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): January 21, 2015
U.S. BANCORP
(Exact name of registrant as specified in its charter)
1-6880
(Commission File Number)
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DELAWARE |
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41-0255900 |
(State or other jurisdiction |
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(I.R.S. Employer Identification |
of incorporation) |
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Number) |
800 Nicollet Mall
Minneapolis, Minnesota 55402
(Address of principal executive offices and zip code)
(651) 466-3000
(Registrants 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)
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¨ |
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)) |
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On January 21, 2015, U.S. Bancorp (the Company) issued a press release reporting quarter ended December 31, 2014 results, and
posted on its website its 4Q14 Earnings Conference Call Presentation, which contains certain additional historical and forward-looking information relating to the Company. The press release is included as Exhibit 99.1 hereto and is incorporated
herein by reference. The information included in the press release is considered to be filed under the Securities Exchange Act of 1934. The 4Q14 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated
herein by reference. The information included in the 4Q14 Earnings Conference Call Presentation is considered to be furnished under the Securities Exchange Act of 1934. The press release and 4Q14 Earnings Conference Call Presentation
contain forward-looking statements regarding the Company and each includes a cautionary statement identifying important factors that could cause actual results to differ materially from those anticipated.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
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99.1 |
Press Release issued by U.S. Bancorp on January 21, 2015, deemed filed under the Securities Exchange Act of 1934. |
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99.2 |
4Q14 Earnings Conference Call Presentation, deemed furnished under the Securities Exchange Act of 1934. |
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 |
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By /s/ Craig E. Gifford |
Craig E. Gifford |
Executive Vice President and Controller |
DATE: January 21, 2015
Exhibit 99.1
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News Release |
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Contacts: |
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Dana Ripley |
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Sean OConnor |
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Media |
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Investors/Analysts |
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(612) 303-3167 |
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(612) 303-0778 |
U.S. BANCORP REPORTS FOURTH QUARTER AND FULL YEAR 2014 EARNINGS
Achieves Record Net Income and EPS for the Full Year 2014
MINNEAPOLIS, January 21, 2015 U.S. Bancorp (NYSE: USB) today reported net income of $1,488 million for the fourth quarter of 2014, or $.79 per diluted common share, compared with
$1,456 million, or $.76 per diluted common share, in the fourth quarter of 2013. The fourth quarter of 2014 reflected notable items related to equity investments, charitable contributions and accruals for legal matters that, combined, increased
diluted earnings per common share for the current quarter by $.01.
Highlights for the full year 2014 included:
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Record full year 2014 net income of $5.85 billion |
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Record full year diluted earnings per common share of $3.08, 2.7 percent higher than 2013 |
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Industry-leading performance measures, including return on average assets of 1.54 percent, return on average common equity of 14.7 percent and
efficiency ratio of 53.2 percent |
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Returned 72 percent of 2014 earnings to shareholders through dividends and share buybacks |
Highlights for the fourth quarter of 2014 included:
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Growth in average total loans of 5.9 percent over the fourth quarter of 2013 (5.5 percent excluding the Charter One franchise acquisition in late June
2014 and 7.1 percent excluding covered loans) and 1.0 percent on a linked quarter basis (1.2 percent excluding covered loans) |
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Growth in average total commercial loans of 15.5 percent over the fourth quarter of 2013 and 2.9 percent over the third quarter of 2014
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Growth in average total commercial real estate loans of 4.2 percent over the fourth quarter of 2013 and .3 percent over the third quarter of 2014
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Growth in average commercial and commercial real estate commitments of 13.3 percent year-over-year and 3.0 percent over the prior quarter
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Strong new lending activity of $63.9 billion during the fourth quarter, including: |
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$44.2 billion of new and renewed commercial and commercial real estate commitments |
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$2.9 billion of lines related to new credit card accounts |
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$16.8 billion of mortgage and other retail loan originations |
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
2
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Net interest income growth over the fourth quarter of 2013 and third quarter 2014 |
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Average earning assets growth of 11.1 percent year-over-year and 2.5 percent linked quarter |
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Continued strong growth in lower cost core deposit funding on a year-over-year and linked quarter basis |
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Decline in net charge-offs of 8.3 percent on a linked quarter basis and 1.3 percent on a year-over-year basis. Provision for credit losses was $20
million less than net charge-offs in the current quarter |
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Allowance for credit losses to period-end loans was 1.77 percent at December 31, 2014 |
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Annualized net charge-offs to average total loans ratio decreased to .50 percent |
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Decreases in nonperforming assets of 11.2 percent on a year-over-year basis and 6.0 percent on a linked quarter basis |
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Growth in average total deposits of 7.2 percent over the fourth quarter of 2013 (5.5 percent excluding the Charter One acquisition) and 1.6 percent on
a linked quarter basis |
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Average low cost deposits, including noninterest-bearing and total savings deposits, grew by 9.6 percent year-over-year and 2.4 percent on a linked
quarter basis |
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Capital generation continued to reinforce capital position and returns. Ratios at December 31, 2014, were: |
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Basel III transitional standardized approach: |
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Common equity tier 1 capital ratio of 9.7 percent |
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Tier 1 capital ratio of 11.3 percent |
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Total risk-based capital ratio of 13.6 percent |
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Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach of 9.0 percent and for the
Basel III fully implemented advanced approaches of 11.8 percent |
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Returned 66 percent of fourth quarter earnings to shareholders through dividends and the buyback of 11 million common shares
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Compliant with fully implemented U.S. Liquidity Coverage Ratio (LCR) based on the Companys interpretation of the U.S. final LCR rule
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The notable items in the fourth quarter of 2014 included a $124 million gain related to an equity interest in Nuveen Investments (Nuveen
gain) and $88 million of additional noninterest expense comprised of $35 million of charitable contributions and $53 million related to recent developments in certain legal matters. |
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
3
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EARNINGS SUMMARY |
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Table 1 |
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($ in millions, except per-share data) |
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4Q 2014 |
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3Q 2014 |
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4Q 2013 |
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Percent Change 4Q14 vs 3Q14 |
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Percent Change 4Q14 vs 4Q13 |
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Full Year 2014 |
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Full Year 2013 |
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Percent Change |
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Net income attributable to U.S. Bancorp |
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$ |
1,488 |
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$ |
1,471 |
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$ |
1,456 |
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1.2 |
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2.2 |
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$ |
5,851 |
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$ |
5,836 |
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.3 |
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Diluted earnings per common share |
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$ |
.79 |
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$ |
.78 |
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$ |
.76 |
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1.3 |
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3.9 |
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$ |
3.08 |
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$ |
3.00 |
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2.7 |
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Return on average assets (%) |
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1.50 |
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1.51 |
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1.62 |
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1.54 |
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1.65 |
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Return on average common equity (%) |
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14.4 |
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14.5 |
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15.4 |
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14.7 |
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15.8 |
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Net interest margin (%) |
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3.14 |
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3.16 |
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3.40 |
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3.23 |
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3.44 |
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Efficiency ratio (%) |
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54.3 |
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52.4 |
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54.9 |
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53.2 |
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52.4 |
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Tangible efficiency ratio (%) (a) |
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53.3 |
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51.3 |
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53.7 |
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52.2 |
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51.3 |
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Dividends declared per common share |
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$ |
.245 |
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$ |
.245 |
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$ |
.230 |
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6.5 |
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$ |
.965 |
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$ |
.885 |
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9.0 |
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Book value per common share (period-end) |
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$ |
21.68 |
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$ |
21.38 |
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$ |
19.92 |
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1.4 |
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8.8 |
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(a) |
Computed as noninterest expense divided by the sum of net interest income on a taxable-equivalent basis and noninterest income excluding net securities gains (losses)
and intangible amortization. |
Net income attributable to U.S. Bancorp was $1,488 million for the fourth quarter
of 2014, 2.2 percent higher than the $1,456 million for the fourth quarter of 2013, and 1.2 percent higher than the $1,471 million for the third quarter of 2014. Diluted earnings per common share of $.79 in the fourth quarter of 2014 were $.03
higher than the fourth quarter of 2013 and $.01 higher than the previous quarter. Return on average assets and return on average common equity were 1.50 percent and 14.4 percent, respectively, for the fourth quarter of 2014, compared with 1.62
percent and 15.4 percent, respectively, for the fourth quarter of 2013. The provision for credit losses was lower than net charge-offs by $20 million in the fourth quarter of 2014, $25 million lower than net charge-offs in the third quarter of 2014,
and $35 million lower than net charge-offs in the fourth quarter of 2013.
U.S. Bancorp Chairman, President and Chief
Executive Officer Richard K. Davis said, U.S. Bancorp delivered another solid financial performance in 2014 with record full year net income of $5.85 billion, or $3.08 per diluted common share. Our fourth quarter results were also solid with
net income of $1.49 billion, or $.79 per diluted common share. We maintained our industry-leading performance measures, including return on average assets (ROA) of 1.54 percent, return on average common equity (ROE) of 14.7 percent, and an
efficiency ratio of 53.2 percent for the full year of 2014. We are proud of the hard work and dedication of our global team and for their commitment to providing customers with a diverse array of banking products and services, backed by the
financial strength of U.S. Bancorp.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
4
Davis continued, In 2014, we demonstrated our ability to create value for our
shareholders and customers by returning 72 percent of our earnings to shareholders through dividends and share buybacks, and by generating steady growth in commercial and consumer lending, new credit card accounts, total deposits, and wealth
management services. The diversification of our business profile continues to be a key advantage for the organization. We are particularly encouraged by the 5.7 percent growth in total net revenue, the 15.5 percent growth in average total commercial
loans, and the 7.2 percent growth in average total deposits over the fourth quarter of last year. At the same time, we are preserving our strong capital position with our key capital ratios at or above our targets.
As we head into 2015, we remain committed to investing in a strategy centered on helping our retail, wholesale and institutional
customers establish financially secure futures. We are well positioned for growth as the economic environment shows signs of improvement and our customers look for a strong and stable banking partner to help them achieve their distinct financial
goals and objectives.
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INCOME STATEMENT HIGHLIGHTS |
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Table 2 |
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(Taxable-equivalent basis, $ in millions, except per-share data) |
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4Q 2014 |
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3Q 2014 |
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4Q 2013 |
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Percent Change 4Q14 vs 3Q14 |
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Percent Change 4Q14 vs 4Q13 |
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Full Year 2014 |
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Full Year 2013 |
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Percent Change |
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Net interest income |
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$ |
2,799 |
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$ |
2,748 |
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$ |
2,733 |
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1.9 |
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2.4 |
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$ |
10,997 |
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$ |
10,828 |
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1.6 |
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Noninterest income |
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2,370 |
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2,242 |
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2,156 |
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5.7 |
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9.9 |
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9,164 |
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8,774 |
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4.4 |
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Total net revenue |
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5,169 |
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4,990 |
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4,889 |
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3.6 |
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5.7 |
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20,161 |
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19,602 |
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2.9 |
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Noninterest expense |
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2,804 |
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2,614 |
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2,682 |
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7.3 |
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4.5 |
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10,715 |
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10,274 |
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4.3 |
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Income before provision and taxes |
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2,365 |
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2,376 |
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2,207 |
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(.5 |
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7.2 |
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9,446 |
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9,328 |
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1.3 |
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Provision for credit losses |
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288 |
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311 |
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277 |
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(7.4 |
) |
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4.0 |
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1,229 |
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1,340 |
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(8.3 |
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Income before taxes |
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2,077 |
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2,065 |
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1,930 |
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.6 |
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7.6 |
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8,217 |
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7,988 |
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2.9 |
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Taxable-equivalent adjustment |
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55 |
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56 |
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56 |
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(1.8 |
) |
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(1.8 |
) |
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222 |
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224 |
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(.9 |
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Applicable income taxes |
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521 |
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523 |
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403 |
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(.4 |
) |
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29.3 |
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2,087 |
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2,032 |
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2.7 |
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Net income |
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1,501 |
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1,486 |
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1,471 |
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1.0 |
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2.0 |
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5,908 |
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5,732 |
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3.1 |
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Net (income) loss attributable to noncontrolling interests |
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(13 |
) |
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(15 |
) |
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(15 |
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13.3 |
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13.3 |
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(57 |
) |
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104 |
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nm |
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Net income attributable to U.S. Bancorp |
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$ |
1,488 |
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$ |
1,471 |
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$ |
1,456 |
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1.2 |
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2.2 |
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$ |
5,851 |
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$ |
5,836 |
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.3 |
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Net income applicable to U.S. Bancorp common shareholders |
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$ |
1,420 |
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$ |
1,405 |
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$ |
1,389 |
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1.1 |
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2.2 |
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$ |
5,583 |
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$ |
5,552 |
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.6 |
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Diluted earnings per common share |
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$ |
.79 |
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$ |
.78 |
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$ |
.76 |
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1.3 |
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3.9 |
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$ |
3.08 |
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$ |
3.00 |
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2.7 |
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Net income attributable to U.S. Bancorp for the fourth quarter of 2014 was $32 million (2.2 percent) higher than the
fourth quarter of 2013, and $17 million (1.2 percent) higher than the third quarter of 2014.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
5
The increase in net income year-over-year was principally due to an increase in total net revenue, driven by increases in net interest income and fee-based revenue, and the net impact of notable
items. The increase in net income on a linked quarter basis was due to higher net interest income, the net impact of the notable items and a decrease in the provision for credit losses.
Total net revenue on a taxable-equivalent basis for the fourth quarter of 2014 was $5,169 million, which was $280 million (5.7 percent)
higher than the fourth quarter of 2013, reflecting a 9.9 percent increase in noninterest income and a 2.4 percent increase in net interest income. Noninterest income increased year-over-year due to higher revenue in most fee businesses and higher
other income, including the impact of the Nuveen gain. The increase in net interest income year-over-year was the result of an increase in average earning assets and continued growth in lower cost core deposit funding, partially offset by lower loan
fees due to the previously communicated wind down of the short-term, small-dollar deposit advance product, Checking Account Advance (CAA). Total net revenue on a taxable-equivalent basis was $179 million (3.6 percent) higher on a linked
quarter basis due to a 5.7 percent increase in noninterest income as a result of the Nuveen gain and a 1.9 percent increase in net interest income, the result of an increase in average earning assets and growth in lower cost deposits.
Total noninterest expense in the fourth quarter of 2014 was $2,804 million, which was $122 million (4.5 percent) higher than the fourth
quarter of 2013 and $190 million (7.3 percent) higher than the third quarter of 2014. The increase in total noninterest expense year-over-year was primarily due to accruals related to recent developments in several legal matters, charitable
contributions and an increase in compensation expense, reflecting the impact of merit increases, acquisitions, and higher staffing for risk and compliance activities. The increase in total noninterest expense on a linked quarter basis was due to
seasonally higher costs related to investments in tax-advantaged projects and professional services and the notable items, including the charitable contributions and legal accruals.
