☑ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 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 | ||||||||||||
Common Stock, $.01 par value per share | USB | New York Stock Exchange | ||||||||||||
Depositary Shares (each representing 1/100th interest in a share of Series A Non-Cumulative Perpetual Preferred Stock, par value $1.00) | USB PrA | New York Stock Exchange | ||||||||||||
Depositary Shares (each representing 1/1,000th interest in a share of Series B Non-Cumulative Perpetual Preferred Stock, par value $1.00) | USB PrH | New York Stock Exchange | ||||||||||||
Depositary Shares (each representing 1/1,000th interest in a share of Series K Non-Cumulative Perpetual Preferred Stock, par value $1.00) | USB PrP | New York Stock Exchange | ||||||||||||
Depositary Shares (each representing 1/1,000th interest in a share of Series L Non-Cumulative Perpetual Preferred Stock, par value $1.00) | USB PrQ | New York Stock Exchange | ||||||||||||
Depositary Shares (each representing 1/1,000th interest in a share of Series M Non-Cumulative Perpetual Preferred Stock, par value $1.00) | USB PrR | New York Stock Exchange | ||||||||||||
Depositary Shares (each representing 1/1,000th interest in a share of Series O Non-Cumulative Perpetual Preferred Stock, par value $1.00) | USB PrS | New York Stock Exchange | ||||||||||||
0.850% Medium-Term Notes, Series X (Senior), due June 7, 2024 | USB/24B | New York Stock Exchange |
Class | Outstanding at January 31, 2024 | ||||
Common Stock, $.01 par value per share | 1,558,133,431 |
Document | Parts Into Which Incorporated | |||||||
1.Portions of the Annual Report to Shareholders for the Fiscal Year Ended December 31, 2023 (the “2023 Annual Report”) | Parts I and II | |||||||
2.Portions of the Proxy Statement for the Annual Meeting of Shareholders to be held April 16, 2024 (the “Proxy Statement”) | Part III |
Closing Date | Issuer | Capital Securities, Preferred Stock or Exchangeable Preferred Stock | Other Securities | Covered Debt | ||||||||||
3/17/06 | USB Capital IX and U.S. Bancorp | USB Capital IX’s $675,378,000 of 6.189% Fixed-to-Floating Rate Normal Income Trust Securities | U.S. Bancorp’s Series A Non-Cumulative Perpetual Preferred Stock | U.S. Bancorp’s 7.50% Subordinated Debentures due 2026 (CUSIP No. 911596AL8) | ||||||||||
3/27/06 | U.S. Bancorp | U.S. Bancorp’s 40,000,000 Depositary Shares ($25 per Depositary Share) each representing a 1/1000th interest in a share of Series B Non-Cumulative Perpetual Preferred Stock | Not Applicable | U.S. Bancorp’s 7.50% Subordinated Debentures due 2026 (CUSIP No. 911596AL8) | ||||||||||
12/22/06 | USB Realty Corp.(a) and U.S. Bancorp | USB Realty Corp.’s 4,500 shares of Fixed-to-Floating-Rate Exchangeable Non-Cumulative Perpetual Series A Preferred Stock exchangeable for shares of U.S. Bancorp’s Series C Non-Cumulative Perpetual Preferred Stock(b) | Not Applicable | U.S. Bancorp’s 7.50% Subordinated Debentures due 2026 (CUSIP No. 911596AL8) |
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) | |||||||||||||
October 1-31 | 273,451 | (a) | $36.08 | 13,451 | $1,330 | ||||||||||||
November 1-30 | 4,183 | 37.20 | 4,183 | 1,330 | |||||||||||||
December 1-31 | 359,226 | 45.31 | 359,226 | 1,314 | |||||||||||||
Total | 636,860 | (a) | $41.29 | 376,860 | $1,314 |
(1)3.1 | |||||
(1)3.2 | |||||
4.1 | Pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K, copies of instruments defining the rights of holders of long-term debt are not filed. U.S. Bancorp agrees to furnish a copy thereof to the SEC upon request. | ||||
4.2 | |||||
(1)10.0 | |||||
(1)(2)10.1(a) | |||||
(1)(2)10.1(b) | |||||
(1)(2)10.2 | |||||
(1)(2)10.3 | |||||
(1)(2)(3)10.4 | |||||
(1)(2)10.5(a) | |||||
(1)(2)10.5(b) | |||||
(1)(2)10.6 | |||||
(1)(2)10.7(a) | |||||
(1)(2)10.7(b) | |||||
(1)(2)10.8(a) | |||||
(1)(2)10.8(b) | |||||
(1)(2)10.8(c) | |||||
(1)(2)10.9(a) | |||||
(1)(2)10.9(b) | |||||
(1)(2)10.10 | |||||
(1)(2)10.11 | |||||
(1)(2)10.12 | |||||
(1)(2)10.13 | |||||
(1)(2)10.14 | |||||
(1)(2)10.15 | |||||
(1)(2)10.16 | |||||
(1)(2)10.17 | |||||
(1)(2)10.18 | |||||
(1)(2)10.19 | |||||
(1)(2)10.20 | |||||
(1)(2)10.21 | |||||
(1)(2)10.22 | |||||
(1)(2)10.23 | |||||
(1)(2)10.24 | |||||
(1)(2)10.25 | |||||
(1)(2)10.26 | |||||
(1)(2)10.27 | |||||
(1)(2)10.28 | |||||
(1)(2)10.29 | |||||
(2)10.30 | |||||
(2)10.31 | |||||
13 | |||||
21 | |||||
23 | |||||
24 | |||||
31.1 | |||||
31.2 | |||||
32 | |||||
97 | |||||
101 | The following financial statements from the Company’s Annual Report for the year ended December 31, 2023, formatted in Inline XBRL: (i) Consolidated Balance Sheet, (ii) Consolidated Statement of Income, (iii) Consolidated Statement of Comprehensive Income, (iv) Consolidated Statement of Shareholders’ Equity, (v) Consolidated Statement of Cash Flows and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags. | ||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101). |
U.S. BANCORP | ||||||||
By | /s/ ANDREW CECERE | |||||||
Andrew Cecere | ||||||||
Chairman, President and Chief Executive Officer |
Signature and Title | ||
/s/ ANDREW CECERE | ||
Andrew Cecere, | ||
Chairman, President and Chief Executive Officer, Director (principal executive officer) | ||
/s/ JOHN C. STERN | ||
John C. Stern, | ||
Senior Executive Vice President and Chief Financial Officer (principal financial officer) | ||
/s/ LISA R. STARK | ||
Lisa R. Stark, | ||
Executive Vice President and Controller (principal accounting officer) | ||
WARNER L. BAXTER* | ||
Warner L. Baxter, Director | ||
DOROTHY J. BRIDGES* | ||
Dorothy J. Bridges, Director | ||
ELIZABETH L. BUSE* | ||
Elizabeth L. Buse, Director | ||
ALAN B. COLBERG* | ||
Alan B. Colberg, Director | ||
KIMBERLY N. ELLISON-TAYLOR* | ||
Kimberly N. Ellison-Taylor, Director | ||
KIMBERLY J. HARRIS* | ||
Kimberly J. Harris, Director | ||
ROLAND A. HERNANDEZ* | ||
Roland A. Hernandez, Director | ||
RICHARD P. MCKENNEY* | ||
Richard P. McKenney, Director | ||
YUSUF I. MEHDI* | ||
Yusuf I. Mehdi, Director | ||
LORETTA E. REYNOLDS* | ||
Loretta E. Reynolds, Director | ||
JOHN P. WIEHOFF* | ||
John P. Wiehoff, Director | ||
SCOTT W. WINE* | ||
Scott W. Wine, Director |
By: | /s/ ANDREW CECERE | |||||||
Andrew Cecere | ||||||||
Attorney-In-Fact |
Company ROE Result (Vertical Axis) | Target Award Number Percentage | ||||||||||||||||||||||
Company ROE Maximum (____%) or more | 75% | 125% | 150% | ||||||||||||||||||||
Company ROE Target (____%) | 50% | 100% | 125% | ||||||||||||||||||||
Company ROE Minimum (____%) or less (but greater than zero) | 25% | 50% | 75% | ||||||||||||||||||||
Company ROE is 0% or less | 0% | 0% | 0% | ||||||||||||||||||||
Peer Group ROE Ranking Minimum or below | Peer Group ROE Ranking Target | Peer Group ROE Ranking Maximum or above | |||||||||||||||||||||
Peer Group ROE Ranking (Horizontal Axis) |
22 U.S. Bancorp 2023 Annual Report | ||
TABLE 1 | Selected Financial Data |
Year Ended December 31 (Dollars and Shares in Millions, Except Per Share Data) | 2023 | 2022 | 2021 | ||||||||
Condensed Income Statement | |||||||||||
Net interest income | $ | 17,396 | $ | 14,728 | $ | 12,494 | |||||
Taxable-equivalent adjustment(a) | 131 | 118 | 106 | ||||||||
Net interest income (taxable-equivalent basis)(b) | 17,527 | 14,846 | 12,600 | ||||||||
Noninterest income | 10,617 | 9,456 | 10,227 | ||||||||
Total net revenue | 28,144 | 24,302 | 22,827 | ||||||||
Noninterest expense | 18,873 | 14,906 | 13,728 | ||||||||
Provision for credit losses | 2,275 | 1,977 | (1,173) | ||||||||
Income before taxes | 6,996 | 7,419 | 10,272 | ||||||||
Income taxes and taxable-equivalent adjustment | 1,538 | 1,581 | 2,287 | ||||||||
Net income | 5,458 | 5,838 | 7,985 | ||||||||
Net (income) loss attributable to noncontrolling interests | (29) | (13) | (22) | ||||||||
Net income attributable to U.S. Bancorp | $ | 5,429 | $ | 5,825 | $ | 7,963 | |||||
Net income applicable to U.S. Bancorp common shareholders | $ | 5,051 | $ | 5,501 | $ | 7,605 | |||||
Per Common Share | |||||||||||
Earnings per share | $ | 3.27 | $ | 3.69 | $ | 5.11 | |||||
Diluted earnings per share | 3.27 | 3.69 | 5.10 | ||||||||
Dividends declared per share | 1.93 | 1.88 | 1.76 | ||||||||
Book value per share(c) | 31.13 | 28.71 | 32.71 | ||||||||
Market value per share | 43.28 | 43.61 | 56.17 | ||||||||
Average common shares outstanding | 1,543 | 1,489 | 1,489 | ||||||||
Average diluted common shares outstanding | 1,543 | 1,490 | 1,490 | ||||||||
Financial Ratios | |||||||||||
Return on average assets | .82 | % | .98 | % | 1.43 | % | |||||
Return on average common equity | 10.8 | 12.6 | 16.0 | ||||||||
Net interest margin (taxable-equivalent basis)(a) | 2.90 | 2.72 | 2.49 | ||||||||
Efficiency ratio(b) | 66.7 | 61.4 | 60.4 | ||||||||
Net charge-offs as a percent of average loans outstanding | .50 | .32 | .23 | ||||||||
Average Balances | |||||||||||
Loans | $ | 381,275 | $ | 333,573 | $ | 296,965 | |||||
Loans held for sale | 2,461 | 3,829 | 8,024 | ||||||||
Investment securities(d) | 162,757 | 169,442 | 154,702 | ||||||||
Earning assets | 605,199 | 545,343 | 506,141 | ||||||||
Assets | 663,440 | 592,149 | 556,532 | ||||||||
Noninterest-bearing deposits | 107,768 | 120,394 | 127,204 | ||||||||
Deposits | 505,663 | 462,384 | 434,281 | ||||||||
Short-term borrowings | 34,141 | 25,740 | 14,774 | ||||||||
Long-term debt | 44,142 | 33,114 | 36,682 | ||||||||
Total U.S. Bancorp shareholders’ equity | 53,660 | 50,416 | 53,810 | ||||||||
Period End Balances | |||||||||||
Loans | $ | 373,835 | $ | 388,213 | $ | 312,028 | |||||
Investment securities | 153,751 | 161,650 | 174,821 | ||||||||
Assets | 663,491 | 674,805 | 573,284 | ||||||||
Deposits | 512,312 | 524,976 | 456,083 | ||||||||
Long-term debt | 51,480 | 39,829 | 32,125 | ||||||||
Total U.S. Bancorp shareholders’ equity | 55,306 | 50,766 | 54,918 | ||||||||
Asset Quality | |||||||||||
Nonperforming assets | $ | 1,494 | $ | 1,016 | $ | 878 | |||||
Allowance for credit losses | 7,839 | 7,404 | 6,155 | ||||||||
Allowance for credit losses as a percentage of period-end loans | 2.10 | % | 1.91 | % | 1.97 | % | |||||
Capital Ratios | |||||||||||
Common equity tier 1 capital | 9.9 | % | 8.4 | % | 10.0 | % | |||||
Tier 1 capital | 11.5 | 9.8 | 11.6 | ||||||||
Total risk-based capital | 13.7 | 11.9 | 13.4 | ||||||||
Leverage | 8.1 | 7.9 | 8.6 | ||||||||
Total leverage exposure | 6.6 | 6.4 | 6.9 | ||||||||
Tangible common equity to tangible assets(b) | 5.3 | 4.5 | 6.8 | ||||||||
Tangible common equity to risk-weighted assets(b) | 7.7 | 6.0 | 9.2 | ||||||||
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology(b) | 9.7 | 8.1 | 9.6 |
23 | ||
24 U.S. Bancorp 2023 Annual Report | ||
TABLE 2 | Analysis of Net Interest Income(a) |
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | 2021 | 2023 v 2022 | 2022 v 2021 | ||||||||||||
Components of Net Interest Income | |||||||||||||||||
Income on earning assets (taxable-equivalent basis) | $ | 30,144 | $ | 18,066 | $ | 13,593 | $ | 12,078 | $ | 4,473 | |||||||
Expense on interest-bearing liabilities (taxable-equivalent basis) | 12,617 | 3,220 | 993 | 9,397 | 2,227 | ||||||||||||
Net interest income (taxable-equivalent basis)(b) | $ | 17,527 | $ | 14,846 | $ | 12,600 | $ | 2,681 | $ | 2,246 | |||||||
Net interest income, as reported | $ | 17,396 | $ | 14,728 | $ | 12,494 | $ | 2,668 | $ | 2,234 | |||||||
Average Yields and Rates Paid | |||||||||||||||||
Earning assets yield (taxable-equivalent basis) | 4.98 | % | 3.31 | % | 2.69 | % | 1.67 | % | .62 | % | |||||||
Rate paid on interest-bearing liabilities (taxable-equivalent basis) | 2.65 | .80 | .28 | 1.85 | .52 | ||||||||||||
Gross interest margin (taxable-equivalent basis) | 2.33 | % | 2.51 | % | 2.41 | % | (.18) | % | .10 | % | |||||||
Net interest margin (taxable-equivalent basis) | 2.90 | % | 2.72 | % | 2.49 | % | .18 | % | .23 | % | |||||||
Average Balances | |||||||||||||||||
Investment securities(c) | $ | 162,757 | $ | 169,442 | $ | 154,702 | $ | (6,685) | $ | 14,740 | |||||||
Loans | 381,275 | 333,573 | 296,965 | 47,702 | 36,608 | ||||||||||||
Earning assets | 605,199 | 545,343 | 506,141 | 59,856 | 39,202 | ||||||||||||
Noninterest-bearing deposits | 107,768 | 120,394 | 127,204 | (12,626) | (6,810) | ||||||||||||
Interest-bearing deposits | 397,895 | 341,990 | 307,077 | 55,905 | 34,913 | ||||||||||||
Total deposits | 505,663 | 462,384 | 434,281 | 43,279 | 28,103 | ||||||||||||
Interest-bearing liabilities | 476,178 | 400,844 | 358,533 | 75,334 | 42,311 |
25 | ||
TABLE 3 | Net Interest Income — Changes Due to Rate and Volume(a) |
2023 v 2022 | 2022 v 2021 | |||||||||||||||||||
Year Ended December 31 (Dollars in Millions) | Volume | Yield/Rate | Total | Volume | Yield/Rate | Total | ||||||||||||||
Increase (decrease) in | ||||||||||||||||||||
Interest Income | ||||||||||||||||||||
Investment securities | $ | (136) | $ | 1,245 | $ | 1,109 | $ | 231 | $ | 792 | $ | 1,023 | ||||||||
Loans held for sale | (72) | 18 | (54) | (121) | 90 | (31) | ||||||||||||||
Loans | ||||||||||||||||||||
Commercial | 389 | 3,933 | 4,322 | 547 | 1,109 | 1,656 | ||||||||||||||
Commercial real estate | 546 | 1,183 | 1,729 | 73 | 363 | 436 | ||||||||||||||
Residential mortgages | 1,019 | 511 | 1,530 | 336 | (38) | 298 | ||||||||||||||
Credit card | 340 | 506 | 846 | 193 | 112 | 305 | ||||||||||||||
Other retail | (424) | 731 | 307 | 50 | 116 | 166 | ||||||||||||||
Total loans | 1,870 | 6,864 | 8,734 | 1,199 | 1,662 | 2,861 | ||||||||||||||
Interest-bearing deposits with banks | 313 | 1,709 | 2,022 | (8) | 525 | 517 | ||||||||||||||
Other earning assets | 76 | 191 | 267 | 8 | 95 | 103 | ||||||||||||||
Total earning assets | 2,051 | 10,027 | 12,078 | 1,309 | 3,164 | 4,473 | ||||||||||||||
Interest Expense | ||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||
Interest checking | 28 | 1,029 | 1,057 | 3 | 250 | 253 | ||||||||||||||
Money market savings | 388 | 4,046 | 4,434 | 16 | 1,005 | 1,021 | ||||||||||||||
Savings accounts | (2) | 82 | 80 | 1 | 2 | 3 | ||||||||||||||
Time deposits | 192 | 1,140 | 1,332 | 23 | 252 | 275 | ||||||||||||||
Total interest-bearing deposits | 606 | 6,297 | 6,903 | 43 | 1,509 | 1,552 | ||||||||||||||
Short-term borrowings | 186 | 1,223 | 1,409 | 52 | 446 | 498 | ||||||||||||||
Long-term debt | 259 | 826 | 1,085 | (59) | 236 | 177 | ||||||||||||||
Total interest-bearing liabilities | 1,051 | 8,346 | 9,397 | 36 | 2,191 | 2,227 | ||||||||||||||
Increase (decrease) in net interest income | $ | 1,000 | $ | 1,681 | $ | 2,681 | $ | 1,273 | $ | 973 | $ | 2,246 |
26 U.S. Bancorp 2023 Annual Report | ||
TABLE 4 | Noninterest Income |
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | 2021 | 2023 v 2022 | 2022 v 2021 | ||||||||||||||||||
Card revenue | $ | 1,630 | $ | 1,512 | $ | 1,507 | 7.8 | % | .3 | % | |||||||||||||
Corporate payment products revenue | 759 | 698 | 575 | 8.7 | 21.4 | ||||||||||||||||||
Merchant processing services | 1,659 | 1,579 | 1,449 | 5.1 | 9.0 | ||||||||||||||||||
Trust and investment management fees | 2,459 | 2,209 | 1,832 | 11.3 | 20.6 | ||||||||||||||||||
Service charges | 1,306 | 1,298 | 1,338 | .6 | (3.0) | ||||||||||||||||||
Commercial products revenue | 1,372 | 1,105 | 1,102 | 24.2 | .3 | ||||||||||||||||||
Mortgage banking revenue | 540 | 527 | 1,361 | 2.5 | (61.3) | ||||||||||||||||||
Investment products fees | 279 | 235 | 239 | 18.7 | (1.7) | ||||||||||||||||||
Securities gains (losses), net | (145) | 20 | 103 | * | (80.6) | ||||||||||||||||||
Other | 758 | 273 | 721 | * | (62.1) | ||||||||||||||||||
Total noninterest income | $ | 10,617 | $ | 9,456 | (a) | $ | 10,227 | 12.3 | % | (7.5) | % |
TABLE 5 | Noninterest Expense |
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | 2021 | 2023 v 2022 | 2022 v 2021 | ||||||||||||
Compensation and employee benefits | $ | 10,416 | $ | 9,157 | $ | 8,728 | 13.7 | % | 4.9 | % | |||||||
Net occupancy and equipment | 1,266 | 1,096 | 1,048 | 15.5 | 4.6 | ||||||||||||
Professional services | 560 | 529 | 492 | 5.9 | 7.5 | ||||||||||||
Marketing and business development | 726 | 456 | 366 | 59.2 | 24.6 | ||||||||||||
Technology and communications | 2,049 | 1,726 | 1,728 | 18.7 | (.1) | ||||||||||||
Other intangibles | 636 | 215 | 159 | * | 35.2 | ||||||||||||
Other | 2,211 | 1,398 | 1,207 | 58.2 | 15.8 | ||||||||||||
Total before merger and integration charges | 17,864 | 14,577 | 13,728 | 22.5 | 6.2 | ||||||||||||
Merger and integration charges | 1,009 | 329 | — | * | * | ||||||||||||
Total noninterest expense | $ | 18,873 | $ | 14,906 | $ | 13,728 | 26.6 | % | 8.6 | % | |||||||
Efficiency ratio(a) | 66.7 | % | 61.4 | % | 60.4 | % |
27 | ||
28 U.S. Bancorp 2023 Annual Report | ||
TABLE 6 | Loan Portfolio Distribution |
2023 | 2022 | |||||||||||||
At December 31 (Dollars in Millions) | Amount | Percent of Total | Amount | Percent of Total | ||||||||||
