Services 116 110 141 Marketing/Business Development 158 136 122 All Other 470 454 512 Total Noninterest Expense, Adjusted1 $4,188 $4,194 $4,259 Notable Items1 26 265 310 Total Noninterest Expense, Reported $4,214 $4,459 $4,569 Noninterest Expense Reported -5.5% Linked Quarter -7.8% Year-Over-Year Excluding Notable Items1 -0.1% Linked Quarter -1.7% Year-Over-Year
U.S. Bancorp 13 Capital Accretion 9.1% 9.7% 9.9% 10.0% 10.3% 2Q23 3Q23 4Q23 1Q24 2Q24 Ratios calculated in accordance with transitional regulatory requirements related to the current expected credit losses methodology 2nd Quarter Highlights • Strong CET1 capital accretion of ~30bps, net of distributions, reflective of our diversified business mix and enhanced earnings profile with Union Bank. • 2024 CCAR results largely impacted by Fed assumption of “industry-wide” declines in noninterest income and higher provision expense; Preliminary stress capital buffer increased to 3.1 percent. • Planned capital actions included a 2% increase to our quarterly common dividend in the fourth quarter subject to Board approval. 7.6% CET1 Ratio Regulatory Minimum Binding Capital Constraint 120 basis points of CET1 capital accretion since 2Q23
U.S. Bancorp 141 Taxable-equivalent basis 2 Non-GAAP; see appendix for calculations and descriptions of notable items 3Q 2024 Guidance Mid-single digit growth vs. FY 2023 of ~$10.8B Net interest income1 FY 2024 Guidance Net interest income1 Total noninterest expense, as adjusted2 Total noninterest income, as adjusted2 $16.8B or less $16.1B to $16.4B Guidance – 3Q and FY 2024 Relatively stable vs. Q2 2024 of $4,052M
U.S. Bancorp 15 Interconnectedness will drive our growth Core Differentiators Key Priorities Building on a strong foundation that will chart our path forward Deepen relationships Enhance experiences National franchise Strategic partnerships Digital enablement Innovative connections Diversified business mix Total Fee Revenue > 40% Risk management discipline Proven TTC underwriting capabilities Industry-leading returns Adj. 5-year avg ROTCE >18% 2 1 TTC: through the cycle 2 Data as of 12/31/23 and covers years 2019 through 2023; ROTCE: Return on Tangible Common Equity; Non-GAAP; see appendix for calculation and description of notable items 1
U.S. Bancorp 16 Appendix
U.S. Bancorp 17 $388.8 $371.1 $374.7 2Q 2023 1Q 2024 2Q 2024 Average Loans +1.0% linked quarter -3.6% year-over-year $ in billions ▪ On a year-over-year basis, average total loans decline was driven by lower commercial, commercial real estate, and other retail loans, partially offset by higher credit card loans. ▪ On a linked quarter basis, average total loans increase was driven by higher commercial loans and credit card loans, partially offset by lower total commercial real estate loans and other retail loans. Average % of Average Change vs. 2Q 2024 Balance Total 1Q24 2Q23 Commercial $134 36% 2.7 % (2.7) % Commercial Real Estate 52 14% (1.4) (4.8) Residential Mortgages 117 31% 0.7 (1.0) Credit Card 29 8% 1.5 8.8 Other Retail 43 11% (1.0) (17.1) Total Loans $375 1.0 % (3.6) %
U.S. Bancorp 18 Average Deposits +2.2% linked quarter +3.3% year-over-year $ in billions ▪ On a year-over-year basis, average total deposits increase was driven by higher interest-bearing deposits, that were partially offset by a decline in noninterest-bearing deposits. ▪ On a linked quarter basis, average total deposits grew primarily from growth in interest-bearing deposits that was partially offset by a decline in noninterest-bearing deposits. Noninterest-bearing Interest-bearing 2Q23 1Q24 2Q24 Average Average Change vs. 2Q 2024 Balance 1Q24 2Q23 Noninterest-bearing deposits $83 (1.6) % (26.7) % Money market savings 208 6.0 36.3 Interest checking 126 0.6 (1.8) Savings accounts 39 (6.7) (34.1) Time deposits 58 4.4 31.9 Total interest-bearing deposits $431 2.9 % 12.3 % Total Deposits $514 2.2 % 3.3 % $513.9$503.1$497.3
U.S. Bancorp 19 $ in billions 2Q24 1Q24 4Q23 3Q23 2Q23 Total U.S. Bancorp shareholders’ equity $56.4 $55.6 $55.3 $53.1 $53.0 Basel III Standardized Approach 1 Common equity tier 1 capital ratio 10.3 % 10.0 % 9.9 % 9.7 % 9.1 % Tier 1 capital ratio 11.9 % 11.6 % 11.5 % 11.2 % 10.6 % Total risk-based capital ratio 14.0 % 13.7 % 13.7 % 13.4 % 12.7 % Leverage ratio 8.1 % 8.1 % 8.1 % 7.9 % 7.5 % Tangible common equity to tangible assets 2 5.4 % 5.2 % 5.3 % 5.0 % 4.8 % Tangible common equity to risk-weighted assets 2 8.0 % 7.8 % 7.7 % 7.0 % 6.8 % Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology 2 10.2 % 9.9 % 9.7 % 9.5 % 8.9 % 1 Ratios calculated in accordance with transitional regulatory requirements related to the CECL methodology 2 Non-GAAP; see appendix for calculations Capital Position
