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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 5/08/23 U.S. Bancorp 10-Q 3/31/23 130:20M Donnelley … Solutions/FA |
Document/Exhibit Description Pages Size
1: 10-Q Quarterly Report HTML 4.73M
2: EX-31.1 Certification -- §302 - SOA'02 HTML 47K
3: EX-31.2 Certification -- §302 - SOA'02 HTML 47K
4: EX-32 Certification -- §906 - SOA'02 HTML 43K
10: R1 Cover Page HTML 115K
11: R2 Consolidated Balance Sheet HTML 171K
12: R3 Consolidated Balance Sheet (Parenthetical) HTML 61K
13: R4 Consolidated Statement of Income HTML 175K
14: R5 Consolidated Statement of Comprehensive Income HTML 95K
15: R6 Consolidated Statement of Shareholders' Equity HTML 113K
16: R7 Consolidated Statement of Shareholders' Equity HTML 58K
(Parenthetical)
17: R8 Consolidated Statement of Cash Flows HTML 139K
18: R9 Consolidated Statement of Cash Flows HTML 46K
(Parenthetical)
19: R10 Basis of Presentation HTML 46K
20: R11 Accounting Changes HTML 60K
21: R12 Business Combinations HTML 68K
22: R13 Investment Securities HTML 185K
23: R14 Loans and Allowance for Credit Losses HTML 449K
24: R15 Accounting for Transfers and Servicing of HTML 60K
Financial Assets and Variable Interest Entities
25: R16 Mortgage Servicing Rights HTML 104K
26: R17 Preferred Stock HTML 70K
27: R18 Accumulated Other Comprehensive Income (Loss) HTML 90K
28: R19 Earnings Per Share HTML 56K
29: R20 Employee Benefits HTML 62K
30: R21 Income Taxes HTML 64K
31: R22 Derivative Instruments HTML 189K
32: R23 Netting Arrangements for Certain Financial HTML 134K
Instruments and Securities Financing Activities
33: R24 Fair Values of Assets and Liabilities HTML 284K
34: R25 Guarantees and Contingent Liabilities HTML 72K
35: R26 Business Segments HTML 171K
36: R27 Subsequent Events HTML 45K
37: R28 Significant Accounting Policies (Policies) HTML 50K
38: R29 Business Combinations (Tables) HTML 62K
39: R30 Investment Securities (Tables) HTML 189K
40: R31 Loans and Allowance for Credit Losses (Tables) HTML 442K
41: R32 Accounting for Transfers and Servicing of HTML 47K
Financial Assets and Variable Interest Entities
(Tables)
42: R33 Mortgage Servicing Rights (Tables) HTML 107K
43: R34 Preferred Stock (Tables) HTML 74K
44: R35 Accumulated Other Comprehensive Income (Loss) HTML 91K
(Tables)
45: R36 Earnings Per Share (Tables) HTML 54K
46: R37 Employee Benefits (Tables) HTML 58K
47: R38 Income Taxes (Tables) HTML 63K
48: R39 Derivative Instruments (Tables) HTML 191K
49: R40 Netting Arrangements for Certain Financial HTML 131K
Instruments and Securities Financing Activities
(Tables)
50: R41 Fair Values of Assets and Liabilities (Tables) HTML 276K
51: R42 Guarantees and Contingent Liabilities (Tables) HTML 55K
52: R43 Business Segments (Tables) HTML 159K
53: R44 Business Combinations - Summary of Preliminary HTML 102K
Fair Value of The Identifiable Tangible and
Intangible Assets and Liabilities (Detail)
54: R45 Business Combinations - Summary of Preliminary HTML 45K
Fair Value of The Identifiable Tangible and
Intangible Assets and Liabilities (Parenthetical)
(Detail)
55: R46 Business Combinations - Additional Information HTML 65K
(Detail)
56: R47 Investment Securities - Available-for-Sale and HTML 97K
Held-to-Maturity (Detail)
57: R48 Investment Securities - Amount of Interest Income HTML 49K
from Taxable and Non-Taxable Investment Securities
(Detail)
58: R49 Investment Securities - Amount of Gross Gains and HTML 51K
Losses Realized through Sales of
Available-for-Sale Investment Securities (Detail)
59: R50 Investment Securities - Additional Information HTML 52K
(Detail)
60: R51 Investment Securities - Gross Unrealized Losses HTML 83K
and Fair Value of Company's Investment Securities
(Detail)
61: R52 Investment Securities - Amortized Cost, Fair Value HTML 196K
and Yield by Maturity Date (Detail)
62: R53 Investment Securities - Amortized Cost, Fair Value HTML 55K
and Yield by Maturity Date (Parenthetical)
(Detail)
63: R54 Loans and Allowance for Credit Losses - HTML 95K
Composition of Loan Portfolio (Detail)
64: R55 Loans and Allowance for Credit Losses - Additional HTML 66K
Information (Detail)
65: R56 Loans and Allowance for Credit Losses - Activity HTML 86K
in Allowance for Credit Losses by Portfolio Class
(Detail)
66: R57 Loans and Allowance for Credit Losses - Summary of HTML 78K
Financing Receivable credit losses charged-off by
portfolio class (Detail)
67: R58 Loans and Allowance for Credit Losses - Summary of HTML 95K
Loans by Portfolio Class, Including Delinquency
Status of those that Continue to Accrue Interest
and are Nonperforming (Detail)
68: R59 Loans and Allowance for Credit Losses - Summary of HTML 50K
Loans by Portfolio Class, Including Delinquency
Status of those that Continue to Accrue Interest
and are Nonperforming (Parenthetical) (Detail)
69: R60 Loans and Allowance for Credit Losses - Summary of HTML 158K
the Company's Internal Credit Quality Rating of
Loans by Portfolio Class (Detail)
70: R61 Loans and Allowance for Credit Losses - Summary of HTML 48K
Loans by Portfolio Class and Company's Internal
Credit Quality Rating (Parenthetical) (Detail)
71: R62 Loans and Allowance for Credit Losses - Loans HTML 98K
modified by class and modification type (Detail)
72: R63 Loans and Allowance for Credit Losses - Loans HTML 51K
modified by class and modification type (Detail)
(Parenthetical)
73: R64 Loans and Allowance for Credit Losses - Effects of HTML 61K
Loan Modifications Made During the Period (Detail)
74: R65 Loans and Allowance for Credit Losses - Loans HTML 82K
Modified by Class and Delinquency Status (Detail)
75: R66 Loans and Allowance for Credit Losses - Loans HTML 59K
Modified by Class and Delinquency Status (Detail)
(Parenthetical)
76: R67 Loans and Allowance for Credit Losses - Summary of HTML 69K
Loans Modified as TDRs (Detail)
77: R68 Loans and Allowance for Credit Losses - Summary of HTML 65K
Loans Modified as TDRs in the Past Twelve Months
that have Subsequently Defaulted (Detail)
78: R69 Accounting for Transfers and Servicing of HTML 104K
Financial Assets and Variable Interest Entities -
Additional Information (Detail)
79: R70 Accounting for Transfers and Servicing of HTML 66K
Financial Assets and Variable Interest Entities -
Summary of Investments in Community Development
and Tax-advantaged VIEs (Detail)
80: R71 Mortgage Servicing Rights - Additional Information HTML 49K
(Detail)
81: R72 Mortgage Servicing Rights - Changes in Fair Value HTML 62K
of Capitalized MSRs (Detail)
82: R73 Mortgage Servicing Rights - Sensitivity to Changes HTML 67K
in Interest Rates of the Fair Value of MSR
Portfolio and Related Derivative Instruments
(Detail)
83: R74 Mortgage Servicing Rights - MSRs and Related HTML 86K
Characteristics by Portfolio (Detail)
84: R75 Preferred Stock - Additional Information (Detail) HTML 44K
85: R76 Preferred Stock - Number of Shares Issued and HTML 79K
Outstanding and Carrying Amount of Preferred Stock
(Detail)
86: R77 Preferred Stock - Number of Shares Issued and HTML 44K
Outstanding and Carrying Amount of Preferred Stock
(Parenthetical) (Detail)
87: R78 Accumulated Other Comprehensive Income (Loss) - HTML 91K
Reconciliation of Transactions Affecting
Accumulated Other Comprehensive Income (Loss)
Included in Shareholders' Equity (Detail)
88: R79 Accumulated Other Comprehensive Income (Loss) - HTML 83K
Impact to Net Income for Items Reclassified out of
Accumulated Other Comprehensive Income and into
Earnings (Detail)
89: R80 Earnings Per Share - Components of Earnings Per HTML 87K
Share (Detail)
90: R81 Earnings Per Share - Additional Information HTML 46K
(Detail)
91: R82 Employee Benefits - Components of Net Periodic HTML 65K
Benefit Cost and Other Amounts Recognized in
Accumulated Other Comprehensive Income (Loss)
(Detail)
92: R83 Income Taxes - Components of Income Tax Expense HTML 64K
(Detail)
93: R84 Income Taxes - Additional Information (Detail) HTML 47K
94: R85 Income Taxes - Reconciliation of Expected Income HTML 58K
Tax Expense at Federal Statutory Rate of 21
Percent to Company's Applicable Income Tax Expense
(Detail)
95: R86 Derivative Instruments - Additional Information HTML 55K
(Detail)
96: R87 Derivative Instruments - Summary of Asset and HTML 91K
Liability Management Derivative Positions of
Company (Detail)
97: R88 Derivative Instruments - Summary of Asset and HTML 58K
Liability Management Derivative Positions of
Company (Parenthetical) (Detail)
98: R89 Derivative Instruments - Summary of HTML 84K
Customer-Related Derivative Positions of Company
(Detail)
99: R90 Derivative Instruments - Summary of Effective HTML 59K
Portion of Gains (Losses) Recognized in Other
Comprehensive Income (Loss) and Gains (Losses)
Reclassified from Other Comprehensive Income
(Loss) into Earnings (Detail)
100: R91 Derivative Instruments - Summary of Effect of Fair HTML 65K
Value and Cash Flow Hedge Accounting on
Consolidated Statement of Income (Detail)
101: R92 Derivative Instruments - Summary of Effect of Fair HTML 48K
Value and Cash Flow Hedge Accounting on
Consolidated Statement of Income (Parenthetical)
(Detail)
102: R93 Derivative Instruments - Summary of Cumulative HTML 54K
Hedging Adjustments and the Carrying Amount of
Assets and Liabilities Designated in Fair Value
Hedges (Detail)
103: R94 Derivative Instruments - Summary of Cumulative HTML 50K
Hedging Adjustments and the Carrying Amount of
Assets and Liabilities Designated in Fair Value
Hedges (Parenthetical) (Detail)
104: R95 Derivative Instruments - Summary of Gains (Losses) HTML 79K
Recognized in Earnings for Other Economic Hedges
and Customer-Related Positions (Detail)
105: R96 Netting Arrangements for Certain Financial HTML 50K
Instruments and Securities Financing Activities -
Additional Information (Detail)
106: R97 Netting Arrangements for Certain Financial HTML 67K
Instruments and Securities Financing Activities -
Summary of Maturities by Category of Collateral
Pledged for Repurchase Agreements and Securities
Loaned Transactions (Detail)
107: R98 Netting Arrangements for Certain Financial HTML 99K
Instruments and Securities Financing Activities -
Information on Company's Accounting Netting
Adjustments and Items Not Offset in Consolidated
Balance Sheet Assets But Available for Offset in
Event of Default (Detail)
108: R99 Netting Arrangements for Certain Financial HTML 47K
Instruments and Securities Financing Activities -
Information on Company's Accounting Netting
Adjustments and Items Not Offset in Consolidated
Balance Sheet Assets But Available for Offset in
Event of Default (Parenthetical) (Detail)
109: R100 Netting Arrangements for Certain Financial HTML 100K
Instruments and Securities Financing Activities -
Information on Company's Accounting Netting
Adjustments and Items Not Offset in Consolidated
Balance Sheet Liabilities But Available for Offset
in Event of Default (Detail)
110: R101 Netting Arrangements for Certain Financial HTML 47K
Instruments and Securities Financing Activities -
Information on Company's Accounting Netting
Adjustments and Items Not Offset in Consolidated
Balance Sheet Liabilities But Available for Offset
in Event of Default (Parenthetical) (Detail)
111: R102 Fair Values of Assets and Liabilities - Additional HTML 56K
Information (Detail)
112: R103 Fair Values of Assets and Liabilities - Valuation HTML 56K
Assumption Ranges for MSRs (Detail)
113: R104 Fair Values of Assets and Liabilities - Valuation HTML 54K
Assumption Ranges for Derivative Commitments
(Detail)
114: R105 Fair Values of Assets and Liabilities - Balances HTML 189K
of Assets and Liabilities Measured at Fair Value
on Recurring Basis (Detail)
115: R106 Fair Values of Assets and Liabilities - Balances HTML 44K
of Assets and Liabilities Measured at Fair Value
on Recurring Basis (Parenthetical) (Detail)
116: R107 Fair Values of Assets and Liabilities - Changes in HTML 109K
Fair Value for All Assets and Liabilities Measured
at Fair Value on Recurring Basis Using Significant
Unobservable Inputs (Level 3) (Detail)
117: R108 Fair Values of Assets and Liabilities - Changes in HTML 64K
Fair Value for All Assets and Liabilities Measured
at Fair Value on Recurring Basis Using Significant
Unobservable Inputs (Level 3) (Parenthetical)
(Detail)
118: R109 Fair Values of Assets and Liabilities - Adjusted HTML 55K
Carrying Values for Assets Measured at Fair Value
on Nonrecurring Basis (Detail)
119: R110 Fair Values of Assets and Liabilities - Losses HTML 50K
Recognized Related to Nonrecurring Fair Value
Measurements of Individual Assets or Portfolios
(Detail)
120: R111 Fair Values of Assets and Liabilities - HTML 62K
Differences Between Aggregate Fair Value Carrying
Amount of MLHFS for which Fair Value Option has
been Elected and Aggregate Unpaid Principal Amount
Contractually Obligated to Receive at Maturity
(Detail)
121: R112 Fair Values of Assets and Liabilities - Estimated HTML 98K
Fair Values of Financial Instruments (Detail)
122: R113 Guarantees and Contingent Liabilities - Additional HTML 57K
Information (Detail)
123: R114 Guarantees and Contingent Liabilities - Summary of HTML 66K
Other Guarantees and Contingent Liabilities
(Detail)
124: R115 Business Segments - Additional Information HTML 47K
(Detail)
125: R116 Business Segments - Business Segment Results HTML 154K
(Detail)
128: XML IDEA XML File -- Filing Summary XML 268K
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| 10-Q |
| i ☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| i ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i Delaware |
i 41-0255900 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
| Title of each class |
Trading symbols |
Name of each exchange on which registered | ||
| i Common Stock, $.01 par value per share |
i USB | i New York Stock Exchange | ||
| i Depositary Shares (each representing 1/100th interest in a share of Series A Non-Cumulative Perpetual Preferred Stock, par value $1.00) |
i USB PrA | i New York Stock Exchange | ||
| i Depositary Shares (each representing 1/1,000th interest in a share of Series B Non-Cumulative Perpetual Preferred Stock, par value $1.00) |
i USB PrH | i New York Stock Exchange | ||
| i Depositary Shares (each representing 1/1,000th interest in a share of Series K Non-Cumulative Perpetual Preferred Stock, par value $1.00) |
i USB PrP | i New York Stock Exchange | ||
| i Depositary Shares (each representing 1/1,000th interest in a share of Series L Non-Cumulative Perpetual Preferred Stock, par value $1.00) |
i USB PrQ | i New York Stock Exchange | ||
| i Depositary Shares (each representing 1/1,000th interest in a share of Series M Non-Cumulative Perpetual Preferred Stock, par value $1.00) |
i USB PrR | i New York Stock Exchange | ||
| i Depositary Shares (each representing 1/1,000th interest in a share of Series O Non-Cumulative Perpetual Preferred Stock, par value $1.00) |
i USB PrS | i New York Stock Exchange | ||
| 0.850% i Medium-Term Notes, Series X (Senior), due June 7, 2024 |
i USB/24B | i New York Stock Exchange |
| i Large accelerated filer ☑ | Accelerated filer ☐ | |
Non-accelerated filer ☐ |
Smaller reporting company i ☐ Emerging growth company i ☐ |
| Class | Outstanding as of April 30, 2023 | |
| Common Stock, $0.01 Par Value | i 1,532,920,691 shares |
Part I — Financial Information |
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| 31 | ||||
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| 33 | ||||
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| 34 | ||||
Part II — Other Information |
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| 75 | ||||
| 75 | ||||
| 75 | ||||
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| 76 | ||||
| 77 | ||||
| • | Deterioration in general business and economic conditions or turbulence in domestic or global financial markets, which could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price volatility; |
| • | Turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions, which could affect the ability of depository institutions, including U.S. Bank National Association and MUFG Union Bank, N.A. (“MUB”), to attract and retain depositors, and could affect the ability of financial services providers, including U.S. Bancorp, to borrow or raise capital; |
| • | Increases in Federal Deposit Insurance Corporation (“FDIC”) assessments due to bank failures; |
| • | Actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions; |
| • | Changes to regulatory capital, liquidity and resolution-related requirements applicable to large banking organizations in response to recent developments affecting the banking sector; |
| • | Changes to statutes, regulations, or regulatory policies or practices, including capital and liquidity requirements, and the enforcement and interpretation of such laws and regulations, and U.S. Bancorp’s ability to address or satisfy those requirements and other requirements or conditions imposed by regulatory entities; |
| • | Changes in interest rates; |
| • | Increases in unemployment rates; |
| U.S. Bancorp | 1 |
| • | Deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; |
| • | Risks related to originating and selling mortgages, including repurchase and indemnity demands, and related to U.S. Bancorp’s role as a loan servicer; |
| • | Impacts of current, pending or future litigation and governmental proceedings; |
| • | Increased competition from both banks and non-banks; |
| • | Effects of climate change and related physical and transition risks; |
| • | Changes in customer behavior and preferences and the ability to implement technological changes to respond to customer needs and meet competitive demands; |
| • | Breaches in data security; |
| • | Failures or disruptions in or breaches of U.S. Bancorp’s operational, technology or security systems or infrastructure, or those of third parties; |
| • | Failures to safeguard personal information; |
| • | Impacts of pandemics, including the COVID-19 pandemic, natural disasters, terrorist activities, civil unrest, international hostilities and geopolitical events; |
| • | Impacts of supply chain disruptions, rising inflation, slower growth or a recession; |
| • | Failure to execute on strategic or operational plans; |
| • | Effects of mergers and acquisitions and related integration; |
| • | Effects of critical accounting policies and judgments; |
| • | Effects of changes in or interpretations of tax laws and regulations; |
| • | Management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk; and |
| • | The risks and uncertainties more fully discussed in the section entitled “Risk Factors” of U.S. Bancorp’s Form 10-K for the year ended December 31, 2022, and subsequent filings with the Securities and Exchange Commission. |
2 |
U.S. Bancorp |
Table 1 |
Selected Financial Data |
