Current Report Filing (8-k)

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): April 15, 2015

U.S. BANCORP

(Exact name of registrant as specified in its charter)

1-6880

(Commission File Number)


DELAWARE		41-0255900
(State or other jurisdiction		(I.R.S. Employer Identification
of incorporation)		Number)

800 Nicollet Mall

Minneapolis, Minnesota 55402

(Address of principal executive offices and zip code)

(651) 466-3000

(Registrant’s 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)

¨	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 April 15, 2015, U.S. Bancorp (the “Company”) issued a press release reporting quarter ended March 31, 2015 results, and posted on its website its 1Q15 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 1Q15 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated herein by reference. The information included in the 1Q15 Earnings Conference Call Presentation is considered to be “furnished” under the Securities Exchange Act of 1934. The press release and 1Q15 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.

99.1

Press Release issued by U.S. Bancorp on April 15, 2015, deemed “filed” under the Securities Exchange Act of 1934.

99.2

1Q15 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.

U.S. BANCORP

By /s/ Craig E. Gifford

Craig E. Gifford

Executive Vice President and
Controller

DATE: April 15, 2015

Exhibit 99.1

LOGO

News Release

Contacts:

Dana Ripley

Media

(612) 303-3167

Sean O’ Connor

Investors/Analysts

(612) 303-0778

U.S. BANCORP REPORTS FIRST QUARTER 2015 EARNINGS

Year-over-year increase in earnings per diluted common share of 4.1 percent

Return on average assets of 1.44 percent and return on average common equity of 14.1 percent

Returned 70 percent of first quarter earnings to shareholders

MINNEAPOLIS, April 15, 2015 — U.S. Bancorp (NYSE: USB) today reported net income of $1,431 million for the first quarter of 2015, or $0.76 per diluted common share, compared with $1,397 million, or $0.73 per diluted common share, in the first quarter of 2014.

U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “U.S. Bancorp, once again, delivered industry-leading performance measures in the first quarter. We achieved net income of $1.43 billion, or $0.76 per diluted common share, return on average assets (ROA) of 1.44 percent, return on average common equity (ROE) of 14.1 percent, and an efficiency ratio of 54.3 percent. The first quarter results reflect normal seasonal effects, such as the expected reduction of post-holiday spending. We believe the diversification of our business mix has served us well through the prolonged low interest rate environment and slow economic recovery, and we are well positioned for stronger growth when the economy gains momentum and interest rates rise.”

Davis continued, “In the first quarter, we returned 70 percent of our earnings to shareholders through dividends and share buybacks, demonstrating our continued commitment to value creation for our shareholders. We were also pleased to receive the Federal Reserve’s non-objection to our capital distribution plan, which will allow us to increase our annual dividend by 4.1 percent in the second quarter. Because of our diverse business profile, wide-ranging customer base, and balanced revenue generation between margin and fee businesses, we are able to withstand challenging revenue environments. For example, average total loans grew 5.1 percent in the first quarter compared to a year ago, fueled by the strength of our Wholesale Banking franchise. Average total commercial loans grew 15.1 percent demonstrating the versatility of our earnings platform. In addition, average total deposits rose 8.1 percent, which emphasizes the overall strength and stability of both our Retail and Wholesale Banking franchises. As we look toward our financial performance in the quarters ahead, we will continue to stay focused on the best revenue growth opportunities, while prudently controlling expenses.”

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U.S. Bancorp Reports First Quarter 2015 Results

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“One of U.S. Bancorp’s highlights from the first quarter was being named as one of the World’s Most Ethical Companies^® by the Ethisphere Institute. This designation recognizes the deep commitment our 67,000 employees have toward serving our customers, helping them build financially secure futures, and always doing the right thing. A commitment to ethical leadership is one of the cornerstones of the U.S. Bancorp culture and core values. We are proud to be bankers and to have the privilege to be a trusted partner for our shareholders, customers, and communities as we move toward our vision for the future.”

Highlights for the first quarter of 2015 included:

Growth in average total loans of 5.1 percent over the first quarter of 2014

Growth in average total loans of 0.6 percent on a linked quarter basis (0.8 percent excluding the impact of a reclassification of certain municipal loans to securities at the end of the fourth quarter 2014)

Growth in average total commercial loans of 15.1 percent over the first quarter of 2014 and 2.4 percent over the fourth quarter of 2014

Growth in average commercial and commercial real estate revolving commitments of 11.7 percent year-over-year and 1.9 percent over the prior quarter

Strong new lending activity of $48.8 billion during the first quarter, including:

$29.0 billion of new and renewed commercial and commercial real estate commitments

$2.8 billion of lines related to new credit card accounts

$17.0 billion of mortgage and other retail loan originations

Growth in average total deposits of 8.1 percent over the first quarter of 2014 (6.4 percent excluding the Charter One franchise acquisition in late June 2014) and 1.1 percent on a linked quarter basis, the strongest first quarter deposit growth in the past three years

Average low cost deposits, including noninterest-bearing and total savings deposits, grew by 11.4 percent year-over-year and 1.7 percent on a linked quarter basis

Net interest income growth over the first quarter of 2014 driven by average earning assets growth of 10.6 percent and continued strong growth in lower cost core deposit funding. Linked quarter net interest income decreased 1.7 percent principally due to fewer days in the quarter.

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Declines in net charge-offs of 9.4 percent on a linked quarter basis and 18.2 percent on a year-over-year basis. Provision for credit losses was $15 million less than net charge-offs in the current quarter

Allowance for credit losses to period-end loans was 1.77 percent at March 31, 2015

Annualized net charge-offs to average total loans ratio decreased to 0.46 percent

Decreases in nonperforming assets of 15.2 percent on a year-over-year basis and 6.2 percent on a linked quarter basis

Capital generation continued to reinforce capital position and returns. Ratios at March 31, 2015, were:

Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach of 9.2 percent and for the Basel III fully implemented advanced approaches of 11.8 percent

Basel III transitional standardized approach:

Common equity tier 1 capital ratio of 9.6 percent

Tier 1 capital ratio of 11.1 percent

Total risk-based capital ratio of 13.3 percent

Returned 70 percent of first quarter earnings to shareholders through dividends and the buyback of 12 million common shares

Early compliance with fully implemented U.S. Liquidity Coverage Ratio (“LCR”) based on the Company’s interpretation of the final U.S. LCR rule

Supplementary Leverage Ratio (“SLR”) exceeds the applicable minimum requirement

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U.S. Bancorp Reports First Quarter 2015 Results

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Net income attributable to U.S. Bancorp was $1,431 million for the first quarter of 2015, 2.4 percent higher than the $1,397 million for the first quarter of 2014, and 3.8 percent lower than the $1,488 million for the fourth quarter of 2014. Diluted earnings per common share of $0.76 in the first quarter of 2015 were $0.03 higher than the first quarter of 2014 and $0.03 lower than the previous quarter. Return on average assets and return on average common equity were 1.44 percent and 14.1 percent, respectively, for the first quarter of 2015, compared with 1.56 percent and 14.6 percent, respectively, for the first quarter of 2014. The provision for credit losses was lower than net charge-offs by $15 million in the first quarter of 2015, $20 million lower than net charge-offs in the fourth quarter of 2014, and $35 million lower than net charge-offs in the first quarter of 2014.


EARNINGS SUMMARY											Table 1
($ in millions, except per-share data)	1Q 2015		4Q 2014		1Q 2014		Percent Change 1Q15 vs 4Q14			Percent Change 1Q15 vs 1Q14


Net income attributable to U.S. Bancorp		$1,431		$1,488		$1,397		(3.8	)		2.4
Diluted earnings per common share		$.76		$.79		$.73		(3.8	)		4.1

Return on average assets (%)		1.44		1.50		1.56
Return on average common equity (%)		14.1		14.4		14.6
Net interest margin (%)		3.08		3.14		3.35
Efficiency ratio (%) (a)		54.3		54.3		52.9
Tangible efficiency ratio (%) (a)		53.4		53.3		51.9

Dividends declared per common share		$.245		$.245		$.230		—			6.5
Book value per common share (period end)		$22.20		$21.68		$20.48		2.4			8.4

(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.

Net income attributable to U.S. Bancorp for the first quarter of 2015 was $34 million (2.4 percent) higher than the first quarter of 2014, and $57 million (3.8 percent) lower than the fourth quarter of 2014. The increase in net income year-over-year was principally due to increases in net interest income and fee-based revenue, and a decline in the provision for credit losses, partially offset by an increase in noninterest expense. The decrease in net income on a linked quarter basis was due to lower net interest income, primarily the result of two fewer days in the quarter, and seasonally lower fee-based revenue, partially offset by decrease in noninterest expense.

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Total net revenue on a taxable-equivalent basis for the first quarter of 2015 was $4,906 million, which was $92 million (1.9 percent) higher than the first quarter of 2014, reflecting a 2.2 percent increase in noninterest income and a 1.7 percent increase in net interest income. The increase in net interest income year-over-year was the result of an increase in average earning assets and continued growth in lower cost core deposit funding, partially offset by an approximately $50 million decrease related to the previously communicated wind down of the short-term, small-dollar deposit advance product, Checking Account Advance (“CAA”), lower reinvestment rates on investment securities, and lower rates on new loans and a change in loan portfolio mix. Noninterest income increased year-over-year due to higher revenue in most fee businesses and higher equity investment gains in other income. Total net revenue on a taxable-equivalent basis was $263 million (5.1 percent) lower on a linked quarter basis due to a 1.7 percent decrease in net interest income, mainly the result of two fewer days in the quarter, and a 9.1 percent decrease in noninterest income, due to seasonally lower revenue in most fee businesses and the fourth quarter 2014 Nuveen gain.

Total noninterest expense in the first quarter of 2015 was $2,665 million, which was $121 million (4.8 percent) higher than the first quarter of 2014 and $139 million (5.0 percent) lower than the fourth quarter of 2014. The increase in total noninterest expense year-over-year was primarily due to an increase in compensation expense, reflecting the impact of merit increases, acquisitions, and higher staffing for risk and compliance activities and increased benefits expense due to higher pension costs, along with higher other expense primarily related to mortgage servicing-related activities. The decrease in total noninterest expense on a linked quarter basis was due to seasonally lower costs related to investments in tax-advantaged projects and professional services, as well as lower marketing and business development and other expense due to the impact of the fourth quarter 2014 notable items, comprised of charitable contributions and legal accruals, partially offset by higher compensation expense and benefits expense related to higher pension costs and seasonally higher payroll taxes.

The Company’s provision for credit losses for the first quarter of 2015 was $264 million, $24 million (8.3 percent) lower than the prior quarter and $42 million (13.7 percent) lower than the first quarter of 2014. The provision for credit losses was lower than net charge-offs by $15 million in the first quarter of 2015, $20 million lower than net charge-offs in the fourth quarter of 2014, and $35 million lower than net charge-offs in the first quarter of 2014. Net charge-offs in the first quarter of 2015 were $279 million, compared with $308 million in the fourth quarter of 2014, and $341 million in the first quarter of 2014. Given current economic conditions, the Company expects the level of net charge-offs to increase modestly in the second quarter of 2015.