The Companys provision for credit losses for the fourth quarter of 2014 was $288 million, $23 million (7.4 percent) lower than the
prior quarter and $11 million (4.0 percent) higher than the fourth quarter of 2013. The provision for credit losses was lower than net charge-offs by $20 million in the fourth quarter of 2014, $25 million lower than net charge-offs in the third
quarter of 2014, and $35 million lower than net charge-offs in the fourth quarter of 2013. Net charge-offs in the fourth quarter of 2014 were $308 million, compared with $336 million in the third quarter of 2014, and $312 million in the fourth
quarter of 2013. Given current economic conditions, the Company expects the level of net charge-offs to remain relatively stable in the first quarter of 2015.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
6
Nonperforming assets were $1,808 million at December 31, 2014, compared with $1,923
million at September 30, 2014, and $2,037 million at December 31, 2013. The decrease in nonperforming assets compared with a year ago was driven primarily by reductions in the commercial, commercial mortgage and construction and
development portfolios, as well as by improvement in credit card loans. The Company expects total nonperforming assets to remain relatively stable in the first quarter of 2015. The ratio of the allowance for credit losses to period-end loans was
1.77 percent at December 31, 2014, compared with 1.80 percent at September 30, 2014, and 1.93 percent at December 31, 2013. Certain loans acquired by the Company are covered under loss sharing agreements with the FDIC that
substantially reduce the risk of credit losses to the Company (covered assets). The loss sharing agreement for the commercial and commercial real estate loans acquired from the FDIC, which comprised the majority of the nonperforming
covered assets, expired at the end of the fourth quarter of 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
|
Table 3 |
|
(Taxable-equivalent basis; $ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2014 |
|
|
3Q 2014 |
|
|
4Q 2013 |
|
|
Change 4Q14 vs 3Q14 |
|
|
Change 4Q14 vs 4Q13 |
|
|
Full Year 2014 |
|
|
Full Year 2013 |
|
|
Change |
|
Components of net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income on earning assets |
|
$ |
3,158 |
|
|
$ |
3,114 |
|
|
$ |
3,125 |
|
|
$ |
44 |
|
|
$ |
33 |
|
|
$ |
12,454 |
|
|
$ |
12,513 |
|
|
$ |
(59 |
) |
Expense on interest-bearing liabilities |
|
|
359 |
|
|
|
366 |
|
|
|
392 |
|
|
|
(7 |
) |
|
|
(33 |
) |
|
|
1,457 |
|
|
|
1,685 |
|
|
|
(228 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
2,799 |
|
|
$ |
2,748 |
|
|
$ |
2,733 |
|
|
$ |
51 |
|
|
$ |
66 |
|
|
$ |
10,997 |
|
|
$ |
10,828 |
|
|
$ |
169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yields and rates paid |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets yield |
|
|
3.54 |
% |
|
|
3.58 |
% |
|
|
3.89 |
% |
|
|
(.04 |
)% |
|
|
(.35 |
)% |
|
|
3.65 |
% |
|
|
3.97 |
% |
|
|
(.32 |
)% |
Rate paid on interest-bearing liabilities |
|
|
.55 |
|
|
|
.57 |
|
|
|
.68 |
|
|
|
(.02 |
) |
|
|
(.13 |
) |
|
|
.58 |
|
|
|
.73 |
|
|
|
(.15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross interest margin |
|
|
2.99 |
% |
|
|
3.01 |
% |
|
|
3.21 |
% |
|
|
(.02 |
)% |
|
|
(.22 |
)% |
|
|
3.07 |
% |
|
|
3.24 |
% |
|
|
(.17 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
3.14 |
% |
|
|
3.16 |
% |
|
|
3.40 |
% |
|
|
(.02 |
)% |
|
|
(.26 |
)% |
|
|
3.23 |
% |
|
|
3.44 |
% |
|
|
(.21 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities (a) |
|
$ |
98,164 |
|
|
$ |
93,141 |
|
|
$ |
77,248 |
|
|
$ |
5,023 |
|
|
$ |
20,916 |
|
|
$ |
90,327 |
|
|
$ |
75,046 |
|
|
$ |
15,281 |
|
Loans |
|
|
246,421 |
|
|
|
243,867 |
|
|
|
232,791 |
|
|
|
2,554 |
|
|
|
13,630 |
|
|
|
241,692 |
|
|
|
227,474 |
|
|
|
14,218 |
|
Earning assets |
|
|
354,961 |
|
|
|
346,422 |
|
|
|
319,516 |
|
|
|
8,539 |
|
|
|
35,445 |
|
|
|
340,994 |
|
|
|
315,139 |
|
|
|
25,855 |
|
Interest-bearing liabilities |
|
|
259,938 |
|
|
|
254,501 |
|
|
|
229,201 |
|
|
|
5,437 |
|
|
|
30,737 |
|
|
|
249,972 |
|
|
|
230,400 |
|
|
|
19,572 |
|
(a) |
Excludes unrealized gain (loss) |
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
7
Net Interest Income
Net interest income on a taxable-equivalent basis in the fourth quarter of 2014 was $2,799 million, an increase of $66 million (2.4 percent) over the fourth quarter of 2013. The increase was the result of
growth in average earning assets and in lower cost core deposit funding, partially offset by lower rates on new loans and securities and the CAA product wind down. Average earning assets were $35.4 billion (11.1 percent) higher than the fourth
quarter of 2013, driven by increases of $20.9 billion (27.1 percent) in average investment securities and $13.6 billion (5.9 percent) in average total loans. Net interest income increased $51 million (1.9 percent) on a linked quarter basis, due to
higher average earning assets, partially offset by lower loan and investment securities rates. The net interest margin in the fourth quarter of 2014 was 3.14 percent, compared with 3.40 percent in the fourth quarter of 2013, and 3.16 percent in the
third quarter of 2014. The decline in the net interest margin on a year-over-year basis primarily reflected lower reinvestment rates on investment securities, as well as growth in the investment portfolio at lower average rates, lower loan fees due
to the CAA product wind down, and lower rates on new loans, partially offset by lower funding costs. On a linked quarter basis, the reduction in net interest margin was principally due to growth in lower rate investment securities, partially offset
by interest recoveries.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE LOANS |
|
Table 4 |
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2014 |
|
|
3Q 2014 |
|
|
4Q 2013 |
|
|
Percent Change 4Q14 vs 3Q14 |
|
|
Percent Change 4Q14 vs 4Q13 |
|
|
Full Year 2014 |
|
|
Full Year 2013 |
|
|
Percent Change |
|
Commercial |
|
$ |
74,333 |
|
|
$ |
72,190 |
|
|
$ |
63,714 |
|
|
|
3.0 |
|
|
|
16.7 |
|
|
$ |
70,549 |
|
|
$ |
62,012 |
|
|
|
13.8 |
|
Lease financing |
|
|
5,292 |
|
|
|
5,155 |
|
|
|
5,210 |
|
|
|
2.7 |
|
|
|
1.6 |
|
|
|
5,185 |
|
|
|
5,262 |
|
|
|
(1.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial |
|
|
79,625 |
|
|
|
77,345 |
|
|
|
68,924 |
|
|
|
2.9 |
|
|
|
15.5 |
|
|
|
75,734 |
|
|
|
67,274 |
|
|
|
12.6 |
|
Commercial mortgages |
|
|
31,783 |
|
|
|
31,965 |
|
|
|
31,780 |
|
|
|
(.6 |
) |
|
|
|
|
|
|
31,949 |
|
|
|
31,429 |
|
|
|
1.7 |
|
Construction and development |
|
|
9,183 |
|
|
|
8,874 |
|
|
|
7,538 |
|
|
|
3.5 |
|
|
|
21.8 |
|
|
|
8,643 |
|
|
|
6,808 |
|
|
|
27.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial real estate |
|
|
40,966 |
|
|
|
40,839 |
|
|
|
39,318 |
|
|
|
.3 |
|
|
|
4.2 |
|
|
|
40,592 |
|
|
|
38,237 |
|
|
|
6.2 |
|
Residential mortgages |
|
|
51,872 |
|
|
|
51,994 |
|
|
|
50,732 |
|
|
|
(.2 |
) |
|
|
2.2 |
|
|
|
51,818 |
|
|
|
47,982 |
|
|
|
8.0 |
|
Credit card |
|
|
17,990 |
|
|
|
17,753 |
|
|
|
17,366 |
|
|
|
1.3 |
|
|
|
3.6 |
|
|
|
17,635 |
|
|
|
16,813 |
|
|
|
4.9 |
|
Retail leasing |
|
|
5,939 |
|
|
|
5,991 |
|
|
|
5,847 |
|
|
|
(.9 |
) |
|
|
1.6 |
|
|
|
5,981 |
|
|
|
5,654 |
|
|
|
5.8 |
|
Home equity and second mortgages |
|
|
15,853 |
|
|
|
15,704 |
|
|
|
15,488 |
|
|
|
.9 |
|
|
|
2.4 |
|
|
|
15,564 |
|
|
|
15,887 |
|
|
|
(2.0 |
) |
Other |
|
|
27,317 |
|
|
|
27,003 |
|
|
|
26,059 |
|
|
|
1.2 |
|
|
|
4.8 |
|
|
|
26,808 |
|
|
|
25,584 |
|
|
|
4.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other retail |
|
|
49,109 |
|
|
|
48,698 |
|
|
|
47,394 |
|
|
|
.8 |
|
|
|
3.6 |
|
|
|
48,353 |
|
|
|
47,125 |
|
|
|
2.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans, excluding covered loans |
|
|
239,562 |
|
|
|
236,629 |
|
|
|
223,734 |
|
|
|
1.2 |
|
|
|
7.1 |
|
|
|
234,132 |
|
|
|
217,431 |
|
|
|
7.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered loans |
|
|
6,859 |
|
|
|
7,238 |
|
|
|
9,057 |
|
|
|
(5.2 |
) |
|
|
(24.3 |
) |
|
|
7,560 |
|
|
|
10,043 |
|
|
|
(24.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
$ |
246,421 |
|
|
$ |
243,867 |
|
|
$ |
232,791 |
|
|
|
1.0 |
|
|
|
5.9 |
|
|
$ |
241,692 |
|
|
$ |
227,474 |
|
|
|
6.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total loans were $13.6 billion (5.9 percent) higher in the fourth quarter of 2014 than the fourth
quarter of 2013, driven by growth in total commercial loans (15.5 percent), total commercial real estate (4.2 percent), credit card (3.6 percent), residential mortgages (2.2 percent), and total other retail loans (3.6 percent). These increases were
partially offset by a decline in covered loans (24.3 percent). Average total loans, excluding covered loans, were higher by 7.1 percent year-over-year. Average total loans were $2.6 billion (1.0 percent) higher in the fourth quarter of 2014 than the
third quarter of 2014, driven by growth in total commercial loans (2.9 percent), credit card (1.3 percent), total other retail loans (.8 percent) and total commercial real estate (.3 percent). These increases were partially offset by a decline in
covered loans (5.2 percent) and residential mortgages (.2 percent). Average total loans, excluding covered loans, were higher by 1.2 percent on a linked quarter basis.
Average investment securities in the fourth quarter of 2014 were $20.9 billion (27.1 percent) higher year-over-year and $5.0 billion (5.4 percent) higher than the prior quarter. The increases were
primarily due to purchases of U.S. government agency-backed securities, net of prepayments and maturities, in anticipation of final liquidity coverage ratio regulatory requirements.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
9
|
|
|
|
|
AVERAGE DEPOSITS |
|
|
Table 5 |
|
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2014 |
|
|
3Q 2014 |
|
|
4Q 2013 |
|
|
Percent Change 4Q14 vs 3Q14 |
|
|
Percent Change 4Q14 vs 4Q13 |
|
|
Full Year 2014 |
|
|
Full Year 2013 |
|
|
Percent Change |
|
Noninterest-bearing deposits |
|
$ |
76,958 |
|
|
$ |
74,126 |
|
|
$ |
74,468 |
|
|
|
3.8 |
|
|
|
3.3 |
|
|
$ |
73,455 |
|
|
$ |
69,020 |
|
|
|
6.4 |
|
Interest-bearing savings deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking |
|
|
54,199 |
|
|
|
54,454 |
|
|
|
50,112 |
|
|
|
(.5 |
) |
|
|
8.2 |
|
|
|
53,248 |
|
|
|
48,792 |
|
|
|
9.1 |
|
Money market savings |
|
|
68,914 |
|
|
|
66,250 |
|
|
|
57,550 |
|
|
|
4.0 |
|
|
|
19.7 |
|
|
|
63,977 |
|
|
|
55,512 |
|
|
|
15.2 |
|
Savings accounts |
|
|
34,955 |
|
|
|
34,615 |
|
|
|
32,235 |
|
|
|
1.0 |
|
|
|
8.4 |
|
|
|
34,196 |
|
|
|
31,916 |
|
|
|
7.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total of savings deposits |
|
|
158,068 |
|
|
|
155,319 |
|
|
|
139,897 |
|
|
|
1.8 |
|
|
|
13.0 |
|
|
|
151,421 |
|
|
|
136,220 |
|
|
|
11.2 |
|
Time deposits less than $100,000 |
|
|
10,766 |
|
|
|
11,045 |
|
|
|
11,979 |
|
|
|
(2.5 |
) |
|
|
(10.1 |
) |
|
|
11,054 |
|
|
|
12,804 |
|
|
|
(13.7 |
) |
Time deposits greater than $100,000 |
|
|
29,687 |
|
|
|
30,518 |
|
|
|
30,562 |
|
|
|
(2.7 |
) |
|
|
(2.9 |
) |
|
|
30,710 |
|
|
|
32,413 |
|
|
|
(5.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits |
|
|
198,521 |
|
|
|
196,882 |
|
|
|
182,438 |
|
|
|
.8 |
|
|
|
8.8 |
|
|
|
193,185 |
|
|
|
181,437 |
|
|
|
6.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
$ |
275,479 |
|
|
$ |
271,008 |
|
|
$ |
256,906 |
|
|
|
1.6 |
|
|
|
7.2 |
|
|
$ |
266,640 |
|
|
$ |
250,457 |
|
|
|
6.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total deposits for the fourth quarter of 2014 were $18.6 billion (7.2 percent) higher than the
fourth quarter of 2013. Average noninterest-bearing deposits increased $2.5 billion (3.3 percent) year-over-year, mainly in Consumer and Small Business Banking, including the $.4 billion impact of the Charter One acquisition. Average total savings
deposits were $18.2 billion (13.0 percent) higher year-over-year, the result of growth in Consumer and Small Business Banking, including the $3.3 billion impact of the Charter One acquisition, corporate trust, and in Wholesale Banking and Commercial
Real Estate balances. Time deposits less than $100,000 were $1.2 billion (10.1 percent) lower due to maturities, while time deposits greater than $100,000 decreased $875 million (2.9 percent), primarily due to a decline in Wholesale Banking and
Commercial Real Estate and Consumer and Small Business Banking balances. Time deposits greater than $100,000 are managed as an alternative to other funding sources, such as wholesale borrowing, based largely on relative pricing.