| Three Months Ended March 31 | ||||||||||||
| (Dollars and Shares in Millions, Except Per Share Data) | 2023 | 2022 | Percent Change |
|||||||||
Condensed Income Statement |
||||||||||||
Net interest income |
$ | 4,634 | $ | 3,173 | 46.0 | % | ||||||
Taxable-equivalent adjustment (a) |
34 | 27 | 25.9 | |||||||||
Net interest income (taxable-equivalent basis) (b) |
4,668 | 3,200 | 45.9 | |||||||||
Noninterest income |
2,507 | 2,396 | 4.6 | |||||||||
Total net revenue |
7,175 | 5,596 | 28.2 | |||||||||
Noninterest expense |
4,555 | 3,502 | 30.1 | |||||||||
Provision for credit losses |
427 | 112 | * | |||||||||
Income before taxes |
2,193 | 1,982 | 10.6 | |||||||||
Income taxes and taxable-equivalent adjustment |
489 | 424 | 15.3 | |||||||||
Net income |
1,704 | 1,558 | 9.4 | |||||||||
Net (income) loss attributable to noncontrolling interests |
(6 | ) | (1 | ) | * | |||||||
Net income attributable to U.S. Bancorp |
$ | 1,698 | $ | 1,557 | 9.1 | |||||||
Net income applicable to U.S. Bancorp common shareholders |
$ | 1,592 | $ | 1,466 | 8.6 | |||||||
Per Common Share |
||||||||||||
Earnings per share |
$ | 1.04 | $ | .99 | 5.1 | % | ||||||
Diluted earnings per share |
1.04 | .99 | 5.1 | |||||||||
Dividends declared per share |
.48 | .46 | 4.3 | |||||||||
Book value per share (c) |
30.12 | 29.87 | .8 | |||||||||
Market value per share |
36.05 | 53.15 | (32.2 | ) | ||||||||
Average common shares outstanding |
1,532 | 1,485 | 3.2 | |||||||||
Average diluted common shares outstanding |
1,532 | 1,486 | 3.1 | |||||||||
Financial Ratios |
||||||||||||
Return on average assets |
1.03 | % | 1.09 | % | ||||||||
Return on average common equity |
14.1 | 12.7 | ||||||||||
Net interest margin (taxable-equivalent basis) (a) |
3.10 | 2.44 | ||||||||||
Efficiency ratio (b) |
63.2 | 62.8 | ||||||||||
Net charge-offs as a percent of average loans outstanding |
.39 | .21 | ||||||||||
Average Balances |
||||||||||||
Loans |
$ | 386,750 | $ | 312,966 | 23.6 | % | ||||||
Loans held for sale |
2,461 | 5,479 | (55.1 | ) | ||||||||
Investment securities (d) |
166,125 | 174,762 | (4.9 | ) | ||||||||
Earning assets |
607,614 | 529,837 | 14.7 | |||||||||
Assets |
665,447 | 577,402 | 15.2 | |||||||||
Noninterest-bearing deposits |
129,741 | 127,963 | 1.4 | |||||||||
Deposits |
510,324 | 454,176 | 12.4 | |||||||||
Short-term borrowings |
36,467 | 19,038 | 91.5 | |||||||||
Long-term debt |
41,024 | 32,972 | 24.4 | |||||||||
Total U.S. Bancorp shareholders’ equity |
52,667 | 53,466 | (1.5 | ) | ||||||||
| March 31, 2023 |
December 31, 2022 |
|||||||||||
Period End Balances |
||||||||||||
Loans |
$ | 387,866 | $ | 388,213 | (.1 | )% | ||||||
Investment securities |
153,953 | 161,650 | (4.8 | ) | ||||||||
Assets |
682,377 | 674,805 | 1.1 | |||||||||
Deposits |
505,339 | 524,976 | (3.7 | ) | ||||||||
Long-term debt |
42,045 | 39,829 | 5.6 | |||||||||
Total U.S. Bancorp shareholders’ equity |
52,989 | 50,766 | 4.4 | |||||||||
Asset Quality |
||||||||||||
Nonperforming assets |
$ | 1,181 | $ | 1,016 | 10.2 | % | ||||||
Allowance for credit losses |
7,523 | 7,404 | 1.6 | |||||||||
Allowance for credit losses as a percentage of period-end loans |
1.94 | % | 1.91 | % | ||||||||
Capital Ratios |
||||||||||||
Common equity tier 1 capital |
8.5 | % | 8.4 | % | ||||||||
Tier 1 capital |
10.0 | 9.8 | ||||||||||
Total risk-based capital |
12.1 | 11.9 | ||||||||||
Leverage |
7.5 | 7.9 | ||||||||||
Total leverage exposure |
6.1 | 6.4 | ||||||||||
Tangible common equity to tangible assets (b) |
4.8 | 4.5 | ||||||||||
Tangible common equity to risk-weighted assets (b) |
6.5 | 6.0 | ||||||||||
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (b) |
8.3 | 8.1 | ||||||||||
* |
Not meaningful |
(a) |
Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes. |
(b) |
See Non-GAAP Financial Measures beginning on page 31. |
(c) |
Calculated as U.S. Bancorp common shareholders’ equity divided by common shares outstanding at end of the period. |
(d) |
Excludes unrealized gains and losses on available-for-sale investment securities and any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity. |
| U.S. Bancorp | 3 |
| • | From the beginning of the industry disruption on March 8, 2023, through the end of the first quarter, total deposit balances were relatively stable, decreasing only 0.6 percent. |
| • | Subsequent to March 31, 2023 and through April 30, 2023, total deposit balances decreased approximately $17 billion, of which $10 billion was related to seasonal corporate trust fluctuations, and $3 billion was related to transitional MUB deposits. |
| • | At March 31, 2023, the Company’s percent of insured deposits to total deposits was approximately 51 percent, with approximately 80 percent of uninsured deposits comprised of operational wholesale trust and retail deposits, which tend to be more stable as customers are contractually bound or tied to treasury management services and trust activities provided to corporate and institutional clients. |
| • | At March 31, 2023, the Company’s total available liquidity was approximately $315 billion, representing approximately 126 percent of uninsured deposits. |
| • | Over the last five quarters, and well ahead of the recent banking industry disruption, the Company reduced its investment securities portfolio from approximately 30 percent to 25 percent of total assets, while increasing cash levels. |
4 |
U.S. Bancorp |
| U.S. Bancorp | 5 |
Table 2 |
Noninterest Income |
Three Months Ended March 31 |
||||||||||||
| (Dollars in Millions) | 2023 | 2022 | Percent Change |
|||||||||
Card revenue |
$ | 360 | $ | 338 | 6.5 | % | ||||||
Corporate payment products revenue |
189 | 158 | 19.6 | |||||||||
Merchant processing services |
387 | 363 | 6.6 | |||||||||
Trust and investment management fees |
590 | 500 | 18.0 | |||||||||
Service charges |
324 | 333 | (2.7 | ) | ||||||||
Commercial products revenue |
334 | 266 | 25.6 | |||||||||
Mortgage banking revenue |
128 | 200 | (36.0 | ) | ||||||||
Investment products fees |
68 | 62 | 9.7 | |||||||||
Securities gains (losses), net |
(32 | ) | 18 | * | ||||||||
Other |
159 | 158 | .6 | |||||||||
Total noninterest income |
$ | 2,507 | $ | 2,396 | 4.6 | % | ||||||
* |
Not meaningful |
6 |
U.S. Bancorp |
Table 3 |
Noninterest Expense |
| Three Months Ended March 31 |
||||||||||||
| (Dollars in Millions) | 2023 | 2022 | Percent Change |
|||||||||
Compensation and employee benefits |
$ | 2,646 | $ | 2,249 | 17.7 | % | ||||||
Net occupancy and equipment |
321 | 269 | 19.3 | |||||||||
Professional services |
134 | 114 | 17.5 | |||||||||
Marketing and business development |
122 | 80 | 52.5 | |||||||||
Technology and communications |
503 | 421 | 19.5 | |||||||||
Other intangibles |
160 | 47 | * | |||||||||
Other |
425 | 322 | 32.0 | |||||||||
Total before merger and integration charges |
4,311 | 3,502 | 23.1 | |||||||||
Merger and integration charges |
244 | — | * | |||||||||
Total noninterest expense |
$ | 4,555 | $ | 3,502 | 30.1 | % | ||||||
Efficiency ratio (a) |
63.2 | % | 62.8 | % | ||||||||
* |
Not meaningful |
(a) |
See Non-GAAP Financial Measures beginning on page 31. |
| U.S. Bancorp | 7 |
Table 4 |
Investment Securities |
| March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||
| (Dollars in Millions) | Amortized Cost |
Fair Value | Weighted- Average Maturity in Years |
Weighted- Average Yield (d) |
Amortized Cost |
Fair Value | Weighted- Average Maturity in Years |
Weighted- Average Yield (d) |
||||||||||||||||||||||||
Held-to-maturity |
||||||||||||||||||||||||||||||||
U.S. Treasury and agencies |
$ | 1,344 | $ | 1,307 | 3.0 | 2.85 | % | $ | 1,344 | $ | 1,293 | 3.3 | 2.85 | % | ||||||||||||||||||
Mortgage-backed securities (a) |
87,118 | 77,569 | 9.0 | 2.23 | 87,396 | 76,581 | 9.3 | 2.17 | ||||||||||||||||||||||||
Total held-to-maturity |
$ | 88,462 | $ | 78,876 | 8.9 | 2.24 | % | $ | 88,740 | $ | 77,874 | 9.2 | 2.18 | % | ||||||||||||||||||
Available-for-sale |
||||||||||||||||||||||||||||||||
U.S. Treasury and agencies |
$ | 20,421 | $ | 18,054 | 6.7 | 1.92 | % | $ | 24,801 | $ | 22,033 | 7.1 | 2.43 | % | ||||||||||||||||||
Mortgage-backed securities (a) |
37,201 | 33,452 | 6.5 | 2.83 | 40,803 | 36,423 | 6.6 | 2.83 | ||||||||||||||||||||||||
Asset-backed securities (a) |
3,836 | 3,807 | 1.2 | 4.72 | 4,356 | 4,323 | 1.3 | 4.59 | ||||||||||||||||||||||||
Obligations of state and political subdivisions (b) (c) |
11,234 | 10,174 | 10.8 | 3.74 | 11,484 | 10,125 | 13.6 | 3.76 | ||||||||||||||||||||||||
Other |
4 | 4 | 2.2 | 1.89 | 6 | 6 | .1 | 1.99 | ||||||||||||||||||||||||
Total available-for-sale |
$ | 72,696 | $ | 65,491 | 7.0 | 2.82 | % | $ | 81,450 | $ | 72,910 | 7.4 | 2.94 | % | ||||||||||||||||||
(a) |
Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments. |
(b) |
Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount. |
(c) |
Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par. |
(d) |
Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. Yields on investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity. |
8 |
U.S. Bancorp |
| U.S. Bancorp | 9 |
| • | Macroeconomic environment and other qualitative considerations, such as regulatory and compliance changes, litigation developments, geopolitical events, and technology and cybersecurity; |
| • | Credit measures, including adversely rated and nonperforming loans, leveraged transactions, credit concentrations and lending limits; |
| • | Interest rate and market risk, including market value and net income simulation, and trading-related Value at Risk (“VaR”); |
| • | Liquidity risk, including funding projections under various stressed scenarios; |
| • | Operational and compliance risk, including losses stemming from events such as fraud, processing errors, control breaches, breaches in data security or adverse business decisions, as well as reporting on technology performance, and various legal and regulatory compliance measures; |
| • | Capital ratios and projections, including regulatory measures and stressed scenarios; and |
| • | Strategic and reputation risk considerations, impacts and responses. |
10 |
U.S. Bancorp |
| U.S. Bancorp | 11 |
Residential Mortgages (Dollars in Millions) |
Interest Only |
Amortizing | Total | Percent of Total |
||||||||||||
Loan-to-Value |
||||||||||||||||
Less than or equal to 80% |
$ | 14,674 | $ | 79,946 | $ | 94,620 | 80.9 | % | ||||||||
Over 80% through 90% |
772 | 10,873 | 11,645 | 10.0 | ||||||||||||
Over 90% through 100% |
116 | 2,063 | 2,179 | 1.9 | ||||||||||||
Over 100% |
177 | 1,112 | 1,289 | 1.1 | ||||||||||||
No LTV available |
— | 10 | 10 | — | ||||||||||||
Loans purchased from GNMA mortgage pools (a) |
— | 7,205 | 7,205 | 6.1 | ||||||||||||
Total |
$ | 15,739 | $ | 101,209 | $ | 116,948 | 100.0 | % | ||||||||
(a) |
Represents loans purchased and loans that could be purchased from Government National Mortgage Association (“GNMA”) mortgage pools under delinquent loan repurchase options whose payments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. |
| Home Equity and Second Mortgages (Dollars in Millions) |
Lines | Loans | Total | Percent of Total |
||||||||||||
Loan-to-Value / Combined Loan-to-Value |
||||||||||||||||
Less than or equal to 80% |
$ | 10,156 | $ | 1,420 | $ | 11,576 | 91.0 | % | ||||||||
Over 80% through 90% |
796 | 114 | 910 | 7.2 | ||||||||||||
Over 90% through 100% |
108 | 18 | 126 | 1.0 | ||||||||||||
Over 100% |
50 | 13 | 63 | .5 | ||||||||||||
No LTV/CLTV available |
43 | 2 | 45 | .3 | ||||||||||||
Total |
$ | 11,153 | $ | 1,567 | $ | 12,720 | 100.0 | % | ||||||||
| Junior Liens Behind | ||||||||||||
| (Dollars in Millions) | Company Owned or Serviced` First Lien |
Third Party First Lien |
Total | |||||||||
Total |
$ | 3,305 | $ | 6,795 | $ | 10,100 | ||||||
Percent 30 — 89 days past due |
.50 | % | .44 | % | .46 | % | ||||||
Percent 90 days or more past due |
.02 | % | .07 | % | .05 | % | ||||||
Weighted-average CLTV |
70 | % | 68 | % | 69 | % | ||||||
Weighted-average credit score |
781 | 782 | 781 | |||||||||
| Percent of Total (a) |
||||
Credit score > 660 |
86 | % | ||
Credit score < 660 |
14 | |||
No credit score |
— | |||
(a) |
Credit score distribution excludes loans serviced by others. |
12 |
U.S. Bancorp |
Table 5 |
Delinquent Loan Ratios as a Percent of Ending Loan Balances |
90 days or more past due |
March 31, 2023 |
December 31, 2022 |
||||||
Commercial |
||||||||
Commercial |
.05 | % | .07 | % | ||||
Lease financing |
— | — | ||||||
Total commercial |
.05 | .07 | ||||||
Commercial Real Estate |
||||||||
Commercial mortgages |
.01 | — | ||||||
Construction and development |
.01 | .03 | ||||||
Total commercial real estate |
.01 | .01 | ||||||
Residential Mortgages (a) |
.08 | .08 | ||||||
Credit Card |
1.00 | .88 | ||||||
Other Retail |
||||||||
Retail leasing |
.04 | .04 | ||||||
Home equity and second mortgages |
.29 | .28 | ||||||
Other |
.07 | .08 | ||||||
Total other retail |
.12 | .12 | ||||||
Total loans |
.13 | % | .13 | % | ||||
| 90 days or more past due and nonperforming loans | March 31, 2023 |
December 31, 2022 |
||||||
Commercial |
.18 | % | .19 | % | ||||
Commercial real estate |
.98 | .62 | ||||||
Residential mortgages (a) |
.33 | .36 | ||||||
Credit card |
1.01 | .88 | ||||||
Other retail |
.37 | .37 | ||||||
Total loans |
.42 | % | .38 | % | ||||
(a) |
Delinquent loan ratios exclude $2.2 billion at March 31, 2023, and at December 31, 2022, of loans purchased and loans that could be purchased from GNMA mortgage pools under delinquent loan repurchase options whose repayments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. Including these loans, the ratio of residential mortgages 90 days or more past due and nonperforming to total residential mortgages was 2.24 percent at March 31, 2023, and 2.28 percent at December 31, 2022. |
| U.S. Bancorp | 13 |
| Amount | As a Percent of Ending Loan Balances |
|||||||||||||||||||
| (Dollars in Millions) | March 31, 2023 |
December 31, 2022 |
March 31, 2023 |
December 31, 2022 |
||||||||||||||||
Residential Mortgages (a) |
||||||||||||||||||||
30-89 days |
$ | 148 | $ | 201 | .13 | % | .17 | % | ||||||||||||
90 days or more |
97 | 95 | .08 | .08 | ||||||||||||||||
Nonperforming |
292 | 325 | .25 | .28 | ||||||||||||||||
Total |
$ | 537 | $ | 621 | .46 | .54 | ||||||||||||||
Credit Card |
||||||||||||||||||||
30-89 days |
$ | 280 | $ | 283 | 1.10 | 1.08 | ||||||||||||||
90 days or more |
256 | 231 | 1.00 | .88 | ||||||||||||||||
Nonperforming |
1 | 1 | — | — | ||||||||||||||||
Total |
$ | 537 | $ | 515 | 2.11 | 1.96 | ||||||||||||||
Other Retail |
||||||||||||||||||||
Retail Leasing |
||||||||||||||||||||
30-89 days |
$ | 22 | $ | 27 | .44 | .49 | ||||||||||||||
90 days or more |
2 | 2 | .04 | .04 | ||||||||||||||||
Nonperforming |
8 | 8 | .16 | .14 | ||||||||||||||||
Total |
$ | 32 | $ | 37 | .64 | .67 | ||||||||||||||
Home Equity and Second Mortgages |
||||||||||||||||||||
30-89 days |
$ | 65 | $ | 65 | .51 | .51 | ||||||||||||||
90 days or more |
37 | 36 | .29 | .28 | ||||||||||||||||
Nonperforming |
105 | 110 | .83 | .86 | ||||||||||||||||
Total |
$ | 207 | $ | 211 | 1.63 | 1.64 | ||||||||||||||
Other (b) |
||||||||||||||||||||
30-89 days |
$ | 167 | $ | 217 | .47 | .59 | ||||||||||||||
90 days or more |
25 | 28 | .07 | .08 | ||||||||||||||||
Nonperforming |
20 | 21 | .06 | .06 | ||||||||||||||||
Total |
$ | 212 | $ | 266 | .60 | .73 | ||||||||||||||
(a) |
Excludes $542 million of loans 30-89 days past due and $2.2 billion of loans 90 days or more past due at March 31, 2023, purchased and that could be purchased from GNMA mortgage pools under delinquent loan repurchase options that continue to accrue interest, compared with $647 million and $2.2 billion at December 31, 2022, respectively. |
(b) |
Includes revolving credit, installment and automobile loans. |
14 |
U.S. Bancorp |
| U.S. Bancorp | 15 |
Table 6 |
Nonperforming Assets (a) |
| (Dollars in Millions) | 2023 |
December 31, 2022 |
||||||
Commercial |
||||||||
Commercial |
$150 | $139 | ||||||
Lease financing |
28 | 30 | ||||||
Total commercial |
178 | 169 | ||||||
Commercial Real Estate |
||||||||
Commercial mortgages |
432 | 251 | ||||||
Construction and development |
103 | 87 | ||||||
Total commercial real estate |
535 | 338 | ||||||
Residential Mortgages (b) |
292 | 325 | ||||||
Credit Card |
1 | 1 | ||||||
Other Retail |
||||||||
Retail leasing |
8 | 8 | ||||||
Home equity and second mortgages |
105 | 110 | ||||||
Other |
20 | 21 | ||||||
Total other retail |
133 | 139 | ||||||
Total nonperforming loans (1) |
1,139 | 972 | ||||||
Other Real Estate (c) |
23 | 23 | ||||||
Other Assets |
19 | 21 | ||||||
Total nonperforming assets |
$1,181 | $1,016 | ||||||
Accruing loans 90 days or more past due (b) |
$494 | $491 | ||||||
Period-end loans (2) |
$387,866 | $388,213 | ||||||
Nonperforming loans to total loans (1)/(2) |
.29 | % | .25 | % | ||||
Nonperforming assets to total loans plus other real estate (c) |
.30 | % | .26 | % | ||||
| (Dollars in Millions) | Commercial and Commercial Real Estate |
Residential Mortgages, Credit Card and Other Retail |
Total | |||||||||
Balance December 31, 2022 |
$ | 509 | $ | 507 | $ | 1,016 | ||||||
Additions to nonperforming assets |
||||||||||||
New nonaccrual loans and foreclosed properties |
270 | 39 | 309 | |||||||||
Advances on loans |
6 | — | 6 | |||||||||
Total additions |
276 | 39 | 315 | |||||||||
Reductions in nonperforming assets |
||||||||||||
Paydowns, payoffs |
(30 | ) | (25 | ) | (55 | ) | ||||||
Net sales |
— | (7 | ) | (7 | ) | |||||||
Return to performing status |
(9 | ) | (45 | ) | (54 | ) | ||||||
Charge-offs (d) |
(32 | ) | (2 | ) | (34 | ) | ||||||
Total reductions |
(71 | ) | (79 | ) | (150 | ) | ||||||
Net additions to (reductions in) nonperforming assets |
205 | (40 | ) | 165 | ||||||||
Balance March 31, 2023 |
$ | 714 | $ | 467 | $ | 1,181 | ||||||
(a) |
Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due. |
(b) |
Excludes $2.2 billion at March 31, 2023, and at December 31, 2022, of loans purchased and loans that could be purchased from GNMA Mortgage pools under delinquent loan repurchase options that are 90 days or more past due that continue to accrue interest, as their repayments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. |
(c) |
Foreclosed GNMA loans of $57 million at March 31, 2023, and $53 million at December 31, 2022, continue to accrue interest and are recorded as other assets and excluded from nonperforming assets because they are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. |
(d) |
Charge-offs exclude actions for certain card products and loan sales that were not classified as nonperforming at the time the charge-off occurred. |
16 |
U.S. Bancorp |
Table 7 |