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Nonperforming assets were $1,696 million at March 31, 2015, compared with $1,808 million at December 31, 2014, and $1,999 million at March 31, 2014. The decrease in nonperforming assets compared with a year ago was driven primarily by reductions in the commercial, commercial mortgage and construction and development portfolios, as well as improvement in credit card loans. The Company expects total nonperforming assets to remain relatively stable in the second quarter of 2015. The ratio of the allowance for credit losses to period-end loans was 1.77 percent at March 31, 2015, and at December 31, 2014, compared with 1.89 percent at March 31, 2014.


INCOME STATEMENT HIGHLIGHTS														Table 2
(Taxable-equivalent basis, $ in millions, except per-share data)	1Q 2015			4Q 2014			1Q 2014			Percent Change 1Q15 vs 4Q14			Percent Change 1Q15 vs 1Q14


Net interest income		$2,752			$2,799			$2,706			(1.7	)		1.7
Noninterest income		2,154			2,370			2,108			(9.1	)		2.2

Total net revenue		4,906			5,169			4,814			(5.1	)		1.9
Noninterest expense		2,665			2,804			2,544			(5.0	)		4.8

Income before provision and taxes		2,241			2,365			2,270			(5.2	)		(1.3	)
Provision for credit losses		264			288			306			(8.3	)		(13.7	)

Income before taxes		1,977			2,077			1,964			(4.8	)		.7
Taxable-equivalent adjustment		54			55			56			(1.8	)		(3.6	)
Applicable income taxes		479			521			496			(8.1	)		(3.4	)

Net income		1,444			1,501			1,412			(3.8	)		2.3
Net (income) loss attributable to noncontrolling interests		(13	)		(13	)		(15	)		—			13.3

Net income attributable to U.S. Bancorp		$1,431			$1,488			$1,397			(3.8	)		2.4

Net income applicable to U.S. Bancorp common shareholders		$1,365			$1,420			$1,331			(3.9	)		2.6

Diluted earnings per common share		$.76			$.79			$.73			(3.8	)		4.1

Net Interest Income

Net interest income on a taxable-equivalent basis in the first quarter of 2015 was $2,752 million, an increase of $46 million (1.7 percent) over the first quarter of 2014. The increase was the result of growth in average earning assets and in lower cost core deposit funding, partially offset by lower rates on new loans and securities and the CAA product wind down. Average earning assets were $34.6 billion (10.6 percent) higher than the first quarter of 2014, driven by increases of $18.5 billion (22.5 percent) in average investment securities and $12.1 billion (5.1 percent) in average total loans. Net interest income decreased $47 million (1.7 percent) on a linked quarter basis, primarily the result of two fewer days in the quarter and

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lower net interest margin. The net interest margin in the first quarter of 2015 was 3.08 percent, compared with 3.35 percent in the first quarter of 2014, and 3.14 percent in the fourth quarter of 2014. The decline in the net interest margin on a year-over-year basis primarily reflected growth in the investment portfolio at lower average rates, as well as lower reinvestment rates on investment securities, lower loan fees due to the CAA product wind down, lower rates on new loans and a change in loan portfolio mix, partially offset by lower funding costs. On a linked quarter basis, the reduction in net interest margin was principally due to growth in lower rate investment securities and lower reinvestment rates, lower interest recoveries, lower rates on new loans and a change in loan portfolio mix, along with the impact of higher cash balances at the Federal Reserve as a result of continued deposit growth.

Average investment securities in the first quarter of 2015 were $18.5 billion (22.5 percent) higher year-over-year and $2.5 billion (2.6 percent) higher than the prior quarter. The increases were primarily due to purchases of U.S. government agency-backed securities, net of prepayments and maturities, to support liquidity coverage ratio regulatory requirements.


NET INTEREST INCOME											Table 3
(Taxable-equivalent basis; $ in millions)	1Q 2015		4Q 2014		1Q 2014		Change 1Q15 vs 4Q14			Change 1Q15 vs 1Q14


Components of net interest income
Income on earning assets		$3,116		$3,158		$3,078		$(42	)		$38
Expense on interest-bearing liabilities		364		359		372		5			(8	)

Net interest income		$2,752		$2,799		$2,706		$(47	)		$46


Average yields and rates paid
Earning assets yield		3.49%		3.54%		3.81%		(.05)%			(.32)%
Rate paid on interest-bearing liabilities		.55		.55		.63		—			(.08)

Gross interest margin		2.94%		2.99%		3.18%		(.05)%			(.24)%

Net interest margin		3.08%		3.14%		3.35%		(.06)%			(.27)%


Average balances
Investment securities (a)		$100,712		$98,164		$82,216		$2,548			$18,496
Loans		247,950		246,421		235,859		1,529			12,091
Earning assets		360,841		354,961		326,226		5,880			34,615
Interest-bearing liabilities		267,882		259,938		238,276		7,944			29,606

(a) Excludes unrealized gain (loss)

Average total loans were $12.1 billion (5.1 percent) higher in the first quarter of 2015 than the first quarter of 2014, driven by growth in total commercial loans (15.1 percent), total commercial real estate (6.5

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percent), total other retail loans (3.5 percent), and credit card (2.4 percent). These increases were partially offset by declines in covered loans (37.5 percent) and residential mortgages (0.3 percent). Average total loans, excluding covered loans, were higher by 6.7 percent year-over-year. Average total loans were $1.5 billion (0.6 percent) higher in the first quarter of 2015 than the fourth quarter of 2014, driven by growth in total commercial real estate (4.2 percent), total commercial loans (2.4 percent), and total other retail loans (0.4 percent). These increases were partially offset by declines in covered loans (24.2 percent), residential mortgages (0.9 percent), and credit card (0.9 percent). Average total loans, excluding covered loans, were higher by 1.3 percent on a linked quarter basis. At the end of the first quarter, approximately $3 billion of student loans were transferred from the loan portfolio to loans held for sale.


AVERAGE LOANS											Table 4
($ in millions)	1Q 2015		4Q 2014		1Q 2014		Percent Change 1Q15 vs 4Q14			Percent Change 1Q15 vs 1Q14


Commercial		$76,183		$74,333		$65,645		2.5			16.1
Lease financing		5,325		5,292		5,189		.6			2.6

Total commercial		81,508		79,625		70,834		2.4			15.1

Commercial mortgages		33,119		31,783		32,049		4.2			3.3
Construction and development		9,552		9,183		8,001		4.0			19.4

Total commercial real estate		42,671		40,966		40,050		4.2			6.5

Residential mortgages		51,426		51,872		51,584		(.9	)		(.3	)

Credit card		17,823		17,990		17,407		(.9	)		2.4

Retail leasing		5,819		5,939		5,979		(2.0	)		(2.7	)
Home equity and second mortgages		15,897		15,853		15,366		.3			3.5
Other		27,604		27,317		26,312		1.1			4.9

Total other retail		49,320		49,109		47,657		.4			3.5


Total loans, excluding covered loans		242,748		239,562		227,532		1.3			6.7


Covered loans		5,202		6,859		8,327		(24.2	)		(37.5	)


Total loans		$247,950		$246,421		$235,859		.6			5.1

Average total deposits for the first quarter of 2015 were $21.0 billion (8.1 percent) higher than the first quarter of 2014. Average noninterest-bearing deposits increased $3.7 billion (5.2 percent) year-over-year, mainly in Consumer and Small Business Banking, as well as Wholesale Banking and Commercial Real Estate, partially offset by decreases in corporate trust balances. Average total savings deposits were $20.8

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billion (14.5 percent) higher year-over-year, the result of growth in Consumer and Small Business Banking, including the $3.3 billion impact of the Charter One acquisition, corporate trust, and in Wholesale Banking and Commercial Real Estate balances. Average time deposits less than $100,000 were $1.0 billion (9.0 percent) lower due to maturities, while average time deposits greater than $100,000 decreased $2.5 billion (8.0 percent), primarily due to a decline in Wholesale Banking and Commercial Real Estate, corporate trust and Consumer and Small Business Banking balances. Time deposits greater than $100,000 are primarily managed as an alternative to other funding sources, such as wholesale borrowing, based largely on relative pricing.

Average total deposits increased $3.0 billion (1.1 percent) over the fourth quarter of 2014. Average noninterest-bearing deposits decreased $2.4 billion (3.2 percent) on a linked quarter basis, due to seasonally lower balances in corporate trust and Consumer and Small Business Banking, partially offset by higher balances in Wholesale Banking and Commercial Real Estate. Average total savings deposits increased $6.5 billion (4.1 percent), reflecting increases in Consumer and Small Business Banking, Wholesale Banking and Commercial Real Estate and institutional trust balances. Compared with the fourth quarter of 2014, average time deposits less than $100,000 decreased $356 million (3.3 percent) due to maturities. Average time deposits greater than $100,000 decreased $728 million (2.5 percent) on a linked quarter basis, principally due to declines in Wholesale Banking and Commercial Real Estate, corporate trust and Consumer and Small Business Banking balances.


AVERAGE DEPOSITS											Table 5
($ in millions)	1Q 2015		4Q 2014		1Q 2014		Percent Change 1Q15 vs 4Q14			Percent Change 1Q15 vs 1Q14


Noninterest-bearing deposits		$74,511		$76,958		$70,824		(3.2	)		5.2
Interest-bearing savings deposits
Interest checking		54,658		54,199		51,305		.8			6.5
Money market savings		73,889		68,914		59,244		7.2			24.7
Savings accounts		36,033		34,955		33,200		3.1			8.5

Total of savings deposits		164,580		158,068		143,749		4.1			14.5
Time deposits less than $100,000		10,410		10,766		11,443		(3.3	)		(9.0	)
Time deposits greater than $100,000		28,959		29,687		31,463		(2.5	)		(8.0	)

Total interest-bearing deposits		203,949		198,521		186,655		2.7			9.3

Total deposits		$278,460		$275,479		$257,479		1.1			8.1

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Noninterest Income

First quarter noninterest income was $2,154 million, which was $46 million (2.2 percent) higher than the first quarter of 2014 and $216 million (9.1 percent) lower than the fourth quarter of 2014. The year-over-year increase in noninterest income was due to increases in a majority of fee revenue categories and equity investment gains in other income, partially offset by small reductions in commercial products revenue and corporate payment products revenue. In particular, trust and investment management fees increased $18 million (5.9 percent) year-over-year, reflecting account growth and improved market conditions. Merchant processing service fees reflected a growth rate of 0.8 percent inclusive of the impact of foreign currency rate changes. Excluding the impact of foreign currency rate changes the growth would have been approximately 5.0 percent. The decrease in commercial products revenue of $5 million (2.4 percent) was primarily due to lower wholesale transaction activity, including standby letters of credit and syndication fees, and lower commercial leasing revenue, partially offset by increased bond underwriting fees.

Noninterest income was $216 million (9.1 percent) lower in the first quarter of 2015 than the fourth quarter of 2014, principally due to seasonally lower fee revenue and the fourth quarter 2014 Nuveen gain. Credit and debit card revenue decreased $31 million (11.4 percent) primarily due to seasonally lower sales volumes and fewer days. Merchant processing services was $25 million (6.5 percent) lower on a linked quarter basis due to seasonally lower product fees and fewer days. Deposit service charges decreased $19 million (10.6 percent) due to fewer days and seasonally lower volumes. Commercial products revenue decreased $19 million (8.7 percent) primarily due to lower wholesale transaction activity, including standby letters of credit and syndication fees, partially offset by increased bond underwriting fees. Partially offsetting these decreases was an increase in mortgage banking revenue, which increased $5 million (2.1 percent), due to higher origination and sales volume, partially offset by an unfavorable change in the valuation of mortgage servicing rights (“MSRs”), net of hedging activities.

