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 15, 2016
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 15, 2016, U.S. Bancorp (the Company) issued a press release reporting quarter ended December 31, 2015 results, and
posted on its website its 4Q15 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 4Q15 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated
herein by reference. The information included in the 4Q15 Earnings Conference Call Presentation is considered to be furnished under the Securities Exchange Act of 1934. The press release and 4Q15 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 15, 2016, deemed filed under the Securities Exchange Act of 1934. |
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99.2 |
4Q15 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 15, 2016
Exhibit 99.1
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News Release |
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Contacts: Dana Ripley
Media (612) 303-3167 |
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Sean OConnor Investors/Analysts
(612) 303-0778 |
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U.S. BANCORP REPORTS FOURTH QUARTER AND FULL YEAR 2015 EARNINGS
Achieves Record Net Income and EPS for the Full Year 2015
Full year return on average assets of 1.44 percent and average common equity of 14.0 percent
Returned 72 percent of full year earnings to shareholders
MINNEAPOLIS, January 15, 2016 U.S. Bancorp (NYSE: USB) today reported net income of $1,476 million for
the fourth quarter of 2015, or $0.80 per diluted common share, compared with $1,488 million, or $0.79 per diluted common share, in the fourth quarter of 2014. The fourth quarter of 2015 reflected a gain on the sale of a deposit portfolio, partially
offset by accruals related to legal and compliance matters that, combined, increased diluted earnings per common share by $.01.
Highlights for the full year of 2015 included:
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Ø |
Record full year diluted earnings per common share of $3.16, which were 2.6 percent higher than 2014 |
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Ø |
Industry-leading return on average assets of 1.44 percent and average common equity of 14.0 percent |
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Ø |
Returned 72 percent of 2015 earnings to shareholders through dividends and share buybacks |
Highlights for the fourth quarter of 2015 included:
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Record quarterly revenue |
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Growth in average total loans of 4.2 percent over the fourth quarter of 2014 and 1.7 percent on a linked quarter basis (excluding student loans, which were transferred to held for sale at the end of the first quarter of
2015 and returned to held for investment on September 1, 2015) |
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¡ |
Growth in average total commercial loans of 9.0 percent over the fourth quarter of 2014 and 2.5 percent over the third quarter of 2015
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¡ |
Growth in average auto loans of 13.0 percent over the fourth quarter of 2014 and 2.0 percent over the third quarter of 2015 |
(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
2
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Ø |
Growth in average total deposits of 6.9 percent over the fourth quarter of 2014 and 1.7 percent on a linked quarter basis |
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¡ |
Growth in average low-cost deposits, including noninterest-bearing and total savings deposits, of 11.4 percent year-over-year and 2.4 percent on a
linked quarter basis |
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Ø |
Net interest income growth of 2.6 percent year-over-year and 1.8 percent linked quarter |
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¡ |
Growth in average earnings assets of 5.1 percent year-over-year, and 1.0 percent on a linked quarter basis |
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¡ |
Net interest margin relatively stable at 3.06 percent for the fourth quarter of 2015 compared with 3.04 percent in the prior quarter
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Ø |
Continued momentum in payment-related fee revenue led by year-over-year increases in credit and debit card revenue of 8.1 percent |
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Ø |
Operating leverage improving at 0.6 percent year-over-year |
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Ø |
Strong capital position. At December 31, 2015, common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach was 9.1 percent and for the Basel III fully
implemented advanced approaches was 11.9 percent. |
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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 2015 |
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3Q 2015 |
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4Q 2014 |
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Percent Change 4Q15 vs 3Q15 |
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Percent Change 4Q15 vs 4Q14 |
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Full Year 2015 |
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Full Year 2014 |
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Percent Change |
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Net income attributable to U.S. Bancorp |
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$1,476 |
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$1,489 |
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$1,488 |
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(.9 |
) |
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(.8 |
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$5,879 |
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$5,851 |
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.5 |
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Diluted earnings per common share |
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$.80 |
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$.81 |
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$.79 |
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(1.2 |
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1.3 |
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$3.16 |
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$3.08 |
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2.6 |
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Return on average assets (%) |
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1.41 |
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1.44 |
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1.50 |
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1.44 |
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1.54 |
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Return on average common equity (%) |
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13.7 |
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14.1 |
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14.4 |
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14.0 |
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14.7 |
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Net interest margin (%) |
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3.06 |
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3.04 |
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3.14 |
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3.05 |
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3.23 |
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Efficiency ratio (%) (a) |
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53.9 |
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53.9 |
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54.3 |
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53.8 |
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53.2 |
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Tangible efficiency ratio (%) (a) |
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53.0 |
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53.1 |
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53.3 |
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53.0 |
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52.2 |
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Dividends declared per common share |
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$.255 |
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$.255 |
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$.245 |
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4.1 |
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$1.010 |
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$.965 |
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4.7 |
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Book value per common share (period end) |
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$23.28 |
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$22.99 |
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$21.68 |
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1.3 |
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7.4 |
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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 for tangible efficiency ratio, intangible amortization. |
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(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
3
Net income attributable to U.S. Bancorp was $1,476 million for the fourth
quarter of 2015, 0.8 percent lower than the $1,488 million for the fourth quarter of 2014, and 0.9 percent lower than the $1,489 million for the third quarter of 2015. Diluted earnings per common share of $0.80 in the fourth quarter of 2015 were
$0.01 higher than the fourth quarter of 2014 and $0.01 lower than the previous quarter. The decrease in net income year-over-year was due to a higher provision for credit losses, lower noninterest income, impacted by the 2014 Nuveen gain, partially
offset by increases in payments-related revenue and trust and investment management fees and the gain on the sale of a Health Savings Account deposit portfolio (HSA deposit sale), along with an increase in net interest income primarily
driven by growth in earning assets. The decrease in net income on a linked quarter basis was primarily due to a seasonal increase in noninterest expense and the provision for credit losses, partially offset by higher net interest income primarily
due to loan growth.
U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, U.S.
Bancorp delivered a remarkable performance in 2015; a year underscored by persistent and historically low interest rates, modest economic growth, and increasing regulatory requirements. More than any year in recent history, 2015 required strong
management focus as we balanced decisions on operating efficiencies with opportunities for investing in future growth and addressing our customers needs. U.S. Bancorp rose to that challenge, delivering record net income and diluted EPS for the
year and continuing with industry-leading performance metrics. We are well positioned as we move into 2016 as indicated by our record fourth quarter revenue, strong momentum toward positive operating leverage during the quarter and the
continued stability in our net interest margin. We also created value for our shareholders as we returned 72 percent of our 2015 earnings back to shareholders through dividends and share buybacks.
As the operating environment continues to improve, we are optimistic about the momentum building in our core businesses,
particularly within our Wealth Management and Security Services and Payment Services businesses. We recently announced an exciting new agreement with Fidelity Investments. U.S. Bank will become the exclusive issuer of the Fidelity® Rewards Visa Signature® Card and the Fidelity Investments 529 College Rewards®
Visa Signature® Card. This program reflects the strength of our Payment Services business and strategic significance of our diversified business model.
I am very proud of our 67,000 employees and their passionate commitment to creating value for our shareholders,
customers, and communities. We were recently named one of the Most Ethical Companies in the World by the Ethisphere Institute. We also became one of the few banks to offer all the Pays Apple Pay, Samsung Pay, and Android Pay
to our customers. We were one of the top three Small Business
(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
4
Administration (SBA) lenders, fueling economic growth and progress across the country. And we invested millions of dollars and thousands of hours into improving our communities. As we look to
2016, we are well positioned to continue providing quality products and services to our customers and exceptional value to our shareholders from a position of strength and stability that our stakeholders have come to expect from U.S. Bancorp.
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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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Percent Change 4Q15 vs 3Q15 |
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Percent Change 4Q15 vs 4Q14 |
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4Q 2015 |
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3Q 2015 |
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4Q 2014 |
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Full Year 2015 |
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Full Year 2014 |
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Percent Change |
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Net interest income |
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$2,871 |
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$2,821 |
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$2,799 |
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1.8 |
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2.6 |
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$11,214 |
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$10,997 |
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2.0 |
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Noninterest income |
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2,340 |
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2,326 |
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2,370 |
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.6 |
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(1.3 |
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9,092 |
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9,164 |
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(.8 |
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Total net revenue |
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5,211 |
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5,147 |
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5,169 |
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1.2 |
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.8 |
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20,306 |
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20,161 |
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.7 |
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Noninterest expense |
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2,809 |
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2,775 |
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2,804 |
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1.2 |
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.2 |
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10,931 |
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10,715 |
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2.0 |
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Income before provision and taxes |
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2,402 |
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2,372 |
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2,365 |
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1.3 |
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1.6 |
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9,375 |
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9,446 |
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(.8 |
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Provision for credit losses |
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305 |
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282 |
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288 |
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8.2 |
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5.9 |
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1,132 |
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1,229 |
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(7.9 |
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Income before taxes |
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2,097 |
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2,090 |
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2,077 |
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.3 |
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1.0 |
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8,243 |
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8,217 |
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.3 |
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Taxable-equivalent adjustment |
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52 |
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53 |
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55 |
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(1.9 |
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(5.5 |
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213 |
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222 |
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(4.1 |
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Applicable income taxes |
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556 |
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534 |
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521 |
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4.1 |
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6.7 |
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2,097 |
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2,087 |
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.5 |
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Net income |
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1,489 |
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1,503 |
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1,501 |
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(.9 |
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(.8 |
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5,933 |
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5,908 |
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.4 |
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Net (income) loss attributable to noncontrolling interests |
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(13 |
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(14 |
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(13 |
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7.1 |
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(54 |
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(57 |
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5.3 |
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Net income attributable to U.S. Bancorp |
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$1,476 |
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$1,489 |
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$1,488 |
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(.9 |
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(.8 |
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$5,879 |
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$5,851 |
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.5 |
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Net income applicable to U.S. Bancorp common shareholders |
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$1,404 |
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$1,422 |
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$1,420 |
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(1.3 |
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(1.1 |
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$5,608 |
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$5,583 |
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.4 |
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Diluted earnings per common share |
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$.80 |
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$.81 |
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$.79 |
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(1.2 |
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1.3 |
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$3.16 |
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$3.08 |
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2.6 |
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(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
5
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NET
INTEREST INCOME |
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Table 3 |
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(Taxable-equivalent basis; $ in millions) |
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4Q
2015 |
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3Q
2015 |
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4Q 2014 |
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Change 4Q15 vs 3Q15 |
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Change 4Q15 vs 4Q14 |
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Full Year 2015 |
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Full Year 2014 |
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Change |
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Components of net interest income |
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Income on earning assets |
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$3,209 |
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$3,171 |
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$3,158 |
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$38 |
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$51 |
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$12,619 |
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$12,454 |
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$165 |
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Expense on interest-bearing liabilities |
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338 |
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350 |
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359 |
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(12 |
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(21 |
) |
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1,405 |
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1,457 |
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(52 |
) |
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Net interest income |
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$2,871 |
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$2,821 |
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$2,799 |
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$50 |
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$72 |
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$11,214 |
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$10,997 |
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$217 |
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Average yields and rates paid |
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Earning assets yield |
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3.42 |
% |
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3.42 |
% |
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3.54 |
% |
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% |
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(.12 |
)% |
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3.43 |
% |
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3.65% |
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(.22)% |
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Rate paid on interest-bearing liabilities |
|
|
.50 |
|
|
|
.52 |
|
|
|
.55 |
|
|
|
(.02 |
) |
|
|
(.05 |
) |
|
|
.52 |
|
|
|
.58 |
|
|
|
(.06) |
|
|
|
|
|
|
Gross interest margin |
|
|
2.92 |
% |
|
|
2.90 |
% |
|
|
2.99 |
% |
|
|
.02 |
% |
|
|
(.07 |
)% |
|
|
2.91 |
% |
|
|
3.07% |
|
|
|
(.16)% |
|
|
|
|
|
|
Net interest margin |
|
|
3.06 |
% |
|
|
3.04 |
% |
|
|
3.14 |
% |
|
|
.02 |
% |
|
|
(.08 |
)% |
|
|
3.05 |
% |
|
|
3.23% |
|
|
|
(.18)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities (a) |
|
|
$105,536 |
|
|
|
$103,943 |
|
|
|
$98,164 |
|
|
|
$1,593 |
|
|
|
$7,372 |
|
|
|
$103,161 |
|
|
|
$90,327 |
|
|
|
$12,834 |
|
Loans |
|
|
256,692 |
|
|
|
250,536 |
|
|
|
246,421 |
|
|
|
6,156 |
|
|
|
10,271 |
|
|
|
250,459 |
|
|
|
241,692 |
|
|
|
8,767 |
|
Earning assets |
|
|
373,091 |
|
|
|
369,265 |
|
|
|
354,961 |
|
|
|
3,826 |
|
|
|
18,130 |
|
|
|
367,445 |
|
|
|
340,994 |
|
|
|
26,451 |
|
Interest-bearing liabilities |
|
|
269,940 |
|
|
|
269,479 |
|
|
|
259,938 |
|
|
|
461 |
|
|
|
10,002 |
|
|
|
269,474 |
|
|
|
249,972 |
|
|
|
19,502 |
|
|
|
|
|
(a) Excludes unrealized gain
(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
Net interest income on a taxable-equivalent basis in the fourth quarter of 2015 was $2,871 million, an increase of $72 million
(2.6 percent) over the fourth quarter of 2014. The increase was the result of growth in average earning assets, partially offset by a continued shift in loan portfolio mix. Average earning assets were $18.1 billion (5.1 percent) higher than the
fourth quarter of 2014, driven by increases of $10.3 billion (4.2 percent) in average total loans and $7.4 billion (7.5 percent) in average investment securities. Net interest income increased $50 million (1.8 percent) on a linked quarter basis,
primarily due to higher average total loans. Average total loans were $4.2 billion (1.7 percent) higher on a linked quarter basis, excluding the student loan reclassification.
