U.S. Bancorp Receives No Objection to Its 2017 Capital Plan
June 28 2017 - 4:36PM
Business Wire
U.S. Bancorp today announced that the Federal Reserve did not
object to the Company’s 2017 Capital Plan following its conclusion
and assessment of the 2017 Comprehensive Capital Analysis and
Review (“CCAR”).
As a result of the Federal Reserve’s non-objection to U.S.
Bancorp’s plan to increase its dividend rate, the Company will
recommend in July that its board of directors approve an increase
to the quarterly dividend rate beginning with the third quarter
dividend payable in October 2017. The Company expects to
recommend a third quarter dividend of $0.30 per common
share, a 7.1 percent increase over the current dividend rate. At
this quarterly dividend rate, the annual dividend will be
equivalent to $1.20 per common share.
Additionally, the board of directors of U.S.
Bancorp has approved a four-quarter authorization to
repurchase up to $2.6 billion of its outstanding stock,
beginning on July 1, 2017, to replace the current four-quarter
authorization, which expires on June 30, 2017. U.S. Bancorp’s
common stock may be repurchased through June 2018 in the
open market or in privately negotiated transactions. The acquired
common shares will be held as treasury shares and may be reissued
for various corporate purposes.
“We are very pleased to receive the Federal Reserve’s
non-objection to our plan to increase our dividend and authorize a
new share repurchase program,” said Andy Cecere, president and
chief executive officer of U.S. Bancorp. “The results of this
year’s Stress Test highlight the Company’s ability to withstand -
and remain profitable - under extraordinarily adverse economic
conditions. This consistent performance will enable us to once
again achieve our objective of returning 60 to 80 percent of
earnings to shareholders in 2017 through dividends and share
buybacks.”
Minneapolis-based U.S. Bancorp (NYSE: USB), with $450 billion in
assets as of March 31, 2017, is the parent company of U.S. Bank
National Association, the fifth largest commercial bank in the
United States. The Company operates 3,091 banking offices in 25
states and 4,838 ATMs, and provides a comprehensive line of
banking, investment, mortgage, trust and payment services products
to consumers, businesses and institutions. Visit U.S. Bancorp on
the web at www.usbank.com.
Forward-looking Statements:
The following information appears in accordance with the Private
Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements about
U.S. Bancorp. Statements that are not historical or current facts,
including statements about beliefs and expectations, are
forward-looking statements and are based on the information
available to, and assumptions and estimates made by, management as
of the date hereof. The forward-looking statements contained in
this press release include, among other things, anticipated U.S.
Bancorp capital distributions by dividends and share repurchases.
There can be no assurance that U.S. Bancorp will distribute this or
any amount of capital to its shareholders in the form of dividends
or share repurchases in the future.
Forward-looking statements involve inherent risks and
uncertainties, and important factors could cause actual results to
differ materially from those anticipated. A reversal or slowing of
the current economic recovery or another severe contraction could
adversely affect U.S. Bancorp’s revenues and the values of its
assets and liabilities. Global financial markets could experience a
recurrence of significant turbulence, which could reduce the
availability of funding to certain financial institutions and lead
to a tightening of credit, a reduction of business activity, and
increased market volatility. Stress in the commercial real estate
markets, as well as a downturn in the residential real estate
markets could cause credit losses and deterioration in asset
values. In addition, changes to statutes, regulations, or
regulatory policies or practices could affect U.S. Bancorp in
substantial and unpredictable ways. U.S. Bancorp’s results could
also be adversely affected by deterioration in general business and
economic conditions; changes in interest rates; deterioration in
the credit quality of its loan portfolios or in the value of the
collateral securing those loans; deterioration in the value of
securities held in its investment securities portfolio; legal and
regulatory developments; 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 management’s 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. Bancorp’s Annual
Report on Form 10-K for the year ended December 31, 2016, on file
with the Securities and Exchange Commission, including the sections
entitled “Risk Factors” and “Corporate Risk Profile” contained in
Exhibit 13, and all subsequent filings with the Securities and
Exchange Commission under Sections 13(a), 13(c), 14 or 15(d) of the
Securities Exchange Act of 1934. However, factors other than these
also could adversely affect U.S. Bancorp’s results, and the reader
should not consider these factors to be a complete set of all
potential risks or uncertainties. Forward-looking statements speak
only as of the date hereof, and U.S. Bancorp undertakes no
obligation to update them in light of new information or future
events.
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version on businesswire.com: http://www.businesswire.com/news/home/20170628006418/en/
U.S. BancorpJennifer Thompson, 612-303-0778U.S. Bank Investor
Relationsjen.thompson@usbank.comorDana Ripley, 612-303-3167U.S.
Bank Corporate Communicationsdana.ripley@usbank.comTwitter
@usbank_news
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