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NONINTEREST INCOME											Table 6
($ in millions)	1Q 2015		4Q 2014		1Q 2014		Percent Change 1Q15 vs 4Q14			Percent Change 1Q15 vs 1Q14


Credit and debit card revenue		$241		$272		$239		(11.4	)		.8
Corporate payment products revenue		170		174		173		(2.3	)		(1.7	)
Merchant processing services		359		384		356		(6.5	)		.8
ATM processing services		78		80		78		(2.5	)		—
Trust and investment management fees		322		322		304		—			5.9
Deposit service charges		161		180		157		(10.6	)		2.5
Treasury management fees		137		136		133		.7			3.0
Commercial products revenue		200		219		205		(8.7	)		(2.4	)
Mortgage banking revenue		240		235		236		2.1			1.7
Investment products fees		47		49		46		(4.1	)		2.2
Securities gains (losses), net		—		1		5		nm			nm
Other		199		318		176		(37.4	)		13.1


Total noninterest income		$2,154		$2,370		$2,108		(9.1	)		2.2

Noninterest Expense

Noninterest expense in the first quarter of 2015 totaled $2,665 million, an increase of $121 million (4.8 percent) over the first quarter of 2014, and a $139 million (5.0 percent) decrease from the fourth quarter of 2014. The increase in total noninterest expense year-over-year was primarily the result of higher compensation, employee benefits and other expenses. The increase in compensation expense of $64 million (5.7 percent) reflected the impact of merit increases, acquisitions, and higher staffing for risk and compliance activities, and commissions related to mortgage production. The increase in employee benefits expense of $28 million (9.7 percent) was driven by higher pension costs. The increase in other expense of $48 million (12.4 percent) was primarily due to mortgage servicing-related expenses.

Noninterest expense decreased $139 million (5.0 percent) on a linked quarter basis, primarily driven by a decrease in other noninterest expense of $107 million (19.7 percent) due to seasonally lower costs related to investments in tax-advantaged projects and the impact of the fourth quarter 2014 legal accruals, partially offset by increased mortgage servicing-related expenses. Marketing and business development expense decreased $59 million (45.7 percent) due to the fourth quarter 2014 charitable contributions and lower advertising costs. Professional services expense was $55 million (41.7 percent) lower due to seasonally lower costs across a majority of the lines of business. Partially offsetting these decreases were higher employee benefits expense, which increased $72 million (29.4 percent) due to increased pension costs and

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seasonally higher payroll taxes, and compensation expense, which increased $28 million (2.4 percent) reflecting the seasonal impact of stock based compensation grants and commissions related to mortgage production.


NONINTEREST EXPENSE											Table 7
($ in millions)	1Q 2015		4Q 2014		1Q 2014		Percent Change 1Q15 vs 4Q14			Percent Change 1Q15 vs 1Q14


Compensation	$	1,179	$	1,151	$	1,115		2.4			5.7
Employee benefits		317		245		289		29.4			9.7
Net occupancy and equipment		247		248		249		(.4	)		(.8	)
Professional services		77		132		83		(41.7	)		(7.2	)
Marketing and business development		70		129		79		(45.7	)		(11.4	)
Technology and communications		214		219		211		(2.3	)		1.4
Postage, printing and supplies		82		86		81		(4.7	)		1.2
Other intangibles		43		51		49		(15.7	)		(12.2	)
Other		436		543		388		(19.7	)		12.4


Total noninterest expense	$	2,665	$	2,804	$	2,544		(5.0	)		4.8

Provision for Income Taxes

The provision for income taxes for the first quarter of 2015 resulted in a tax rate on a taxable-equivalent basis of 27.0 percent (effective tax rate of 24.9 percent), compared with 28.1 percent (effective tax rate of 26.0 percent) in the first quarter of 2014, and 27.7 percent (effective tax rate of 25.8 percent) in the fourth quarter of 2014. The decrease was the result of resolution of certain tax matters.

Credit Quality

The allowance for credit losses was $4,351 million at March 31, 2015, compared with $4,375 million at December 31, 2014, and $4,497 million at March 31, 2014. Nonperforming assets decreased on a linked quarter and year-over-year basis as economic conditions continued to slowly improve. Total net charge-offs in the first quarter of 2015 were $279 million, compared with $308 million in the fourth quarter of 2014, and $341 million in the first quarter of 2014. The $29 million (9.4 percent) decrease in net charge-offs on a linked quarter basis was due to improvement in the commercial, commercial real estate and other retail portfolios, while the $62 million (18.2 percent) decrease in net charge-offs on a year-over-year basis reflected improvements in residential mortgages, home equity and second mortgages, as well as in

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construction and development. The Company recorded $264 million of provision for credit losses in the current quarter, which was $15 million less than net charge-offs.

The ratio of the allowance for credit losses to period-end loans was 1.77 percent at March 31, 2015, and at December 31, 2014, compared with 1.89 percent at March 31, 2014. The ratio of the allowance for credit losses to nonperforming loans was 322 percent at March 31, 2015, compared with 298 percent at December 31, 2014, and 278 percent at March 31, 2014.

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ALLOWANCE FOR CREDIT LOSSES																									Table 8
($ in millions)	1Q						4Q						3Q					2Q						1Q
	2015			% (b)			2014			% (b)			2014			% (b)		2014			% (b)			2014			% (b)

Balance, beginning of period		$4,375						$4,414						$4,449					$4,497						$4,537
Net charge-offs
Commercial		40			.21			48			.26			52			.29		52			.30			34			.21
Lease financing		3			.23			(2	)		(.15	)		6			.46		3			.24			2			.16

Total commercial		43			.21			46			.23			58			.30		55			.29			36			.21
Commercial mortgages		(1	)		(.01	)		(3	)		(.04	)		1			.01		(6	)		(.08	)		(1	)		(.01	)
Construction and development		(17	)		(.72	)		(7	)		(.30	)		3			.13		2			.09			(2	)		(.10	)

Total commercial real estate		(18	)		(.17	)		(10	)		(.10	)		4			.04		(4	)		(.04	)		(3	)		(.03	)
Residential mortgages		35			.28			39			.30			42			.32		57			.44			57			.45
Credit card		163			3.71			160			3.53			158			3.53		170			3.92			170			3.96
Retail leasing		1			.07			1			.07			—			—		1			.07			—			—
Home equity and second mortgages		14			.36			17			.43			24			.61		23			.60			31			.82
Other		41			.60			52			.76			49			.72		45			.68			45			.69

Total other retail		56			.46			70			.57			73			.59		69			.58			76			.65

Total net charge-offs, excluding covered loans		279			.47			305			.51			335			.56		347			.60			336			.60
Covered loans		—			—			3			.17			1			.05		2			.10			5			.24

Total net charge-offs		279			.46			308			.50			336			.55		349			.58			341			.59
Provision for credit losses		264						288						311					324						306
Other changes (a)		(9	)					(19	)					(10	)				(23	)					(5	)

Balance, end of period		$4,351						$4,375						$4,414					$4,449						$4,497

Components
Allowance for loan losses		$4,023						$4,039						$4,065					$4,132						$4,189
Liability for unfunded credit commitments		328						336						349					317						308

Total allowance for credit losses		$4,351						$4,375						$4,414					$4,449						$4,497

Gross charge-offs		$383						$415						$410					$432						$422
Gross recoveries		$104						$107						$74					$83						$81
Allowance for credit losses as a percentage of Period-end loans, excluding covered loans		1.79						1.78						1.81					1.83						1.90
Nonperforming loans, excluding covered loans		321						297						291					294						293
Nonperforming assets, excluding covered assets		261						245						245					246						243
Period-end loans		1.77						1.77						1.80					1.82						1.89
Nonperforming loans		322						298						282					279						278
Nonperforming assets		257						242						230					229						225

(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

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Nonperforming assets at March 31, 2015, totaled $1,696 million, compared with $1,808 million at December 31, 2014, and $1,999 million at March 31, 2014. The ratio of nonperforming assets to loans and other real estate was 0.69 percent at March 31, 2015, compared with 0.73 percent at December 31, 2014, and 0.84 percent at March 31, 2014. Total commercial nonperforming loans were $25 million (22.3 percent) lower on a linked quarter basis and $101 million (53.7 percent) lower year-over-year. Total commercial real estate nonperforming loans decreased by $42 million (16.2 percent) on a linked quarter basis and were $52 million (19.3 percent) lower year-over-year. Residential mortgage nonperforming loans decreased $39 million (4.5 percent) on a linked quarter basis but increased $48 million (6.2 percent) year-over-year. Credit card nonperforming loans were $8 million (26.7 percent) lower on a linked quarter basis and $43 million (66.2 percent) lower year-over-year. Other retail nonperforming loans were relatively flat on a linked quarter basis and year-over-year.

Accruing loans 90 days or more past due were $880 million ($521 million excluding covered loans) at March 31, 2015, compared with $945 million ($550 million excluding covered loans) at December 31, 2014, and $1,167 million ($695 million excluding covered loans) at March 31, 2014.


DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES										Table 9
(Percent)
	Mar 31 2015		Dec 31 2014		Sep 30 2014		Jun 30 2014		Mar 31 2014


Delinquent loan ratios - 90 days or more past due excluding nonperforming loans
Commercial		.05		.05		.05		.06		.06
Commercial real estate		.07		.05		.03		.06		.06
Residential mortgages		.33		.40		.41		.49		.64
Credit card		1.19		1.13		1.10		1.06		1.21
Other retail		.15		.15		.16		.15		.18
Total loans, excluding covered loans		.22		.23		.22		.25		.30
Covered loans		7.01		7.48		6.10		6.14		5.83
Total loans		.36		.38		.39		.43		.49

Delinquent loan ratios - 90 days or more past due including nonperforming loans
Commercial		.16		.19		.27		.30		.32
Commercial real estate		.58		.65		.62		.62		.73
Residential mortgages		1.95		2.07		2.02		2.06		2.14
Credit card		1.32		1.30		1.32		1.35		1.59
Other retail		.55		.53		.53		.54		.58
Total loans, excluding covered loans		.77		.83		.84		.87		.95
Covered loans		7.25		7.74		7.34		7.73		7.46
Total loans		.91		.97		1.03		1.08		1.17

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ASSET QUALITY										Table 10
($ in millions)
	Mar 31 2015		Dec 31 2014		Sep 30 2014		Jun 30 2014		Mar 31 2014

Nonperforming loans
Commercial		$74		$99		$161		$174		$174
Lease financing		13		13		12		16		14

Total commercial		87		112		173		190		188

Commercial mortgages		142		175		147		121		156
Construction and development		75		84		94		105		113

Total commercial real estate		217		259		241		226		269

Residential mortgages		825		864		841		818		777
Credit card		22		30		40		52		65
Other retail		187		187		184		191		188

Total nonperforming loans, excluding covered loans		1,338		1,452		1,479		1,477		1,487

Covered loans		12		14		88		119		132

Total nonperforming loans		1,350		1,466		1,567		1,596		1,619

Other real estate (a)		293		288		275		279		296
Covered other real estate (a)		37		37		72		58		73
Other nonperforming assets		16		17		9		10		11

Total nonperforming assets (b)		$1,696		$1,808		$1,923		$1,943		$1,999


Total nonperforming assets, excluding covered assets		$1,647		$1,757		$1,763		$1,766		$1,794


Accruing loans 90 days or more past due, excluding covered loans		$521		$550		$532		$581		$695


Accruing loans 90 days or more past due		$880		$945		$962		$1,038		$1,167


Performing restructured loans, excluding GNMA and covered loans		$2,684		$2,832		$2,818		$2,911		$3,006


Performing restructured GNMA and covered loans		$2,186		$2,273		$2,685		$3,072		$3,003


Nonperforming assets to loans plus ORE, excluding covered assets (%)		.68		.72		.74		.75		.78

Nonperforming assets to loans plus ORE (%)		.69		.73		.78		.80		.84

(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.