Commercial | ||||||||||||||
Commercial | $ | 127,676 | 34.2 | % | $ | 131,128 | 33.8 | % | ||||||
Lease financing | 4,205 | 1.1 | 4,562 | 1.2 | ||||||||||
Total commercial | 131,881 | 35.3 | 135,690 | 35.0 | ||||||||||
Commercial Real Estate | ||||||||||||||
Commercial mortgages | 41,934 | 11.2 | 43,765 | 11.3 | ||||||||||
Construction and development | 11,521 | 3.1 | 11,722 | 3.0 | ||||||||||
Total commercial real estate | 53,455 | 14.3 | 55,487 | 14.3 | ||||||||||
Residential Mortgages | ||||||||||||||
Residential mortgages | 108,605 | 29.0 | 107,858 | 27.8 | ||||||||||
Home equity loans, first liens | 6,925 | 1.9 | 7,987 | 2.0 | ||||||||||
Total residential mortgages | 115,530 | 30.9 | 115,845 | 29.8 | ||||||||||
Credit Card | 28,560 | 7.6 | 26,295 | 6.8 | ||||||||||
Other Retail | ||||||||||||||
Retail leasing | 4,135 | 1.1 | 5,519 | 1.4 | ||||||||||
Home equity and second mortgages | 13,056 | 3.5 | 12,863 | 3.3 | ||||||||||
Revolving credit | 3,668 | 1.0 | 3,983 | 1.0 | ||||||||||
Installment | 13,889 | 3.7 | 14,592 | 3.8 | ||||||||||
Automobile | 9,661 | 2.6 | 17,939 | 4.6 | ||||||||||
Total other retail | 44,409 | 11.9 | 54,896 | 14.1 | ||||||||||
Total loans | $ | 373,835 | 100.0 | % | $ | 388,213 | 100.0 | % |
TABLE 7 | Selected Loan Maturity Distribution |
At December 31, 2023 (Dollars in Millions) | One Year or Less | Over One Through Five Years | Over Five Through Fifteen Years | Over Fifteen Years | Total | |||||||||||||||
Commercial | $ | 37,097 | $ | 85,548 | $ | 9,055 | $ | 181 | $ | 131,881 | ||||||||||
Commercial real estate | 14,724 | 23,149 | 6,870 | 8,712 | (a) | 53,455 | ||||||||||||||
Residential mortgages | 182 | 2,125 | 6,572 | 106,651 | 115,530 | |||||||||||||||
Credit card | 28,560 | — | — | — | 28,560 | |||||||||||||||
Other retail | 2,367 | 12,561 | 13,342 | 16,139 | 44,409 | |||||||||||||||
Total loans | $ | 82,930 | $ | 123,383 | $ | 35,839 | $ | 131,683 | $ | 373,835 | ||||||||||
Total of loans due after one year with: | ||||||||||||||||||||
Predetermined Interest Rates | Floating Interest Rates | |||||||||||||||||||
Commercial | $ | 13,786 | $ | 80,998 | ||||||||||||||||
Commercial real estate | 12,585 | 26,147 | ||||||||||||||||||
Residential mortgages | 63,080 | 52,267 | ||||||||||||||||||
Credit card | — | — | ||||||||||||||||||
Other retail | 29,359 | 12,683 | ||||||||||||||||||
Total | $ | 118,810 | $ | 172,095 |
29 | ||
TABLE 8 | Commercial Loans by Industry Group and Geography |
2023 | 2022 | |||||||||||||
At December 31 (Dollars in Millions) | Loans | Percent of Total | Loans | Percent of Total | ||||||||||
Industry Group | ||||||||||||||
Financial institutions | $ | 20,016 | 15.2 | % | $ | 17,381 | 12.8 | % | ||||||
Real-estate related | 19,108 | 14.5 | 19,539 | 14.4 | ||||||||||
Personal, professional and commercial services | 10,273 | 7.8 | 10,106 | 7.5 | ||||||||||
Healthcare | 8,240 | 6.2 | 8,536 | 6.3 | ||||||||||
Automotive | 6,678 | 5.1 | 7,154 | 5.3 | ||||||||||
Media and entertainment | 6,265 | 4.8 | 5,867 | 4.3 | ||||||||||
Capital goods | 5,315 | 4.0 | 5,332 | 3.9 | ||||||||||
Retail | 4,970 | 3.8 | 5,128 | 3.8 | ||||||||||
Transportation | 4,467 | 3.4 | 4,988 | 3.7 | ||||||||||
Food and beverage | 4,053 | 3.1 | 5,574 | 4.1 | ||||||||||
Technology | 3,963 | 3.0 | 5,425 | 4.0 | ||||||||||
Energy | 3,744 | 2.8 | 3,811 | 2.8 | ||||||||||
Power | 3,435 | 2.6 | 4,945 | 3.6 | ||||||||||
Metals and mining | 3,332 | 2.5 | 3,700 | 2.7 | ||||||||||
Education and non-profit | 3,330 | 2.5 | 3,609 | 2.7 | ||||||||||
State and municipal government | 3,217 | 2.4 | 3,240 | 2.4 | ||||||||||
Building materials | 3,008 | 2.3 | 3,293 | 2.4 | ||||||||||
Agriculture | 1,778 | 1.3 | 1,909 | 1.4 | ||||||||||
Other | 16,689 | 12.7 | 16,153 | 11.9 | ||||||||||
Total | $ | 131,881 | 100.0 | % | $ | 135,690 | 100.0 | % | ||||||
Geography | ||||||||||||||
California | $ | 21,275 | 16.1 | % | $ | 23,736 | 17.5 | % | ||||||
New York | 9,393 | 7.1 | 8,989 | 6.6 | ||||||||||
Texas | 9,092 | 6.9 | 10,244 | 7.6 | ||||||||||
Illinois | 6,861 | 5.2 | 7,626 | 5.6 | ||||||||||
Minnesota | 6,365 | 4.8 | 6,707 | 4.9 | ||||||||||
Ohio | 4,291 | 3.3 | 4,497 | 3.3 | ||||||||||
Wisconsin | 4,129 | 3.1 | 4,112 | 3.0 | ||||||||||
Colorado | 3,675 | 2.8 | 3,613 | 2.7 | ||||||||||
Washington | 3,604 | 2.7 | 3,721 | 2.7 | ||||||||||
Missouri | 3,454 | 2.6 | 3,503 | 2.6 | ||||||||||
All other states | 59,742 | 45.4 | 58,942 | 43.5 | ||||||||||
Total | $ | 131,881 | 100.0 | % | $ | 135,690 | 100.0 | % |
30 U.S. Bancorp 2023 Annual Report | ||
TABLE 9 | Commercial Real Estate Loans by Property Type and Geography |
2023 | 2022 | |||||||||||||
At December 31 (Dollars in Millions) | Loans | Percent of Total | Loans | Percent of Total | ||||||||||
Property Type | ||||||||||||||
Multi-family | $ | 17,786 | 33.3 | % | $ | 16,722 | 30.1 | % | ||||||
Business owner occupied | 10,795 | 20.2 | 11,487 | 20.7 | ||||||||||
Office | 6,948 | 13.0 | 7,239 | 13.1 | ||||||||||
Industrial | 5,608 | 10.5 | 5,258 | 9.5 | ||||||||||
Residential land and development | 4,419 | 8.3 | 4,454 | 8.0 | ||||||||||
Retail | 3,806 | 7.1 | 4,011 | 7.2 | ||||||||||
Lodging | 1,661 | 3.1 | 1,932 | 3.5 | ||||||||||
Other | 2,432 | 4.5 | 4,384 | 7.9 | ||||||||||
Total | $ | 53,455 | 100.0 | % | $ | 55,487 | 100.0 | % | ||||||
Geography | ||||||||||||||
California | $ | 20,130 | 37.7 | % | $ | 22,250 | 40.1 | % | ||||||
Washington | 4,245 | 7.9 | 4,235 | 7.6 | ||||||||||
Texas | 2,669 | 5.0 | 2,337 | 4.2 | ||||||||||
Florida | 1,843 | 3.4 | 1,276 | 2.3 | ||||||||||
Oregon | 1,809 | 3.4 | 1,622 | 2.9 | ||||||||||
Illinois | 1,516 | 2.8 | 1,830 | 3.3 | ||||||||||
Minnesota | 1,497 | 2.8 | 1,470 | 2.7 | ||||||||||
Colorado | 1,476 | 2.8 | 1,648 | 3.0 | ||||||||||
New York | 1,273 | 2.4 | 2,547 | 4.6 | ||||||||||
Wisconsin | 1,266 | 2.4 | 1,236 | 2.2 | ||||||||||
All other states | 15,731 | 29.4 | 15,036 | 27.1 | ||||||||||
Total | $ | 53,455 | 100.0 | % | $ | 55,487 | 100.0 | % |
31 | ||
TABLE 10 | Residential Mortgages by Geography |
2023 | 2022 | |||||||||||||
At December 31 (Dollars in Millions) | Loans | Percent of Total | Loans | Percent of Total | ||||||||||
California | $ | 52,584 | 45.5 | % | $ | 53,967 | 46.6 | % | ||||||
Washington | 6,678 | 5.8 | 6,343 | 5.5 | ||||||||||
Colorado | 3,881 | 3.4 | 4,192 | 3.6 | ||||||||||
Florida | 3,767 | 3.3 | 3,946 | 3.4 | ||||||||||
Illinois | 3,630 | 3.1 | 3,592 | 3.1 | ||||||||||
Minnesota | 3,600 | 3.1 | 3,692 | 3.2 | ||||||||||
Texas | 3,287 | 2.8 | 2,801 | 2.4 | ||||||||||
Arizona | 3,134 | 2.7 | 3,178 | 2.7 | ||||||||||
New York | 2,726 | 2.4 | 2,315 | 2.0 | ||||||||||
Massachusetts | 2,680 | 2.3 | 2,536 | 2.2 | ||||||||||
All other states | 29,563 | 25.6 | 29,283 | 25.3 | ||||||||||
Total | $ | 115,530 | 100.0 | % | $ | 115,845 | 100.0 | % |
TABLE 11 | Credit Card Loans by Geography |
2023 | 2022 | |||||||||||||
At December 31 (Dollars in Millions) | Loans | Percent of Total | Loans | Percent of Total | ||||||||||
California | $ | 2,928 | 10.3 | % | $ | 2,609 | 9.9 | % | ||||||
Texas | 1,719 | 6.0 | 1,584 | 6.0 | ||||||||||
Illinois | 1,472 | 5.2 | 1,330 | 5.1 | ||||||||||
Ohio | 1,406 | 4.9 | 1,320 | 5.0 | ||||||||||
Florida | 1,363 | 4.8 | 1,252 | 4.8 | ||||||||||
Minnesota | 1,333 | 4.7 | 1,257 | 4.8 | ||||||||||
Wisconsin | 1,177 | 4.1 | 1,029 | 3.9 | ||||||||||
Colorado | 964 | 3.3 | 862 | 3.3 | ||||||||||
Michigan | 948 | 3.3 | 925 | 3.5 | ||||||||||
Missouri | 918 | 3.2 | 850 | 3.2 | ||||||||||
All other states | 14,332 | 50.2 | 13,277 | 50.5 | ||||||||||
Total | $ | 28,560 | 100.0 | % | $ | 26,295 | 100.0 | % |
32 U.S. Bancorp 2023 Annual Report | ||
TABLE 12 | Other Retail Loans by Geography |
2023 | 2022 | |||||||||||||
At December 31 (Dollars in Millions) | Loans | Percent of Total | Loans | Percent of Total | ||||||||||
California | $ | 9,506 | 21.4 | % | $ | 11,098 | 20.2 | % | ||||||
Texas | 3,505 | 7.9 | 5,149 | 9.4 | ||||||||||
Florida | 2,729 | 6.1 | 3,449 | 6.3 | ||||||||||
Minnesota | 1,943 | 4.4 | 2,527 | 4.6 | ||||||||||
Washington | 1,800 | 4.1 | 1,999 | 3.6 | ||||||||||
Ohio | 1,752 | 3.9 | 2,083 | 3.8 | ||||||||||
Illinois | 1,704 | 3.8 | 2,180 | 4.0 | ||||||||||
New York | 1,444 | 3.3 | 1,878 | 3.4 | ||||||||||
Colorado | 1,440 | 3.2 | 1,673 | 3.0 | ||||||||||
Oregon | 1,313 | 3.0 | 1,414 | 2.6 | ||||||||||
All other states | 17,273 | 38.9 | 21,446 | 39.1 | ||||||||||
Total | $ | 44,409 | 100.0 | % | $ | 54,896 | 100.0 | % |
TABLE 13 | Investment Securities |
2023 | 2022 | |||||||||||||||||||||||||
At December 31 (Dollars in Millions) | Amortized Cost | Fair Value | Weighted- Average Maturity in Years | Weighted- Average Yield(e) | Amortized Cost | Fair Value | Weighted- Average Maturity in Years | Weighted- Average Yield(e) | ||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||
U.S. Treasury and agencies | $ | 1,345 | $ | 1,310 | 2.3 | 2.85 | % | $ | 1,344 | $ | 1,293 | 3.3 | 2.85 | % | ||||||||||||
Mortgage-backed securities(a) | 82,692 | 72,770 | 8.8 | 2.21 | 87,396 | 76,581 | 9.3 | 2.17 | ||||||||||||||||||
Other | 8 | 8 | 2.8 | 2.56 | — | — | — | — | ||||||||||||||||||
Total held-to-maturity | $ | 84,045 | $ | 74,088 | 8.7 | 2.22 | % | $ | 88,740 | $ | 77,874 | 9.2 | 2.18 | % | ||||||||||||
Available-for-sale | ||||||||||||||||||||||||||
U.S. Treasury and agencies | $ | 21,768 | $ | 19,542 | 5.9 | 2.19 | % | $ | 24,801 | $ | 22,033 | 7.1 | 2.43 | % | ||||||||||||
Mortgage-backed securities(a) | 36,895 | 33,427 | 6.3 | 3.09 | 40,803 | 36,423 | 6.6 | 2.83 | ||||||||||||||||||
Asset-backed securities(a) | 6,713 | 6,724 | 2.2 | 5.33 | 4,356 | 4,323 | 1.3 | 4.59 | ||||||||||||||||||
Obligations of state and political subdivisions(b)(c) | 10,867 | 9,989 | 9.9 | 3.75 | 11,484 | 10,125 | 13.6 | 3.76 | ||||||||||||||||||
Other | 24 | 24 | 1.7 | 4.51 | 6 | 6 | 0.1 | 1.99 | ||||||||||||||||||
Total available-for-sale (d) | $ | 76,267 | $ | 69,706 | 6.3 | 3.12 | % | $ | 81,450 | $ | 72,910 | 7.4 | 2.94 | % |
33 | ||
34 U.S. Bancorp 2023 Annual Report | ||
TABLE 14 | Deposits |
2023 | 2022 | |||||||||||||
At December 31 (Dollars in Millions) | Amount | Percent of Total | Amount | Percent of Total | ||||||||||
Noninterest-bearing deposits | $ | 89,989 | 17.6 | % | $ | 137,743 | 26.2 | % | ||||||
Interest-bearing deposits | ||||||||||||||
Interest checking | 127,453 | 24.9 | 134,491 | 25.6 | ||||||||||
Money market savings | 199,378 | 38.9 | 148,014 | 28.2 | ||||||||||
Savings accounts | 43,219 | 8.4 | 71,782 | 13.7 | ||||||||||
Total savings deposits | 370,050 | 72.2 | 354,287 | 67.5 | ||||||||||
Domestic time deposits less than $250,000 | 35,700 | 7.0 | 16,329 | 3.1 | ||||||||||
Domestic time deposits greater than $250,000 | 15,336 | 3.0 | 11,999 | 2.3 | ||||||||||
Foreign time deposits | 1,237 | .2 | 4,618 | .9 | ||||||||||
Total interest-bearing deposits | 422,323 | 82.4 | 387,233 | 73.8 | ||||||||||
Total deposits(a) | $ | 512,312 | 100.0 | % | $ | 524,976 | 100.0 | % |
(Dollars in Millions) | Domestic Time Deposits Greater Than $250,000 | Foreign Time Deposits | Total | ||||||||
Three months or less | $ | 5,538 | $ | 1,237 | $ | 6,775 | |||||
Three months through six months | 3,624 | — | 3,624 | ||||||||
Six months through one year | 4,247 | — | 4,247 | ||||||||
Thereafter | 1,927 | — | 1,927 | ||||||||
Total | $ | 15,336 | $ | 1,237 | $ | 16,573 |
35 | ||
36 U.S. Bancorp 2023 Annual Report | ||
37 | ||
Residential Mortgages (Dollars in Millions) | Interest Only | Amortizing | Total | Percent of Total | ||||||||||
Loan-to-Value | ||||||||||||||
Less than or equal to 80% | $ | 13,945 | $ | 86,758 | $ | 100,703 | 87.2 | % | ||||||
Over 80% through 90% | 255 | 6,326 | 6,581 | 5.7 | ||||||||||
Over 90% through 100% | 30 | 1,062 | 1,092 | .9 | ||||||||||
Over 100% | 6 | 370 | 376 | .3 | ||||||||||
No LTV available | 1 | 10 | 11 | — | ||||||||||
Loans purchased from GNMA mortgage pools(a) | — | 6,767 | 6,767 | 5.9 | ||||||||||
Total | $ | 14,237 | $ | 101,293 | $ | 115,530 | 100.0 | % |
38 U.S. Bancorp 2023 Annual Report | ||
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% | $ | 10,406 | $ | 1,904 | $ | 12,310 | 94.3 | % | ||||||
Over 80% through 90% | 492 | 103 | 595 | 4.5 | ||||||||||
Over 90% through 100% | 70 | 16 | 86 | .7 | ||||||||||
Over 100% | 32 | 4 | 36 | .3 | ||||||||||
No LTV/CLTV available | 29 | — | 29 | .2 | ||||||||||
Total | $ | 11,029 | $ | 2,027 | $ | 13,056 | 100.0 | % |
Junior Liens Behind | |||||||||||
(Dollars in Millions) | Company Owned or Serviced First Lien | Third Party First Lien | Total | ||||||||
Total | $ | 3,108 | $ | 7,351 | $ | 10,459 | |||||
Percent 30 - 89 days past due | .38 | % | .58 | % | .52 | % | |||||
Percent 90 days or more past due | .05 | % | .08 | % | .07 | % | |||||
Weighted-average CLTV | 70 | % | 68 | % | 69 | % | |||||
Weighted-average credit score | 784 | 785 | 785 |
39 | ||
TABLE 15 | Delinquent Loan Ratios as a Percent of Ending Loan Balances |
At December 31 90 days or more past due | 2023 | 2022 | ||||||
Commercial | ||||||||
Commercial | .09 | % | .07 | % | ||||
Lease financing | — | — | ||||||
Total commercial | .09 | .07 | ||||||
Commercial Real Estate | ||||||||
Commercial mortgages | — | — | ||||||
Construction and development | .03 | .03 | ||||||
Total commercial real estate | .01 | .01 | ||||||
Residential Mortgages(a) | .12 | .08 | ||||||
Credit Card | 1.31 | .88 | ||||||
Other Retail | ||||||||
Retail leasing | .05 | .04 | ||||||
Home equity and second mortgages | .26 | .28 | ||||||
Other | .11 | .08 | ||||||
Total other retail | .15 | .12 | ||||||
Total loans | .19 | % | .13 | % | ||||
At December 31 90 days or more past due and nonperforming loans | 2023 | 2022 | ||||||
Commercial | .37 | % | .19 | % | ||||
Commercial real estate | 1.46 | .62 | ||||||
Residential mortgages(a) | .25 | .36 | ||||||
Credit card | 1.31 | .88 | ||||||
Other retail | .46 | .37 | ||||||
Total loans | .57 | % | .38 | % |
40 U.S. Bancorp 2023 Annual Report | ||
At December 31 (Dollars in Millions) | Amount | As a Percent of Ending Loan Balances | ||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Residential Mortgages(a) | ||||||||||||||
30-89 days | $ | 169 | $ | 201 | .15 | % | .17 | % | ||||||
90 days or more | 136 | 95 | .12 | .08 | ||||||||||
Nonperforming | 158 | 325 | .14 | .28 | ||||||||||
Total | $ | 463 | $ | 621 | .40 | % | .54 | % | ||||||
Credit Card | ||||||||||||||
30-89 days | $ | 406 | $ | 283 | 1.42 | % | 1.08 | % | ||||||
90 days or more | 375 | 231 | 1.31 | .88 | ||||||||||
Nonperforming | — | 1 | — | — | ||||||||||
Total | $ | 781 | $ | 515 | 2.73 | % | 1.96 | % | ||||||
Other Retail | ||||||||||||||
Retail Leasing | ||||||||||||||
30-89 days | $ | 25 | $ | 27 | .60 | % | .49 | % | ||||||
90 days or more | 2 | 2 | .05 | .04 | ||||||||||
Nonperforming | 8 | 8 | .19 | .14 | ||||||||||
Total | $ | 35 | $ | 37 | .85 | % | .67 | % | ||||||
Home Equity and Second Mortgages | ||||||||||||||
30-89 days | $ | 77 | $ | 65 | .59 | % | .51 | % | ||||||
90 days or more | 34 | 36 | .26 | .28 | ||||||||||
Nonperforming | 113 | 110 | .87 | .86 | ||||||||||
Total | $ | 224 | $ | 211 | 1.72 | % | 1.64 | % | ||||||
Other(b) | ||||||||||||||
30-89 days | $ | 176 | $ | 217 | .65 | % | .59 | % | ||||||
90 days or more | 31 | 28 | .11 | .08 | ||||||||||
Nonperforming | 17 | 21 | .06 | .06 | ||||||||||
Total | $ | 224 | $ | 266 | .82 | % | .73 | % |
41 | ||
42 U.S. Bancorp 2023 Annual Report | ||
TABLE 16 | Nonperforming Assets(a) |
At December 31 (Dollars in Millions) | 2023 | 2022 | ||||||
Commercial | ||||||||
Commercial | $ | 349 | $ | 139 | ||||
Lease financing | 27 | 30 | ||||||
Total commercial | 376 | 169 | ||||||
Commercial Real Estate | ||||||||
Commercial mortgages | 675 | 251 | ||||||
Construction and development | 102 | 87 | ||||||
Total commercial real estate | 777 | 338 | ||||||
Residential Mortgages(b) | 158 | 325 | ||||||
Credit Card | — | 1 | ||||||
Other Retail | ||||||||
Retail leasing | 8 | 8 | ||||||
Home equity and second mortgages | 113 | 110 | ||||||
Other | 17 | 21 | ||||||
Total other retail | 138 | 139 | ||||||
Total nonperforming loans(1) | 1,449 | 972 | ||||||
Other Real Estate(c) | 26 | 23 | ||||||
Other Assets | 19 | 21 | ||||||
Total nonperforming assets | $ | 1,494 | $ | 1,016 | ||||
Accruing loans 90 days or more past due(b) | $ | 698 | $ | 491 | ||||
Period-end loans(2) | $ | 373,835 | $ | 388,213 | ||||
Nonperforming assets to total loans(1)/(2) | .39 | % | .25 | % | ||||
Nonperforming assets to total loans plus other real estate(c) | .40 | % | .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 | 1,403 | 174 | 1,577 | ||||||||
Advances on loans | 49 | 1 | 50 | ||||||||
Acquired nonperforming assets | — | — | — | ||||||||
Total additions | 1,452 | 175 | 1,627 | ||||||||
Reductions in nonperforming assets | |||||||||||