Net Charge-offs as a Percent of Average Loans Outstanding |
| Three Months Ended March 31 | ||||||||||||||||||||||||||||
| 2023 | 2022 | |||||||||||||||||||||||||||
| (Dollars in Millions) | Average Loan Balance |
Net Charge-offs |
Percent | Average Loan Balance |
Net Charge-offs |
Percent | ||||||||||||||||||||||
Commercial |
||||||||||||||||||||||||||||
Commercial |
$ | 131,227 | $ | 42 | .13 | % | $ | 107,819 | $ | 26 | .10 | % | ||||||||||||||||
Lease financing |
4,456 | 5 | .46 | 5,003 | 6 | .49 | ||||||||||||||||||||||
Total commercial |
135,683 | 47 | .14 | 112,822 | 32 | .12 | ||||||||||||||||||||||
Commercial real estate |
||||||||||||||||||||||||||||
Commercial mortgages |
43,627 | 115 | 1.07 | 28,826 | — | — | ||||||||||||||||||||||
Construction |
11,968 | 2 | .07 | 10,258 | (5 | ) | (.20 | ) | ||||||||||||||||||||
Total commercial real estate |
55,595 | 117 | .85 | 39,084 | (5 | ) | (.05 | ) | ||||||||||||||||||||
Residential mortgages |
116,287 | (1 | ) | — | 77,449 | (6 | ) | (.03 | ) | |||||||||||||||||||
Credit card |
25,569 | 175 | 2.78 | 21,842 | 112 | 2.08 | ||||||||||||||||||||||
Other retail |
||||||||||||||||||||||||||||
Retail leasing |
5,241 | 1 | .08 | 7,110 | 1 | .06 | ||||||||||||||||||||||
Home equity and second mortgages |
12,774 | (1 | ) | (.03 | ) | 10,394 | (2 | ) | (.08 | ) | ||||||||||||||||||
Other |
35,601 | 35 | .40 | 44,265 | 30 | .27 | ||||||||||||||||||||||
Total other retail |
53,616 | 35 | .26 | 61,769 | 29 | .19 | ||||||||||||||||||||||
Total loans |
$ | 386,750 | $ | 373 | .39 | % | $ | 312,966 | $ | 162 | .21 | % | ||||||||||||||||
| U.S. Bancorp | 17 |
18 |
U.S. Bancorp |
2023 |
2022 |
|||||||
United States unemployment rate for the three months ending (a) |
||||||||
| 3.4 | % | 3.8 | % | |||||
| 3.7 | 4.2 | |||||||
United States real gross domestic product for the three months ending (b) |
||||||||
| 1.3 | % | 1.8 | % | |||||
| 1.1 | 1.0 | |||||||
(a) |
Reflects quarterly average of forecasted reported United States unemployment rate. |
(b) |
Reflects year-over-year growth rates. |
| U.S. Bancorp | 19 |
Table 8 |
Summary of Allowance for Credit Losses |
| Three Months Ended | ||||||||
| March 31 | ||||||||
| (Dollars in Millions) | 2023 | 2022 | ||||||
Balance at beginning of period |
$ | 7,404 | $ | 6,155 | ||||
Change in accounting principle (a) |
(62 | ) | — | |||||
Allowance for acquired credit losses (b) |
127 | — | ||||||
Charge-Offs |
||||||||
Commercial |
||||||||
Commercial |
56 | 47 | ||||||
Lease financing |
7 | 8 | ||||||
Total commercial |
63 | 55 | ||||||
Commercial real estate |
||||||||
Commercial mortgages |
121 | — | ||||||
Construction and development |
2 | 1 | ||||||
Total commercial real estate |
123 | 1 | ||||||
Residential mortgages |
4 | 5 | ||||||
Credit card |
215 | 158 | ||||||
Other retail |
||||||||
Retail leasing |
5 | 5 | ||||||
Home equity and second mortgages |
2 | 3 | ||||||
Other |
57 | 53 | ||||||
Total other retail |
64 | 61 | ||||||
Total charge-offs |
469 | 280 | ||||||
Recoveries |
||||||||
Commercial |
||||||||
Commercial |
14 | 21 | ||||||
Lease financing |
2 | 2 | ||||||
Total commercial |
16 | 23 | ||||||
Commercial real estate |
||||||||
Commercial mortgages |
6 | — | ||||||
Construction and development |
— | 6 | ||||||
Total commercial real estate |
6 | 6 | ||||||
Residential mortgages |
5 | 11 | ||||||
Credit card |
40 | 46 | ||||||
Other retail |
||||||||
Retail leasing |
4 | 4 | ||||||
Home equity and second mortgages |
3 | 5 | ||||||
Other |
22 | 23 | ||||||
Total other retail |
29 | 32 | ||||||
Total recoveries |
96 | 118 | ||||||
Net Charge-Offs |
||||||||
Commercial |
||||||||
Commercial |
42 | 26 | ||||||
Lease financing |
5 | 6 | ||||||
Total commercial |
47 | 32 | ||||||
Commercial real estate |
||||||||
Commercial mortgages |
115 | — | ||||||
Construction and development |
2 | (5 | ) | |||||
Total commercial real estate |
117 | (5 | ) | |||||
Residential mortgages |
(1 | ) | (6 | ) | ||||
Credit card |
175 | 112 | ||||||
Other retail |
||||||||
Retail leasing |
1 | 1 | ||||||
Home equity and second mortgages |
(1 | ) | (2 | ) | ||||
Other |
35 | 30 | ||||||
Total other retail |
35 | 29 | ||||||
Total net charge-offs |
373 | 162 | ||||||
Provision for credit losses |
427 | 112 | ||||||
Balance at end of period |
$ | 7,523 | $ | 6,105 | ||||
Components |
||||||||
Allowance for loan losses |
$ | 7,020 | $ | 5,664 | ||||
Liability for unfunded credit commitments |
503 | 441 | ||||||
Total allowance for credit losses (1) |
$ | 7,523 | $ | 6,105 | ||||
Period-end loans (2) |
$ | 387,866 | $ | 318,934 | ||||
Nonperforming loans (3) |
1,139 | 765 | ||||||
Allowance for Credit Losses as a Percentage of |
||||||||
Period-end loans (1)/(2) |
1.94 | % | 1.91 | % | ||||
Nonperforming loans (1)/(3) |
660 | 798 | ||||||
Nonperforming and accruing loans 90 days or more past due |
461 | 502 | ||||||
Nonperforming assets |
637 | 753 | ||||||
Net charge-offs |
497 | 929 | ||||||
(a) |
Effective January 1, 2023, the Company adopted accounting guidance which removed the separate recognition and measurement of troubled debt restructurings. |
(b) |
Allowance for purchased credit deteriorated and charged-off loans acquired from MUB. |
20 |
U.S. Bancorp |
| U.S. Bancorp | 21 |
Table 9 |
Sensitivity of Net Interest Income |
| March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||
Down 50 bps Immediate |
Up 50 bps Immediate |
Down 200 bps Gradual |
Up 200 bps Gradual |
Down 50 bps Immediate |
Up 50 bps Immediate |
Down 200 bps Gradual |
Up 200 bps Gradual |
|||||||||||||||||||||||||
Net interest income |
(.83 | )% | 1.10 | % | (2.01 | )% | 2.54 | % | (.58 | )% | .95 | % | (2.02 | )% | 1.44 | % | ||||||||||||||||
| • | To convert fixed-rate debt and available-for-sale investment securities from fixed-rate payments to floating-rate payments; |
| • | To convert floating-rate loans and debt from floating-rate payments to fixed-rate payments; |
| • | To mitigate changes in value of the Company’s unfunded mortgage loan commitments, funded MLHFS and MSRs; |
| • | To mitigate remeasurement volatility of foreign currency denominated balances; and |
| • | To mitigate the volatility of the Company’s net investment in foreign operations driven by fluctuations in foreign currency exchange rates. |
22 |
U.S. Bancorp |
| U.S. Bancorp | 23 |
Three Months Ended March 31 (Dollars in Millions) |
2023 | 2022 | ||||||
Average |
$ | 5 | $ | 2 | ||||
High |
6 | 2 | ||||||
Low |
4 | 1 | ||||||
Period-end |
5 | 2 | ||||||
Three Months Ended March 31 (Dollars in Millions) |
2023 | 2022 | ||||||
Average |
$ | 12 | $ | 7 | ||||
High |
16 | 8 | ||||||
Low |
10 | 6 | ||||||
Period-end |
14 | 7 | ||||||
24 |
U.S. Bancorp |
Three Months Ended March 31 (Dollars in Millions) |
2023 | 2022 | ||||||
Residential Mortgage Loans Held For Sale and Related Hedges |
||||||||
Average |
$ | 1 | $ | 2 | ||||
High |
1 | 5 | ||||||
Low |
— | 1 | ||||||
Mortgage Servicing Rights and Related Hedges |
||||||||
Average |
$ | 8 | $ | 6 | ||||
High |
12 | 13 | ||||||
Low |
4 | 3 | ||||||
| (Dollars in millions) | March 31, 2023 |
December 31, 2022 |
||||||
Cash held at the Federal Reserve Bank and other central banks |
$ | 58,137 | $ | 45,171 | ||||
Available investment securities |
45,464 | 132,052 | ||||||
Borrowing capacity from the Federal Reserve Bank and FHLB |
211,399 | 125,682 | ||||||
Total available liquidity |
$ | 315,000 | $ | 302,905 | ||||
| U.S. Bancorp | 25 |
26 |
U.S. Bancorp |
Table 10 |
Regulatory Capital Ratios |
| (Dollars in Millions) | March 31, 2023 |
December 31, 2022 |
||||||
Basel III standardized approach: |
||||||||
Common equity tier 1 capital |
$ | 42,027 | $ | 41,560 | ||||
Tier 1 capital |
49,278 | 48,813 | ||||||
Total risk-based capital |
59,920 | 59,015 | ||||||
Risk-weighted assets |
494,048 | 496,500 | ||||||
Common equity tier 1 capital as a percent of risk-weighted assets (a) |
8.5 | % | 8.4 | % | ||||
Tier 1 capital as a percent of risk-weighted assets |
10.0 | 9.8 | ||||||
Total risk-based capital as a percent of risk-weighted assets |
12.1 | 11.9 | ||||||
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) |
7.5 | 7.9 | ||||||
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure ratio) |
6.1 | 6.4 | ||||||
(a) |
The Company’s common equity tier 1 capital to risk-weighted assets ratio, reflecting the full implementation of the CECL methodology, was 8.3 percent at March 31, 2023, compared with 8.1 percent at December 31, 2022. |
| U.S. Bancorp | 27 |
| Period | Total Number of Shares Purchased |
Average Price Paid Per Share |
Total Number of Shares Purchased as Part of Publicly Announced Program |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (In Millions) |
||||||||||||
January |
159,106 | (a) | $ | 48.30 | 9,106 | $ | 1,375 | |||||||||
February |
372,464 | 48.76 | 372,464 | 1,357 | ||||||||||||
March |
1,462,568 | (b) | 40.31 | 552,568 | 1,331 | |||||||||||
Total |
1,994,138 | (c) | $ | 42.53 | 934,138 | $ | 1,331 | |||||||||
(a) |
Includes 150,000 shares of common stock purchased, at an average price per share of $48.35, in open-market transactions by U.S. Bank National Association, the Company’s primary banking subsidiary, in its capacity as trustee of the U.S. Bank 401(k) Savings Plan, which is the Company’s employee retirement savings plan. |
(b) |
Includes shares of common stock purchased, at an average price per share of $36.43, in open-market transactions by U.S. Bank National Association in its capacity as trustee of the U.S. Bank 401(k) Savings Plan. |
(c) |
Includes 1,060,000 shares of common stock purchased, at an average price per share of $38.12, in open-market transactions by U.S. Bank National Association in its capacity as trustee of the U.S. Bank 401(k) Savings Plan. |
28 |
U.S. Bancorp |
Table 11 |
Line of Business Financial Performance |
Corporate and Commercial Banking |
Consumer and Business Banking |
Wealth Management and Investment Services |
||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31 (Dollars in Millions) |
2023 | 2022 | Percent Change |
2023 | 2022 | Percent Change |
2023 | 2022 | Percent Change |
|||||||||||||||||||||||||||||||||||||||
Condensed Income Statement |
||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (taxable-equivalent basis) |
$ | 1,081 | $ | 746 | 44.9 | % | $ | 2,315 | $ | 1,500 | 54.3 | % | $ | 488 | $ | 276 | 76.8 | % | ||||||||||||||||||||||||||||||
Noninterest income |
309 | 247 | 25.1 | 397 | 454 | (12.6 | ) | 700 | 595 | 17.6 | ||||||||||||||||||||||||||||||||||||||
Total net revenue |
1,390 | 993 | 40.0 | 2,712 | 1,954 | 38.8 | 1,188 | 871 | 36.4 | |||||||||||||||||||||||||||||||||||||||
Noninterest expense |
613 | 444 | 38.1 | 1,776 | 1,398 | 27.0 | 668 | 558 | 19.7 | |||||||||||||||||||||||||||||||||||||||
Income (loss) before provision and income taxes |
777 | 549 | 41.5 | 936 | 556 | 68.3 | 520 | 313 | 66.1 | |||||||||||||||||||||||||||||||||||||||
Provision for credit losses |
3 | 5 | (40.0 | ) | 13 | 48 | (72.9 | ) | (12 | ) | 8 | * | ||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes |
774 | 544 | 42.3 | 923 | 508 | 81.7 | 532 | 305 | 74.4 | |||||||||||||||||||||||||||||||||||||||
Income taxes and taxable-equivalent adjustment |
194 | 136 | 42.6 | 231 | 126 | 83.3 | 133 | 76 | 75.0 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) |
580 | 408 | 42.2 | 692 | 382 | 81.2 | 399 | 229 | 74.2 | |||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to U.S. Bancorp |
$ | 580 | $ | 408 | 42.2 | $ | 692 | $ | 382 | 81.2 | $ | 399 | $ | 229 | 74.2 | |||||||||||||||||||||||||||||||||
Average Balance Sheet |
||||||||||||||||||||||||||||||||||||||||||||||||
Loans |
$ | 150,436 | $ | 115,867 | 29.8 | $ | 170,132 | $ | 140,429 | 21.2 | $ | 24,335 | $ | 20,707 | 17.5 | |||||||||||||||||||||||||||||||||
Goodwill |
2,824 | 1,912 | 47.7 | 4,491 | 3,261 | 37.7 | 1,787 | 1,761 | 1.5 | |||||||||||||||||||||||||||||||||||||||
Other intangible assets |
592 | 4 | * | 5,594 | 3,176 | 76.1 | 442 | 265 | 66.8 | |||||||||||||||||||||||||||||||||||||||
Assets |
170,976 | 127,891 | 33.7 | 187,860 | 156,953 | 19.7 | 28,625 | 24,421 | 17.2 | |||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits |
58,447 | 63,010 | (7.2 | ) | 43,496 | 31,265 | 39.1 | 21,896 | 27,429 | (20.2 | ) | |||||||||||||||||||||||||||||||||||||
Interest-bearing deposits |
105,011 | 87,010 | 20.7 | 185,400 | 165,885 | 11.8 | 83,619 | 70,402 | 18.8 | |||||||||||||||||||||||||||||||||||||||
Total deposits |
163,458 | 150,020 | 9.0 | 228,896 | 197,150 | 16.1 | 105,515 | 97,831 | 7.9 | |||||||||||||||||||||||||||||||||||||||
Total U.S. Bancorp shareholders’ equity |
17,350 | 13,729 | 26.4 | 16,704 | 12,214 | 36.8 | 4,106 | 3,593 | 14.3 | |||||||||||||||||||||||||||||||||||||||
Payment Services |
Treasury and Corporate Support |
Consolidated Company |
||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31 (Dollars in Millions) |
2023 | 2022 | Percent Change |
2023 | 2022 | Percent Change |
2023 | 2022 | Percent Change |
|||||||||||||||||||||||||||||||||||||||
Condensed Income Statement |
||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (taxable-equivalent basis) |
$ | 651 | $ | 622 | 4.7 | % | $ | 133 | $ | 56 | * | % | $ | 4,668 | $ | 3,200 | 45.9 | % | ||||||||||||||||||||||||||||||
Noninterest income |
937 | 857 | 9.3 | 164 | 243 | (32.5 | ) | 2,507 | 2,396 | 4.6 | ||||||||||||||||||||||||||||||||||||||
Total net revenue |
1,588 | 1,479 | 7.4 | 297 | 299 | (.7 | ) | 7,175 | 5,596 | 28.2 | ||||||||||||||||||||||||||||||||||||||
Noninterest expense |
915 | 849 | 7.8 | 583 | 253 | * | 4,555 | 3,502 | 30.1 | |||||||||||||||||||||||||||||||||||||||
Income (loss) before provision and income taxes |
673 | 630 | 6.8 | (286 | ) | 46 | * | 2,620 | 2,094 | 25.1 | ||||||||||||||||||||||||||||||||||||||
Provision for credit losses |
226 | 130 | 73.8 | 197 | (79 | ) | * | 427 | 112 | * | ||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes |
447 | 500 | (10.6 | ) | (483 | ) | 125 | * | 2,193 | 1,982 | 10.6 | |||||||||||||||||||||||||||||||||||||
Income taxes and taxable-equivalent adjustment |
112 | 125 | (10.4 | ) | (181 | ) | (39 | ) | * | 489 | 424 | 15.3 | ||||||||||||||||||||||||||||||||||||
Net income (loss) |
335 | 375 | (10.7 | ) | (302 | ) | 164 | * | 1,704 | 1,558 | 9.4 | |||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests |
— | — | — | (6 | ) | (1 | ) | * | (6 | ) | (1 | ) | * | |||||||||||||||||||||||||||||||||||
Net income (loss) attributable to U.S. Bancorp |
$ | 335 | $ | 375 | (10.7 | ) | $ | (308 | ) | $ | 163 | * | $ | 1,698 | $ | 1,557 | 9.1 | |||||||||||||||||||||||||||||||
Average Balance Sheet |
||||||||||||||||||||||||||||||||||||||||||||||||
Loans |
$ | 36,935 | $ | 31,740 | 16.4 | $ | 4,912 | $ | 4,223 | 16.3 | $ | 386,750 | $ | 312,966 | 23.6 | |||||||||||||||||||||||||||||||||
Goodwill |
3,320 | 3,325 | (.2 | ) | — | — | — | 12,422 | 10,259 | 21.1 | ||||||||||||||||||||||||||||||||||||||
Other intangible assets |
385 | 464 | (17.0 | ) | 36 | — | * | 7,049 | 3,909 | 80.3 | ||||||||||||||||||||||||||||||||||||||
Assets |
42,860 | 38,499 | 11.3 | 235,126 | 229,638 | 2.4 | 665,447 | 577,402 | 15.2 | |||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits |
3,184 | 3,673 | (13.3 | ) | 2,718 | 2,586 | 5.1 | 129,741 | 127,963 | 1.4 | ||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits |
108 | 160 | (32.5 | ) | 6,445 | 2,756 | * | 380,583 | 326,213 | 16.7 | ||||||||||||||||||||||||||||||||||||||
Total deposits |
3,292 | 3,833 | (14.1 | ) | 9,163 | 5,342 | 71.5 | 510,324 | 454,176 | 12.4 | ||||||||||||||||||||||||||||||||||||||
Total U.S. Bancorp shareholders’ equity |
8,968 | 8,017 | 11.9 | 5,539 | 15,913 | (65.2 | ) | 52,667 | 53,466 | (1.5 | ) | |||||||||||||||||||||||||||||||||||||
* |
Not meaningful |
| U.S. Bancorp | 29 |
30 |
U.S. Bancorp |
| • | Tangible common equity to tangible assets, |
| • | Tangible common equity to risk-weighted assets, and |
| • | Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the CECL methodology. |
| U.S. Bancorp | 31 |
| (Dollars in Millions) | March 31, 2023 |
December 31, 2022 |
||||||
Total equity |
$ | 53,454 | $ | 51,232 | ||||
Preferred stock |
(6,808 | ) | (6,808 | ) | ||||
Noncontrolling interests |
(465 | ) | (466 | ) | ||||
Goodwill (net of deferred tax liability) (1) |
(11,575 | ) | (11,395 | ) | ||||
Intangible assets (net of deferred tax liability), other than mortgage servicing rights |
(2,611 | ) | (2,792 | ) | ||||
Tangible common equity (a) |
31,995 | 29,771 | ||||||
Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements related to the CECL methodology implementation |
42,027 | 41,560 | ||||||
Adjustments (2) |
(866 | ) | (1,299 | ) | ||||
Common equity tier 1 capital, reflecting the full implementation of the CECL methodology (b) |
41,161 | 40,261 | ||||||
Total assets |
682,377 | 674,805 | ||||||
Goodwill (net of deferred tax liability) (1) |
(11,575 | ) | (11,395 | ) | ||||
Intangible assets (net of deferred tax liability), other than mortgage servicing rights |
(2,611 | ) | (2,792 | ) | ||||
Tangible assets (c) |
668,191 | 660,618 | ||||||
Risk-weighted assets, determined in accordance with prescribed regulatory capital requirements effective for the Company (d) |
494,048 | 496,500 | ||||||
Adjustments (3) |
(735 | ) | (620 | ) | ||||
Risk-weighted assets, reflecting the full implementation of the CECL methodology (e) |
493,313 | 495,880 | ||||||
Ratios |
||||||||
Tangible common equity to tangible assets (a)/(c) |
4.8 | % | 4.5 | % | ||||
Tangible common equity to risk-weighted assets (a)/(d) |
6.5 | 6.0 | ||||||
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the CECL methodology (b)/(e) |
8.3 | 8.1 | ||||||
| Three Months Ended March 31 |
||||||||
| 2023 | 2022 | |||||||
Net interest income |
$ | 4,634 | $ | 3,173 | ||||
Taxable-equivalent adjustment (4) |
34 | 27 | ||||||
Net interest income, on a taxable-equivalent basis |
4,668 | 3,200 | ||||||
Net interest income, on a taxable-equivalent basis (as calculated above) |
4,668 | 3,200 | ||||||
Noninterest income |
2,507 | 2,396 | ||||||
Less: Securities gains (losses), net |
(32 | ) | 18 | |||||
Total net revenue, excluding net securities gains (losses) (f) |
7,207 | 5,578 | ||||||
Noninterest expense (g) |
4,555 | 3,502 | ||||||
Efficiency ratio (g)/(f) |
63.2 | % | 62.8 | % | ||||
Net charge-offs |
$ | 373 | ||||||
Less: Notable items (5) |
91 | |||||||
Net charge-offs, excluding notable items |
282 | |||||||
Annualized net charge-offs, excluding notable items (h) |
1,144 | |||||||
Average loan balances (i) |
386,750 | |||||||
Net charge-off ratio, excluding notable items (h)/(i) |
.30 | % | ||||||
(1) |
Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements. |
(2) |