U.S. Bancorp 20 • Total credit card fee revenue (credit/debit/prepaid) improved 1.4% YoY, driven by 4.3% credit fee growth. • Merchant processing fee revenue improved 4.1% YoY primarily due to sales growth. • Corporate payments fee revenue improved 2.6% YoY with improvement in corporate freight spending. Segment 1Q 2Q 3Q 4Q Card1 stable Corporate Payments stable Merchant Processing Merchant Processing Corporate PaymentsTotal Card Payment Fees as a % of Total Net Revenue (2Q24) Highlights Historical Linked Quarter Seasonality for Payment Fees Revenue2 Tech-led3 Merchant Processing Fee Revenue Growth Multiyear investments in e-commerce and tech-led are expected to continue to drive growth – increasing to 33% of merchant processing revenue and growing 10% YoY â â â á á á á á á â +1.4% Year-Over-Year +4.1% Year-Over-Year +2.6% Year-Over-Year 1 1 Includes Prepaid Card 2 Linked quarter change based on trends from 2015 – 2019 3 Tech-led includes digital, omni-commerce and e-commerce as well as investments in integrated software providers Payment Services +4.3% Credit only Fee Revenue Growth Rates 6.6% 6.2% 2.9%84.3% 10% 89% 2Q24 vs 2Q23 2Q24 vs 2Q19
U.S. Bancorp 21 $138,085 $134,720 $131,096 $130,767 $134,339 0.26 % 0.27 % 0.26 % 0.36 % 0.43 % Average Loans Reported NCO% 2Q23 3Q23 4Q23 1Q24 2Q24 Credit Quality – Commercial Key StatisticsAverage Loans ($M) and Net Charge-offs Ratio 1.8% (2.4)% (2.7)% (0.3)% 2.7% Linked Quarter Growth Key Points ▪ Average loans increased by 2.7% on a linked quarter basis ▪ Utilization increased quarter over quarter to 25.2% at 2Q24 versus 24.5% at 1Q24 ▪ Non-performing loans ratio remained relatively flat quarter-over-quarter $ in millions 2Q23 1Q24 2Q24 Average Loans $138,085 $130,767 $134,339 30-89 Delinquencies 0.25 % 0.23 % 0.21 % 90+ Delinquencies 0.04 % 0.08 % 0.06 % Non-performing Loans 0.17 % 0.41 % 0.41 % Revolving Line Utilization Trend 4Q 15 2Q 16 4Q 16 2Q 17 4Q 17 2Q 18 4Q 18 2Q 19 4Q 19 2Q 20 4Q 20 2Q 21 4Q 21 2Q 22 4Q 22 2Q 23 4Q 23 2Q 24 15% 20% 25% 30% 35%
U.S. Bancorp 22 Credit Quality – Commercial Real Estate Key Points Average Loans ($M) and Net Charge-offs Ratio Key Statistics Linked Quarter Growth (1.2)% (1.2)% (0.8)% (1.5)% (1.4)% ▪ Average loans decreased by 1.4% on a linked quarter basis ▪ Non-performing loans ratio increased 14bps, primarily driven by Office 1 SFR = Single Family Residential $54,934 $54,253 $53,825 $53,037 $52,289 0.19 % 0.36 % 0.52 % 0.16 % 0.28 % Average Loans Reported NCO% 2Q23 3Q23 4Q23 1Q24 2Q24 CRE by Loan Type Mortgage 58% Owner Occupied 20% Construction 22% CRE by Property Class SFR Construction 8% Owner Occupied 20% Multi-Family 34% Office 13% Industrial 11% Other 14% $ in millions 2Q23 1Q24 2Q24 Average Loans $54,934 $53,037 $52,289 30-89 Delinquencies 0.13 % 0.04 % 0.04 % 90+ Delinquencies — % — % 0.02 % Non-performing Loans 0.87 % 1.71 % 1.85 % 1
U.S. Bancorp 23 Credit Quality – Residential Mortgage Key Points ▪ Average loans increased slightly on a linked quarter basis ▪ Continued low losses and non-performing loans were supported by strong portfolio credit quality and collateral values ▪ Originations continued to reflect high credit quality (weighted average credit score of 772, weighted average LTV of 72%) Linked Quarter Growth Average Loans ($M) and Net Charge-offs Ratio Key Statistics 1 Non-GAAP; see appendix for calculations and description of notable items $117,606 $114,627 $115,196 $115,639 $116,478 -0.01% 0.39 % 0.00 % 0.00 % -0.01 % Average Loans NCO%, Adjusted Reported NCO% 2Q23 3Q23 4Q23 1Q24 2Q24 $ in millions 2Q23 1Q24 2Q24 Average Loans $117,606 $115,639 $116,478 30-89 Delinquencies 0.11 % 0.12 % 0.12 % 90+ Delinquencies 0.08 % 0.12 % 0.15 % Non-performing Loans 0.18 % 0.13 % 0.13 % 1.1% (2.5)% 0.5% 0.4% 0.7% 1 Residential Mortgage Delinquencies ($M) 30-89 days past due 90+ days past due 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 $— $187 $374 -0.01%