Paydowns, payoffs | (415) | (109) | (524) | ||||||||
Net sales | (51) | (23) | (74) | ||||||||
Return to performing status | (32) | (199) | (231) | ||||||||
Charge-offs(d) | (308) | (12) | (320) | ||||||||
Total reductions | (806) | (343) | (1,149) | ||||||||
Net additions to (reductions in) nonperforming assets | 646 | (168) | 478 | ||||||||
Balance December 31, 2023 | $ | 1,155 | $ | 339 | $ | 1,494 |
43 | ||
TABLE 17 | Net Charge-offs as a Percent of Average Loans Outstanding |
2023 | 2022 | 2021 | |||||||||||||||||||||||||||
Year Ended December 31 (Dollars in Millions) | Average Loan Balance | Net Charge-offs | Percent | Average Loan Balance | Net Charge-offs | Percent | Average Loan Balance | Net Charge-offs | Percent | ||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Commercial | $ | 130,544 | $ | 293 | .22 | % | $ | 118,967 | $ | 211 | .18 | % | $ | 97,649 | $ | 97 | .10 | % | |||||||||||
Lease financing | 4,339 | 21 | .48 | 4,830 | 16 | .33 | 5,206 | 6 | .12 | ||||||||||||||||||||
Total commercial | 134,883 | 314 | .23 | 123,797 | 227 | .18 | 102,855 | 103 | .10 | ||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 42,894 | 265 | .62 | 30,890 | 17 | .06 | 27,997 | (14) | (.05) | ||||||||||||||||||||
Construction | 11,752 | (2) | (.02) | 10,208 | 20 | .20 | 10,784 | 16 | .15 | ||||||||||||||||||||
Total commercial real estate | 54,646 | 263 | .48 | 41,098 | 37 | .09 | 38,781 | 2 | .01 | ||||||||||||||||||||
Residential mortgages | 115,922 | 109 | .09 | 84,749 | (23) | (.03) | 74,629 | (32) | (.04) | ||||||||||||||||||||
Credit card | 26,570 | 849 | 3.20 | 23,478 | 524 | 2.23 | 21,645 | 512 | 2.37 | ||||||||||||||||||||
Other retail | |||||||||||||||||||||||||||||
Retail leasing | 4,665 | 6 | .13 | 6,459 | 3 | .05 | 7,710 | 2 | .03 | ||||||||||||||||||||
Home equity and second mortgages | 12,829 | (2) | (.02) | 11,051 | (7) | (.06) | 11,228 | (10) | (.09) | ||||||||||||||||||||
Other | 31,760 | 366 | 1.15 | 42,941 | 302 | .70 | 40,117 | 105 | .26 | ||||||||||||||||||||
Total other retail | 49,254 | 370 | .75 | 60,451 | 298 | .49 | 59,055 | 97 | .16 | ||||||||||||||||||||
Total loans | $ | 381,275 | $ | 1,905 | .50 | % | $ | 333,573 | $ | 1,063 | .32 | % | $ | 296,965 | $ | 682 | .23 | % |
44 U.S. Bancorp 2023 Annual Report | ||
45 | ||
December 31, 2023 | December 31, 2022 | |||||||
United States unemployment rate for the three months ending(a) | ||||||||
December 31, 2023 | 3.8 | % | 4.2 | % | ||||
June 30, 2024 | 3.9 | 4.1 | ||||||
December 31, 2024 | 4.0 | 3.9 | ||||||
United States real gross domestic product for the three months ending(b) | ||||||||
December 31, 2023 | 2.5 | % | 1.0 | % | ||||
June 30, 2024 | 2.0 | 1.9 | ||||||
December 31, 2024 | 1.3 | 2.5 |
46 U.S. Bancorp 2023 Annual Report | ||
TABLE 18 | Summary of Allowance for Credit Losses |
(Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Balance at beginning of year | $ | 7,404 | $ | 6,155 | $ | 8,010 | |||||
Change in accounting principle(a) | (62) | — | — | ||||||||
Allowance for acquired credit losses(b) | 127 | 336 | — | ||||||||
Charge-Offs | |||||||||||
Commercial | |||||||||||
Commercial | 357 | 294 | 206 | ||||||||
Lease financing | 32 | 25 | 16 | ||||||||
Total commercial | 389 | 319 | 222 | ||||||||
Commercial real estate | |||||||||||
Commercial mortgages | 278 | 28 | 9 | ||||||||
Construction and development | 3 | 26 | 20 | ||||||||
Total commercial real estate | 281 | 54 | 29 | ||||||||
Residential mortgages | 129 | 13 | 18 | ||||||||
Credit card | 1,014 | 696 | 686 | ||||||||
Other retail | |||||||||||
Retail leasing | 18 | 18 | 26 | ||||||||
Home equity and second mortgages | 12 | 9 | 12 | ||||||||
Other | 448 | 391 | 215 | ||||||||
Total other retail | 478 | 418 | 253 | ||||||||
Total charge-offs(c) | 2,291 | 1,500 | 1,208 | ||||||||
Recoveries | |||||||||||
Commercial | |||||||||||
Commercial | 64 | 83 | 109 | ||||||||
Lease financing | 11 | 9 | 10 | ||||||||
Total commercial | 75 | 92 | 119 | ||||||||
Commercial real estate | |||||||||||
Commercial mortgages | 13 | 11 | 23 | ||||||||
Construction and development | 5 | 6 | 4 | ||||||||
Total commercial real estate | 18 | 17 | 27 | ||||||||
Residential mortgages | 20 | 36 | 50 | ||||||||
Credit card | 165 | 172 | 174 | ||||||||
Other retail | |||||||||||
Retail leasing | 12 | 15 | 24 | ||||||||
Home equity and second mortgages | 14 | 16 | 22 | ||||||||
Other | 82 | 89 | 110 | ||||||||
Total other retail | 108 | 120 | 156 | ||||||||
Total recoveries | 386 | 437 | 526 | ||||||||
Net Charge-Offs | |||||||||||
Commercial | |||||||||||
Commercial | 293 | 211 | 97 | ||||||||
Lease financing | 21 | 16 | 6 | ||||||||
Total commercial | 314 | 227 | 103 | ||||||||
Commercial real estate | |||||||||||
Commercial mortgages | 265 | 17 | (14) | ||||||||
Construction and development | (2) | 20 | 16 | ||||||||
Total commercial real estate | 263 | 37 | 2 | ||||||||
Residential mortgages | 109 | (23) | (32) | ||||||||
Credit card | 849 | 524 | 512 | ||||||||
Other retail | |||||||||||
Retail leasing | 6 | 3 | 2 | ||||||||
Home equity and second mortgages | (2) | (7) | (10) | ||||||||
Other | 366 | 302 | 105 | ||||||||
Total other retail | 370 | 298 | 97 | ||||||||
Total net charge-offs | 1,905 | 1,063 | 682 | ||||||||
Provision for credit losses(d) | 2,275 | 1,977 | (1,173) | ||||||||
Other changes | — | (1) | — | ||||||||
Balance at end of year | $ | 7,839 | $ | 7,404 | $ | 6,155 | |||||
Components | |||||||||||
Allowance for loan losses | $ | 7,379 | $ | 6,936 | $ | 5,724 | |||||
Liability for unfunded credit commitments | 460 | 468 | 431 | ||||||||
Total allowance for credit losses(1) | $ | 7,839 | $ | 7,404 | $ | 6,155 | |||||
Period-end loans(2) | $ | 373,835 | $ | 388,213 | $ | 312,028 | |||||
Nonperforming loans(3) | 1,449 | 972 | 834 | ||||||||
Allowance for Credit Losses as a Percentage of | |||||||||||
Period-end loans(1)/(2) | 2.10 | % | 1.91 | % | 1.97 | % | |||||
Nonperforming loans(1)/(3) | 541 | 762 | 738 | ||||||||
Nonperforming and accruing loans 90 days or more past due | 365 | 506 | 471 | ||||||||
Nonperforming assets | 525 | 729 | 701 | ||||||||
Net charge-offs | 411 | 697 | 902 |
47 | ||
TABLE 19 | Allocation of the Allowance for Credit Losses |
Allowance Amount | Allowance as a Percent of Loans | |||||||||||||
At December 31 (Dollars in Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Commercial | ||||||||||||||
Commercial | $ | 2,038 | $ | 2,087 | 1.60 | % | 1.59 | % | ||||||
Lease financing | 81 | 76 | 1.91 | 1.67 | ||||||||||
Total commercial | 2,119 | 2,163 | 1.61 | 1.59 | ||||||||||
Commercial Real Estate | ||||||||||||||
Commercial mortgages | 1,068 | 878 | 2.55 | 2.01 | ||||||||||
Construction and development | 552 | 447 | 4.79 | 3.81 | ||||||||||
Total commercial real estate | 1,620 | 1,325 | 3.03 | 2.39 | ||||||||||
Residential Mortgages | 827 | 926 | .72 | .80 | ||||||||||
Credit Card | 2,403 | 2,020 | 8.41 | 7.68 | ||||||||||
Other Retail | ||||||||||||||
Retail leasing | 95 | 127 | 2.30 | 2.30 | ||||||||||
Home equity and second mortgages | 321 | 298 | 2.46 | 2.32 | ||||||||||
Other | 454 | 545 | 1.67 | 1.49 | ||||||||||
Total other retail | 870 | 970 | 1.96 | 1.77 | ||||||||||
Total allowance | $ | 7,839 | $ | 7,404 | 2.10 | % | 1.91 | % |
48 U.S. Bancorp 2023 Annual Report | ||
49 | ||
TABLE 20 | Sensitivity of Net Interest Income |
December 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 | (.19) | % | .71 | % | (.15) | % | .91 | % | (.58) | % | .95 | % | (2.02) | % | 1.44 | % |
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | ||||||
Average | $ | 4 | $ | 2 | ||||
High | 7 | 7 | ||||||
Low | 2 | 1 | ||||||
Period-end | 3 | 5 |
50 U.S. Bancorp 2023 Annual Report | ||
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | ||||||
Average | $ | 10 | $ | 10 | ||||
High | 16 | 19 | ||||||
Low | 6 | 6 | ||||||
Period-end | 8 | 13 |
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | ||||||
Residential Mortgage Loans Held For Sale and Related Hedges | ||||||||
Average | $ | 1 | $ | 2 | ||||
High | 2 | 5 | ||||||
Low | — | — | ||||||
Mortgage Servicing Rights and Related Hedges | ||||||||
Average | $ | 7 | $ | 8 | ||||
High | 12 | 20 | ||||||
Low | 2 | 3 |
51 | ||
(Dollars in millions) | December 31, 2023 | December 31, 2022 | ||||||
Cash held at the Federal Reserve Bank and other central banks | $ | 52,403 | $ | 44,428 | ||||
Available investment securities | 34,220 | 131,962 | ||||||
Borrowing capacity from the Federal Reserve Bank and FHLB | 215,763 | 114,775 | ||||||
Total available liquidity | $ | 302,386 | $ | 291,165 |
TABLE 21 | Credit Ratings |
Moody's | S&P Global Ratings | Fitch Ratings | DBRS Morningstar | |||||||||||
U.S. Bancorp | ||||||||||||||
Long-term issuer rating | A3 | A | A+ | AA | ||||||||||
Short-term issuer rating | N/A | A-1 | F1 | R-1 (middle) | ||||||||||
Senior unsecured debt | A3 | A | A | AA | ||||||||||
Subordinated debt | A3 | A- | A- | AA (low) | ||||||||||
Junior subordinated debt | Baa1 | N/A | N/A | N/A | ||||||||||
Preferred stock | Baa2 | BBB | BBB | A | ||||||||||
Commercial paper | P-2 | N/A | F1 | N/A | ||||||||||
U.S. Bank National Association | ||||||||||||||
Long-term issuer rating | A2 | A+ | A+ | AA (high) | ||||||||||
Short-term issuer rating | P-1 | A-1 | F1 | R-1 (high) | ||||||||||
Long-term deposits | Aa3 | N/A | AA- | AA (high) | ||||||||||
Short-term deposits | P-1 | N/A | F1+ | N/A | ||||||||||
Senior unsecured debt | A2 | A+ | A+ | AA (high) | ||||||||||
Subordinated debt | A2 | A | N/A | AA | ||||||||||
Commercial paper | P-1 | A-1 | N/A | R-1 (high) | ||||||||||
Counterparty risk assessment | A1(cr)/P-1(cr) | |||||||||||||
Counterparty risk rating | A2/P-1 | |||||||||||||
Baseline credit assessment | a2 |
52 U.S. Bancorp 2023 Annual Report | ||
53 | ||
54 U.S. Bancorp 2023 Annual Report | ||
TABLE 22 | Regulatory Capital Ratios |
At December 31 (Dollars in Millions) | 2023 | 2022 | ||||||
Basel III standardized approach: | ||||||||
Common shareholders’ equity | $ | 48,498 | $ | 43,958 | ||||
Less intangible assets | ||||||||
Goodwill (net of deferred tax liability) | (11,480) | (11,395) | ||||||
Other disallowed intangible assets (net of deferred tax liability) | (2,278) | (2,792) | ||||||
Other(a) | 10,207 | 11,789 | ||||||
Common equity tier 1 capital | 44,947 | 41,560 | ||||||
Qualifying preferred stock | 6,808 | 6,808 | ||||||
Noncontrolling interests eligible for tier 1 capital | 450 | 450 | ||||||
Other(b) | (6) | (5) | ||||||
Tier 1 capital | 52,199 | 48,813 | ||||||
Eligible portion of allowance for credit losses | 5,645 | 5,682 | ||||||
Subordinated debt and noncontrolling interests eligible for tier 2 capital | 4,077 | 4,520 | ||||||
Tier 2 capital | 9,722 | 10,202 | ||||||
Total risk-based capital | $ | 61,921 | $ | 59,015 | ||||
Risk-weighted assets | $ | 453,390 | $ | 496,500 | ||||
Common equity tier 1 capital as a percent of risk-weighted assets | 9.9 | % | 8.4 | % | ||||
Tier 1 capital as a percent of risk-weighted assets | 11.5 | 9.8 | ||||||
Total risk-based capital as a percent of risk-weighted assets | 13.7 | 11.9 | ||||||
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) | 8.1 | 7.9 | ||||||
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure ratio) | 6.6 | 6.4 |
55 | ||
56 U.S. Bancorp 2023 Annual Report | ||
57 | ||
TABLE 23 | Line of Business Financial Performance |
Wealth, Corporate, Commercial and Institutional Banking | Consumer and Business Banking | Payment Services | |||||||||||||||||||||||||||
Year Ended December 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) | $ | 6,129 | $ | 5,213 | 17.6 | % | $ | 8,331 | $ | 6,764 | 23.2 | % | $ | 2,702 | $ | 2,504 | 7.9 | % | |||||||||||
Noninterest income | 4,143 | 3,561 | 16.3 | 1,662 | 1,536 | 8.2 | 4,056 | 3,794 | 6.9 | ||||||||||||||||||||
Total net revenue | 10,272 | 8,774 | 17.1 | 9,993 | 8,300 | 20.4 | 6,758 | 6,298 | 7.3 | ||||||||||||||||||||
Noninterest expense | 5,183 | 4,135 | 25.3 | 6,964 | 5,779 | 20.5 | 3,772 | 3,525 | 7.0 | ||||||||||||||||||||
Income (loss) before provision and income taxes | 5,089 | 4,639 | 9.7 | 3,029 | 2,521 | 20.2 | 2,986 | 2,773 | 7.7 | ||||||||||||||||||||
Provision for credit losses | 334 | 154 | * | 79 | 75 | 5.3 | 1,394 | 980 | 42.2 | ||||||||||||||||||||
Income (loss) before income taxes | 4,755 | 4,485 | 6.0 | 2,950 | 2,446 | 20.6 | 1,592 | 1,793 | (11.2) | ||||||||||||||||||||
Income taxes and taxable-equivalent adjustment | 1,190 | 1,122 | 6.1 | 738 | 612 | 20.6 | 398 | 449 | (11.4) | ||||||||||||||||||||
Net income (loss) | 3,565 | 3,363 | 6.0 | 2,212 | 1,834 | 20.6 | 1,194 | 1,344 | (11.2) | ||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Net income (loss) attributable to U.S. Bancorp | $ | 3,565 | $ | 3,363 | 6.0 | $ | 2,212 | $ | 1,834 | 20.6 | $ | 1,194 | $ | 1,344 | (11.2) | ||||||||||||||
Average Balance Sheet | |||||||||||||||||||||||||||||
Loans | $ | 175,780 | $ | 150,512 | 16.8 | $ | 161,862 | $ | 144,441 | 12.1 | $ | 38,471 | $ | 34,627 | 11.1 | ||||||||||||||
Goodwill | 4,682 | 3,634 | 28.8 | 4,466 | 3,250 | 37.4 | 3,327 | 3,305 | .7 | ||||||||||||||||||||
Other intangible assets | 1,007 | 365 | * | 5,265 | 3,784 | 39.1 | 350 | 423 | (17.3) | ||||||||||||||||||||
Assets | 202,642 | 169,554 | 19.5 | 179,103 | 160,174 | 11.8 | 44,292 | 41,072 | 7.8 | ||||||||||||||||||||
Noninterest-bearing deposits | 70,977 | 82,671 | (14.1) | 31,082 | 31,719 | (2.0) | 2,981 | 3,410 | (12.6) | ||||||||||||||||||||
Interest-bearing deposits | 199,780 | 175,345 | 13.9 | 189,148 | 163,190 | 15.9 | 103 | 162 | (36.4) | ||||||||||||||||||||
Total deposits | 270,757 | 258,016 | 4.9 | 220,230 | 194,909 | 13.0 | 3,084 | 3,572 | (13.7) | ||||||||||||||||||||
Total U.S. Bancorp shareholders’ equity | 22,362 | 18,159 | 23.1 | 16,016 | 12,678 | 26.3 | 9,310 | 8,233 | 13.1 |
Treasury and Corporate Support | Consolidated Company | |||||||||||||||||||
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | Percent Change | 2023 | 2022 | Percent Change | ||||||||||||||
Condensed Income Statement | ||||||||||||||||||||
Net interest income (taxable-equivalent basis) | $ | 365 | $ | 365 | — | % | $ | 17,527 | $ | 14,846 | 18.1 | % | ||||||||
Noninterest income | 756 | 565 | 33.8 | 10,617 | 9,456 | 12.3 | ||||||||||||||
Total net revenue | 1,121 | 930 | 20.5 | 28,144 | 24,302 | 15.8 | ||||||||||||||
Noninterest expense | 2,954 | 1,467 | * | 18,873 | 14,906 | 26.6 | ||||||||||||||
Income (loss) before provision and income taxes | (1,833) | (537) | * | 9,271 | 9,396 | (1.3) | ||||||||||||||
Provision for credit losses | 468 | 768 | (39.1) | 2,275 | 1,977 | 15.1 | ||||||||||||||
Income (loss) before income taxes | (2,301) | (1,305) | (76.3) | 6,996 | 7,419 | (5.7) | ||||||||||||||
Income taxes and taxable-equivalent adjustment | (788) | (602) | (30.9) | 1,538 | 1,581 | (2.7) | ||||||||||||||
Net income (loss) | (1,513) | (703) | * | 5,458 | 5,838 | (6.5) | ||||||||||||||
Net (income) loss attributable to noncontrolling interests | (29) | (13) | * | (29) | (13) | * | ||||||||||||||
Net income (loss) attributable to U.S. Bancorp | $ | (1,542) | $ | (716) | * | $ | 5,429 | $ | 5,825 | (6.8) | ||||||||||
Average Balance Sheet | ||||||||||||||||||||
Loans | $ | 5,162 | $ | 3,993 | 29.3 | $ | 381,275 | $ | 333,573 | 14.3 | ||||||||||
Goodwill | — | — | — | 12,475 | 10,189 | 22.4 | ||||||||||||||
Other intangible assets | 17 | 5 | * | 6,639 | 4,577 | 45.1 | ||||||||||||||
Assets | 237,403 | 221,349 | 7.3 | 663,440 | 592,149 | 12.0 | ||||||||||||||
Noninterest-bearing deposits | 2,728 | 2,594 | 5.2 | 107,768 | 120,394 | (10.5) | ||||||||||||||
Interest-bearing deposits | 8,864 | 3,293 | * | 397,895 | 341,990 | 16.3 | ||||||||||||||
Total deposits | 11,592 | 5,887 | 96.9 | 505,663 | 462,384 | 9.4 | ||||||||||||||
Total U.S. Bancorp shareholders’ equity | 5,972 | 11,346 | (47.4) | 53,660 | 50,416 | 6.4 |
58 U.S. Bancorp 2023 Annual Report | ||
59 | ||
At December 31 (Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Total equity | $ | 55,771 | $ | 51,232 | $ | 55,387 | |||||
Preferred stock | (6,808) | (6,808) | (6,371) | ||||||||
Noncontrolling interests | (465) | (466) | (469) | ||||||||
Goodwill (net of deferred tax liability)(a) | (11,480) | (11,395) | (9,323) | ||||||||
Intangible assets (net of deferred tax liability), other than mortgage servicing rights | (2,278) | (2,792) | (785) | ||||||||
Tangible common equity(1) | 34,740 | 29,771 | 38,439 | ||||||||
Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements related to the CECL methodology implementation | 44,947 | 41,560 | 41,701 | ||||||||
Adjustments(b) | (866) | (1,299) | (1,733) | ||||||||
Common equity tier 1 capital, reflecting the full implementation of the CECL methodology(2) | 44,081 | 40,261 | 39,968 | ||||||||
Total assets | 663,491 | 674,805 | 573,284 | ||||||||
