U.S. Bancorp Receives Results of Comprehensive Capital Analysis & Review; Federal Reserve Did Not Object to Company's Capital...
March 11 2015 - 4:39PM
Business Wire
Company Announces Proposed Quarterly Common
Stock Dividend Increase and Authorizes New $3.022 Billion Share
Repurchase Program
Today the Federal Reserve disclosed the results of the 2015
Comprehensive Capital Analysis and Review (“CCAR”). After a review
of the Company’s CCAR results, the Federal Reserve did not object
to the Company’s plan to increase its capital distributions over
the next five fiscal quarters. The Federal Reserve’s CCAR
disclosure included its estimate of U.S. Bancorp’s minimum capital
ratios for the period from the fourth quarter of 2014 through the
fourth quarter of 2016 under the Supervisory Severely Adverse
Scenario and the Supervisory Adverse Scenario, including the
dividends and buybacks proposed by the Company under the more
likely base case scenario.
As a result of the Federal Reserve’s non-objection to U.S.
Bancorp’s plan to increase its dividend rate, the Company will
recommend in June that its board of directors approve an increase
to the annual dividend rate beginning with the second quarter
dividend payable in July 2015. The Company expects to recommend a
second quarter dividend of $0.255 per common share, a 4.1 percent
increase over the current dividend rate. At this quarterly dividend
rate, the annual dividend will be equivalent to $1.02 per common
share.
Additionally, the board of directors of U.S. Bancorp has
approved a five-quarter authorization to repurchase up to $3.022
billion of its outstanding stock, beginning on April 1, 2015, to
replace the current authorization, which expires on March 31, 2015.
U.S. Bancorp’s common stock may be repurchased through June 2016 in
the open market or in privately negotiated transactions. The
acquired common shares will be held as treasury shares and may be
reissued for various corporate purposes.
“We are very pleased to receive the Federal Reserve’s
non-objection to our plan to increase our dividends and authorize a
new share repurchase program,” said Richard K. Davis, chairman,
president, and chief executive officer of U.S. Bancorp. “Our
Company’s ability to generate capital, even under extraordinarily
adverse economic conditions, is well proven by the results of this
year’s CCAR. Our goal is to return 60 to 80 percent of our earnings
each year to shareholders through dividends and share buybacks, and
our planned capital actions will allow us to, once again, achieve
that goal in 2015.”
Minneapolis-based U.S. Bancorp (NYSE:USB), with $403 billion in
assets as of Dec. 31, 2014, is the parent company of U.S. Bank
National Association, the fifth 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,
investment, mortgage, trust and payment services products to
consumers, businesses and institutions. Visit U.S. Bancorp on the
web at www.usbank.com.
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. The forward-looking statements contained in
this press release include, among other things, anticipated future
U.S. Bancorp capital distributions by dividends and stock
repurchases. There can be no assurance that U.S. Bancorp will
distribute this or any amount of capital to its shareholders in the
future in the form of dividends or share repurchases.
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. Bancorp’s 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. Bancorp’s business and financial
performance is likely to be negatively impacted by recently enacted
and future legislation and regulation. U.S. Bancorp’s 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 management’s 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. Bancorp’s Annual
Report on Form 10-K for the year ended December 31, 2014, as
amended, 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. Bancorp’s
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.
U.S. BancorpSean O’Connor, Investor Relations(612)
303-0778orDana Ripley, Corporate Communications(612) 303-3167
US Bancorp (NYSE:USB)
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