Average total deposits increased $4.5 billion (1.6 percent) over the third quarter of 2014. Average noninterest-bearing deposits
increased $2.8 billion (3.8 percent) on a linked quarter basis, due to higher balances in Wholesale Banking and Commercial Real Estate and Consumer and Small Business Banking. Average total savings deposits increased $2.7 billion (1.8 percent),
reflecting increases in corporate trust and Consumer and Small Business Banking, partially offset by a decrease in broker-dealer and government banking related balances. Compared with the third quarter of 2014, average time deposits less than
$100,000 decreased $279 million (2.5 percent) due to a decrease in Consumer and Small Business Banking. Average
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
10
time deposits greater than $100,000 decreased $831 million (2.7 percent) on a linked quarter basis, principally due to a decline in corporate trust balances.
|
|
|
NONINTEREST INCOME |
|
Table 6 |
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2014 |
|
|
3Q 2014 |
|
|
4Q 2013 |
|
|
Percent Change 4Q14 vs 3Q14 |
|
|
Percent Change 4Q14 vs 4Q13 |
|
|
Full Year 2014 |
|
|
Full Year 2013 |
|
|
Percent Change |
|
Credit and debit card revenue |
|
$ |
272 |
|
|
$ |
251 |
|
|
$ |
263 |
|
|
|
8.4 |
|
|
|
3.4 |
|
|
$ |
1,021 |
|
|
$ |
965 |
|
|
|
5.8 |
|
Corporate payment products revenue |
|
|
174 |
|
|
|
195 |
|
|
|
166 |
|
|
|
(10.8 |
) |
|
|
4.8 |
|
|
|
724 |
|
|
|
706 |
|
|
|
2.5 |
|
Merchant processing services |
|
|
384 |
|
|
|
387 |
|
|
|
367 |
|
|
|
(.8 |
) |
|
|
4.6 |
|
|
|
1,511 |
|
|
|
1,458 |
|
|
|
3.6 |
|
ATM processing services |
|
|
80 |
|
|
|
81 |
|
|
|
79 |
|
|
|
(1.2 |
) |
|
|
1.3 |
|
|
|
321 |
|
|
|
327 |
|
|
|
(1.8 |
) |
Trust and investment management fees |
|
|
322 |
|
|
|
315 |
|
|
|
297 |
|
|
|
2.2 |
|
|
|
8.4 |
|
|
|
1,252 |
|
|
|
1,139 |
|
|
|
9.9 |
|
Deposit service charges |
|
|
180 |
|
|
|
185 |
|
|
|
177 |
|
|
|
(2.7 |
) |
|
|
1.7 |
|
|
|
693 |
|
|
|
670 |
|
|
|
3.4 |
|
Treasury management fees |
|
|
136 |
|
|
|
136 |
|
|
|
130 |
|
|
|
|
|
|
|
4.6 |
|
|
|
545 |
|
|
|
538 |
|
|
|
1.3 |
|
Commercial products revenue |
|
|
219 |
|
|
|
209 |
|
|
|
243 |
|
|
|
4.8 |
|
|
|
(9.9 |
) |
|
|
854 |
|
|
|
859 |
|
|
|
(.6 |
) |
Mortgage banking revenue |
|
|
235 |
|
|
|
260 |
|
|
|
231 |
|
|
|
(9.6 |
) |
|
|
1.7 |
|
|
|
1,009 |
|
|
|
1,356 |
|
|
|
(25.6 |
) |
Investment products fees |
|
|
49 |
|
|
|
49 |
|
|
|
45 |
|
|
|
|
|
|
|
8.9 |
|
|
|
191 |
|
|
|
178 |
|
|
|
7.3 |
|
Securities gains (losses), net |
|
|
1 |
|
|
|
(3 |
) |
|
|
1 |
|
|
|
nm |
|
|
|
|
|
|
|
3 |
|
|
|
9 |
|
|
|
(66.7 |
) |
Other |
|
|
318 |
|
|
|
177 |
|
|
|
157 |
|
|
|
79.7 |
|
|
|
nm |
|
|
|
1,040 |
|
|
|
569 |
|
|
|
82.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income |
|
$ |
2,370 |
|
|
$ |
2,242 |
|
|
$ |
2,156 |
|
|
|
5.7 |
|
|
|
9.9 |
|
|
$ |
9,164 |
|
|
$ |
8,774 |
|
|
|
4.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Income
Fourth quarter noninterest income was $2,370 million, which was $214 million (9.9 percent) higher than the fourth quarter of 2013 and $128 million (5.7 percent) higher than the third quarter of 2014. The
year-over-year increase in noninterest income was due to increases in other income and a majority of fee revenue categories, partially offset by a reduction in commercial products revenue. The increase in other income of $161 million was primarily
due to higher equity investment gains, including the Nuveen gain, and increased revenue from tax-advantaged projects. Trust and investment management fees increased $25 million (8.4 percent) year-over-year, reflecting account growth, improved market
conditions and business expansion. Merchant processing services revenue was $17 million (4.6 percent) higher as a result of an increase in product fees and higher volumes, partially offset by lower rates. Credit and debit card revenue increased $9
million (3.4 percent) and corporate payment products revenue increased $8 million (4.8 percent) over the fourth quarter of 2013 primarily due to higher transaction volumes. The decrease in commercial products revenue of $24 million (9.9 percent) was
primarily due to lower tax-advantaged project syndication fees.
Noninterest income was $128 million (5.7 percent) higher in
the fourth quarter of 2014 than the third quarter of 2014, primarily due to a $141 million (79.7 percent) increase in other income, partially offset by
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
11
lower mortgage banking revenue and seasonally lower corporate payment products revenue. The increase in other income was primarily due to the Nuveen gain and higher revenue from tax-advantaged
projects. Credit and debit card revenue increased $21 million (8.4 percent) primarily due to seasonally higher sales volumes. Commercial products revenue increased $10 million (4.8 percent) primarily due to higher loan and tax-advantaged project
syndication fees. Trust and investment management fees were $7 million (2.2 percent) higher than the prior quarter due to improved market conditions and higher fees. Partially offsetting these increases were decreases in mortgage banking revenue and
corporate payment products revenue. Mortgage banking revenue decreased $25 million (9.6 percent), principally due to a decrease in origination and sales revenue and an $8 million unfavorable change in the valuation of mortgage servicing rights
(MSRs), net of hedging activities. Corporate payment products revenue decreased $21 million (10.8 percent) on a linked quarter basis, primarily due to the impact of seasonally higher third quarter government-related transaction volumes.
|
|
|
NONINTEREST EXPENSE |
|
Table 7 |
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2014 |
|
|
3Q 2014 |
|
|
4Q 2013 |
|
|
Percent Change 4Q14 vs 3Q14 |
|
|
Percent Change 4Q14 vs 4Q13 |
|
|
Full Year 2014 |
|
|
Full Year 2013 |
|
|
Percent Change |
|
Compensation |
|
$ |
1,151 |
|
|
$ |
1,132 |
|
|
$ |
1,103 |
|
|
|
1.7 |
|
|
|
4.4 |
|
|
$ |
4,523 |
|
|
$ |
4,371 |
|
|
|
3.5 |
|
Employee benefits |
|
|
245 |
|
|
|
250 |
|
|
|
275 |
|
|
|
(2.0 |
) |
|
|
(10.9 |
) |
|
|
1,041 |
|
|
|
1,140 |
|
|
|
(8.7 |
) |
Net occupancy and equipment |
|
|
248 |
|
|
|
249 |
|
|
|
240 |
|
|
|
(.4 |
) |
|
|
3.3 |
|
|
|
987 |
|
|
|
949 |
|
|
|
4.0 |
|
Professional services |
|
|
132 |
|
|
|
102 |
|
|
|
118 |
|
|
|
29.4 |
|
|
|
11.9 |
|
|
|
414 |
|
|
|
381 |
|
|
|
8.7 |
|
Marketing and business development |
|
|
129 |
|
|
|
78 |
|
|
|
103 |
|
|
|
65.4 |
|
|
|
25.2 |
|
|
|
382 |
|
|
|
357 |
|
|
|
7.0 |
|
Technology and communications |
|
|
219 |
|
|
|
219 |
|
|
|
209 |
|
|
|
|
|
|
|
4.8 |
|
|
|
863 |
|
|
|
848 |
|
|
|
1.8 |
|
Postage, printing and supplies |
|
|
86 |
|
|
|
81 |
|
|
|
80 |
|
|
|
6.2 |
|
|
|
7.5 |
|
|
|
328 |
|
|
|
310 |
|
|
|
5.8 |
|
Other intangibles |
|
|
51 |
|
|
|
51 |
|
|
|
56 |
|
|
|
|
|
|
|
(8.9 |
) |
|
|
199 |
|
|
|
223 |
|
|
|
(10.8 |
) |
Other |
|
|
543 |
|
|
|
452 |
|
|
|
498 |
|
|
|
20.1 |
|
|
|
9.0 |
|
|
|
1,978 |
|
|
|
1,695 |
|
|
|
16.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
$ |
2,804 |
|
|
$ |
2,614 |
|
|
$ |
2,682 |
|
|
|
7.3 |
|
|
|
4.5 |
|
|
$ |
10,715 |
|
|
$ |
10,274 |
|
|
|
4.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
12
Noninterest Expense
Noninterest expense in the fourth quarter of 2014 totaled $2,804 million, an increase of $122 million (4.5 percent) over the fourth quarter of 2013, and a $190 million (7.3 percent) increase over the
third quarter of 2014. The increase in total noninterest expense year-over-year was primarily the result of the charitable contributions and legal accruals, and higher compensation expense. The increase in compensation expense of $48 million (4.4
percent) reflected the impact of merit increases, acquisitions, and higher staffing for risk and compliance activities. The increase in other noninterest expense of $45 million (9.0 percent) was primarily due to the legal accruals. The increase in
marketing and business development expense of $26 million (25.2 percent) was principally due to charitable contributions. Additionally, professional services expense increased $14 million (11.9 percent) due to higher costs across a majority of the
lines of business, and technology and communications expense increased $10 million (4.8 percent) as a result of business initiatives across most business lines. Partially offsetting these increases was a $30 million (10.9 percent) reduction in
employee benefits expense driven by lower pension costs.
Noninterest expense increased $190 million (7.3 percent) on a linked
quarter basis, primarily driven by an increase in other noninterest expense of $91 million (20.1 percent) due to seasonally higher costs related to investments in tax-advantaged projects and the legal accruals. Additionally, marketing and business
development expense increased $51 million (65.4 percent) primarily due to charitable contributions and advertising costs. Professional services expense was $30 million (29.4 percent) higher due to seasonally higher costs across a majority of the
lines of business including risk and compliance activities. Compensation expense increased $19 million (1.7 percent) principally reflecting the impact of additional employees for risk and compliance activities.
Provision for Income Taxes
The provision for income taxes for the fourth quarter of 2014 resulted in a tax rate on a taxable-equivalent basis of 27.7 percent (effective tax rate of 25.8 percent), compared with 23.8 percent
(effective tax rate of 21.5 percent) in the fourth quarter of 2013, and 28.0 percent (effective tax rate of 26.0 percent) in the third quarter of 2014. The increase on a year-over-year basis primarily reflected the affordable housing tax credit
change in the first quarter of 2014 and the favorable conclusion of certain tax matters in the fourth quarter of 2013.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
13
|
|
|
|
|
ALLOWANCE FOR CREDIT LOSSES |
|
|
Table 8 |
|
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2014 |
|
|
% (b) |
|
|
3Q 2014 |
|
|
% (b) |
|
|
2Q 2014 |
|
|
% (b) |
|
|
1Q 2014 |
|
|
% (b) |
|
|
4Q 2013 |
|
|
% (b) |
|
Balance, beginning of period |
|
$ |
4,414 |
|
|
|
|
|
|
$ |
4,449 |
|
|
|
|
|
|
$ |
4,497 |
|
|
|
|
|
|
$ |
4,537 |
|
|
|
|
|
|
$ |
4,578 |
|
|
|
|
|
Net charge-offs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
48 |
|
|
|
.26 |
|
|
|
52 |
|
|
|
.29 |
|
|
|
52 |
|
|
|
.30 |
|
|
|
34 |
|
|
|
.21 |
|
|
|
33 |
|
|
|
.21 |
|
Lease financing |
|
|
(2 |
) |
|
|
(.15 |
) |
|
|
6 |
|
|
|
.46 |
|
|
|
3 |
|
|
|
.24 |
|
|
|
2 |
|
|
|
.16 |
|
|
|
3 |
|
|
|
.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial |
|
|
46 |
|
|
|
.23 |
|
|
|
58 |
|
|
|
.30 |
|
|
|
55 |
|
|
|
.29 |
|
|
|
36 |
|
|
|
.21 |
|
|
|
36 |
|
|
|
.21 |
|
Commercial mortgages |
|
|
(3 |
) |
|
|
(.04 |
) |
|
|
1 |
|
|
|
.01 |
|
|
|
(6 |
) |
|
|
(.08 |
) |
|
|
(1 |
) |
|
|
(.01 |
) |
|
|
1 |
|
|
|
.01 |
|
Construction and development |
|
|
(7 |
) |
|
|
(.30 |
) |
|
|
3 |
|
|
|
.13 |
|
|
|
2 |
|
|
|
.09 |
|
|
|
(2 |
) |
|
|
(.10 |
) |
|
|
(30 |
) |
|
|
(1.58 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial real estate |
|
|
(10 |
) |
|
|
(.10 |
) |
|
|
4 |
|
|
|
.04 |
|
|
|
(4 |
) |
|
|
(.04 |
) |
|
|
(3 |
) |
|
|
(.03 |
) |
|
|
(29 |
) |
|
|
(.29 |
) |
Residential mortgages |
|
|
39 |
|
|
|
.30 |
|
|
|
42 |
|
|
|
.32 |
|
|
|
57 |
|
|
|
.44 |
|
|
|
57 |
|
|
|
.45 |
|
|
|
49 |
|
|
|
.38 |
|
Credit card |
|
|
160 |
|
|
|
3.53 |
|
|
|
158 |
|
|
|
3.53 |
|
|
|
170 |
|
|
|
3.92 |
|
|
|
170 |
|
|
|
3.96 |
|
|
|
163 |
|
|
|
3.72 |
|
Retail leasing |
|
|
1 |
|
|
|
.07 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home equity and second mortgages |
|
|
17 |
|
|
|
.43 |
|
|
|
24 |
|
|
|
.61 |
|
|
|
23 |
|
|
|
.60 |
|
|
|
31 |
|
|
|
.82 |
|
|
|
37 |
|
|
|
.95 |
|
Other |
|
|
52 |
|
|
|
.76 |
|
|
|
49 |
|
|
|
.72 |
|
|
|
45 |
|
|
|
.68 |
|
|
|
45 |
|
|
|
.69 |
|
|
|
52 |
|
|
|
.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other retail |
|
|
70 |
|
|
|
.57 |
|
|
|
73 |
|
|
|
.59 |
|
|
|
69 |
|
|
|
.58 |
|
|
|
76 |
|
|
|
.65 |
|
|
|
89 |
|
|
|
.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net charge-offs, excluding covered loans |
|
|
305 |
|
|
|
.51 |
|
|
|
335 |
|
|
|
.56 |
|
|
|
347 |
|
|
|
.60 |
|
|
|
336 |
|
|
|
.60 |
|
|
|
308 |
|
|
|
.55 |
|
Covered loans |
|
|
3 |
|
|
|
.17 |
|
|
|
1 |
|
|
|
.05 |
|
|
|
2 |
|
|
|
.10 |
|
|
|
5 |
|
|
|
.24 |
|
|
|
4 |
|
|
|
.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net charge-offs |
|
|
308 |
|
|
|
.50 |
|
|
|
336 |
|
|
|
.55 |
|
|
|
349 |
|
|
|
.58 |
|
|
|
341 |
|
|
|
.59 |
|
|
|
312 |
|
|
|
.53 |
|
Provision for credit losses |
|
|
288 |
|
|
|
|
|
|
|
311 |
|
|
|
|
|
|
|
324 |
|
|
|
|
|
|
|
306 |
|
|
|
|
|
|
|
277 |
|
|
|
|
|
Other changes (a) |
|
|
(19 |
) |
|
|
|
|
|
|
(10 |
) |
|
|
|
|
|
|
(23 |
) |
|
|
|
|
|
|
(5 |
) |
|
|
|
|
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period |
|
$ |
4,375 |
|
|
|
|
|
|
$ |
4,414 |
|
|
|
|
|
|
$ |
4,449 |
|
|
|
|
|
|
$ |
4,497 |
|
|
|
|
|
|
$ |
4,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
4,039 |
|
|
|
|
|
|
$ |
4,065 |
|
|
|
|
|
|
$ |
4,132 |
|
|
|
|
|
|
$ |
4,189 |
|
|
|
|
|
|
$ |
4,250 |
|
|
|
|
|
Liability for unfunded credit commitments |
|
|
336 |
|
|
|
|
|
|
|
349 |
|
|
|
|
|
|
|
317 |
|
|
|
|
|
|
|
308 |
|
|
|
|
|
|
|
287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for credit losses |
|
$ |
4,375 |
|
|
|
|
|
|
$ |
4,414 |
|
|
|
|
|
|
$ |
4,449 |
|
|
|
|
|
|
$ |
4,497 |
|
|
|
|
|
|
$ |
4,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross charge-offs |
|
$ |
415 |
|
|
|
|
|
|
$ |
410 |
|
|
|
|
|
|
$ |
432 |
|
|
|
|
|
|
$ |
422 |
|
|
|
|
|
|
$ |
429 |
|
|
|
|
|
Gross recoveries |
|
$ |
107 |
|
|
|
|
|
|
$ |
74 |
|
|
|
|
|
|
$ |
83 |
|
|
|
|
|
|
$ |
81 |
|
|
|
|
|
|
$ |
117 |
|
|
|
|
|
Allowance for credit losses as a percentage of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans, excluding covered loans |
|
|
1.78 |
|
|
|
|
|
|
|
1.81 |
|
|
|
|
|
|
|
1.83 |
|
|
|
|
|
|
|
1.90 |
|
|
|
|
|
|
|
1.94 |
|
|
|
|
|
Nonperforming loans, excluding covered loans |
|
|
297 |
|
|
|
|
|
|
|
291 |
|
|
|
|
|
|
|
294 |
|
|
|
|
|
|
|
293 |
|
|
|
|
|
|
|
297 |
|
|
|
|
|
Nonperforming assets, excluding covered assets |
|
|
245 |
|
|
|
|
|
|
|
245 |
|
|
|
|
|
|
|
246 |
|
|
|
|
|
|
|
243 |
|
|
|
|
|
|
|
242 |
|
|
|
|
|
Period-end loans |
|
|
1.77 |
|
|
|
|
|
|
|
1.80 |
|
|
|
|
|
|
|
1.82 |
|
|
|
|
|
|
|
1.89 |
|
|
|
|
|
|
|
1.93 |
|
|
|
|
|
Nonperforming loans |
|
|
298 |
|
|
|
|
|
|
|
282 |
|
|
|
|
|
|
|
279 |
|
|
|
|
|
|
|
278 |
|
|
|
|
|
|
|
283 |
|
|
|
|
|
Nonperforming assets |
|
|
242 |
|
|
|
|
|
|
|
230 |
|
|
|
|
|
|
|
229 |
|
|
|
|
|
|
|
225 |
|
|
|
|
|
|
|
223 |
|
|
|
|
|
(a) |
Includes net changes in credit losses to be reimbursed by the FDIC and reductions in the allowance for covered loans where the reversal of a previously recorded
allowance was offset by an associated decrease in the indemnification asset, and the impact of any loan sales. |
(b) |
Annualized and calculated on average loan balances |
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
14
Credit Quality
The allowance for credit losses was $4,375 million at December 31, 2014, compared with $4,414 million at September 30, 2014, and $4,537 million at December 31, 2013. Nonperforming assets
declined on a linked quarter and year-over-year basis as economic conditions continued to slowly improve. Total net charge-offs in the fourth quarter of 2014 were $308 million, compared with $336 million in the third quarter of 2014, and $312
million in the fourth quarter of 2013. The $28 million (8.3 percent) decrease in net charge-offs on a linked quarter basis was due to higher recoveries in the commercial and commercial real estate portfolios and improvement in home equity and second
mortgages, while the $4 million (1.3 percent) decrease in net charge-offs on a year-over-year basis reflected improvements in residential mortgages and home equity and
second mortgages, partially offset by higher commercial loan net charge-offs and lower recoveries in commercial real estate. The Company recorded $288 million of provision for credit losses in the current quarter, which was $20 million less than net
charge-offs.