Goodwill (net of deferred tax liability)(a) | (11,480) | (11,395) | (9,323) | ||||||||
Intangible assets (net of deferred tax liability), other than mortgage servicing rights | (2,278) | (2,792) | (785) | ||||||||
Tangible assets(3) | 649,733 | 660,618 | 563,176 | ||||||||
Risk-weighted assets, determined in accordance with prescribed regulatory capital requirements effective for the Company(4) | 453,390 | 496,500 | 418,571 | ||||||||
Adjustments(c) | (736) | (620) | (357) | ||||||||
Risk-weighted assets, reflecting the full implementation of the CECL methodology(5) | 452,654 | 495,880 | 418,214 | ||||||||
Ratios | |||||||||||
Tangible common equity to tangible assets(1)/(3) | 5.3 | % | 4.5 | % | 6.8 | % | |||||
Tangible common equity to risk-weighted assets(1)/(4) | 7.7 | 6.0 | 9.2 | ||||||||
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the CECL methodology(2)/(5) | 9.7 | 8.1 | 9.6 |
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Net interest income | $ | 17,396 | $ | 14,728 | $ | 12,494 | |||||
Taxable-equivalent adjustment(a) | 131 | 118 | 106 | ||||||||
Net interest income, on a taxable-equivalent basis | 17,527 | 14,846 | 12,600 | ||||||||
Net interest income, on a taxable-equivalent basis (as calculated above) | 17,527 | 14,846 | 12,600 | ||||||||
Noninterest income | 10,617 | 9,456 | 10,227 | ||||||||
Less: Securities gains (losses), net | (145) | 20 | 103 | ||||||||
Total net revenue, excluding net securities gains (losses)(1) | 28,289 | 24,282 | 22,724 | ||||||||
Noninterest expense(2) | 18,873 | 14,906 | 13,728 | ||||||||
Efficiency ratio(2)/(1) | 66.7 | % | 61.4 | % | 60.4 | % |
Year Ended December 31, 2023 (Dollars in Millions) | Net Revenue | Net Revenue as a Percent of the Consolidated Company | Net Revenue as a Percent of the Consolidated Company Excluding Treasury and Corporate Support | ||||||||
Wealth, Corporate, Commercial and Institutional Banking | $ | 10,272 | 36 | % | 38 | % | |||||
Consumer and Business Banking | 9,993 | 36 | 37 | ||||||||
Payment Services | 6,758 | 24 | 25 | ||||||||
Treasury and Corporate Support | 1,121 | 4 | |||||||||
Consolidated Company | 28,144 | 100 | % | ||||||||
Less: Treasury and Corporate Support | 1,121 | ||||||||||
Consolidated Company excluding Treasury and Corporate Support | $ | 27,023 | 100 | % |
60 U.S. Bancorp 2023 Annual Report | ||
Year Ended December 31 (Dollars in Millions) | 2023 | ||||
Net income applicable to U.S. Bancorp common shareholders | $ | 5,051 | |||
Intangible amortization (net-of-tax) | 502 | ||||
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization(1) | 5,553 | ||||
Less: Notable items(a) | (1,597) | ||||
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization and notable items(2) | 7,150 | ||||
Average total equity | 54,125 | ||||
Average preferred stock | (6,808) | ||||
Average noncontrolling interests | (465) | ||||
Average goodwill (net of deferred tax liability)(b) | (11,485) | ||||
Average intangible assets (net of deferred tax liability), other than mortgage servicing rights | (2,480) | ||||
Average tangible equity(3) | 32,887 | ||||
Return on tangible common equity(1)/(3) | 16.9 | % | |||
Return on tangible common equity, excluding notable items(2)/(3) | 21.7 | % |
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | ||||||
Net charge-offs | $ | 1,905 | $ | 1,063 | ||||
Less: Notable items(a) | 400 | 368 | ||||||
Net charge-offs, excluding notable items(1) | 1,505 | 695 | ||||||
Average loan balances(2) | 381,275 | 333,573 | ||||||
Net charge-off ratio, excluding notable items(1)/(2) | .39 | % | .21 | % |
At December 31 (Dollars in Millions, Except Per Share Data) | 2023 | 2022 | Percent Change | ||||||||
Common equity | $ | 48,498 | $ | 43,958 | |||||||
Goodwill (net of deferred tax liability)(a) | (11,480) | (11,395) | |||||||||
Intangible assets (net of deferred tax liability), other than mortgage servicing rights | (2,278) | (2,792) | |||||||||
Tangible common equity(1) | 34,740 | 29,771 | |||||||||
Common shares outstanding(2) | 1,558 | 1,531 | |||||||||
Tangible book value per common share(1)/(2) | $ | 22.30 | $ | 19.45 | 14.7 | % |
61 | ||
62 U.S. Bancorp 2023 Annual Report | ||
63 | ||
64 U.S. Bancorp 2023 Annual Report | ||
65 | ||
Allowance for Credit Losses | |||||
Description of the Matter | The Company’s loan and lease portfolio and the associated allowance for credit losses (ACL), were $373.8 billion and $7.8 billion as of December 31, 2023, respectively. The provision for credit losses was $2.3 billion for the year ended December 31, 2023. As discussed in Notes 1 and 6 to the financial statements, the ACL is established for current expected credit losses on the Company’s loan and lease portfolio, including unfunded credit commitments, by utilizing forward-looking expected loss models. When determining expected losses, the Company uses multiple probability weighted economic scenarios over a reasonable and supportable forecast period and then fully reverts to historical loss experience to estimate losses over the remaining asset lives. Model estimates are adjusted to consider any relevant changes in portfolio composition, lending policies, underwriting standards, risk management practices or economic conditions that would affect the accuracy of the model. Additionally, management may adjust ACL for other qualitative factors such as model imprecision, imprecision in economic scenario assumptions, and emerging risks related to either changes in the environment that are affecting specific portfolio segments, or changes in portfolio concentrations. Auditing management’s ACL estimate and related provision for credit losses was complex due to the highly judgmental nature of the probability weighted economic scenarios, expected loss models, as well as model and qualitative factor adjustments. |
66 U.S. Bancorp 2023 Annual Report | ||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company’s process for establishing the ACL, including management’s controls over: 1) selection and implementation of forward-looking economic scenarios and the probability weights assigned to them; 2) expected loss models, including model validation, implementation, monitoring, the completeness and accuracy of key inputs and assumptions used in the models, and management’s output assessment and related adjustments; 3) adjustments to reflect management’s consideration of qualitative factors; 4) the ACL methodology and governance process. With the support of specialists, we assessed the economic scenarios and related probability weights by, among other procedures, evaluating management’s methodology and agreeing a sample of key economic variables used to external sources. We also performed and considered the results of various sensitivity analyses and analytical procedures, including comparison of a sample of the key economic variables to alternative external sources, historical statistics and peer bank information. With respect to expected loss models, with the support of specialists, we evaluated model calculation design and reperformed the calculation for a sample of models. We also tested the appropriateness of key inputs and assumptions used in these models by agreeing a sample of inputs to internal and external sources. As to model adjustments, with the support of specialists, we evaluated management’s estimate methodology and assessment of factors that could potentially impact the accuracy of expected loss models. We also recalculated a sample of model adjustments and tested internal and external data used by agreeing a sample of inputs to internal and external sources. Regarding the completeness of qualitative factors identified and incorporated into measuring the ACL, we evaluated the potential impact of imprecision in the expected loss models and economic scenario assumptions; emerging risks related to changes in the environment impacting specific portfolio segments and portfolio concentrations. We also evaluated and tested internal and external data used in the qualitative adjustments by agreeing significant inputs and underlying data to internal and external sources. We evaluated the overall ACL amount, including model estimates and adjustments, qualitative factors adjustments, and whether the recorded ACL appropriately reflects expected credit losses on the loan and lease portfolio and unfunded credit commitments. We reviewed historical loss statistics, peer-bank information, subsequent events and transactions and considered whether they corroborate or contradict the Company’s measurement of the ACL. We searched for and evaluated information that corroborates or contradicts management’s forecasted assumptions and related probability weights as well as identification and measurement of adjustments to model estimates and qualitative factors. |
67 | ||
Consolidated Financial Statements | |||||
68 U.S. Bancorp 2023 Annual Report | ||
At December 31 (Dollars in Millions) | 2023 | 2022 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 61,192 | $ | 53,542 | ||||
Investment securities | ||||||||
Held-to-maturity (fair value $74,088 and $77,874, respectively) | 84,045 | 88,740 | ||||||
Available-for-sale ($338 and $858 pledged as collateral, respectively)(a) | 69,706 | 72,910 | ||||||
Loans held for sale (including $2,011 and $1,849 of mortgage loans carried at fair value, respectively) | 2,201 | 2,200 | ||||||
Loans | ||||||||
Commercial | 131,881 | 135,690 | ||||||
Commercial real estate | 53,455 | 55,487 | ||||||
Residential mortgages | 115,530 | 115,845 | ||||||
Credit card | 28,560 | 26,295 | ||||||
Other retail | 44,409 | 54,896 | ||||||
Total loans | 373,835 | 388,213 | ||||||
Less allowance for loan losses | (7,379) | (6,936) | ||||||
Net loans | 366,456 | 381,277 | ||||||
Premises and equipment | 3,623 | 3,858 | ||||||
Goodwill | 12,489 | 12,373 | ||||||
Other intangible assets | 6,084 | 7,155 | ||||||
Other assets (including $3,548 and $702 of trading securities at fair value pledged as collateral, respectively)(a) | 57,695 | 52,750 | ||||||
Total assets | $ | 663,491 | $ | 674,805 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Deposits | ||||||||
Noninterest-bearing | $ | 89,989 | $ | 137,743 | ||||
Interest-bearing (including $2,818 of time deposits carried at fair value at December 31, 2023) | 422,323 | 387,233 | ||||||
Total deposits | 512,312 | 524,976 | ||||||
Short-term borrowings | 15,279 | 31,216 | ||||||
Long-term debt | 51,480 | 39,829 | ||||||
Other liabilities | 28,649 | 27,552 | ||||||
Total liabilities | 607,720 | 623,573 | ||||||
Shareholders’ equity | ||||||||
Preferred stock | 6,808 | 6,808 | ||||||
Common stock, par value $0.01 a share — authorized: 4,000,000,000 shares; issued: 2023 and 2022—2,125,725,742 shares | 21 | 21 | ||||||
Capital surplus | 8,673 | 8,712 | ||||||
Retained earnings | 74,026 | 71,901 | ||||||
Less cost of common stock in treasury: 2023 — 567,732,687 shares; 2022 — 594,747,484 shares | (24,126) | (25,269) | ||||||
Accumulated other comprehensive income (loss) | (10,096) | (11,407) | ||||||
Total U.S. Bancorp shareholders’ equity | 55,306 | 50,766 | ||||||
Noncontrolling interests | 465 | 466 | ||||||
Total equity | 55,771 | 51,232 | ||||||
Total liabilities and equity | $ | 663,491 | $ | 674,805 |
69 | ||
Year Ended December 31 (Dollars and Shares in Millions, Except Per Share Data) | 2023 | 2022 | 2021 | ||||||||
Interest Income | |||||||||||
Loans | $ | 22,324 | $ | 13,603 | $ | 10,747 | |||||
Loans held for sale | 147 | 201 | 232 | ||||||||
Investment securities | 4,485 | 3,378 | 2,365 | ||||||||
Other interest income | 3,051 | 763 | 143 | ||||||||
Total interest income | 30,007 | 17,945 | 13,487 | ||||||||
Interest Expense | |||||||||||
Deposits | 8,775 | 1,872 | 320 | ||||||||
Short-term borrowings | 1,971 | 565 | 70 | ||||||||
Long-term debt | 1,865 | 780 | 603 | ||||||||
Total interest expense | 12,611 | 3,217 | 993 | ||||||||
Net interest income | 17,396 | 14,728 | 12,494 | ||||||||
Provision for credit losses | 2,275 | 1,977 | (1,173) | ||||||||
Net interest income after provision for credit losses | 15,121 | 12,751 | 13,667 | ||||||||
Noninterest Income | |||||||||||
Card revenue | 1,630 | 1,512 | 1,507 | ||||||||
Corporate payment products revenue | 759 | 698 | 575 | ||||||||
Merchant processing services | 1,659 | 1,579 | 1,449 | ||||||||
Trust and investment management fees | 2,459 | 2,209 | 1,832 | ||||||||
Service charges | 1,306 | 1,298 | 1,338 | ||||||||
Commercial products revenue | 1,372 | 1,105 | 1,102 | ||||||||
Mortgage banking revenue | 540 | 527 | 1,361 | ||||||||
Investment products fees | 279 | 235 | 239 | ||||||||
Securities gains (losses), net | (145) | 20 | 103 | ||||||||
Other | 758 | 273 | 721 | ||||||||
Total noninterest income | 10,617 | 9,456 | 10,227 | ||||||||
Noninterest Expense | |||||||||||
Compensation and employee benefits | 10,416 | 9,157 | 8,728 | ||||||||
Net occupancy and equipment | 1,266 | 1,096 | 1,048 | ||||||||
Professional services | 560 | 529 | 492 | ||||||||
Marketing and business development | 726 | 456 | 366 | ||||||||
Technology and communications | 2,049 | 1,726 | 1,728 | ||||||||
Other intangibles | 636 | 215 | 159 | ||||||||
Merger and integration charges | 1,009 | 329 | — | ||||||||
Other | 2,211 | 1,398 | 1,207 | ||||||||
Total noninterest expense | 18,873 | 14,906 | 13,728 | ||||||||
Income before income taxes | 6,865 | 7,301 | 10,166 | ||||||||
Applicable income taxes | 1,407 | 1,463 | 2,181 | ||||||||
Net income | 5,458 | 5,838 | 7,985 | ||||||||
Net (income) loss attributable to noncontrolling interests | (29) | (13) | (22) | ||||||||
Net income attributable to U.S. Bancorp | $ | 5,429 | $ | 5,825 | $ | 7,963 | |||||
Net income applicable to U.S. Bancorp common shareholders | $ | 5,051 | $ | 5,501 | $ | 7,605 | |||||
Earnings per common share | $ | 3.27 | $ | 3.69 | $ | 5.11 | |||||
Diluted earnings per common share | $ | 3.27 | $ | 3.69 | $ | 5.10 | |||||
Average common shares outstanding | 1,543 | 1,489 | 1,489 | ||||||||
Average diluted common shares outstanding | 1,543 | 1,490 | 1,490 |
70 U.S. Bancorp 2023 Annual Report | ||
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Net income | $ | 5,458 | $ | 5,838 | $ | 7,985 | |||||
Other Comprehensive Income (Loss) | |||||||||||
Changes in unrealized gains (losses) on investment securities available-for-sale | 1,500 | (13,656) | (3,698) | ||||||||
Changes in unrealized gains (losses) on derivative hedges | (252) | (75) | 125 | ||||||||
Foreign currency translation | 21 | (10) | 35 | ||||||||
Changes in unrealized gains (losses) on retirement plans | (262) | 526 | 400 | ||||||||
Reclassification to earnings of realized (gains) losses | 748 | 544 | 104 | ||||||||
Income taxes related to other comprehensive income (loss) | (444) | 3,207 | 769 | ||||||||
Total other comprehensive income (loss) | 1,311 | (9,464) | (2,265) | ||||||||
Comprehensive income (loss) | 6,769 | (3,626) | 5,720 | ||||||||
Comprehensive (income) loss attributable to noncontrolling interests | (29) | (13) | (22) | ||||||||
Comprehensive income (loss) attributable to U.S. Bancorp | $ | 6,740 | $ | (3,639) | $ | 5,698 |
71 | ||
U.S. Bancorp Shareholders | ||||||||||||||||||||||||||||||||
(Dollars and Shares in Millions, Except Per Share Data) | 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, 2020 | 1,507 | $ | 5,983 | $ | 21 | $ | 8,511 | $ | 64,188 | $ | (25,930) | $ | 322 | $ | 53,095 | $ | 630 | $ | 53,725 | |||||||||||||
Net income (loss) | 7,963 | 7,963 | 22 | 7,985 | ||||||||||||||||||||||||||||
Other comprehensive income (loss) | (2,265) | (2,265) | (2,265) | |||||||||||||||||||||||||||||
Preferred stock dividends(a) | (303) | (303) | (303) | |||||||||||||||||||||||||||||
Common stock dividends ($1.76 per share) | (2,630) | (2,630) | (2,630) | |||||||||||||||||||||||||||||
Issuance of preferred stock | 2,221 | 2,221 | 2,221 | |||||||||||||||||||||||||||||
Call and redemption of preferred stock | (1,833) | (17) | (1,850) | (1,850) | ||||||||||||||||||||||||||||
Issuance of common and treasury stock | 5 | (169) | 215 | 46 | 46 | |||||||||||||||||||||||||||
Purchase of treasury stock | (28) | (1,556) | (1,556) | (1,556) | ||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | (20) | (20) | |||||||||||||||||||||||||||||
Purchase of noncontrolling interests | — | (167) | (167) | |||||||||||||||||||||||||||||
Net other changes in noncontrolling interests | — | 4 | 4 | |||||||||||||||||||||||||||||
Stock option and restricted stock grants | 197 | 197 | 197 | |||||||||||||||||||||||||||||
Balance December 31, 2021 | 1,484 | $ | 6,371 | $ | 21 | $ | 8,539 | $ | 69,201 | $ | (27,271) | $ | (1,943) | $ | 54,918 | $ | 469 | $ | 55,387 | |||||||||||||
Net income (loss) | 5,825 | 5,825 | 13 | 5,838 | ||||||||||||||||||||||||||||