The net interest margin in the fourth quarter of 2015 was 3.06 percent, compared with 3.14 percent in the fourth quarter of
2014, and 3.04 percent in the third quarter of 2015. The decrease in the net interest margin on a year-over-year basis primarily reflected a change in loan portfolio mix, as well as growth in the investment portfolio at lower average rates and lower
reinvestment rates on investment securities. On a linked quarter basis, the increase in the net interest margin was principally due to loan growth which also resulted in lower cash balances.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
6
Investment Securities
Average investment securities in the fourth quarter of 2015 were $7.4 billion (7.5 percent) higher year-over-year and $1.6
billion (1.5 percent) higher than the prior quarter. These increases were primarily due to purchases of U.S. government agency-backed securities, net of prepayments and maturities, to support regulatory liquidity coverage ratio requirements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 4 |
|
($ in millions) |
|
4Q
2015 |
|
|
3Q
2015 |
|
|
4Q
2014 |
|
|
Percent Change 4Q15 vs 3Q15 |
|
|
Percent Change 4Q15 vs 4Q14 |
|
|
Full Year 2015 |
|
|
Full Year 2014 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
$81,592 |
|
|
|
$79,486 |
|
|
|
$74,333 |
|
|
|
2.6 |
|
|
|
9.8 |
|
|
|
$78,815 |
|
|
|
$70,549 |
|
|
|
11.7 |
|
Lease financing |
|
|
5,211 |
|
|
|
5,218 |
|
|
|
5,292 |
|
|
|
(.1 |
) |
|
|
(1.5 |
) |
|
|
5,268 |
|
|
|
5,185 |
|
|
|
1.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial |
|
|
86,803 |
|
|
|
84,704 |
|
|
|
79,625 |
|
|
|
2.5 |
|
|
|
9.0 |
|
|
|
84,083 |
|
|
|
75,734 |
|
|
|
11.0 |
|
|
|
|
|
|
|
|
|
|
Commercial mortgages |
|
|
31,830 |
|
|
|
32,083 |
|
|
|
31,783 |
|
|
|
(.8 |
) |
|
|
.1 |
|
|
|
32,378 |
|
|
|
31,949 |
|
|
|
1.3 |
|
Construction and development |
|
|
10,401 |
|
|
|
10,233 |
|
|
|
9,183 |
|
|
|
1.6 |
|
|
|
13.3 |
|
|
|
10,037 |
|
|
|
8,643 |
|
|
|
16.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial real estate |
|
|
42,231 |
|
|
|
42,316 |
|
|
|
40,966 |
|
|
|
(.2 |
) |
|
|
3.1 |
|
|
|
42,415 |
|
|
|
40,592 |
|
|
|
4.5 |
|
|
|
|
|
|
|
|
|
|
Residential mortgages |
|
|
52,970 |
|
|
|
51,831 |
|
|
|
51,872 |
|
|
|
2.2 |
|
|
|
2.1 |
|
|
|
51,840 |
|
|
|
51,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit card |
|
|
18,838 |
|
|
|
17,944 |
|
|
|
17,990 |
|
|
|
5.0 |
|
|
|
4.7 |
|
|
|
18,057 |
|
|
|
17,635 |
|
|
|
2.4 |
|
|
|
|
|
|
|
|
|
|
Retail leasing |
|
|
5,265 |
|
|
|
5,480 |
|
|
|
5,939 |
|
|
|
(3.9 |
) |
|
|
(11.3 |
) |
|
|
5,563 |
|
|
|
5,981 |
|
|
|
(7.0 |
) |
Home equity and second mortgages |
|
|
16,241 |
|
|
|
16,083 |
|
|
|
15,853 |
|
|
|
1.0 |
|
|
|
2.4 |
|
|
|
16,046 |
|
|
|
15,564 |
|
|
|
3.1 |
|
Other |
|
|
29,556 |
|
|
|
27,286 |
|
|
|
27,317 |
|
|
|
8.3 |
|
|
|
8.2 |
|
|
|
27,470 |
|
|
|
26,808 |
|
|
|
2.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other retail |
|
|
51,062 |
|
|
|
48,849 |
|
|
|
49,109 |
|
|
|
4.5 |
|
|
|
4.0 |
|
|
|
49,079 |
|
|
|
48,353 |
|
|
|
1.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans, excluding covered loans |
|
|
251,904 |
|
|
|
245,644 |
|
|
|
239,562 |
|
|
|
2.5 |
|
|
|
5.2 |
|
|
|
245,474 |
|
|
|
234,132 |
|
|
|
4.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered loans |
|
|
4,788 |
|
|
|
4,892 |
|
|
|
6,859 |
|
|
|
(2.1 |
) |
|
|
(30.2 |
) |
|
|
4,985 |
|
|
|
7,560 |
|
|
|
(34.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
$256,692 |
|
|
|
$250,536 |
|
|
|
$246,421 |
|
|
|
2.5 |
|
|
|
4.2 |
|
|
|
$250,459 |
|
|
|
$241,692 |
|
|
|
3.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
7
Loans
Average total loans were $10.3 billion (4.2 percent) higher in the fourth quarter of 2015 than the fourth quarter of 2014, due
to growth in total commercial loans (9.0 percent), credit card loans (4.7 percent), total other retail loans (4.0 percent) total commercial real estate loans (3.1 percent) and residential mortgages (2.1 percent). These increases were partially
offset by a decline in covered loans (30.2 percent), including the impact of the expiration of the loss sharing agreements on commercial and commercial real estate assets at the end of 2014. Average total loans were $6.2 billion (2.5 percent) higher
in the fourth quarter of 2015 than the third quarter of 2015. Excluding the student loan reclassification, average total loans were $4.2 billion (1.7 percent) higher in the fourth quarter of 2015 than the third quarter of 2015. The increase was
driven by growth in total commercial loans (2.5 percent), credit card (5.0 percent) and residential mortgages (2.2 percent). The Company also acquired a $1.6 billion credit card portfolio at the end of the fourth quarter of 2015 which did not have a
material impact to average balances for the quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE DEPOSITS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5 |
|
($ in millions) |
|
4Q
2015 |
|
|
3Q
2015 |
|
|
4Q
2014 |
|
|
Percent Change 4Q15 vs 3Q15 |
|
|
Percent Change 4Q15 vs 4Q14 |
|
|
Full Year 2015 |
|
|
Full Year 2014 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
$ |
83,894 |
|
|
$ |
80,940 |
|
|
$ |
76,958 |
|
|
|
3.6 |
|
|
|
9.0 |
|
|
$ |
79,203 |
|
|
$ |
73,455 |
|
|
|
7.8 |
|
Interest-bearing savings deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking |
|
|
57,109 |
|
|
|
56,888 |
|
|
|
54,199 |
|
|
|
.4 |
|
|
|
5.4 |
|
|
|
55,974 |
|
|
|
53,248 |
|
|
|
5.1 |
|
Money market savings |
|
|
82,828 |
|
|
|
80,338 |
|
|
|
68,914 |
|
|
|
3.1 |
|
|
|
20.2 |
|
|
|
79,266 |
|
|
|
63,977 |
|
|
|
23.9 |
|
Savings accounts |
|
|
37,991 |
|
|
|
37,480 |
|
|
|
34,955 |
|
|
|
1.4 |
|
|
|
8.7 |
|
|
|
37,150 |
|
|
|
34,196 |
|
|
|
8.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total of savings deposits |
|
|
177,928 |
|
|
|
174,706 |
|
|
|
158,068 |
|
|
|
1.8 |
|
|
|
12.6 |
|
|
|
172,390 |
|
|
|
151,421 |
|
|
|
13.8 |
|
Time deposits |
|
|
32,683 |
|
|
|
34,046 |
|
|
|
40,453 |
|
|
|
(4.0 |
) |
|
|
(19.2 |
) |
|
|
35,558 |
|
|
|
41,764 |
|
|
|
(14.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits |
|
|
210,611 |
|
|
|
208,752 |
|
|
|
198,521 |
|
|
|
.9 |
|
|
|
6.1 |
|
|
|
207,948 |
|
|
|
193,185 |
|
|
|
7.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
$ |
294,505 |
|
|
$ |
289,692 |
|
|
$ |
275,479 |
|
|
|
1.7 |
|
|
|
6.9 |
|
|
$ |
287,151 |
|
|
$ |
266,640 |
|
|
|
7.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
Average total deposits for the fourth quarter of 2015 were $19.0 billion (6.9 percent) higher than the fourth quarter of 2014.
Average noninterest-bearing deposits increased $6.9 billion (9.0 percent) year-over-year, mainly in Wholesale Banking and Commercial Real Estate and Consumer and Small Business Banking. Average total savings deposits were $19.9 billion (12.6
percent) higher year-over-year, the result of
(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
8
growth in corporate trust, Wholesale Banking and Commercial Real Estate, and Consumer and Small Business Banking balances. Growth in Consumer and Small Business Banking total savings deposits
included net new account growth of 3.2 percent. Average time deposits were $7.8 billion (19.2 percent) lower than the prior year quarter. Changes in time deposits are largely related to those deposits managed as an alternative to other wholesale
funding sources, based on funding needs and relative pricing.
Average total deposits increased $4.8 billion (1.7 percent)
over the third quarter of 2015. Average noninterest-bearing deposits increased $3.0 billion (3.6 percent) on a linked quarter basis, due to higher balances in Wholesale Banking and Commercial Real Estate and corporate trust. Average total savings
deposits increased $3.2 billion (1.8 percent), reflecting increases in Wholesale Banking and Commercial Real Estate and Consumer and Small Business Banking. Average time deposits, which are managed based on funding needs and relative pricing,
decreased $1.4 billion (4.0 percent) on a linked quarter basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 6 |
|
($ in millions) |
|
4Q 2015 |
|
|
3Q 2015 |
|
|
4Q 2014 |
|
|
Percent Change 4Q15 vs 3Q15 |
|
|
Percent Change 4Q15 vs 4Q14 |
|
|
Full Year 2015 |
|
|
Full Year 2014 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit and debit card revenue |
|
$ |
294 |
|
|
$ |
269 |
|
|
$ |
272 |
|
|
|
9.3 |
|
|
|
8.1 |
|
|
$ |
1,070 |
|
|
$ |
1,021 |
|
|
|
4.8 |
|
Corporate payment products revenue |
|
|
170 |
|
|
|
190 |
|
|
|
174 |
|
|
|
(10.5 |
) |
|
|
(2.3 |
) |
|
|
708 |
|
|
|
724 |
|
|
|
(2.2 |
) |
Merchant processing services |
|
|
393 |
|
|
|
400 |
|
|
|
384 |
|
|
|
(1.8 |
) |
|
|
2.3 |
|
|
|
1,547 |
|
|
|
1,511 |
|
|
|
2.4 |
|
ATM processing services |
|
|
79 |
|
|
|
81 |
|
|
|
80 |
|
|
|
(2.5 |
) |
|
|
(1.3 |
) |
|
|
318 |
|
|
|
321 |
|
|
|
(.9 |
) |
Trust and investment management fees |
|
|
336 |
|
|
|
329 |
|
|
|
322 |
|
|
|
2.1 |
|
|
|
4.3 |
|
|
|
1,321 |
|
|
|
1,252 |
|
|
|
5.5 |
|
Deposit service charges |
|
|
182 |
|
|
|
185 |
|
|
|
180 |
|
|
|
(1.6 |
) |
|
|
1.1 |
|
|
|
702 |
|
|
|
693 |
|
|
|
1.3 |
|
Treasury management fees |
|
|
139 |
|
|
|
143 |
|
|
|
136 |
|
|
|
(2.8 |
) |
|
|
2.2 |
|
|
|
561 |
|
|
|
545 |
|
|
|
2.9 |
|
Commercial products revenue |
|
|
222 |
|
|
|
231 |
|
|
|
219 |
|
|
|
(3.9 |
) |
|
|
1.4 |
|
|
|
867 |
|
|
|
854 |
|
|
|
1.5 |
|
Mortgage banking revenue |
|
|
211 |
|
|
|
224 |
|
|
|
235 |
|
|
|
(5.8 |
) |
|
|
(10.2 |
) |
|
|
906 |
|
|
|
1,009 |
|
|
|
(10.2 |
) |
Investment products fees |
|
|
44 |
|
|
|
46 |
|
|
|
49 |
|
|
|
(4.3 |
) |
|
|
(10.2 |
) |
|
|
185 |
|
|
|
191 |
|
|
|
(3.1 |
) |
Securities gains (losses), net |
|
|
1 |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
nm |
|
Other |
|
|
269 |
|
|
|
229 |
|
|
|
318 |
|
|
|
17.5 |
|
|
|
(15.4 |
) |
|
|
907 |
|
|
|
1,040 |
|
|
|
(12.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income |
|
$ |
2,340 |
|
|
$ |
2,326 |
|
|
$ |
2,370 |
|
|
|
.6 |
|
|
|
(1.3 |
) |
|
$ |
9,092 |
|
|
$ |
9,164 |
|
|
|
(.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
9
Noninterest Income
Fourth quarter noninterest income was $2,340 million, which was $30 million (1.3 percent) lower than the fourth quarter of 2014
and $14 million (0.6 percent) higher than the third quarter of 2015. The year-over-year decrease in noninterest income was primarily due to the impact of the 2014 Nuveen gain, partially offset by fee revenue growth and the HSA deposit sale. Higher
credit and debit card revenue, trust and investment management fees, and merchant processing services were partially offset by a decrease in mortgage banking revenue, primarily due to an unfavorable change in the valuation of mortgage servicing
rights (MSRs), net of hedging activities. Credit and debit card revenue increased $22 million (8.1 percent) due to higher transaction volumes. Trust and investment management fees increased $14 million (4.3 percent), reflecting the
benefits of the Companys investments in corporate trust and fund services businesses, as well as account growth and improved market conditions and lower fee waivers. Merchant processing services increased $9 million (2.3 percent) as a result
of higher transaction volumes, along with account growth and equipment sales to merchants related to new chip card technology requirements, which decreased in the fourth quarter of 2015 compared with the third quarter of 2015. Adjusted for the
approximate $16 million impact of foreign currency rate changes, year-over-year merchant processing services growth would have been approximately 6.5 percent.
Noninterest income was $14 million (0.6 percent) higher in the fourth quarter of 2015 than the third quarter of 2015. The
increase in noninterest income on a linked quarter basis was primarily due to the HSA deposit sale and credit and debit card revenue, partially offset by seasonally lower corporate payment products revenue and lower mortgage banking revenue. Credit
and debit card revenue increased $25 million (9.3 percent), primarily due to seasonally higher sales volumes. Other income increased $40 million (17.5 percent) reflecting the impact of the prior quarter notable items including the Visa Inc. Class B
common stock sales and the student loan market adjustment, offset by the HSA deposit sale and other equity investment income. Corporate payment products revenue decreased $20 million (10.5 percent), reflecting the impact of seasonally higher third
quarter government-related transaction volumes and mortgage banking revenue decreased $13 million (5.8 percent), primarily due to lower origination revenue.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 7 |
|
($ in millions) |
|
4Q 2015 |
|
|
3Q 2015 |
|
|
4Q 2014 |
|
|
Percent Change 4Q15 vs 3Q15 |
|
|
Percent Change 4Q15 vs 4Q14 |
|
|
Full Year 2015 |
|
|
Full Year 2014 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
|
$ |
1,212 |
|
|
$ |
1,225 |
|
|
$ |
1,151 |
|
|
|
(1.1 |
) |
|
|
5.3 |
|
|
$ |
4,812 |
|
|
$ |
4,523 |
|
|
|
6.4 |
|
Employee benefits |
|
|
272 |
|
|
|
285 |
|
|
|
245 |
|
|
|
(4.6 |
) |
|
|
11.0 |
|
|
|
1,167 |
|
|
|
1,041 |
|
|
|
12.1 |
|
Net occupancy and equipment |
|
|
246 |
|
|
|
251 |
|
|
|
248 |
|
|
|
(2.0 |
) |
|
|
(.8 |
) |
|
|
991 |
|
|
|
987 |
|
|
|
.4 |
|
Professional services |
|
|
125 |
|
|
|
115 |
|
|
|
132 |
|
|
|
8.7 |
|
|
|
(5.3 |
) |
|
|
423 |
|
|
|
414 |
|
|
|
2.2 |
|
Marketing and business development |
|
|
96 |
|
|
|
99 |
|
|
|
129 |
|
|
|
(3.0 |
) |
|
|
(25.6 |
) |
|
|
361 |
|
|
|
382 |
|
|
|
(5.5 |
) |
Technology and communications |
|
|
230 |
|
|
|
222 |
|
|
|
219 |
|
|
|
3.6 |
|
|
|
5.0 |
|
|
|
887 |
|
|
|
863 |
|
|
|
2.8 |
|
Postage, printing and supplies |
|
|
74 |
|
|
|
77 |
|
|
|
86 |
|
|
|
(3.9 |
) |
|
|
(14.0 |
) |
|
|
297 |
|
|
|
328 |
|
|
|
(9.5 |
) |
Other intangibles |
|
|
46 |
|
|
|
42 |
|
|
|
51 |
|
|
|
9.5 |
|
|
|
(9.8 |
) |
|
|
174 |
|
|
|
199 |
|
|
|
(12.6 |
) |
Other |
|
|
508 |
|
|
|
459 |
|
|
|
543 |
|
|
|
10.7 |
|
|
|
(6.4 |
) |
|
|
1,819 |
|
|
|
1,978 |
|
|
|
(8.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
$ |
2,809 |
|
|
$ |
2,775 |
|
|
$ |
2,804 |
|
|
|
1.2 |
|
|
|
.2 |
|
|
$ |
10,931 |
|
|
$ |
10,715 |
|
|
|
2.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense
Fourth quarter noninterest expense was $2,809 million, which was $5 million (0.2 percent) higher than the fourth quarter of
2014. Compensation expense increased $61 million (5.3 percent), reflecting the impact of merit increases and higher staffing for risk and compliance activities, while employee benefits expense was $27 million (11.0 percent) higher, mainly due to
increased pension costs. Offsetting these increases was a $33 million (25.6 percent) decline in marketing and business development, principally due to charitable contributions in the fourth quarter of 2014, and $35 million (6.4 percent) lower other
noninterest expense, reflecting the impact of prior year legal accruals partially offset by higher compliance-related expenses.
Noninterest expense increased $34 million (1.2 percent) on a linked quarter basis, reflecting seasonally higher costs related
to investments in tax-advantaged projects and accruals related to legal and compliance matters, partially offset by the favorable impact of reduced mortgage-related compliance and talent upgrade costs which were elevated in the third quarter 2015.