Capital Management

Total U.S. Bancorp shareholders’ equity was $44.3 billion at March 31, 2015, compared with $43.5 billion at December 31, 2014, and $42.1 billion at March 31, 2014. During the first quarter, the Company returned 70 percent of first quarter earnings to shareholders, including $438 million in common stock dividends and $518 million of repurchased common stock.

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COMMON SHARES														Table 11
(Millions)	1Q 2015			4Q 2014			3Q 2014			2Q 2014			1Q 2014


Beginning shares outstanding		1,786			1,795			1,809			1,821			1,825
Shares issued for stock incentive plans, acquisitions and other corporate purposes		6			2			2			3			8
Shares repurchased		(12	)		(11	)		(16	)		(15	)		(12	)

Ending shares outstanding		1,780			1,786			1,795			1,809			1,821

Under the Basel III transitional standardized approach, the common equity tier 1 capital ratio was 9.6 percent at March 31, 2015, compared with 9.7 percent at December 31, 2014, and at March 31, 2014. The tier 1 capital ratio was 11.1 percent at March 31, 2015, compared with 11.3 percent at December 31, 2014, and 11.4 percent at March 31, 2014. Under the Basel III transitional advanced approaches, the common equity tier 1 capital to risk-weighted assets ratio was 12.3 percent at March 31, 2015, compared with 12.4 percent at December 31, 2014. All regulatory ratios continue to be in excess of “well-capitalized” requirements. In addition, the common equity tier 1 capital to risk-weighted assets ratio estimated for the Basel III standardized approach as if fully implemented was 9.2 percent at March 31, 2015, compared with 9.0 percent at December 30, 2014, and at March 31, 2014, and the common equity tier 1 capital to risk-weighted assets ratio estimated for the Basel III advanced approaches as if fully implemented was 11.8 percent at March 31, 2015, and at December 31, 2014. The tangible common equity to tangible assets ratio was 7.6 percent at March 31, 2015, compared with 7.5 percent at December 31, 2014, and 7.8 percent at March 31, 2014.

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CAPITAL POSITION													Table 12
($ in millions)	Mar 31 2015			Dec 31 2014			Sep 30 2014			Jun 30 2014			Mar 31 2014


Total U.S. Bancorp shareholders’ equity		$44,277			$43,479			$43,141			$42,700			$42,054

Standardized Approach

Basel III transitional standardized approach
Common equity tier 1 capital		$31,308			$30,856			$30,213			$29,760			$29,463
Tier 1 capital		36,382			36,020			35,377			34,924			34,627
Total risk-based capital		43,558			43,208			42,509			41,034			40,741

Common equity tier 1 capital ratio		9.6	%		9.7	%		9.7	%		9.6	%		9.7	%
Tier 1 capital ratio		11.1			11.3			11.3			11.3			11.4
Total risk-based capital ratio		13.3			13.6			13.6			13.2			13.5
Leverage ratio		9.3			9.3			9.4			9.6			9.7

Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach		9.2			9.0			9.0			8.9			9.0

Advanced Approaches

Common equity tier 1 capital to risk-weighted assets for the Basel III transitional advanced approaches		12.3			12.4			12.4			12.3

Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches		11.8			11.8			11.8			11.7

Tangible common equity to tangible assets		7.6			7.5			7.6			7.5			7.8
Tangible common equity to risk-weighted assets		9.3			9.3			9.3			9.2			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 next four years to full implementation by January 1, 2018. Basel III includes two comprehensive methodologies for calculating risk-weighted assets: a general standardized approach and more risk-sensitive advanced approaches. In the second quarter of 2014, the Company exited its parallel run qualification period, resulting in its capital adequacy now being evaluated against the Basel III methodology that is most restrictive.

Lines of Business

The Company’s 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 line’s 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

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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 Company’s 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.

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 $219 million of the Company’s net income in the first quarter of 2015, compared with $275 million in the first quarter of 2014 and $281 million in the fourth quarter of 2014. Wholesale Banking and Commercial Real Estate’s net income decreased $56 million (20.4 percent) from the same quarter of 2014 due to a higher provision for credit losses and an increase in total noninterest expense, partially offset by an increase in total net revenue. Total net revenue increased by $6 million (0.8 percent), due to a 6.0 percent increase in net interest income, partially offset by a 9.4 percent decrease in total noninterest income. Net interest income increased by $29 million (6.0 percent) year-over-year, primarily due to an increase in average total loans and deposits, partially offset by lower rates and fees on loans. Total noninterest income decreased by $23 million (9.4 percent), driven by lower wholesale transaction activity and loan-related fees, along with lower commercial leasing revenue, partially offset by increased bond underwriting fees. Total noninterest expense was $18 million (5.8 percent) higher compared with a year ago, due to an increase in variable compensation expense and the FDIC insurance assessment allocation, based on the level of commitments. The provision for credit losses was $77 million higher year-over-year due to an unfavorable change in the reserve allocation reflecting the recent decline in energy prices and higher net charge-offs.

Wholesale Banking and Commercial Real Estate’s contribution to net income in the first quarter of 2015 was $62 million (22.1 percent) lower than the fourth quarter of 2014, due to a decrease in total net revenue, an increase in total noninterest expense, and an increase in the provision for credit losses. Total net revenue decreased by $38 million (4.9 percent) compared with the prior quarter. Net interest income decreased by $21 million (3.9 percent) on a linked quarter basis, primarily due to lower rates and fees on loans and fewer days in the quarter, partially offset by higher average loans. Total noninterest income decreased by $17 million (7.1 percent) due to lower wholesale transaction activity and loan-related fees, partially offset by increased bond underwriting fees. Total noninterest expense increased by $18 million (5.8 percent) due to

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higher compensation and employee benefits expense related to higher pension costs and seasonally higher payroll taxes, and higher net shared services expense. The provision for credit losses increased by $42 million due to an unfavorable change in the reserve allocation reflecting the recent decline in energy prices and an increase in net charge-offs.

Consumer and Small Business Banking delivers products and services through banking offices, telephone servicing and sales, on-line services, direct mail, ATM processing and mobile devices, such as mobile phones and tablet computers. It encompasses community banking, metropolitan banking, in-store banking, small business banking, consumer lending, workplace banking, student banking and 24-hour banking (collectively, the retail banking division), as well as mortgage banking. Consumer and Small Business Banking contributed $302 million of the Company’s net income in the first quarter of 2015, a $14 million (4.9 percent) increase from the first quarter of 2014 and an $8 million (2.6 percent) decrease from the prior quarter. Within Consumer and Small Business Banking, the retail banking division reported an 18.5 percent increase in its contribution from the same quarter of last year, principally due to lower provision for credit losses, partially offset by an increase in total noninterest expense and lower total net revenue. Retail banking’s total net revenue was 4.3 percent lower than the first quarter of 2014. Net interest income decreased 5.8 percent, primarily as a result of lower fees due to the wind down of the CAA product and lower rates on loans, partially offset by higher average loan and deposit balances. Total noninterest income for the retail banking division decreased 0.5 percent from a year ago, principally due to lower retail leasing revenue, partially offset by an increase in deposit service charges. Total noninterest expense for the retail banking division in the first quarter of 2015 increased 3.7 percent over the same quarter of the prior year, primarily due to higher compensation and employee benefits expense, partially offset by lower marketing expenses and lower FDIC insurance assessments. The provision for credit losses for the retail banking division decreased $140 million on a year-over-year basis due to a favorable change in the reserve allocation and lower net charge-offs. The contribution of the mortgage banking division was 14.2 percent lower than the first quarter of 2014, reflecting an increase in total noninterest expense and an increase the provision for credit losses, partially offset by an increase in total net revenue. The division’s 5.6 percent increase in total net revenue was due to a 9.7 percent increase in net interest income, primarily the result of higher average loans held for sale, as well as a 3.0 percent increase in total noninterest income, principally due to higher origination and sales volume, partially offset by an unfavorable change in the valuation of MSRs, net of hedging activities. Total noninterest expense was 14.0 percent higher compared with the prior year due to higher mortgage servicing-related expenses and increased compensation expense, partially offset by lower

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professional services expense. The $19 million increase in the provision for credit losses for the mortgage banking division was due to an unfavorable change in the reserve allocation, partially offset by lower net charge-offs.

Consumer and Small Business Banking’s contribution in the first quarter of 2015 was $8 million (2.6 percent) lower than the fourth quarter of 2014, primarily 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. Within Consumer and Small Business Banking, the retail banking division’s contribution increased 5.3 percent, mainly due to a decrease in the provision for credit losses and a decrease in total noninterest expense, partially offset by a decrease in total net revenue. Total net revenue for the retail banking division decreased 2.8 percent compared with the previous quarter. Net interest income was 2.3 percent lower compared with the prior quarter primarily due to fewer days in the quarter, partially offset by higher average deposit balances. Total noninterest income was 4.0 percent lower on a linked quarter basis, driven by seasonally lower deposit service charges. The provision for credit losses decreased 88.3 percent on a linked quarter basis due to a favorable change in the reserve allocation and lower net charge-offs. The contribution of the mortgage banking division decreased 14.9 percent from the fourth quarter of 2014 primarily due to higher total noninterest expense and provision for credit losses. Total net revenue increased 0.5 percent due to a 1.7 percent increase in total noninterest income, the result of higher origination and sales revenue, partially offset by an unfavorable change in the valuation of MSRs, net of hedging activities. The increase in total net revenue was partially offset by a 1.3 percent decrease in net interest income primarily due to two fewer days in the quarter and lower loan rates and average loan balances. Total noninterest expense increased 13.4 percent, primarily reflecting higher mortgage servicing-related expenses, along with higher compensation and employee benefits expense related to higher pension costs and seasonally higher payroll taxes, partially offset by lower professional services expense. The provision for credit losses for the mortgage banking division increased $4 million on a linked quarter basis primarily due to an unfavorable change in the reserve allocation.