Other comprehensive income (loss) | (9,464) | (9,464) | (9,464) | |||||||||||||||||||||||||||||
Preferred stock dividends(b) | (296) | (296) | (296) | |||||||||||||||||||||||||||||
Common stock dividends ($1.88 per share) | (2,829) | (2,829) | (2,829) | |||||||||||||||||||||||||||||
Issuance of preferred stock | 437 | 437 | 437 | |||||||||||||||||||||||||||||
Issuance of common and treasury stock | 48 | (32) | 2,071 | 2,039 | 2,039 | |||||||||||||||||||||||||||
Purchase of treasury stock | (1) | (69) | (69) | (69) | ||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | (13) | (13) | |||||||||||||||||||||||||||||
Net other changes in noncontrolling interests | — | (3) | (3) | |||||||||||||||||||||||||||||
Stock option and restricted stock grants | 205 | 205 | 205 | |||||||||||||||||||||||||||||
Balance December 31, 2022 | 1,531 | $ | 6,808 | $ | 21 | $ | 8,712 | $ | 71,901 | $ | (25,269) | $ | (11,407) | $ | 50,766 | $ | 466 | $ | 51,232 | |||||||||||||
46 | 46 | 46 | ||||||||||||||||||||||||||||||
Net income (loss) | 5,429 | 5,429 | 29 | 5,458 | ||||||||||||||||||||||||||||
Other comprehensive income (loss) | 1,311 | 1,311 | 1,311 | |||||||||||||||||||||||||||||
Preferred stock dividends(d) | (350) | (350) | (350) | |||||||||||||||||||||||||||||
Common stock dividends ($1.93 per share) | (3,000) | (3,000) | (3,000) | |||||||||||||||||||||||||||||
Issuance of common and treasury stock | 28 | (264) | 1,205 | 941 | 941 | |||||||||||||||||||||||||||
Purchase of treasury stock | (1) | (62) | (62) | (62) | ||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | (29) | (29) | |||||||||||||||||||||||||||||
Net other changes in noncontrolling interests | — | (1) | (1) | |||||||||||||||||||||||||||||
Stock option and restricted stock grants | 225 | 225 | 225 | |||||||||||||||||||||||||||||
Balance December 31, 2023 | 1,558 | $ | 6,808 | $ | 21 | $ | 8,673 | $ | 74,026 | $ | (24,126) | $ | (10,096) | $ | 55,306 | $ | 465 | $ | 55,771 |
72 U.S. Bancorp 2023 Annual Report | ||
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Operating Activities | |||||||||||
Net income attributable to U.S. Bancorp | $ | 5,429 | $ | 5,825 | $ | 7,963 | |||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Provision for credit losses | 2,275 | 1,977 | (1,173) | ||||||||
Depreciation and amortization of premises and equipment | 382 | 345 | 338 | ||||||||
Amortization of intangibles | 636 | 215 | 159 | ||||||||
(Gain) loss on sale of loans held for sale | 7 | 387 | (1,135) | ||||||||
(Gain) loss on sale of securities and other assets | 119 | (188) | (398) | ||||||||
Loans originated for sale, net of repayments | (26,936) | (33,127) | (72,627) | ||||||||
Proceeds from sales of loans held for sale | 26,686 | 38,895 | 74,315 | ||||||||
Other, net | (151) | 6,790 | 2,428 | ||||||||
Net cash provided by operating activities | 8,447 | 21,119 | 9,870 | ||||||||
Investing Activities | |||||||||||
Proceeds from sales of available-for-sale investment securities | 11,209 | 36,391 | 16,075 | ||||||||
Proceeds from maturities of held-to-maturity investment securities | 6,164 | 5,759 | 1,093 | ||||||||
Proceeds from maturities of available-for-sale investment securities | 6,314 | 14,927 | 41,199 | ||||||||
Purchases of held-to-maturity investment securities | (932) | (7,091) | (1,088) | ||||||||
Purchases of available-for-sale investment securities | (8,342) | (24,592) | (99,045) | ||||||||
Net decrease (increase) in loans outstanding | 3,829 | (27,318) | (17,459) | ||||||||
Proceeds from sales of loans | 5,707 | 4,420 | 6,183 | ||||||||
Purchases of loans | (1,106) | (2,113) | (4,466) | ||||||||
Net (increase) decrease in securities purchased under agreements to resell | (2,404) | 252 | 18 | ||||||||
Net cash (paid for) received from acquisitions | (330) | 12,257 | (661) | ||||||||
Other, net | (1,184) | (5,392) | 664 | ||||||||
Net cash provided by (used in) investing activities | 18,925 | 7,500 | (57,487) | ||||||||
Financing Activities | |||||||||||
Net (decrease) increase in deposits | (12,291) | (17,215) | 26,313 | ||||||||
Net (decrease) increase in short-term borrowings | (16,508) | 15,213 | 30 | ||||||||
Proceeds from issuance of long-term debt | 15,583 | 8,732 | 2,626 | ||||||||
Principal payments or redemption of long-term debt | (4,084) | (6,926) | (11,432) | ||||||||
Proceeds from issuance of preferred stock | — | 437 | 2,221 | ||||||||
Proceeds from issuance of common stock | 951 | 21 | 43 | ||||||||
Repurchase of preferred stock | — | (1,100) | (1,250) | ||||||||
Repurchase of common stock | (62) | (69) | (1,555) | ||||||||
Cash dividends paid on preferred stock | (341) | (299) | (308) | ||||||||
Cash dividends paid on common stock | (2,970) | (2,776) | (2,579) | ||||||||
Purchase of noncontrolling interests | — | — | (167) | ||||||||
Net cash (used in) provided by financing activities | (19,722) | (3,982) | 13,942 | ||||||||
Change in cash and due from banks | 7,650 | 24,637 | (33,675) | ||||||||
Cash and due from banks at beginning of period | 53,542 | 28,905 | 62,580 | ||||||||
Cash and due from banks at end of period | $ | 61,192 | $ | 53,542 | $ | 28,905 | |||||
Supplemental Cash Flow Disclosures | |||||||||||
Cash paid for income taxes | $ | 645 | $ | 767 | $ | 535 | |||||
Cash paid for interest | 12,282 | 2,717 | 1,061 | ||||||||
Noncash transfer of available-for-sale investment securities to held-to-maturity | — | 40,695 | 41,823 | ||||||||
Net noncash transfers to foreclosed property | 26 | 23 | 14 | ||||||||
Acquisitions | |||||||||||
Assets (sold) acquired | $ | (83) | $ | 106,209 | $ | 749 | |||||
Liabilities sold (assumed) | 413 | (95,753) | (88) | ||||||||
Net | $ | 330 | $ | 10,456 | $ | 661 |
73 | ||
NOTE 1 | Significant Accounting Policies |
74 U.S. Bancorp 2023 Annual Report | ||
75 | ||
76 U.S. Bancorp 2023 Annual Report | ||
77 | ||
78 U.S. Bancorp 2023 Annual Report | ||
79 | ||
NOTE 2 | Accounting Changes |
80 U.S. Bancorp 2023 Annual Report | ||
NOTE 3 | Business Combinations |
81 | ||
December 1, 2022 (Dollars in Millions) | |||||
Acquisition consideration | |||||
Cash | $ | 5,500 | |||
Market value of shares of common stock | 2,014 | ||||
Total consideration transferred at acquisition close date | 7,514 | ||||
Discounted liability to MUFG(a) | 2,944 | ||||
Total | $ | 10,458 | |||
Fair Value of MUB assets and liabilities | |||||
Assets | |||||
Cash and due from banks | $ | 17,754 | |||
Investment securities | 22,725 | ||||
Loans held for sale | 2,220 | ||||
Loans | 53,395 | ||||
Less allowance for loan losses | (463) | ||||
Net loans | 52,932 | ||||
Premises and equipment | 646 | ||||
Other intangible assets (excluding goodwill) | 2,808 | ||||
Other assets | 4,764 | ||||
Total assets | $ | 103,849 | |||
Liabilities | |||||
Deposits | $ | 86,110 | |||
Short-term borrowings | 4,777 | ||||
Long-term debt | 2,584 | ||||
Other liabilities | 2,243 | ||||
Total liabilities | 95,714 | ||||
Less: Net assets | $ | 8,135 | |||
Goodwill | $ | 2,323 |
82 U.S. Bancorp 2023 Annual Report | ||
December 1, 2022 (Dollars in Millions) | Unpaid Principal Balance | Fair Value | ||||||
Commercial | $ | 11,771 | $ | 11,366 | ||||
Commercial real estate | 14,397 | 13,737 | ||||||
Residential mortgages | 28,256 | 26,247 | ||||||
Credit card | 299 | 212 | ||||||
Other retail | 1,397 | 1,370 | ||||||
Total loans | $ | 56,120 | $ | 52,932 |
(Dollars in Millions) | Weighted-Average Estimated Life | Amortization Method | Fair Value | ||||||||
Mortgage servicing rights | — | (a) | $ | 147 | |||||||
Core deposit benefits | 10 years | Accelerated | 2,635 | ||||||||
Other | 11 years | Accelerated | 26 | ||||||||
Total other intangible assets (excluding goodwill) | $ | 2,808 |
83 | ||
(Dollars in Millions) | One Month Ended December 31, 2022 | |||||||
Net interest income | $ | 255 | ||||||
Noninterest income | (38) | (a) | ||||||
Net income (loss) | (562) |
Year Ended December 31 (Dollars in Millions) | 2022 | 2021 | ||||||
Net interest income | $ | 17,541 | $ | 14,958 | ||||
Noninterest income | 10,068 | 11,071 | ||||||
Net income | 7,184 | 7,187 |
December 1, 2022 (Dollars in Millions) | |||||
Principal balance | $ | 5,097 | |||
Allowance for credit losses at acquisition | (463) | ||||
Non-credit discount | (213) | ||||
Purchase price | $ | 4,421 |
NOTE 4 | Restrictions on Cash and Due from Banks |
84 U.S. Bancorp 2023 Annual Report | ||
NOTE 5 | Investment Securities |
2023 | 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 | $ | 1,345 | $ | — | $ | (35) | $ | 1,310 | $ | 1,344 | $ | — | $ | (51) | $ | 1,293 | ||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||
Residential agency | 80,997 | 6 | (9,929) | 71,074 | 85,693 | 2 | (10,810) | 74,885 | ||||||||||||||||||
Commercial agency | 1,695 | 6 | (5) | 1,696 | 1,703 | 1 | (8) | 1,696 | ||||||||||||||||||
Other | 8 | — | — | 8 | — | — | — | — | ||||||||||||||||||
Total held-to-maturity | $ | 84,045 | $ | 12 | $ | (9,969) | $ | 74,088 | $ | 88,740 | $ | 3 | $ | (10,869) | $ | 77,874 | ||||||||||
Available-for-sale | ||||||||||||||||||||||||||
U.S. Treasury and agencies | $ | 21,768 | $ | 8 | $ | (2,234) | $ | 19,542 | $ | 24,801 | $ | 1 | $ | (2,769) | $ | 22,033 | ||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||
Residential agency | 28,185 | 104 | (2,211) | 26,078 | 32,060 | 8 | (2,797) | 29,271 | ||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
Agency | 8,703 | — | (1,360) | 7,343 | 8,736 | — | (1,591) | 7,145 | ||||||||||||||||||
Non-agency | 7 | — | (1) | 6 | 7 | — | — | 7 | ||||||||||||||||||
Asset-backed securities | 6,713 | 25 | (14) | 6,724 | 4,356 | 5 | (38) | 4,323 | ||||||||||||||||||
Obligations of state and political subdivisions | 10,867 | 36 | (914) | 9,989 | 11,484 | 12 | (1,371) | 10,125 | ||||||||||||||||||
Other | 24 | — | — | 24 | 6 | — | — | 6 | ||||||||||||||||||
Total available-for-sale, excluding portfolio level basis adjustments | 76,267 | 173 | (6,734) | 69,706 | 81,450 | 26 | (8,566) | 72,910 | ||||||||||||||||||
Portfolio level basis adjustments (a) | 335 | — | (335) | — | — | — | — | — | ||||||||||||||||||
Total available-for-sale | $ | 76,602 | $ | 173 | $ | (7,069) | $ | 69,706 | $ | 81,450 | $ | 26 | $ | (8,566) | $ | 72,910 |
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Taxable | $ | 4,171 | $ | 3,081 | $ | 2,103 | |||||
Non-taxable | 314 | 297 | 262 | ||||||||
Total interest income from investment securities | $ | 4,485 | $ | 3,378 | $ | 2,365 |
85 | ||
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Realized gains | $ | 74 | $ | 163 | $ | 122 | |||||
Realized losses | (219) | (143) | (19) | ||||||||
Net realized gains (losses) | $ | (145) | $ | 20 | $ | 103 | |||||
Income tax expense (benefit) on net realized gains (losses) | $ | (37) | $ | 5 | $ | 26 |
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 | $ | 874 | $ | (3) | $ | 17,270 | $ | (2,231) | $ | 18,144 | $ | (2,234) | ||||||||
Mortgage-backed securities | ||||||||||||||||||||
Residential agency | 519 | (8) | 21,356 | (2,203) | 21,875 | (2,211) | ||||||||||||||
Commercial | ||||||||||||||||||||
Agency | — | — | 7,343 | (1,360) | 7,343 | (1,360) | ||||||||||||||
Non-agency | — | — | 6 | (1) | 6 | (1) | ||||||||||||||
Asset-backed securities | 2,235 | (14) | — | — | 2,235 | (14) | ||||||||||||||
Obligations of state and political subdivisions | 544 | (3) | 7,464 | (911) | 8,008 | (914) | ||||||||||||||
Other | — | — | 4 | — | 4 | — | ||||||||||||||
Total investment securities | $ | 4,172 | $ | (28) | $ | 53,443 | $ | (6,706) | $ | 57,615 | $ | (6,734) |
86 U.S. Bancorp 2023 Annual Report | ||
(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 | $ | 50 | $ | 50 | 0.3 | 2.67 | % | |||||||
Maturing after one year through five years | 1,295 | 1,260 | 2.4 | 2.85 | ||||||||||
Maturing after five years through ten years | — | — | — | — | ||||||||||
Maturing after ten years | — | — | — | — | ||||||||||
Total | $ | 1,345 | $ | 1,310 | 2.3 | 2.85 | % | |||||||
Mortgage-Backed Securities(a) | ||||||||||||||
Maturing in one year or less | $ | 22 | $ | 22 | 0.7 | 4.43 | % | |||||||
Maturing after one year through five years | 1,268 | 1,266 | 2.5 | 4.52 | ||||||||||
Maturing after five years through ten years | 75,984 | 67,094 | 8.8 | 2.19 | ||||||||||
Maturing after ten years | 5,418 | 4,388 | 10.2 | 1.91 | ||||||||||
Total | $ | 82,692 | $ | 72,770 | 8.8 | 2.21 | % | |||||||
Other | ||||||||||||||
Maturing in one year or less | $ | — | $ | — | — | — | % | |||||||
Maturing after one year through five years | 8 | 8 | 2.8 | 2.56 | ||||||||||
Maturing after five years through ten years | — | — | — | — | ||||||||||
Maturing after ten years | — | — | — | — | ||||||||||
Total | $ | 8 | $ | 8 | 2.8 | 2.56 | % | |||||||
Total held-to-maturity(b) | $ | 84,045 | $ | 74,088 | 8.7 | 2.22 | % | |||||||
Available-for-sale | ||||||||||||||
U.S. Treasury and Agencies | ||||||||||||||
Maturing in one year or less | $ | 9 | $ | 9 | 0.3 | 5.28 | % | |||||||
Maturing after one year through five years | 8,882 | 8,378 | 3.7 | 2.35 | ||||||||||
Maturing after five years through ten years | 11,165 | 9,827 | 6.8 | 2.08 | ||||||||||
Maturing after ten years | 1,712 | 1,328 | 10.8 | 2.02 | ||||||||||
Total | $ | 21,768 | $ | 19,542 | 5.9 | 2.19 | % | |||||||
Mortgage-Backed Securities(a) | ||||||||||||||
Maturing in one year or less | $ | 83 | $ | 81 | 0.8 | 2.26 | % | |||||||
Maturing after one year through five years | 11,196 | 10,860 | 3.5 | 3.80 | ||||||||||
Maturing after five years through ten years | 24,455 | 21,483 | 7.3 | 2.76 | ||||||||||
Maturing after ten years | 1,161 | 1,003 | 10.9 | 3.43 | ||||||||||
Total | $ | 36,895 | $ | 33,427 | 6.3 | 3.09 | % | |||||||
Asset-Backed Securities (a) | ||||||||||||||
Maturing in one year or less | $ | — | $ | — | — | — | % | |||||||
Maturing after one year through five years | 5,834 | 5,844 | 1.7 | 5.05 | ||||||||||
Maturing after five years through ten years | 879 | 880 | 5.8 | 7.15 | ||||||||||
Maturing after ten years | — | — | — | — | ||||||||||
Total | $ | 6,713 | $ | 6,724 | 2.2 | 5.33 | % | |||||||
Obligations of State and Political Subdivisions(c) (d) | ||||||||||||||
Maturing in one year or less | $ | 225 | $ | 225 | 0.4 | 5.52 | % | |||||||
Maturing after one year through five years | 3,546 | 3,536 | 3.0 | 4.55 | ||||||||||
Maturing after five years through ten years | 1,453 | 1,414 | 7.3 | 3.86 | ||||||||||
Maturing after ten years | 5,643 | 4,814 | 15.3 | 3.14 | ||||||||||
Total | $ | 10,867 | $ | 9,989 | 9.9 | 3.75 | % | |||||||
Other | ||||||||||||||
Maturing in one year or less | $ | — | $ | — | — | — | % | |||||||
Maturing after one year through five years | 24 | 24 | 1.7 | 4.51 | ||||||||||
Maturing after five years through ten years | — | — | — | — | ||||||||||
Maturing after ten years | — | — | — | — | ||||||||||
Total | $ | 24 | $ | 24 | 1.7 | 4.51 | % | |||||||
Total available-for-sale(b) (f) | $ | 76,267 | $ | 69,706 | 6.3 | 3.12 | % |
87 | ||
NOTE 6 | Loans and Allowance for Credit Losses |
(Dollars in Millions) | 2023 | 2022 | ||||||
Commercial | ||||||||
Commercial | $ | 127,676 | $ | 131,128 | ||||
Lease financing | 4,205 | 4,562 | ||||||
Total commercial | 131,881 | 135,690 | ||||||
Commercial Real Estate | ||||||||
Commercial mortgages | 41,934 | 43,765 | ||||||
Construction and development | 11,521 | 11,722 | ||||||
Total commercial real estate | 53,455 | 55,487 | ||||||
Residential Mortgages | ||||||||
Residential mortgages | 108,605 | 107,858 | ||||||
Home equity loans, first liens | 6,925 | 7,987 | ||||||
Total residential mortgages | 115,530 | 115,845 | ||||||
Credit Card | 28,560 | 26,295 | ||||||
Other Retail | ||||||||
Retail leasing | 4,135 | 5,519 | ||||||
Home equity and second mortgages | 13,056 | 12,863 | ||||||
Revolving credit | 3,668 | 3,983 | ||||||
Installment | 13,889 | 14,592 | ||||||
Automobile | 9,661 | 17,939 | ||||||
Total other retail | 44,409 | 54,896 | ||||||
Total loans | $ | 373,835 | $ | 388,213 |
88 U.S. Bancorp 2023 Annual Report | ||
(Dollars in Millions) | Commercial | Commercial Real Estate | Residential Mortgages | Credit Card | Other Retail | Total Loans | ||||||||||||||
Balance at December 31, 2022 | $ | 2,163 | $ | 1,325 | $ | 926 | $ | 2,020 | $ | 970 | $ | 7,404 | ||||||||
Add | ||||||||||||||||||||
Change in accounting principle(a) | — | — | (31) | (27) | (4) | (62) | ||||||||||||||
Allowance for acquired credit losses(b) | — | 127 | — | — | — | 127 | ||||||||||||||
Provision for credit losses | 270 | 431 | 41 | 1,259 | 274 | 2,275 | ||||||||||||||
Deduct | ||||||||||||||||||||
Loans charged-off | 389 | 281 | 129 | 1,014 | 478 | 2,291 | ||||||||||||||
Less recoveries of loans charged-off | (75) | (18) | (20) | (165) | (108) | (386) | ||||||||||||||