Compensation expense declined $13 million (1.1 percent), reflecting the impact of expense management initiatives and decreases in variable compensation, and a $13 million (4.6 percent) decrease in employee benefits expense was driven by lower
payroll tax expense and healthcare costs.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
11
Provision for Income Taxes
The provision for income taxes for the fourth quarter of 2015 resulted in a tax rate on a taxable-equivalent basis of 29.0
percent (effective tax rate of 27.2 percent), compared with 27.7 percent (effective tax rate of 25.8 percent) in the fourth quarter of 2014, and 28.1 percent (effective tax rate of 26.2 percent) in the third quarter of 2015.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLOWANCE FOR CREDIT LOSSES |
|
|
|
|
|
|
|
Table 8 |
|
|
|
|
|
($ in millions) |
|
4Q |
|
|
|
|
|
3Q |
|
|
|
|
|
2Q |
|
|
|
|
|
1Q |
|
|
|
|
|
4Q |
|
|
|
|
|
|
2015 |
|
|
% (b) |
|
|
2015 |
|
|
% (b) |
|
|
2015 |
|
|
% (b) |
|
|
2015 |
|
|
% (b) |
|
|
2014 |
|
|
% (b) |
|
|
|
|
|
|
Balance, beginning of period |
|
$ |
4,306 |
|
|
|
|
|
|
$ |
4,326 |
|
|
|
|
|
|
$ |
4,351 |
|
|
|
|
|
|
$ |
4,375 |
|
|
|
|
|
|
$ |
4,414 |
|
|
|
|
|
Net charge-offs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
58 |
|
|
|
.28 |
|
|
|
68 |
|
|
|
.34 |
|
|
|
39 |
|
|
|
.20 |
|
|
|
40 |
|
|
|
.21 |
|
|
|
48 |
|
|
|
.26 |
|
Lease financing |
|
|
5 |
|
|
|
.38 |
|
|
|
3 |
|
|
|
.23 |
|
|
|
3 |
|
|
|
.23 |
|
|
|
3 |
|
|
|
.23 |
|
|
|
(2 |
) |
|
|
(.15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial |
|
|
63 |
|
|
|
.29 |
|
|
|
71 |
|
|
|
.33 |
|
|
|
42 |
|
|
|
.20 |
|
|
|
43 |
|
|
|
.21 |
|
|
|
46 |
|
|
|
.23 |
|
Commercial mortgages |
|
|
2 |
|
|
|
.02 |
|
|
|
|
|
|
|
|
|
|
|
4 |
|
|
|
.05 |
|
|
|
(1 |
) |
|
|
(.01 |
) |
|
|
(3 |
) |
|
|
(.04 |
) |
Construction and development |
|
|
(2 |
) |
|
|
(.08 |
) |
|
|
(11 |
) |
|
|
(.43 |
) |
|
|
(3 |
) |
|
|
(.12 |
) |
|
|
(17 |
) |
|
|
(.72 |
) |
|
|
(7 |
) |
|
|
(.30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial real estate |
|
|
|
|
|
|
|
|
|
|
(11 |
) |
|
|
(.10 |
) |
|
|
1 |
|
|
|
.01 |
|
|
|
(18 |
) |
|
|
(.17 |
) |
|
|
(10 |
) |
|
|
(.10 |
) |
Residential mortgages |
|
|
16 |
|
|
|
.12 |
|
|
|
25 |
|
|
|
.19 |
|
|
|
33 |
|
|
|
.26 |
|
|
|
35 |
|
|
|
.28 |
|
|
|
39 |
|
|
|
.30 |
|
Credit card |
|
|
166 |
|
|
|
3.50 |
|
|
|
153 |
|
|
|
3.38 |
|
|
|
169 |
|
|
|
3.85 |
|
|
|
163 |
|
|
|
3.71 |
|
|
|
160 |
|
|
|
3.53 |
|
Retail leasing |
|
|
1 |
|
|
|
.08 |
|
|
|
2 |
|
|
|
.14 |
|
|
|
1 |
|
|
|
.07 |
|
|
|
1 |
|
|
|
.07 |
|
|
|
1 |
|
|
|
.07 |
|
Home equity and second mortgages |
|
|
6 |
|
|
|
.15 |
|
|
|
7 |
|
|
|
.17 |
|
|
|
11 |
|
|
|
.28 |
|
|
|
14 |
|
|
|
.36 |
|
|
|
17 |
|
|
|
.43 |
|
Other |
|
|
53 |
|
|
|
.71 |
|
|
|
45 |
|
|
|
.65 |
|
|
|
39 |
|
|
|
.62 |
|
|
|
41 |
|
|
|
.60 |
|
|
|
52 |
|
|
|
.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other retail |
|
|
60 |
|
|
|
.47 |
|
|
|
54 |
|
|
|
.44 |
|
|
|
51 |
|
|
|
.43 |
|
|
|
56 |
|
|
|
.46 |
|
|
|
70 |
|
|
|
.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net charge-offs, excluding covered loans |
|
|
305 |
|
|
|
.48 |
|
|
|
292 |
|
|
|
.47 |
|
|
|
296 |
|
|
|
.49 |
|
|
|
279 |
|
|
|
.47 |
|
|
|
305 |
|
|
|
.51 |
|
Covered loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net charge-offs |
|
|
305 |
|
|
|
.47 |
|
|
|
292 |
|
|
|
.46 |
|
|
|
296 |
|
|
|
.48 |
|
|
|
279 |
|
|
|
.46 |
|
|
|
308 |
|
|
|
.50 |
|
Provision for credit losses |
|
|
305 |
|
|
|
|
|
|
|
282 |
|
|
|
|
|
|
|
281 |
|
|
|
|
|
|
|
264 |
|
|
|
|
|
|
|
288 |
|
|
|
|
|
Other changes (a) |
|
|
|
|
|
|
|
|
|
|
(10 |
) |
|
|
|
|
|
|
(10 |
) |
|
|
|
|
|
|
(9 |
) |
|
|
|
|
|
|
(19 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period |
|
$ |
4,306 |
|
|
|
|
|
|
$ |
4,306 |
|
|
|
|
|
|
$ |
4,326 |
|
|
|
|
|
|
$ |
4,351 |
|
|
|
|
|
|
$ |
4,375 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
3,863 |
|
|
|
|
|
|
$ |
3,965 |
|
|
|
|
|
|
$ |
4,013 |
|
|
|
|
|
|
$ |
4,023 |
|
|
|
|
|
|
$ |
4,039 |
|
|
|
|
|
Liability for unfunded credit commitments |
|
|
443 |
|
|
|
|
|
|
|
341 |
|
|
|
|
|
|
|
313 |
|
|
|
|
|
|
|
328 |
|
|
|
|
|
|
|
336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for credit losses |
|
$ |
4,306 |
|
|
|
|
|
|
$ |
4,306 |
|
|
|
|
|
|
$ |
4,326 |
|
|
|
|
|
|
$ |
4,351 |
|
|
|
|
|
|
$ |
4,375 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross charge-offs |
|
$ |
381 |
|
|
|
|
|
|
$ |
372 |
|
|
|
|
|
|
$ |
380 |
|
|
|
|
|
|
$ |
383 |
|
|
|
|
|
|
$ |
415 |
|
|
|
|
|
Gross recoveries |
|
$ |
76 |
|
|
|
|
|
|
$ |
80 |
|
|
|
|
|
|
$ |
84 |
|
|
|
|
|
|
$ |
104 |
|
|
|
|
|
|
$ |
107 |
|
|
|
|
|
Allowance for credit losses as a percentage of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loans, excluding covered loans |
|
|
1.67 |
|
|
|
|
|
|
|
1.71 |
|
|
|
|
|
|
|
1.76 |
|
|
|
|
|
|
|
1.79 |
|
|
|
|
|
|
|
1.78 |
|
|
|
|
|
Nonperforming loans, excluding covered loans |
|
|
360 |
|
|
|
|
|
|
|
347 |
|
|
|
|
|
|
|
348 |
|
|
|
|
|
|
|
321 |
|
|
|
|
|
|
|
297 |
|
|
|
|
|
Nonperforming assets, excluding covered assets |
|
|
288 |
|
|
|
|
|
|
|
280 |
|
|
|
|
|
|
|
279 |
|
|
|
|
|
|
|
261 |
|
|
|
|
|
|
|
245 |
|
|
|
|
|
Period-end loans |
|
|
1.65 |
|
|
|
|
|
|
|
1.69 |
|
|
|
|
|
|
|
1.74 |
|
|
|
|
|
|
|
1.77 |
|
|
|
|
|
|
|
1.77 |
|
|
|
|
|
Nonperforming loans |
|
|
361 |
|
|
|
|
|
|
|
347 |
|
|
|
|
|
|
|
349 |
|
|
|
|
|
|
|
322 |
|
|
|
|
|
|
|
298 |
|
|
|
|
|
Nonperforming assets |
|
|
283 |
|
|
|
|
|
|
|
275 |
|
|
|
|
|
|
|
274 |
|
|
|
|
|
|
|
257 |
|
|
|
|
|
|
|
242 |
|
|
|
|
|
|
(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 2015 Results
January 15, 2016
Page
13
Credit Quality
The Companys provision for credit losses for the fourth quarter of 2015 was $305 million, which was $23 million (8.2
percent) higher than the prior quarter and $17 million (5.9 percent) higher than the fourth quarter of 2014. The provision for credit losses was equal to net charge-offs in the fourth quarter of 2015, $10 million lower than net charge-offs in the
third quarter of 2015, and $20 million lower than net charge-offs in the fourth quarter of 2014. Total net charge-offs in the fourth quarter of 2015 were $305 million, compared with $292 million in the third quarter of 2015, and $308 million in the
fourth quarter of 2014. Net charge-offs increased $13 million (4.5 percent) on a linked quarter basis due to seasonally higher credit card charge-offs and lower commercial mortgage and construction and development recoveries, while the $3 million
(1.0 percent) decrease in net charge-offs on a year-over-year basis reflected improvements in residential mortgages and total other retail loans. Given current economic conditions, the Company expects the level of net charge-offs to remain
relatively stable in the first quarter of 2016.
The allowance for credit losses was $4,306 million at December 31,
2015, and at September 30, 2015, compared with $4,375 million at December 31, 2014. The ratio of the allowance for credit losses to period-end loans was 1.65 percent at December 31, 2015, compared with 1.69 percent at
September 30, 2015, and 1.77 percent at December 31, 2014. The ratio of the allowance for credit losses to nonperforming loans was 361 percent at December 31, 2015, compared with 347 percent at September 30, 2015, and 298 percent
at December 31, 2014.
At December 31, 2015, approximately $3.2 billion of commercial loans (approximately 1.2
percent of total loans outstanding) were to customers in energy-related businesses. The decline in energy prices over the past year has resulted in deterioration of a portion of these loans; however, the impact of this deterioration was not
significant to the Company during 2015. Based on the uncertain outlook for commodity prices in the near term and the potential for further energy price declines, the Company may see additional stress within its energy and metals-related loan
portfolios in 2016. At December 31, 2015, the Company had credit reserves of approximately 5 percent of total energy loan balances.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES |
|
|
|
Table 9 |
|
(Percent) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 31 2015 |
|
|
Sep 30 2015 |
|
|
Jun 30 2015 |
|
|
Mar 31 2015 |
|
|
Dec 31 2014 |
|
|
|
|
|
|
|
Delinquent loan ratios - 90 days or more past due
excluding nonperforming loans |
|
Commercial |
|
|
.05 |
|
|
|
.05 |
|
|
|
.05 |
|
|
|
.05 |
|
|
|
.05 |
|
Commercial real estate |
|
|
.03 |
|
|
|
.05 |
|
|
|
.05 |
|
|
|
.07 |
|
|
|
.05 |
|
Residential mortgages |
|
|
.33 |
|
|
|
.33 |
|
|
|
.30 |
|
|
|
.33 |
|
|
|
.40 |
|
Credit card |
|
|
1.09 |
|
|
|
1.10 |
|
|
|
1.03 |
|
|
|
1.19 |
|
|
|
1.13 |
|
Other retail |
|
|
.15 |
|
|
|
.14 |
|
|
|
.14 |
|
|
|
.15 |
|
|
|
.15 |
|
Total loans, excluding covered loans |
|
|
.21 |
|
|
|
.20 |
|
|
|
.19 |
|
|
|
.22 |
|
|
|
.23 |
|
Covered loans |
|
|
6.31 |
|
|
|
6.57 |
|
|
|
6.66 |
|
|
|
7.01 |
|
|
|
7.48 |
|
Total loans |
|
|
.32 |
|
|
|
.32 |
|
|
|
.32 |
|
|
|
.36 |
|
|
|
.38 |
|
|
Delinquent loan ratios - 90 days or more past due
including nonperforming loans |
|
Commercial |
|
|
.25 |
|
|
|
.25 |
|
|
|
.16 |
|
|
|
.16 |
|
|
|
.19 |
|
Commercial real estate |
|
|
.33 |
|
|
|
.39 |
|
|
|
.46 |
|
|
|
.58 |
|
|
|
.65 |
|
Residential mortgages |
|
|
1.66 |
|
|
|
1.73 |
|
|
|
1.80 |
|
|
|
1.95 |
|
|
|
2.07 |
|
Credit card |
|
|
1.13 |
|
|
|
1.16 |
|
|
|
1.12 |
|
|
|
1.32 |
|
|
|
1.30 |
|
Other retail |
|
|
.46 |
|
|
|
.47 |
|
|
|
.51 |
|
|
|
.55 |
|
|
|
.53 |
|
Total loans, excluding covered loans |
|
|
.67 |
|
|
|
.70 |
|
|
|
.70 |
|
|
|
.77 |
|
|
|
.83 |
|
Covered loans |
|
|
6.48 |
|
|
|
6.80 |
|
|
|
6.88 |
|
|
|
7.25 |
|
|
|
7.74 |
|
Total loans |
|
|
.78 |
|
|
|
.81 |
|
|
|
.82 |
|
|
|
.91 |
|
|
|
.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 10 |
|
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 31 2015 |
|
|
Sep 30 2015 |
|
|
Jun 30 2015 |
|
|
Mar 31 2015 |
|
|
Dec 31 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
$160 |
|
|
|
$157 |
|
|
|
$78 |
|
|
|
$74 |
|
|
|
$99 |
|
Lease financing |
|
|
14 |
|
|
|
12 |
|
|
|
12 |
|
|
|
13 |
|
|
|
13 |
|
|
|
|
|
|
Total commercial |
|
|
174 |
|
|
|
169 |
|
|
|
90 |
|
|
|
87 |
|
|
|
112 |
|
|
|
|
|
|
|
Commercial mortgages |
|
|
92 |
|
|
|
105 |
|
|
|
116 |
|
|
|
142 |
|
|
|
175 |
|
Construction and development |
|
|
35 |
|
|
|
39 |
|
|
|
59 |
|
|
|
75 |
|
|
|
84 |
|
|
|
|
|
|
Total commercial real estate |
|
|
127 |
|
|
|
144 |
|
|
|
175 |
|
|
|
217 |
|
|
|
259 |
|
|
|
|
|
|
|
Residential mortgages |
|
|
712 |
|
|
|
735 |
|
|
|
769 |
|
|
|
825 |
|
|
|
864 |
|
Credit card |
|
|
9 |
|
|
|
12 |
|
|
|
16 |
|
|
|
22 |
|
|
|
30 |
|
Other retail |
|
|
162 |
|
|
|
171 |
|
|
|
178 |
|
|
|
187 |
|
|
|
187 |
|
|
|
|
|
|
Total nonperforming loans, excluding covered loans |
|
|
1,184 |
|
|
|
1,231 |
|
|
|
1,228 |
|
|
|
1,338 |
|
|
|
1,452 |
|
|
|
|
|
|
|
Covered loans |
|
|
8 |
|
|
|
11 |
|
|
|
11 |
|
|
|
12 |
|
|
|
14 |
|
|
|
|
|
|
Total nonperforming loans |
|
|
1,192 |
|
|
|
1,242 |
|
|
|
1,239 |
|
|
|
1,350 |
|
|
|
1,466 |
|
|
|
|
|
|
|
Other real estate (a) |
|
|
280 |
|
|
|
276 |
|
|
|
287 |
|
|
|
293 |
|
|
|
288 |
|
Covered other real estate (a) |
|
|
32 |
|
|
|
31 |
|
|
|
35 |
|
|
|
37 |
|
|
|
37 |
|
Other nonperforming assets |
|
|
19 |
|
|
|
18 |
|
|
|
16 |
|
|
|
16 |
|
|
|
17 |
|
|
|
|
|
|
Total nonperforming assets (b) |
|
|
$1,523 |
|
|
|
$1,567 |
|
|
|
$1,577 |
|
|
|
$1,696 |
|
|
|
$1,808 |
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets, excluding covered assets |
|
|
$1,483 |
|
|
|
$1,525 |
|
|
|
$1,531 |
|
|
|
$1,647 |
|
|
|
$1,757 |
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans 90 days or more past due, excluding covered loans |
|
|
$541 |
|
|
|
$510 |
|
|
|
$469 |
|
|
|
$521 |
|
|
|
$550 |
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans 90 days or more past due |
|
|
$831 |
|
|
|
$825 |
|
|
|
$801 |
|
|
|
$880 |
|
|
|
$945 |
|
|
|
|
|
|
|
|
|
|
|
|
Performing restructured loans, excluding GNMA and covered loans |
|
|
$2,766 |
|
|
|
$2,746 |
|
|
|
$2,815 |
|
|
|
$2,684 |
|
|
|
$2,832 |
|
|
|
|
|
|
|
|
|
|
|
|
Performing restructured GNMA and covered loans |
|
|
$1,944 |
|
|
|
$2,031 |
|
|
|
$2,111 |
|
|
|
$2,186 |
|
|
|
$2,273 |
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to loans plus ORE, excluding covered assets (%) |
|
|
.58 |
|
|
|
.61 |
|
|
|
.63 |
|
|
|
.68 |
|
|
|
.72 |
|
|
|
|
|
|
|
Nonperforming assets to loans plus ORE (%) |
|
|
.58 |
|
|
|
.61 |
|
|
|
.63 |
|
|
|
.69 |
|
|
|
.73 |
|
|
(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 decreased on a linked quarter and year-over-year basis to $1,523 million
at December 31, 2015, compared with $1,567 million at September 30, 2015, and $1,808 million at December 31, 2014. The ratio of nonperforming assets to loans and other real estate was 0.58 percent at December 31, 2015, compared
with 0.61 percent at September 30, 2015, and 0.73 percent at December 31, 2014. The decrease in nonperforming assets on a year-over-year basis was driven primarily by reductions in the commercial real estate portfolios and residential
mortgages, as economic conditions continued to slowly
(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
16
improve. Accruing loans 90 days or more past due were $831 million ($541 million excluding covered loans) at December 31, 2015, compared with $825 million ($510 million excluding covered
loans) at September 30, 2015, and $945 million ($550 million excluding covered loans) at December 31, 2014. The Company expects total nonperforming assets to remain relatively stable in the first quarter of 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 11 |
|
(Millions) |
|
4Q 2015 |
|
|
3Q 2015 |
|
|
2Q 2015 |
|
|
1Q 2015 |
|
|
4Q 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
Beginning shares outstanding |
|
|
1,754 |
|
|
|
1,767 |
|
|
|
1,780 |
|
|
|
1,786 |
|
|
|
1,795 |
|
Shares issued for stock incentive plans, acquisitions and other corporate
purposes |
|
|
1 |
|
|
|
3 |
|
|
|
1 |
|
|
|
6 |
|
|
|
2 |
|
Shares repurchased |
|
|
(10 |
) |
|
|
(16 |
) |
|
|
(14 |
) |
|
|
(12 |
) |
|
|
(11 |
) |
|
|
|
|
|
Ending shares outstanding |
|
|
1,745 |
|
|
|
1,754 |
|
|
|
1,767 |
|
|
|
1,780 |
|
|
|
1,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Management
Total U.S. Bancorp shareholders equity was $46.1 billion at December 31, 2015, compared with $45.1 billion at