U.S. Bancorp 24 $26,046 $26,883 $27,753 $27,942 $28,349 3.06 % 3.25 % 3.65 % 4.26 % 4.47 % Average Loans Reported NCO% 2Q23 3Q23 4Q23 1Q24 2Q24 Credit Quality – Credit Card Key Points ▪ Average loans increased by 1.5% on a linked quarter basis ▪ Net charge-off rate increased to 4.47% while both early and late state delinquencies moderated from 1Q24 Average Loans ($M) and Net Charge-offs Ratio Key Statistics 1.9% 3.2% 3.2% 0.7% 1.5% Linked Quarter Growth $ in millions 2Q23 1Q24 2Q24 Average Loans $26,046 $27,942 $28,349 30-89 Delinquencies 1.15 % 1.40 % 1.34 % 90+ Delinquencies 1.02 % 1.42 % 1.30 % Non-performing Loans — % — % — % Credit Card Delinquencies ($M) 30-89 days past due 90+ days past due 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 $— $200 $400 $600 $800
U.S. Bancorp 25 Credit Quality – Other Retail Key Points ▪ Average loans decreased by (1.0)% on a linked quarter basis ▪ Net charge-offs and non-performing loans remain stable Average Loans ($M) and Net Charge-offs Ratio Key Statistics 1 Non-GAAP; see appendix for calculations and description of notable items Linked Quarter Growth (2.7)% (11.0)% (3.0)% (2.9)% (1.0)% $52,146 $46,394 $44,986 $43,685 $43,230 1.69 % 0.53 % 0.47 % 0.51 % 0.45 % Average Loans NCO% Adjusted Reported NCO% 2Q23 3Q23 4Q23 1Q24 2Q24 Auto Loans 19% Installment 33% Home Equity 30% Retail Leasing 10% Revolving Credit 8% $ in millions 2Q23 1Q24 2Q24 Average Loans $52,146 $43,685 $43,230 30-89 Delinquencies 0.50 % 0.55 % 0.54 % 90+ Delinquencies 0.12 % 0.15 % 0.14 % Non-performing Loans 0.27 % 0.32 % 0.33 % 1 0.22%
U.S. Bancorp 26 Non-GAAP Financial Measures (1), (2) – see last page in appendix for corresponding notes Three Months Ended (Dollars in Millions, Unaudited) June 30, 2024 March 31, 2024 June 30, 2023 Net interest income $ 4,023 $ 3,985 $ 4,415 Taxable-equivalent adjustment (1) 29 30 34 Net interest income, on a taxable-equivalent basis 4,052 4,015 4,449 Net interest income, on a taxable-equivalent basis (as calculated above) 4,052 4,015 4,449 Noninterest income 2,815 2,700 2,726 Less: Securities gains (losses), net (36) 2 3 Total net revenue, excluding net securities gains (losses) (a) 6,903 6,713 7,172 Noninterest expense (b) 4,214 4,459 4,569 Efficiency ratio (b)/(a) 61.0 % 66.4 % 63.7 % Total net revenue, excluding net securities gains (losses) (as calculated above) $ 6,903 $ 6,713 $ 7,172 Less: Notable Items (2) — — (22) Total net revenue, excluding net securities gains (losses) and notable items (c) $ 6,903 $ 6,713 $ 7,194 Noninterest expense 4,214 4,459 4,569 Less: Notable items (2) 26 265 310 Noninterest expense, excluding notable items (d) 4,188 4,194 4,259 Efficiency ratio, excluding notable items (d)/(c) 60.7 % 62.5 % 59.2 % Net income attributable to U.S. Bancorp $ 1,603 $ 1,319 $ 1,361 Less: Notable items (2) (19) (199) (432) Net income attributable to U.S. Bancorp, excluding notable items 1,622 1,518 1,793 Annualized net income attributable to U.S. Bancorp, excluding notable items (e) 6,524 6,105 7,192 Average assets (f) 665,504 653,909 673,012 Return on average assets, excluding notable items (e)/(f) 0.98 % 0.93 % 1.07 % Net income applicable to U.S. Bancorp common shareholders $ 1,518 $ 1,209 $ 1,281 Less: Notable items, including the impact of earnings allocated to participating stock awards (2) (19) (198) (429) Net income applicable to U.S. Bancorp common shareholders, excluding notable items 1,537 1,407 1,710 Annualized net income applicable to U.S. Bancorp common shareholders, excluding notable items (g) 6,182 5,659 6,859 Average common equity (h) 49,221 48,859 47,014 Return on average common equity, excluding notable items (g)/(h) 12.6 % 11.6 % 14.6 % Net income applicable to U.S. Bancorp common shareholders, excluding notable items (as calculated above) (i) $ 1,537 $ 1,407 $ 1,710 Average diluted common shares outstanding (j) 1,561 1,559 1,533 Diluted earnings per common share, excluding notable items (i)/(j) $ 0.98 $ 0.90 $ 1.12