Includes the estimated increase in the allowance for credit losses related to the adoption of the CECL methodology net of deferred taxes. |
(3) |
Includes the impact of the estimated increase in the allowance for credit losses related to the adoption of the CECL methodology. |
(4) |
Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes. |
(5) |
Notable items for the three months ended March 31, 2023 included $91 million of net charge-offs related to the uncollectible amount of acquired MUB loans, which were considered purchased credit deteriorated as of the date of acquisition. |
32 |
U.S. Bancorp |
| U.S. Bancorp | 33 |
| (Dollars in Millions) | March 31, 2023 |
December 31, 2022 |
||||||
| (Unaudited) | ||||||||
| Assets |
||||||||
| Cash and due from banks |
$ | i 67,228 | $ | i 53,542 | ||||
| Investment securities |
||||||||
| Held-to-maturity (fair value $ i 78,876 and $ i 77,874, respectively) |
i 88,462 | i 88,740 | ||||||
| Available-for-sale ($ i 600 and $ i 858
pledged as collateral, respectively) (a) |
i 65,491 | i 72,910 | ||||||
| Loans held for sale (including $ i 1,990 and $ i 1,849 of mortgage loans carried at fair value, respectively) |
i 2,381 | i 2,200 | ||||||
| Loans |
||||||||
| Commercial |
i 137,326 | i 135,690 | ||||||
| Commercial real estate |
i 55,158 | i 55,487 | ||||||
| Residential mortgages |
i 116,948 | i 115,845 | ||||||
| Credit card |
i 25,489 | i 26,295 | ||||||
| Other retail |
i 52,945 | i 54,896 | ||||||
| Total loans |
i 387,866 | i 388,213 | ||||||
| Less allowance for loan losses |
( i 7,020 | ) | ( i 6,936 | ) | ||||
| Net loans |
i 380,846 | i 381,277 | ||||||
| Premises and equipment |
i 3,735 | i 3,858 | ||||||
| Goodwill |
i 12,560 | i 12,373 | ||||||
| Other intangible assets |
i 6,883 | i 7,155 | ||||||
| Other assets (including $ i 2,773 and $ i 702
of trading securities at fair value pledged as collateral, respectively) (a) |
i 54,791 | i 52,750 | ||||||
| Total assets |
$ | i 682,377 | $ | i 674,805 | ||||
| Liabilities and Shareholders’ Equity |
||||||||
| Deposits |
||||||||
| Noninterest-bearing |
$ | i 124,595 | $ | i 137,743 | ||||
| Interest-bearing |
i 380,744 | i 387,233 | ||||||
| Total deposits |
i 505,339 | i 524,976 | ||||||
| Short-term borrowings |
i 56,875 | i 31,216 | ||||||
| Long-term debt |
i 42,045 | i 39,829 | ||||||
| Other liabilities |
i 24,664 | i 27,552 | ||||||
| Total liabilities |
i 628,923 | i 623,573 | ||||||
| Shareholders’ equity |
||||||||
| Preferred stock |
i 6,808 | i 6,808 | ||||||
| Common stock, par value $ i i 0.01 /
a share—authorized: i i 4,000,000,000 / shares; issued: 3/31/23 and
12/31/22— i i 2,125,725,742 / shares |
i 21 | i 21 | ||||||
| Capital surplus |
i 8,699 | i 8,712 | ||||||
| Retained earnings |
i 72,807 | i 71,901 | ||||||
| Less cost of common stock in treasury: 3/31/23— i 592,852,310 shares; 12/31/22 — i 594,747,484 shares |
( i 25,193 | ) | ( i 25,269 | ) | ||||
| Accumulated other comprehensive income (loss) |
( i 10,153 | ) | ( i 11,407 | ) | ||||
| Total U.S. Bancorp shareholders’ equity |
i 52,989 | i 50,766 | ||||||
| Noncontrolling interests |
i 465 | i 466 | ||||||
| Total equity |
i 53,454 | i 51,232 | ||||||
| Total liabilities and equity |
$ | i 682,377 | $ | i 674,805 | ||||
(a) |
Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
34 |
U.S. Bancorp |
| (Dollars and Shares in Millions, Except Per Share Data) (Unaudited) |
Three Months Ended March 31 |
|||||||
| 2023 | 2022 | |||||||
| Interest Income |
||||||||
| Loans |
$ | i 5,277 | $ | i 2,599 | ||||
| Loans held for sale |
i 31 | i 60 | ||||||
| Investment securities |
i 1,074 | i 717 | ||||||
| Other interest income |
i 582 | i 42 | ||||||
| Total interest income |
i 6,964 | i 3,418 | ||||||
| Interest Expense |
||||||||
| Deposits |
i 1,505 | i 80 | ||||||
| Short-term borrowings |
i 449 | i 21 | ||||||
| Long-term debt |
i 376 | i 144 | ||||||
| Total interest expense |
i 2,330 | i 245 | ||||||
| Net interest income |
i 4,634 | i 3,173 | ||||||
| Provision for credit losses |
i 427 | i 112 | ||||||
| Net interest income after provision for credit losses |
i 4,207 | i 3,061 | ||||||
| Noninterest Income |
||||||||
| Card revenue |
i 360 | i 338 | ||||||
| Corporate payment products revenue |
i 189 | i 158 | ||||||
| Merchant processing services |
i 387 | i 363 | ||||||
| Trust and investment management fees |
i 590 | i 500 | ||||||
| Service charges |
i 324 | i 333 | ||||||
| Commercial products revenue |
i 334 | i 266 | ||||||
| Mortgage banking revenue |
i 128 | i 200 | ||||||
| Investment products fees |
i 68 | i 62 | ||||||
| Securities gains (losses), net |
( i 32 | ) | i 18 | |||||
| Other |
i 159 | i 158 | ||||||
| Total noninterest income |
i 2,507 | i 2,396 | ||||||
| Noninterest Expense |
||||||||
| Compensation and employee benefits |
i 2,646 | i 2,249 | ||||||
| Net occupancy and equipment |
i 321 | i 269 | ||||||
| Professional services |
i 134 | i 114 | ||||||
| Marketing and business development |
i 122 | i 80 | ||||||
| Technology and communications |
i 503 | i 421 | ||||||
| Other intangibles |
i 160 | i 47 | ||||||
| Merger and integration charges |
i 244 | — | ||||||
| Other |
i 425 | i 322 | ||||||
| Total noninterest expense |
i 4,555 | i 3,502 | ||||||
| Income before income taxes |
i 2,159 | i 1,955 | ||||||
| Applicable income taxes |
i 455 | i 397 | ||||||
| Net income |
i 1,704 | i 1,558 | ||||||
| Net (income) loss attributable to noncontrolling interests |
( i 6 | ) | ( i 1 | ) | ||||
| Net income attributable to U.S. Bancorp |
$ | i 1,698 | $ | i 1,557 | ||||
| Net income applicable to U.S. Bancorp common shareholders |
$ | i 1,592 | $ | i 1,466 | ||||
| Earnings per common share |
$ | i 1.04 | $ | i .99 | ||||
| Diluted earnings per common share |
$ | i 1.04 | $ | i .99 | ||||
| Average common shares outstanding |
i 1,532 | i 1,485 | ||||||
| Average diluted common shares outstanding |
i 1,532 | i 1,486 | ||||||
| U.S. Bancorp | 35 |
| (Dollars in Millions) (Unaudited) |
Three Months Ended March 31 |
|||||||
| 2023 | 2022 | |||||||
| Net income |
$ | i 1,704 | $ | i 1,558 | ||||
| Other Comprehensive Income (Loss) |
||||||||
| Changes in unrealized gains (losses) on investment securities available-for-sale |
i 1,305 | ( i 6,754 | ) | |||||
| Changes in unrealized gains (losses) on derivative hedges |
i 204 | — | ||||||
| Foreign currency translation |
( i 1 | ) | — | |||||
| Changes in unrealized gains (losses) on retirement plans |
i 1 | — | ||||||
| Reclassification to earnings of realized (gains) losses |
i 158 | i 67 | ||||||
| Income taxes related to other comprehensive income (loss) |
( i 413 | ) | i 1,692 | |||||
| Total other comprehensive income (loss) |
i 1,254 | ( i 4,995 | ) | |||||
| Comprehensive income (loss) |
i 2,958 | ( i 3,437 | ) | |||||
| Comprehensive (income) loss attributable to noncontrolling interests |
( i 6 | ) | ( i 1 | ) | ||||
| Comprehensive income (loss) attributable to U.S. Bancorp |
$ | i 2,952 | $ | ( i 3,438 | ) | |||
36 |
U.S. Bancorp |
| U.S. Bancorp Shareholders | ||||||||||||||||||||||||||||||||||||||||
(Dollars and Shares in Millions, Except Per Share Data) (Unaudited) |
Common Shares Outstanding |
Preferred Stock |
Common Stock |
Capital Surplus |
Retained Earnings |
Treasury Stock |
Accumulated Other Comprehensive Income (Loss) |
Total U.S. Bancorp Shareholders’ Equity |
Noncontrolling Interests |
Total Equity |
||||||||||||||||||||||||||||||
Balance December 31, 2021 |
i 1,484 | $ | i 6,371 | $ | i 21 | $ | i 8,539 | $ | i 69,201 | $ | ( i 27,271 | ) | $ | ( i 1,943 | ) | $ | i 54,918 | $ | i 469 | $ | i 55,387 | |||||||||||||||||||
Net income (loss) |
i 1,557 | i 1,557 | i 1 | i 1,558 | ||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
( i 4,995 | ) | ( i 4,995 | ) | ( i 4,995 | ) | ||||||||||||||||||||||||||||||||||
Preferred stock dividends (a) |
( i 84 | ) | ( i 84 | ) | ( i 84 | ) | ||||||||||||||||||||||||||||||||||
Common stock dividends ($ i .46 per share) |
( i 687 | ) | ( i 687 | ) | ( i 687 | ) | ||||||||||||||||||||||||||||||||||
Issuance of preferred stock |
i 437 | i 437 | i 437 | |||||||||||||||||||||||||||||||||||||
Issuance of common and treasury stock |
i 3 | ( i 116 | ) | i 132 | i 16 | i 16 | ||||||||||||||||||||||||||||||||||
Purchase of treasury stock |
( i 1 | ) | ( i 54 | ) | ( i 54 | ) | ( i 54 | ) | ||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests |
— | ( i 2 | ) | ( i 2 | ) | |||||||||||||||||||||||||||||||||||
Stock option and restricted stock grants |
i 92 | i 92 | i 92 | |||||||||||||||||||||||||||||||||||||
Balance March 31, 2022 |
i 1,486 | $ | i 6,808 | $ | i 21 | $ | i 8,515 | $ | i 69,987 | $ | ( i 27,193 | ) | $ | ( i 6,938 | ) | $ | i 51,200 | $ | i 468 | $ | i 51,668 | |||||||||||||||||||
Balance December 31, 2022 |
i 1,531 | $ | i 6,808 | $ | i 21 | $ | i 8,712 | $ | i 71,901 | $ | ( i 25,269 | ) | $ | ( i 11,407 | ) | $ | i 50,766 | $ | i 466 | $ | i 51,232 | |||||||||||||||||||
Change in accounting principle (b) |
i 46 | i 46 | i 46 | |||||||||||||||||||||||||||||||||||||
Net income (loss) |
i 1,698 | i 1,698 | i 6 | i 1,704 | ||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
i 1,254 | i 1,254 | i 1,254 | |||||||||||||||||||||||||||||||||||||
Preferred stock dividends (c) |
( i 98 | ) | ( i 98 | ) | ( i 98 | ) | ||||||||||||||||||||||||||||||||||
Common stock dividends ($ i .48 per share) |
( i 740 | ) | ( i 740 | ) | ( i 740 | ) | ||||||||||||||||||||||||||||||||||
Issuance of common and treasury stock |
i 3 | ( i 114 | ) | i 120 | i 6 | i 6 | ||||||||||||||||||||||||||||||||||
Purchase of treasury stock |
( i 1 | ) | ( i 44 | ) | ( i 44 | ) | ( i 44 | ) | ||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests |
— | ( i 7 | ) | ( i 7 | ) | |||||||||||||||||||||||||||||||||||
Stock option and restricted stock grants |
i 101 | i 101 | i 101 | |||||||||||||||||||||||||||||||||||||
Balance March 31, 2023 |
i 1,533 | $ | i 6,808 | $ | i 21 | $ | i 8,699 | $ | i 72,807 | $ | ( i 25,193 | ) | $ | ( i 10,153 | ) | $ | i 52,989 | $ | i 465 | $ | i 53,454 | |||||||||||||||||||
(a) |
Reflects dividends declared per share on the Company’s Series A, Series B, Series J, Series K, Series L, Series M, Series N and Series O Non-Cumulative Perpetual Preferred Stock of $ i 875.00, $ i 218.75,
$ i 662.50, $ i 343.75,
$ i 234.375, $ i 250.00,
$ i 231.25 and $ i 206.25
respectively. |
(b) |
Effective January 1, 2023, the Company adopted accounting guidance which removed the separate recognition and measurement of troubled debt restructurings. Upon adoption, the Company reduced its allowance for credit losses and increased retained earnings net of deferred taxes through a cumulative-effect adjustment. |
(c) |
Reflects dividends declared per share on the Company’s Series A, Series B, Series J, Series K, Series L, Series M, Series N and Series O Non-Cumulative Perpetual Preferred Stock of $ i 1,462.428, $ i 339.357,
$ i 662.50, $ i 343.750,
$ i 234.375, $ i 250.00,
$ i 231.25 and $ i 281.25
respectively. |
| U.S. Bancorp | 37 |
| (Dollars in Millions) (Unaudited) |
Three Months Ended March 31 |
|||||||
| 2023 | 2022 | |||||||
| Operating Activities |
||||||||
| Net income attributable to U.S. Bancorp |
$ | i 1,698 | $ | i 1,557 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities |
||||||||
| Provision for credit losses |
i 427 | i 112 | ||||||
| Depreciation and amortization of premises and equipment |
i 97 | i 85 | ||||||
| Amortization of intangibles |
i 160 | i 47 | ||||||
| (Gain) loss on sale of loans held for sale |
i 7 | i 62 | ||||||
| (Gain) loss on sale of securities and other assets |
i 32 | ( i 42 | ) | |||||
| Loans originated for sale, net of repayments |
( i 7,024 | ) | ( i 9,827 | ) | ||||
| Proceeds from sales of loans held for sale |
i 6,728 | i 13,874 | ||||||
| Other, net |
( i 1,283 | ) | i 2,609 | |||||
| Net cash provided by operating activities |
i 842 | i 8,477 | ||||||
| Investing Activities |
||||||||
| Proceeds from sales of available-for-sale investment securities |
i 7,720 | i 12,527 | ||||||
| Proceeds from maturities of held-to-maturity investment securities |
i 1,317 | i 1,173 | ||||||
| Proceeds from maturities of available-for-sale investment securities |
i 1,407 | i 5,498 | ||||||
| Purchases of held-to-maturity investment securities |
( i 924 | ) | ( i 2,932 | ) | ||||
| Purchases of available-for-sale investment securities |
( i 217 | ) | ( i 15,989 | ) | ||||
| Net decrease (increase) in loans outstanding |
i 165 | ( i 7,278 | ) | |||||
| Proceeds from sales of loans |
i 257 | i 1,309 | ||||||
| Purchases of loans |
( i 339 | ) | ( i 1,073 | ) | ||||
| Net increase in securities purchased under agreements to resell |
( i 1,531 | ) | ( i 147 | ) | ||||
| Other, net |
( i 2,912 | ) | ( i 452 | ) | ||||
| Net cash provided by (used in) investing activities |
i 4,943 | ( i 7,364 | ) | |||||
| Financing Activities |
||||||||
| Net (decrease) increase in deposits |
( i 19,237 | ) | i 5,463 | |||||
| Net increase in short-term borrowings |
i 24,876 | i 9,246 | ||||||
| Proceeds from issuance of long-term debt |
i 3,701 | i 2,153 | ||||||
| Principal payments or redemption of long-term debt |
( i 1,594 | ) | ( i 1,118 | ) | ||||
| Proceeds from issuance of preferred stock |
— | i 437 | ||||||
| Proceeds from issuance of common stock |
i 6 | i 15 | ||||||
| Repurchase of preferred stock |
— | ( i 1,100 | ) | |||||
| Repurchase of common stock |
( i 44 | ) | ( i 54 | ) | ||||
| Cash dividends paid on preferred stock |
( i 67 | ) | ( i 70 | ) | ||||
| Cash dividends paid on common stock |
( i 740 | ) | ( i 687 | ) | ||||
| Net cash provided by financing activities |
i 6,901 | i 14,285 | ||||||
| Change in cash and due from banks |
i 12,686 | i 15,398 | ||||||
| Cash and due from banks at beginning of period |
i 53,542 | i 28,905 | ||||||
| Cash and due from banks at end of period (a) |
$ | i 66,228 | $ | i 44,303 | ||||
(a) |
Excludes a $ i 1.0 billion interest-bearing due from bank balance with a term greater than i 90 days. |
38 |
U.S. Bancorp |
Note 1 |
Basis of Presentation |
Note 2 |
Accounting Changes |
| U.S. Bancorp | 39 |
Note 3 |
Business Combinations |
December 1, 2022 (Dollars in Millions) |
||||
Acquisition consideration |
||||
Cash |
$ | i 5,500 | ||
Market value of shares of common stock |
i 2,014 | |||
Total consideration transferred at acquisition close date |
i 7,514 | |||
Discounted liability to MUFG (a) |
i 2,944 | |||
Total |
$ | i 10,458 | ||
Fair Value of MUB assets and liabilities |
||||
Assets |
||||
Cash and due from banks |
$ | i 17,754 | ||
Investment securities |
i 22,725 | |||
Loans held for sale |
i 2,220 | |||
Loans |
i 53,395 | |||
Less allowance for loan losses |
( i 463 | ) | ||
Net loans |
i 52,932 | |||
Premises and equipment |
i 646 | |||
Other intangible assets (excluding goodwill) |
i 2,808 | |||
Other assets |
i 4,700 | |||
Total assets |
$ | i 103,785 | ||
Liabilities |
||||
Deposits |
$ | i 86,110 | ||
Short-term borrowings |
i 4,773 | |||
Long-term debt |
i 2,584 | |||
Other liabilities |
i 2,267 | |||
Total liabilities |
i 95,734 | |||
Less: Net assets |
$ | i 8,051 | ||
Goodwill |
$ | i 2,407 | ||
(a) |
Represents $ i 3.5 billion of noninterest-bearing additional cash held by MUB upon close of the acquisition to be delivered to MUFG on or prior to December 1, 2027, discounted at the Company’s 5-year unsecured borrowing rate as of the acquisition date, per authoritative accounting guidance. |
40 |
U.S. Bancorp |
Note 4 |
Investment Securities |
| March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||
| (Dollars in Millions) | Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Fair Value | Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Fair Value | ||||||||||||||||||||||||
| Held-to-maturity |
||||||||||||||||||||||||||||||||
| U.S. Treasury and agencies |
$ | i 1,344 | $ | — | $ | ( i 37 | ) | $ | i 1,307 | $ | i 1,344 | $ | — | $ | ( i 51 | ) | $ | i 1,293 | ||||||||||||||
| Mortgage-backed securities |
||||||||||||||||||||||||||||||||
| Residential agency |
i 85,419 | i 23 | ( i 9,589 | ) | i 75,853 | i 85,693 | i 2 | ( i 10,810 | ) | i 74,885 | ||||||||||||||||||||||
| Commercial agency |
i 1,699 | i 18 | ( i 1 | ) | i 1,716 | i 1,703 | i 1 | ( i 8 | ) | i 1,696 | ||||||||||||||||||||||
| Total held-to-maturity |
$ | i 88,462 | $ | i 41 | $ | ( i 9,627 | ) | $ | i 78,876 | $ | i 88,740 | $ | i 3 | $ | ( i 10,869 | ) | $ | i 77,874 | ||||||||||||||
| Available-for-sale |
||||||||||||||||||||||||||||||||
| U.S. Treasury and agencies |
$ | i 20,421 | $ | i 3 | $ | ( i 2,370 | ) | $ | i 18,054 | $ | i 24,801 | $ | i 1 | $ | ( i 2,769 | ) | $ | i 22,033 | ||||||||||||||
| Mortgage-backed securities |
||||||||||||||||||||||||||||||||
| Residential agency |
i 28,467 | i 7 | ( i 2,329 | ) | i 26,145 | i 32,060 | i 8 | ( i 2,797 | ) | i 29,271 | ||||||||||||||||||||||
| Commercial |
||||||||||||||||||||||||||||||||
| Agency |
i 8,727 | — | ( i 1,427 | ) | i 7,300 | i 8,736 | — | ( i 1,591 | ) | i 7,145 | ||||||||||||||||||||||
| Non-agency |
i 7 | — | — | i 7 | i 7 | — | — | i 7 | ||||||||||||||||||||||||
| Asset-backed securities |
i 3,836 | i 4 | ( i 33 | ) | i 3,807 | i 4,356 | i 5 | ( i 38 | ) | i 4,323 | ||||||||||||||||||||||
| Obligations of state and political subdivisions |
i 11,234 | i 16 | ( i 1,076 | ) | i 10,174 | i 11,484 | i 12 | ( i 1,371 | ) | i 10,125 | ||||||||||||||||||||||
| Other |
i 4 | — | — | i 4 | i 6 | — | — | i 6 | ||||||||||||||||||||||||
| Total available-for-sale |
$ | i 72,696 | $ | i 30 | $ | ( i 7,235 | ) | $ | i 65,491 | $ | i 81,450 | $ | i 26 | $ | ( i 8,566 | ) | $ | i 72,910 | ||||||||||||||
| Three Months Ended March 31 |
||||||||
| (Dollars in Millions) | 2023 | 2022 | ||||||
| Taxable |
$ | i 994 | $ | i 646 | ||||
| Non-taxable |
i 80 | i 71 | ||||||
| Total interest income from investment securities |
$ | i 1,074 | $ | i 717 | ||||
| U.S. Bancorp | 41 |
| Three Months Ended March 31 |
||||||||
| (Dollars in Millions) | 2023 | 2022 | ||||||
| Realized gains |
$ | i 60 | $ | i 242 | ||||
| Realized losses |
( i 92 | ) | ( i 224 | ) | ||||
| Net realized gains (losses) |
$ | ( i 32 | ) | $ | i 18 | |||
| Income tax on net realized gains (losses) |
$ | ( i 8 | ) | $ | i 4 | |||
| Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
| (Dollars in Millions) | Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
||||||||||||||||||
| U.S. Treasury and agencies |
$ | i 359 | $ | ( i 11 | ) | $ | i 17,134 | $ | ( i 2,359 | ) | $ | i 17,493 | $ | ( i 2,370 | ) | |||||||||
| Mortgage-backed securities |
||||||||||||||||||||||||
| Residential agency |
i 6,121 | ( i 252 | ) | i 19,435 | ( i 2,077 | ) | i 25,556 | ( i 2,329 | ) | |||||||||||||||
| Commercial |
||||||||||||||||||||||||
| Agency |
— | — | i 7,300 | ( i 1,427 | ) | i 7,300 | ( i 1,427 | ) | ||||||||||||||||