Wealth Management and Securities Services provides private banking, financial advisory services, investment management, retail brokerage services, insurance, trust, custody and fund servicing through five businesses: Wealth Management, Corporate Trust Services, U.S. Bancorp Asset Management, Institutional Trust & Custody and Fund Services. Wealth Management and Securities Services contributed $59 million of the Company’s net income in the first quarter of 2015, compared with $52 million in the first quarter of 2014 and $65 million in the fourth quarter of 2014. The business line’s contribution was $7 million (13.5 percent)

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higher than the same quarter of 2014, principally due to an increase in total net revenue, partially offset by an increase in total noninterest expense. Total net revenue increased by $29 million (6.9 percent) year-over-year, driven by a $17 million (5.0 percent) increase in total noninterest income, reflecting the impact of account growth and improved market conditions, and an increase in net interest income of $12 million (15.0 percent), principally due to higher average loan and deposit balances and an increase in the margin benefit from corporate trust deposits. Total noninterest expense increased by $15 million (4.4 percent) primarily as a result of higher net shared services and compensation and employee benefits expense due to merit and increased pension costs. The provision for credit losses increased $2 million (50.0 percent) compared with the prior year quarter due to higher net charge-offs.

The business line’s contribution in the first quarter of 2015 was $6 million (9.2 percent) lower than the prior quarter. Total net revenue decreased 1.1 percent on a linked quarter basis, primarily reflecting a decrease in net interest income of $4 million (4.2 percent), principally due to lower average deposit balances and fewer days in the quarter, partially offset by the impact of higher rates on the margin benefit from corporate trust deposits. Total noninterest expense was $7 million (2.0 percent) higher than the prior quarter primarily due to higher compensation and employee benefits expense, driven by increased pension costs and the seasonal impact of stock based compensation grants and payroll taxes, partially offset by lower professional services expense. The provision for credit losses decreased $3 million on a linked quarter basis due to a favorable change in the reserve allocation and lower net charge-offs.

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 $262 million of the Company’s net income in the first quarter of 2015, compared with $238 million in the first quarter of 2014 and $300 million in the fourth quarter of 2014. The $24 million (10.1 percent) increase in the business line’s contribution over the prior year was due to an increase in total net revenue, partially offset by an increase in total noninterest expense. Total net revenue increased by $53 million (4.5 percent) year-over-year. Net interest income increased by $51 million (12.3 percent), primarily due to higher average loan balances and fees and improved loan rates. Total noninterest income was $2 million (0.3 percent) higher year-over-year, due to higher merchant processing services revenue driven by increased product fees and transaction volumes, partially offset by the impact of foreign currency rate changes. Total noninterest expense increased by $20 million (3.3 percent) over the first quarter of 2014, primarily due to higher net shared services expense and compensation and employee benefits expense related to higher pension costs, partially offset by reductions in professional services, marketing, and

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U.S. Bancorp Reports First Quarter 2015 Results

April 15, 2015

Page 23

other intangibles expense. The provision for credit losses decreased by $4 million (2.0 percent) due to lower net charge-offs, partially offset by an unfavorable change in the reserve allocation.

Payment Services’ contribution in the first quarter of 2015 decreased $38 million (12.7 percent) from the fourth quarter of 2014. Total net revenue decreased $70 million (5.3 percent) on a linked quarter basis driven by lower total noninterest income. Net interest income decreased by $4 million (0.9 percent) from the fourth quarter due to fewer days in the quarter and lower average loan balances, partially offset by higher loan rates. Total noninterest income decreased by $66 million (7.8 percent), primarily due to a decrease in credit and debit card revenue due to seasonally lower transaction volumes and fewer processing days, and lower merchant processing revenue due to seasonally lower transaction volumes, fewer processing days and the impact of foreign currency rate changes. Total noninterest expense was $15 million (2.4 percent) lower on a linked quarter basis primarily due to lower professional services and intangibles expenses. The provision for credit losses was $4 million (2.1 percent) higher on a linked quarter basis due to higher net charge-offs, partially offset by a favorable change in the reserve allocation.

Treasury and Corporate Support includes the Company’s 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 $589 million in the first quarter of 2015, compared with $544 million in the first quarter of 2014 and $532 million in the fourth quarter of 2014. The increase in net income of $45 million (8.3 percent) over the prior year was driven by an increase in total net revenue, primarily due to an increase in total noninterest income, partially offset by a decrease in net interest income and an increase in total noninterest expense. Net interest income decreased by $5 million (0.8 percent) from the first quarter of 2014, principally due to growth in the investment portfolio at lower average rates, along with lower income from the run-off of acquired assets. Total noninterest income increased by $45 million (34.1 percent) over the first quarter of last year, mainly due to gains on the sales of equity investments and higher commercial products revenue. Total noninterest expense increased by $6 million (3.6 percent), principally due to an increase in compensation and employee benefits expense resulting from higher pension costs, and increased mortgage servicing-related expenses, partially offset by lower costs for investments in tax-advantaged projects. The provision for credit losses was $4 million (66.7 percent) higher year-over-year due to an unfavorable change in the reserve allocation, partially offset by a decrease in net charge-offs.

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U.S. Bancorp Reports First Quarter 2015 Results

April 15, 2015

Page 24

Net income in the first quarter of 2015 was $57 million (10.7 percent) higher on a linked quarter basis, as decreases in total noninterest expense and the provision for credit losses were partially offset by a decrease in total net revenue. Total net revenue was $115 million (12.4 percent) lower than the prior quarter primarily due to the fourth quarter 2014 Nuveen gain. The $175 million (50.1 percent) decrease in total noninterest expense was principally due to fourth quarter 2014 notable items, which included charitable contributions and legal accruals, and lower costs related to investments in tax-advantaged projects, partially offset by increased pension costs and seasonally higher payroll taxes and compensation expense reflecting the seasonal impact of stock based compensation grants. The provision for credit losses was $18 million lower compared with the fourth quarter of 2014 due to a decrease in net charge-offs, partially offset by an unfavorable change in the reserve allocation.


LINE OF BUSINESS FINANCIAL PERFORMANCE (a)										Table 13
($ in millions)
	Net Income Attributable to U.S. Bancorp				Percent Change					1Q 2015

Business Line		1Q 2015	4Q 2014	1Q 2014		1Q15 vs 4Q14		1Q15 vs 1Q14			Earnings Composition
Wholesale Banking and Commercial Real Estate		$219	$281	$275		(22.1	)	(20.4	)		15	%
Consumer and Small Business Banking		302	310	288		(2.6	)	4.9			21
Wealth Management and Securities Services		59	65	52		(9.2	)	13.5			4
Payment Services		262	300	238		(12.7	)	10.1			19
Treasury and Corporate Support		589	532	544		10.7		8.3			41

Consolidated Company		$1,431	$1,488	$1,397		(3.8	)	2.4			100	%


(a) preliminary data

Additional schedules containing more detailed information about the Company’s business line results are available on the web at usbank.com or by calling Investor Relations at 612-303-4328.

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U.S. Bancorp Reports First Quarter 2015 Results

April 15, 2015

Page 25

On Wednesday, April 15, 2015, at 8:30 a.m. CDT, Richard K. Davis, chairman, president and chief executive officer, and Kathy Rogers, vice chairman and chief financial officer, will host a conference call to review the financial results. The conference call will be available online and by telephone. The presentation used during the call will be available at www.usbank.com. To access the webcast and presentation, go to www.usbank.com and click on “About U.S. Bank.” The “Webcasts & Presentations” link can be found under the Investor/Shareholder information heading, which is at the left side 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 87116125. For those unable to participate during the live call, a recording of the call will be available beginning approximately two hours after the conference call ends on Wednesday, April 15 and will be accessible through Wednesday, April 22 at 11:00 p.m. CDT. 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 87116125.

Minneapolis-based U.S. Bancorp (“USB”), with $410 billion in assets as of March 31, 2015, is the parent company of U.S. Bank National Association, the 5th largest commercial bank in the United States. The Company operates 3,172 banking offices in 25 states and 5,016 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at usbank.com.

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U.S. Bancorp Reports First Quarter 2015 Results

April 15, 2015

Page 26

Forward-Looking Statements

The following information appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward-looking statements cover, among other things, anticipated future revenue and expenses and the future plans and prospects of U.S. Bancorp. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. A reversal or slowing of the current economic recovery or another severe contraction could adversely affect U.S. 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, residual value risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputational risk.

For discussion of these and other risks that may cause actual results to differ from expectations, refer to U.S. Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2014, 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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U.S. Bancorp Reports First Quarter 2015 Results

April 15, 2015

Page 27

Non-GAAP Financial Measures

In addition to capital ratios defined by banking regulators, the Company considers various other measures when evaluating capital utilization and adequacy, including:

—

Tangible common equity to tangible assets,

—

Tangible common equity to risk-weighted assets,

—

Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach, 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 Company’s 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 Company’s calculation of these non-GAAP financial measures.

###

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U.S. Bancorp

Consolidated Statement of Income


(Dollars and Shares in Millions, Except Per Share Data)	Three Months Ended March 31,

(Unaudited)	2015			2014

Interest Income
Loans		$2,493			$2,522
Loans held for sale		41			27
Investment securities		495			441
Other interest income		32			32

Total interest income		3,061			3,022
Interest Expense
Deposits		118			119
Short-term borrowings		61			69
Long-term debt		184			184

Total interest expense		363			372

Net interest income		2,698			2,650
Provision for credit losses		264			306

Net interest income after provision for credit losses		2,434			2,344
Noninterest Income
Credit and debit card revenue		241			239
Corporate payment products revenue		170			173
Merchant processing services		359			356
ATM processing services		78			78
Trust and investment management fees		322			304
Deposit service charges		161			157
Treasury management fees		137			133
Commercial products revenue		200			205
Mortgage banking revenue		240			236
Investment products fees		47			46
Securities gains (losses), net		—			5
Other		199			176

Total noninterest income		2,154			2,108
Noninterest Expense
Compensation		1,179			1,115
Employee benefits		317			289
Net occupancy and equipment		247			249
Professional services		77			83
Marketing and business development		70			79
Technology and communications		214			211
Postage, printing and supplies		82			81
Other intangibles		43			49
Other		436			388

Total noninterest expense		2,665			2,544

Income before income taxes		1,923			1,908
Applicable income taxes		479			496

Net income		1,444			1,412
Net (income) loss attributable to noncontrolling interests		(13	)		(15	)

Net income attributable to U.S. Bancorp		$1,431			$1,397

Net income applicable to U.S. Bancorp common shareholders		$1,365			$1,331

Earnings per common share		$.77			$.73
Diluted earnings per common share		$.76			$.73
Dividends declared per common share		$.245			$.230
Average common shares outstanding		1,781			1,818
Average diluted common shares outstanding		1,789			1,828

Page 28

U.S. Bancorp

Consolidated Ending Balance Sheet


(Dollars in Millions)	March 31, 2015			December 31, 2014			March 31, 2014

Assets		(Unaudited	)					(Unaudited	)
Cash and due from banks		$14,072			$10,654			$7,408
Investment securities
Held-to-maturity		45,597			44,974			40,712
Available-for-sale		56,826			56,069			44,761
Loans held for sale		8,012			4,792			1,843
Loans
Commercial		82,732			80,377			73,701
Commercial real estate		42,409			42,795			40,131
Residential mortgages		51,089			51,619			51,708
Credit card		17,504			18,515			17,129
Other retail		46,449			49,264			47,607