U.S. Bancorp 27 Three Months Ended (Dollars in Millions, Unaudited) June 30, 2024 March 31, 2024 June 30, 2023 Net income applicable to U.S. Bancorp common shareholders $ 1,518 $ 1,209 $ 1,281 Intangibles amortization (net-of-tax) 113 115 126 Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization 1,631 1,324 1,407 Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization (a) 6,560 5,325 5,643 Average total equity 56,492 56,131 54,287 Average preferred stock (6,808) (6,808) (6,808) Average noncontrolling interests (463) (464) (465) Average goodwill (net of deferred tax liability) (3) (11,457) (11,473) (11,527) Average intangible assets (net of deferred tax liability), other than mortgage servicing rights (2,087) (2,208) (2,530) Average tangible common equity (b) 35,677 35,178 32,957 Return on tangible common equity (a)/(b) 18.4 % 15.1 % 17.1 % Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization (as calculated above) $ 1,631 $ 1,324 $ 1,407 Less: Notable items, including the impact of earnings allocated to participating stock awards (2) (19) (198) (429) Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization and notable items 1,650 1,522 1,836 Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization and notable items (c) 6,636 6,121 7,364 Average tangible common equity (as calculated above) (d) 35,677 35,178 32,957 Return on tangible common equity, excluding notable items (c)/(d) 18.6 % 17.4 % 22.3 % (2), (3) – see last page in appendix for corresponding notes Non-GAAP Financial Measures
U.S. Bancorp 28 Non-GAAP Financial Measures (2) – see last page in appendix for corresponding notes Three Months Ended (Dollars in Millions, Unaudited) June 30, 2023 Net charge-offs $ 649 Less: Notable items (2) 309 Net charge-offs, excluding notable items 340 Annualized net charge-offs, excluding notable items (a) 1,364 Average loan balances (b) 388,817 Net charge-off ratio, excluding notable items (a)/(b) 0.35 % Provision for Credit Losses Combined, Reported $ 821 Less: Notable items (2) 243 Provision for Credit Losses Combined, Adjusted 578 Residential Mortgage loan net charge-offs $ 114 Less: Notable items (2) 117 Net charge-offs, excluding notable items (3) Annualized net charge-offs, excluding notable items (c) (12) Residential Mortgage average loan balances (d) 117,606 Residential Mortgage loan net charge-off ratio, excluding notable items (c)/(d) (0.01) % Other Retail loan net charge-offs $ 220 Less: Notable items (2) 192 Net charge-offs, excluding notable items 28 Annualized net charge-offs, excluding notable items (e) 112 Other Retail average loan balances (f) 52,146 Other Retail loan net charge-off ratio, excluding notable items (e)/(f) 0.22 %
U.S. Bancorp 29 Non-GAAP Financial Measures (Dollars and Shares in Millions Except Per Share Data, Unaudited) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 Total equity $ 56,885 $ 56,033 $ 55,771 $ 53,578 $ 53,484 Preferred stock (6,808) (6,808) (6,808) (6,808) (6,808) Noncontrolling interest (465) (465) (465) (465) (465) Goodwill (net of deferred tax liability) (3) (11,449) (11,459) (11,480) (11,470) (11,493) Intangible assets (net of deferred tax liability), other than mortgage servicing rights (2,047) (2,158) (2,278) (2,370) (2,490) Tangible common equity (a) 36,116 35,143 34,740 32,465 32,228 Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements related to the current expected credit losses methodology implementation 46,239 45,239 44,947 44,655 42,944 Adjustments (4) (433) (433) (866) (867) (866) Common equity tier 1 capital, reflecting the full implementation of the current expected credit losses methodology (b) 45,806 44,806 44,081 43,788 42,078 Total assets 680,058 683,606 663,491 668,039 680,825 Goodwill (net of deferred tax liability) (3) (11,449) (11,459) (11,480) (11,470) (11,493) Intangible assets (net of deferred tax liability), other than mortgage servicing rights (2,047) (2,158) (2,278) (2,370) (2,490) Tangible assets (c) 666,562 669,989 649,733 654,199 666,842 Risk-weighted assets, determined in accordance with transitional regulatory capital requirements related t the current expected credit losses methodology implementation (d) 449,111 452,831 453,390 462,250 473,393 Adjustments (5) (368) (368) (736) (736) (735) Risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (e) 448,743 452,463 452,654 461,514 472,658 Common shares outstanding (f) 1,560 1,560 1,558 1,557 1,533 Ratios Tangible common equity to tangible assets (a)/(c) 5.4% 5.2% 5.3% 5.0% 4.8% Tangible common equity to risk-weighted assets (a)/(d) 8.0 7.8 7.7 7.0 6.8 Common tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (b)/(e) 10.2 9.9 9.7 9.5 8.9 Tangible book value per common share (a)/(f) $ 23.15 $ 22.53 $ 22.30 $ 20.85 $ 21.02 (3), (4), (5) – see last page in appendix for corresponding notes *Preliminary data. Subject to change prior to filings with applicable regulatory agencies. * * *