Commercial and commercial real estate loan net charge-offs were $36 million (.12 percent of average loans
outstanding) in the fourth quarter of 2014, compared with $62 million (.21 percent of average loans outstanding) in the third quarter of 2014, and $7 million (.03 percent of average loans outstanding) in the fourth quarter of 2013.
Residential mortgage loan net charge-offs were $39 million (.30 percent of average loans outstanding) in the fourth quarter of 2014,
compared with $42 million (.32 percent of average loans outstanding) in the third quarter of 2014, and $49 million (.38 percent of average loans outstanding) in the fourth quarter of 2013. Credit card loan net charge-offs were $160 million (3.53
percent of average loans outstanding) in the fourth quarter of 2014, compared with $158 million (3.53 percent of average loans outstanding) in the third quarter of 2014, and $163 million (3.72 percent of average loans outstanding) in the fourth
quarter of 2013. Total other retail loan net charge-offs were $70 million (.57 percent of average loans outstanding) in the fourth quarter of 2014, compared with $73 million (.59 percent of average loans outstanding) in the third quarter of 2014,
and $89 million (.75 percent of average loans outstanding) in the fourth quarter of 2013.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
15
The ratio of the allowance for credit losses to period-end loans was 1.77 percent at
December 31, 2014, compared with 1.80 percent at September 30, 2014, and 1.93 percent at December 31, 2013. The ratio of the allowance for credit losses to nonperforming loans was 298 percent at December 31, 2014, compared with
282 percent at September 30, 2014, and 283 percent at December 31, 2013.
|
|
|
|
|
DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES |
|
|
Table 9 |
|
(Percent) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 31 |
|
|
Sep 30 |
|
|
Jun 30 |
|
|
Mar 31 |
|
|
Dec 31 |
|
|
|
2014 |
|
|
2014 |
|
|
2014 |
|
|
2014 |
|
|
2013 |
|
Delinquent loan ratios90 days or more past due excluding nonperforming loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
.05 |
|
|
|
.05 |
|
|
|
.06 |
|
|
|
.06 |
|
|
|
.08 |
|
Commercial real estate |
|
|
.05 |
|
|
|
.03 |
|
|
|
.06 |
|
|
|
.06 |
|
|
|
.07 |
|
Residential mortgages |
|
|
.40 |
|
|
|
.41 |
|
|
|
.49 |
|
|
|
.64 |
|
|
|
.65 |
|
Credit card |
|
|
1.13 |
|
|
|
1.10 |
|
|
|
1.06 |
|
|
|
1.21 |
|
|
|
1.17 |
|
Other retail |
|
|
.15 |
|
|
|
.16 |
|
|
|
.15 |
|
|
|
.18 |
|
|
|
.18 |
|
Total loans, excluding covered loans |
|
|
.23 |
|
|
|
.22 |
|
|
|
.25 |
|
|
|
.30 |
|
|
|
.31 |
|
Covered loans |
|
|
7.48 |
|
|
|
6.10 |
|
|
|
6.14 |
|
|
|
5.83 |
|
|
|
5.63 |
|
Total loans |
|
|
.38 |
|
|
|
.39 |
|
|
|
.43 |
|
|
|
.49 |
|
|
|
.51 |
|
Delinquent loan ratios90 days or more past due including nonperforming loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
.19 |
|
|
|
.27 |
|
|
|
.30 |
|
|
|
.32 |
|
|
|
.27 |
|
Commercial real estate |
|
|
.65 |
|
|
|
.62 |
|
|
|
.62 |
|
|
|
.73 |
|
|
|
.83 |
|
Residential mortgages |
|
|
2.07 |
|
|
|
2.02 |
|
|
|
2.06 |
|
|
|
2.14 |
|
|
|
2.16 |
|
Credit card |
|
|
1.30 |
|
|
|
1.32 |
|
|
|
1.35 |
|
|
|
1.59 |
|
|
|
1.60 |
|
Other retail |
|
|
.53 |
|
|
|
.53 |
|
|
|
.54 |
|
|
|
.58 |
|
|
|
.58 |
|
Total loans, excluding covered loans |
|
|
.83 |
|
|
|
.84 |
|
|
|
.87 |
|
|
|
.95 |
|
|
|
.97 |
|
Covered loans |
|
|
7.74 |
|
|
|
7.34 |
|
|
|
7.73 |
|
|
|
7.46 |
|
|
|
7.13 |
|
Total loans |
|
|
.97 |
|
|
|
1.03 |
|
|
|
1.08 |
|
|
|
1.17 |
|
|
|
1.19 |
|
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
16
|
|
|
|
|
ASSET QUALITY |
|
|
Table 10 |
|
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 31 |
|
|
Sep 30 |
|
|
Jun 30 |
|
|
Mar 31 |
|
|
Dec 31 |
|
|
|
2014 |
|
|
2014 |
|
|
2014 |
|
|
2014 |
|
|
2013 |
|
Nonperforming loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
99 |
|
|
$ |
161 |
|
|
$ |
174 |
|
|
$ |
174 |
|
|
$ |
122 |
|
Lease financing |
|
|
13 |
|
|
|
12 |
|
|
|
16 |
|
|
|
14 |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial |
|
|
112 |
|
|
|
173 |
|
|
|
190 |
|
|
|
188 |
|
|
|
134 |
|
Commercial mortgages |
|
|
175 |
|
|
|
147 |
|
|
|
121 |
|
|
|
156 |
|
|
|
182 |
|
Construction and development |
|
|
84 |
|
|
|
94 |
|
|
|
105 |
|
|
|
113 |
|
|
|
121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial real estate |
|
|
259 |
|
|
|
241 |
|
|
|
226 |
|
|
|
269 |
|
|
|
303 |
|
Residential mortgages |
|
|
864 |
|
|
|
841 |
|
|
|
818 |
|
|
|
777 |
|
|
|
770 |
|
Credit card |
|
|
30 |
|
|
|
40 |
|
|
|
52 |
|
|
|
65 |
|
|
|
78 |
|
Other retail |
|
|
187 |
|
|
|
184 |
|
|
|
191 |
|
|
|
188 |
|
|
|
191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming loans, excluding covered loans |
|
|
1,452 |
|
|
|
1,479 |
|
|
|
1,477 |
|
|
|
1,487 |
|
|
|
1,476 |
|
Covered loans |
|
|
14 |
|
|
|
88 |
|
|
|
119 |
|
|
|
132 |
|
|
|
127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming loans |
|
|
1,466 |
|
|
|
1,567 |
|
|
|
1,596 |
|
|
|
1,619 |
|
|
|
1,603 |
|
Other real estate (a) |
|
|
288 |
|
|
|
275 |
|
|
|
279 |
|
|
|
296 |
|
|
|
327 |
|
Covered other real estate (a) |
|
|
37 |
|
|
|
72 |
|
|
|
58 |
|
|
|
73 |
|
|
|
97 |
|
Other nonperforming assets |
|
|
17 |
|
|
|
9 |
|
|
|
10 |
|
|
|
11 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets (b) |
|
$ |
1,808 |
|
|
$ |
1,923 |
|
|
$ |
1,943 |
|
|
$ |
1,999 |
|
|
$ |
2,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets, excluding covered assets |
|
$ |
1,757 |
|
|
$ |
1,763 |
|
|
$ |
1,766 |
|
|
$ |
1,794 |
|
|
$ |
1,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans 90 days or more past due, excluding covered loans |
|
$ |
550 |
|
|
$ |
532 |
|
|
$ |
581 |
|
|
$ |
695 |
|
|
$ |
713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans 90 days or more past due |
|
$ |
945 |
|
|
$ |
962 |
|
|
$ |
1,038 |
|
|
$ |
1,167 |
|
|
$ |
1,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing restructured loans, excluding GNMA and covered loans |
|
$ |
2,832 |
|
|
$ |
2,818 |
|
|
$ |
2,911 |
|
|
$ |
3,006 |
|
|
$ |
3,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing restructured GNMA and covered loans |
|
$ |
2,273 |
|
|
$ |
2,685 |
|
|
$ |
3,072 |
|
|
$ |
3,003 |
|
|
$ |
2,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to loans plus ORE, excluding covered assets (%) |
|
|
.72 |
|
|
|
.74 |
|
|
|
.75 |
|
|
|
.78 |
|
|
|
.80 |
|
Nonperforming assets to loans plus ORE (%) |
|
|
.73 |
|
|
|
.78 |
|
|
|
.80 |
|
|
|
.84 |
|
|
|
.86 |
|
(a) Includes equity investments in entities whose principal assets are other real estate
owned.
(b) Does not include accruing loans 90 days or more past due.
Nonperforming assets at December 31, 2014, totaled $1,808 million, compared with $1,923 million at September 30, 2014, and
$2,037 million at December 31, 2013. Total nonperforming assets at December 31, 2014, included $51 million of covered assets. The ratio of nonperforming assets to loans and other real estate was .73 percent at December 31, 2014,
compared with .78 percent at September 30, 2014, and .86 percent at December 31, 2013. Total commercial nonperforming loans were $61 million (35.3 percent) lower on a linked quarter basis and $22 million (16.4 percent) lower
year-over-year. Commercial real estate
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
17
nonperforming loans increased by $18 million (7.5 percent) on a linked quarter basis but decreased $44 million (14.5 percent) year-over-year. Residential
mortgage nonperforming loans increased $23 million (2.7 percent) on a linked quarter basis and $94 million (12.2 percent) year-over-year. Credit card nonperforming loans were $10 million (25.0 percent) lower on a linked quarter basis and $48 million
(61.5 percent) lower year-over-year. Other retail nonperforming loans increased $3 million (1.6 percent) on a linked quarter basis but decreased $4 million (2.1 percent) year-over-year.
Accruing loans 90 days or more past due were $945 million ($550 million excluding covered loans) at December 31, 2014, compared with
$962 million ($532 million excluding covered loans) at September 30, 2014, and $1,189 million ($713 million excluding covered loans) at December 31, 2013.
|
|
|
|
|
COMMON SHARES |
|
|
Table 11 |
|
(Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2014 |
|
|
3Q 2014 |
|
|
2Q 2014 |
|
|
1Q 2014 |
|
|
4Q 2013 |
|
Beginning shares outstanding |
|
|
1,795 |
|
|
|
1,809 |
|
|
|
1,821 |
|
|
|
1,825 |
|
|
|
1,832 |
|
Shares issued for stock option and stock purchase plans, acquisitions and other corporate purposes |
|
|
2 |
|
|
|
2 |
|
|
|
3 |
|
|
|
8 |
|
|
|
6 |
|
Shares repurchased |
|
|
(11 |
) |
|
|
(16 |
) |
|
|
(15 |
) |
|
|
(12 |
) |
|
|
(13 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending shares outstanding |
|
|
1,786 |
|
|
|
1,795 |
|
|
|
1,809 |
|
|
|
1,821 |
|
|
|
1,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Bancorp shareholders equity was $43.5 billion at December 31, 2014, compared with
$43.1 billion at September 30, 2014, and $41.1 billion at September 30, 2013. During the fourth quarter, the Company returned 66 percent of fourth quarter earnings to shareholders, including $439 million in common stock dividends and $495
million of repurchased common stock.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
18
|
|
|
|
|
CAPITAL POSITION |
|
|
Table 12 |
|
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 31 2014 |
|
|
Sep 30 2014 |
|
|
Jun 30 2014 |
|
|
Mar 31 2014 |
|
|
Dec 31 2013 |
|
Total U.S. Bancorp shareholders equity |
|
$ |
43,479 |
|
|
$ |
43,141 |
|
|
$ |
42,700 |
|
|
$ |
42,054 |
|
|
$ |
41,113 |
|
Standardized Approach |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basel III transitional standardized approach/Basel I (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital |
|
$ |
30,856 |
|
|
$ |
30,213 |
|
|
$ |
29,760 |
|
|
$ |
29,463 |
|
|
$ |
27,942 |
|
Tier 1 capital |
|
|
36,020 |
|
|
|
35,377 |
|
|
|
34,924 |
|
|
|
34,627 |
|
|
|
33,386 |
|
Total risk-based capital |
|
|
43,208 |
|
|
|
42,509 |
|
|
|
41,034 |
|
|
|
40,741 |
|
|
|
39,340 |
|
Common equity tier 1 capital ratio |
|
|
9.7 |
% |
|
|
9.7 |
% |
|
|
9.6 |
% |
|
|
9.7 |
% |
|
|
9.4 |
% |
Tier 1 capital ratio |
|
|
11.3 |
|
|
|
11.3 |
|
|
|
11.3 |
|
|
|
11.4 |
|
|
|
11.2 |
|
Total risk-based capital ratio |
|
|
13.6 |
|
|
|
13.6 |
|
|
|
13.2 |
|
|
|
13.5 |
|
|
|
13.2 |
|
Leverage ratio |
|
|
9.3 |
|
|
|
9.4 |
|
|
|
9.6 |
|
|
|
9.7 |
|
|
|
9.6 |
|
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized
approach |
|
|
9.0 |
|
|
|
9.0 |
|
|
|
8.9 |
|
|
|
9.0 |
|
|
|
8.8 |
|
Advanced Approaches |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital to risk-weighted assets for the Basel III transitional advanced approaches |
|
|
12.4 |
|
|
|
12.4 |
|
|
|
12.3 |
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced
approaches |
|
|
11.8 |
|
|
|
11.8 |
|
|
|
11.7 |
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets |
|
|
7.5 |
|
|
|
7.6 |
|
|
|
7.5 |
|
|
|
7.8 |
|
|
|
7.7 |
|
Tangible common equity to risk-weighted assets |
|
|
9.3 |
|
|
|
9.3 |
|
|
|
9.2 |
|
|
|
9.3 |
|
|
|
9.1 |
|
(a) |
2014 amounts and ratios calculated under the Basel III transitional standardized approach; December 31, 2013, under Basel I |
Prior to 2014, the regulatory capital requirements effective for the Company followed the Capital Accord of the Basel Committee on
Banking Supervision (Basel I). Beginning January 1, 2014, the regulatory capital requirements effective for the Company follow Basel III, subject to certain transition provisions from Basel I over the next four years to full
implementation by January 1, 2018. Basel III includes two comprehensive methodologies for calculating risk-weighted assets: a general standardized approach and more risk-sensitive advanced approaches. As of April 1, 2014, the Company
exited its parallel run qualification period, resulting in its capital adequacy now being evaluated against the Basel III methodology that is most restrictive. Under the Basel III transitional standardized approach, the common equity tier 1 capital
ratio was 9.7 percent at December 31, 2014 and at September 30, 2014. The tier 1 capital ratio was 11.3 percent at December 31, 2014 and at September 30, 2014, compared with 11.2 percent at December 31, 2013. Under the Basel
III transitional advanced approaches, the common equity tier 1
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
19
capital to risk-weighted assets ratio was 12.4 percent at December 31, 2014 and at September 30, 2014. All regulatory ratios continue to be in excess of well-capitalized
requirements. In addition, the common equity tier 1 capital to risk-weighted assets ratio estimated for the Basel III standardized approach as if fully implemented was 9.0 percent at December 31, 2014 and at September 30, 2014, compared
with 8.8 percent at December 31, 2013, and the common equity tier 1 capital to risk-weighted assets ratio estimated for the Basel III advanced approaches as if fully implemented was 11.8 percent at December 31, 2014 and at
September 30, 2014. The tangible common equity to tangible assets ratio was 7.5 percent at December 31, 2014, compared with 7.6 percent at September 30, 2014, and 7.7 percent at December 31, 2013.