Total loans, excluding covered loans		240,183			242,570			230,276
Covered loans		5,118			5,281			8,099

Total loans		245,301			247,851			238,375
Less allowance for loan losses		(4,023	)		(4,039	)		(4,189	)

Net loans		241,278			243,812			234,186
Premises and equipment		2,575			2,618			2,589
Goodwill		9,363			9,389			9,204
Other intangible assets		3,033			3,162			3,422
Other assets		29,477			27,059			27,164

Total assets		$410,233			$402,529			$371,289


Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing		$79,220			$77,323			$73,363
Interest-bearing		179,853			177,452			157,918
Time deposits greater than $100,000		27,528			27,958			29,331

Total deposits		286,601			282,733			260,612
Short-term borrowings		28,226			29,893			30,781
Long-term debt		35,104			32,260			23,774
Other liabilities		15,337			13,475			13,379

Total liabilities		365,268			358,361			328,546
Shareholders’ equity
Preferred stock		4,756			4,756			4,756
Common stock		21			21			21
Capital surplus		8,315			8,313			8,236
Retained earnings		43,463			42,530			39,584
Less treasury stock		(11,564	)		(11,245	)		(9,693	)
Accumulated other comprehensive income (loss)		(714	)		(896	)		(850	)

Total U.S. Bancorp shareholders’ equity		44,277			43,479			42,054
Noncontrolling interests		688			689			689

Total equity		44,965			44,168			42,743

Total liabilities and equity		$410,233			$402,529			$371,289

Page 29

U.S. Bancorp

Non-GAAP Financial Measures


(Dollars in Millions, Unaudited)	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014

Total equity		$44,965			$44,168			$43,829			$43,386			$42,743
Preferred stock		(4,756	)		(4,756	)		(4,756	)		(4,756	)		(4,756	)
Noncontrolling interests		(688	)		(689	)		(688	)		(686	)		(689	)
Goodwill (net of deferred tax liability) (1)		(8,360	)		(8,403	)		(8,503	)		(8,548	)		(8,352	)
Intangible assets, other than mortgage servicing rights		(783	)		(824	)		(877	)		(925	)		(804	)

Tangible common equity (a)		30,378			29,496			29,005			28,471			28,142

Tangible common equity (as calculated above)		30,378			29,496			29,005			28,471			28,142
Adjustments (2)		158			172			187			224			239

Common equity tier 1 capital estimated for the Basel III fully implemented standardized and advanced approaches (b)		30,536			29,668			29,192			28,695			28,381

Total assets		410,233			402,529			391,284			389,065			371,289
Goodwill (net of deferred tax liability) (1)		(8,360	)		(8,403	)		(8,503	)		(8,548	)		(8,352	)
Intangible assets, other than mortgage servicing rights		(783	)		(824	)		(877	)		(925	)		(804	)

Tangible assets (c)		401,090			393,302			381,904			379,592			362,133

Risk-weighted assets, determined in accordance with prescribed regulatory requirements (d)		327,709	*		317,398			311,914			309,929			302,841
Adjustments (3)		3,153	*		11,110			12,837			12,753			13,238

Risk-weighted assets estimated for the Basel III fully implemented standardized approach (e)		330,862	*		328,508			324,751			322,682			316,079

Risk-weighted assets, determined in accordance with prescribed transitional advanced approaches regulatory requirements		254,892	*		248,596			243,909			241,929
Adjustments (4)		3,321	*		3,270			3,443			3,383

Risk-weighted assets estimated for the Basel III fully implemented advanced approaches (f)		258,213	*		251,866			247,352			245,312

Ratios *
Tangible common equity to tangible assets (a)/(c)		7.6	%		7.5	%		7.6	%		7.5	%		7.8	%
Tangible common equity to risk-weighted assets (a)/(d)		9.3			9.3			9.3			9.2			9.3
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach (b)/(e)		9.2			9.0			9.0			8.9			9.0
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches (b)/(f)		11.8			11.8			11.8			11.7

* Preliminary data. Subject to change prior to filings with applicable regulatory agencies.

(1) Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.

(2) Includes net losses on cash flow hedges included in accumulated other comprehensive income 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 30

Richard K. Davis

Kathy Rogers

U.S. Bancorp

1Q15 Earnings

Conference Call

U.S. Bancorp

1Q15 Earnings

Conference Call

April 15, 2015

Exhibit 99.2

Chairman, President and CEO

Vice Chairman and CFO

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. 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, residual value risk,

market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputational risk.

For discussion of these and other risks that may cause actual results to differ from expectations, refer to U.S. Bancorp’s Annual Report on

Form 10-K for the year ended December 31, 2014, 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. Bancorp’s 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.

1Q15 Earnings

Conference Call

1Q15 Highlights

Net income of $1.4 billion; $0.76 per diluted common share

Average loan growth of 5.1% vs. 1Q14 and 0.6% vs. 4Q14 (0.8% excluding the

reclassification of certain municipal loans to securities)

Average deposit growth of 8.1% vs. 1Q14 (6.4% excluding Charter One

acquisition) and 1.1% vs. 4Q14

Net charge-offs declined 18.2% vs. 1Q14 and 9.4% vs 4Q14

Nonperforming assets declined 15.2% vs. 1Q14 and 6.2% vs 4Q14

Capital generation continues to reinforce capital position

•

Common equity tier 1 capital ratio of 9.2% estimated for the Basel III fully implemented

standardized approach

Returned 70% of earnings to shareholders in 1Q15

•

Repurchased 12 million shares of common stock during the quarter

1Q15 Earnings

Conference Call

Performance Ratios

Return on Average Common Equity

and Return on Average Assets

Efficiency Ratio and

Net Interest Margin

Return on Avg Common Equity

Return on Avg Assets

Efficiency Ratio

Net Interest Margin

* Excluding $214 million gain on Visa Inc. Class B common stock sale and $200 million FHA DOJ settlement

** Excluding $124 million gain related to an equity interest in Nuveen and $88 million expense for charitable contributions and legal accruals

Efficiency ratio computed as noninterest expense divided by the sum of net interest income on a taxable-equivalent basis and noninterest

income excluding securities gains (losses) net

14.6%

15.1%

14.5%

14.4%

14.1%

1.56%

1.60%

1.51%

1.50%

1.44%

1.0%

1.5%

2.0%

2.5%

3.0%

11%

14%

17%

20%

1Q14

2Q14

3Q14

4Q14

1Q15

52.9%

53.1%

52.4%

54.3%

53.8%**

51.3%*

3.35%

3.27%

3.16%

3.14%

3.08%

1.6%

2.2%

2.8%

3.4%

4.0%

48%

52%

56%

60%

64%

1Q14

2Q14

3Q14

4Q14

1Q15

54.3%

1Q15 Earnings

Conference Call

* Gain on Visa Inc. Class B common stock sale

** Gain related to an equity interest in Nuveen

Taxable-equivalent basis

Revenue Growth

Year-Over-Year Change

(1.2%)

4.9%

2.0%

5.7%

1.9%

$ in millions

$4,906

$4,814

$4,990

$5,188

$214*

$124**

3,500

4,000

4,500

5,000

5,500

1Q14

2Q14

3Q14

4Q14

1Q15

$5,169

1Q15 Earnings

Conference Call

Loan and Deposit Growth

Year-Over-Year Growth

Average Balances

$ in billions

5.9%

$246.4

5.1%

$248.0

6.0%

$235.9

6.8%

$240.5

6.3%

$243.9

7.2%

$275.5

8.1%

$278.5

5.1%

$257.5

6.0%

$262.4

7.4%

$271.0

210.0

230.0

250.0

270.0

290.0

1Q14

2Q14

3Q14

4Q14

1Q15

Loans

Deposits

1Q15 Earnings

Conference Call

Credit Quality

Net Charge-offs

Nonperforming Assets

$ in millions

Net Charge-offs (Left Scale)

NCOs to Avg Loans (Right Scale)

Nonperforming Assets (Left Scale)

NPAs to Loans plus ORE (Right Scale)

$341

$349

$336

$308

$279

0.59%

0.58%

0.55%

0.50%

0.46%

0.00%

0.75%

1.50%

2.25%

3.00%

130

260

390

520

1Q14

2Q14

3Q14

4Q14

1Q15

$1,999

$1,943

$1,923

$1,808

$1,696

0.84%

0.80%

0.78%

0.73%

0.69%

0.00%

0.75%

1.50%

2.25%

3.00%

700

1,400

2,100

2,800

1Q14

2Q14

3Q14

4Q14

1Q15

1Q15 Earnings

Conference Call

Earnings Summary

$ and shares in millions, except per-share data

Taxable-equivalent basis

1Q15

4Q14

1Q14

vs 4Q14

vs 1Q14

Net Interest Income

2,752

2,799

2,706

(1.7)

1.7

Noninterest Income

2,154

2,370

2,108

(9.1)

2.2

Net Revenue

4,906

5,169

4,814

(5.1)

1.9

Noninterest Expense

2,665

2,804

2,544

5.0

(4.8)

Operating Income

2,241

2,365

2,270

(5.2)

(1.3)

Net Charge-offs

279

308

341

9.4

18.2

Excess Provision

(15)

(20)

(35)

(25.0)

(57.1)

Income before Taxes

1,977

2,077

1,964

(4.8)

0.7

Applicable Income Taxes

533

576

552

7.5

3.4

Noncontrolling Interests

(13)

(15)

13.3

Net Income

1,431

1,488

1,397

(3.8)

2.4

Preferred Dividends/Other

2.9

NI to Common

1,365

1,420

1,331

(3.9)

2.6

Diluted EPS

0.76

0.79

0.73

(3.8)

4.1

Average Diluted Shares

1,789

1,796

1,828

0.4

2.1

% B/(W)

1Q15 Earnings

Conference Call

1Q15 Results -

Key Drivers

vs. 1Q14

Net Revenue increase of 1.9%

•

Net interest income increase of 1.7%; net interest margin of 3.08% vs. 3.35% in 1Q14

•

Noninterest income increase of 2.2%

Noninterest expense increase of 4.8%

Provision for credit losses declined by $42 million

•

Net charge-offs lower by $62 million, or 18.2%

•

Provision lower than NCOs by $15 million vs. $35 million in 1Q14

vs. 4Q14

Net Revenue decrease of 5.1% (2.8% decrease excluding notable item in 4Q14)

•

Net interest income decrease of 1.7%; net interest margin

of 3.08% vs. 3.14% in 4Q14

•

Noninterest income decrease of 9.1% (4.1% decrease

excluding notable item in 4Q14)

Noninterest expense decrease of 5.0% (1.9% decrease

excluding notable items in 4Q14)