U.S. Bancorp 30 Non-GAAP Financial Measures (2) – see last page in appendix for corresponding notes Year Ended (Dollars in Millions, Unaudited) December 31, 2023 Total noninterest income $ 10,617 Less: notable items (2) (140) Total noninterest income, as adjusted 10,757
U.S. Bancorp 31 Non-GAAP Financial Measures ($ in millions) Six Months Ended June 30, 2024 Line of Business Financial Performance Net Revenue Wealth, Corporate, Commercial and Institutional Banking $ 6,054 Consumer and Business Banking 4,637 Payment Services 3,448 Treasury and Corporate Support (557) Total Company 13,582 Less Treasury and Corporate Support (557) Total Company excluding Treasury and Corporate Support $ 14,139 Percent of Total Company Wealth, Corporate, Commercial and Institutional Banking 45 % Consumer and Business Banking 34 % Payment Services 25 % Treasury and Corporate Support (4) % Total Company 100 % Percent of Total Company excluding Treasury and Corporate Support Wealth, Corporate, Commercial and Institutional Banking 43 % Consumer and Business Banking 33 % Payment Services 24 % Total Company excluding Treasury and Corporate Support 100 %
U.S. Bancorp 32 Non-GAAP Financial Measures (2) – see last page in appendix for corresponding notes (2)
U.S. Bancorp 33 Notes 1. Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes. 2. Notable items for the three months ended June 30, 2024 included a $26 million ($19 million net-of-tax) charge for the increase in FDIC special assessment. Notable items of $265 million ($199 million net-of-tax) for the three months ended March 31, 2024 included $155 million of merger and integration-related charges and a $110 million charge for the increase in the FDIC special assessment. Notable items of $575 million ($432 million net-of-tax) for the three months ended June 30, 2023 included $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $310 million of merger and integration-related charges, $243 million of provision for credit losses related to balance sheet repositioning and capital management actions, and $309 million of net charge-offs related to balance sheet repositioning and capital management actions. Notable items for the year-ended December 31, 2023 of $2.2 billion ($1.6 billion net-of-tax, including a $70 million discrete tax benefit) included $(140) million of noninterest income related to investment securities balance sheet repositioning and capital management actions, $1.0 billion of merger and integration-related charges, $734 million of FDIC special assessment charges, a $110 million charitable contribution and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions. Notable items for the year-ended December 31, 2022 of $1.5 million ($1.1 billion net-of-tax) included $(399) million of noninterest income related to balance sheet repositioning and capital management actions, $329 million of merger and integration-related charges and $791 million of provision for credit losses related to the acquisition of Union Bank and balance sheet optimization activities. 3. Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements. 4. Includes the estimated increase in the allowance for credit losses related to the adoption of the current expected credit losses methodology net of deferred taxes. 5. Includes the impact of the estimated increase in the allowance for credit losses related to the adoption of the current expected credit losses methodology.
U.S. Bancorp 34
v3.24.2
Cover Page
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Jul. 17, 2024 |
Entity Listings [Line Items] |
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Document Type |
8-K
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Document Period End Date |
Jul. 17, 2024
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Entity Registrant Name |
US BANCORP DE
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Entity File Number |
1-6880
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Entity Incorporation, State or Country Code |
DE