| Non-agency |
i 7 | — | — | — | i 7 | — | ||||||||||||||||||
| Asset-backed securities |
i 3,140 | ( i 33 | ) | — | — | i 3,140 | ( i 33 | ) | ||||||||||||||||
| Obligations of state and political subdivisions |
i 4,550 | ( i 126 | ) | i 4,198 | ( i 950 | ) | i 8,748 | ( i 1,076 | ) | |||||||||||||||
| Other |
— | — | i 4 | — | i 4 | — | ||||||||||||||||||
| Total investment securities |
$ | i 14,177 | $ | ( i 422 | ) | $ | i 48,071 | $ | ( i 6,813 | ) | $ | i 62,248 | $ | ( i 7,235 | ) | |||||||||
42 |
U.S. Bancorp |
| (Dollars in Millions) | Amortized Cost |
Fair Value |
Weighted- Average Maturity in Years |
Weighted- Average Yield (e) |
||||||||||||
| Held-to-maturity |
||||||||||||||||
| U.S. Treasury and Agencies |
||||||||||||||||
| Maturing in one year or less |
$ | — | $ | — | — | — | % | |||||||||
| Maturing after one year through five years |
i 1,344 | i 1,307 | i 3.0 | i 2.85 | ||||||||||||
| Maturing after five years through ten years |
— | — | — | — | ||||||||||||
| Maturing after ten years |
— | — | — | — | ||||||||||||
| Total |
$ | i 1,344 | $ | i 1,307 | i 3.0 | i 2.85 | % | |||||||||
| Mortgage-Backed Securities (a) |
||||||||||||||||
| Maturing in one year or less |
$ | i 22 | $ | i 21 | i .8 | i 5.09 | % | |||||||||
| Maturing after one year through five years |
i 1,531 | i 1,536 | i 2.7 | i 4.58 | ||||||||||||
| Maturing after five years through ten years |
i 79,376 | i 70,881 | i 9.0 | i 2.20 | ||||||||||||
| Maturing after ten years |
i 6,189 | i 5,131 | i 10.2 | i 1.93 | ||||||||||||
| Total |
$ | i 87,118 | $ | i 77,569 | i 9.0 | i 2.23 | % | |||||||||
| Total held-to-maturity (b) |
$ | i 88,462 | $ | i 78,876 | i 8.9 | i 2.24 | % | |||||||||
| Available-for-sale |
||||||||||||||||
| U.S. Treasury and Agencies |
||||||||||||||||
| Maturing in one year or less |
$ | i 261 | $ | i 261 | i .2 | i 4.75 | % | |||||||||
| Maturing after one year through five years |
i 4,452 | i 4,114 | i 3.9 | i 1.70 | ||||||||||||
| Maturing after five years through ten years |
i 13,339 | i 11,829 | i 7.0 | i 1.93 | ||||||||||||
| Maturing after ten years |
i 2,369 | i 1,850 | i 11.2 | i 2.00 | ||||||||||||
| Total |
$ | i 20,421 | $ | i 18,054 | i 6.7 | i 1.92 | % | |||||||||
| Mortgage-Backed Securities (a) |
||||||||||||||||
| Maturing in one year or less |
$ | i 71 | $ | i 70 | i .8 | i 2.44 | % | |||||||||
| Maturing after one year through five years |
i 9,603 | i 9,020 | i 3.1 | i 2.44 | ||||||||||||
| Maturing after five years through ten years |
i 26,252 | i 23,248 | i 7.5 | i 2.94 | ||||||||||||
| Maturing after ten years |
i 1,275 | i 1,114 | i 11.1 | i 3.55 | ||||||||||||
| Total |
$ | i 37,201 | $ | i 33,452 | i 6.5 | i 2.83 | % | |||||||||
| Asset-Backed Securities |
||||||||||||||||
| Maturing in one year or less |
$ | i 3,054 | $ | i 3,021 | i .4 | i 4.25 | % | |||||||||
| Maturing after one year through five years |
i 506 | i 509 | i 3.2 | i 6.94 | ||||||||||||
| Maturing after five years through ten years |
i 276 | i 277 | i 5.7 | i 5.77 | ||||||||||||
| Maturing after ten years |
— | — | — | — | ||||||||||||
| Total |
$ | i 3,836 | $ | i 3,807 | i 1.2 | i 4.72 | % | |||||||||
| Obligations of State and Political |
||||||||||||||||
| Subdivisions (c) (d) |
||||||||||||||||
| Maturing in one year or less |
$ | i 152 | $ | i 153 | i .3 | i 5.12 | % | |||||||||
| Maturing after one year through five years |
i 3,579 | i 3,550 | i 3.7 | i 4.51 | ||||||||||||
| Maturing after five years through ten years |
i 1,556 | i 1,488 | i 7.8 | i 3.89 | ||||||||||||
| Maturing after ten years |
i 5,947 | i 4,983 | i 16.2 | i 3.21 | ||||||||||||
| Total |
$ | i 11,234 | $ | i 10,174 | i 10.8 | i 3.74 | % | |||||||||
| Other |
||||||||||||||||
| Maturing in one year or less |
$ | — | $ | — | — | — | % | |||||||||
| Maturing after one year through five years |
i 4 | i 4 | i 2.2 | i 1.89 | ||||||||||||
| Maturing after five years through ten years |
— | — | — | — | ||||||||||||
| Maturing after ten years |
— | — | — | — | ||||||||||||
| Total |
$ | i 4 | $ | i 4 | i 2.2 | i 1.89 | % | |||||||||
| Total available-for-sale (b) |
$ | i 72,696 | $ | i 65,491 | i 7.0 | i 2.82 | % | |||||||||
(a) |
Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments. |
(b) |
The weighted-average maturity of total held-to-maturity investment securities was i 9.2 years at December 31, 2022, with a corresponding weighted-average yield of i 2.18
percent. The weighted-average maturity of total available-for-sale investment securities was i 7.4 years at December 31, 2022, with a corresponding weighted-average yield of i 2.94
percent. |
(c) |
Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount. |
(d) |
Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par. |
(e) |
Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of i 21 percent. Yields on investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity. |
| U.S. Bancorp | 43 |
Note 5 |
Loans and Allowance for Credit Losses |
| March 31, 2023 | December 31, 2022 | |||||||||||||||||||
| (Dollars in Millions) | Amount | Percent of Total |
Amount | Percent of Total |
||||||||||||||||
| Commercial |
||||||||||||||||||||
| Commercial |
$ | i 132,894 | i 34.3 | % | $ | i 131,128 | i 33.8 | % | ||||||||||||
| Lease financing |
i 4,432 | i 1.1 | i 4,562 | i 1.2 | ||||||||||||||||
| Total commercial |
i 137,326 | i 35.4 | i 135,690 | i 35.0 | ||||||||||||||||
| Commercial Real Estate |
||||||||||||||||||||
| Commercial mortgages |
i 43,549 | i 11.2 | i 43,765 | i 11.3 | ||||||||||||||||
| Construction and development |
i 11,609 | i 3.0 | i 11,722 | i 3.0 | ||||||||||||||||
| Total commercial real estate |
i 55,158 | i 14.2 | i 55,487 | i 14.3 | ||||||||||||||||
| Residential Mortgages |
||||||||||||||||||||
| Residential mortgages |
i 109,246 | i 28.2 | i 107,858 | i 27.8 | ||||||||||||||||
| Home equity loans, first liens |
i 7,702 | i 2.0 | i 7,987 | i 2.0 | ||||||||||||||||
| Total residential mortgages |
i 116,948 | i 30.2 | i 115,845 | i 29.8 | ||||||||||||||||
| Credit Card |
i 25,489 | i 6.6 | i 26,295 | i 6.8 | ||||||||||||||||
| Other Retail |
||||||||||||||||||||
| Retail leasing |
i 5,017 | i 1.3 | i 5,519 | i 1.4 | ||||||||||||||||
| Home equity and second mortgages |
i 12,720 | i 3.3 | i 12,863 | i 3.3 | ||||||||||||||||
| Revolving credit |
i 3,720 | i .9 | i 3,983 | i 1.0 | ||||||||||||||||
| Installment |
i 14,357 | i 3.7 | i 14,592 | i 3.8 | ||||||||||||||||
| Automobile |
i 17,131 | i 4.4 | i 17,939 | i 4.6 | ||||||||||||||||
| Total other retail |
i 52,945 | i 13.6 | i 54,896 | i 14.1 | ||||||||||||||||
| Total loans |
$ | i 387,866 | i 100.0 | % | $ | i 388,213 | i 100.0 | % | ||||||||||||
44 |
U.S. Bancorp |
| (Dollars in Millions) | Commercial | Commercial Real Estate |
Residential Mortgages |
Credit Card |
Other Retail |
Total Loans |
||||||||||||||||||
Balance at December 31, 2022 |
$ i 2,163 | $ i 1,325 | $ i 926 | $ i 2,020 | $ i 970 | $ i 7,404 | ||||||||||||||||||
Add |
||||||||||||||||||||||||
Change in accounting principle (a) |
— | — | ( i 31 | ) | ( i 27 | ) | ( i 4 | ) | ( i 62 | ) | ||||||||||||||
Allowance for acquired credit losses (b) |
— | i 127 | — | — | — | i 127 | ||||||||||||||||||
Provision for credit losses |
i 64 | i 24 | i 51 | i 294 | ( i 6 | ) | i 427 | |||||||||||||||||
Deduct |
||||||||||||||||||||||||
Loans charged-off |
i 63 | i 123 | i 4 | i 215 | i 64 | i 469 | ||||||||||||||||||
Less recoveries of loans charged-off |
( i 16 | ) | ( i 6 | ) | ( i 5 | ) | ( i 40 | ) | ( i 29 | ) | ( i 96 | ) | ||||||||||||
Net loan charge-offs (recoveries) |
i 47 | i 117 | ( i 1 | ) | i 175 | i 35 | i 373 | |||||||||||||||||
Balance at March 31, 2023 |
$ i 2,180 | $ i 1,359 | $ i 947 | $ i 2,112 | $ i 925 | $ i 7,523 | ||||||||||||||||||
Balance at December 31, 2021 |
$ i 1,849 | $ i 1,123 | $ i 565 | $ i 1,673 | $ i 945 | $ i 6,155 | ||||||||||||||||||
Add |
||||||||||||||||||||||||
Provision for credit losses |
i 19 | ( i 54 | ) | i 29 | i 78 | i 40 | i 112 | |||||||||||||||||
Deduct |
||||||||||||||||||||||||
Loans charged-off |
i 55 | i 1 | i 5 | i 158 | i 61 | i 280 | ||||||||||||||||||
Less recoveries of loans charged-off |
( i 23 | ) | ( i 6 | ) | ( i 11 | ) | ( i 46 | ) | ( i 32 | ) | ( i 118 | ) | ||||||||||||
Net loan charge-offs (recoveries) |
i 32 | ( i 5 | ) | ( i 6 | ) | i 112 | i 29 | i 162 | ||||||||||||||||
Balance at March 31, 2022 |
$ i 1,836 | $ i 1,074 | $ i 600 | $ i 1,639 | $ i 956 | $ i 6,105 | ||||||||||||||||||
(a) |
Effective January 1, 2023, the Company adopted accounting guidance which removed the separate recognition and measurement of troubled debt restructurings. |
(b) |
Represents allowance for credit deteriorated and charged-off loans acquired from MUB. |
| U.S. Bancorp | 45 |
Three Months Ended March 31, 2023 (Dollars in Millions) |
Commercial |
Commercial Real Estate (a) |
Residential Mortgages |
Credit Card |
Other Retail |
Total Loans |
||||||||||||||||||
Originated in 2023 |
$ i — | $ i — | $ i — | $ i — | $ i — | $ i — | ||||||||||||||||||
Originated in 2022 |
i 6 | i 88 |
— |
— |
i 10 | i 104 | ||||||||||||||||||
Originated in 2021 |
i 4 | — | — | — | i 11 | i 15 | ||||||||||||||||||
Originated in 2020 |
i 4 | — | — | — | i 6 | i 10 | ||||||||||||||||||
Originated in 2019 |
i 5 | i 3 | i 1 | — | i 7 | i 16 | ||||||||||||||||||
Originated prior to 2019 |
i 11 | i 32 | i 3 | — | i 8 | i 54 | ||||||||||||||||||
Revolving |
i 33 | — | — | i 215 | i 22 | i 270 | ||||||||||||||||||
Total charge-offs |
$ | i 63 | $ | i 123 | $ | i 4 | $ | i 215 | $ | i 64 | $ | i 469 | ||||||||||||
(a) |
Primarily related to uncollectible amounts on acquired loans. |
46 |
U.S. Bancorp |
| Accruing | ||||||||||||||||||||
| (Dollars in Millions) | Current | 30-89 Days Past Due |
90 Days or More Past Due |
Nonperforming (b) | Total | |||||||||||||||
Commercial |
$ | i 136,619 | $ i 457 | $ i 72 | $ i 178 | $ i 137,326 | ||||||||||||||
Commercial real estate |
i 54,544 | i 74 | i 5 | i 535 | i 55,158 | |||||||||||||||
Residential mortgages (a) |
i 116,411 | i 148 | i 97 | i 292 | i 116,948 | |||||||||||||||
Credit card |
i 24,952 | i 280 | i 256 | i 1 | i 25,489 | |||||||||||||||
Other retail |
i 52,494 | i 254 | i 64 | i 133 | i 52,945 | |||||||||||||||
Total loans |
$ | i 385,020 | $ i 1,213 | $ i 494 | $ i 1,139 | $ i 387,866 | ||||||||||||||
Commercial |
$ | i 135,077 | $ i 350 | $ i 94 | $ i 169 | $ i 135,690 | ||||||||||||||
Commercial real estate |
i 55,057 | i 87 | i 5 | i 338 | i 55,487 | |||||||||||||||
Residential mortgages (a) |
i 115,224 | i 201 | i 95 | i 325 | i 115,845 | |||||||||||||||
Credit card |
i 25,780 | i 283 | i 231 | i 1 | i 26,295 | |||||||||||||||
Other retail |
i 54,382 | i 309 | i 66 | i 139 | i 54,896 | |||||||||||||||
Total loans |
$ | i 385,520 | $ i 1,230 | $ i 491 | $ i 972 | $ i 388,213 | ||||||||||||||
(a) |
At March 31, 2023, $ i 542 million of loans 30–89 days past due and $ i 2.2
billion of loans 90 days or more past due purchased and that could be purchased from Government National Mortgage Association (“GNMA”) mortgage pools under delinquent loan repurchase options whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current, compared with $ i 647
million and $ i 2.2 billion at December 31, 2022, respectively. |
(b) |
Substantially all nonperforming loans at March 31, 2023 and December 31, 2022, had an associated allowance for credit losses. The Company recognized interest income on nonperforming loans of $ i 4
million and $ i 3 million for the three months ended March 31, 2023 and 2022, respectively. |
| U.S. Bancorp | 47 |
| March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
| Criticized | Criticized | |||||||||||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | Pass | Special Mention |
Classified (a) | Total Criticized |
Total | Pass | Special Mention |
Classified (a) | Total Criticized |
Total | ||||||||||||||||||||||||||||||||||
Commercial |
||||||||||||||||||||||||||||||||||||||||||||
Originated in 2023 |
$ i 14,029 | $ i 74 | $ i 135 | $ i 209 | $ i 14,238 | $ — | $ — | $ — | $ — | $ — | ||||||||||||||||||||||||||||||||||
Originated in 2022 |
i 58,723 | i 334 | i 433 | i 767 | i 59,490 | i 61,229 | i 245 | i 315 | i 560 | i 61,789 | ||||||||||||||||||||||||||||||||||
Originated in 2021 |
i 21,541 | i 480 | i 254 | i 734 | i 22,275 | i 26,411 | i 159 | i 78 | i 237 | i 26,648 | ||||||||||||||||||||||||||||||||||
Originated in 2020 |
i 5,226 | i 66 | i 123 | i 189 | i 5,415 | i 7,049 | i 68 | i 138 | i 206 | i 7,255 | ||||||||||||||||||||||||||||||||||
Originated in 2019 |
i 2,859 | i 26 | i 203 | i 229 | i 3,088 | i 3,962 | i 51 | i 210 | i 261 | i 4,223 | ||||||||||||||||||||||||||||||||||
Originated prior to 2019 |
i 5,201 | i 44 | i 48 | i 92 | i 5,293 | i 8,986 | i 64 | i 129 | i 193 | i 9,179 | ||||||||||||||||||||||||||||||||||
Revolving (b) |
i 26,919 | i 147 | i 461 | i 608 | i 27,527 | i 25,888 | i 344 | i 364 | i 708 | i 26,596 | ||||||||||||||||||||||||||||||||||
Total commercial |
i 134,498 | i 1,171 | i 1,657 | i 2,828 | i 137,326 | i 133,525 | i 931 | i 1,234 | i 2,165 | i 135,690 | ||||||||||||||||||||||||||||||||||
Commercial real estate |
||||||||||||||||||||||||||||||||||||||||||||
Originated in 2023 |
i 2,868 | i 131 | i 160 | i 291 | i 3,159 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Originated in 2022 |
i 15,229 | i 261 | i 640 | i 901 | i 16,130 | i 14,527 | i 206 | i 519 | i 725 | i 15,252 | ||||||||||||||||||||||||||||||||||
Originated in 2021 |
i 12,809 | i 358 | i 186 | i 544 | i 13,353 | i 13,565 | i 171 | i 99 | i 270 | i 13,835 | ||||||||||||||||||||||||||||||||||
Originated in 2020 |
i 5,441 | i 49 | i 131 | i 180 | i 5,621 | i 6,489 | i 97 | i 117 | i 214 | i 6,703 | ||||||||||||||||||||||||||||||||||
Originated in 2019 |
i 6,317 | i 220 | i 282 | i 502 | i 6,819 | i 6,991 | i 251 | i 304 | i 555 | i 7,546 | ||||||||||||||||||||||||||||||||||
Originated prior to 2019 |
i 7.959 | i 130 | i 566 | i 696 | i 8,655 | i 9,639 | i 138 | i 875 | i 1,013 | i 10,652 | ||||||||||||||||||||||||||||||||||
Revolving |
i 1,405 | — | i 16 | i 16 | i 1,421 | i 1,489 | i — | i 10 | i 10 | i 1,499 | ||||||||||||||||||||||||||||||||||
Total commercial real estate |
i 52,028 | i 1,149 | i 1,981 | i 3,130 | i 55,158 | i 52,700 | i 863 | i 1,924 | i 2,787 | i 55,487 | ||||||||||||||||||||||||||||||||||
Residential mortgages (c) |
||||||||||||||||||||||||||||||||||||||||||||
Originated in 2023 |
i 2,581 | — | — | — | i 2,581 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Originated in 2022 |
i 29,297 | — | i 6 | i 6 | i 29,303 | i 28,452 | — | i — | i — | i 28,452 | ||||||||||||||||||||||||||||||||||
Originated in 2021 |
i 37,494 | — | i 10 | i 10 | i 37,504 | i 39,527 | — | i 7 | i 7 | i 39,534 | ||||||||||||||||||||||||||||||||||
Originated in 2020 |
i 15,832 | — | i 10 | i 10 | i 15,842 | i 16,556 | — | i 8 | i 8 | i 16,564 | ||||||||||||||||||||||||||||||||||
Originated in 2019 |
i 6,832 | — | i 16 | i 16 | i 6,848 | i 7,222 | — | i 18 | i 18 | i 7,240 | ||||||||||||||||||||||||||||||||||
Originated prior to 2019 |
i 24,522 | — | i 348 | i 348 | i 24,870 | i 23,658 | — | i 397 | i 397 | i 24,055 | ||||||||||||||||||||||||||||||||||
Total residential mortgages |
i 116,558 | — | i 390 | i 390 | i 116,948 | i 115,415 | — | i 430 | i 430 | i 115,845 | ||||||||||||||||||||||||||||||||||
Credit card (d) |
i 25,232 | — | i 257 | i 257 | i 25,489 | i 26,063 | — | i 232 | i 232 | i 26,295 | ||||||||||||||||||||||||||||||||||
Other retail |
||||||||||||||||||||||||||||||||||||||||||||
Originated in 2023 |
i 1,958 | — | — | — | i 1,958 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Originated in 2022 |
i 8,903 | — | i 6 | i 6 | i 8,909 | i 9,563 | — | i 6 | i 6 | i 9,569 | ||||||||||||||||||||||||||||||||||
Originated in 2021 |
i 14,208 | — | i 12 | i 12 | i 14,220 | i 15,352 | — | i 12 | i 12 | i 15,364 | ||||||||||||||||||||||||||||||||||
Originated in 2020 |
i 7,083 | — | i 10 | i 10 | i 7,093 | i 7,828 | — | i 11 | i 11 | i 7,839 | ||||||||||||||||||||||||||||||||||
Originated in 2019 |
i 2,886 | — | i 10 | i 10 | i 2,896 | i 3,418 | — | i 13 | i 13 | i 3,431 | ||||||||||||||||||||||||||||||||||
Originated prior to 2019 |
i 3,063 | — | i 18 | i 18 | i 3,081 | i 3,689 | — | i 31 | i 31 | i 3,720 | ||||||||||||||||||||||||||||||||||
Revolving |
i 13,846 | — | i 99 | i 99 | i 13,945 | i 14,029 | — | i 98 | i 98 | i 14,127 | ||||||||||||||||||||||||||||||||||
Revolving converted to term |
i 788 | — | i 55 | i 55 | i 843 | i 800 | — | i 46 | i 46 | i 846 | ||||||||||||||||||||||||||||||||||
Total other retail |
i 52,735 | — | i 210 | i 210 | i 52,945 | i 54,679 | — | i 217 | i 217 | i 54,896 | ||||||||||||||||||||||||||||||||||
Total loans |
$ i 381,051 | $ i 2,320 | $ i 4,495 | $ i 6,815 | $ i 387,866 | $ i 382,382 | $ i 1,794 | $ i 4,037 | $ i 5,831 | $ i 388,213 | ||||||||||||||||||||||||||||||||||
Total outstanding commitments |
$ i 778,269 | $ i 3,209 | $ i 6,240 | $ i 9,449 | $ i 787,718 | $ i 772,804 | $ i 2,825 | $ i 5,041 | $ i 7,866 | $ i 780,670 | ||||||||||||||||||||||||||||||||||
(a) |
Classified rating on consumer loans primarily based on delinquency status. |
(b) |
Includes an immaterial amount of revolving converted to term loans. |
(c) |
At March 31, 2023, $ i 2.2 billion of GNMA loans 90 days or more past due and $ i 268
million of modified GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs were classified with a pass rating, compared with $ i 2.2 billion and $ i 1.0
billion at December 31, 2022, respectively. |
(d) |
Predominately all credit card loans are considered revolving loans. Includes an immaterial amount of revolving converted to term loans. |
48 |
U.S. Bancorp |
(Dollars in Millions) |
Interest Rate Reduction |
Payment Delay |
Term Extension |
Multiple Modifications (a) |
Total Modifications |
Percent of Class Total |
||||||||||||||||||||||||||||||||||
| Commercial |
$ |
i 114 |
$ |
— |
$ |
i 68 |
$ |
— |
$ |
i 182 |
i .1 |
% | ||||||||||||||||||||||||||||
| Commercial real estate |
— |
— |
i 12 |
i 28 |
i 40 |
i .1 |
||||||||||||||||||||||||||||||||||
| Residential mortgages (b) |
— |
i 130 |
i 10 |
i 12 |
i 152 |
i .1 |
||||||||||||||||||||||||||||||||||
| Credit card |
i 94 |
— |
— |
— |
i 94 |
i .4 |
||||||||||||||||||||||||||||||||||
| Other retail |
i 2 |
i 11 |
i 63 |
i 2 |
i 78 |
i .1 |
||||||||||||||||||||||||||||||||||
| Total loans, excluding loans purchased from GNMA mortgage pools |
i 210 |
i 141 |
i 153 |
i 42 |
i 546 |
i .1 |
||||||||||||||||||||||||||||||||||
| Loans purchased from GNMA mortgage pools (b) |
— |
i 243 |
i 63 |
i 47 |
i 353 |
i .3 |
||||||||||||||||||||||||||||||||||
| Total loans |
$ |
i 210 |
$ |
i 384 |
$ |
i 216 |
$ |
i 89 |
$ |
i 899 |
