U.S. Bancorp Receives Results of Comprehensive Capital Analysis & Review; Federal Reserve Did Not Object to Company's Capital...
June 29 2016 - 4:32PM
Business Wire
Company announces proposed quarterly common
stock dividend increase of 9.8% and authorizes new $2.6 billion
share repurchase program
Today the Federal Reserve disclosed the results of the 2016
Comprehensive Capital Analysis and Review (“CCAR”). After a review
of the Company’s submission and final results, the Federal Reserve
did not object to the Company’s plan to increase its capital
distributions over the next four fiscal quarters. The Federal
Reserve’s CCAR disclosure included its estimate of U.S. Bancorp’s
minimum capital ratios for the period from the first quarter of
2016 through the first quarter of 2018 under the supervisory
severely adverse scenario and the supervisory adverse scenario,
including the dividends and buybacks proposed by the Company under
the more likely base case scenario.
As a result of the Federal Reserve’s non-objection to U.S.
Bancorp’s plan to increase its dividend rate, the Company will
recommend in July that its board of directors approve an increase
to the quarterly dividend rate beginning with the third quarter
dividend payable in October 2016. The Company expects to recommend
a third quarter dividend of $0.28 per common share, a 9.8 percent
increase over the current dividend rate. At this quarterly dividend
rate, the annual dividend will be equivalent to $1.12 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, 2016, to
replace the current five-quarter authorization, which expires on
June 30, 2016. U.S. Bancorp’s common stock may be repurchased
through June 2017 in the open market or in privately negotiated
transactions. The acquired common shares will be held as treasury
shares and may be reissued for various corporate purposes.
“We are very pleased to receive the Federal Reserve’s
non-objection to our plan to increase our dividends and authorize a
new share repurchase program,” said Richard K. Davis, chairman and
chief executive officer of U.S. Bancorp. “Our Company’s ability to
withstand extraordinarily adverse economic conditions is once again
proven by the results of this year’s CCAR. Our goal is to return 60
to 80 percent of our earnings to shareholders through dividends and
share buybacks, and our planned capital actions will allow us to
once again achieve that goal in 2016.”
U.S. Bancorp (NYSE: USB), with $429 billion in assets as of
March 31, 2016, is the parent company of U.S. Bank National
Association, the fifth largest commercial bank in the United
States. The Company operates 3,129 banking offices in 25 states and
4,954 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, U.S. Bancorp’s business and financial
performance is likely to be negatively impacted by recently enacted
and future legislation and regulation. U.S. Bancorp’s results could
also be adversely affected by deterioration in general business and
economic conditions; changes in interest rates; deterioration in
the credit quality of its loan portfolios or in the value of the
collateral securing those loans; deterioration in the value of
securities held in its investment securities portfolio; legal and
regulatory developments; 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, 2015, 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160629006398/en/
U.S. Bank Investor RelationsJen Thompson,
612-303-0778jen.thompson@usbank.comorU.S. Bank Corporate
CommunicationsDana Ripley,
612-303-3167dana.ripley@usbank.comTwitter @usbank_news
US Bancorp (NYSE:USB)
Historical Stock Chart
From Mar 2024 to Apr 2024
US Bancorp (NYSE:USB)
Historical Stock Chart
From Apr 2023 to Apr 2024