|
|
|
|
|
LINE OF BUSINESS FINANCIAL PERFORMANCE (a) |
|
|
Table 13 |
|
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to U.S. Bancorp |
|
|
Percent Change |
|
|
Net Income Attributable to U.S. Bancorp |
|
|
|
|
|
|
|
Business Line |
|
4Q 2014 |
|
|
3Q 2014 |
|
|
4Q 2013 |
|
|
4Q14 vs 3Q14 |
|
|
4Q14 vs 4Q13 |
|
|
Full Year 2014 |
|
|
Full Year 2013 |
|
|
Percent Change |
|
|
4Q 2014 Earnings Composition |
|
Wholesale Banking and Commercial Real Estate |
|
$ |
287 |
|
|
$ |
267 |
|
|
$ |
289 |
|
|
|
7.5 |
|
|
|
(.7 |
) |
|
$ |
1,115 |
|
|
$ |
1,250 |
|
|
|
(10.8 |
) |
|
|
19 |
% |
Consumer and Small Business Banking |
|
|
305 |
|
|
|
309 |
|
|
|
389 |
|
|
|
(1.3 |
) |
|
|
(21.6 |
) |
|
|
1,215 |
|
|
|
1,505 |
|
|
|
(19.3 |
) |
|
|
21 |
|
Wealth Management and Securities Services |
|
|
66 |
|
|
|
61 |
|
|
|
43 |
|
|
|
8.2 |
|
|
|
53.5 |
|
|
|
237 |
|
|
|
166 |
|
|
|
42.8 |
|
|
|
4 |
|
Payment Services |
|
|
294 |
|
|
|
298 |
|
|
|
235 |
|
|
|
(1.3 |
) |
|
|
25.1 |
|
|
|
1,103 |
|
|
|
980 |
|
|
|
12.6 |
|
|
|
20 |
|
Treasury and Corporate Support |
|
|
536 |
|
|
|
536 |
|
|
|
500 |
|
|
|
|
|
|
|
7.2 |
|
|
|
2,181 |
|
|
|
1,935 |
|
|
|
12.7 |
|
|
|
36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Company |
|
$ |
1,488 |
|
|
$ |
1,471 |
|
|
$ |
1,456 |
|
|
|
1.2 |
|
|
|
2.2 |
|
|
$ |
5,851 |
|
|
$ |
5,836 |
|
|
|
.3 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lines of Business
The Companys major lines of business are Wholesale Banking and Commercial Real Estate, Consumer and Small Business
Banking, Wealth Management and Securities Services, Payment Services, and Treasury and Corporate Support. These operating segments are components of the Company about which financial information is prepared and is evaluated regularly by management
in deciding how to allocate resources and assess performance. Noninterest expenses incurred by centrally managed operations or business lines that directly support another business lines operations are charged to the applicable business line
based on its utilization of those services, primarily measured by the volume of customer activities, number of employees or other relevant factors. These allocated expenses are reported as net shared services expense within
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
20
noninterest 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 Companys diverse customer base. During 2014, certain organization and methodology changes were made and, accordingly, prior period results were restated and presented on a comparable basis.
Wholesale Banking and Commercial Real Estate offers lending, equipment finance and small-ticket leasing, depository
services, treasury management, capital markets, international trade services and other financial services to middle market, large corporate, commercial real estate, financial institution, non-profit and public sector clients. Wholesale Banking and
Commercial Real Estate contributed $287 million of the Companys net income in the fourth quarter of 2014, compared with $289 million in the fourth quarter of 2013 and $267 million in the third quarter of 2014. Wholesale Banking and Commercial
Real Estates net income decreased $2 million (.7 percent) from the same quarter of 2013 due to an increase in noninterest expense and a decrease in total net revenue, partially offset by a lower provision for credit losses. Total net revenue
declined by $5 million (.6 percent), due to a 12.8 percent decrease in total noninterest income, partially offset by a 5.9 percent increase in net interest income. Net interest income increased $30 million (5.9 percent) year-over-year, primarily due
to an increase in average total loans and deposits, partially offset by lower rates and fees on loans. Total noninterest income decreased by $35 million (12.8 percent), driven by lower wholesale transaction activity and loan-related fees, partially
offset by increases in commercial bond underwriting fees. Total noninterest expense was $6 million (2.0 percent) higher compared with a year ago, due to an increase in the FDIC insurance assessment allocation based on the level of commitments and
higher net shared services expense. The provision for credit losses was $8 million (32.0 percent) lower year-over-year due to a favorable change in the reserve allocation, partially offset by lower recoveries.
Wholesale Banking and Commercial Real Estates contribution to net income in the fourth quarter of 2014 was $20 million (7.5
percent) higher than the third quarter of 2014, due to an increase in total net revenue and a decrease in the provision for credit losses, partially offset by an increase in total noninterest expense. Total net revenue increased by $24 million (3.2
percent) compared with the prior quarter. Net interest income increased by $22 million (4.2 percent) on a linked quarter basis, primarily due to higher average loans and interest recoveries. Total noninterest income was $2 million (.8 percent)
higher than the prior quarter primarily due to higher equity investment revenue, partially offset by lower commercial products revenue, including standby letters of credit fees and other loan-related fees. Total noninterest
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
21
expense increased by $5 million (1.6 percent) due to higher compensation and employee benefits expense and seasonally higher net shared services expense. The provision for credit losses decreased
by $12 million (41.4 percent) due to higher recoveries, partially offset by an unfavorable change in the reserve allocation.
Consumer and Small Business Banking delivers products and services through banking offices, telephone servicing and sales, on-line services, direct mail, ATM processing and mobile devices, such as mobile phones and tablet computers. It encompasses community banking, metropolitan banking, in-store banking, small business banking,
consumer lending, workplace banking, student banking and 24-hour banking (collectively, the retail banking division), as well as mortgage banking. Consumer and Small Business Banking contributed $305 million of the Companys net income in the
fourth quarter of 2014, an $84 million (21.6 percent) decrease from the fourth quarter of 2013 and a $4 million (1.3 percent) decrease from the prior quarter. Within Consumer and Small Business Banking, the retail banking division reported a 39.9
percent decrease in its contribution from the same quarter of last year, principally due to lower total net revenue and an increase in total noninterest expense. Retail bankings total net revenue was 5.1 percent lower than the fourth quarter
of 2013. Net interest income decreased 7.7 percent, primarily as a result of lower fees due to the wind down of the CAA product, lower rates on loans and the impact of lower rates on the margin benefit from deposits, partially offset by higher
average loan and deposit balances. Total noninterest income for the retail banking division increased 1.3 percent over a year ago, principally due to an increase in retail lease revenue and deposit service charges. Total noninterest expense for the
retail banking division in the fourth quarter of 2014 increased 4.4 percent over the same quarter of the prior year, primarily due to merger integration costs and higher compensation and employee benefits expense, partially offset by lower FDIC
insurance assessments. The provision for credit losses for the retail banking division increased $70 million on a year-over-year basis due to an unfavorable change in the reserve allocation, partially offset by lower net charge-offs. The
contribution of the mortgage banking division was higher by 32.7 percent than the fourth quarter of 2013, reflecting a reduction in the provision for credit losses and an increase in total net revenue. The divisions 4.0 percent increase in
total net revenue was due to a 6.0 percent increase in net interest income, primarily the result of higher average loan and deposit balances, as well as a 2.6 percent increase in total noninterest income, principally due to a favorable change in the
valuation of MSRs, net of hedging activities. Total noninterest expense was relatively flat compared with the prior year, as higher mortgage servicing-related expenses were partially offset by lower incentive compensation. The 97.3 percent favorable
change in the provision for credit losses for the mortgage banking division was due to a favorable change in the reserve allocation and lower net charge-offs.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
22
Consumer and Small Business Bankings contribution in the fourth quarter of 2014
was $4 million (1.3 percent) lower than the third quarter of 2014, primarily due to a decrease in total net revenue, partially offset by a decrease in the provision for credit losses. Within Consumer and Small Business Banking, the retail banking
divisions contribution increased 1.7 percent, mainly due to a decrease in the provision for credit losses, partially offset by a decrease in total net revenue. Total net revenue for the retail banking division decreased 1.3 percent compared
with the previous quarter. Net interest income was relatively flat compared with the prior quarter due to higher average loan and deposit balances offset by lower rates and lower loan fees. Total noninterest income was 2.9 percent lower on a linked
quarter basis, driven by lower deposit service charges. Total noninterest expense increased 1.0 percent on a linked quarter basis due to higher marketing, professional services, and compensation expenses. The provision for credit losses decreased
35.5 percent on a linked quarter basis due to lower net charge-offs and a favorable change in the reserve allocation in the current quarter. The contribution of the mortgage banking division decreased 5.1 percent from the third quarter of 2014
primarily due to a higher provision for credit losses and lower total net revenue. Total net revenue decreased 4.6 percent due to an 8.6 percent decrease in total noninterest income, the result of lower origination and sales revenue as well as an
unfavorable change in the valuation of MSRs, net of hedging activities, partially offset by a 1.9 percent increase in net interest income due to higher average loans held for sale and higher average loan balances. Total noninterest expense decreased
10.9 percent, primarily reflecting lower mortgage servicing-related expenses, partially offset by higher compensation and employee benefits expense. The provision for credit losses for the mortgage banking division increased $15 million on a linked
quarter basis primarily due to an unfavorable change in the reserve allocation.
Wealth Management and Securities
Services provides private banking, financial advisory services, investment management, retail brokerage services, insurance, trust, custody and fund servicing through five businesses: Wealth Management, Corporate Trust Services, U.S. Bancorp
Asset Management, Institutional Trust & Custody and Fund Services. Wealth Management and Securities Services contributed $66 million of the Companys net income in the fourth quarter of 2014, compared with $43 million in the fourth
quarter of 2013 and $61 million in the third quarter of 2014. The business lines contribution was $23 million (53.5 percent) higher than the same quarter of 2013, principally due to an increase in total net revenue. Total net revenue increased
by $40 million (9.6 percent) year-over-year, driven by a $25 million (7.5 percent) increase in total noninterest income, reflecting the impact of account growth, improved market conditions, and business expansion. In addition, net interest income
increased by $15 million (17.6 percent), principally due
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
23
to higher average loan and deposit balances and an increase in the margin benefit of corporate trust deposits. Total noninterest expense increased by $2 million (.6 percent) primarily as a result
of higher professional services and compensation and employee benefits expense, including the impact of business expansion, partially offset by lower net shared services expense. The provision for credit losses increased $2 million compared with the
prior year quarter due to an unfavorable change in the reserve allocation.
The business lines contribution in the
fourth quarter of 2014 was $5 million (8.2 percent) higher than the prior quarter. Total net revenue increased on a linked quarter basis, reflecting an increase in net interest income of $4 million (4.2 percent), principally due to higher average
deposit balances and the impact of higher rates on the margin benefit from corporate trust deposits. In addition, an increase in total noninterest income of $5 million (1.4 percent) was due to higher trust and investment management fees, resulting
from improved market conditions and higher fees. Total noninterest expense was $6 million (1.7 percent) higher than the prior quarter as higher professional services expense was partially offset by lower compensation and employee benefits expense.
The provision for credit losses decreased $5 million (83.3 percent) on a linked quarter basis due to a favorable change in the reserve allocation.
Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate, government and purchasing card services, consumer lines of credit and merchant processing.
Payment Services contributed $294 million of the Companys net income in the fourth quarter of 2014, compared with $235 million in the fourth quarter of 2013 and $298 million in the third quarter of 2014. The $59 million (25.1 percent) increase
in the business lines contribution over the prior year was due to an increase in total net revenue and a lower provision for credit losses, partially offset by an increase in total noninterest expense. Total net revenue increased by $88
million (7.2 percent) year-over-year. Net interest income increased by $53 million (12.7 percent), primarily due to higher average loan balances and fees and improved loan rates. Total noninterest income was $35 million (4.3 percent) higher
year-over-year, due to higher merchant processing services revenue driven by increased product fees and transaction volumes, partially offset by lower rates, and an increase in credit and debit card revenue on higher transaction volumes. Total
noninterest expense increased by $21 million (3.4 percent) over the fourth quarter of 2013, primarily due to higher compensation and employee benefits expense and net shared services expense, including the impact of business initiatives, partially
offset by reductions in technology and communications expense and other intangibles expense. The provision for credit losses decreased by $23 million (10.6 percent) due to a favorable change in the reserve allocation and lower net charge-offs.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
24
Payment Services contribution in the fourth quarter of 2014 decreased $4 million
(1.3 percent) from the third quarter of 2014. Total net revenue increased $28 million (2.2 percent) on a linked quarter basis driven by higher net interest income. Net interest income increased by $27 million (6.1 percent) over the third quarter
mainly due to higher average loan balances and seasonally lower rebate costs on the Companys government card program. Total noninterest income increased by $1 million (.1 percent), reflecting an increase in credit and debit card revenue due to
higher transaction volumes, partially offset by lower corporate payment products revenue due to seasonally lower government-related transaction volumes. Total noninterest expense was $32 million (5.2 percent) higher on a linked quarter basis
primarily due to higher net shared services, professional services, and compensation expenses. The provision for credit losses was $3 million (1.6 percent) higher on a linked quarter basis due to higher net charge-offs and an unfavorable change in
the reserve allocation.