Provision for credit losses lower by $24 million

•

Net charge-offs decreased by $29 million, or 9.4%

•

Provision lower than NCOs by $15 million vs. $20 million in 4Q14

1Q15 Earnings

Conference Call

Capital Position

$ in billions

RWA = risk-weighted assets

1Q15

4Q14

3Q14

2Q14

1Q14

Total U.S. Bancorp shareholders' equity

44.3

43.5

43.1

42.7

42.1

Standardized Approach

Basel III transitional standardized approach

Common equity tier 1 capital

31.3

30.9

30.2

29.8

29.5

Tier 1 capital

36.4

36.0

35.4

34.9

34.6

Total risk-based capital

43.6

43.2

42.5

41.0

40.7

Common equity tier 1 capital ratio

9.6%

9.7%

9.6%

9.7%

Tier 1 capital ratio

11.1%

11.3%

11.4%

Total risk-based capital ratio

13.3%

13.6%

13.2%

13.5%

Leverage ratio

9.3%

9.4%

9.6%

9.7%

Common equity tier 1 capital to RWA estimated for the

Basel III fully implemented standardized approach

9.2%

9.0%

8.9%

9.0%

Advanced Approaches

Common equity tier 1 capital to RWA for the Basel III

transitional advanced approaches

12.3%

12.4%

12.3%

Common equity tier 1 capital to RWA estimated for the

Basel III fully implemented advanced approaches

11.8%

11.7%

Tangible common equity ratio

7.6%

7.5%

7.6%

7.5%

7.8%

Tangible common equity as a % of RWA

9.3%

9.2%

9.3%

1Q15 Earnings

Conference Call

Capital Actions

Reinvest and

Acquisitions

Dividends

Repurchases

20 -

40%

Targets:

30 -

40%

30 -

40%

30%

1Q15

Actual:

38%

32%

Earnings Distribution

Share repurchase authorization and expected dividend increase announced

March 11

•

Expect to increase annual dividend from $0.98 to $1.02, a 4.1% increase, effective 2Q15

•

Five-quarter authorization to repurchase up to $3.022 billion of outstanding common stock

effective April 1, 2015

Returned 70% of earnings to shareholders during 1Q15

1Q15 Earnings

Conference Call

1Q15 Earnings

Conference Call

Appendix

1Q15 Earnings

Conference Call

Average Loans

Key Points

$ in billions

vs. 1Q14

Average total loans grew by $12.1 billion, or

5.1% (4.8% excluding Charter One acquisition)

Average total commercial loans increased

$10.7 billion, or 15.1%; average commercial

real estate loans increased $2.6 billion, or 6.5%

vs. 4Q14

Average total loans grew by $1.6 billion, or

0.6% (0.8% increase excluding reclassification

of certain municipal loans to securities at the

end of 4Q14)

Average total commercial loans increased $1.9

billion, or 2.4%; average commercial real estate

loans increased $1.7 billion, or 4.2%

Year-Over-Year Growth

6.0%

6.8%

6.3%

5.9%

5.1%

Covered

Commercial

CRE

Res Mtg

Retail

Credit Card

Average Loans

8.5%

12.4%

13.6%

15.5%

15.1%

7.6%

6.9%

6.1%

4.2%

6.5%

14.4%

10.5%

5.8%

2.2%

(0.3%)

5.3%

5.9%

4.9%

3.6%

2.4%

140

280

1Q14

2Q14

3Q14

4Q14

1Q15

0.9%

2.3%

3.6%

3.5%

210

$235.9

$240.5

$243.9

$246.4

$248.0

1Q15 Earnings

Conference Call

Average Deposits

Key Points

$ in billions

vs. 1Q14

Average total deposits increased by $21.0

billion, or 8.1% (6.4% excluding Charter One

acquisition)

Average low-cost deposits (NIB, interest

checking, money market and savings)

increased by $24.5 billion, or 11.4%

vs. 4Q14

Average total deposits increased by $3.0

billion, or 1.1%

Average low-cost deposits increased by $4.1

billion, or 1.7%

Year-Over-Year Growth

5.1%

6.0%

7.4%

7.2%

8.1%

Time

Money Market

Checking and Savings

Noninterest-bearing

$257.5

$262.4

$271.0

$275.5

$278.5

(6.1%)

(5.9%)

(13.1%)

(4.9%)

(8.2%)

11.6%

10.8%

18.3%

19.7%

24.7%

5.9%

8.3%

10.9%

8.3%

7.3%

6.7%

7.4%

8.6%

3.3%

5.2.%

160

240

320

1Q14

2Q14

3Q14

4Q14

1Q15

1Q15 Earnings

Conference Call

Net Interest Income

Key Points

$ in millions

Taxable-equivalent basis

vs. 1Q14

Average earning assets grew by $34.6 billion,

or 10.6%

Net interest margin lower by 27 bps (3.08% vs. 3.35%)

driven by:

•

growth in the investment portfolio at lower average rates, as

well as lower reinvestment rates on investment securities,

lower loan fees due to the CAA product wind down, lower

rates on new loans and a change in loan portfolio mix

•

Partially offset by lower funding costs

vs. 4Q14

Average earning assets grew by $5.9 billion,

or 1.7%

Net interest margin lower by 6 bps (3.08% vs. 3.14%)

driven by:

•

Growth in lower rate investment securities and lower

reinvestment rates, lower interest recoveries, lower rates on

new loans and a change in loan portfolio mix, along with the

impact of higher cash balances at the Federal Reserve as a

result of continued deposit growth

Year-Over-Year Change

(0.1%)

2.7%

1.3%

2.4%

1.7%

$2,706

$2,744

$2,748

$2,799

$2,752

3.35%

3.27%

3.16%

3.14%

3.08%

0.0%

2.0%

4.0%

6.0%

8.0%

1,000

2,000

3,000

4,000

1Q14

2Q14

3Q14

4Q14

1Q15

Net Interest Income

Net Interest Margin

1Q15 Earnings

Conference Call

Noninterest Income

Key Points

$ in millions

Payments = credit and debit card revenue, corporate payment products revenue and merchant processing;

Service charges = deposit service charges, treasury management fees and ATM processing services

vs. 1Q14

Noninterest income increased by $46 million, or

2.2%, driven by:

•

Higher trust and investment management fees (5.9% increase)

due to account growth and improved market conditions

•

Higher other income due primarily to equity investment gains

•

Mortgage revenue increase of $4 million

•

Partially offset by lower commercial products revenue (2.4%

decrease) due to lower wholesale transaction activity and lower

commercial leasing revenue, partially offset by increased bond

underwriting fees

vs. 4Q14

Noninterest income decreased by $216 million, or

9.1%, driven by:

•

Lower credit and debit card revenue (11.4% decrease) primarily

due to seasonally lower sales volume and fewer days

•

Lower merchant processing revenue (6.5% decrease) due to

seasonally lower product fees and fewer days

•

Lower deposit service charges (10.6% decrease) due to fewer

days and seasonally lower volumes

•

Lower commercial products revenue (8.7% decrease) due to

lower wholesale transaction activity partially offset by increased

bond underwriting fees

•

Lower other income due primarily to 4Q Nuveen gain

•

Partially offset by mortgage revenue increase of $5 million

Year-Over-Year Change

(2.6%)

7.4%

3.0%

9.9%

2.2%

$2,108

$2,444

$2,242

$2,370

All Other

Mortgage

Service Charges

Trust and Inv Mgmt

Payments

1Q14

2Q14

3Q14

4Q14

1Q15

Nuveen Gain

124

Visa Gain

214

Total

214

124

Notable Noninterest Income Items

700

1,400

2,100

2,800

1Q14

2Q14

3Q14

4Q14

1Q15

$2,154

3.2%

1.7%

2.2%

5.9%

0.3%

1Q15 Earnings

Conference Call

Noninterest Expense

Key Points

$ in millions

vs. 1Q14

Noninterest expense was higher by $121 million,

or 4.8%, driven by:

•

Higher compensation expense (5.7% increase) reflecting the

impact of merit increases, acquisitions, and higher staffing for

risk and compliance activities, and higher employee benefits

expense (9.7% increase) due to higher pension costs

•

Higher other expense (12.4% increase) primarily due to higher

mortgage servicing-related expenses

vs. 4Q14

Noninterest expense was lower by $139 million, or

5.0%, driven by:

•

Lower marketing and business development expense (45.7%

decrease) due to the fourth quarter 2014 charitable

contributions and lower advertising costs

•

Lower professional services expense (41.7% decrease) due to

seasonally lower costs

•

Lower other expense due to seasonally lower costs related to

investments in tax-advantaged projects and the impact of the

fourth quarter 2014 legal accruals, partially offset by increased

mortgage servicing-related expenses

•

Partially offset by higher employee benefit expense (29.4%

increase) due to increased pension costs and seasonally

higher payroll taxes and higher compensation expense (2.4%

increase) reflecting the seasonal impact of stock based

compensation grants and commissions related to mortgage

production

Year-Over-Year Change

3.0%

7.7%

1.9%

4.5%

4.8%

$2,544

$2,753

$2,614

$2,804

$2,665

All Other

Tech and Communications

Prof Svcs, Marketing and PPS

Occupancy and Equipment

Compensation and Benefits

1Q14

2Q14

3Q14

4Q14

1Q15

Charitable contributions

Accruals for legal matters

FHA DOJ settlement

200

Total

200

Notable Noninterest Expense Items

9.6%

1.4%

(0.8%)

6.6%

800

1,600

2,400

3,200

1Q14

2Q14

3Q14

4Q14

1Q15

(5.8%)

1Q15 Earnings

Conference Call

Credit Quality

Commercial Loans

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

Continued new client growth led to 2.5% linked quarter loan growth and 16.1% year-over-year

growth; utilization rates improved modestly

Net charge-offs declined on a linked quarter basis and the NCO ratio was flat year-over-year

Nonperforming loans and delinquencies continued at historically low levels

1Q14

4Q14

1Q15

Average Loans

$65,645

$74,333

$76,183

30-89 Delinquencies

0.25%

0.27%

0.19%

90+ Delinquencies

0.07%

0.05%

0.06%

Nonperforming Loans

0.25%

0.13%

0.10%

$ in millions

$65,645

$69,920

$72,190

$74,333

$76,183

0.21%

0.30%

0.29%

0.26%

0.21

0.0%

0.5%

1.0%

1.5%

2.0%

25,000

50,000

75,000

100,000

1Q14

2Q14

3Q14

4Q14

1Q15

Average Loans

Net Charge

-offs Ratio

20%

24%

28%

32%

36%

Revolving Line Utilization Trend

1Q15 Earnings

Conference Call

Credit Quality

Commercial Leases

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

Commercial

lease

balances

increased

slightly

linked

quarter

basis

Net charge-offs increased as recoveries returned to normal levels

Nonperforming loans and delinquencies continued at modest levels

1Q14

4Q14

1Q15

Average Loans

$5,189

$5,292

$5,325

30-89 Delinquencies

0.74%

0.78%

0.84%

90+ Delinquencies

0.00%

Nonperforming Loans

0.27%

0.24%

$ in millions

Small Ticket

$3,095

Equipment

Finance

$2,230

Commercial Leases

$5,189

$5,100

$5,155

$5,292

$5,325

0.16%

0.24%

0.46%

-0.15%

0.23%

-0.7%

0.0%

0.7%

1.4%

2.1%

3,000

6,000

9,000

1Q14

2Q14

3Q14

4Q14

1Q15

Average Loans

Net Charge

-offs Ratio

1Q15 Earnings

Conference Call

Credit

Quality

Commercial

Real

Estate

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

Credit quality is stable at low levels; non-performing loans improved quarter-over-quarter