Net loan charge-offs (recoveries) | 314 | 263 | 109 | 849 | 370 | 1,905 | ||||||||||||||
Balance at December 31, 2023 | $ | 2,119 | $ | 1,620 | $ | 827 | $ | 2,403 | $ | 870 | $ | 7,839 | ||||||||
Balance at December 31, 2021 | $ | 1,849 | $ | 1,123 | $ | 565 | $ | 1,673 | $ | 945 | $ | 6,155 | ||||||||
Add | ||||||||||||||||||||
Allowance for acquired credit losses(b) | 163 | 87 | 36 | 45 | 5 | 336 | ||||||||||||||
Provision for credit losses(c) | 378 | 152 | 302 | 826 | 319 | 1,977 | ||||||||||||||
Deduct | ||||||||||||||||||||
Loans charged-off(d) | 319 | 54 | 13 | 696 | 418 | 1,500 | ||||||||||||||
Less recoveries of loans charged-off | (92) | (17) | (36) | (172) | (120) | (437) | ||||||||||||||
Net loan charge-offs (recoveries) | 227 | 37 | (23) | 524 | 298 | 1,063 | ||||||||||||||
Other Changes | — | — | — | — | (1) | (1) | ||||||||||||||
Balance at December 31, 2022 | $ | 2,163 | $ | 1,325 | $ | 926 | $ | 2,020 | $ | 970 | $ | 7,404 | ||||||||
Balance at December 31, 2020 | $ | 2,423 | $ | 1,544 | $ | 573 | $ | 2,355 | $ | 1,115 | $ | 8,010 | ||||||||
Add | ||||||||||||||||||||
Provision for credit losses | (471) | (419) | (40) | (170) | (73) | (1,173) | ||||||||||||||
Deduct | ||||||||||||||||||||
Loans charged-off | 222 | 29 | 18 | 686 | 253 | 1,208 | ||||||||||||||
Less recoveries of loans charged-off | (119) | (27) | (50) | (174) | (156) | (526) | ||||||||||||||
Net loan charge-offs (recoveries) | 103 | 2 | (32) | 512 | 97 | 682 | ||||||||||||||
Balance at December 31, 2021 | $ | 1,849 | $ | 1,123 | $ | 565 | $ | 1,673 | $ | 945 | $ | 6,155 |
89 | ||
(Dollars in Millions) | Commercial | Commercial Real Estate(a) | Residential Mortgages(b) | Credit Card(c) | Other Retail(d) | Total Loans | ||||||||||||||
Originated in 2023 | $ | 48 | $ | 63 | $ | — | $ | — | $ | 57 | $ | 168 | ||||||||
Originated in 2022 | 63 | 88 | 1 | — | 130 | 282 | ||||||||||||||
Originated in 2021 | 30 | 69 | 6 | — | 83 | 188 | ||||||||||||||
Originated in 2020 | 17 | 2 | 8 | — | 38 | 65 | ||||||||||||||
Originated in 2019 | 15 | 3 | 16 | — | 31 | 65 | ||||||||||||||
Originated prior to 2019 | 53 | 56 | 98 | — | 31 | 238 | ||||||||||||||
Revolving | 163 | — | — | 1,014 | 80 | 1,257 | ||||||||||||||
Revolving converted to term | — | — | — | — | 28 | 28 | ||||||||||||||
Total charge-offs | $ | 389 | $ | 281 | $ | 129 | $ | 1,014 | $ | 478 | $ | 2,291 |
Accruing | |||||||||||||||||
(Dollars in Millions) | Current | 30-89 Days Past Due | 90 Days or More Past Due | Nonperforming(b) | Total | ||||||||||||
December 31, 2023 | |||||||||||||||||
Commercial | $ | 130,925 | $ | 464 | $ | 116 | $ | 376 | $ | 131,881 | |||||||
Commercial real estate | 52,619 | 55 | 4 | 777 | 53,455 | ||||||||||||
Residential mortgages(a) | 115,067 | 169 | 136 | 158 | 115,530 | ||||||||||||
Credit card | 27,779 | 406 | 375 | — | 28,560 | ||||||||||||
Other retail | 43,926 | 278 | 67 | 138 | 44,409 | ||||||||||||
Total loans | $ | 370,316 | $ | 1,372 | $ | 698 | $ | 1,449 | $ | 373,835 | |||||||
December 31, 2022 | |||||||||||||||||
Commercial | $ | 135,077 | $ | 350 | $ | 94 | $ | 169 | $ | 135,690 | |||||||
Commercial real estate | 55,057 | 87 | 5 | 338 | 55,487 | ||||||||||||
Residential mortgages(a) | 115,224 | 201 | 95 | 325 | 115,845 | ||||||||||||
Credit card | 25,780 | 283 | 231 | 1 | 26,295 | ||||||||||||
Other retail | 54,382 | 309 | 66 | 139 | 54,896 | ||||||||||||
Total loans | $ | 385,520 | $ | 1,230 | $ | 491 | $ | 972 | $ | 388,213 |
90 U.S. Bancorp 2023 Annual Report | ||
December 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 | $ | 43,023 | $ | 827 | $ | 856 | $ | 1,683 | $ | 44,706 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Originated in 2022 | 40,076 | 274 | 632 | 906 | 40,982 | 61,229 | 245 | 315 | 560 | 61,789 | ||||||||||||||||||||||
Originated in 2021 | 9,219 | 117 | 154 | 271 | 9,490 | 26,411 | 159 | 78 | 237 | 26,648 | ||||||||||||||||||||||
Originated in 2020 | 3,169 | 92 | 71 | 163 | 3,332 | 7,049 | 68 | 138 | 206 | 7,255 | ||||||||||||||||||||||
Originated in 2019 | 1,340 | 18 | 103 | 121 | 1,461 | 3,962 | 51 | 210 | 261 | 4,223 | ||||||||||||||||||||||
Originated prior to 2019 | 3,963 | 12 | 106 | 118 | 4,081 | 8,986 | 64 | 129 | 193 | 9,179 | ||||||||||||||||||||||
Revolving(b) | 26,213 | 362 | 1,254 | 1,616 | 27,829 | 25,888 | 344 | 364 | 708 | 26,596 | ||||||||||||||||||||||
Total commercial | 127,003 | 1,702 | 3,176 | 4,878 | 131,881 | 133,525 | 931 | 1,234 | 2,165 | 135,690 | ||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||
Originated in 2023 | 8,848 | 465 | 2,206 | 2,671 | 11,519 | — | — | — | — | — | ||||||||||||||||||||||
Originated in 2022 | 11,831 | 382 | 1,141 | 1,523 | 13,354 | 14,527 | 206 | 519 | 725 | 15,252 | ||||||||||||||||||||||
Originated in 2021 | 9,235 | 500 | 385 | 885 | 10,120 | 13,565 | 171 | 99 | 270 | 13,835 | ||||||||||||||||||||||
Originated in 2020 | 3,797 | 51 | 87 | 138 | 3,935 | 6,489 | 97 | 117 | 214 | 6,703 | ||||||||||||||||||||||
Originated in 2019 | 4,749 | 336 | 359 | 695 | 5,444 | 6,991 | 251 | 304 | 555 | 7,546 | ||||||||||||||||||||||
Originated prior to 2019 | 6,010 | 122 | 260 | 382 | 6,392 | 9,639 | 138 | 875 | 1,013 | 10,652 | ||||||||||||||||||||||
Revolving | 2,613 | 6 | 70 | 76 | 2,689 | 1,489 | — | 10 | 10 | 1,499 | ||||||||||||||||||||||
Revolving converted to term | 2 | — | — | — | 2 | — | — | — | — | — | ||||||||||||||||||||||
Total commercial real estate | 47,085 | 1,862 | 4,508 | 6,370 | 53,455 | 52,700 | 863 | 1,924 | 2,787 | 55,487 | ||||||||||||||||||||||
Residential mortgages(c) | ||||||||||||||||||||||||||||||||
Originated in 2023 | 9,734 | — | 5 | 5 | 9,739 | — | — | — | — | — | ||||||||||||||||||||||
Originated in 2022 | 29,146 | — | 17 | 17 | 29,163 | 28,452 | — | — | — | 28,452 | ||||||||||||||||||||||
Originated in 2021 | 36,365 | — | 16 | 16 | 36,381 | 39,527 | — | 7 | 7 | 39,534 | ||||||||||||||||||||||
Originated in 2020 | 14,773 | — | 9 | 9 | 14,782 | 16,556 | — | 8 | 8 | 16,564 | ||||||||||||||||||||||
Originated in 2019 | 5,876 | — | 16 | 16 | 5,892 | 7,222 | — | 18 | 18 | 7,240 | ||||||||||||||||||||||
Originated prior to 2019 | 19,326 | — | 246 | 246 | 19,572 | 23,658 | — | 397 | 397 | 24,055 | ||||||||||||||||||||||
Revolving | 1 | — | — | — | 1 | — | — | — | — | — | ||||||||||||||||||||||
Total residential mortgages | 115,221 | — | 309 | 309 | 115,530 | 115,415 | — | 430 | 430 | 115,845 | ||||||||||||||||||||||
Credit card(d) | 28,185 | — | 375 | 375 | 28,560 | 26,063 | — | 232 | 232 | 26,295 | ||||||||||||||||||||||
Other retail | ||||||||||||||||||||||||||||||||
Originated in 2023 | 5,184 | — | 4 | 4 | 5,188 | — | — | — | — | — | ||||||||||||||||||||||
Originated in 2022 | 5,607 | — | 12 | 12 | 5,619 | 9,563 | — | 6 | 6 | 9,569 | ||||||||||||||||||||||
Originated in 2021 | 10,398 | — | 15 | 15 | 10,413 | 15,352 | — | 12 | 12 | 15,364 | ||||||||||||||||||||||
Originated in 2020 | 4,541 | — | 9 | 9 | 4,550 | 7,828 | — | 11 | 11 | 7,839 | ||||||||||||||||||||||
Originated in 2019 | 1,793 | — | 7 | 7 | 1,800 | 3,418 | — | 13 | 13 | 3,431 | ||||||||||||||||||||||
Originated prior to 2019 | 2,215 | — | 13 | 13 | 2,228 | 3,689 | — | 31 | 31 | 3,720 | ||||||||||||||||||||||
Revolving | 13,720 | — | 104 | 104 | 13,824 | 14,029 | — | 98 | 98 | 14,127 | ||||||||||||||||||||||
Revolving converted to term | 735 | — | 52 | 52 | 787 | 800 | — | 46 | 46 | 846 | ||||||||||||||||||||||
Total other retail | 44,193 | — | 216 | 216 | 44,409 | 54,679 | — | 217 | 217 | 54,896 | ||||||||||||||||||||||
Total loans | $ | 361,687 | $ | 3,564 | $ | 8,584 | $ | 12,148 | $ | 373,835 | $ | 382,382 | $ | 1,794 | $ | 4,037 | $ | 5,831 | $ | 388,213 | ||||||||||||
Total outstanding commitments | $ | 762,869 | $ | 5,053 | $ | 10,470 | $ | 15,523 | $ | 778,392 | $ | 772,804 | $ | 2,825 | $ | 5,041 | $ | 7,866 | $ | 780,670 |
91 | ||
(Dollars in Millions) | Interest Rate Reduction | Payment Delay | Term Extension | Multiple Modifications(a) | Total Modifications | Percent of Class Total | ||||||||||||||
Commercial | $ | 46 | $ | — | $ | 286 | $ | 33 | $ | 365 | .3 | % | ||||||||
Commercial real estate | — | — | 645 | 72 | 717 | 1.3 | ||||||||||||||
Residential mortgages(b) | — | 234 | 26 | 20 | 280 | .2 | ||||||||||||||
Credit card | 349 | 1 | — | — | 350 | 1.2 | ||||||||||||||
Other retail | 7 | 21 | 144 | 3 | 175 | .4 | ||||||||||||||
Total loans, excluding loans purchased from GNMA mortgage pools | 402 | 256 | 1,101 | 128 | 1,887 | .5 | ||||||||||||||
Loans purchased from GNMA mortgage pools(b) | — | 1,263 | 255 | 321 | 1,839 | 1.6 | ||||||||||||||
Total loans | $ | 402 | $ | 1,519 | $ | 1,356 | $ | 449 | $ | 3,726 | 1.0 | % |
(Dollars in Millions) | Weighted-Average Interest Rate Reduction | Weighted-Average Months of Term Extension | ||||||
Commercial | 13.0 | % | 12 | |||||
Commercial real estate | 3.5 | 11 | ||||||
Residential mortgages | 1.2 | 98 | ||||||
Credit card | 15.4 | — | ||||||
Other retail | 7.9 | 4 | ||||||
Loans purchased from GNMA mortgage pools | .6 | 103 |
(Dollars in Millions) | Current | 30-89 Days Past Due | 90 Days or More Past Due | Total | ||||||||||
Commercial | $ | 255 | $ | 12 | $ | 98 | $ | 365 | ||||||
Commercial real estate | 524 | — | 193 | 717 | ||||||||||
Residential mortgages(a) | 1,385 | 24 | 16 | 1,425 | ||||||||||
Credit card | 251 | 67 | 32 | 350 | ||||||||||
Other retail | 133 | 21 | 8 | 162 | ||||||||||
Total loans | $ | 2,548 | $ | 124 | $ | 347 | $ | 3,019 |
92 U.S. Bancorp 2023 Annual Report | ||
(Dollars in Millions) | Interest Rate Reduction | Payment Delay | Term Extension | Multiple Modifications(a) | ||||||||||
Commercial | $ | 7 | $ | — | $ | — | $ | — | ||||||
Commercial real estate | — | — | 1 | — | ||||||||||
Residential mortgages | — | 8 | 2 | 1 | ||||||||||
Credit card | 35 | — | — | — | ||||||||||
Other retail | 1 | 1 | 11 | — | ||||||||||
Total loans, excluding loans purchased from GNMA mortgage pools | 43 | 9 | 14 | 1 | ||||||||||
Loans purchased from GNMA mortgage pools | — | 67 | 30 | 37 | ||||||||||
Total loans | $ | 43 | $ | 76 | $ | 44 | $ | 38 |
(Dollars in Millions) | Number of Loans | Pre-Modification Outstanding Loan Balance | Post-Modification Outstanding Loan Balance | ||||||||
2022 | |||||||||||
Commercial | 2,259 | $ | 148 | $ | 134 | ||||||
Commercial real estate | 75 | 50 | 47 | ||||||||
Residential mortgages | 1,699 | 475 | 476 | ||||||||
Credit card | 44,470 | 243 | 246 | ||||||||
Other retail | 2,514 | 89 | 85 | ||||||||
Total loans, excluding loans purchased from GNMA mortgage pools | 51,017 | 1,005 | 988 | ||||||||
Loans purchased from GNMA mortgage pools | 1,640 | 226 | 230 | ||||||||
Total loans | 52,657 | $ | 1,231 | $ | 1,218 | ||||||
2021 | |||||||||||
Commercial | 2,156 | $ | 140 | $ | 127 | ||||||
Commercial real estate | 112 | 193 | 179 | ||||||||
Residential mortgages | 977 | 329 | 328 | ||||||||
Credit card | 25,297 | 144 | 146 | ||||||||
Other retail | 2,576 | 74 | 67 | ||||||||
Total loans, excluding loans purchased from GNMA mortgage pools | 31,118 | 880 | 847 | ||||||||
Loans purchased from GNMA mortgage pools | 2,311 | 334 | 346 | ||||||||
Total loans | 33,429 | $ | 1,214 | $ | 1,193 |
93 | ||
(Dollars in Millions) | Number of Loans | Amount Defaulted | ||||||
2022 | ||||||||
Commercial | 767 | $ | 24 | |||||
Commercial real estate | 20 | 11 | ||||||
Residential mortgages | 235 | 28 | ||||||
Credit card | 7,904 | 42 | ||||||
Other retail | 307 | 5 | ||||||
Total loans, excluding loans purchased from GNMA mortgage pools | 9,233 | 110 | ||||||
Loans purchased from GNMA mortgage pools | 282 | 59 | ||||||
Total loans | 9,515 | $ | 169 | |||||
2021 | ||||||||
Commercial | 1,084 | $ | 32 | |||||
Commercial real estate | 16 | 7 | ||||||
Residential mortgages | 81 | 9 | ||||||
Credit card | 7,700 | 43 | ||||||
Other retail | 714 | 11 | ||||||
Total loans, excluding loans purchased from GNMA mortgage pools | 9,595 | 102 | ||||||
Loans purchased from GNMA mortgage pools | 176 | 26 | ||||||
Total loans | 9,771 | $ | 128 |
94 U.S. Bancorp 2023 Annual Report | ||
NOTE 7 | Leases |
(Dollars in Millions) | 2023 | 2022 | |||||||||
Lease receivables | $ | 7,239 | $ | 8,731 | |||||||
Unguaranteed residual values accruing to the lessor’s benefit | 1,082 | 1,323 | |||||||||
Total net investment in sales-type and direct financing leases | $ | 8,321 | $ | 10,054 |
(Dollars in Millions) | Sales-type and Direct Financing Leases | Operating Leases | ||||||
2024 | $ | 3,069 | $ | 138 | ||||
2025 | 2,182 | 110 | ||||||
2026 | 1,333 | 66 | ||||||
2027 | 690 | 42 | ||||||
2028 | 260 | 27 | ||||||
Thereafter | 369 | 57 | ||||||
Total lease payments | 7,903 | $ | 440 | |||||
Amounts representing interest | (664) | |||||||
Lease receivables | $ | 7,239 |
(Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Cash paid for amounts included in the measurement of lease liabilities | |||||||||||
Operating cash flows from operating leases | $ | 409 | $ | 294 | $ | 288 | |||||
Operating cash flows from finance leases | 7 | 4 | 5 | ||||||||
Financing cash flows from finance leases | 49 | 14 | 12 | ||||||||
Right of use assets obtained in exchange for new operating lease liabilities | 230 | 239 | 164 | ||||||||
Right of use assets obtained in exchange for new finance lease liabilities | 25 | 91 | 75 |
95 | ||
2023 | 2022 | |||||||
Weighted-average remaining lease term of operating leases (in years) | 6.4 | 6.8 | ||||||
Weighted-average remaining lease term of finance leases (in years) | 8.3 | 8.5 | ||||||
Weighted-average discount rate of operating leases | 3.7 | % | 3.3 | % | ||||
Weighted-average discount rate of finance leases | 7.7 | % | 7.9 | % |
(Dollars in Millions) | Operating Leases | Finance Leases | ||||||
2024 | $ | 377 | $ | 41 | ||||
2025 | 295 | 38 | ||||||
2026 | 245 | 36 | ||||||
2027 | 196 | 22 | ||||||
2028 | 144 | 8 | ||||||
Thereafter | 360 | 23 | ||||||
Total lease payments | 1,617 | 168 | ||||||
Amounts representing interest | (211) | (18) | ||||||
Lease liabilities | $ | 1,406 | $ | 150 |
NOTE 8 | Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities | |||||||
96 U.S. Bancorp 2023 Annual Report | ||
At December 31 (Dollars in Millions) | 2023 | 2022 | ||||||
Investment carrying amount | $ | 6,659 | $ | 5,452 | ||||
Unfunded capital and other commitments | 3,619 | 2,416 | ||||||
Maximum exposure to loss | 9,002 | 9,761 |
97 | ||
NOTE 9 | Premises and Equipment |
(Dollars in Millions) | 2023 | 2022 | ||||||
Land | $ | 515 | $ | 535 | ||||
Buildings and improvements | 3,239 | 3,296 | ||||||
Furniture, fixtures and equipment | 3,013 | 3,485 | ||||||
Right of use assets on operating leases | 1,149 | 1,296 | ||||||
Right of use assets on finance leases | 275 | 269 | ||||||
Construction in progress | 68 | 46 | ||||||
8,259 | 8,927 | |||||||
Less accumulated depreciation and amortization | (4,636) | (5,069) | ||||||
Total | $ | 3,623 | $ | 3,858 |
NOTE 10 | Mortgage Servicing Rights |
(Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Balance at beginning of period | $ | 3,755 | $ | 2,953 | $ | 2,210 | |||||
Rights purchased | 5 | 156 | 42 | ||||||||
Rights capitalized | 373 | 590 | 1,136 | ||||||||
Rights sold(a) | (440) | (255) | 2 | ||||||||
Changes in fair value of MSRs | |||||||||||
Due to fluctuations in market interest rates(b) | 66 | 804 | 272 | ||||||||
Due to revised assumptions or models(c) | 12 | (29) | (196) | ||||||||
(394) | (464) | (513) | |||||||||
Balance at end of period | $ | 3,377 | $ | 3,755 | $ | 2,953 |
2023 | 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 | $ | (370) | $ | (173) | $ | (84) | $ | 77 | $ | 147 | $ | 268 | $ | (334) | $ | (153) | $ | (73) | $ | 66 | $ | 125 | $ | 224 | ||||||||||||||
Derivative instrument hedges | 381 | 178 | 86 | (79) | (152) | (289) | 337 | 153 | 73 | (67) | (127) | (236) | ||||||||||||||||||||||||||
Net sensitivity | $ | 11 | $ | 5 | $ | 2 | $ | (2) | $ | (5) | $ | (21) | $ | 3 | $ | — | $ | — | $ | (1) | $ | (2) | $ | (12) |
98 U.S. Bancorp 2023 Annual Report | ||
2023 | 2022 | |||||||||||||||||||||||||
(Dollars in Millions) | HFA | Government | Conventional(d) | Total | HFA | Government | Conventional(d) | Total | ||||||||||||||||||
Servicing portfolio(a) | $ | 48,286 | $ | 25,996 | $ | 151,056 | $ | 225,338 | $ | 44,071 | $ | 23,141 | $ | 172,541 | $ | 239,753 | ||||||||||
Fair value | $ | 769 | $ | 507 | $ | 2,101 | $ | 3,377 | $ | 725 | $ | 454 | $ | 2,576 | $ | 3,755 | ||||||||||
Value (bps)(b) | 159 | 195 | 139 | 150 | 165 | 196 | 149 | 157 | ||||||||||||||||||
Weighted-average servicing fees (bps) | 36 | 44 | 26 | 30 | 36 | 42 | 27 | 30 | ||||||||||||||||||
Multiple (value/servicing fees) | 4.45 | 4.41 | 5.41 | 5.00 | 4.56 | 4.69 | 5.52 | 5.20 | ||||||||||||||||||
Weighted-average note rate | 4.56 | % | 4.23 | % | 3.81 | % | 4.02 | % | 4.16 | % | 3.81 | % | 3.52 | % | 3.67 | % | ||||||||||