September 30, 2015, and $43.5 billion at December 31, 2014. Including fourth quarter distributions, the Company returned 72 percent of earnings to shareholders for the full year.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL POSITION |
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 12 |
|
($ in millions) |
|
Dec 31 2015 |
|
|
Sep 30 2015 |
|
|
Jun 30 2015 |
|
|
Mar 31 2015 |
|
|
Dec 31 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Bancorp shareholders equity |
|
|
$46,131 |
|
|
|
$45,075 |
|
|
|
$44,537 |
|
|
|
$44,277 |
|
|
|
$43,479 |
|
|
|
|
|
|
|
Standardized Approach |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basel III transitional standardized approach |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital |
|
|
$32,612 |
|
|
|
$32,124 |
|
|
|
$31,674 |
|
|
|
$31,308 |
|
|
|
$30,856 |
|
Tier 1 capital |
|
|
38,431 |
|
|
|
37,197 |
|
|
|
36,748 |
|
|
|
36,382 |
|
|
|
36,020 |
|
Total risk-based capital |
|
|
45,313 |
|
|
|
44,015 |
|
|
|
43,526 |
|
|
|
43,558 |
|
|
|
43,208 |
|
|
|
|
|
|
|
Common equity tier 1 capital ratio |
|
|
9.6 |
% |
|
|
9.6 |
% |
|
|
9.5 |
% |
|
|
9.6 |
% |
|
|
9.7 |
% |
Tier 1 capital ratio |
|
|
11.3 |
|
|
|
11.1 |
|
|
|
11.0 |
|
|
|
11.1 |
|
|
|
11.3 |
|
Total risk-based capital ratio |
|
|
13.3 |
|
|
|
13.1 |
|
|
|
13.1 |
|
|
|
13.3 |
|
|
|
13.6 |
|
Leverage ratio |
|
|
9.5 |
|
|
|
9.3 |
|
|
|
9.2 |
|
|
|
9.3 |
|
|
|
9.3 |
|
|
|
|
|
|
|
Common equity tier 1 capital to risk-weighted assets estimated for the Basel
III fully implemented standardized approach |
|
|
9.1 |
|
|
|
9.2 |
|
|
|
9.2 |
|
|
|
9.2 |
|
|
|
9.0 |
|
|
|
|
|
|
|
Advanced Approaches |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital to risk-weighted assets for the Basel III
transitional advanced approaches |
|
|
12.5 |
|
|
|
13.0 |
|
|
|
12.9 |
|
|
|
12.3 |
|
|
|
12.4 |
|
|
|
|
|
|
|
Common equity tier 1 capital to risk-weighted assets estimated for the Basel
III fully implemented advanced approaches |
|
|
11.9 |
|
|
|
12.4 |
|
|
|
12.4 |
|
|
|
11.8 |
|
|
|
11.8 |
|
|
|
|
|
|
|
Tangible common equity to tangible assets |
|
|
7.6 |
|
|
|
7.7 |
|
|
|
7.5 |
|
|
|
7.6 |
|
|
|
7.5 |
|
Tangible common equity to risk-weighted assets |
|
|
9.2 |
|
|
|
9.3 |
|
|
|
9.2 |
|
|
|
9.3 |
|
|
|
9.3 |
|
|
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 following 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, with the Companys capital adequacy being evaluated against the methodology that is most
restrictive. |
|
All regulatory ratios continue to be in excess of well-capitalized requirements.
The common equity tier 1 capital to risk-weighted assets ratio estimated for the Basel III standardized approach as if fully implemented was 9.1 percent at December 31, 2015, compared with 9.2 percent at September 30, 2015, and 9.0 percent
at December 31, 2014. The common equity tier 1 capital to risk-weighted assets ratio estimated for the Basel III advanced approaches as if fully implemented was 11.9 percent at December 31, 2015, compared with 12.4 percent at
September 30, 2015, and 11.8 percent at December 31, 2014.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
18
On Friday, January 15, 2016, at 8:00 a.m. CST, Richard K. Davis, chairman, president
and chief executive officer, and Kathy Rogers, vice chair and chief financial officer, will host a conference call to review the financial results. The conference call will be available online or by telephone. 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 near 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
76889596. For those unable to participate during the live call, a recording will be available at approximately 11:00 a.m. CST on Friday, January 15 and be accessible through Friday, January 22 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 76889596.
Minneapolis-based U.S. Bancorp (USB), with $422 billion in assets as of December 31, 2015, is the parent company of U.S. Bank
National Association, the fifth largest commercial bank in the United States. The Company operates 3,133 banking offices in 25 states and 4,936 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.
(MORE)
U.S. Bancorp Reports Fourth Quarter 2015 Results
January 15, 2016
Page
19
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; litigation; 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, 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, 2014, 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 2015 Results
January 15, 2016
Page
20
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, and
|
|
● |
|
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches. |
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars and Shares in Millions, Except Per Share Data) |
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
(Unaudited)
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
$2,583 |
|
|
|
$2,541 |
|
|
|
$10,059 |
|
|
|
$10,113 |
|
Loans held for sale |
|
|
40 |
|
|
|
41 |
|
|
|
206 |
|
|
|
128 |
|
Investment securities |
|
|
499 |
|
|
|
488 |
|
|
|
2,001 |
|
|
|
1,866 |
|
Other interest income |
|
|
34 |
|
|
|
32 |
|
|
|
136 |
|
|
|
121 |
|
Total interest income |
|
|
3,156 |
|
|
|
3,102 |
|
|
|
12,402 |
|
|
|
12,228 |
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
113 |
|
|
|
117 |
|
|
|
457 |
|
|
|
465 |
|
Short-term borrowings |
|
|
56 |
|
|
|
59 |
|
|
|
245 |
|
|
|
263 |
|
Long-term debt |
|
|
168 |
|
|
|
182 |
|
|
|
699 |
|
|
|
725 |
|
Total interest expense |
|
|
337 |
|
|
|
358 |
|
|
|
1,401 |
|
|
|
1,453 |
|
Net interest income |
|
|
2,819 |
|
|
|
2,744 |
|
|
|
11,001 |
|
|
|
10,775 |
|
Provision for credit losses |
|
|
305 |
|
|
|
288 |
|
|
|
1,132 |
|
|
|
1,229 |
|
Net interest income after provision for credit losses |
|
|
2,514 |
|
|
|
2,456 |
|
|
|
9,869 |
|
|
|
9,546 |
|
Noninterest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit and debit card revenue |
|
|
294 |
|
|
|
272 |
|
|
|
1,070 |
|
|
|
1,021 |
|
Corporate payment products revenue |
|
|
170 |
|
|
|
174 |
|
|
|
708 |
|
|
|
724 |
|
Merchant processing services |
|
|
393 |
|
|
|
384 |
|
|
|
1,547 |
|
|
|
1,511 |
|
ATM processing services |
|
|
79 |
|
|
|
80 |
|
|
|
318 |
|
|
|
321 |
|
Trust and investment management fees |
|
|
336 |
|
|
|
322 |
|
|
|
1,321 |
|
|
|
1,252 |
|
Deposit service charges |
|
|
182 |
|
|
|
180 |
|
|
|
702 |
|
|
|
693 |
|
Treasury management fees |
|
|
139 |
|
|
|
136 |
|
|
|
561 |
|
|
|
545 |
|
Commercial products revenue |
|
|
222 |
|
|
|
219 |
|
|
|
867 |
|
|
|
854 |
|
Mortgage banking revenue |
|
|
211 |
|
|
|
235 |
|
|
|
906 |
|
|
|
1,009 |
|
Investment products fees |
|
|
44 |
|
|
|
49 |
|
|
|
185 |
|
|
|
191 |
|
Securities gains (losses), net |
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
3 |
|
Other |
|
|
269 |
|
|
|
318 |
|
|
|
907 |
|
|
|
1,040 |
|
Total noninterest income |
|
|
2,340 |
|
|
|
2,370 |
|
|
|
9,092 |
|
|
|
9,164 |
|
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
|
|
1,212 |
|
|
|
1,151 |
|
|
|
4,812 |
|
|
|
4,523 |
|
Employee benefits |
|
|
272 |
|
|
|
245 |
|
|
|
1,167 |
|
|
|
1,041 |
|
Net occupancy and equipment |
|
|
246 |
|
|
|
248 |
|
|
|
991 |
|
|
|
987 |
|
Professional services |
|
|
125 |
|
|
|
132 |
|
|
|
423 |
|
|
|
414 |
|
Marketing and business development |
|
|
96 |
|
|
|
129 |
|
|
|
361 |
|
|
|
382 |
|
Technology and communications |
|
|
230 |
|
|
|
219 |
|
|
|
887 |
|
|
|
863 |
|
Postage, printing and supplies |
|
|
74 |
|
|
|
86 |
|
|
|
297 |
|
|
|
328 |
|
Other intangibles |
|
|
46 |
|
|
|
51 |
|
|
|
174 |
|
|
|
199 |
|
Other |
|
|
508 |
|
|
|
543 |
|
|
|
1,819 |
|
|
|
1,978 |
|
Total noninterest expense |
|
|
2,809 |
|
|
|
2,804 |
|
|
|
10,931 |
|
|
|
10,715 |
|
Income before income taxes |
|
|
2,045 |
|
|
|
2,022 |
|
|
|
8,030 |
|
|
|
7,995 |
|
Applicable income taxes |
|
|
556 |
|
|
|
521 |
|
|
|
2,097 |
|
|
|
2,087 |
|
Net income |
|
|
1,489 |
|
|
|
1,501 |
|
|
|
5,933 |
|
|
|
5,908 |
|
Net (income) loss attributable to noncontrolling interests |
|
|
(13 |
) |
|
|
(13 |
) |
|
|
(54 |
) |
|
|
(57 |
) |
Net income attributable to U.S. Bancorp |
|
|
$1,476 |
|
|
|
$1,488 |
|
|
|
$5,879 |
|
|
|
$5,851 |
|
Net income applicable to U.S. Bancorp common shareholders |
|
|
$1,404 |
|
|
|
$1,420 |
|
|
|
$5,608 |
|
|
|
$5,583 |
|
Earnings per common share |
|
|
$.80 |
|
|
|
$.79 |
|
|
|
$3.18 |
|
|
|
$3.10 |
|
Diluted earnings per common share |
|
|
$.80 |
|
|
|
$.79 |
|
|
|
$3.16 |
|
|
|
$3.08 |
|
Dividends declared per common share |
|
|
$.255 |
|
|
|
$.245 |
|
|
|
$1.010 |
|
|
|
$.965 |
|
Average common shares outstanding |
|
|
1,747 |
|
|
|
1,787 |
|
|
|
1,764 |
|
|
|
1,803 |
|
Average diluted common shares outstanding |
|
|
1,754 |
|
|
|
1,796 |
|
|
|
1,772 |
|
|
|
1,813 |
|
Page 21
U.S. Bancorp
Consolidated Ending Balance Sheet
|
|
|
|
|
|
|
|
|
(Dollars in Millions)
|
|
December 31, 2015 |
|
|
December 31, 2014 |
|
Assets |
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
$11,147 |
|
|
|
$10,654 |
|
Investment securities |
|
|
|
|
|
|
|
|
Held-to-maturity |
|
|
43,590 |
|
|
|
44,974 |
|
Available-for-sale |
|
|
61,997 |
|
|
|
56,069 |
|
Loans held for sale |
|
|
3,184 |
|
|
|
4,792 |
|
Loans |
|
|
|
|
|
|
|
|
Commercial |
|
|
88,402 |
|
|
|
80,377 |
|
Commercial real estate |
|
|
42,137 |
|
|
|
42,795 |
|
Residential mortgages |
|
|
53,496 |
|
|
|
51,619 |
|
Credit card |
|
|
21,012 |
|
|
|
18,515 |
|
Other retail |
|
|
51,206 |
|
|
|
49,264 |
|
|
|
|
|
|
Total loans, excluding covered loans |
|
|
256,253 |
|
|
|
242,570 |
|
Covered loans |
|
|
4,596 |
|
|
|
5,281 |
|
|
|
|
|
|
Total loans |
|
|
260,849 |
|
|
|
247,851 |
|
Less allowance for loan losses |
|
|
(3,863 |
) |
|
|
(4,039 |
) |
|
|
|
|
|
Net loans |
|
|
256,986 |
|
|
|
243,812 |
|
Premises and equipment |
|
|
2,513 |
|
|
|
2,618 |
|
Goodwill |
|
|
9,361 |
|
|
|
9,389 |
|
Other intangible assets |
|
|
3,350 |
|
|
|
3,162 |
|
Other assets |
|
|
29,725 |
|
|
|
27,059 |
|
|
|
|
|
|
Total assets |
|
|
$421,853 |
|
|
|
$402,529 |
|
|
|
|
|
|
Liabilities and Shareholders Equity |
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
|
$83,766 |
|
|
|
$77,323 |
|
Interest-bearing |
|
|
216,634 |
|
|
|
205,410 |
|
|
|
|
|
|
Total deposits |
|
|
300,400 |
|
|
|
282,733 |
|
Short-term borrowings |
|
|
27,877 |
|
|
|
29,893 |
|
Long-term debt |
|
|
32,078 |
|
|
|
32,260 |
|
Other liabilities |
|
|
14,681 |
|
|
|
13,475 |
|
|
|
|
|
|
Total liabilities |
|
|
375,036 |
|
|
|
358,361 |
|
Shareholders equity |
|
|
|
|
|
|
|
|
Preferred stock |
|
|
5,501 |
|
|
|
4,756 |
|
Common stock |
|
|
21 |
|
|
|
21 |
|
Capital surplus |
|
|
8,376 |
|
|
|
8,313 |
|
Retained earnings |
|
|
46,377 |
|
|
|
42,530 |
|
Less treasury stock |
|
|
(13,125 |
) |
|
|
(11,245 |
) |
Accumulated other comprehensive income (loss) |
|
|
(1,019 |
) |
|
|
(896 |
) |
|
|
|
|
|
Total U.S. Bancorp shareholders equity |
|
|
46,131 |
|
|
|
43,479 |
|
Noncontrolling interests |
|
|
686 |
|
|
|
689 |
|
|
|
|
|
|
Total equity |
|
|
46,817 |
|
|
|
44,168 |
|
|
|
|
|
|
Total liabilities and equity |
|
|
$421,853 |
|
|
|
$402,529 |
|
Page 22
U.S. Bancorp
Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in Millions, Unaudited) |
|
December 31, 2015 |
|
|
September 30, 2015 |
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
December 31, 2014 |
|
Total equity |
|
|
$46,817 |
|
|
|
$45,767 |
|
|
|
$45,231 |
|
|
|
$44,965 |
|
|
|
$44,168 |
|
Preferred stock |
|
|
(5,501 |
) |
|
|
(4,756 |
) |
|
|
(4,756 |
) |
|
|
(4,756 |
) |
|
|
(4,756 |
) |
Noncontrolling interests |
|
|
(686 |
) |
|
|
(692 |
) |
|
|
(694 |
) |
|
|
(688 |
) |
|
|
(689 |
) |
Goodwill (net of deferred tax liability) (1) |
|
|
(8,295 |
) |
|
|
(8,324 |
) |
|
|
(8,350 |
) |
|
|
(8,360 |
) |
|
|
(8,403 |
) |
Intangible assets, other than mortgage servicing rights |
|
|
(838 |
) |
|
|
(779 |
) |
|
|
(744 |
) |
|
|
(783 |
) |
|
|
(824 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity (a) |
|
|
31,497 |
|
|
|
31,216 |
|
|
|
30,687 |
|
|
|
30,378 |
|
|
|
29,496 |
|
|
|
|
|
|
|
Tangible common equity (as calculated above) |
|
|
31,497 |
|
|
|
31,216 |
|
|
|
30,687 |
|
|
|
30,378 |
|
|
|
29,496 |
|
Adjustments (2) |
|
|
67 |
|
|
|
118 |
|
|
|
125 |
|
|
|
158 |
|
|
|
172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital estimated for the Basel III fully implemented standardized and advanced approaches (b) |
|
|
31,564 |
|
|
|
31,334 |
|
|
|
30,812 |
|
|
|
30,536 |
|
|
|
29,668 |
|
|
|
|
|
|
|
Total assets |
|
|
421,853 |
|
|
|
415,943 |
|
|
|
419,075 |
|
|
|
410,233 |
|
|
|
402,529 |
|
Goodwill (net of deferred tax liability) (1) |
|
|
(8,295 |
) |
|
|
(8,324 |
) |
|
|
(8,350 |
) |
|
|
(8,360 |
) |
|
|
(8,403 |
) |
Intangible assets, other than mortgage servicing rights |
|
|
(838 |
) |
|
|
(779 |
) |
|
|
(744 |
) |
|
|
(783 |
) |
|
|
(824 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible assets (c) |
|
|
412,720 |
|
|
|
406,840 |
|
|
|
409,981 |
|
|
|
401,090 |
|
|
|
393,302 |
|
|
|
|
|
|
|
Risk-weighted assets, determined in accordance with prescribed transitional standardized approach regulatory requirements (d) |
|
|
341,360 |
* |
|
|
336,227 |
|
|
|
333,177 |
|
|
|
327,709 |
|
|
|
317,398 |
|
Adjustments (3) |
|
|
3,892 |
* |
|
|
3,532 |
|
|
|
3,532 |
|
|
|
3,153 |
|
|
|
11,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets estimated for the Basel III fully implemented standardized approach (e) |
|
|
345,252 |
* |
|
|
339,759 |
|
|
|
336,709 |
|
|
|
330,862 |
|
|
|
328,508 |
|
|
|
|
|
|
|
Risk-weighted assets, determined in accordance with prescribed transitional advanced approaches regulatory requirements |
|
|
261,668 |
* |
|
|
248,048 |
|
|
|
245,038 |
|
|
|
254,892 |
|
|
|
248,596 |
|
Adjustments (4) |
|
|
4,099 |
* |
|
|
3,723 |
|
|
|
3,721 |
|
|
|
3,321 |
|
|
|
3,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets estimated for the Basel III fully implemented advanced approaches (f) |
|
|
265,767 |
* |
|
|
251,771 |
|
|
|
248,759 |
|
|
|
258,213 |
|
|
|
251,866 |
|
|
|
|
|
|
|
Ratios * |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets (a)/(c) |
|
|
7.6 |
% |
|
|
7.7 |
% |
|
|
7.5 |
% |
|
|
7.6 |
% |
|
|
7.5 |
% |
Tangible common equity to risk-weighted assets (a)/(d) |
|
|
9.2 |
|
|
|
9.3 |
|
|
|
9.2 |
|
|
|
9.3 |
|
|
|
9.3 |
|
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach
(b)/(e) |
|
|
9.1 |
|
|
|
9.2 |
|
|
|
9.2 |
|
|
|
9.2 |
|
|
|
9.0 |
|
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully
implemented advanced approaches (b)/(f) |
|
|
11.9 |
|
|
|
12.4 |
|
|
|
12.4 |
|
|
|
11.8 |
|
|
|
11.8 |
|
* Preliminary data. Subject to change prior to filings with
applicable regulatory agencies.