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Entity Tax Identification Number |
41-0255900
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Entity Address, Address Line One |
800 Nicollet Mall
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Entity Address, City or Town |
Minneapolis
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Entity Address, State or Province |
MN
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Entity Address, Postal Zip Code |
55402
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City Area Code |
651
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Local Phone Number |
466-3000
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Floating Rate Notes, Series CC (Senior), due May 21, 2028 |
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Entity Listings [Line Items] |
|
Title of 12(b) Security |
Floating Rate Notes, Series CC (Senior), due May 21, 2028
|
Trading Symbol |
USB/28
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Security Exchange Name |
NYSE
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4.009% Fixed-to-Floating Rate Notes, Series CC (Senior), due May 21, 2032 |
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Entity Listings [Line Items] |
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Title of 12(b) Security |
4.009% Fixed-to-Floating Rate Notes, Series CC (Senior), due May 21, 2032
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Trading Symbol |
USB/32
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Security Exchange Name |
NYSE
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Common Stock, $.01 par value per share |
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Entity Listings [Line Items] |
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Title of 12(b) Security |
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Trading Symbol |
USB
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Security Exchange Name |
NYSE
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Depositary Shares (each representing 1/100th interest in a share of Series A Non-Cumulative Perpetual Preferred Stock, par value $1.00) |
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Entity Listings [Line Items] |
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Title of 12(b) Security |
Depositary Shares (each representing 1/100th interest in a share of Series A Non-Cumulative Perpetual Preferred Stock, par value $1.00)
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Trading Symbol |
USB PrA
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Security Exchange Name |
NYSE
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Entity Listings [Line Items] |
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Title of 12(b) Security |
Depositary Shares (each representing 1/1,000th interest in a share of Series B Non-Cumulative Perpetual Preferred Stock, par value $1.00)
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Trading Symbol |
USB PrH
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Security Exchange Name |
NYSE
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Entity Listings [Line Items] |
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Title of 12(b) Security |
Depositary Shares (each representing 1/1,000th interest in a share of Series K Non-Cumulative Perpetual Preferred Stock, par value $1.00)
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Trading Symbol |
USB PrP
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Security Exchange Name |
NYSE
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Entity Listings [Line Items] |
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Title of 12(b) Security |
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Trading Symbol |
USB PrQ
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Security Exchange Name |
NYSE
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Entity Listings [Line Items] |
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Security Exchange Name |
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USB PrS
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NYSE
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US Bancorp (NYSE:USB-S)
Historical Stock Chart
From Jun 2024 to Jul 2024
US Bancorp (NYSE:USB-S)
Historical Stock Chart
From Jul 2023 to Jul 2024