i .2 |
% | ||||||||||||||||||||||||||||
(a) |
Includes $ i 52 million of total loans receiving a payment delay and term extension, $ i 32
million of total loans receiving an interest rate reduction and term extension and $ i 5 million of total loans receiving an interest rate reduction, payment delay and term extension. |
(b) |
Percent of class total amounts expressed as a percent of total residential mortgage loan balances. |
(Dollars in Millions) |
Weighted-Average Interest Rate Reduction |
Weighted-Average Months of Term Extension |
||||||
| Commercial |
i 2.4 | % |
i 5 | |||||
| Commercial real estate |
i 5.0 | i 6 | ||||||
| Residential mortgages |
i 1.2 | i 120 | ||||||
| Credit card |
i 16.0 | — | ||||||
| Other retail |
i 6.6 | i 151 | ||||||
| Loans purchased from GNMA mortgage pools |
i .7 | i 66 | ||||||
| U.S. Bancorp | 49 |
| (Dollars in Millions) | Current | 30-89 Days Past Due |
90 Days or More Past Due |
Total | ||||||||||||
| Commercial |
$ | i 146 | $ | i 6 | $ | i 30 | $ | i 182 | ||||||||
| Commercial real estate |
i 6 | — | i 34 | i 40 | ||||||||||||
| Residential mortgages (a) |
i 319 | i 3 | i 10 | i 332 | ||||||||||||
| Credit card |
i 56 | i 28 | i 10 | i 94 | ||||||||||||
| Other retail |
i 64 | i 3 | i 2 | i 69 | ||||||||||||
| Total loans |
$ | i 591 | $ | i 40 | $ | i 86 | $ | i 717 | ||||||||
(a) |
At March 31, 2023, $ i 32 million of loans 30-89
days past due and $ i 1 mi llion of loans 90 days or more past due purchased and that could be purchased from GNMA mortgage pools
under delinquent loan repurchase options whose payments are insured by the Federal Housing administration or guaranteed by the United States Department of Veterans Affairs, were classified as current. |
| Three Months Ended March 31, 2022 (Dollars in Millions) |
Number of Loans |
Pre-Modification Outstanding Loan Balance |
Post-Modification Outstanding Loan Balance |
|||||||||
| Commercial |
i 509 | $ | i 38 | $ | i 32 | |||||||
| Commercial real estate |
i 9 | i 11 | i 10 | |||||||||
| Residential mortgages |
i 840 | i 228 | i 226 | |||||||||
| Credit card |
i 9,339 | i 50 | i 50 | |||||||||
| Other retail |
i 728 | i 37 | i 37 | |||||||||
| Total loans, excluding loans purchased from GNMA mortgage pools |
i 11,425 | i 364 | i 355 | |||||||||
| Loans purchased from GNMA mortgage pools |
i 390 | i 55 | i 55 | |||||||||
| Total loans |
i 11,815 | $ | i 419 | $ | i 410 | |||||||
| Three Months Ended March 31, 2022 (Dollars in Millions) |
Number of Loans |
Amount Defaulted |
||||||
| Commercial |
i 214 | $ | i 3 | |||||
| Commercial real estate |
i 3 | i 1 | ||||||
| Residential mortgages |
i 34 | i 3 | ||||||
| Credit card |
i 1,634 | i 9 | ||||||
| Other retail |
i 83 | i 1 | ||||||
| Total loans, excluding loans purchased from GNMA mortgage pools |
i 1,968 | i 17 | ||||||
| Loans purchased from GNMA mortgage pools |
i 49 | i 8 | ||||||
| Total loans |
i 2,017 | $ | i 25 | |||||
Note 6 |
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities |
50 |
U.S. Bancorp |
| (Dollars in Millions) | March 31, 2023 |
December 31, 2022 |
||||||
Investment carrying amount |
$ | i 5,667 | $ | i 5,452 | ||||
Unfunded capital and other commitments |
i 2,680 | i 2,416 | ||||||
Maximum exposure to loss |
i 9,662 | i 9,761 | ||||||
| U.S. Bancorp | 51 |
Note 7 |
Mortgage Servicing Rights |
| Three Months Ended March 31 |
||||||||
| (Dollars in Millions) | 2023 | 2022 | ||||||
Balance at beginning of period |
$ | i 3,755 | $ | i 2,953 | ||||
Rights purchased |
i 1 | i 3 | ||||||
Rights capitalized |
i 96 | i 237 | ||||||
Rights sold (a) |
i 1 | i 1 | ||||||
Changes in fair value of MSRs |
||||||||
Due to fluctuations in market interest rates (b) |
( i 38 | ) | i 368 | |||||
Due to revised assumptions or models (c) |
i 5 | ( i 27 | ) | |||||
Other changes in fair value (d) |
( i 96 | ) | ( i 103 | ) | ||||
Balance at end of period |
$ | i 3,724 | $ | i 3,432 | ||||
(a) |
MSRs sold include those having a negative fair value, resulting from the loans being severely delinquent. |
(b) |
Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits. |
(c) |
Includes changes in MSR value not caused by changes in market interest rates, such as changes in assumed cost to service, ancillary income and option adjusted spread, as well as the impact of any model changes. |
(d) |
Primarily the change in MSR value from passage of time and cash flows realized (decay), but also includes the impact of changes to expected cash flows not associated with changes in market interest rates, such as the impact of delinquencies. |
52 |
U.S. Bancorp |
| March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | Down 100 bps |
Down 50 bps |
Down 25 bps |
Up 25 bps |
Up 50 bps |
Up 100 bps |
Down 100 bps |
Down 50 bps |
Down 25 bps |
Up 25 bps |
Up 50 bps |
Up 100 bps |
||||||||||||||||||||||||||||||||||||||||
| MSR portfolio |
$ | ( i 865 | ) | $ | ( i 386 | ) | $ | ( i 178 | ) | $ | i 78 | $ | i 149 | $ | i 266 | $ | ( i 334 | ) | $ | ( i 153 | ) | $ | ( i 73 | ) | $ | i 66 | $ | i 125 | $ | i 224 | ||||||||||||||||||||||
| Derivative instrument hedges |
i 913 | i 395 | i 178 | ( i 79 | ) | ( i 152 | ) | ( i 277 | ) | i 337 | i 153 | i 73 | ( i 67 | ) | ( i 127 | ) | ( i 236 | ) | ||||||||||||||||||||||||||||||||||
| Net sensitivity |
$ | i 48 | $ | i 9 | $ | — | $ | ( i 1 | ) | $ | ( i 3 | ) | $ | ( i 11 | ) | $ | i 3 | $ | — | $ | — | $ | ( i 1 | ) | $ | ( i 2 | ) | $ | ( i 12 | ) | ||||||||||||||||||||||
| March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | HFA | Government | Conventional (d) | Total | HFA | Government | Conventional (d) | Total | ||||||||||||||||||||||||||||
| Servicing portfolio (a) |
$ | i 44,746 | $ | i 23,695 | $ | i 173,277 | $ | i 241,718 | $ | i 44,071 | $ | i 23,141 | $ | i 172,541 | $ | i 239,753 | ||||||||||||||||||||
| Fair value |
$ | i 716 | $ | i 454 | $ | i 2,554 | $ | i 3,724 | $ | i 725 | $ | i 454 | $ | i 2,576 | $ | i 3,755 | ||||||||||||||||||||
| Value (bps) (b) |
i 160 | i 192 | i 147 | i 154 | i 165 | i 196 | i 149 | i 157 | ||||||||||||||||||||||||||||
| Weighted-average servicing fees (bps) |
i 36 | i 43 | i 27 | i 30 | i 36 | i 42 | i 27 | i 30 | ||||||||||||||||||||||||||||
| Multiple (value/servicing fees) |
i 4.44 | i 4.50 | i 5.42 | i 5.08 | i 4.56 | i 4.69 | i 5.52 | i 5.20 | ||||||||||||||||||||||||||||
| Weighted-average note rate |
i 4.24 | % | i 3.92 | % | i 3.59 | % | i 3.74 | % | i 4.16 | % | i 3.81 | % | i 3.52 | % | i 3.67 | % | ||||||||||||||||||||
| Weighted-average age (in years) |
i 4.1 | i 5.5 | i 3.9 | i 4.1 | i 4.0 | i 5.7 | i 3.7 | i 3.9 | ||||||||||||||||||||||||||||
| Weighted-average expected prepayment (constant prepayment rate) |
i 8.0 | % | i 9.5 | % | i 8.4 | % | i 8.4 | % | i 7.4 | % | i 8.5 | % | i 7.8 | % | i 7.8 | % | ||||||||||||||||||||
| Weighted-average expected life (in years) |
i 8.5 | i 7.3 | i 7.3 | i 7.5 | i 8.8 | i 7.6 | i 7.5 | i 7.7 | ||||||||||||||||||||||||||||
| Weighted-average option adjusted spread (c) |
i 7.6 | % | i 6.9 | % | i 4.9 | % | i 5.7 | % | i 7.6 | % | i 6.9 | % | i 5.1 | % | i 5.8 | % | ||||||||||||||||||||
(a) |
Represents principal balance of mortgages having corresponding MSR asset. |
(b) |
Calculated as fair value divided by the servicing portfolio. |
(c) |
Option adjusted spread is the incremental spread added to the risk-free rate to reflect optionality and other risk inherent in the MSRs. |
(d) |
Represents loans sold primarily to GSEs. |
Note 8 |
Preferred Stock |
| March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | Shares Issued and Outstanding |
Liquidation Preference |
Discount | Carrying Amount |
Shares Issued and Outstanding |
Liquidation Preference |
Discount | Carrying Amount |
||||||||||||||||||||||||||||
| Series A |
i 12,510 | $ | i 1,251 | $ | i 145 | $ | i 1,106 | i 12,510 | $ | i 1,251 | $ | i 145 | $ | i 1,106 | ||||||||||||||||||||||
| Series B |
i 40,000 | i 1,000 | — | i 1,000 | i 40,000 | i 1,000 | — | i 1,000 | ||||||||||||||||||||||||||||
| Series J |
i 40,000 | i 1,000 | i 7 | i 993 | i 40,000 | i 1,000 | i 7 | i 993 | ||||||||||||||||||||||||||||
| Series K |
i 23,000 | i 575 | i 10 | i 565 | i 23,000 | i 575 | i 10 | i 565 | ||||||||||||||||||||||||||||
| Series L |
i 20,000 | i 500 | i 14 | i 486 | i 20,000 | i 500 | i 14 | i 486 | ||||||||||||||||||||||||||||
| Series M |
i 30,000 | i 750 | i 21 | i 729 | i 30,000 | i 750 | i 21 | i 729 | ||||||||||||||||||||||||||||
| Series N |
i 60,000 | i 1,500 | i 8 | i 1,492 | i 60,000 | i 1,500 | i 8 | i 1,492 | ||||||||||||||||||||||||||||
| Series O |
i 18,000 | i 450 | i 13 | i 437 | i 18,000 | i 450 | i 13 | i 437 | ||||||||||||||||||||||||||||
| Total preferred stock (a) |
i 243,510 | $ | i 7,026 | $ | i 218 | $ | i 6,808 | i 243,510 | $ | i 7,026 | $ | i 218 | $ | i 6,808 | ||||||||||||||||||||||
(a) |
The par value of all shares issued and outstanding at March 31, 2023 and December 31, 2022, was $ i i 1.00 /
per share. |
| U.S. Bancorp | 53 |
Note 9 |
Accumulated Other Comprehensive Income (Loss) |
| (Dollars in Millions) | Unrealized Gains (Losses) on Investment Securities Available-For- Sale |
Unrealized Gains (Losses) on Investment Securities Transferred From Available- For-Sale to Held-To-Maturity |
Unrealized Gains (Losses) on Derivative Hedges |
Unrealized Gains (Losses) on Retirement Plans |
Foreign Currency Translation |
Total | ||||||||||||||||||
| 2023 |
||||||||||||||||||||||||
| Balance at beginning of period |
$ | ( i 6,378 | ) | $ | ( i 3,933 | ) | $ | ( i 114 | ) | $ | ( i 939 | ) | $ | ( i 43 | ) | $ | ( i 11,407 | ) | ||||||
| Changes in unrealized gains (losses) |
i 1,305 | — | i 204 | i 1 | — | i 1,510 | ||||||||||||||||||
| Foreign currency translation adjustment (a) |
— | — | — | — | ( i 1 | ) | ( i 1 | ) | ||||||||||||||||
| Reclassification to earnings of realized (gains) losses |
i 32 | i 121 | i 7 | ( i 2 | ) | — | i 158 | |||||||||||||||||
| Applicable income taxes |
( i 328 | ) | ( i 31 | ) | ( i 54 | ) | — | — | ( i 413 | ) | ||||||||||||||
| Balance at end of period |
$ | ( i 5,369 | ) | $ | ( i 3,843 | ) | $ | i 43 | $ | ( i 940 | ) | $ | ( i 44 | ) | $ | ( i 10,153 | ) | |||||||
| 2022 |
||||||||||||||||||||||||
| Balance at beginning of period |
$ | i 540 | $ | ( i 935 | ) | $ | ( i 85 | ) | $ | ( i 1,426 | ) | $ | ( i 37 | ) | $ | ( i 1,943 | ) | |||||||
| Changes in unrealized gains (losses) |
( i 6,754 | ) | — | — | — | — | ( i 6,754 | ) | ||||||||||||||||
| Foreign currency translation adjustment (a) |
— | — | — | — | — | — | ||||||||||||||||||
| Reclassification to earnings of realized (gains) losses |
( i 18 | ) | i 42 | i 11 | i 32 | — | i 67 | |||||||||||||||||
| Applicable income taxes |
i 1,714 | ( i 11 | ) | ( i 3 | ) | ( i 8 | ) | — | i 1,692 | |||||||||||||||
| Balance at end of period |
$ | ( i 4,518) | $ | ( i 904 | ) | $ | ( i 77 | ) | $ | ( i 1,402 | ) | $ | ( i 37 | ) | $ | ( i 6,938 | ) | |||||||
(a) |
Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges. |
| Impact to Net Income | Affected Line Item in the | |||||||||
| (Dollars in Millions) | 2023 | 2022 | Consolidated Statement of Income | |||||||
| Unrealized gains (losses) on investment securities available-for-sale |
||||||||||
| Realized gains (losses) on sale of investment securities |
$ | ( i 32 | ) | $ | i 18 | Securities gains (losses), net | ||||
| i 8 | ( i 5) | Applicable income taxes | ||||||||
| ( i 24) | i 13 | Net-of-tax | ||||||||
| Unrealized gains (losses) on investment securities transferred from available-for-sale to held-to-maturity |
||||||||||
| Amortization of unrealized gains (losses) |
( i 121 | ) | ( i 42 | ) | Interest income | |||||
| i 31 | i 11 | Applicable income taxes | ||||||||
| ( i 90) | ( i 31) | Net-of-tax | ||||||||
| Unrealized gains (losses) on derivative hedges |
||||||||||
| Realized gains (losses) on derivative hedges |
( i 7 | ) | ( i 11 | ) | Interest expense | |||||
i 1 |
i 3 | Applicable income taxes | ||||||||
| ( i 6) | ( i 8) | Net-of-tax | ||||||||
| Unrealized gains (losses) on retirement plans |
||||||||||
| Actuarial gains (losses) and prior service cost (credit) amortization |
i 2 | ( i 32 | ) | Other noninterest expense | ||||||
| — | i 8 | Applicable income taxes | ||||||||
| i 2 | ( i 24) | Net-of-tax | ||||||||
| Total impact to net income |
$ | ( i 118 | ) | $ | ( i 50 | ) | ||||
54 |
U.S. Bancorp |
Note 10 |
Earnings Per Share |
| Three Months Ended March 31 |
||||||||
| (Dollars and Shares in Millions, Except Per Share Data) | 2023 | 2022 | ||||||
Net income attributable to U.S. Bancorp |
$ | i 1,698 | $ | i 1,557 | ||||
Preferred dividends |
( i 98 | ) | ( i 84 | ) | ||||
Earnings allocated to participating stock awards |
( i 8 | ) | ( i 7 | ) | ||||
Net income applicable to U.S. Bancorp common shareholders |
$ | i 1,592 | $ | i 1,466 | ||||
Average common shares outstanding |
i 1,532 | i 1,485 | ||||||
Net effect of the exercise and assumed purchase of stock awards |
— | i 1 | ||||||
Average diluted common shares outstanding |
i 1,532 | i 1,486 | ||||||
Earnings per common share |
$ | i 1.04 | $ | i .99 | ||||
Diluted earnings per common share |
$ | i 1.04 | $ | i .99 | ||||
| Options outstanding at March 31, 2023 to purchase i 1 million common shares were not included in the computation of diluted earnings per share for the three months ended March 31, 2023 because they were antidilutive. |
Note 11 |
Employee Benefits |
| Three Months Ended March 31 | ||||||||||||||||||||
| Pension Plans | Postretirement Welfare Plans |
|||||||||||||||||||
| (Dollars in Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Service cost |
$ | i 56 | $ | i 69 | $ | — | $ | — | ||||||||||||
Interest cost |
i 93 | i 61 | i 1 | — | ||||||||||||||||
Expected return on plan assets |
( i 137 | ) | ( i 119 | ) | ( i 1 | ) | — | |||||||||||||
Prior service cost (credit) amortization |
— | ( i 1 | ) | ( i 1 | ) | — | ||||||||||||||
Actuarial loss (gain) amortization |
i 1 | i 35 | ( i 2 | ) | ( i 2 | ) | ||||||||||||||
Net periodic benefit cost (a) |
$ | i 13 | $ | i 45 | $ | ( i 3 | ) | $ | ( i 2 | ) | ||||||||||
(a) |
Service cost is included in compensation and employee benefits expense on the Consolidated Statement of Income. All other components are included in other noninterest expense on the Consolidated Statement of Income. |
Note 12 |
Income Taxes |
| Three Months Ended March 31 |
||||||||
| (Dollars in Millions) | 2023 | 2022 | ||||||
Federal |
||||||||
Current |
$ | i 397 | $ | i 404 | ||||
Deferred |
( i 32 | ) | ( i 102 | ) | ||||
Federal income tax |
i 365 | i 302 | ||||||
State |
||||||||
Current |
i 96 | i 89 | ||||||
Deferred |
( i 6 | ) | i 6 | |||||
State income tax |
i 90 | i 95 | ||||||
Total income tax provision |
$ | i 455 | $ | i 397 | ||||
| U.S. Bancorp | 55 |
| Three Months Ended March 31 |
||||||||
| (Dollars in Millions) | 2023 | 2022 | ||||||
Tax at statutory rate |
$ | i 453 | $ | i 411 | ||||
State income tax, at statutory rates, net of federal tax benefit |
i 102 | i 84 | ||||||
Tax effect of |
||||||||
Tax credits and benefits, net of related expenses |
( i 77 | ) | ( i 106 | ) | ||||
Tax-exempt income |
( i 34 | ) | ( i 28 | ) | ||||
Other items |
i 11 | i 36 | ||||||
Applicable income taxes |
$ | i 455 | $ | i 397 | ||||
Note 13 |
Derivative Instruments |
56 |
U.S. Bancorp |
| March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||
| Notional Value |
Fair Value | Notional Value |
Fair Value | |||||||||||||||||||||||||
| (Dollars in Millions) | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||
| Fair value hedges |
||||||||||||||||||||||||||||
| Interest rate contracts |
||||||||||||||||||||||||||||
| Receive fixed/pay floating swaps |
$ | i 17,400 | $ | — | $ | — | $ | i 17,400 | $ | — | $ | i 9 | ||||||||||||||||
| Pay fixed/receive floating swaps |
i 13,564 | — | — | i 5,542 | — | — | ||||||||||||||||||||||
| Cash flow hedges |
||||||||||||||||||||||||||||
| Interest rate contracts |
||||||||||||||||||||||||||||
| Receive fixed/pay floating swaps |
i 18,800 | — | — | i 14,300 | — | — | ||||||||||||||||||||||
| Net investment hedges |
||||||||||||||||||||||||||||
| Foreign exchange forward contracts |
i 784 | — | i 9 | i 778 | — | — | ||||||||||||||||||||||
| Other economic hedges |
||||||||||||||||||||||||||||
| Interest rate contracts |
||||||||||||||||||||||||||||
| Futures and forwards |
||||||||||||||||||||||||||||
| Buy |
i 8,120 | i 29 | i 15 | i 3,546 | i 10 | i 18 | ||||||||||||||||||||||
| Sell |
i 6,891 | i 12 | i 32 | i 7,522 | i 20 | i 38 | ||||||||||||||||||||||
| Options |
||||||||||||||||||||||||||||
| Purchased |
i 14,109 | i 344 | — | i 11,434 | i 346 | — | ||||||||||||||||||||||
| Written |
i 10,295 | i 20 | i 159 | i 7,849 | i 7 | i 148 | ||||||||||||||||||||||
| Receive fixed/pay floating swaps |
i 8,504 | i 1 | — | i 9,215 | — | i 3 | ||||||||||||||||||||||
| Pay fixed/receive floating swaps |
i 9,190 | — | — | i 9,616 | — | — | ||||||||||||||||||||||
| Foreign exchange forward contracts |
i 1,124 | i 2 | i 7 | i 962 | i 2 | i 6 | ||||||||||||||||||||||
| Equity contracts |
i 361 | i 6 | i 7 | i 361 | — | i 10 | ||||||||||||||||||||||
| Credit contracts |
i 375 | i 1 |
— | i 330 | — | — | ||||||||||||||||||||||
| Other (a) |
i 2,140 | i 12 | i 158 | i 1,908 | i 11 | i 190 | ||||||||||||||||||||||
| Total |
$ | i 111,657 | $ | i 427 | $ | i 387 | $ | i 90,763 | $ | i 396 | $ | i 422 | ||||||||||||||||
(a) |
Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common and preferred shares of Visa Inc. The Visa swap agreements had a total notional value and fair value of $ i 1.8 billion and $ i 157
million at March 31, 2023, respectively, compared to $ i 1.8 billion and $ i 190
million at December 31, 2022, respectively. In addition, includes short-term underwriting purchase and sale commitments with total notional values of $ i 250 million at March 31, 2023, and $ i 13
million at December 31, 2022. |
| U.S. Bancorp | 57 |
| March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||
| Notional Value |
Fair Value | Notional Value |
Fair Value | |||||||||||||||||||||||||
| (Dollars in Millions) | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||
| Interest rate contracts |
||||||||||||||||||||||||||||
| Receive fixed/pay floating swaps |
$ | i 314,593 | $ | i 576 | $ | i 4,527 | $ | i 301,690 | $ | i 309 | $ | i 5,689 | ||||||||||||||||
| Pay fixed/receive floating swaps |
i 325,360 | i 2,005 | i 329 | i 316,133 | i 2,323 | i 206 | ||||||||||||||||||||||
| Other (a) |
i 53,267 | i 3 | i 32 | i 40,261 | i 3 | i 16 | ||||||||||||||||||||||
| Options |
||||||||||||||||||||||||||||
| Purchased |
i 113,374 | i 1,551 | i 9 | i 103,489 | i 1,794 | i 5 | ||||||||||||||||||||||
| Written |
i 111,689 | i 12 | i 1,545 | i 99,923 | i 6 | i 1,779 | ||||||||||||||||||||||