(1) Includes goodwill related to certain investments in unconsolidated financial
institutions per prescribed regulatory requirements.
(2) Includes net losses on cash flow hedges included in
accumulated other comprehensive income (loss) and other adjustments.
(3) Includes higher risk-weighting for
unfunded loan commitments, investment securities, residential mortgages, mortgage servicing rights and other adjustments.
(4) Primarily reflects higher risk-weighting for mortgage servicing rights.
Page 23
Supplemental Business Line Schedules
4Q 2015
U.S. Bancorp Fourth Quarter 2015 Business Line Results
January 15, 2016
Page
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LINE OF BUSINESS FINANCIAL PERFORMANCE
(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable
to U.S. Bancorp |
|
|
Percent Change |
|
|
Net Income Attributable
to U.S. Bancorp |
|
|
4Q 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Line |
|
4Q 2015 |
|
|
3Q 2015 |
|
|
4Q 2014 |
|
|
4Q15 vs 3Q15 |
|
|
4Q15 vs 4Q14 |
|
|
Full Year 2015 |
|
|
Full Year 2014 |
|
|
Percent Change |
|
|
Earnings Composition |
|
|
|
Wholesale Banking and Commercial Real Estate |
|
$ |
209 |
|
|
$ |
213 |
|
|
$ |
275 |
|
|
|
(1.9 |
) |
|
|
(24.0 |
) |
|
$ |
884 |
|
|
$ |
1,092 |
|
|
|
(19.0 |
) |
|
|
14 |
% |
|
|
Consumer and Small Business Banking |
|
|
351 |
|
|
|
317 |
|
|
|
368 |
|
|
|
10.7 |
|
|
|
(4.6 |
) |
|
|
1,354 |
|
|
|
1,483 |
|
|
|
(8.7 |
) |
|
|
24 |
|
|
|
Wealth Management and Securities Services |
|
|
71 |
|
|
|
64 |
|
|
|
64 |
|
|
|
10.9 |
|
|
|
10.9 |
|
|
|
257 |
|
|
|
251 |
|
|
|
2.4 |
|
|
|
5 |
|
|
|
Payment Services |
|
|
326 |
|
|
|
320 |
|
|
|
304 |
|
|
|
1.9 |
|
|
|
7.2 |
|
|
|
1,160 |
|
|
|
1,138 |
|
|
|
1.9 |
|
|
|
22 |
|
|
|
Treasury and Corporate Support |
|
|
519 |
|
|
|
575 |
|
|
|
477 |
|
|
|
(9.7 |
) |
|
|
8.8 |
|
|
|
2,224 |
|
|
|
1,887 |
|
|
|
17.9 |
|
|
|
35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Company |
|
$ |
1,476 |
|
|
$ |
1,489 |
|
|
$ |
1,488 |
|
|
|
(.9 |
) |
|
|
(.8 |
) |
|
$ |
5,879 |
|
|
$ |
5,851 |
|
|
|
.5 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) preliminary data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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 2015, certain organization and methodology changes were made and, accordingly, prior period results were restated and presented on a comparable basis.
U.S. Bancorp Fourth Quarter 2015 Business Line Results
January 15, 2016
Page
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WHOLESALE BANKING AND COMMERCIAL REAL ESTATE (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Taxable-equivalent basis, $ in millions) |
|
|
|
|
|
|
|
|
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2015 |
|
|
3Q 2015 |
|
|
4Q 2014 |
|
|
4Q15 vs 3Q15 |
|
|
4Q15 vs 4Q14 |
|
|
Full Year 2015 |
|
|
Full Year 2014 |
|
|
Percent Change |
|
|
|
|
|
|
Condensed Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$514 |
|
|
|
$516 |
|
|
|
$521 |
|
|
|
(.4 |
) |
|
|
(1.3 |
) |
|
|
$2,034 |
|
|
|
$2,030 |
|
|
|
.2 |
|
Noninterest income |
|
|
223 |
|
|
|
223 |
|
|
|
234 |
|
|
|
|
|
|
|
(4.7 |
) |
|
|
890 |
|
|
|
965 |
|
|
|
(7.8 |
) |
Securities gains (losses), net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenue |
|
|
737 |
|
|
|
739 |
|
|
|
755 |
|
|
|
(.3 |
) |
|
|
(2.4 |
) |
|
|
2,924 |
|
|
|
2,995 |
|
|
|
(2.4 |
) |
Noninterest expense |
|
|
324 |
|
|
|
325 |
|
|
|
305 |
|
|
|
(.3 |
) |
|
|
6.2 |
|
|
|
1,295 |
|
|
|
1,224 |
|
|
|
5.8 |
|
Other intangibles |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
4 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
|
325 |
|
|
|
326 |
|
|
|
306 |
|
|
|
(.3 |
) |
|
|
6.2 |
|
|
|
1,299 |
|
|
|
1,228 |
|
|
|
5.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision and taxes |
|
|
412 |
|
|
|
413 |
|
|
|
449 |
|
|
|
(.2 |
) |
|
|
(8.2 |
) |
|
|
1,625 |
|
|
|
1,767 |
|
|
|
(8.0 |
) |
Provision for credit losses |
|
|
83 |
|
|
|
78 |
|
|
|
17 |
|
|
|
6.4 |
|
|
|
nm |
|
|
|
235 |
|
|
|
51 |
|
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
329 |
|
|
|
335 |
|
|
|
432 |
|
|
|
(1.8 |
) |
|
|
(23.8 |
) |
|
|
1,390 |
|
|
|
1,716 |
|
|
|
(19.0 |
) |
Income taxes and taxable-equivalent adjustment |
|
|
120 |
|
|
|
122 |
|
|
|
157 |
|
|
|
(1.6 |
) |
|
|
(23.6 |
) |
|
|
506 |
|
|
|
624 |
|
|
|
(18.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
209 |
|
|
|
213 |
|
|
|
275 |
|
|
|
(1.9 |
) |
|
|
(24.0 |
) |
|
|
884 |
|
|
|
1,092 |
|
|
|
(19.0 |
) |
Net (income) loss attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to U.S. Bancorp |
|
|
$209 |
|
|
|
$213 |
|
|
|
$275 |
|
|
|
(1.9 |
) |
|
|
(24.0 |
) |
|
|
$884 |
|
|
|
$1,092 |
|
|
|
(19.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
$86,034 |
|
|
|
$84,322 |
|
|
|
$79,619 |
|
|
|
2.0 |
|
|
|
8.1 |
|
|
|
$83,794 |
|
|
|
$76,522 |
|
|
|
9.5 |
|
Other earning assets |
|
|
1,997 |
|
|
|
2,258 |
|
|
|
1,958 |
|
|
|
(11.6 |
) |
|
|
2.0 |
|
|
|
2,245 |
|
|
|
1,887 |
|
|
|
19.0 |
|
Goodwill |
|
|
1,647 |
|
|
|
1,647 |
|
|
|
1,648 |
|
|
|
|
|
|
|
(.1 |
) |
|
|
1,647 |
|
|
|
1,627 |
|
|
|
1.2 |
|
Other intangible assets |
|
|
19 |
|
|
|
20 |
|
|
|
22 |
|
|
|
(5.0 |
) |
|
|
(13.6 |
) |
|
|
20 |
|
|
|
21 |
|
|
|
(4.8 |
) |
Assets |
|
|
94,108 |
|
|
|
92,503 |
|
|
|
87,308 |
|
|
|
1.7 |
|
|
|
7.8 |
|
|
|
92,205 |
|
|
|
83,787 |
|
|
|
10.0 |
|
Noninterest-bearing deposits |
|
|
37,775 |
|
|
|
36,589 |
|
|
|
34,053 |
|
|
|
3.2 |
|
|
|
10.9 |
|
|
|
36,018 |
|
|
|
32,302 |
|
|
|
11.5 |
|
Interest-bearing deposits |
|
|
51,510 |
|
|
|
50,150 |
|
|
|
47,687 |
|
|
|
2.7 |
|
|
|
8.0 |
|
|
|
50,508 |
|
|
|
47,018 |
|
|
|
7.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
|
89,285 |
|
|
|
86,739 |
|
|
|
81,740 |
|
|
|
2.9 |
|
|
|
9.2 |
|
|
|
86,526 |
|
|
|
79,320 |
|
|
|
9.1 |
|
Total U.S. Bancorp shareholders equity |
|
|
8,393 |
|
|
|
8,440 |
|
|
|
7,836 |
|
|
|
(.6 |
) |
|
|
7.1 |
|
|
|
8,251 |
|
|
|
7,568 |
|
|
|
9.0 |
|
|
|
|
|
|
|
|
|
|
(a) preliminary data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $209 million of the Companys net income in the fourth quarter of 2015, compared with $275 million in the fourth quarter of 2014. Wholesale Banking and Commercial Real
Estates net income decreased $66 million (24.0 percent) from the same quarter of 2014 due to increases in the provision for credit losses and total noninterest expense, along with a decrease in total net revenue. Total net revenue decreased
$18 million (2.4 percent), due to a $7 million (1.3 percent) decrease in net interest income and an $11 million (4.7 percent) decrease in
U.S. Bancorp Fourth Quarter 2015 Business Line Results
January 15, 2016
Page
4
total noninterest income. Net interest income decreased year-over-year, primarily due to lower rates and fees on loans, partially offset by higher average total loans. The decrease in total
noninterest income was driven by higher loan-related charges, partially offset by higher wholesale transaction activity. Total noninterest expense was $19 million (6.2 percent) higher compared with a year ago, primarily due to an increase in
variable costs allocated to manage the business and increased compensation and employee benefits expense, mainly due to higher variable compensation, merit and pension costs. The provision for credit losses increased $66 million due to an
unfavorable change in the reserve allocation driven by a decline in energy prices and an increase in net charge-offs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSUMER AND SMALL BUSINESS BANKING (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Taxable-equivalent basis, $ in millions) |
|
|
|
|
|
|
|
|
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q
2015 |
|
|
3Q
2015 |
|
|
4Q
2014 |
|
|
4Q15 vs 3Q15 |
|
|
4Q15 vs 4Q14 |
|
|
Full Year 2015 |
|
|
Full Year 2014 |
|
|
Percent Change |
|
|
|
|
|
|
Condensed Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$1,170 |
|
|
|
$1,161 |
|
|
|
$1,167 |
|
|
|
.8 |
|
|
|
.3 |
|
|
|
$4,617 |
|
|
|
$4,717 |
|
|
|
(2.1 |
) |
Noninterest income |
|
|
610 |
|
|
|
634 |
|
|
|
635 |
|
|
|
(3.8 |
) |
|
|
(3.9 |
) |
|
|
2,497 |
|
|
|
2,601 |
|
|
|
(4.0 |
) |
Securities gains (losses), net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenue |
|
|
1,780 |
|
|
|
1,795 |
|
|
|
1,802 |
|
|
|
(.8 |
) |
|
|
(1.2 |
) |
|
|
7,114 |
|
|
|
7,318 |
|
|
|
(2.8 |
) |
Noninterest expense |
|
|
1,187 |
|
|
|
1,253 |
|
|
|
1,150 |
|
|
|
(5.3 |
) |
|
|
3.2 |
|
|
|
4,818 |
|
|
|
4,552 |
|
|
|
5.8 |
|
Other intangibles |
|
|
10 |
|
|
|
10 |
|
|
|
12 |
|
|
|
|
|
|
|
(16.7 |
) |
|
|
40 |
|
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
|
1,197 |
|
|
|
1,263 |
|
|
|
1,162 |
|
|
|
(5.2 |
) |
|
|
3.0 |
|
|
|
4,858 |
|
|
|
4,592 |
|
|
|
5.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision and taxes |
|
|
583 |
|
|
|
532 |
|
|
|
640 |
|
|
|
9.6 |
|
|
|
(8.9 |
) |
|
|
2,256 |
|
|
|
2,726 |
|
|
|
(17.2 |
) |
Provision for credit losses |
|
|
31 |
|
|
|
33 |
|
|
|
61 |
|
|
|
(6.1 |
) |
|
|
(49.2 |
) |
|
|
127 |
|
|
|
393 |
|
|
|
(67.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
552 |
|
|
|
499 |
|
|
|
579 |
|
|
|
10.6 |
|
|
|
(4.7 |
) |
|
|
2,129 |
|
|
|
2,333 |
|
|
|
(8.7 |
) |
Income taxes and taxable-equivalent adjustment |
|
|
201 |
|
|
|
182 |
|
|
|
211 |
|
|
|
10.4 |
|
|
|
(4.7 |
) |
|
|
775 |
|
|
|
850 |
|
|
|
(8.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
351 |
|
|
|
317 |
|
|
|
368 |
|
|
|
10.7 |
|
|
|
(4.6 |
) |
|
|
1,354 |
|
|
|
1,483 |
|
|
|
(8.7 |
) |
Net (income) loss attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to U.S. Bancorp |
|
|
$351 |
|
|
|
$317 |
|
|
|
$368 |
|
|
|
10.7 |
|
|
|
(4.6 |
) |
|
|
$1,354 |
|
|
|
$1,483 |
|
|
|
(8.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
$133,676 |
|
|
|
$130,600 |
|
|
|
$131,404 |
|
|
|
2.4 |
|
|
|
1.7 |
|
|
|
$130,962 |
|
|
|
$130,300 |
|
|
|
.5 |
|
Other earning assets |
|
|
4,661 |
|
|
|
7,625 |
|
|
|
4,895 |
|
|
|
(38.9 |
) |
|
|
(4.8 |
) |
|
|
6,519 |
|
|
|
3,812 |
|
|
|
71.0 |
|
Goodwill |
|
|
3,681 |
|
|
|
3,682 |
|
|
|
3,681 |
|
|
|
|
|
|
|
|
|
|
|
3,682 |
|
|
|
3,603 |
|
|
|
2.2 |
|
Other intangible assets |
|
|
2,654 |
|
|
|
2,661 |
|
|
|
2,605 |
|
|
|
(.3 |
) |
|
|
1.9 |
|
|
|
2,594 |
|
|
|
2,674 |
|
|
|
(3.0 |
) |
Assets |
|
|
148,794 |
|
|
|
148,517 |
|
|
|
146,598 |
|
|
|
.2 |
|
|
|
1.5 |
|
|
|
147,832 |
|
|
|
144,137 |
|
|
|
2.6 |
|
Noninterest-bearing deposits |
|
|
27,034 |
|
|
|
26,833 |
|
|
|
25,386 |
|
|
|
.7 |
|
|
|
6.5 |
|
|
|
26,137 |
|
|
|
23,743 |
|
|
|
10.1 |
|
Interest-bearing deposits |
|
|
110,598 |
|
|
|
109,699 |
|
|
|
106,518 |
|
|
|
.8 |
|
|
|
3.8 |
|
|
|
109,599 |
|
|
|
104,147 |
|
|
|
5.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
|
137,632 |
|
|
|
136,532 |
|
|
|
131,904 |
|
|
|
.8 |
|
|
|
4.3 |
|
|
|
135,736 |
|
|
|
127,890 |
|
|
|
6.1 |
|
Total U.S. Bancorp shareholders equity |
|
|
10,795 |
|
|
|
10,690 |
|
|
|
11,494 |
|
|
|
1.0 |
|
|
|
(6.1 |
) |
|
|
10,953 |
|
|
|
11,484 |
|
|
|
(4.6 |
) |
|
|
|
|
|
|
|
|
|
(a) preliminary data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Bancorp Fourth Quarter 2015 Business Line Results
January 15, 2016
Page
5
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 and indirect lending, as
well as mortgage banking. Consumer and Small Business Banking contributed $351 million of the Companys net income in the fourth quarter of 2015, compared with $368 million in the fourth quarter of 2014. Consumer and Small Business
Bankings net income decreased $17 million (4.6 percent) from the same quarter of 2014 due to a decrease in total net revenue and an increase in total noninterest expense, partially offset by a decrease in the provision for credit losses. Total
net revenue decreased $22 million (1.2 percent). Net interest income was $3 million (0.3 percent) higher due to higher average loan and deposit balances. Noninterest income was $25 million (3.9 percent) lower, primarily due to lower mortgage banking
revenue as a result of an unfavorable change in the valuation of MSRs, net of hedging activities. Total noninterest expense in the fourth quarter of 2015 increased $35 million (3.0 percent) over the same quarter of the prior year, primarily due
higher mortgage servicing-related expenses, along with higher compensation and employee benefits expense, reflecting higher variable compensation, merit and pension costs. The provision for credit losses decreased $30 million (49.2 percent) due to
lower net charge-offs, along with a favorable change in the reserve allocation driven by improvements in the mortgage portfolio.