Treasury and Corporate Support includes the Companys investment portfolios, most covered
commercial and commercial real estate loans and related other real estate owned, funding, capital management, interest rate risk management, the net effect of transfer pricing related to average balances, income taxes not allocated to 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 recorded net income of $536 million in the fourth quarter of 2014, compared with $500 million in the fourth quarter of 2013 and $536 million in the third quarter of 2014. Net interest income increased by $35 million (6.0 percent) over the
fourth quarter of 2013, principally due to an increase in average balances in the investment securities portfolio and lower rates on short-term borrowings, partially offset by lower income from the run-off of acquired assets. Total noninterest
income increased by $178 million over the fourth quarter of last year, mainly due to gains on the sales of equity investments and higher commercial products revenue. Total noninterest expense increased by $51 million (18.1 percent), principally due
to accruals related to recent developments in several legal matters and charitable contributions, partially offset by a decrease in employee benefits expense resulting from lower pension costs and lower costs for investments in tax-advantaged
projects related to a change in accounting for affordable housing investments in the first quarter of 2014. The provision for credit losses was $6 million (60.0 percent) higher year-over-year, due to an increase in net charge-offs, partially offset
by a favorable change in the reserve allocation.
Net income in the fourth quarter of 2014 was flat on a linked
quarter basis, as an increase in total net revenue was offset by an increase in total noninterest expense and provision for credit losses. Total net
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
25
revenue was $154 million (20.2 percent) higher than the prior quarter primarily due to the Nuveen gain. A $160 million (93.0 percent) increase in total noninterest expense was primarily due to
seasonally higher costs related to investments in tax-advantaged projects, accruals related to recent developments in several legal matters and charitable contributions. The provision for credit losses was $9 million higher compared with the third
quarter of 2014 due to an increase in net charge-offs, partially offset by a favorable change in the reserve allocation.
Additional schedules containing more detailed information about the Companys business line results are available on the web at
usbank.com or by calling Investor Relations at 612-303-4328.
On Wednesday, January 21, 2015, at 8:30 a.m. CST, Richard K. Davis,
chairman, president and chief executive officer, and Andrew Cecere, vice chairman and chief operating officer, will host a conference call to review the financial results. The conference call will be available online and by telephone. The
presentation used during the call will be available at www.usbank.com. To access the webcast and presentation, go to www.usbank.com and click on About U.S. Bank. The Webcasts & Presentations link can be
found under the Investor/Shareholder information heading, which is at the left side of the bottom of the page. To access the conference call from locations within the United States and Canada, please dial 866-316-1409. Participants calling from outside the United States and Canada, please dial 706-634-9086. The conference ID number for all participants is 30798560. For those unable to participate during the
live call, a recording of the call will be available beginning approximately two hours after the conference call ends on Wednesday, January 21 and will be accessible through Wednesday, January 28 at 11:00 p.m. CST. To access the recorded
message within the United States and Canada, dial 855-859-2056. If calling from outside the United States and Canada, please dial 404-537-3406 to access the recording. The conference ID is 30798560.
Minneapolis-based U.S. Bancorp (USB), with $403 billion in assets as of December 31, 2014, is the parent company of U.S. Bank National
Association, the 5th largest commercial bank in the United States. The Company operates 3,176 banking offices in 25 states and 5,022 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment
services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at usbank.com.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
26
Forward-Looking Statements
The following information appears in accordance with 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, anticipated future revenue and expenses and the future
plans and prospects of U.S. Bancorp. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. A reversal or slowing of the current economic
recovery or another severe contraction could adversely affect U.S. Bancorps revenues and the values of its assets and liabilities. Global financial markets could experience a recurrence of significant turbulence, which could reduce the
availability of funding to certain financial institutions and lead to a tightening of credit, a reduction of business activity, and increased market volatility. Stress in the commercial real estate markets, as well as a downturn in the residential
real estate markets could cause credit losses and deterioration in asset values. In addition, U.S. Bancorps business and financial performance is likely to be negatively impacted by recently enacted and future legislation and regulation. U.S.
Bancorps results could also be adversely affected by deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing
those loans; deterioration in the value of securities held in its investment securities portfolio; legal and regulatory developments; increased competition from both banks and non-banks; changes in customer behavior and preferences; breaches in data
security; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and managements ability to effectively manage credit risk, residual value risk, market risk, operational risk,
compliance risk, strategic risk, interest rate risk, liquidity risk and reputational risk.
For discussion of these and other risks that may
cause actual results to differ from expectations, refer to U.S. Bancorps Annual Report on Form 10-K for the year ended December 31, 2013, on file with the Securities and Exchange Commission, including the sections entitled Risk
Factors and Corporate Risk Profile contained in Exhibit 13, and all subsequent filings with the Securities and Exchange Commission under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934. However, factors
other than these also could adversely affect U.S. Bancorps results, and the reader should not consider these factors to be a complete set of all potential risks or uncertainties. 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.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2014 Results
January 21, 2015
Page
27
Non-GAAP Financial Measures
In addition to capital ratios defined by banking regulators, 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 estimated for the Basel III fully implemented standardized approach, |
|
|
|
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches, and for additional information,
|
|
|
|
Tier 1 common equity to risk-weighted assets using Basel I definition. |
These measures are viewed by management as useful additional methods of reflecting the level of capital available to withstand unexpected market or economic conditions. Additionally, presentation of these
measures allows investors, analysts and banking regulators to assess the Companys capital position relative to other financial services companies. These measures differ from currently effective capital ratios defined by banking regulations
principally in that the numerator includes unrealized gains and losses related to available-for-sale securities and excludes preferred securities, including preferred stock, the nature and extent of which varies among different financial services
companies. These measures are not defined in generally accepted accounting principles (GAAP), or are not currently effective or defined in federal banking regulations. As a result, these measures disclosed by the Company may be
considered non-GAAP financial measures.
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 Companys
calculation of these non-GAAP financial measures.
###
(MORE)
U.S. Bancorp
Consolidated Statement of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
(Dollars and Shares in Millions, Except Per Share Data) |
|
December 31, |
|
|
December 31, |
|
(Unaudited) |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
2,541 |
|
|
$ |
2,595 |
|
|
$ |
10,113 |
|
|
$ |
10,277 |
|
Loans held for sale |
|
|
41 |
|
|
|
31 |
|
|
|
128 |
|
|
|
203 |
|
Investment securities |
|
|
488 |
|
|
|
409 |
|
|
|
1,866 |
|
|
|
1,631 |
|
Other interest income |
|
|
32 |
|
|
|
33 |
|
|
|
121 |
|
|
|
174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
|
3,102 |
|
|
|
3,068 |
|
|
|
12,228 |
|
|
|
12,285 |
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
117 |
|
|
|
128 |
|
|
|
465 |
|
|
|
561 |
|
Short-term borrowings |
|
|
59 |
|
|
|
83 |
|
|
|
263 |
|
|
|
353 |
|
Long-term debt |
|
|
182 |
|
|
|
180 |
|
|
|
725 |
|
|
|
767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
|
358 |
|
|
|
391 |
|
|
|
1,453 |
|
|
|
1,681 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
2,744 |
|
|
|
2,677 |
|
|
|
10,775 |
|
|
|
10,604 |
|
Provision for credit losses |
|
|
288 |
|
|
|
277 |
|
|
|
1,229 |
|
|
|
1,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for credit losses |
|
|
2,456 |
|
|
|
2,400 |
|
|
|
9,546 |
|
|
|
9,264 |
|
Noninterest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit and debit card revenue |
|
|
272 |
|
|
|
263 |
|
|
|
1,021 |
|
|
|
965 |
|
Corporate payment products revenue |
|
|
174 |
|
|
|
166 |
|
|
|
724 |
|
|
|
706 |
|
Merchant processing services |
|
|
384 |
|
|
|
367 |
|
|
|
1,511 |
|
|
|
1,458 |
|
ATM processing services |
|
|
80 |
|
|
|
79 |
|
|
|
321 |
|
|
|
327 |
|
Trust and investment management fees |
|
|
322 |
|
|
|
297 |
|
|
|
1,252 |
|
|
|
1,139 |
|
Deposit service charges |
|
|
180 |
|
|
|
177 |
|
|
|
693 |
|
|
|
670 |
|
Treasury management fees |
|
|
136 |
|
|
|
130 |
|
|
|
545 |
|
|
|
538 |
|
Commercial products revenue |
|
|
219 |
|
|
|
243 |
|
|
|
854 |
|
|
|
859 |
|
Mortgage banking revenue |
|
|
235 |
|
|
|
231 |
|
|
|
1,009 |
|
|
|
1,356 |
|
Investment products fees |
|
|
49 |
|
|
|
45 |
|
|
|
191 |
|
|
|
178 |
|
Securities gains (losses), net |
|
|
1 |
|
|
|
1 |
|
|
|
3 |
|
|
|
9 |
|
Other |
|
|
318 |
|
|
|
157 |
|
|
|
1,040 |
|
|
|
569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income |
|
|
2,370 |
|
|
|
2,156 |
|
|
|
9,164 |
|
|
|
8,774 |
|
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
|
|
1,151 |
|
|
|
1,103 |
|
|
|
4,523 |
|
|
|
4,371 |
|
Employee benefits |
|
|
245 |
|
|
|
275 |
|
|
|
1,041 |
|
|
|
1,140 |
|
Net occupancy and equipment |
|
|
248 |
|
|
|
240 |
|
|
|
987 |
|
|
|
949 |
|
Professional services |
|
|
132 |
|
|
|
118 |
|
|
|
414 |
|
|
|
381 |
|
Marketing and business development |
|
|
129 |
|
|
|
103 |
|
|
|
382 |
|
|
|
357 |
|
Technology and communications |
|
|
219 |
|
|
|
209 |
|
|
|
863 |
|
|
|
848 |
|
Postage, printing and supplies |
|
|
86 |
|
|
|
80 |
|
|
|
328 |
|
|
|
310 |
|
Other intangibles |
|
|
51 |
|
|
|
56 |
|
|
|
199 |
|
|
|
223 |
|
Other |
|
|
543 |
|
|
|
498 |
|
|
|
1,978 |
|
|
|
1,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
|
2,804 |
|
|
|
2,682 |
|
|
|
10,715 |
|
|
|
10,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
2,022 |
|
|
|
1,874 |
|
|
|
7,995 |
|
|
|
7,764 |
|
Applicable income taxes |
|
|
521 |
|
|
|
403 |
|
|
|
2,087 |
|
|
|
2,032 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
1,501 |
|
|
|
1,471 |
|
|
|
5,908 |
|
|
|
5,732 |
|
Net (income) loss attributable to noncontrolling interests |
|
|
(13 |
) |
|
|
(15 |
) |
|
|
(57 |
) |
|
|
104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to U.S. Bancorp |
|
$ |
1,488 |
|
|
$ |
1,456 |
|
|
$ |
5,851 |
|
|
$ |
5,836 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to U.S. Bancorp common shareholders |
|
$ |
1,420 |
|
|
$ |
1,389 |
|
|
$ |
5,583 |
|
|
$ |
5,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
$ |
.79 |
|
|
$ |
.76 |
|
|
$ |
3.10 |
|
|
$ |
3.02 |
|
Diluted earnings per common share |
|
$ |
.79 |
|
|
$ |
.76 |
|
|
$ |
3.08 |
|
|
$ |
3.00 |
|
Dividends declared per common share |
|
$ |
.245 |
|
|
$ |
.230 |
|
|
$ |
.965 |
|
|
$ |
.885 |
|
Average common shares outstanding |
|
|
1,787 |
|
|
|
1,821 |
|
|
|
1,803 |
|
|
|
1,839 |
|
Average diluted common shares outstanding |
|
|
1,796 |
|
|
|
1,832 |
|
|
|
1,813 |
|
|
|
1,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 28
U.S. Bancorp
Consolidated Ending Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
|
(Dollars in Millions) |
|
2014 |
|
|
2013 |
|
Assets |
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
10,654 |
|
|
$ |
8,477 |
|
Investment securities |
|
|
|
|
|
|
|
|
Held-to-maturity |
|
|
44,974 |
|
|
|
38,920 |
|
Available-for-sale |
|
|
56,069 |
|
|
|
40,935 |
|
Loans held for sale |
|
|
4,792 |
|
|
|
3,268 |
|
Loans |
|
|
|
|
|
|
|
|
Commercial |
|
|
80,377 |
|
|
|
70,033 |
|
Commercial real estate |
|
|
42,795 |
|
|
|
39,885 |
|
Residential mortgages |
|
|
51,619 |
|
|
|
51,156 |
|
Credit card |
|
|
18,515 |
|
|
|
18,021 |
|
Other retail |
|
|
49,264 |
|
|
|
47,678 |
|
|
|
|
|
|
|
|
|
|
Total loans, excluding covered loans |
|
|
242,570 |
|
|
|
226,773 |
|
Covered loans |
|
|
5,281 |
|
|
|
8,462 |
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
247,851 |
|
|
|
235,235 |
|
Less allowance for loan losses |
|
|
(4,039 |
) |
|
|
(4,250 |
) |
|
|
|
|
|
|
|
|
|
Net loans |
|
|
243,812 |
|
|
|
230,985 |
|
Premises and equipment |
|
|
2,618 |
|
|
|
2,606 |
|
Goodwill |
|
|
9,389 |
|
|
|
9,205 |
|
Other intangible assets |
|
|
3,162 |
|
|
|
3,529 |
|
Other assets |
|
|
27,059 |
|
|
|
26,096 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
402,529 |
|
|
$ |
364,021 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders Equity |
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
77,323 |
|
|
$ |
76,941 |
|
Interest-bearing |
|
|
177,452 |
|
|
|
156,165 |
|
Time deposits greater than $100,000 |
|
|
27,958 |
|
|
|
29,017 |
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
|
282,733 |
|
|
|
262,123 |
|
Short-term borrowings |
|
|
29,893 |
|
|
|
27,608 |
|
Long-term debt |
|
|
32,260 |
|
|
|
20,049 |
|
Other liabilities |
|
|
13,475 |
|
|
|
12,434 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
358,361 |
|
|
|
322,214 |
|
Shareholders equity |
|
|
|
|
|
|
|
|
Preferred stock |
|
|
4,756 |
|
|
|
4,756 |
|
Common stock |
|
|
21 |
|
|
|
21 |
|
Capital surplus |
|
|
8,313 |
|
|
|
8,216 |
|
Retained earnings |
|
|
42,530 |
|
|
|
38,667 |
|
Less treasury stock |
|
|
(11,245 |
) |
|
|
(9,476 |
) |
Accumulated other comprehensive income (loss) |
|
|
(896 |
) |
|
|
(1,071 |
) |
|
|
|
|
|
|
|
|
|
Total U.S. Bancorp shareholders equity |
|
|
43,479 |
|
|
|
41,113 |
|
Noncontrolling interests |
|
|
689 |
|
|
|
694 |
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
44,168 |
|
|
|
41,807 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
402,529 |
|
|
$ |
364,021 |
|
|
|
|
|
|
|
|
|
|
Page 29
U.S. Bancorp
Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
(Dollars in Millions, Unaudited) |
|
2014 |
|
|
2014 |
|
|
2014 |
|
|
2014 |
|
|
2013 |
|
Total equity |
|
$ |
44,168 |
|
|
$ |
43,829 |
|
|
$ |
43,386 |
|
|
$ |
42,743 |
|
|
$ |
41,807 |
|
Preferred stock |
|
|
(4,756 |
) |
|
|
(4,756 |
) |
|
|
(4,756 |
) |
|
|
(4,756 |
) |
|
|
(4,756 |
) |
Noncontrolling interests |
|
|
(689 |
) |
|
|
(688 |
) |
|
|
(686 |
) |
|
|
(689 |
) |
|
|
(694 |
) |
Goodwill (net of deferred tax liability) (1) |
|
|
(8,403 |
) |
|
|
(8,503 |
) |
|
|
(8,548 |
) |
|
|
(8,352 |
) |
|
|
(8,343 |
) |
Intangible assets, other than mortgage servicing rights |
|
|
(824 |
) |
|
|
(877 |
) |
|
|
(925 |
) |
|
|
(804 |
) |
|
|
(849 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity (a) |
|
|
29,496 |
|
|
|
29,005 |
|
|
|
28,471 |
|
|
|
28,142 |
|
|
|
27,165 |
|
Tangible common equity (as calculated above) |
|
|
29,496 |
|
|
|
29,005 |
|
|
|
28,471 |
|
|
|
28,142 |
|
|
|
27,165 |
|
Adjustments (2) |
|
|
172 |
|
|
|
187 |
|
|
|
224 |
|
|
|
239 |
|
|
|
224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital estimated for the Basel III fully implemented standardized and advanced approaches
(b) |
|
|
29,668 |
|
|
|
29,192 |
|
|
|
28,695 |
|
|
|
28,381 |
|
|
|
27,389 |
|
Tier 1 capital, determined in accordance with prescribed regulatory requirements using Basel I definition |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,386 |
|
Preferred stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,756 |
) |
Noncontrolling interests, less preferred stock not eligible for Tier 1 capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(688 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 common equity using Basel I definition (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,942 |
|
Total assets |
|
|
402,529 |
|
|
|
391,284 |
|
|
|
389,065 |
|
|
|
371,289 |
|
|
|
364,021 |
|
Goodwill (net of deferred tax liability) (1) |
|
|
(8,403 |
) |
|
|
(8,503 |
) |
|
|
(8,548 |
) |
|
|
(8,352 |
) |
|
|
(8,343 |
) |
Intangible assets, other than mortgage servicing rights |
|
|
(824 |
) |
|
|
(877 |
) |
|
|
(925 |
) |
|
|
(804 |
) |
|
|
(849 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible assets (d) |
|
|
393,302 |
|
|
|
381,904 |
|
|
|
379,592 |
|
|
|
362,133 |
|
|
|
354,829 |
|
Risk-weighted assets, determined in accordance with prescribed regulatory requirements (3) (e) |
|
|
317,398 |
* |
|
|
311,914 |
|
|
|
309,929 |
|
|
|
302,841 |
|
|
|
297,919 |
|
Adjustments (4) |
|
|
11,110 |
* |
|
|
12,837 |
|
|
|
12,753 |
|
|
|
13,238 |
|
|
|
13,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets estimated for the Basel III fully implemented standardized approach (f) |
|
|
328,508 |
* |
|
|
324,751 |
|
|
|
322,682 |
|
|
|
316,079 |
|
|
|
311,631 |
|
Risk-weighted assets, determined in accordance with prescribed transitional advanced approaches regulatory
requirements |
|
|
248,596 |
* |
|
|
243,909 |
|
|
|
241,929 |
|
|
|
|
|
|
|
|
|
Adjustments (5) |
|
|
3,270 |
* |
|
|
3,443 |
|
|
|
3,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets estimated for the Basel III fully implemented advanced approaches (g) |
|
|
251,866 |
* |
|
|
247,352 |
|
|
|
245,312 |
|
|
|
|
|
|
|
|
|
Ratios * |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets (a)/(d) |
|
|
7.5 |
% |
|
|
7.6 |
% |
|
|
7.5 |
% |
|
|
7.8 |
% |
|
|
7.7 |
% |
Tangible common equity to risk-weighted assets (a)/(e) |
|
|
9.3 |
|
|
|
9.3 |
|
|
|
9.2 |
|
|
|
9.3 |
|
|
|
9.1 |
|
Tier 1 common equity to risk-weighted assets using Basel I definition (c)/(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.4 |
|
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach
(b)/(f) |
|
|
9.0 |
|
|
|
9.0 |
|
|
|
8.9 |
|
|
|
9.0 |
|
|
|
8.8 |
|
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches
(b)/(g) |
|
|
11.8 |
|
|
|
11.8 |
|
|
|
11.7 |
|
|
|
|
|
|
|
|
|
* |
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 beginning March 31, 2014.