| Futures |
||||||||||||||||||||||||||||
| Buy |
i 417 | — | — | i 3,623 | — | i 4 | ||||||||||||||||||||||
| Sell |
— | — | — | i 2,376 | i 8 | — | ||||||||||||||||||||||
| Foreign exchange rate contracts |
||||||||||||||||||||||||||||
| Forwards, spots and swaps |
i 129,301 | i 2,638 | i 2,196 | i 134,666 | i 3,010 | i 2,548 | ||||||||||||||||||||||
| Options |
||||||||||||||||||||||||||||
| Purchased |
i 1,211 | i 28 | — | i 954 | i 22 | — | ||||||||||||||||||||||
| Written |
i 1,211 | — | i 28 | i 954 | — | i 22 | ||||||||||||||||||||||
| Credit contracts |
i 11,066 | i 1 | i 8 | i 10,765 | i 1 | i 8 | ||||||||||||||||||||||
| Total |
$ | i 1,061,489 | $ | i 6,814 | $ | i 8,674 | $ | i 1,014,834 | $ | i 7,476 | $ | i 10,277 | ||||||||||||||||
(a) |
Primarily represents floating rate interest rate swaps that pay based on differentials between specified interest rate indexes. |
| Gains (Losses) Recognized in Other Comprehensive Income (Loss) |
Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings |
|||||||||||||||||||
| (Dollars in Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
| Asset and Liability Management Positions |
||||||||||||||||||||
| Cash flow hedges |
||||||||||||||||||||
| Interest rate contracts |
$ | i 151 | $ | — | $ | ( i 6 | ) | $ | ( i 8 | ) | ||||||||||
| Net investment hedges |
||||||||||||||||||||
| Foreign exchange forward contracts |
( i 3 | ) | ( i 1 | ) | — | — | ||||||||||||||
| Non-derivative debt instruments |
( i 18 | ) | i 20 | — | — | |||||||||||||||
Note: |
The Company does not exclude components from effectiveness testing for cash flow and net investment hedges. |
| Interest Income | Interest Expense | |||||||||||||||||||
| (Dollars in Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
| Total amount of income and expense line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded |
$ | i 6,964 | $ | i 3,418 | $ | i 2,330 | $ | i 245 | ||||||||||||
| Asset and Liability Management Positions |
||||||||||||||||||||
| Fair value hedges |
||||||||||||||||||||
| Interest rate contract derivatives |
( i 178 | ) | i 517 | ( i 114 | ) | i 72 | ||||||||||||||
| Hedged items |
i 174 | ( i 518 | ) | i 114 | ( i 71 | ) | ||||||||||||||
| Cash flow hedges |
||||||||||||||||||||
| Interest rate contract derivatives |
— | — | i 7 | i 11 | ||||||||||||||||
Note: |
The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company reclassified losses of $ i 7 million and $ i 11
million into earnings during the three months ended March 31, 2023 and 2022, respectively, as a result of realized cash flows on discontinued cash flow hedges. No amounts were reclassified into earnings on discontinued cash flow hedges because it is probable the original hedged forecasted cash flows will not occur. |
58 |
U.S. Bancorp |
| Carrying Amount of the Hedged Assets and Liabilities |
Cumulative Hedging Adjustment (a) | |||||||||||||||||||
| (Dollars in Millions) | March 31, 2023 | December 31, 2022 | March 31, 2023 | December 31, 2022 | ||||||||||||||||
Line Item in the Consolidated Balance Sheet |
||||||||||||||||||||
Available-for-sale investment securities |
$ | i 13,065 | $ | i 4,937 | $ | ( i 365 | ) | $ | ( i 552 | ) | ||||||||||
Long-term debt |
i 16,644 | i 17,190 | ( i 61 | ) | ( i 142 | ) | ||||||||||||||
(a) |
The cumulative hedging adjustment related to discontinued hedging relationships on available-for-sale investment securities and long-term debt was $( i 379 ) million and $ i 366
million, respectively, at March 31, 2023, compared with $( i 392) million and $ i 399
million at December 31, 2022, respectively. |
Location of Gains (Losses) Recognized in Earnings |
||||||||||||
| (Dollars in Millions) | 2023 | 2022 | ||||||||||
Asset and Liability Management Positions |
||||||||||||
Other economic hedges |
||||||||||||
Interest rate contracts |
||||||||||||
Futures and forwards |
Mortgage banking revenue | $ | i 7 | $ | i 223 | |||||||
Purchased and written options |
Mortgage banking revenue | ( i 2 | ) | ( i 47 | ) | |||||||
Swaps |
Mortgage banking revenue | i 58 | ( i 204 | ) | ||||||||
Foreign exchange forward contracts |
Other noninterest income | ( i 5 | ) | ( i 3 | ) | |||||||
Equity contracts |
Compensation expense | ( i 3 | ) | ( i 2 | ) | |||||||
Other |
Other noninterest income | ( i 2 | ) | ( i 1 | ) | |||||||
Customer-Related Positions |
||||||||||||
Interest rate contracts |
||||||||||||
Swaps |
Commercial products revenue | i 52 | i 17 | |||||||||
Purchased and written options |
Commercial products revenue | — | i 4 | |||||||||
Futures |
Commercial products revenue | ( i 1 | ) | i 16 | ||||||||
Foreign exchange rate contracts |
||||||||||||
Forwards, spots and swaps |
Commercial products revenue | i 28 | i 15 | |||||||||
Credit contracts |
Commercial products revenue | — | i 5 | |||||||||
Note 14 |
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities | |
| U.S. Bancorp | 59 |
60 |
U.S. Bancorp |
| (Dollars in Millions) | Overnight and Continuous |
Less Than 30 Days |
30-89 Days |
Greater Than 90 Days |
Total | |||||||||||||||
Repurchase agreements |
||||||||||||||||||||
U.S. Treasury and agencies |
$ |
i 1,538 | $— | $— | $— | $ | i 1,538 | |||||||||||||
Residential agency mortgage-backed securities |
i 593 | — | — | — | i 593 | |||||||||||||||
Corporate debt securities |
i 1,011 | — | — | — | i 1,011 | |||||||||||||||
Total repurchase agreements |
i 3,142 | — | — | — | i 3,142 | |||||||||||||||
Securities loaned |
||||||||||||||||||||
Corporate debt securities |
i 203 | — | — | — | i 203 | |||||||||||||||
Total securities loaned |
i 203 | — | — | — | i 203 | |||||||||||||||
Gross amount of recognized liabilities |
$ | i 3,345 | $— | $ | — | $— | $ | i 3,345 | ||||||||||||
Repurchase agreements |
||||||||||||||||||||
U.S. Treasury and agencies |
$ | i 147 | $— | $ — | $— | $ | i 147 | |||||||||||||
Residential agency mortgage-backed securities |
i 846 | — | — | — | i 846 | |||||||||||||||
Corporate debt securities |
i 439 | — | — | — | i 439 | |||||||||||||||
Total repurchase agreements |
i 1,432 | — | — | — | i 1,432 | |||||||||||||||
Securities loaned |
||||||||||||||||||||
Corporate debt securities |
i 120 | — | — | — | i 120 | |||||||||||||||
Total securities loaned |
i 120 | — | — | — | i 120 | |||||||||||||||
Gross amount of recognized liabilities |
$ | i 1,552 | $— | $— | $— | $ | i 1,552 | |||||||||||||
| (Dollars in Millions) | Gross Recognized Assets |
Gross Amounts Offset on the Consolidated Balance Sheet (a) |
Net Amounts Presented on the Consolidated Balance Sheet |
Gross Amounts Not Offset on the Consolidated Balance Sheet |
Net Amount | |||||||||||||||||||
| Financial Instruments (b) |
Collateral Received (c) |
|||||||||||||||||||||||
Derivative assets (d) |
$ | i 7,204 | $ | ( i 4,261 | ) | $ | i 2,943 | $ | ( i 182 | ) | $ | ( i 1 | ) | $ | i 2,760 | |||||||||
Reverse repurchase agreements |
i 1,639 | — | i 1,639 | ( i 473 | ) | ( i 1,166 | ) | — | ||||||||||||||||
Securities borrowed |
i 1,760 | — | i 1,760 | — | ( i 1,712 | ) | i 48 | |||||||||||||||||
Total |
$ | i 10,603 | $ | ( i 4,261 | ) | $ | i 6,342 | $ | ( i 655 | ) | $ | ( i 2,879 | ) | $ | i 2,808 | |||||||||
Derivative assets (d) |
$ | i 7,852 | $ | ( i 5,427 | ) | $ | i 2,425 | $ | ( i 231 | ) | $ | ( i 80 | ) | $ | i 2,114 | |||||||||
Reverse repurchase agreements |
i 107 | — | i 107 | ( i 102 | ) | ( i 5 | ) | — | ||||||||||||||||
Securities borrowed |
i 1,606 | — | i 1,606 | — | ( i 1,548 | ) | i 58 | |||||||||||||||||
Total |
$ | i 9,565 | $ | ( i 5,427 | ) | $ | i 4,138 | $ | ( i 333 | ) | $ | ( i 1,633 | ) | $ | i 2,172 | |||||||||
(a) |
Includes $ i 2.2 billion and $ i 3.0 billion
of cash collateral related payables that were netted against derivative assets at March 31, 2023 and December 31, 2022, respectively. |
(b) |
For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any repurchase agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in the event of counterparty default. |
(c) |
Includes the fair value of securities received by the Company from the counterparty. These securities are not included on the Consolidated Balance Sheet unless the counterparty defaults. |
(d) |
Excludes $ i 37 million and $ i 20 million at March 31,
2023 and December 31, 2022, respectively, of derivative assets not subject to netting arrangements. |
| U.S. Bancorp | 61 |
| (Dollars in Millions) | Gross Recognized Liabilities |
Gross Amounts Offset on the Consolidated Balance Sheet (a) |
Net Amounts Presented on the Consolidated Balance Sheet |
Gross Amounts Not Offset on the Consolidated Balance Sheet |
Net Amount | |||||||||||||||||||
| Financial Instruments (b) |
Collateral Pledged (c) |
|||||||||||||||||||||||
Derivative liabilities (d) |
$ | i 8,902 | $ | ( i 3,810 | ) | $ | i 5,092 | $ | ( i 182 | ) | $ | — | $ | i 4,910 | ||||||||||
Repurchase agreements |
i 3,142 | — | i 3,142 | ( i 473 | ) | ( i 2,669 | ) | — | ||||||||||||||||
Securities loaned |
i 203 | — | i 203 | — | ( i 200 | ) | i 3 | |||||||||||||||||
Total |
$ | i 12,247 | $ | ( i 3,810 | ) | $ | i 8,437 | $ | ( i 655 | ) | $ | ( i 2,869 | ) | $ | i 4,913 | |||||||||
Derivative liabilities (d) |
$ | i 10,506 | $ | ( i 4,551 | ) | $ | i 5,955 | $ | ( i 231 | ) | $ | — | $ | i 5,724 | ||||||||||
Repurchase agreements |
i 1,432 | — | i 1,432 | ( i 102 | ) | ( i 1,325 | ) | i 5 | ||||||||||||||||
Securities loaned |
i 120 | — | i 120 | — | ( i 118 | ) | i 2 | |||||||||||||||||
Total |
$ | i 12,058 | $ | ( i 4,551 | ) | $ | i 7,507 | $ | ( i 333 | ) | $ | ( i 1,443 | ) | $ | i 5,731 | |||||||||
(a) |
Includes $ i 1.8 billion and $ i 2.1 billion
of cash collateral related receivables that were netted against derivative liabilities at March 31, 2023 and December 31, 2022, respectively. |
(b) |
For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse repurchase agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be offset in the event of counterparty default. |
(c) |
Includes the fair value of securities pledged by the Company to the counterparty. These securities are included on the Consolidated Balance Sheet unless the Company defaults. |
(d) |
Excludes $ i 159 million and $ i 193
million at March 31, 2023 and December 31, 2022, respectively, of derivative liabilities not subject to netting arrangements. |
Note 15 |
Fair Values of Assets and Liabilities |
| • | Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 1 includes U.S. Treasury securities, as well as exchange-traded instruments. |
| • | Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 includes debt securities that are traded less frequently than exchange-traded instruments and which are typically valued using third party pricing services; derivative contracts and other assets and liabilities, including securities, whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data; and MLHFS whose values are determined using quoted prices for similar assets or pricing models with inputs that are observable in the market
or can be corroborated by observable market data. |
| • | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category includes MSRs and certain derivative contracts. |
62 |
U.S. Bancorp |
| U.S. Bancorp | 63 |
| Minimum | Maximum | Weighted- Average (a) |
||||||||||
Expected prepayment |
i 6 | % | i 20 | % | i 9 | % | ||||||
Option adjusted spread |
i 5 | i 11 | i 6 | |||||||||
(a) |
Determined based on the relative fair value of the related mortgage loans serviced. |
| Minimum | Maximum | Weighted- Average (a) |
||||||||||
Expected loan close rate |
i 1 | % | i 100 | % | i 76 | % | ||||||
Inherent MSR value (basis points per loan) |
i 21 | i 178 | i 100 | |||||||||
(a) |
Determined based on the relative fair value of the related mortgage loans. |
64 |
U.S. Bancorp |
| (Dollars in Millions) | Level 1 | Level 2 | Level 3 | Netting | Total | |||||||||||||||
Available-for-sale securities |
||||||||||||||||||||
U.S. Treasury and agencies |
$ | i 12,539 | $ | i 5,515 | $ |
i — | $ | i — | $ | i 18,054 | ||||||||||
Mortgage-backed securities |
||||||||||||||||||||
Residential agency |
i — | i 26,145 | i — | i — | i 26,145 | |||||||||||||||
Commercial |
||||||||||||||||||||
Agency |
i — | i 7,300 | i — | i — | i 7,300 | |||||||||||||||
Non-agency |
i — | i 7 | i — | i — | i 7 | |||||||||||||||
Asset-backed securities |
i — | i 3,807 | i — | i — | i 3,807 | |||||||||||||||
Obligations of state and political subdivisions |
i — | i 10,173 | i 1 | i — | i 10,174 | |||||||||||||||
Other |
i — | i 4 | i — | i — | i 4 | |||||||||||||||
Total available-for-sale |
i 12,539 | i 52,951 | i 1 | i — | i 65,491 | |||||||||||||||
Mortgage loans held for sale |
i — | i 1,990 | i — | i — | i 1,990 | |||||||||||||||
Mortgage servicing rights |
i — | i — | i 3,724 | i — | i 3,724 | |||||||||||||||
Derivative assets |
i 3 | i 5,954 | i 1,284 | ( i 4,261 | ) | i 2,980 | ||||||||||||||
Other assets |
i 296 | i 2,087 | i — | i — | i 2,383 | |||||||||||||||
Total |
$ | i 12,838 | $ | i 62,982 | $ | i 5,009 | $ | ( i 4,261 | ) | $ | i 76,568 | |||||||||
Derivative liabilities |
$ | i — | $ | i 5,512 | $ | i 3,549 | $ | ( i 3,810 | ) | $ | i 5,251 | |||||||||
Short-term borrowings and other liabilities (a) |
i 334 | i 1,723 | i — | i — | i 2,057 | |||||||||||||||
Total |
$ | i 334 | $ | i 7,235 | $ | i 3,549 | $ | ( i 3,810 | ) | $ | i 7,308 | |||||||||
Available-for-sale securities |
||||||||||||||||||||
U.S. Treasury and agencies |
$ | i 13,723 | $ | i 8,310 | $ | i — | $ | i — | $ | i 22,033 | ||||||||||
Mortgage-backed securities |
||||||||||||||||||||
Residential agency |
i — | i 29,271 | i — | i — | i 29,271 | |||||||||||||||
Commercial |
||||||||||||||||||||
Agency |
i — | i 7,145 | i — | i — | i 7,145 | |||||||||||||||
Non-agency |
i — | i 7 | i — | i — | i 7 | |||||||||||||||
Asset-backed securities |
i — | i 4,323 | i — | i — | i 4,323 | |||||||||||||||
Obligations of state and political subdivisions |
i — | i 10,124 | i 1 | i — | i 10,125 | |||||||||||||||
Other |
i — | i 6 | i — | i — | i 6 | |||||||||||||||
Total available-for-sale |
i 13,723 | i 59,186 | i 1 | i — | i 72,910 | |||||||||||||||
Mortgage loans held for sale |
i — | i 1,849 | i — | i — | i 1,849 | |||||||||||||||
Mortgage servicing rights |
i — | i — | i 3,755 | i — | i 3,755 | |||||||||||||||
Derivative assets |
i 9 | i 6,608 | i 1,255 | ( i 5,427 | ) | i 2,445 | ||||||||||||||
Other assets |
i 248 | i 1,756 | i — | i — | i 2,004 | |||||||||||||||
Total |
$ | i 13,980 | $ | i 69,399 | $ | i 5,011 | $ | ( i 5,427 | ) | $ | i 82,963 | |||||||||
Derivative liabilities |
$ | i 4 | $ | i 6,241 | $ | i 4,454 | $ | ( i 4,551 | ) | $ | i 6,148 | |||||||||
Short-term borrowings and other liabilities (a) |
i 125 | i 1,564 | i — | i — | i 1,689 | |||||||||||||||
Total |
$ | i 129 | $ | i 7,805 | $ | i 4,454 | $ | ( i 4,551 | ) | $ | i 7,837 | |||||||||
Note: |
Excluded from the table above are equity investments without readily determinable fair values. The Company has elected to carry these investments at historical cost, adjusted for impairment and any changes resulting from observable price changes for identical or similar investments of the issuer. The aggregate carrying amount of these equity investments was $ i 106 million and $ i 104
million at March 31, 2023 and December 31, 2022, respectively. The Company has not recorded impairments or adjustments for observable price changes on these equity investments during the first three months of 2023 and 2022, or on a cumulative basis. |
(a) |
Primarily represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance. |
| U.S. Bancorp | 65 |
(Dollars in Millions) |
Beginning of Period Balance |
Net Gains (Losses) Included in Net Income |
Purchases |
Sales |
Issuances |
Settlements |
End of Period Balance |
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period |
||||||||||||||||||||||||
2023 |
||||||||||||||||||||||||||||||||
Available-for-sale securities |
||||||||||||||||||||||||||||||||
Obligations of state and political subdivisions |
$ |
i 1 |
$ |
i — |
$ |
i — |
$ |
i — |
$ |
i — |
$ |
i — |
$ |
i 1 |
$ |
i — |
||||||||||||||||
Total available-for-sale |
i 1 |
i — |
i — |
i — |
i — |
i — |
i 1 |
i — |
||||||||||||||||||||||||
Mortgage servicing rights |
i 3,755 |
( i 129 |
) (a) |
i 1 |
i 1 |
i 96 |
(c) |
i — |
i 3,724 |
( i 129 |
) (a) | |||||||||||||||||||||
Net derivative assets and liabilities |
( i 3,199 |
) |
( i 316 |
) (b) |
i 423 |
( i 12 |
) |
i — |
i 839 |
( i 2,265 |
) |
i 529 |
(d) | |||||||||||||||||||
2022 |
||||||||||||||||||||||||||||||||
Available-for-sale securities |
||||||||||||||||||||||||||||||||
Asset-backed securities |
$ |
i 7 |
$ |
i — |
$ |
i — |
$ |
i — |
$ |
i — |
$ |
i — |
$ |
i 7 |
$ |
i — |
||||||||||||||||
Obligations of state and political subdivisions |
i 1 |
i — |
i — |
i — |
i — |
i — |
i 1 |
i — |
||||||||||||||||||||||||
Total available-for-sale |
i 8 |
i — |
i — |
i — |
i — |
i — |
i 8 |
i — |
||||||||||||||||||||||||
Mortgage servicing rights |
i 2,953 |
i 238 |
(a) |
i 3 |
i 1 |
i 237 |
(c) |
i — |
i 3,432 |
i 238 |
(a) | |||||||||||||||||||||
Net derivative assets and liabilities |
i 799 |
( i 1,867 |
) (e) |
i 11 |
( i 1 |
) |
i — |
i 47 |
( i 1,011 |
) |
( i 1,697 |
) (f) | ||||||||||||||||||||
(a) |
Included in mortgage banking revenue. |
(b) |
Approximately $ i 51 million, $( i 365)
million and $( i 2) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
|
(c) |
Represents MSRs capitalized during the period. |
(d) |
Approximately $ i 22 million, $ i 509
m illion and $( i 2) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. |
(e) |
Approximately $( i 83) million, $( i 1.8)
billion and $( i 1) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. |
(f) |
Approximately $( i 24) million, $( i 1.7)
billion and $( i 1) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively. |
| March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||
| (Dollars in Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Loans (a) |
$ | i — | $ | i — | $ | i 107 | $ | i 107 | $ | i — | $ | i — | $ | i 97 | $ | i 97 | ||||||||||||||||
Other assets (b) |
i — | i — | i 2 | i 2 | i — | i — | i 21 | i 21 | ||||||||||||||||||||||||
(a) |
Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off. |
(b) |
Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition. |
| (Dollars in Millions) | 2023 | 2022 | ||||||
Loans (a) |
$ | i 142 | $ | i 11 | ||||
Other assets (b) |
i 1 | i 1 | ||||||
(a) |
Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off. |
(b) |
Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition. |
66 |
U.S. Bancorp |
| March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||
| (Dollars in Millions) | Fair Value Carrying Amount |
Aggregate Unpaid Principal |