U.S. Bancorp Fourth Quarter 2015 Business Line Results
January 15, 2016
Page
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEALTH MANAGEMENT AND SECURITIES SERVICES (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Taxable-equivalent basis, $ in millions) |
|
|
|
|
|
|
|
|
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2015 |
|
|
3Q 2015 |
|
|
4Q 2014 |
|
|
4Q15 vs 3Q15 |
|
|
4Q15 vs 4Q14 |
|
|
Full Year 2015 |
|
|
Full Year 2014 |
|
|
Percent Change |
|
|
|
|
|
|
Condensed Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$110 |
|
|
|
$98 |
|
|
|
$95 |
|
|
|
12.2 |
|
|
|
15.8 |
|
|
|
$386 |
|
|
|
$383 |
|
|
|
.8 |
|
Noninterest income |
|
|
372 |
|
|
|
366 |
|
|
|
357 |
|
|
|
1.6 |
|
|
|
4.2 |
|
|
|
1,466 |
|
|
|
1,396 |
|
|
|
5.0 |
|
Securities gains (losses), net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenue |
|
|
482 |
|
|
|
464 |
|
|
|
452 |
|
|
|
3.9 |
|
|
|
6.6 |
|
|
|
1,852 |
|
|
|
1,779 |
|
|
|
4.1 |
|
Noninterest expense |
|
|
364 |
|
|
|
355 |
|
|
|
342 |
|
|
|
2.5 |
|
|
|
6.4 |
|
|
|
1,420 |
|
|
|
1,343 |
|
|
|
5.7 |
|
Other intangibles |
|
|
7 |
|
|
|
7 |
|
|
|
8 |
|
|
|
|
|
|
|
(12.5 |
) |
|
|
28 |
|
|
|
33 |
|
|
|
(15.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
|
371 |
|
|
|
362 |
|
|
|
350 |
|
|
|
2.5 |
|
|
|
6.0 |
|
|
|
1,448 |
|
|
|
1,376 |
|
|
|
5.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision and taxes |
|
|
111 |
|
|
|
102 |
|
|
|
102 |
|
|
|
8.8 |
|
|
|
8.8 |
|
|
|
404 |
|
|
|
403 |
|
|
|
.2 |
|
Provision for credit losses |
|
|
|
|
|
|
1 |
|
|
|
1 |
|
|
|
nm |
|
|
|
nm |
|
|
|
|
|
|
|
9 |
|
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
111 |
|
|
|
101 |
|
|
|
101 |
|
|
|
9.9 |
|
|
|
9.9 |
|
|
|
404 |
|
|
|
394 |
|
|
|
2.5 |
|
Income taxes and taxable-equivalent adjustment |
|
|
40 |
|
|
|
37 |
|
|
|
37 |
|
|
|
8.1 |
|
|
|
8.1 |
|
|
|
147 |
|
|
|
143 |
|
|
|
2.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
71 |
|
|
|
64 |
|
|
|
64 |
|
|
|
10.9 |
|
|
|
10.9 |
|
|
|
257 |
|
|
|
251 |
|
|
|
2.4 |
|
Net (income) loss attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to U.S. Bancorp |
|
|
$71 |
|
|
|
$64 |
|
|
|
$64 |
|
|
|
10.9 |
|
|
|
10.9 |
|
|
|
$257 |
|
|
|
$251 |
|
|
|
2.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
$6,639 |
|
|
|
$6,215 |
|
|
|
$5,722 |
|
|
|
6.8 |
|
|
|
16.0 |
|
|
|
$6,226 |
|
|
|
$5,420 |
|
|
|
14.9 |
|
Other earning assets |
|
|
172 |
|
|
|
192 |
|
|
|
210 |
|
|
|
(10.4 |
) |
|
|
(18.1 |
) |
|
|
191 |
|
|
|
182 |
|
|
|
4.9 |
|
Goodwill |
|
|
1,567 |
|
|
|
1,567 |
|
|
|
1,570 |
|
|
|
|
|
|
|
(.2 |
) |
|
|
1,567 |
|
|
|
1,568 |
|
|
|
(.1 |
) |
Other intangible assets |
|
|
116 |
|
|
|
123 |
|
|
|
146 |
|
|
|
(5.7 |
) |
|
|
(20.5 |
) |
|
|
126 |
|
|
|
159 |
|
|
|
(20.8 |
) |
Assets |
|
|
9,470 |
|
|
|
9,053 |
|
|
|
8,739 |
|
|
|
4.6 |
|
|
|
8.4 |
|
|
|
9,178 |
|
|
|
8,500 |
|
|
|
8.0 |
|
Noninterest-bearing deposits |
|
|
16,297 |
|
|
|
14,997 |
|
|
|
15,246 |
|
|
|
8.7 |
|
|
|
6.9 |
|
|
|
14,469 |
|
|
|
15,157 |
|
|
|
(4.5 |
) |
Interest-bearing deposits |
|
|
46,339 |
|
|
|
46,677 |
|
|
|
41,520 |
|
|
|
(.7 |
) |
|
|
11.6 |
|
|
|
45,272 |
|
|
|
39,139 |
|
|
|
15.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
|
62,636 |
|
|
|
61,674 |
|
|
|
56,766 |
|
|
|
1.6 |
|
|
|
10.3 |
|
|
|
59,741 |
|
|
|
54,296 |
|
|
|
10.0 |
|
Total U.S. Bancorp shareholders equity |
|
|
2,325 |
|
|
|
2,304 |
|
|
|
2,286 |
|
|
|
.9 |
|
|
|
1.7 |
|
|
|
2,308 |
|
|
|
2,284 |
|
|
|
1.1 |
|
|
|
|
|
|
|
|
|
|
(a)
preliminary data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $71 million of the Companys net income in the fourth quarter of 2015, compared with $64 million in the fourth quarter of 2014. The business lines contribution was $7
million (10.9 percent) higher than the same quarter of 2014, primarily reflecting an increase in total net revenue, partially offset by an increase in total noninterest expense. Total net revenue increased $30 million (6.6 percent) year-over-year,
driven by a $15 million (4.2 percent) increase in total noninterest income, reflecting the impact of account growth and improved market
U.S. Bancorp Fourth Quarter 2015 Business Line Results
January 15, 2016
Page
7
conditions and lower fee waivers, along with an increase in net interest income of $15 million (15.8 percent), principally due to higher average deposit balances. Total noninterest expense
increased $21 million (6.0 percent), primarily as a result of higher net shared services expense and increased compensation and employee benefits expense due to merit and pension costs. The provision for credit losses was relatively flat
year-over-year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAYMENT SERVICES (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Taxable-equivalent basis, $ in millions) |
|
|
|
|
|
|
|
|
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2015 |
|
|
3Q 2015 |
|
|
4Q 2014 |
|
|
4Q15 vs 3Q15 |
|
|
4Q15 vs 4Q14 |
|
|
Full Year 2015 |
|
|
Full Year 2014 |
|
|
Percent Change |
|
|
|
|
|
|
Condensed Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$520 |
|
|
|
$484 |
|
|
|
$471 |
|
|
|
7.4 |
|
|
|
10.4 |
|
|
|
$1,930 |
|
|
|
$1,749 |
|
|
|
10.3 |
|
Noninterest income |
|
|
870 |
|
|
|
874 |
|
|
|
843 |
|
|
|
(.5 |
) |
|
|
3.2 |
|
|
|
3,371 |
|
|
|
3,292 |
|
|
|
2.4 |
|
Securities gains (losses), net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenue |
|
|
1,390 |
|
|
|
1,358 |
|
|
|
1,314 |
|
|
|
2.4 |
|
|
|
5.8 |
|
|
|
5,301 |
|
|
|
5,041 |
|
|
|
5.2 |
|
Noninterest expense |
|
|
637 |
|
|
|
639 |
|
|
|
601 |
|
|
|
(.3 |
) |
|
|
6.0 |
|
|
|
2,540 |
|
|
|
2,310 |
|
|
|
10.0 |
|
Other intangibles |
|
|
28 |
|
|
|
24 |
|
|
|
30 |
|
|
|
16.7 |
|
|
|
(6.7 |
) |
|
|
102 |
|
|
|
122 |
|
|
|
(16.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
|
665 |
|
|
|
663 |
|
|
|
631 |
|
|
|
.3 |
|
|
|
5.4 |
|
|
|
2,642 |
|
|
|
2,432 |
|
|
|
8.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision and taxes |
|
|
725 |
|
|
|
695 |
|
|
|
683 |
|
|
|
4.3 |
|
|
|
6.1 |
|
|
|
2,659 |
|
|
|
2,609 |
|
|
|
1.9 |
|
Provision for credit losses |
|
|
202 |
|
|
|
180 |
|
|
|
193 |
|
|
|
12.2 |
|
|
|
4.7 |
|
|
|
787 |
|
|
|
766 |
|
|
|
2.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
523 |
|
|
|
515 |
|
|
|
490 |
|
|
|
1.6 |
|
|
|
6.7 |
|
|
|
1,872 |
|
|
|
1,843 |
|
|
|
1.6 |
|
Income taxes and taxable-equivalent adjustment |
|
|
190 |
|
|
|
187 |
|
|
|
178 |
|
|
|
1.6 |
|
|
|
6.7 |
|
|
|
681 |
|
|
|
670 |
|
|
|
1.6 |
|
Net income |
|
|
333 |
|
|
|
328 |
|
|
|
312 |
|
|
|
1.5 |
|
|
|
6.7 |
|
|
|
1,191 |
|
|
|
1,173 |
|
|
|
1.5 |
|
Net (income) loss attributable to noncontrolling interests |
|
|
(7 |
) |
|
|
(8 |
) |
|
|
(8 |
) |
|
|
12.5 |
|
|
|
12.5 |
|
|
|
(31 |
) |
|
|
(35 |
) |
|
|
11.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to U.S. Bancorp |
|
|
$326 |
|
|
|
$320 |
|
|
|
$304 |
|
|
|
1.9 |
|
|
|
7.2 |
|
|
|
$1,160 |
|
|
|
$1,138 |
|
|
|
1.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
$26,719 |
|
|
|
$25,769 |
|
|
|
$25,597 |
|
|
|
3.7 |
|
|
|
4.4 |
|
|
|
$25,712 |
|
|
|
$24,854 |
|
|
|
3.5 |
|
Other earning assets |
|
|
1,039 |
|
|
|
402 |
|
|
|
309 |
|
|
|
nm |
|
|
|
nm |
|
|
|
526 |
|
|
|
388 |
|
|
|
35.6 |
|
Goodwill |
|
|
2,469 |
|
|
|
2,475 |
|
|
|
2,499 |
|
|
|
(.2 |
) |
|
|
(1.2 |
) |
|
|
2,474 |
|
|
|
2,514 |
|
|
|
(1.6 |
) |
Other intangible assets |
|
|
436 |
|
|
|
381 |
|
|
|
454 |
|
|
|
14.4 |
|
|
|
(4.0 |
) |
|
|
411 |
|
|
|
484 |
|
|
|
(15.1 |
) |
Assets |
|
|
33,082 |
|
|
|
31,584 |
|
|
|
31,681 |
|
|
|
4.7 |
|
|
|
4.4 |
|
|
|
31,796 |
|
|
|
31,097 |
|
|
|
2.2 |
|
Noninterest-bearing deposits |
|
|
891 |
|
|
|
851 |
|
|
|
846 |
|
|
|
4.7 |
|
|
|
5.3 |
|
|
|
879 |
|
|
|
740 |
|
|
|
18.8 |
|
Interest-bearing deposits |
|
|
708 |
|
|
|
710 |
|
|
|
628 |
|
|
|
(.3 |
) |
|
|
12.7 |
|
|
|
696 |
|
|
|
633 |
|
|
|
10.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
|
1,599 |
|
|
|
1,561 |
|
|
|
1,474 |
|
|
|
2.4 |
|
|
|
8.5 |
|
|
|
1,575 |
|
|
|
1,373 |
|
|
|
14.7 |
|
Total U.S. Bancorp shareholders equity |
|
|
6,044 |
|
|
|
5,829 |
|
|
|
5,764 |
|
|
|
3.7 |
|
|
|
4.9 |
|
|
|
5,868 |
|
|
|
5,697 |
|
|
|
3.0 |
|
|
|
|
|
|
|
|
|
|
(a)
preliminary data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $326 million of the Companys net income in the fourth quarter of 2015,
U.S. Bancorp Fourth Quarter 2015 Business Line Results
January 15, 2016
Page
8
compared with $304 million in the fourth quarter of 2014. The $22 million (7.2 percent) increase in the business lines contribution from the prior year was due to an increase in total net
revenue, partially offset by an increase in noninterest expense and an increase in the provision for credit losses. Total net revenue increased $76 million (5.8 percent) year-over-year. Net interest income increased $49 million (10.4 percent),
primarily due to improved loan rates and higher average loan balances and fees. Total noninterest income was $27 million (3.2 percent) higher year-over-year due to an increase in credit and debit card revenue on higher transaction volumes, along
with higher merchant processing services, driven by increased transaction volumes and product fees and equipment sales to merchants related to new chip card technology requirements, partially offset by the impact of foreign currency rate changes.