Net

recovery

ratio

0.17%,

continuing

trend

recoveries

the

portfolio

1Q14

4Q14

1Q15

Average Loans

$40,050

$40,966

$42,671

30-89 Delinquencies

0.14%

0.26%

0.24%

90+ Delinquencies

0.06%

0.05%

0.07%

Nonperforming Loans

0.67%

0.61%

0.51%

Performing TDRs*

$359

$365

$259

$ in millions

Investor

$21,551

Owner

Occupied

$11,568

Multi-family

$2,931

Retail

$745

Residential

Construction

$2,061

A&D

Construction

$714

Office

$1,024

Other

$2,077

* TDR = troubled debt restructuring

$40,050

$40,497

$40,839

$40,966

$42,671

-0.03%

-0.04%

0.04%

-0.10%

-0.17%

-0.5%

0.0%

0.5%

1.0%

1.5%

20,000

40,000

60,000

1Q14

2Q14

3Q14

4Q14

1Q15

Average Loans

Net Charge

-offs Ratio

CRE Mortgage

CRE Construction

1Q15 Earnings

Conference Call

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%)

82% of the balances have been originated since the beginning of 2009; the origination quality

metrics and performance to date have significantly outperformed prior vintages

with similar seasoning

1Q14

4Q14

1Q15

Average Loans

$51,584

$51,872

$51,426

30-89 Delinquencies

0.59%

0.43%

0.38%

90+ Delinquencies

0.64%

0.40%

0.33%

Nonperforming Loans

1.50%

1.67%

1.61%

$ in millions

*Excludes

GNMA

loans,

whose

repayments

are

insured

the

FHA

guaranteed

the

Department

($2,157

million

1Q15)

$51,584

$51,815

$51,994

$51,872

$51,426

0.45%

0.44%

0.32%

0.30%

0.0%

0.5%

1.0%

1.5%

2.0%

15,000

30,000

45,000

60,000

1Q14

2Q14

3Q14

4Q14

1Q15

Average Loans

Net Charge

-offs Ratio

$1,962

$1,922

$1,899

$1,866

$1,851

1,000

2,000

3,000

4,000

1Q14

2Q14

3Q14

4Q14

1Q15

Residential Mortgage Performing TDRs*

0.28%

1Q15 Earnings

Conference Call

1Q14

4Q14

1Q15

Average Loans

$17,407

$17,990

$17,823

30-89 Delinquencies

1.19%

1.24%

1.16%

90+ Delinquencies

1.21%

1.13%

1.19%

Nonperforming Loans

0.38%

0.16%

0.13%

Credit Quality -

Credit Card

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

Average loans seasonally declined 0.9% on a linked quarter basis; up 2.4% year-over-year

Delinquencies and losses remain near historically low levels with some seasonal impacts

Nonperforming loans continued to decline

$ in millions

5,000

10,000

15,000

20,000

1Q14

2Q14

3Q14

4Q14

1Q15

0.0%

2.0%

4.0%

6.0%

8.0%

$17,407

$17,384

$17,753

$17,990

$17,823

3.96%

3.92%

3.53%

3.71%

Average Loans

Net Charge

-offs Ratio

Credit Card Nonperforming Loans

0.0%

0.5%

1.0%

1.5%

2.0%

1Q14

2Q14

3Q14

4Q14

1Q15

$65

$52

$40

$30

$22

0.38%

0.29%

0.22%

0.16%

0.13%

1Q15 Earnings

Conference Call

Credit Quality -

Home Equity

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

High-quality originations (weighted average FICO on commitments was 766, weighted average

CLTV

71%)

originated

primarily

through

the

retail

branch

network

existing

bank

customers

their primary residences

Net charge-offs ratio declined on a linked quarter and year-over-year basis

1Q14

4Q14

1Q15

Average Loans

$15,366

$15,853

$15,897

30-89 Delinquencies

0.57%

0.54%

0.41%

90+ Delinquencies

0.33%

0.26%

0.25%

Nonperforming Loans

1.09%

1.07%

Subprime: 1%

Wtd Avg LTV*: 90%

NCO: 3.51%

$ in millions

Prime: 96%

Wtd Avg LTV*: 72%

NCO: 0.29%

*LTV at origination

Other: 3%

Wtd Avg LTV*: 72%

NCO: 0.81%

$15,366

$15,327

$15,704

$15,853

$15,897

0.82%

0.60%

0.61%

0.43%

0.36%

0.0%

1.0%

2.0%

3.0%

4.0%

5,000

10,000

15,000

20,000

1Q14

2Q14

3Q14

4Q14

1Q15

Average Loans

Net Charge

-offs Ratio

Home Equity

1Q15 Earnings

Conference Call

Credit Quality -

Retail Leasing

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

Continued high-quality originations (weighted average FICO 789) support the portfolio’s stable credit

profile

Delinquencies remained relatively stable at very low levels

Strong used auto values continued to contribute to historically low net charge-offs

1Q14

4Q14

1Q15

Average Loans

$5,979

$5,939

$5,819

30-89 Delinquencies

0.16%

0.18%

0.12%

90+ Delinquencies

0.02%

0.00%

Nonperforming Loans

0.02%

$ in millions

* Manheim Used Vehicle Value Index source: www.manheimconsulting.com, January 1995 = 100, quarter value = average of monthly ending values

$5,979

$6,014

$5,991

$5,939

$5,819

0.00%

0.07%

0.00%

0.07%

0.0%

0.2%

0.4%

0.6%

0.8%

2,000

4,000

6,000

8,000

1Q14

2Q14

3Q14

4Q14

1Q15

Average Loans

Net Charge

-offs Ratio

100

110

120

130

140

Manheim

Used Vehicle Index*

1Q15 Earnings

Conference Call

Credit Quality -

Other Retail

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

Growth in auto and installment loans continued to offset declines in student lending loan balances

Student lending balances were moved to held for sale at the end of the quarter

Net charge-offs and delinquencies improved on a linked quarter basis reflecting seasonality and

remained low year-over-year

1Q14

4Q14

1Q15

Average Loans

$26,312

$27,317

$27,604

30-89 Delinquencies

0.40%

0.51%

0.44%

90+ Delinquencies

0.13%

0.12%

0.11%

Nonperforming Loans

0.08%

0.06%

Installment

$6,274

Auto Loans

$15,013

Revolving

Credit

$3,272

Student

Lending

$3,045

$ in millions

$26,312

$26,587

$27,003

$27,317

$27,604

0.69%

0.68%

0.72%

0.76%

0.60%

0.0%

0.5%

1.0%

1.5%

2.0%

10,000

20,000

30,000

40,000

1Q14

2Q14

3Q14

4Q14

1Q15

Average Loans

Net Charge

-offs Ratio

Other Retail

1Q15 Earnings

Conference Call

Credit Quality -

Auto Loans

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

Continued growth (8.7% year-over-year) in auto loans driven by high-quality originations in

the indirect channel (weighted average FICO 765)

Net charge-offs seasonally improved on a linked quarter basis, and as expected, increased

year-over-year as growth initiatives continued to mature

1Q14

4Q14

1Q15

Average Loans

$13,815

$14,644

$15,013

30-89 Delinquencies

0.26%

0.45%

0.30%

90+ Delinquencies

0.03%

0.01%

Nonperforming Loans

0.02%

0.03%

$ in millions

Auto Loans are included in Other Retail category

Direct: 6%

Wtd Avg FICO: 748

NCO: 0.05%

Indirect: 94%

Wtd Avg FICO: 763

NCO: 0.20%

$13,815

$14,108

$14,404

$14,644

$15,013

0.09%

0.11%

0.25%

0.33%

0.19%

0.0%

0.5%

1.0%

1.5%

2.0%

4,000

8,000

12,000

16,000

1Q14

2Q14

3Q14

4Q14

1Q15

Average Loans

Net Charge

-offs Ratio

Indirect and Direct Channel

1Q15 Earnings

Conference Call

Mortgage Repurchase

Mortgages Repurchased and Make-whole Payments

Mortgage Representation and Warranties Reserve

$ in millions

1Q15

4Q14

3Q14

2Q14

1Q14

Beginning Reserve

$46

$62

$69

$75

$83

Net Realized Losses

(2)

(15)

(1)

(2)

(10)

Change in Reserve

(1)

(6)

(4)

Ending Reserve

$46

$62

$69

$75

Mortgages

repurchased

and make-whole

payments

$12

$14

$19

$30

$36

Repurchase activity lower than

peers due to:

•

Conservative credit and

underwriting culture

•

Disciplined origination process -

primarily conforming loans

(

95%

sold

GSEs)

Do not participate in private

placement securitization market

Outstanding repurchase and

make-whole requests balance

of $22 million

1Q15 Earnings

Conference Call

Non-GAAP Financial Measures

March 31,

December 31,

September 30,

June 30,

March 31,

(Dollars in Millions, Unaudited)

2015

2014

Total equity

$44,965

$44,168

$43,829

$43,386

$42,743

Preferred stock

(4,756)

Noncontrolling interests

(688)

(689)

(688)

(686)

(689)

Goodwill (net of deferred tax liability) (1)

(8,360)

(8,403)

(8,503)

(8,548)

(8,352)

Intangible assets, other than mortgage servicing rights

(783)

(824)

(877)

(925)

(804)

Tangible common equity (a)

30,378

29,496

29,005

28,471

28,142

Tangible common equity (as calculated above)

30,378

29,496

29,005

28,471

28,142

Adjustments (2)

158

172

187

224

239

Common equity tier 1 capital estimated for the Basel III fully

implemented standardized and advanced approaches (b)

30,536

29,668

29,192

28,695

28,381

Total assets

410,233

402,529

391,284

389,065

371,289

Goodwill (net of deferred tax liability) (1)

(8,360)

(8,403)

(8,503)

(8,548)

(8,352)

Intangible assets, other than mortgage servicing rights

(783)

(824)

(877)

(925)

(804)

Tangible assets (c)

401,090

393,302

381,904

379,592

362,133

Risk-weighted assets, determined in accordance with prescribed

regulatory requirements (d)

327,709

317,398

311,914

309,929

302,841

Adjustments (3)

3,153

11,110

12,837

12,753

13,238

Risk-weighted assets estimated for the Basel III fully implemented

standardized approach (e)

330,862

328,508

324,751

322,682

316,079

Risk-weighted assets, determined in accordance with prescribed

transitional advanced approaches regulatory requirements

254,892

248,596

243,909

241,929

Adjustments (4)

3,321

3,270

3,443

3,383

Risk-weighted assets estimated for the Basel III fully implemented

advanced approaches (f)

258,213

251,866

247,352

245,312

Ratios *

Tangible common equity to tangible assets (a)/(c)

7.6

7.5

7.6

7.5

7.8

Tangible common equity to risk-weighted assets (a)/(d)

9.3

9.2

9.3

Common equity tier 1 capital to risk-weighted assets estimated for the

Basel III fully implemented standardized approach (b)/(e)

9.2

9.0

8.9

9.0

Common equity tier 1 capital to risk-weighted assets estimated for the

Basel III fully implemented advanced approaches (b)/(f)

11.8

11.7

Preliminary data. Subject to change prior to filings with applicable regulatory agencies.

(1) Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.

(2) Includes net losses on cash flow hedges included in accumulated other comprehensive income 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.

April 15, 2015

U.S. Bancorp

1Q15 Earnings

Conference Call

U.S. Bancorp

1Q15 Earnings

Conference Call

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