Weighted-average age (in years) | 4.3 | 5.5 | 4.3 | 4.4 | 4.0 | 5.7 | 3.7 | 3.9 | ||||||||||||||||||
Weighted-average expected prepayment (constant prepayment rate) | 10.5 | % | 11.1 | % | 9.1 | % | 9.6 | % | 7.4 | % | 8.5 | % | 7.8 | % | 7.8 | % | ||||||||||
Weighted-average expected life (in years) | 7.2 | 6.5 | 7.0 | 7.0 | 8.8 | 7.6 | 7.5 | 7.7 | ||||||||||||||||||
Weighted-average option adjusted spread(c) | 5.4 | % | 5.9 | % | 4.6 | % | 4.9 | % | 7.6 | % | 6.9 | % | 5.1 | % | 5.8 | % |
NOTE 11 | Intangible Assets |
At December 31 (Dollars in Millions) | 2023 | 2022 | ||||||
Goodwill | $ | 12,489 | $ | 12,373 | ||||
Merchant processing contracts | 124 | 155 | ||||||
Core deposit benefits | 2,134 | 2,706 | ||||||
Mortgage servicing rights | 3,377 | 3,755 | ||||||
Trust relationships | 41 | 50 | ||||||
Other identified intangibles | 408 | 489 | ||||||
Total | $ | 18,573 | $ | 19,528 |
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Merchant processing contracts | $ | 31 | $ | 38 | $ | 45 | |||||
Core deposit benefits | 481 | 53 | 15 | ||||||||
Trust relationships | 10 | 12 | 10 | ||||||||
Other identified intangibles | 114 | 112 | 89 | ||||||||
Total | $ | 636 | $ | 215 | $ | 159 |
99 | ||
(Dollars in Millions) | Wealth, Corporate, Commercial and Institutional Banking | Consumer and Business Banking | Payment Services | Treasury and Corporate Support | Consolidated Company | ||||||||||||
Balance at December 31, 2020 | $ | 3,266 | $ | 3,475 | $ | 3,177 | $ | — | $ | 9,918 | |||||||
Goodwill acquired | 144 | 35 | 192 | — | 371 | ||||||||||||
Foreign exchange translation and other | 263 | (265) | (25) | — | (27) | ||||||||||||
Balance at December 31, 2021 | $ | 3,673 | $ | 3,245 | $ | 3,344 | $ | — | $ | 10,262 | |||||||
Goodwill acquired | 918 | 1,220 | 11 | — | 2,149 | ||||||||||||
Foreign exchange translation and other | (2) | — | (36) | — | (38) | ||||||||||||
Balance at December 31, 2022 | $ | 4,589 | $ | 4,465 | $ | 3,319 | $ | — | $ | 12,373 | |||||||
Goodwill acquired | 235 | (139) | — | — | 96 | ||||||||||||
Foreign exchange translation and other | 1 | — | 19 | — | 20 | ||||||||||||
Balance at December 31, 2023 | $ | 4,825 | $ | 4,326 | $ | 3,338 | $ | — | $ | 12,489 |
NOTE 12 | Deposits |
(Dollars in Millions) | 2023 | 2022 | ||||||
Noninterest-bearing deposits | $ | 89,989 | $ | 137,743 | ||||
Interest-bearing deposits | ||||||||
Interest checking | 127,453 | 134,491 | ||||||
Money market savings | 199,378 | 148,014 | ||||||
Savings accounts | 43,219 | 71,782 | ||||||
Time deposits | 52,273 | 32,946 | ||||||
Total interest-bearing deposits | 422,323 | 387,233 | ||||||
Total deposits | $ | 512,312 | $ | 524,976 |
(Dollars in Millions) | |||||
2024 | $ | 44,570 | |||
2025 | 6,448 | ||||
2026 | 798 | ||||
2027 | 252 | ||||
2028 | 197 | ||||
Thereafter | 8 | ||||
Total | $ | 52,273 |
100 U.S. Bancorp 2023 Annual Report | ||
NOTE 13 | Short-Term Borrowings |
(Dollars in Millions) | 2023 | 2022 | |||||||||
Federal funds purchased | $ | 248 | $ | 226 | |||||||
Securities sold under agreements to repurchase | 3,576 | 1,431 | |||||||||
Commercial paper | 7,773 | 8,145 | |||||||||
Other short-term borrowings | 3,682 | 21,414 | (a) | ||||||||
Total | $ | 15,279 | $ | 31,216 |
NOTE 14 | Long-Term Debt |
(Dollars in Millions) | Rate Type | Rate(a) | Maturity Date | 2023 | 2022 | ||||||||||||
U.S. Bancorp (Parent Company) | |||||||||||||||||
Subordinated notes | Fixed | 3.600 | % | 2024 | $ | 1,000 | $ | 1,000 | |||||||||
Fixed | 7.500 | % | 2026 | 199 | 199 | ||||||||||||
Fixed | 3.100 | % | 2026 | 1,000 | 1,000 | ||||||||||||
Fixed | 3.000 | % | 2029 | 1,000 | 1,000 | ||||||||||||
Fixed | 4.967 | % | 2033 | 1,300 | 1,300 | ||||||||||||
Fixed | 2.491 | % | 2036 | 1,300 | 1,300 | ||||||||||||
Medium-term notes | Fixed | .850% - 6.787% | 2024 - 2034 | 26,618 | 18,468 | ||||||||||||
Other(b) | 1,915 | 2,716 | |||||||||||||||
Subtotal | 34,332 | 26,983 | |||||||||||||||
Subsidiaries | |||||||||||||||||
Federal Home Loan Bank advances | Fixed | 1.860% - 8.250% | 2025 - 2026 | 9,051 | 2,051 | ||||||||||||
Floating | 6.080% - 6.100% | 2025 - 2026 | 3,000 | 3,000 | |||||||||||||
Bank notes | Fixed | 2.050% - 5.550% | 2025 - 2032 | 2,289 | 4,800 | ||||||||||||
Floating | —% - 5.398% | 2046 - 2062 | 1,324 | 1,352 | |||||||||||||
Other(c) | 1,484 | 1,643 | |||||||||||||||
Subtotal | 17,148 | 12,846 | |||||||||||||||
Total | $ | 51,480 | $ | 39,829 |
101 | ||
NOTE 15 | Shareholders' Equity |
2023 | 2022 | |||||||||||||||||||||||||
(Dollars in Millions) | Shares Issued and Outstanding | Liquidation Preference | Discount | Carrying Amount | Shares Issued and Outstanding | Liquidation Preference | Discount | Carrying Amount | ||||||||||||||||||
Series A | 12,510 | $ | 1,251 | $ | 145 | $ | 1,106 | 12,510 | $ | 1,251 | $ | 145 | $ | 1,106 | ||||||||||||
Series B | 40,000 | 1,000 | — | 1,000 | 40,000 | 1,000 | — | 1,000 | ||||||||||||||||||
Series J | 40,000 | 1,000 | 7 | 993 | 40,000 | 1,000 | 7 | 993 | ||||||||||||||||||
Series K | 23,000 | 575 | 10 | 565 | 23,000 | 575 | 10 | 565 | ||||||||||||||||||
Series L | 20,000 | 500 | 14 | 486 | 20,000 | 500 | 14 | 486 | ||||||||||||||||||
Series M | 30,000 | 750 | 21 | 729 | 30,000 | 750 | 21 | 729 | ||||||||||||||||||
Series N | 60,000 | 1,500 | 8 | 1,492 | 60,000 | 1,500 | 8 | 1,492 | ||||||||||||||||||
Series O | 18,000 | 450 | 13 | 437 | 18,000 | 450 | 13 | 437 | ||||||||||||||||||
Total preferred stock(a) | 243,510 | $ | 7,026 | $ | 218 | $ | 6,808 | 243,510 | $ | 7,026 | $ | 218 | $ | 6,808 |
102 U.S. Bancorp 2023 Annual Report | ||
(Dollars and Shares in Millions) | Shares | Value | ||||||
2023 | 1 | $ | 62 | |||||
2022 | 1 | 69 | ||||||
2021 | 28 | 1,556 |
103 | ||
(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 | $ | (6,378) | $ | (3,933) | $ | (114) | $ | (939) | $ | (43) | $ | (11,407) | ||||||||
Changes in unrealized gains (losses) | 1,500 | — | (252) | (262) | — | 986 | ||||||||||||||
Foreign currency translation adjustment(a) | — | — | — | — | 21 | 21 | ||||||||||||||
Reclassification to earnings of realized (gains) losses | 145 | 530 | 80 | (7) | — | 748 | ||||||||||||||
Applicable income taxes | (418) | (134) | 44 | 70 | (6) | (444) | ||||||||||||||
Balance at end of period | $ | (5,151) | $ | (3,537) | $ | (242) | $ | (1,138) | $ | (28) | $ | (10,096) | ||||||||
2022 | ||||||||||||||||||||
Balance at beginning of period | $ | 540 | $ | (935) | $ | (85) | $ | (1,426) | $ | (37) | $ | (1,943) | ||||||||
Changes in unrealized gains (losses) | (13,656) | — | (75) | 526 | — | (13,205) | ||||||||||||||
Transfer of securities from available-for-sale to held-to-maturity | 4,413 | (4,413) | — | — | — | — | ||||||||||||||
Foreign currency translation adjustment(a) | — | — | — | — | (10) | (10) | ||||||||||||||
Reclassification to earnings of realized (gains) losses | (20) | 400 | 36 | 128 | — | 544 | ||||||||||||||
Applicable income taxes | 2,345 | 1,015 | 10 | (167) | 4 | 3,207 | ||||||||||||||
Balance at end of period | $ | (6,378) | $ | (3,933) | $ | (114) | $ | (939) | $ | (43) | $ | (11,407) | ||||||||
2021 | ||||||||||||||||||||
Balance at beginning of period | $ | 2,417 | $ | — | $ | (189) | $ | (1,842) | $ | (64) | $ | 322 | ||||||||
Changes in unrealized gains and losses | (3,698) | — | 125 | 400 | — | (3,173) | ||||||||||||||
Transfer of securities from available-for-sale to held-to-maturity | 1,289 | (1,289) | — | — | — | — | ||||||||||||||
Foreign currency translation adjustment(a) | — | — | — | — | 35 | 35 | ||||||||||||||
Reclassification to earnings of realized (gains) losses | (103) | 36 | 14 | 157 | — | 104 | ||||||||||||||
Applicable income taxes | 635 | 318 | (35) | (141) | (8) | 769 | ||||||||||||||
Balance at end of period | $ | 540 | $ | (935) | $ | (85) | $ | (1,426) | $ | (37) | $ | (1,943) |
104 U.S. Bancorp 2023 Annual Report | ||
Impact to Net Income | Affected Line Item in the Consolidated Statement of Income | |||||||||||||
(Dollars in Millions) | 2023 | 2022 | 2021 | |||||||||||
Unrealized gains (losses) on investment securities available-for-sale | ||||||||||||||
Realized gains (losses) on sale of investment securities | $ | (145) | $ | 20 | $ | 103 | Securities gains (losses), net | |||||||
37 | (5) | (26) | Applicable income taxes | |||||||||||
(108) | 15 | 77 | Net-of-tax | |||||||||||
Unrealized gains (losses) on investment securities transferred from available-for-sale to held-to-maturity | ||||||||||||||
Amortization of unrealized gains (losses) | (530) | (400) | (36) | Interest income | ||||||||||
134 | 119 | 9 | Applicable income taxes | |||||||||||
(396) | (281) | (27) | Net-of-tax | |||||||||||
Unrealized gains (losses) on derivative hedges | ||||||||||||||
Realized gains (losses) on derivative hedges | (80) | (36) | (14) | Net interest income | ||||||||||
21 | 9 | 4 | Applicable income taxes | |||||||||||
(59) | (27) | (10) | Net-of-tax | |||||||||||
Unrealized gains (losses) on retirement plans | ||||||||||||||
Actuarial gains (losses) and prior service cost (credit) amortization | 7 | (128) | (157) | Other noninterest expense | ||||||||||
(2) | 33 | 40 | Applicable income taxes | |||||||||||
5 | (95) | (117) | Net-of-tax | |||||||||||
Total impact to net income | $ | (558) | $ | (388) | $ | (77) |
105 | ||
U.S. Bancorp | U.S. Bank National Association | MUFG Union Bank National Association(a) | |||||||||||||||
(Dollars in Millions) | 2023 | 2022 | 2023 | 2022 | 2022 | ||||||||||||
Basel III Standardized Approach: | |||||||||||||||||
Common equity tier 1 capital | $ | 44,947 | $ | 41,560 | $ | 58,194 | $ | 46,681 | $ | 10,888 | |||||||
Tier 1 capital | 52,199 | 48,813 | 58,638 | 47,127 | 10,888 | ||||||||||||
Total risk-based capital | 61,921 | 59,015 | 68,817 | 56,736 | 11,565 | ||||||||||||
Risk-weighted assets | 453,390 | 496,500 | 445,829 | 436,764 | 58,641 | ||||||||||||
Common equity tier 1 capital as a percent of risk-weighted assets | 9.9 | % | 8.4 | % | 13.1 | % | 10.7 | % | 18.6 | % | |||||||
Tier 1 capital as a percent of risk-weighted assets | 11.5 | 9.8 | 13.2 | 10.8 | 18.6 | ||||||||||||
Total risk-based capital as a percent of risk-weighted assets | 13.7 | 11.9 | 15.4 | 13.0 | 19.7 | ||||||||||||
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) | 8.1 | 7.9 | 9.2 | 8.1 | 10.9 | ||||||||||||
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure ratio) | 6.6 | 6.4 | 7.5 | 6.5 | 10.1 |
Minimum(b) | Well- Capitalized | |||||||
Bank Regulatory Capital Requirements | ||||||||
Common equity tier 1 capital as a percent of risk-weighted assets | 7.0 | % | 6.5 | % | ||||
Tier 1 capital as a percent of risk-weighted assets | 8.5 | 8.0 | ||||||
Total risk-based capital as a percent of risk-weighted assets | 10.5 | 10.0 | ||||||
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) | 4.0 | 5.0 | ||||||
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure ratio)(c) | 3.0 | 3.0 |
106 U.S. Bancorp 2023 Annual Report | ||
NOTE 16 | Earnings Per Share |
Year Ended December 31 (Dollars and Shares in Millions, Except Per Share Data) | 2023 | 2022 | 2021 | |||||||||||
Net income attributable to U.S. Bancorp | $ | 5,429 | $ | 5,825 | $ | 7,963 | ||||||||
Preferred dividends | (350) | (296) | (303) | |||||||||||
Impact of preferred stock call and redemption | — | — | (17) | (a) | ||||||||||
Earnings allocated to participating stock awards | (28) | (28) | (38) | |||||||||||
Net income applicable to U.S. Bancorp common shareholders | $ | 5,051 | $ | 5,501 | $ | 7,605 | ||||||||
Average common shares outstanding | 1,543 | 1,489 | 1,489 | |||||||||||
Net effect of the exercise and assumed purchase of stock awards | — | 1 | 1 | |||||||||||
Average diluted common shares outstanding | 1,543 | 1,490 | 1,490 | |||||||||||
Earnings per common share | $ | 3.27 | $ | 3.69 | $ | 5.11 | ||||||||
Diluted earnings per common share | $ | 3.27 | $ | 3.69 | $ | 5.10 |
NOTE 17 | Employee Benefits |
107 | ||
(Dollars in Millions) | 2023 | 2022 | ||||||
Change In Projected Benefit Obligation(a) | ||||||||
Benefit obligation at beginning of measurement period | $ | 6,617 | $ | 8,030 | ||||
Service cost | 223 | 280 | ||||||
Interest cost | 370 | 248 | ||||||
Plan amendments | (23) | 2 | ||||||
Actuarial (gain) loss | 398 | (2,250) | ||||||
Lump sum settlements | (94) | (76) | ||||||
Benefit payments | (213) | (195) | ||||||
Acquisitions | — | 578 | ||||||
Benefit obligation at end of measurement period(b) | $ | 7,278 | $ | 6,617 | ||||
Change In Fair Value Of Plan Assets | ||||||||
Fair value at beginning of measurement period | $ | 7,375 | $ | 8,113 | ||||
Actual return on plan assets | 658 | (1,245) | ||||||
Employer contributions | 28 | 28 | ||||||
Lump sum settlements | (94) | (76) | ||||||
Benefit payments | (213) | (195) | ||||||
Acquisitions(c) | 25 | 750 | ||||||
Fair value at end of measurement period | $ | 7,779 | $ | 7,375 | ||||
Funded Status | $ | 501 | $ | 758 | ||||
Components Of The Consolidated Balance Sheet | ||||||||
Noncurrent benefit asset | $ | 1,072 | $ | 1,286 | ||||
Current benefit liability | (26) | (25) | ||||||
Noncurrent benefit liability | (545) | (503) | ||||||
Recognized amount | $ | 501 | $ | 758 | ||||
Accumulated Other Comprehensive Income (Loss), Pretax | ||||||||
Net actuarial loss | $ | (1,607) | $ | (1,326) | ||||
Net prior service credit | 34 | 12 | ||||||
Recognized amount | $ | (1,573) | $ | (1,314) |
(Dollars in Millions) | 2023 | 2022 | ||||||
Plans with Projected Benefit Obligations in Excess of Plan Assets | ||||||||
Projected benefit obligation | $ | 571 | $ | 528 | ||||
Fair value of plan assets | — | — | ||||||
Plans with Accumulated Benefit Obligations in Excess of Plan Assets | ||||||||
Accumulated benefit obligation | $ | 530 | $ | 487 | ||||
Fair value of plan assets | — | — |
108 U.S. Bancorp 2023 Annual Report | ||
(Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Components Of Net Periodic Pension Cost | |||||||||||
Service cost | $ | 223 | $ | 280 | $ | 265 | |||||
Interest cost | 370 | 248 | 219 | ||||||||
Expected return on plan assets | (546) | (481) | (450) | ||||||||
Prior service credit amortization | (1) | (2) | (2) | ||||||||
Actuarial loss amortization | 5 | 140 | 169 | ||||||||
Net periodic pension cost | $ | 51 | $ | 185 | $ | 201 | |||||
Other Changes In Plan Assets And Benefit Obligations Recognized In Other Comprehensive Income (Loss) | |||||||||||
Net actuarial (loss) gain arising during the year | $ | (286) | $ | 523 | $ | 398 | |||||
Net actuarial loss amortized during the year | 5 | 140 | 169 | ||||||||
Net prior service credit (cost) arising during the year | 23 | (2) | — | ||||||||
Net prior service credit amortized during the year | (1) | (2) | (2) | ||||||||
Total recognized in other comprehensive income (loss) | $ | (259) | $ | 659 | $ | 565 | |||||
Total recognized in net periodic pension cost and other comprehensive income (loss) | $ | (310) | $ | 474 | $ | 364 |
2023 | 2022 | |||||||
Discount rate | 5.12 | % | 5.55 | % | ||||
Cash balance interest crediting rate | 3.04 | 3.36 | ||||||
Rate of compensation increase(a) | 3.72 | 4.13 |
2023 | 2022 | 2021 | |||||||||
Discount rate | 5.55 | % | 3.00 | % | 2.75 | % | |||||
Cash balance interest crediting rate | 3.36 | 3.00 | 3.00 | ||||||||
Expected return on plan assets(a) | 6.75 | 6.50 | 6.50 | ||||||||
Rate of compensation increase(b) | 4.13 | 3.56 | 3.56 |
109 | ||
2023 | 2022 | |||||||||||||||||||||||||
(Dollars in Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Cash and cash equivalents | $ | 68 | $ | — | $ | — | $ | 68 | $ | 202 | $ | — | $ | — | $ | 202 | ||||||||||
Debt securities | — | — | — | — | 961 | 855 | — | 1,816 | ||||||||||||||||||
Mutual funds | ||||||||||||||||||||||||||
Debt securities | — | — | — | — | — | 382 | — | 382 | ||||||||||||||||||
Emerging markets equity securities | — | — | — | — | — | 156 | — | 156 | ||||||||||||||||||
Other | — | — | — | — | — | — | 6 | 6 | ||||||||||||||||||
$ | 68 | $ | — | $ | — | 68 | $ | 1,163 | $ | 1,393 | $ | 6 | 2,562 | |||||||||||||
Plan investment assets not classified in fair value hierarchy(a): | ||||||||||||||||||||||||||
Collective investment funds | ||||||||||||||||||||||||||
Domestic equity securities | 1,546 | 1,494 | ||||||||||||||||||||||||
Domestic mid-small cap equity securities | 406 | 313 | ||||||||||||||||||||||||
International equity securities | 981 | 620 | ||||||||||||||||||||||||
Domestic real estate securities | 142 | 144 | ||||||||||||||||||||||||
Fixed income | 2,295 | — | ||||||||||||||||||||||||
Real estate funds(b) | 746 | 763 | ||||||||||||||||||||||||
Hedge funds(c) | 412 | 451 | ||||||||||||||||||||||||
Private equity funds(d) | 1,183 | 1,028 | ||||||||||||||||||||||||
Total plan investment assets at fair value | $ | 7,779 | $ | 7,375 |
110 U.S. Bancorp 2023 Annual Report | ||
2023 | 2022 | 2021 | |||||||||