Total noninterest expense increased $34 million (5.4 percent) over the fourth quarter of 2014, driven by higher net shared services, compensation and marketing expenses. The provision for credit losses increased $9 million (4.7 percent) due to
higher net charge-offs.
U.S. Bancorp Fourth Quarter 2015 Business Line Results
January 15, 2016
Page
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TREASURY AND CORPORATE SUPPORT (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Taxable-equivalent basis, $ in millions) |
|
|
|
|
|
|
|
|
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2015 |
|
|
3Q 2015 |
|
|
4Q 2014 |
|
|
4Q15 vs 3Q15 |
|
|
4Q15 vs 4Q14 |
|
|
Full Year 2015 |
|
|
Full Year 2014 |
|
|
Percent Change |
|
|
|
|
|
|
Condensed Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$557 |
|
|
|
$562 |
|
|
|
$545 |
|
|
|
(.9 |
) |
|
|
2.2 |
|
|
|
$2,247 |
|
|
|
$2,118 |
|
|
|
6.1 |
|
Noninterest income |
|
|
264 |
|
|
|
230 |
|
|
|
300 |
|
|
|
14.8 |
|
|
|
(12.0 |
) |
|
|
868 |
|
|
|
907 |
|
|
|
(4.3 |
) |
Securities gains (losses), net |
|
|
1 |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenue |
|
|
822 |
|
|
|
791 |
|
|
|
846 |
|
|
|
3.9 |
|
|
|
(2.8 |
) |
|
|
3,115 |
|
|
|
3,028 |
|
|
|
2.9 |
|
Noninterest expense |
|
|
251 |
|
|
|
161 |
|
|
|
355 |
|
|
|
55.9 |
|
|
|
(29.3 |
) |
|
|
684 |
|
|
|
1,087 |
|
|
|
(37.1 |
) |
Other intangibles |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
|
251 |
|
|
|
161 |
|
|
|
355 |
|
|
|
55.9 |
|
|
|
(29.3 |
) |
|
|
684 |
|
|
|
1,087 |
|
|
|
(37.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision and taxes |
|
|
571 |
|
|
|
630 |
|
|
|
491 |
|
|
|
(9.4 |
) |
|
|
16.3 |
|
|
|
2,431 |
|
|
|
1,941 |
|
|
|
25.2 |
|
Provision for credit losses |
|
|
(11 |
) |
|
|
(10 |
) |
|
|
16 |
|
|
|
(10.0 |
) |
|
|
nm |
|
|
|
(17 |
) |
|
|
10 |
|
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
582 |
|
|
|
640 |
|
|
|
475 |
|
|
|
(9.1 |
) |
|
|
22.5 |
|
|
|
2,448 |
|
|
|
1,931 |
|
|
|
26.8 |
|
Income taxes and taxable-equivalent adjustment |
|
|
57 |
|
|
|
59 |
|
|
|
(7 |
) |
|
|
(3.4 |
) |
|
|
nm |
|
|
|
201 |
|
|
|
22 |
|
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
525 |
|
|
|
581 |
|
|
|
482 |
|
|
|
(9.6 |
) |
|
|
8.9 |
|
|
|
2,247 |
|
|
|
1,909 |
|
|
|
17.7 |
|
Net (income) loss attributable to noncontrolling interests |
|
|
(6 |
) |
|
|
(6 |
) |
|
|
(5 |
) |
|
|
|
|
|
|
(20.0 |
) |
|
|
(23 |
) |
|
|
(22 |
) |
|
|
(4.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to U.S. Bancorp |
|
|
$519 |
|
|
|
$575 |
|
|
|
$477 |
|
|
|
(9.7 |
) |
|
|
8.8 |
|
|
|
$2,224 |
|
|
|
$1,887 |
|
|
|
17.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
$3,624 |
|
|
|
$3,630 |
|
|
|
$4,079 |
|
|
|
(.2 |
) |
|
|
(11.2 |
) |
|
|
$3,765 |
|
|
|
$4,596 |
|
|
|
(18.1 |
) |
Other earning assets |
|
|
108,530 |
|
|
|
108,252 |
|
|
|
101,168 |
|
|
|
.3 |
|
|
|
7.3 |
|
|
|
107,505 |
|
|
|
93,033 |
|
|
|
15.6 |
|
Goodwill |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other intangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
129,668 |
|
|
|
128,782 |
|
|
|
120,390 |
|
|
|
.7 |
|
|
|
7.7 |
|
|
|
127,854 |
|
|
|
112,483 |
|
|
|
13.7 |
|
Noninterest-bearing deposits |
|
|
1,897 |
|
|
|
1,670 |
|
|
|
1,427 |
|
|
|
13.6 |
|
|
|
32.9 |
|
|
|
1,700 |
|
|
|
1,513 |
|
|
|
12.4 |
|
Interest-bearing deposits |
|
|
1,456 |
|
|
|
1,516 |
|
|
|
2,168 |
|
|
|
(4.0 |
) |
|
|
(32.8 |
) |
|
|
1,873 |
|
|
|
2,248 |
|
|
|
(16.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
|
3,353 |
|
|
|
3,186 |
|
|
|
3,595 |
|
|
|
5.2 |
|
|
|
(6.7 |
) |
|
|
3,573 |
|
|
|
3,761 |
|
|
|
(5.0 |
) |
Total U.S. Bancorp shareholders equity |
|
|
18,216 |
|
|
|
17,604 |
|
|
|
16,463 |
|
|
|
3.5 |
|
|
|
10.6 |
|
|
|
17,433 |
|
|
|
15,804 |
|
|
|
10.3 |
|
|
|
|
|
|
|
|
|
|
(a)
preliminary data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 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 $519 million in the fourth quarter of 2015, compared with $477 million
in the fourth quarter of 2014. The increase in net income of $42 million (8.8 percent) over the prior year was due to decreases in total noninterest expense and the provision for credit losses, partially offset by a decrease in total net revenue.
Net interest income increased $12 million (2.2 percent) over the fourth quarter of 2014, principally
U.S. Bancorp Fourth Quarter 2015 Business Line Results
January 15, 2016
Page
10
due to growth in the investment portfolio. Total noninterest income decreased $36 million (12.0 percent) from the fourth quarter of last year, mainly due to the 2014 Nuveen gain, partially offset
by the HSA deposit sale. Total noninterest expense decreased $104 million (29.3 percent), principally due to the notable items in the fourth quarter of 2014, partially offset by higher compensation and employee benefits expense, reflecting higher
pension costs, the impact of merit increases and staffing for risk and compliance activities. The provision for credit losses was $27 million lower year-over-year, primarily due to lower net charge-offs, along with a favorable change in the reserve
allocation.
U.S.
Bancorp 4Q15 Earnings
Conference Call Richard K. Davis Chairman, President and CEO January 15, 2016 Kathy Rogers Vice Chairman and CFO Exhibit 99.2 |
2 U.S. BANCORP | 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; litigation;
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, 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, 2014, 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 U.S. BANCORP | Full Year 2015 Highlights Record net income of $5.9 billion; $3.16 per diluted common share Industry-leading profitability measures, including ROA of 1.44%, ROCE of 14.0% and efficiency ratio of 53.8% Average loan growth of 4.1%* vs. 2014 and average deposit growth of 7.7% vs. 2014 Net charge-offs declined 12.1% vs. 2014 Nonperforming assets declined 15.8% vs. 2014 Capital generation continues to reinforce capital position End of period common equity tier 1 capital ratio of 9.1% estimated for the Basel III
fully implemented standardized approach
Repurchased 52 million shares of common stock during 2015 Returned $4.0 billion, or 72%, of earnings to shareholders in 2015 * Loan growth excludes student loans, which were transferred from held for sale at the end of 1Q15 and returned to held for investment during
3Q15 |
4 U.S. BANCORP | 4Q15 Highlights Record revenue of $5.2 billion Net income of $1.5 billion; $0.80 per diluted common share Average loan growth of 1.7%* vs. 3Q15 and 4.2% vs. 4Q14 Average deposit growth of 1.7% vs. 3Q15 and 6.9% vs. 4Q14 Continued momentum in payment-related fee revenue led by a year-over-year
increase in credit and debit card revenue of 8.1%
Net charge-offs declined 1.0% vs. 4Q14 and increased 4.5% vs. 3Q15 Nonperforming assets declined 15.8% vs. 4Q14 and 2.8% vs. 3Q15 Capital generation continues to reinforce capital position End of period common equity tier 1 capital ratio of 9.1% estimated for the Basel III
fully implemented standardized approach
Returned 61% of earnings to shareholders in 4Q15 * Loan growth excludes student loans, which were transferred from held for sale at the end of 1Q15 and returned to held for investment during
3Q15 |
5 U.S. BANCORP | Performance Ratios Return on Average Common Equity and Return on Average Assets Efficiency Ratio and Net Interest Margin Efficiency ratio 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)
14.4% 14.1% 14.3% 14.1% 13.7% 1.50% 1.44% 1.46% 1.44% 1.41% 1.0% 1.5% 2.0% 2.5% 3.0% 8% 11% 14% 17% 20% 4Q14 1Q15 2Q15 3Q15 4Q15 Return on Avg Common Equity Return on Avg Assets Efficiency Ratio Net Interest Margin 54.3% 54.3% 53.2% 53.9% 53.9% 3.14% 3.08% 3.03% 3.04% 3.06% 1.6% 2.2% 2.8% 3.4% 4.0% 48% 52% 56% 60% 64% 4Q14 1Q15 2Q15 3Q15 4Q15 |
6 U.S. BANCORP | Revenue Growth Notable items: 2Q14 Visa gain $214 million; 4Q14 Nuveen gain $124 million; 3Q15 Visa gain $135 million, student loan market value adjustment
($58) million Taxable-equivalent basis
Year-Over-Year Change
5.7% 1.9% (2.8%) 3.1% 0.8% $ in millions $5,169 $4,906 $5,042 $5,147 $5,211 3,500 4,000 4,500 5,000 5,500 4Q14 1Q15 2Q15 3Q15 4Q15 |
7 U.S. BANCORP | Loan and Deposit Growth Year-Over-Year Growth Average Balances 200 225 250 275 300 4Q14 1Q15 2Q15 3Q15 4Q15 Loans Deposits 2.5% $246.6 2.7% $250.5 4.2% $256.7 5.9%
$246.4 5.1% $248.0 8.9% $285.7 6.9% $289.7 6.9% $294.5 7.2% $275.5 8.1% $278.5 $ in billions 3.8% adjusted* 4.0% adjusted* * Loan growth excludes student loans, which were transferred from held for sale at the end of 1Q15 and returned to held for investment during
3Q15 |
8 U.S. BANCORP | Credit Quality Net Charge-offs Nonperforming Assets $ in millions $308 $279 $296 $292 $305 0.50% 0.46% 0.48% 0.46% 0.47% 0.00% 0.75% 1.50% 2.25% 3.00% 0 130 260 390 520 4Q14 1Q15 2Q15 3Q15 4Q15 $1,808 $1,696 $1,577 $1,567 $1,523 0.73% 0.69% 0.63% 0.61% 0.58% 0.00% 0.75% 1.50% 2.25% 3.00% 0 700 1,400 2,100 2,800 4Q14 1Q15 2Q15 3Q15 4Q15 Net Charge-offs (Left Scale) NCOs to Avg Loans (Right Scale) Nonperforming Assets (Left Scale) NPAs to Loans plus ORE (Right Scale) |
9 U.S. BANCORP | Earnings Summary Taxable-equivalent basis $ and shares in millions, except per-share data FY FY 4Q15 3Q15 4Q14 vs 3Q15 vs 4Q14 2015 2014 %B/(W) Net Interest Income 2,871 $ 2,821 $ 2,799 $ 1.8 2.6 11,214 $ 10,997 $ 2.0 Noninterest Income 2,340 2,326 2,370 0.6 (1.3) 9,092 9,164 (0.8) Net Revenue 5,211 5,147 5,169 1.2 0.8 20,306 20,161 0.7 Noninterest Expense 2,809 2,775 2,804 (1.2) (0.2) 10,931 10,715 (2.0) Operating Income 2,402 2,372 2,365 1.3 1.6 9,375 9,446 (0.8) Net Charge-offs 305 292 308 (4.5) 1.0 1,172 1,334 12.1 Excess Provision - (10) (20) - - (40) (105) (61.9) Income before Taxes 2,097 2,090 2,077 0.3 1.0 8,243 8,217 0.3 Applicable Income Taxes 608 587 576 (3.6) (5.6) 2,310 2,309 - Noncontrolling Interests (13) (14) (13) 7.1 - (54) (57) 5.3 Net Income 1,476 1,489 1,488 (0.9) (0.8) 5,879 5,851 0.5 Preferred Dividends/Other 72 67 68 (7.5) (5.9) 271 268 (1.1) NI to Common 1,404 $ 1,422 $ 1,420 $ (1.3) (1.1) 5,608 $ 5,583 $ 0.4 Diluted EPS $0.80 0.81 $ 0.79 $ (1.2) 1.3 3.16 $ 3.08 $ 2.6 Average Diluted Shares 1,754 1,766 1,796 0.7 2.3 1,772 1,813 2.3 % B/(W) |
10 U.S. BANCORP | Net Interest Income Net Interest Income Key Points vs. 4Q14 Average earning assets grew $18.1 billion, or 5.1% Net interest margin lower 8 bps (3.06% vs. 3.14%) Change in loan portfolio mix, as well as growth in the investment portfolio at lower average rates and lower reinvestment rates on investment securities vs. 3Q15 Average earning assets grew $3.8 billion, or 1.0% Net interest margin higher 2 bps (3.06% vs. 3.04%) Principally due to loan growth which also resulted in lower cash balances Year-Over-Year Change 2.4% 1.7% 0.9% 2.7% 2.6% $ in millions Taxable-equivalent basis $2,799 $2,752 $2,770 $2,821 $2,871 3.14% 3.08% 3.03% 3.04% 3.06% 0.0% 2.0% 4.0% 6.0% 8.0% 0 1,000 2,000 3,000 4,000 4Q14 1Q15 2Q15 3Q15 4Q15 Net Interest Income Net Interest Margin |
11 U.S. BANCORP | Noninterest Income $587 $446 $472 $505 $536 $235 $240 $231 $224 $211 $396 $376 $396 $409 $400 $322 $322 $334 $329 $336 $830 $770 $839 $859 $857 0 700 1,400 2,100 2,800 4Q14 1Q15 2Q15 3Q15 4Q15 Noninterest Income Key Points vs. 4Q14 Noninterest income decreased $30 million, or 1.3% Higher credit and debit card revenue (8.1% increase) due to higher transaction volumes and higher merchant processing services revenues (2.3% increase) due to higher transaction volumes, account growth and equipment sales to merchants Higher trust and investment management fees (4.3% increase) Lower mortgage banking revenue primarily due to an unfavorable change in the valuation of MSRs, net of hedging activities Lower other income due to the impact of the 4Q14 Nuveen gain, partially offset by the HSA deposit sale vs. 3Q15 Noninterest income increased $14 million, or 0.6% Higher credit and debit card revenue (9.3% increase) primarily due to seasonally higher sales volumes Lower mortgage banking revenue primarily due to lower origination revenue Lower corporate payment products revenue (10.5% decrease) reflecting the impact of seasonally higher 3Q15 government- related transaction volumes Higher other income reflecting the net impact of prior quarter notable items including the Visa Inc. Class B common stock sales and the student loan market adjustment, offset by the HSA deposit sale and other equity investment income Year-Over-Year Change 9.9% 2.2% (7.0%) 3.7% (1.3%) $2,340 $2,370 $2,154 $2,272 $2,326 All Other Mortgage Service Charges Trust and Inv Mgmt Payments Notable items: 4Q14 Nuveen gain $124 million; 3Q15 Visa gain $135 million, student loan market value adjustment ($58) million
Payments = credit and debit card, corporate payment products and merchant
processing Service charges = deposit service charges, treasury management
and ATM processing $ in millions |