|
(2) |
Includes net losses on cash flow hedges included in accumulated other comprehensive income and other adjustments. |
(3) |
2014 amounts calculated under the Basel III transitional standardized approach; December 31, 2013, calculated under Basel I. |
(4) |
Includes higher risk-weighting for unfunded loan commitments, investment securities, residential mortgages, mortgage servicing rights and other adjustments.
|
(5) |
Primarily reflects higher risk-weighting for mortgage servicing rights. |
|
Richard K. Davis
Chairman, President and CEO
Andy Cecere
Vice Chairman and COO
U.S. Bancorp
4Q14 Earnings
Conference Call
U.S. Bancorp
4Q14 Earnings
Conference Call
January 21, 2015
Exhibit 99.2 |
|
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
made.
These
forward-looking
statements
cover,
among
other
things,
anticipated
future
revenue
and
expenses
and
the
future
plans
and
prospects
of
U.S.
Bancorp.
Forward-looking
statements
involve
inherent
risks
and
uncertainties,
and
important
factors could cause actual results to differ materially from those
anticipated. A reversal or slowing of the current economic recovery or another
severe
contraction
could
adversely
affect
U.S.
Bancorps
revenues
and
the
values
of
its
assets
and
liabilities.
Global
financial
markets
could
experience a recurrence of significant turbulence, which could reduce the
availability of funding to certain financial institutions and lead to a
tightening of credit, a reduction of business activity, and increased market
volatility. Stress in the commercial real estate markets, as well as a
downturn
in
the
residential
real
estate
markets,
could
cause
credit
losses
and
deterioration
in
asset
values.
In
addition,
U.S.
Bancorps
business
and financial performance is likely to be negatively impacted by
recently enacted and future legislation and regulation. U.S. Bancorps
results could also be adversely affected by deterioration in general
business and economic conditions; changes in interest rates; deterioration in the credit quality
of its loan portfolios or in the value of the collateral securing those loans;
deterioration in the value of securities held in its investment securities
portfolio; legal and regulatory developments; increased competition from both banks
and non-banks; changes in customer behavior and preferences; breaches in
data security; effects of mergers and acquisitions and related integration; effects of critical accounting policies and
judgments; and managements ability to effectively manage credit risk,
residual value risk, market risk, operational risk, interest rate risk and
liquidity risk.
For discussion of these and other risks that may cause actual results to differ
from expectations, refer to U.S. Bancorps Annual Report on
Form 10-K for the year ended December 31, 2013, on file with the Securities and
Exchange Commission, including the sections entitled Risk
Factors
and
Corporate
Risk
Profile
contained
in
Exhibit
13,
and
all
subsequent
filings
with
the
Securities
and
Exchange
Commission
under
Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934.
Forward-looking statements speak only as of the date they are made, 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.
Bancorps
performance.
The
calculations
of
these
measures
are
provided within or in the appendix of the presentation. 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. |
|
3
4Q14 Earnings
Conference Call
2014 Full Year Highlights
Record net income of $5.9 billion; $3.08 per diluted common share
Industry-leading profitability measures, including ROA of 1.54%, ROCE of 14.7%
and efficiency ratio of 53.2%
Average loan growth of 6.3% vs. 2013 and average deposit growth of 6.5%
vs. 2013
Net charge-offs declined 8.9% vs. 2013
Nonperforming assets declined 11.2% vs. 2013
Capital generation continues to reinforce capital position
Common equity tier 1 capital ratio of 9.0% estimated for the Basel III fully
implemented standardized approach
Repurchased 54 million shares of common stock during 2014
In total, returned $4.0 billion, or 72%, of our earnings in 2014
to shareholders |
|
4
4Q14 Earnings
Conference Call
4Q14 Highlights
Net income of $1.5 billion; $0.79 per diluted common share
Positive operating leverage on a year-over-year basis
Average loan growth of 5.9% vs. 4Q13 (5.5% excluding Charter One
acquisition)
and 1.0% vs. 3Q14
Average deposit growth of 7.2% vs. 4Q13 (5.5% excluding Charter One
acquisition) and 1.6% vs. 3Q14
Net charge-offs declined 8.3% vs. 3Q14
Nonperforming assets declined 6.0% vs. 3Q14
Capital generation continues to reinforce capital position
Common equity tier 1 capital ratio of 9.0% estimated for the Basel III fully
implemented standardized approach
Common
equity
tier
1
capital
ratio
of
9.7%;
Tier
1
capital
ratio
of
11.3%
Returned 66% of earnings to shareholders in 4Q14
Repurchased 11 million shares of common stock during the quarter
|
|
5
4Q14 Earnings
Conference Call
Performance Ratios
Return on Average Common Equity
and Return on Average Assets
Efficiency Ratio and
Net Interest Margin
Return on Avg Common Equity
Return on Avg Assets
Efficiency Ratio
Net Interest Margin
* Excluding $214 million gain on Visa Inc. Class B common stock sale and $200
million FHA DOJ settlement ** Excluding $124 million gain related to an
equity interest in Nuveen and $88 million expense for charitable contributions and legal accruals
Efficiency ratio computed as noninterest expense divided by the sum of net interest
income on a taxable-equivalent basis and noninterest income excluding
securities gains (losses) net |
|
6
4Q14 Earnings
Conference Call
* Gain on Visa Inc. Class B common stock sale
** Gain related to an equity interest in Nuveen
Taxable-equivalent basis
Revenue Growth
Year-Over-Year Change
(4.4%)
(1.2%)
4.9%
2.0%
5.7%
$ in millions |
|
7
4Q14 Earnings
Conference Call
Loan and Deposit Growth
Year-Over-Year Growth
Average Balances
$ in billions
4Q14 Acquisition Adjusted
Loan Growth = 5.5%
Deposit Growth = 5.5% |
|
8
4Q14 Earnings
Conference Call
Credit Quality
* Note: The loss sharing agreement for the commercial and commercial real estate
loans acquired from the FDIC, which comprised the majority of the
nonperforming covered assets, expired at the end of the fourth quarter of 2014
Net Charge-offs
Nonperforming Assets*
$ in millions
Net Charge-offs (Left Scale)
NCOs to Avg Loans (Right Scale)
Nonperforming Assets (Left Scale)
NPAs to Loans plus ORE (Right Scale) |
|
9
4Q14 Earnings
Conference Call
Earnings Summary
$ and shares in millions, except per-share data
Taxable-equivalent basis
FY
FY
4Q14
3Q14
4Q13
vs 3Q14
vs 4Q13
2014
2013
% B/(W)
Net Interest Income
2,799
$
2,748
$
2,733
$
1.9
2.4
10,997
$
10,828
$
1.6
Noninterest Income
2,370
2,242
2,156
5.7
9.9
9,164
8,774
4.4
Total Revenue
5,169
4,990
4,889
3.6
5.7
20,161
19,602
2.9
Noninterest Expense
2,804
2,614
2,682
(7.3)
(4.5)
10,715
10,274
(4.3)
Operating Income
2,365
2,376
2,207
(0.5)
7.2
9,446
9,328
1.3
Net Charge-offs
308
336
312
8.3
1.3
1,334
1,465
8.9
Excess Provision
(20)
(25)
(35)
(20.0)
(42.9)
(105)
(125)
(16.0)
Income before Taxes
2,077
2,065
1,930
0.6
7.6
8,217
7,988
2.9
Applicable Income Taxes
576
579
459
0.5
(25.5)
2,309
2,256
(2.3)
Noncontrolling Interests
(13)
(15)
(15)
13.3
13.3
(57)
104
nm
Net Income
1,488
1,471
1,456
1.2
2.2
5,851
5,836
0.3
Preferred Dividends/Other
68
66
67
(3.0)
(1.5)
268
284
5.6
NI to Common
1,420
$
1,405
$
1,389
$
1.1
2.2
5,583
$
5,552
$
0.6
Diluted EPS
0.79
$
0.78
$
0.76
$
1.3
3.9
3.08
$
3.00
$
2.7
Average Diluted Shares
1,796
1,807
1,832
0.6
2.0
1,813
1,849
1.9
% B/(W) |
|
10
4Q14 Earnings
Conference Call
4Q14 Results -
Key Drivers
vs. 4Q13
Net Revenue increase of 5.7% (3.2% increase excluding notable item)
Net interest income increase of 2.4%; net interest margin
of 3.14% vs. 3.40% in 4Q13
Noninterest income increase of 9.9% (4.2% increase
excluding notable item)
Noninterest expense increase of 4.5% (1.3% increase
excluding notable items)
Provision for credit losses increased by $11 million
Net charge-offs lower by $4 million, or 1.3%
Provision lower than NCOs by $20 million vs. $35 million in 4Q13
vs. 3Q14
Net Revenue increase of 3.6% (1.1% increase excluding notable item)
Net interest income increase of 1.9%; net interest margin of 3.14% vs. 3.16% in
3Q14
Noninterest income increase of 5.7% (0.2% increase excluding notable item)
Noninterest expense increase of 7.3% (3.9% increase excluding notable items)
Provision for credit losses lower by $23 million
Net charge-offs decreased by $28 million, or 8.3%
Provision lower than NCOs by $20 million vs. $25 million in 3Q14
$ in millions
4Q14
Revenue Items
Nuveen gain
124
$
Expense Items
Charitable contributions
35
$
Accruals for legal matters
53
$
Notable Items |
|
11
4Q14 Earnings
Conference Call
Capital Position
RWA = risk-weighted assets
*
2014
amounts
and
ratios
calculated
under
the
Basel
III
transitional
standardized
approach;
December
31,
2013,
under
Basel
I
$ in billions
4Q14
3Q14
2Q14
1Q14
4Q13
Total U.S. Bancorp shareholders' equity
43.5
$
43.1
$
42.7
$
42.1
$
41.1
$
Standardized Approach
Basel III transitional standardized approach/Basel I *
Common equity tier 1 capital
30.9
30.2
29.8
29.5
27.9
Tier 1 capital
36.0
35.4
34.9
34.6
33.4
Total risk-based capital
43.2
42.5
41.0
40.7
39.3
Common equity tier 1 capital ratio
9.7%
9.7%
9.6%
9.7%
9.4%
Tier 1 capital ratio
11.3%
11.3%
11.3%
11.4%
11.2%
Total risk-based capital ratio
13.6%
13.6%
13.2%
13.5%
13.2%
Leverage ratio
9.3%
9.4%
9.6%
9.7%
9.6%
Common equity tier 1 capital to RWA estimated for the
Basel III fully implemented standardized approach
9.0%
9.0%
8.9%
9.0%
8.8%
Advanced Approaches
Common equity tier 1 capital to RWA for the Basel III
transitional advanced approaches
12.4%
12.4%
12.3%
Common equity tier 1 capital to RWA estimated for the
Basel III fully implemented advanced approaches
11.8%
11.8%
11.7%
Tangible common equity ratio
7.5%
7.6%
7.5%
7.8%
7.7%
Tangible common equity as a % of RWA
9.3%
9.3%
9.2%
9.3%
9.1% |
|
12
4Q14 Earnings
Conference Call |
|
13
4Q14 Earnings
Conference Call
Appendix |
|
14
4Q14 Earnings
Conference Call
Average Loans
Key Points
$ in billions
vs. 4Q13
Average total loans grew by $13.6 billion, or 5.9%
(5.5% excluding Charter One acquisition)
Average total loans, excluding covered loans,
were higher by 7.1%
Average total commercial loans increased $10.7
billion, or 15.5%; average commercial real estate
loans increased $1.6 billion, or 4.2%
vs. 3Q14
Average total loans grew by $2.6 billion, or 1.0%
Average total loans, excluding covered loans,
were higher by 1.2%
Average total commercial loans increased $2.3
billion, or 2.9%; average commercial real estate
loans increased $0.1 billion, or 0.3%
Year-Over-Year Growth
5.7%
6.0%
6.8%
6.3%
5.9%
Covered
Commercial
CRE
Res Mtg
Retail
Credit Card
Average Loans |
|
15
4Q14 Earnings
Conference Call
Average Deposits
Average Deposits
Key Points
$ in billions
vs. 4Q13
Average total deposits increased by $18.6
billion, or 7.2% (5.5% excluding Charter One
acquisition)
Average low-cost deposits (NIB, interest
checking, money market and savings)
increased by $20.7 billion, or 9.6%
vs. 3Q14
Average total deposits increased by $4.5
billion, or 1.6%
Average low-cost deposits increased by $5.6
billion, or 2.4%
Year-Over-Year Growth
5.4%
5.1%
6.0%
7.4%
7.2%
Time
Money Market
Checking and Savings
Noninterest-bearing |
|
16
4Q14 Earnings
Conference Call
Net Interest Income
Net Interest Income
Key Points
$ in millions
Taxable-equivalent basis
vs. 4Q13
Average earning assets grew by $35.4 billion,
or 11.1%
Net interest margin lower by 26 bps (3.14%
vs. 3.40%) driven by:
Lower reinvestment rates on investment securities,
as well as growth in the investment portfolio at
lower average rates, lower loan fees, and lower
rates on new loans
Partially offset by lower funding costs
vs. 3Q14
Average earning assets grew by $8.5 billion,
or 2.5%
Net interest margin lower by 2 bps (3.14% vs.