Carrying Amount Over (Under) Unpaid Principal |
Fair Value Carrying Amount |
Aggregate Unpaid Principal |
Carrying Amount Over (Under) Unpaid Principal |
||||||||||||||||||||||
| Total loans |
$ | i 1,990 | $ | i 1,988 | $ | i 2 | $ | i 1,849 | $ | i 1,848 | $ | i 1 | ||||||||||||||||
| Nonaccrual loans |
i 1 | i 1 | i — | i 1 | i 1 | i — | ||||||||||||||||||||||
| Loans 90 days or more past due |
i 2 | i 2 | i — | i 1 | i 1 | i — | ||||||||||||||||||||||
| March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Carrying Amount |
Fair Value | Carrying Amount |
Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||||
| Financial Assets |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks |
$ | i 67,228 | $ | i 67,228 | $ | i — | $ | i — | $ | i 67,228 | $ | i 53,542 | $ | i 53,542 | $ | i — | $ | i — | $ | i 53,542 | ||||||||||||||||||||||||||||||||
| Federal funds sold and securities purchased under resale agreements |
i 1,698 | i — | i 1,698 | i — | i 1,698 | i 356 | i — | i 356 | i — | i 356 | ||||||||||||||||||||||||||||||||||||||||||
| Investment securities held-to-maturity |
i 88,462 | i 1,307 | i 77,569 | i — | i 78,876 | i 88,740 | i 1,293 | i 76,581 | i — | i 77,874 | ||||||||||||||||||||||||||||||||||||||||||
| Loans held for sale (a) |
i 391 | i — | i — | i 391 | i 391 | i 351 | i — | i — | i 351 | i 351 | ||||||||||||||||||||||||||||||||||||||||||
| Loans |
i 380,846 | i — | i — | i 372,857 | i 372,857 | i 381,277 | i — | i — | i 368,874 | i 368,874 | ||||||||||||||||||||||||||||||||||||||||||
| Other (b) |
i 3,894 | i — | i 3,143 | i 751 | i 3,894 | i 2,962 | i — | i 2,224 | i 738 | i 2,962 | ||||||||||||||||||||||||||||||||||||||||||
| Financial Liabilities |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time deposits |
i 37,515 | i — | i 37,264 | i — | i 37,264 | i 32,946 | i — | i 32,338 | i — | i 32,338 | ||||||||||||||||||||||||||||||||||||||||||
| Short-term borrowings (c) |
i 54,818 | i — | i 54,418 | i — | i 54,418 | i 29,527 | i — | i 29,145 | i — | i 29,145 | ||||||||||||||||||||||||||||||||||||||||||
| Long-term debt |
i 42,045 | i — | i 39,960 | i — | i 39,960 | i 39,829 | i — | i 37,622 | i — | i 37,622 | ||||||||||||||||||||||||||||||||||||||||||
| Other (d) |
i 5,351 | i — | i 1,461 | i 3,890 | i 5,351 | i 5,137 | i — | i 1,500 | i 3,637 | i 5,137 | ||||||||||||||||||||||||||||||||||||||||||
(a) |
Excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected. |
(b) |
Includes investments in Federal Reserve Bank and Federal Home Loan Bank stock and tax-advantaged investments. |
(c) |
Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance. |
(d) |
Includes operating lease liabilities and liabilities related to tax-advantaged investments. |
| U.S. Bancorp | 67 |
Note 16 |
Guarantees and Contingent Liabilities |
| (Dollars in Millions) | Collateral Held |
Carrying Amount |
Maximum Potential Future Payments |
|||||||||
| Standby letters of credit |
$ | i — | $ | i 21 | $ | i 10,699 | ||||||
| Third party borrowing arrangements |
i — | i — | i 11 | |||||||||
| Securities lending indemnifications |
i 9,778 | i — | i 9,679 | |||||||||
| Asset sales |
i — | i 100 | i 8,221 | (a) | ||||||||
| Merchant processing |
i 930 | i 134 | i 136,979 | |||||||||
| Tender option bond program guarantee |
i 1,308 | i — | i 1,280 | |||||||||
| Other |
i — | i 21 | i 2,005 | |||||||||
(a) |
The maximum potential future payments do not include loan sales where the Company provides standard representation and warranties to the buyer against losses related to loan underwriting documentation defects that may have existed at the time of sale that generally are identified after the occurrence of a triggering event such as delinquency. For these types of loan sales, the maximum potential future payments is generally the unpaid principal balance of loans sold measured at the end of the current reporting period. Actual losses will be significantly less than the maximum exposure, as only a fraction of loans sold will have a representation and warranty breach, and any losses on repurchase would generally be mitigated by any collateral held against the loans. |
68 |
U.S. Bancorp |
| U.S. Bancorp | 69 |
Note 17 |
Business Segments |
70 |
U.S. Bancorp |
| U.S. Bancorp | 71 |
| Corporate and Commercial Banking |
Consumer and Business Banking |
Wealth Management and Investment Services |
||||||||||||||||||||||||||||||
| (Dollars in Millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
| Condensed Income Statement |
||||||||||||||||||||||||||||||||
| Net interest income (taxable-equivalent basis) |
$ | i 1,081 | $ | i 746 | $ | i 2,315 | $ | i 1,500 | $ | i 488 | $ | i 276 | ||||||||||||||||||||
| Noninterest income |
i 309 | i 247 | i 397 | i 454 | i 700 | i 595 | ||||||||||||||||||||||||||
| Total net revenue |
i 1,390 | i 993 | i 2,712 | i 1,954 | i 1,188 | i 871 | ||||||||||||||||||||||||||
| Noninterest expense |
i 613 | i 444 | i 1,776 | i 1,398 | i 668 | i 558 | ||||||||||||||||||||||||||
| Income (loss) before provision and income taxes |
i 777 | i 549 | i 936 | i 556 | i 520 | i 313 | ||||||||||||||||||||||||||
| Provision for credit losses |
i 3 | i 5 | i 13 | i 48 | ( i 12 | ) | i 8 | |||||||||||||||||||||||||
| Income (loss) before income taxes |
i 774 | i 544 | i 923 | i 508 | i 532 | i 305 | ||||||||||||||||||||||||||
| Income taxes and taxable-equivalent adjustment |
i 194 | i 136 | i 231 | i 126 | i 133 | i 76 | ||||||||||||||||||||||||||
| Net income (loss) |
i 580 | i 408 | i 692 | i 382 | i 399 | i 229 | ||||||||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests |
i – | i – | i – | i – | i – | i – | ||||||||||||||||||||||||||
| Net income (loss) attributable to U.S. Bancorp |
$ | i 580 | $ | i 408 | $ | i 692 | $ | i 382 | $ | i 399 | $ | i 229 | ||||||||||||||||||||
| Average Balance Sheet |
||||||||||||||||||||||||||||||||
| Loans |
$ | i 150,436 | $ | i 115,867 | $ | i 170,132 | $ | i 140,429 | $ | i 24,335 | $ | i 20,707 | ||||||||||||||||||||
| Other earning assets |
i 5,768 | i 4,676 | i 2,179 | i 4,383 | i 380 | i 241 | ||||||||||||||||||||||||||
| Goodwill |
i 2,824 | i 1,912 | i 4,491 | i 3,261 | i 1,787 | i 1,761 | ||||||||||||||||||||||||||
| Other intangible assets |
i 592 | i 4 | i 5,594 | i 3,176 | i 442 | i 265 | ||||||||||||||||||||||||||
| Assets |
i 170,976 | i 127,891 | i 187,860 | i 156,953 | i 28,625 | i 24,421 | ||||||||||||||||||||||||||
| Noninterest-bearing deposits |
i 58,447 | i 63,010 | i 43,496 | i 31,265 | i 21,896 | i 27,429 | ||||||||||||||||||||||||||
| Interest-bearing deposits |
i 105,011 | i 87,010 | i 185,400 | i 165,885 | i 83,619 | i 70,402 | ||||||||||||||||||||||||||
| Total deposits |
i 163,458 | i 150,020 | i 228,896 | i 197,150 | i 105,515 | i 97,831 | ||||||||||||||||||||||||||
| Total U.S. Bancorp shareholders’ equity |
i 17,350 | i 13,729 | i 16,704 | i 12,214 | i 4,106 | i 3,593 | ||||||||||||||||||||||||||
| Payment Services |
Treasury and Corporate Support |
Consolidated Company |
||||||||||||||||||||||||||||||
| (Dollars in Millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
| Condensed Income Statement |
||||||||||||||||||||||||||||||||
| Net interest income (taxable-equivalent basis) |
$ | i 651 | $ | i 622 | $ | i 133 | $ | i 56 | $ | i 4,668 | $ | i 3,200 | ||||||||||||||||||||
| Noninterest income |
i 937 | (a) | i 857 | (a) | i 164 | i 243 | i 2,507 | (b) | i 2,396 | (b) | ||||||||||||||||||||||
| Total net revenue |
i 1,588 | i 1,479 | i 297 | i 299 | i 7,175 | (c) | i 5,596 | (c) | ||||||||||||||||||||||||
| Noninterest expense |
i 915 | i 849 | i 583 | i 253 | i 4,555 | i 3,502 | ||||||||||||||||||||||||||
| Income (loss) before provision and income taxes |
i 673 | i 630 | ( i 286 | ) | i 46 | i 2,620 | i 2,094 | |||||||||||||||||||||||||
| Provision for credit losses |
i 226 | i 130 | i 197 | ( i 79 | ) | i 427 | i 112 | |||||||||||||||||||||||||
| Income (loss) before income taxes |
i 447 | i 500 | ( i 483 | ) | i 125 | i 2,193 | i 1,982 | |||||||||||||||||||||||||
| Income taxes and taxable-equivalent adjustment |
i 112 | i 125 | ( i 181 | ) | ( i 39 | ) | i 489 | i 424 | ||||||||||||||||||||||||
| Net income (loss) |
i 335 | i 375 | ( i 302 | ) | i 164 | i 1,704 | i 1,558 | |||||||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests |
i – | i – | ( i 6 | ) | ( i 1 | ) | ( i 6 | ) | ( i 1 | ) | ||||||||||||||||||||||
| Net income (loss) attributable to U.S. Bancorp |
$ | i 335 | $ | i 375 | $ | ( i 308 | ) | $ | i 163 | $ | i 1,698 | $ | i 1,557 | |||||||||||||||||||
| Average Balance Sheet |
||||||||||||||||||||||||||||||||
| Loans |
$ | i 36,935 | $ | i 31,740 | $ | i 4,912 | $ | i 4,223 | $ | i 386,750 | $ | i 312,966 | ||||||||||||||||||||
| Other earning assets |
i 302 | i 1,023 | i 212,235 | i 206,548 | i 220,864 | i 216,871 | ||||||||||||||||||||||||||
| Goodwill |
i 3,320 | i 3,325 | i – | i – | i 12,422 | i 10,259 | ||||||||||||||||||||||||||
| Other intangible assets |
i 385 | i 464 | i 36 | i – | i 7,049 | i 3,909 | ||||||||||||||||||||||||||
| Assets |
i 42,860 | i 38,499 | i 235,126 | i 229,638 | i 665,447 | i 577,402 | ||||||||||||||||||||||||||
| Noninterest-bearing deposits |
i 3,184 | i 3,673 | i 2,718 | i 2,586 | i 129,741 | i 127,963 | ||||||||||||||||||||||||||
| Interest-bearing deposits |
i 108 | i 160 | i 6,445 | i 2,756 | i 380,583 | i 326,213 | ||||||||||||||||||||||||||
| Total deposits |
i 3,292 | i 3,833 | i 9,163 | i 5,342 | i 510,324 | i 454,176 | ||||||||||||||||||||||||||
| Total U.S. Bancorp shareholders’ equity |
i 8,968 | i 8,017 | i 5,539 | i 15,913 | i 52,667 | i 53,466 | ||||||||||||||||||||||||||
(a) |
Presented net of related rewards and rebate costs and certain partner payments of $ i 717 million and $ i 671
million for the three months ended March 31, 2023 and 2022, respectively. |
(b) |
Includes revenue generated from certain contracts with customers of $ i 2.1 billion and $ i 1.9
billion for the three months ended March 31, 2023 and 2022, respectively. |
(c) |
The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Under these arrangements, the Company recorded $ i 183 million and $ i 204
million of revenue for the three months ended March 31, 2023 and 2022, respectively, primarily consisting of interest income on sales-type and direct financing leases. |
72 |
U.S. Bancorp |
Note 18 |
Subsequent Events |
| U.S. Bancorp | 73 |
For the Three Months Ended March 31 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 |
2022 |
2023 v 2022 |
||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) (Unaudited) |
Average Balances |
Interest |
Yields and Rates |
Average Balances |
Interest |
Yields and Rates |
% Change Average Balances |
|||||||||||||||||||||||||||||||||||||||||||||
| Assets |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment securities |
$ |
166,125 |
$ |
1,094 |
2.64 |
% |
$ |
174,762 |
$ |
736 |
1.68 |
% |
(4.9 |
)% | ||||||||||||||||||||||||||||||||||||||
| Loans held for sale |
2,461 |
31 |
5.10 |
5,479 |
60 |
4.40 |
(55.1 |
) | ||||||||||||||||||||||||||||||||||||||||||||
| Loans (b) |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial |
135,683 |
1,997 |
5.96 |
112,822 |
629 |
2.26 |
20.3 |
|||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate |
55,595 |
803 |
5.86 |
39,084 |
295 |
3.06 |
42.2 |
|||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgages |
116,287 |
1,050 |
3.62 |
77,449 |
612 |
3.17 |
50.1 |
|||||||||||||||||||||||||||||||||||||||||||||
| Credit card |
25,569 |
800 |
12.69 |
21,842 |
562 |
10.44 |
17.1 |
|||||||||||||||||||||||||||||||||||||||||||||
| Other retail |
53,616 |
642 |
4.86 |
61,769 |
509 |
3.34 |
(13.2 |
) | ||||||||||||||||||||||||||||||||||||||||||||
| Total loans |
386,750 |
5,292 |
5.53 |
312,966 |
2,607 |
3.37 |
23.6 |
|||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits with banks |
43,305 |
488 |
4.57 |
29,851 |
14 |
.19 |
45.1 |
|||||||||||||||||||||||||||||||||||||||||||||
| Other earning assets |
8,973 |
94 |
4.23 |
6,779 |
28 |
1.68 |
32.4 |
|||||||||||||||||||||||||||||||||||||||||||||
| Total earning assets |
607,614 |
6,999 |
4.65 |
529,837 |
3,445 |
2.62 |
14.7 |
|||||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan losses |
(6,944 |
) |
(5,701 |
) |
(21.8 |
) | ||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized gain (loss) on investment securities |
(7,519 |
) |
(2,551 |
) |
* |
|||||||||||||||||||||||||||||||||||||||||||||||
| Other assets |
72,296 |
55,817 |
29.5 |
|||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets |
$ |
665,447 |
$ |
577,402 |
15.2 |
|||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities and Shareholders’ Equity |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits |
$ |
129,741 |
$ |
127,963 |
1.4 |
% | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest checking |
129,350 |
283 |
.89 |
115,062 |
9 |
.03 |
12.4 |
|||||||||||||||||||||||||||||||||||||||||||||
| Money market savings |
146,970 |
979 |
2.70 |
119,588 |
52 |
.18 |
22.9 |
|||||||||||||||||||||||||||||||||||||||||||||
| Savings accounts |
68,827 |
13 |
.07 |
66,978 |
2 |
.01 |
2.8 |
|||||||||||||||||||||||||||||||||||||||||||||
| Time deposits |
35,436 |
230 |
2.64 |
24,585 |
17 |
.28 |
44.1 |
|||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits |
380,583 |
1,505 |
1.60 |
326,213 |
80 |
.10 |
16.7 |
|||||||||||||||||||||||||||||||||||||||||||||
| Short-term borrowings |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Federal funds purchased |
904 |
10 |
4.44 |
1,236 |
— |
.04 |
(26.9 |
) | ||||||||||||||||||||||||||||||||||||||||||||
| Securities sold under agreements to repurchase |
2,481 |
19 |
3.11 |
1,895 |
1 |
.03 |
30.9 |
|||||||||||||||||||||||||||||||||||||||||||||
| Commercial paper |
8,251 |
54 |
2.67 |
6,473 |
— |
.01 |
27.5 |
|||||||||||||||||||||||||||||||||||||||||||||
| Other short-term borrowings |
24,831 |
367 |
6.00 |
9,434 |
20 |
.21 |
* |
|||||||||||||||||||||||||||||||||||||||||||||
| Total short-term borrowings |
36,467 |
450 |
5.01 |
19,038 |
21 |
.46 |
91.5 |
|||||||||||||||||||||||||||||||||||||||||||||
| Long-term debt |
41,024 |
376 |
3.71 |
32,972 |
144 |
1.77 |
24.4 |
|||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities |
458,074 |
2,331 |
2.06 |
378,223 |
245 |
.26 |
21.1 |
|||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities |
24,500 |
17,282 |
41.8 |
|||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred equity |
6,808 |
6,619 |
2.9 |
|||||||||||||||||||||||||||||||||||||||||||||||||
| Common equity |
45,859 |
46,847 |
(2.1 |
) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total U.S. Bancorp shareholders’ equity |
52,667 |
53,466 |
(1.5 |
) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests |
465 |
468 |
(.6 |
) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total equity |
53,132 |
53,934 |
(1.5 |
) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and equity |
$ |
665,447 |
$ |
577,402 |
15.2 |
|||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income |
$ |
4,668 |
$ |
3,200 |
||||||||||||||||||||||||||||||||||||||||||||||||
| Gross interest margin |
2.59 |
% |
2.36 |
% |
||||||||||||||||||||||||||||||||||||||||||||||||
| Gross interest margin without taxable-equivalent increments |
2.57 |
% |
2.34 |
% |
||||||||||||||||||||||||||||||||||||||||||||||||
| Percent of Earning Assets |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income |
4.65 |
% |
2.62 |
% |
||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense |
1.55 |
.18 |
||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest margin |
3.10 |
% |
2.44 |
% |
||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest margin without taxable-equivalent increments |
3.08 |
% |
2.42 |
% |
||||||||||||||||||||||||||||||||||||||||||||||||
* |
Not meaningful |
(a) |
Interest and rates are presented on a fully taxable-equivalent basis based on a federal income tax rate of 21 percent. |
(b) |
Interest income and rates on loans include loan fees. Nonaccrual loans are included in average loan balances. |
74 |
U.S. Bancorp |
| U.S. Bancorp | 75 |
| U.S. BANCORP | ||||||
| By: | /s/ L ISA R. STARK | |||||
| Dated: May 8, 2023 | Lisa R. Stark Controller (Principal Accounting Officer and Duly Authorized Officer) | |||||
76 |
U.S. Bancorp |
| (1) | I have reviewed this Quarterly Report on Form 10-Q of U.S. Bancorp; |
| (2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| (3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
| (4) | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
| (a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
| (d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| (5) | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| (a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
| (b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| / S / ANDREW CECERE |
| Andrew Cecere |
Chief Executive Officer |
| U.S. Bancorp | 77 |
| (1) | I have reviewed this Quarterly Report on Form 10-Q of U.S. Bancorp; |
| (2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| (3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
| (4) | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
| (a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
| (d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| (5) | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| (a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
| (b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| /s/ T ERRANCE R. DOLAN |
Terrance R. Dolan Chief Financial Officer |
78 |
U.S. Bancorp |
| (1) | The Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
| (2) | The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company. |
| /s/ A NDREW CECERE |
/s/ T ERRANCE R. DOLAN | |||
Andrew Cecere Chief Executive Officer Dated: May 8, 2023 |
Terrance R. Dolan Chief Financial Officer | |||
| U.S. Bancorp | 79 |
 |
This report has been produced on recycled paper.  |
| This ‘10-Q’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| 12/1/27 | ||||
| 12/31/24 | ||||
| 6/7/24 | ||||
| 12/31/23 | ||||
| 6/30/23 | ||||
| Filed on: | 5/8/23 | |||
| 4/30/23 | ||||
| For Period end: | 3/31/23 | |||
| 3/8/23 | 8-K | |||
| 1/1/23 | ||||
| 12/31/22 | 10-K, 13F-HR, ARS | |||
| 12/16/22 | 3, 4 | |||
| 12/1/22 | 8-K, 8-K/A | |||
| 3/31/22 | 10-Q, 13F-HR | |||
| 3/15/22 | ||||
| 12/31/21 | 10-K, 11-K, 13F-HR | |||
| 9/20/21 | ||||
| 1/1/21 | ||||
| 12/31/20 | 10-K, 11-K, 13F-HR, 5 | |||
| 12/22/20 | 8-K | |||
| 12/31/15 | 10-K, 11-K, 11-K/A, 13F-HR | |||
| 12/31/14 | 10-K, 10-K/A, 11-K, 13F-HR, 4, 8-K, ARS | |||
| List all Filings | ||||
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 4/20/22 U.S. Bancorp 8-K:5,9 4/19/22 15:753K Donnelley … Solutions/FA 4/20/21 U.S. Bancorp 8-K:5,9 4/20/21 12:412K Donnelley … Solutions/FA |