12 U.S. BANCORP | Noninterest Expense $594 $479 $459 $501 $554 $219 $214 $221 $222 $230 $347 $229 $266 $291 $295 $248 $247 $247 $251 $246 $1,396 $1,496 $1,489 $1,510 $1,484 0 800 1,600 2,400 3,200 4Q14 1Q15 2Q15 3Q15 4Q15 Noninterest Expense Key Points vs. 4Q14 Noninterest expense increased $5 million, or 0.2% Higher compensation (5.3% increase) reflecting the impact of merit increases and higher staffing for risk and compliance activities Higher employee benefits expense (11.0% increase) mainly due to higher pension costs Lower marketing and business development expense (25.6% decrease) primarily due to charitable contributions in 4Q14 Lower other noninterest expense reflecting the impact of prior year legal accruals partially offset by higher compliance-related expenses vs. 3Q15 Noninterest expense increased $34 million, or 1.2% Lower compensation expense (1.1% decrease) reflecting the impact of expense management initiatives and decreases in variable compensation Lower employee benefits expense (4.6% decrease) driven by lower payroll tax expense and healthcare costs Higher other noninterest expense due to seasonally higher costs related to investments in tax-advantaged projects and accruals related to legal and compliance matters, partially offset by the favorable impact of reduced mortgage-related compliance and talent upgrade costs which were elevated in 3Q15 Year-Over-Year Change 4.5% 4.8% (2.6%) 6.2% 0.2% $2,809 $2,804 $2,665 $2,682 $2,775 All Other Tech and Communications Prof Svcs, Marketing and PPS Occupancy and Equipment Compensation and Benefits Notable items: 4Q14 charitable contributions and accruals for legal matters $88 million; 3Q15 elevated expenses related to mortgage-related
compliance and the company-wide talent upgrade costs $60
million $ in millions |
13 U.S. BANCORP | Capital Position * RWA = risk-weighted assets $ in billions 4Q15 3Q15 2Q15 1Q15 4Q14 Total U.S. Bancorp shareholders' equity 46.1 $ 45.1 $ 44.5 $ 44.3 $ 43.5 $ Standardized Approach Basel III transitional standardized approach Common equity tier 1 capital ratio 9.6% 9.6% 9.5% 9.6% 9.7% Tier 1 capital ratio 11.3% 11.1% 11.0% 11.1% 11.3% Total risk-based capital ratio 13.3% 13.1% 13.1% 13.3% 13.6% Leverage ratio 9.5% 9.3% 9.2% 9.3% 9.3% Common equity tier 1 capital to RWA* estimated for the Basel III fully implemented standardized approach 9.1% 9.2% 9.2% 9.2% 9.0% Advanced Approaches Common equity tier 1 capital to RWA for the Basel III transitional advanced approaches 12.5% 13.0% 12.9% 12.3% 12.4% Common equity tier 1 capital to RWA estimated for the Basel III fully implemented advanced approaches 11.9% 12.4% 12.4% 11.8% 11.8% Tangible common equity ratio 7.6% 7.7% 7.5% 7.6% 7.5% Tangible common equity as a % of RWA 9.2% 9.3% 9.2% 9.3% 9.3% |
14 U.S. BANCORP | Appendix |
15 U.S. BANCORP | Average Loans 15.5% 15.1% 11.0% 9.5% 9.0% 4.2% 6.5% 4.8% 3.6% 3.1% 2.2% (0.3%) (1.4%) (0.3%) 2.1% 3.6% 2.4% 1.3% 1.1% 4.7% 3.6% 3.5% 0.3% 5.6%* (1.8%) 5.7%* 4.0% 0 70 140 210 280 4Q14 1Q15 2Q15 3Q15 4Q15 Average Loans Key Points vs. 4Q14 Average total loans increased by $10.3 billion, or 4.2% Average total commercial loans increased $7.2 billion, or 9.0% Average retail loans increased 4.0% which includes an increase in average auto loans of 13.0% vs. 3Q15 Average total loans increased by $6.2 billion, or 2.5% (1.7% excluding student loans, which were transferred to held for sale at the end of first quarter of 2015 and returned to held for investment during 3Q15) Average total commercial loans increased $2.1 billion, or 2.5% Year-Over-Year Growth 5.9% 5.1% 2.5% 2.7% 4.2% Covered Commercial CRE Res Mtg Retail Credit Card $256.7 $246.4 $248.0 $246.6 $250.5 4.0%* $ in billions 3.8%* * Loan growth excludes student loans, which were transferred from held for sale at the end of 1Q15 and returned to held for investment during
3Q15 |
16 U.S. BANCORP | Average Deposits (4.9%) (8.2%) (14.1) (18.1%) (19.2%) 19.7% 24.7% 30.2% 21.3% 20.2% 8.3% 7.3% 6.1% 5.9% 6.7% 3.3% 5.2% 7.7% 9.2% 9.0% 0 80 160 240 320 4Q14 1Q15 2Q15 3Q15 4Q15 Average Deposits Key Points vs. 4Q14 Average total deposits increased by $19.0 billion, or 6.9% Average low-cost deposits (NIB, interest checking, money market and savings) increased by $26.8 billion, or 11.4% vs. 3Q15 Average total deposits increased by $4.8 billion, or 1.7% Average low-cost deposits increased by $6.2 billion, or 2.4% Year-Over-Year Growth 7.2% 8.1% 8.9% 6.9% 6.9% Time Money Market Checking and Savings Noninterest-bearing $275.5 $278.5 $285.7 $289.7 $294.5 $ in billions |
17 U.S. BANCORP | Credit Quality Commercial Loans Average Loans and Net Charge-offs Ratios Key Statistics Key Points Average linked quarter loan growth of 2.5% and year-over-year loan growth of 9.0% demonstrates continued momentum
with customers Net charge-offs increased slightly from 4Q14 but declined on a linked quarter basis
Nonperforming loans remained stable on a linked quarter basis Line utilization remained relatively stable 4Q14 3Q15 4Q15 Average Loans $79,625 $84,704 $86,803 30-89 Delinquencies 0.31% 0.24% 0.36% 90+ Delinquencies 0.05% 0.05% 0.05% Nonperforming Loans 0.14% 0.20% 0.20% $ in millions $79,625 $81,508 $83,253 $84,704 $86,803 0.23% 0.21% 0.20% 0.33% 0.29% 0.0% 0.5% 1.0% 1.5% 2.0% 0 25,000 50,000 75,000 100,000 4Q14 1Q15 2Q15 3Q15 4Q15 20% 24% 28% 32% 36% Revolving Line Utilization Trend Average Loans Net Charge-offs Ratio |
18 U.S. BANCORP | A&D Construction $702 Credit Quality Commercial Real Estate Average Loans and Net Charge-offs Ratios Key Statistics Key Points Year-over-year average loans increased 3.1% Historically low nonperforming loan levels improved on a quarter-over-quarter and year-over-year basis
Recovery performance within the CRE portfolio continues to largely offset minimal loan charge-offs
4Q14 3Q15 4Q15 Average Loans $40,966 $42,316 $42,231 30-89 Delinquencies 0.26% 0.15% 0.21% 90+ Delinquencies 0.05% 0.05% 0.03% Nonperforming Loans 0.61% 0.34% 0.30% Performing TDRs* $365 $218 $209 $ in millions Investor $20,624 Owner Occupied $11,206 Multi-family $3,297 Retail $893 Residential Construction $2,327 Office $976 Other $2,206 * TDR = troubled debt restructuring CRE Construction $40,966 $42,446 $42,316 $42,231 -0.10% -0.17% 0.01% -0.10% 0.00% -0.5% 0.0% 0.5% 1.0% 1.5% 0 20,000 40,000 60,000 4Q14 1Q15 2Q15 3Q15 4Q15 Average Loans Net Charge-offs Ratio CRE Mortgage $42,671 |
19 U.S. BANCORP | Credit Quality Residential Mortgage Average Loans and Net Charge-offs Ratios Key Statistics Key Points Originations are of high credit quality (weighted average FICO 755, weighted average LTV 69%)
85% 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
Net charge-offs continue to decline
$ in millions 4Q14 3Q15 4Q15 Average Loans $51,872 $51,831 $52,970 30-89 Delinquencies 0.43% 0.35% 0.32% 90+ Delinquencies 0.40% 0.33% 0.33% Nonperforming Loans 1.67% 1.40% 1.33% $1,866 $1,851 $1,931 $1,903 $1,863 0 1,000 2,000 3,000 4,000 4Q14 1Q15 2Q15 3Q15 4Q15 Residential Mortgage Performing TDRs* *Excludes GNMA loans, whose repayments are insured by the FHA or guaranteed by the Department of VA ($1,913 million in 4Q15)
$51,872 $51,426 $51,114 $51,831 $52,970 0.30% 0.28% 0.26% 0.19% 0.12% 0.0% 0.5% 1.0% 1.5% 2.0% 0 15,000 30,000 45,000 60,000 4Q14 1Q15 2Q15 3Q15 4Q15 Average Loans Net Charge-offs Ratio |
20 U.S. BANCORP | Credit Quality Credit Card Average Loans and Net Charge-offs Ratios Key Statistics Key Points Originations remained strong and of high credit quality with a commitment weighted average FICO of 757
Charge-offs and delinquencies remain low while nonperforming loans continued to decline
$ in millions 4Q14 3Q15 4Q15 Average Loans $17,990 $17,944 $18,838 30-89 Delinquencies 1.24% 1.27% 1.15% 90+ Delinquencies 1.13% 1.10% 1.09% Nonperforming Loans 0.16% 0.06% 0.04% $17,990 $17,823 $17,613 $17,944 $18,838 3.53% 3.71% 3.85% 3.38% 3.50% 0.0% 3.0% 6.0% 9.0% 12.0% 0 6,000 12,000 18,000 24,000 4Q14 1Q15 2Q15 3Q15 4Q15 Average Loans Net Charge-offs Ratio $30 $22 $16 $12 $9 0.16% 0.13% 0.09% 0.06% 0.04% 0.0% 0.5% 1.0% 1.5% 2.0% 0 9 18 27 36 4Q14 1Q15 2Q15 3Q15 4Q15 Credit Card Nonperforming Loans |
21 U.S. BANCORP | Credit Quality Home Equity Average Loans and Net Charge-offs Ratios Key Statistics Key Points High-quality originations (weighted average FICO on commitments was 761, weighted average CLTV 71%)
originated primarily through the retail branch network to existing bank customers on
their primary residences
Net charge-offs ratio continued to decline on a linked quarter and
year-over-year basis $ in millions
4Q14 3Q15 4Q15 Average Loans $15,853 $16,083 $16,241 30-89 Delinquencies 0.54% 0.36% 0.36% 90+ Delinquencies 0.26% 0.25% 0.25% Nonperforming Loans 1.07% 0.91% 0.83% Subprime: 1% Wtd Avg LTV*: 89% NCO: 2.00% Prime: 96% Wtd Avg LTV*: 72% NCO: 0.10% Other: 3% Wtd Avg LTV*: 71% NCO: 0.95% *LTV at origination $15,853 $15,897 $15,958 $16,083 $16,241 0.43% 0.36% 0.28% 0.17% 0.15% 0.0% 1.0% 2.0% 3.0% 4.0% 0 5,000 10,000 15,000 20,000 4Q14 1Q15 2Q15 3Q15 4Q15 Average Loans Net Charge -offs Ratio Home Equity |
22 U.S. BANCORP | Credit Quality Retail Leasing Average Loans and Net Charge-offs Ratios Key Statistics Key Points Continued high-quality originations (weighted average FICO 787) support the portfolios stable credit profile
Delinquencies remained at very low levels Strong used auto values continued to contribute to historically low net charge-offs
$ in millions 4Q14 3Q15 4Q15 Average Loans $5,939 $5,480 $5,265 30-89 Delinquencies 0.18% 0.18% 0.21% 90+ Delinquencies 0.02% 0.02% 0.02% Nonperforming Loans 0.02% 0.04% 0.06% * $5,939 $5,819 $5,696 $5,480 $5,265 0.07% 0.07% 0.07% 0.14% 0.08% 0.0% 0.2% 0.4% 0.6% 0.8% 0 2,000 4,000 6,000 8,000 4Q14 1Q15 2Q15 3Q15 4Q15 Average Loans Net Charge-offs Ratio 100 110 120 130 140 Manheim Used Vehicle Index* Manheim Used Vehicle Value Index source: www.manheimconsulting.com, January 1995 = 100, quarter value = average monthly ending values |
23 U.S. BANCORP | Credit Quality Other Retail Average Loans and Net Charge-offs Ratios Key Statistics Key Points Overall growth continues to be driven by auto loans and installment, which were up 13.0% and 12.5%
year-over-year, respectively
Delinquency rates and net charge-off rates experienced slight seasonal increases; however, they remain low
$ in millions 4Q14 3Q15 4Q15 Average Loans $27,317 $27,286 $29,556 30-89 Delinquencies 0.51% 0.46% 0.52% 90+ Delinquencies 0.12% 0.10% 0.11% Nonperforming Loans 0.06% 0.07% 0.08% Auto Loans $16,551 Installment $7,002 Revolving Credit $3,340 Student Loans $2,663 Other Retail $27,317 $27,604 $25,415 $27,286 $29,556 0.76% 0.60% 0.62% 0.65% 0.71% 0.0% 0.5% 1.0% 1.5% 2.0% 0 10,000 20,000 30,000 40,000 4Q14 1Q15 2Q15 3Q15 4Q15 Average Loans Net Charge-offs Ratio |
24 U.S. BANCORP | Credit Quality Auto Loans Average Loans and Net Charge-offs Ratios Key Statistics Key Points Continued growth in auto loans driven by high-quality originations in the indirect channel (weighted average FICO 771)
Net charge-offs were up seasonally on a linked quarter basis, but remained relatively stable year-over-year
$ in millions 4Q14 3Q15 4Q15 Average Loans $14,644 $16,220 $16,551 30-89 Delinquencies 0.45% 0.40% 0.51% 90+ Delinquencies 0.03% 0.02% 0.04% Nonperforming Loans 0.03% 0.05% 0.07% Direct: 6% Wtd Avg FICO: 748 NCO: 0.15% Indirect: 94% Wtd Avg FICO: 765 NCO: 0.37% Auto loans are included in Other Retail category $14,644 $15,013 $15,609 $16,220 $16,551 0.33% 0.19% 0.15% 0.22% 0.36% 0.0% 0.5% 1.0% 1.5% 2.0% 0 5,000 10,000 15,000 20,000 4Q14 1Q15 2Q15 3Q15 4Q15 Average Loans Net Charge-offs Ratio Indirect and Direct Channel |
25 U.S. BANCORP | Non-GAAP Financial Measures * Preliminary data. Subject to change prior to filings with applicable regulatory agencies.
(1) Includes goodwill related to certain investments in unconsolidated financial
institutions per prescribed regulatory requirements. (2) Includes net
losses on cash flow hedges included in accumulated other comprehensive income (loss) and other adjustments. (3) Includes higher risk-weighting for unfunded loan commitments, investment securities, residential mortgages, mortgage servicing rights and other adjustments. (4) Primarily reflects higher risk-weighting for mortgage servicing rights. December 31, September 30, June 30, March 31, December 31, (Dollars in Millions, Unaudited) 2015 2015 2015 2015 2014 Total equity $46,817 $45,767 $45,231 $44,965 $44,168 Preferred stock (5,501) (4,756) (4,756) (4,756) (4,756) Noncontrolling interests (686) (692) (694) (688) (689) Goodwill (net of deferred tax liability) (1) (8,295) (8,324) (8,350) (8,360) (8,403) Intangible assets, other than mortgage servicing rights (838) (779) (744) (783) (824) Tangible common equity (a) 31,497 31,216 30,687 30,378 29,496 Tangible common equity (as calculated above) 31,497 31,216 30,687 30,378 29,496 Adjustments (2) 67 118 125 158 172 Common equity tier 1 capital estimated for the Basel III fully implemented standardized and advanced approaches (b) 31,564 31,334 30,812 30,536 29,668 Total assets 421,853 415,943 419,075 410,233 402,529 Goodwill (net of deferred tax liability) (1) (8,295) (8,324) (8,350) (8,360) (8,403) Intangible assets, other than mortgage servicing rights (838) (779) (744) (783) (824) Tangible assets (c) 412,720 406,840 409,981 401,090 393,302 Risk-weighted assets, determined in accordance with prescribed transitional standardized approach regulatory requirements (d) 341,360 * 336,227 333,177 327,709 317,398 Adjustments (3) 3,892 * 3,532 3,532 3,153 11,110 Risk-weighted assets estimated for the Basel III fully implemented
standardized approach (e)
345,252 * 339,759 336,709 330,862 328,508 Risk-weighted assets, determined in accordance with prescribed transitional advanced approaches regulatory requirements 261,668 * 248,048 245,038 254,892 248,596 Adjustments (4) 4,099 * 3,723 3,721 3,321 3,270 Risk-weighted assets estimated for the Basel III fully implemented
advanced approaches (f)
265,767 * 251,771 248,759 258,213 251,866 Ratios * Tangible common equity to tangible assets (a)/(c) 7.6
% 7.7
% 7.5
% 7.6
% 7.5
% Tangible common equity to risk-weighted assets (a)/(d) 9.2
9.3
9.2
9.3
9.3
Common equity tier 1 capital to risk-weighted assets estimated for the
Basel III fully implemented standardized approach (b)/(e)
9.1 9.2 9.2 9.2 9.0 Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches (b)/(f) 11.9 12.4 12.4 11.8 11.8 |
U.S.
Bancorp 4Q15 Earnings
Conference Call January 15, 2016 |
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