3.16%) driven by:
Growth in lower rate investment securities
Partially offset by interest recoveries
Year-Over-Year Change
(1.8%)
(0.1%)
2.7%
1.3%
2.4% |
|
17
4Q14 Earnings
Conference Call
Noninterest Income
Noninterest Income
Key Points
$ in millions
Payments = credit and debit card revenue, corporate payment products revenue and
merchant processing; Service charges = deposit service charges,
treasury management fees and ATM processing services vs. 4Q13
Noninterest income increased by $214 million, or
9.9%, driven by:
Higher trust and investment management fees (8.4% increase)
due to account growth, improved market conditions and
business expansion
Higher merchant processing services revenue (4.6% increase)
due to an increase in product fees and higher volumes, partially
offset by lower rates; higher credit and debit card revenue (3.4%
increase) and corporate payment products revenue (4.8%
increase) due to higher transaction volumes
Higher other income due to higher equity investment gains and
increased revenue from tax-advantaged projects
Lower commercial products revenue (9.9% decrease) due to
lower tax-advantaged project syndication fees
vs. 3Q14
Noninterest income increased by $128 million, or
5.7%, driven by:
Higher credit and debit card revenue (8.4% increase) due to
seasonally higher sales volumes
Higher commercial products revenue (4.8% increase) due to
higher loan and tax-advantaged project syndication fees
Higher trust and investment management fees (2.2% increase)
due to improved market conditions and higher fees
Higher other income primarily due to the Nuveen gain and
higher revenue from tax-advantaged projects
Lower corporate payments revenue (10.8% decrease) due to
seasonally higher 3Q government-related transaction volumes
Mortgage revenue decrease of $25 million
Year-Over-Year Change
(7.4%)
(2.6%)
7.4%
3.0%
9.9%
All Other
Mortgage
Service Charges
Trust and Inv Mgmt
Payments
4Q13
1Q14
2Q14
3Q14
4Q14
Nuveen Gain
-
$
-
$
-
$
-
$
124
$
Visa Gain
-
-
214
-
-
Total
-
$
-
$
$ 214
-
$
124
$
Notable Noninterest Income Items |
|
18
4Q14 Earnings
Conference Call
Noninterest Expense
Noninterest Expense
Key Points
$ in millions
vs. 4Q13
Noninterest expense was higher by $122 million, or
4.5%, driven by:
Higher compensation expense (4.4% increase) reflecting the
impact of merit increases, acquisitions, and higher staffing for
risk and compliance activities
Higher marketing and business development expense (25.2%
increase) due to charitable contributions
Higher professional services expense (11.9% increase) due to
higher costs across a majority of the lines of business
Higher other expense primarily due to the legal accruals
Partially offset by a reduction in employee benefits (10.9%
decrease) driven by lower pension costs
vs. 3Q14
Noninterest expense was higher by $190 million, or
7.3%, driven by:
Higher marketing and business development expense (65.4%
increase) primarily due to charitable contributions and
advertising costs
Higher professional services expense (29.4% increase) due to
seasonally higher costs across a majority of the lines of
business including risk and compliance activities
Higher other expense primarily due to seasonally higher costs
related to investments in tax-advantaged projects and the legal
accruals
Year-Over-Year Change
(0.1%)
3.0%
7.7%
1.9%
4.5%
All Other
Tech and Communications
Prof Svcs, Marketing and PPS
Occupancy and Equipment
Compensation and Benefits
4Q13
1Q14
2Q14
3Q14
4Q14
Charitable contributions
-
$
-
$
-
$
-
35
$
Accruals for legal matters
-
-
-
-
53
FHA DOJ settlement
-
-
200
-
-
Total
-
$
-
$
200
$
-
$
88
$
Notable Noninterest Expense Items |
|
19
4Q14 Earnings
Conference Call
Credit Quality
-
Commercial Loans
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Continued new client growth led to 3.0% linked quarter loan growth and 16.7%
year-over-year growth; utilization rates improved modestly
Net charge-offs below historic norms and were largely unchanged
Nonperforming loans and delinquencies continued at historically low levels
4Q13
3Q14
4Q14
Average Loans
$63,714
$72,190
$74,333
30-89 Delinquencies
0.33%
0.23%
0.27%
90+ Delinquencies
0.08%
0.05%
0.05%
Nonperforming Loans
0.19%
0.22%
0.13%
$ in millions |
|
20
4Q14 Earnings
Conference Call
Credit Quality
-
Commercial Leases
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Commercial lease balances increased slightly
Gross
charge-offs
declined
while
recoveries
increased
leading
to
a
modest
net
recovery
Nonperforming loans and delinquencies continued at modest levels
4Q13
3Q14
4Q14
Average Loans
$5,210
$5,155
$5,292
30-89 Delinquencies
0.85%
0.83%
0.78%
90+ Delinquencies
0.00%
0.00%
0.00%
Nonperforming Loans
0.23%
0.23%
0.24%
$ in millions |
|
21
4Q14 Earnings
Conference Call
Credit Quality
-
Commercial Real Estate
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Average loans increased 0.3% on a linked quarter basis and 4.2%
year-over-year Credit quality is stable at low levels;
non-performing loans were stable quarter-over-quarter Net
recovery ratio of 0.10% 4Q13
3Q14
4Q14
Average Loans
$39,318
$40,839
$40,966
30-89 Delinquencies
0.24%
0.12%
0.26%
90+ Delinquencies
0.07%
0.03%
0.05%
Nonperforming Loans
0.76%
0.59%
0.61%
Performing TDRs*
$390
$284
$365
$ in millions
*
TDR
=
troubled
debt
restructuring |
|
22
4Q14 Earnings
Conference Call
Credit Quality
-
Residential Mortgage
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Modest growth in high-quality originations (weighted average FICO 756, weighted
average LTV 70%), as average loans increased 2.2% year over year
82% of the balances have been originated since the beginning of 2009; the
origination quality metrics and performance to date have significantly
outperformed prior vintages with similar seasoning
4Q13
3Q14
4Q14
Average Loans
$50,732
$51,994
$51,872
30-89 Delinquencies
0.70%
0.46%
0.43%
90+ Delinquencies
0.65%
0.41%
0.40%
Nonperforming Loans
1.51%
1.62%
1.67%
$ in millions
**
Excludes
GNMA
loans,
whose
repayments
are
insured
by
the
FHA
or
guaranteed
by
the
Department
of
VA
($2,244
million
4Q14) |
|
23
4Q14 Earnings
Conference Call
4Q13
3Q14
4Q14
Average Loans
$17,366
$17,753
$17,990
30-89 Delinquencies
1.25%
1.23%
1.24%
90+ Delinquencies
1.17%
1.10%
1.13%
Nonperforming Loans
0.43%
0.22%
0.16%
Credit Quality -
Credit Card
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Average loans increased 1.3% on a linked quarter basis; up 3.6%
year-over-year Delinquencies and losses have stabilized near
historically low levels with some seasonal impacts on delinquencies
Nonperforming loans continued to decline
$ in millions |
|
24
4Q14 Earnings
Conference Call
Credit Quality -
Home Equity
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
High-quality originations (weighted average FICO on commitments was 756,
weighted average CLTV
70%)
originated
primarily
through
the
retail
branch
network
to
existing
bank
customers
on
their primary residence
Net charge-offs ratio declined on a linked quarter and year-over-year
basis 4Q13
3Q14
4Q14
Average Loans
$15,488
$15,704
$15,853
30-89 Delinquencies
0.66%
0.51%
0.54%
90+ Delinquencies
0.32%
0.26%
0.26%
Nonperforming Loans
1.08%
1.05%
1.07%
Subprime: 2%
Wtd Avg LTV**: 90%
NCO: 4.92%
$ in millions
Prime: 95%
Wtd Avg LTV**: 72%
NCO: 0.37%
** LTV at origination
Other: 3%
Wtd Avg LTV**: 72%
NCO: 0.00% |
|
25
4Q14 Earnings
Conference Call
Credit Quality -
Retail Leasing
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Year-over-year growth (1.6%) driven by high-quality originations
(weighted average FICO 788) Delinquencies remained relatively stable at very
low levels Strong used auto values continued to contribute to historically
low net charge-offs 4Q13
3Q14
4Q14
Average Loans
$5,847
$5,991
$5,939
30-89 Delinquencies
0.18%
0.14%
0.18%
90+ Delinquencies
0.00%
0.02%
0.02%
Nonperforming Loans
0.02%
0.02%
0.02%
$ in millions
* Manheim Used Vehicle Value Index source: www.manheimconsulting.com, January 1995
= 100, quarter value = average of monthly ending values |
|
26
4Q14 Earnings
Conference Call
Credit Quality -
Other Retail
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Auto
loan
growth
continued
to
offset
declines
in
student
lending
loan
balances
Net charge-offs and delinquencies remained low on a linked quarter and
year-over-year basis 4Q13
3Q14
4Q14
Average Loans
$26,059
$27,003
$27,317
30-89 Delinquencies
0.50%
0.49%
0.51%
90+ Delinquencies
0.14%
0.13%
0.12%
Nonperforming Loans
0.09%
0.06%
0.06%
$ in millions |
|
27
4Q14 Earnings
Conference Call
Credit Quality -
Auto Loans
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Continued growth in auto loans driven by high-quality originations in the
Indirect Channel (weighted average FICO 766)
Net charge-offs increased due to seasonality as well as growth initiatives
beginning to mature 4Q13
3Q14
4Q14
Average Loans
$13,409
$14,404
$14,644
30-89 Delinquencies
0.34%
0.41%
0.45%
90+ Delinquencies
0.04%
0.05%
0.03%
Nonperforming Loans
0.02%
0.03%
0.03%
$ in millions
Auto Loans are included in Other Retail category
Direct: 6%
Wtd Avg FICO: 748
NCO: 0.15%
Indirect: 94%
Wtd Avg FICO: 763
NCO: 0.34% |
|
28
4Q14 Earnings
Conference Call
Mortgage Repurchase
Mortgages Repurchased and Make-whole Payments
Mortgage Representation and Warranties Reserve
$ in millions
4Q14
3Q14
2Q14
1Q14
4Q13
Beginning Reserve
$62
$69
$75
$83
$176
Net Realized Losses
(15)
(1)
(2)
(10)
(63)
Change in Reserve
(1)
(6)
(4)
2
(30)
Ending Reserve
$46
$62
$69
$75
$83
Mortgages
repurchased
and make-whole
payments
$14
$19
$36
$36
$32
Repurchase activity lower than
peers due to:
Conservative credit and
underwriting culture
Disciplined origination process -
primarily conforming
loans
( 95% sold to GSEs)
Do not participate in private
placement securitization market
Outstanding repurchase and
make-whole requests balance
= $19 million |
|
29
4Q14 Earnings
Conference Call
Non-GAAP Financial Measures
(Dollars in Millions, Unaudited)
4Q14
3Q14
2Q14
1Q14
4Q13
Total equity
$44,168
$43,829
$43,386
$42,743
$41,807
Preferred stock
(4,756)
(4,756)
(4,756)
(4,756)
(4,756)
Noncontrolling interests
(689)
(688)
(686)
(689)
(694)
Goodwill (net of deferred tax liability) (1)
(8,403)
(8,503)
(8,548)
(8,352)
(8,343)
Intangible assets, other than mortgage servicing rights
(824)
(877)
(925)
(804)
(849)
Tangible common equity (a)
29,496
29,005
28,471
28,142
27,165
Tangible common equity (as calculated above)
29,496
29,005
28,471
28,142
27,165
Adjustments (2)
172
187
224
239
224
Common equity tier 1 capital estimated for the Basel III fully
implemented standardized and advanced approaches (b)
29,668
29,192
28,695
28,381
27,389
Tier 1 capital, determined in accordance with prescribed
regulatory requirements using Basel I definition
33,386
Preferred stock
(4,756)
Noncontrolling interests, less preferred stock not
eligible for Tier 1 capital
(688)
Tier 1 common equity using Basel I definition (c)
27,942
(1) Includes goodwill related to certain investments in unconsolidated financial institutions per
prescribed regulatory requirements beginning March 31, 2014. (2) Includes net losses on cash
flow hedges included in accumulated other comprehensive income and other adjustments. (3)
2014 amounts calculated under the Basel III transitional standardized approach; December 31, 2013,
calculated under Basel I. (4) Includes higher risk-weighting for unfunded loan commitments,
investment securities, residential mortgages, mortgage servicing rights and other adjustments.
(5)
Primarily reflects higher risk-weighting for mortgage servicing rights.
|
|
30
4Q14 Earnings
Conference Call
Non-GAAP Financial Measures
(Dollars in Millions, Unaudited)
4Q14
3Q14
2Q14
1Q14
4Q13
Total assets
$402,529
$391,284
$389,065
$371,289
$364,021
Goodwill (net of deferred tax liability) (1)
(8,403)
(8,503)
(8,548)
(8,352)
(8,343)
Intangible assets, other than mortgage servicing rights
(824)
(877)
(925)
(804)
(849)
Tangible assets (d)
393,302
381,904
379,592
362,133
354,829
Risk-weighted assets, determined in accordance with prescribed
regulatory requirements (3) (e)
317,398
*
311,914
309,929
302,841
297,919
Adjustments (4)
11,110
*
12,837
12,753
13,238
13,712
Risk-weighted assets estimated for the Basel III fully implemented
standardized approach (f)
328,508
*
324,751
322,682
316,079
311,631
Risk-weighted assets, determined in accordance with prescribed
transitional advanced approaches regulatory requirements
248,596
*
243,909
241,929
Adjustments (5)
3,270
*
3,443
3,383
Risk-weighted assets estimated for the Basel III fully implemented
advanced approaches (g)
251,866
*
247,352
245,312
Ratios *
Tangible common equity to tangible assets (a)/(d)
7.5
7.6
7.5
7.8
7.7
%
Tangible common equity to risk-weighted assets (a)/(e)
9.3
9.3
9.2
9.3
9.1
Tier 1 common equity to risk-weighted assets using Basel I definition (c)/(e)
--
--
--
--
9.4
Common equity tier 1 capital to risk-weighted assets estimated for the
Basel III fully implemented standardized approach (b)/(f)
9.0
9.0
8.9
9.0
8.8
Common equity tier 1 capital to risk-weighted assets estimated for the
Basel III fully implemented advanced approaches (b)/(g)
11.8
11.8
11.7
*
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 beginning March 31, 2014. (2) Includes net losses on cash
flow hedges included in accumulated other comprehensive income and other adjustments. (3)
2014 amounts calculated under the Basel III transitional standardized approach; December 31, 2013,
calculated under Basel I. (4) Includes higher risk-weighting for unfunded loan commitments,
investment securities, residential mortgages, mortgage servicing rights and other adjustments.
(5)
Primarily reflects higher risk-weighting for mortgage servicing rights.
|
|
U.S.
Bancorp 4Q14 Earnings
Conference Call
U.S. Bancorp
4Q14 Earnings
Conference Call
January 21, 2015 |
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