(Dollars in Millions) | Other | Other | Other | ||||||||
Balance at beginning of period | $ | 6 | $ | 4 | $ | 6 | |||||
Unrealized gains (losses) relating to assets still held at end of year | — | 2 | (2) | ||||||||
Purchases, sales, and settlements, net | (6) | — | — | ||||||||
Balance at end of period | $ | — | $ | 6 | $ | 4 |
(Dollars in Millions) | |||||
2024 | $ | 332 | |||
2025 | 383 | ||||
2026 | 391 | ||||
2027 | 416 | ||||
2028 | 430 | ||||
2029-2033 | 2,439 |
111 | ||
NOTE 18 | Stock-Based Compensation |
Year Ended December 31 | Stock Options/Shares | Weighted- Average Exercise Price | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value (in millions) | ||||||||||
2023 | ||||||||||||||
Number outstanding at beginning of period | 3,253,090 | $ | 44.42 | |||||||||||
Exercised | (399,329) | 38.15 | ||||||||||||
Cancelled(a) | (15,476) | 47.88 | ||||||||||||
Number outstanding at end of period(b) | 2,838,285 | $ | 45.28 | 2.0 | $ | — | ||||||||
Exercisable at end of period | 2,838,285 | $ | 45.28 | 2.0 | $ | — | ||||||||
2022 | ||||||||||||||
Number outstanding at beginning of period | 3,890,131 | $ | 42.58 | |||||||||||
Exercised | (624,729) | 32.87 | ||||||||||||
Cancelled(a) | (12,312) | 50.97 | ||||||||||||
Number outstanding at end of period(b) | 3,253,090 | $ | 44.42 | 2.7 | $ | — | ||||||||
Exercisable at end of period | 3,253,090 | $ | 44.42 | 2.7 | $ | — | ||||||||
2021 | ||||||||||||||
Number outstanding at beginning of period | 5,180,391 | $ | 40.38 | |||||||||||
Exercised | (1,281,646) | 33.66 | ||||||||||||
Cancelled(a) | (8,614) | 48.20 | ||||||||||||
Number outstanding at end of period(b) | 3,890,131 | $ | 42.58 | 3.3 | $ | 53 | ||||||||
Exercisable at end of period | 3,890,131 | $ | 42.58 | 3.3 | $ | 53 |
112 U.S. Bancorp 2023 Annual Report | ||
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Fair value of options vested | $ | — | $ | — | $ | 3 | |||||
Intrinsic value of options exercised | 2 | 15 | 27 | ||||||||
Cash received from options exercised | 15 | 21 | 43 | ||||||||
Tax benefit realized from options exercised | 1 | 4 | 7 |
Outstanding Options | Exercisable Options | ||||||||||||||||
Range of Exercise Prices | Shares | Weighted- Average Remaining Contractual Life (Years) | Weighted- Average Exercise Price | Shares | Weighted- Average Exercise Price | ||||||||||||
$35.01—$40.00 | 1,008,046 | 2.1 | $ | 39.49 | 1,008,046 | $ | 39.49 | ||||||||||
$40.01—$45.00 | 988,880 | 0.8 | 42.95 | 988,880 | 42.95 | ||||||||||||
$45.01—$50.00 | — | — | — | — | — | ||||||||||||
$50.01—$55.01 | 841,359 | 3.1 | 54.96 | 841,359 | 54.96 | ||||||||||||
2,838,285 | 2.0 | $ | 45.28 | 2,838,285 | $ | 45.28 |
2023 | 2022 | 2021 | ||||||||||||||||||
Year Ended December 31 | Shares | Weighted-Average Grant-Date Fair Value | Shares | Weighted-Average Grant-Date Fair Value | Shares | Weighted-Average Grant-Date Fair Value | ||||||||||||||
Outstanding at beginning of period | 6,880,826 | $ | 52.59 | 6,812,753 | $ | 51.04 | 6,343,313 | $ | 51.38 | |||||||||||
Granted | 5,565,634 | 45.87 | 4,109,793 | 55.62 | 4,512,995 | 52.54 | ||||||||||||||
Vested | (3,872,874) | 52.05 | (3,690,666) | 52.88 | (3,793,978) | 53.27 | ||||||||||||||
Cancelled | (257,015) | 50.00 | (351,054) | 54.95 | (249,577) | 52.83 | ||||||||||||||
Outstanding at end of period | 8,316,571 | $ | 48.42 | 6,880,826 | $ | 52.59 | 6,812,753 | $ | 51.04 |
113 | ||
NOTE 19 | Income Taxes |
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Federal | |||||||||||
Current | $ | 1,434 | $ | 1,366 | $ | 1,203 | |||||
Deferred | (326) | (108) | 469 | ||||||||
Federal income tax | 1,108 | 1,258 | 1,672 | ||||||||
State | |||||||||||
Current | 482 | 401 | 398 | ||||||||
Deferred | (183) | (196) | 111 | ||||||||
State income tax | 299 | 205 | 509 | ||||||||
Total income tax provision | $ | 1,407 | $ | 1,463 | $ | 2,181 |
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Tax at statutory rate | $ | 1,442 | $ | 1,533 | $ | 2,135 | |||||
State income tax, at statutory rates, net of federal tax benefit | 322 | 305 | 439 | ||||||||
Tax effect of | |||||||||||
Tax credits and benefits, net of related expenses | (272) | (273) | (331) | ||||||||
Tax-exempt income | (142) | (121) | (114) | ||||||||
Revaluation of tax related assets and liabilities(a) | 15 | (79) | — | ||||||||
Nondeductible legal and regulatory expenses | 76 | 37 | 24 | ||||||||
Other items | (34) | 61 | 28 | ||||||||
Applicable income taxes | $ | 1,407 | $ | 1,463 | $ | 2,181 |
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Balance at beginning of period | $ | 513 | $ | 487 | $ | 474 | |||||
Additions for tax positions taken in prior years | 141 | 35 | 14 | ||||||||
Additions for tax positions taken in the current year | 3 | 3 | 7 | ||||||||
Exam resolutions | (302) | (8) | (1) | ||||||||
Statute expirations | (5) | (4) | (7) | ||||||||
Balance at end of period | $ | 350 | $ | 513 | $ | 487 |
114 U.S. Bancorp 2023 Annual Report | ||
At December 31 (Dollars in Millions) | 2023 | 2022 | ||||||
Deferred Tax Assets | ||||||||
Securities available-for-sale and financial instruments | $ | 3,231 | $ | 3,992 | ||||
Federal, state and foreign net operating loss, credit carryforwards and other carryforwards | 2,836 | 2,677 | ||||||
Allowance for credit losses | 2,051 | 1,980 | ||||||
Loans | 1,013 | 1,287 | ||||||
Accrued expenses | 838 | 618 | ||||||
Obligation for operating leases | 348 | 368 | ||||||
Partnerships and other investment assets | 271 | 112 | ||||||
Stock compensation | 87 | 81 | ||||||
Other deferred tax assets, net | 370 | 501 | ||||||
Gross deferred tax assets | 11,045 | 11,616 | ||||||
Deferred Tax Liabilities | ||||||||
Leasing activities | (1,455) | (1,813) | ||||||
Goodwill and other intangible assets | (1,450) | (1,575) | ||||||
Mortgage servicing rights | (758) | (815) | ||||||
Right of use operating leases | (301) | (325) | ||||||
Pension and postretirement benefits | (115) | (172) | ||||||
Fixed assets | (44) | (125) | ||||||
Other deferred tax liabilities, net | (168) | (234) | ||||||
Gross deferred tax liabilities | (4,291) | (5,059) | ||||||
Valuation allowance | (364) | (263) | ||||||
Net Deferred Tax Asset | $ | 6,390 | $ | 6,294 |
115 | ||
NOTE 20 | Derivative Instruments |
116 U.S. Bancorp 2023 Annual Report | ||
2023 | 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 | $ | 12,100 | $ | — | $ | 16 | $ | 17,400 | $ | — | $ | 9 | ||||||||
Pay fixed/receive floating swaps | 24,139 | — | — | 5,542 | — | — | ||||||||||||||
Cash flow hedges | ||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||
Receive fixed/pay floating swaps | 18,400 | — | — | 14,300 | — | — | ||||||||||||||
Net investment hedges | ||||||||||||||||||||
Foreign exchange forward contracts | 854 | — | 10 | 778 | — | — | ||||||||||||||
Other economic hedges | ||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||
Futures and forwards | ||||||||||||||||||||
Buy | 5,006 | 29 | 5 | 3,546 | 10 | 18 | ||||||||||||||
Sell | 4,501 | 7 | 34 | 7,522 | 20 | 38 | ||||||||||||||
Options | ||||||||||||||||||||
Purchased | 6,085 | 237 | — | 11,434 | 346 | — | ||||||||||||||
Written | 3,696 | 14 | 75 | 7,849 | 7 | 148 | ||||||||||||||
Receive fixed/pay floating swaps | 7,029 | 9 | 3 | 9,215 | — | 3 | ||||||||||||||
Pay fixed/receive floating swaps | 3,801 | — | — | 9,616 | — | — | ||||||||||||||
Foreign exchange forward contracts | 734 | 2 | 5 | 962 | 2 | 6 | ||||||||||||||
Equity contracts | 227 | 2 | — | 361 | — | 10 | ||||||||||||||
Credit contracts | 2,620 | 1 | — | 330 | — | — | ||||||||||||||
Other (a) | 2,136 | 11 | 93 | 1,908 | 11 | 190 | ||||||||||||||
Total | $ | 91,328 | $ | 312 | $ | 241 | $ | 90,763 | $ | 396 | $ | 422 |
117 | ||
2023 | 2022 | |||||||||||||||||||
Notional Value | Fair Value | Notional Value | Fair Value | |||||||||||||||||
(Dollars in Millions) | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||
Interest rate contracts | ||||||||||||||||||||
Receive fixed/pay floating swaps | $ | 363,375 | $ | 791 | $ | 4,395 | $ | 301,690 | $ | 309 | $ | 5,689 | ||||||||
Pay fixed/receive floating swaps | 330,539 | 1,817 | 280 | 316,133 | 2,323 | 206 | ||||||||||||||
Other(a) | 82,209 | 17 | 51 | 40,261 | 3 | 16 | ||||||||||||||
Options | ||||||||||||||||||||
Purchased | 102,423 | 1,026 | 18 | 103,489 | 1,794 | 5 | ||||||||||||||
Written | 97,690 | 20 | 1,087 | 99,923 | 6 | 1,779 | ||||||||||||||
Futures | ||||||||||||||||||||
Buy | — | — | — | 3,623 | — | 4 | ||||||||||||||
Sell | — | — | — | 2,376 | 8 | — | ||||||||||||||
Foreign exchange rate contracts | ||||||||||||||||||||
Forwards, spots and swaps | 121,119 | 2,252 | 1,942 | 134,666 | 3,010 | 2,548 | ||||||||||||||
Options | ||||||||||||||||||||
Purchased | 1,532 | 28 | — | 954 | 22 | — | ||||||||||||||
Written | 1,532 | — | 28 | 954 | — | 22 | ||||||||||||||
Commodity contracts | ||||||||||||||||||||
Swaps | 2,498 | 116 | 110 | — | — | — | ||||||||||||||
Options | ||||||||||||||||||||
Purchased | 1,936 | 151 | — | — | — | — | ||||||||||||||
Written | 1,936 | — | 151 | — | — | — | ||||||||||||||
Credit contracts | 13,053 | 1 | 6 | 10,765 | 1 | 8 | ||||||||||||||
Total | $ | 1,119,842 | $ | 6,219 | $ | 8,068 | $ | 1,014,834 | $ | 7,476 | $ | 10,277 |
Gains (Losses) Recognized in Other Comprehensive Income (Loss) | Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings | |||||||||||||||||||
(Dollars in Millions) | 2023 | 2022 | 2021 | 2023 | 2022 | 2021 | ||||||||||||||
Asset and Liability Management Positions | ||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||
Interest rate contracts | $ | (187) | $ | (56) | $ | 94 | $ | (59) | $ | (27) | $ | (10) | ||||||||
Net investment hedges | ||||||||||||||||||||
Foreign exchange forward contracts | (11) | 42 | 19 | — | — | — | ||||||||||||||
Non-derivative debt instruments | (33) | 59 | 84 | — | — | — |
118 U.S. Bancorp 2023 Annual Report | ||
Interest Income | Interest Expense | |||||||||||||||||||
(Dollars in Millions) | 2023 | 2022 | 2021 | 2023 | 2022 | 2021 | ||||||||||||||
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 | $ | 30,007 | $ | 17,945 | $ | 13,487 | $ | 12,611 | $ | 3,217 | $ | 993 | ||||||||
Asset and Liability Management Positions | ||||||||||||||||||||
Fair value hedges | ||||||||||||||||||||
Interest rate contract derivatives | (430) | 138 | 17 | (458) | 482 | 232 | ||||||||||||||
Hedged items | 427 | (139) | (19) | 461 | (486) | (232) | ||||||||||||||
Cash flow hedges | ||||||||||||||||||||
Interest rate contract derivatives | (52) | — | — | 28 | — | 14 |
Carrying Amount of the Hedged Assets and Liabilities | Cumulative Hedging Adjustment (a) | |||||||||||||
(Dollars in Millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Line Item in the Consolidated Balance Sheet | ||||||||||||||
Available-for-sale investment securities(b) | $ | 11,795 | $ | 4,937 | $ | (448) | $ | (552) | ||||||
Long-term debt | 11,987 | 17,190 | (148) | (142) |
119 | ||
(Dollars in Millions) | Location of Gains (Losses) Recognized in Earnings | 2023 | 2022 | 2021 | ||||||||||
Asset and Liability Management Positions | ||||||||||||||
Other economic hedges | ||||||||||||||
Interest rate contracts | ||||||||||||||
Futures and forwards | $ | 71 | $ | 407 | $ | 511 | ||||||||
Purchased and written options | 89 | 1 | 527 | |||||||||||
Swaps | (19) | (1,010) | (197) | |||||||||||
Foreign exchange forward contracts | (7) | (1) | 1 | |||||||||||
Equity contracts | (8) | (8) | 7 | |||||||||||
Other | 1 | (181) | 5 | |||||||||||
Customer-Related Positions | ||||||||||||||
Interest rate contracts | ||||||||||||||
Swaps | 185 | 98 | 110 | |||||||||||
Purchased and written options | 45 | 20 | (5) | |||||||||||
Futures | (1) | 30 | 3 | |||||||||||
Foreign exchange rate contracts | ||||||||||||||
Forwards, spots and swaps | 195 | 100 | 93 | |||||||||||
Purchased and written options | 1 | 1 | 1 | |||||||||||
Commodity contracts | ||||||||||||||
Swaps | 6 | — | — | |||||||||||
Credit contracts | 1 | 20 | (7) |
120 U.S. Bancorp 2023 Annual Report | ||
NOTE 21 | Netting Arrangements for Certain Financial Instruments and Securities Financing Activities | |||||||
121 | ||
(Dollars in Millions) | Overnight and Continuous | Less Than 30 Days | 30-89 Days | Greater Than 90 Days | Total | ||||||||||||
December 31, 2023 | |||||||||||||||||
Repurchase agreements | |||||||||||||||||
U.S. Treasury and agencies | $ | 2,375 | $ | — | $ | — | $ | — | $ | 2,375 | |||||||
Residential agency mortgage-backed securities | 338 | — | — | — | 338 | ||||||||||||
Corporate debt securities | 821 | — | — | — | 821 | ||||||||||||
Asset-backed securities | — | 45 | — | — | 45 | ||||||||||||
Total repurchase agreements | 3,534 | 45 | — | — | 3,579 | ||||||||||||
Securities loaned | |||||||||||||||||
Corporate debt securities | 290 | — | — | — | 290 | ||||||||||||
Total securities loaned | 290 | — | — | — | 290 | ||||||||||||
Gross amount of recognized liabilities | $ | 3,824 | $ | 45 | $ | — | $ | — | $ | 3,869 | |||||||
December 31, 2022 | |||||||||||||||||
Repurchase agreements | |||||||||||||||||
U.S. Treasury and agencies | $ | 147 | $ | — | $ | — | $ | — | $ | 147 | |||||||
Residential agency mortgage-backed securities | 846 | — | — | — | 846 | ||||||||||||
Corporate debt securities | 439 | — | — | — | 439 | ||||||||||||
Total repurchase agreements | 1,432 | — | — | — | 1,432 | ||||||||||||
Securities loaned | |||||||||||||||||
Corporate debt securities | 120 | — | — | — | 120 | ||||||||||||
Total securities loaned | 120 | — | — | — | 120 | ||||||||||||
Gross amount of recognized liabilities | $ | 1,552 | $ | — | $ | — | $ | — | $ | 1,552 |
122 U.S. Bancorp 2023 Annual Report | ||
(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 | ||||||||||||||||
Financial Instruments(b) | Collateral Received(c) | Net Amount | ||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||
Derivative assets(d) | $ | 6,504 | $ | (3,666) | $ | 2,838 | $ | (141) | $ | (3) | $ | 2,694 | ||||||||
Reverse repurchase agreements | 2,513 | — | 2,513 | (568) | (1,941) | 4 | ||||||||||||||
Securities borrowed | 1,802 | — | 1,802 | (14) | (1,717) | 71 | ||||||||||||||
Total | $ | 10,819 | $ | (3,666) | $ | 7,153 | $ | (723) | $ | (3,661) | $ | 2,769 | ||||||||
December 31, 2022 | ||||||||||||||||||||
Derivative assets(d) | $ | 7,852 | $ | (5,427) | $ | 2,425 | $ | (231) | $ | (80) | $ | 2,114 | ||||||||
Reverse repurchase agreements | 107 | — | 107 | (102) | (5) | — | ||||||||||||||
Securities borrowed | 1,606 | — | 1,606 | — | (1,548) | 58 | ||||||||||||||
Total | $ | 9,565 | $ | (5,427) | $ | 4,138 | $ | (333) | $ | (1,633) | $ | 2,172 |
(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) | |||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||
Derivative liabilities(d) | $ | 8,217 | $ | (3,720) | $ | 4,497 | $ | (141) | $ | — | $ | 4,356 | ||||||||
Repurchase agreements | 3,579 | — | 3,579 | (568) | (3,008) | 3 | ||||||||||||||
Securities loaned | 290 | — | 290 | (14) | (270) | 6 | ||||||||||||||
Total | $ | 12,086 | $ | (3,720) | $ | 8,366 | $ | (723) | $ | (3,278) | $ | 4,365 | ||||||||
December 31, 2022 | ||||||||||||||||||||
Derivative liabilities(d) | $ | 10,506 | $ | (4,551) | $ | 5,955 | $ | (231) | $ | — | $ | 5,724 | ||||||||
Repurchase agreements | 1,432 | — | 1,432 | (102) | (1,325) | 5 | ||||||||||||||
Securities loaned | 120 | — | 120 | — | (118) | 2 | ||||||||||||||
Total | $ | 12,058 | $ | (4,551) | $ | 7,507 | $ | (333) | $ | (1,443) | $ | 5,731 |
123 | ||
NOTE 22 | Fair Values of Assets and Liabilities |
124 U.S. Bancorp 2023 Annual Report | ||
125 | ||
Minimum | Maximum | Weighted- Average(a) | |||||||||
Expected prepayment | 7 | % | 23 | % | 10 | % | |||||
Option adjusted spread | 4 | 11 | 5 |
Minimum | Maximum | Weighted- Average(a) | |||||||||
Expected loan close rate | 17 | % | 99 | % | 74 | % | |||||
Inherent MSR value (basis points per loan) | 48 | 177 | 97 |
126 U.S. Bancorp 2023 Annual Report | ||
(Dollars in Millions) | Level 1 | Level 2 | Level 3 | Netting | Total | ||||||||||||
December 31, 2023 | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
U.S. Treasury and agencies | $ | 14,787 | $ | 4,755 | $ | — | $ | — | $ | 19,542 | |||||||
Mortgage-backed securities | |||||||||||||||||
Residential agency | — | 26,078 | — | — | 26,078 | ||||||||||||
Commercial | |||||||||||||||||
Agency | — | 7,343 | — | — | 7,343 | ||||||||||||
Non-agency | — | 6 | — | — | 6 | ||||||||||||
Asset-backed securities | — | 6,724 | — | — | 6,724 | ||||||||||||
Obligations of state and political subdivisions | — | 9,989 | — | — | 9,989 | ||||||||||||
Other | — | 24 | — | — | 24 | ||||||||||||
Total available-for-sale | 14,787 | 54,919 | — | — | 69,706 | ||||||||||||
Mortgage loans held for sale | — | 2,011 | — | — | 2,011 | ||||||||||||
Mortgage servicing rights | — | — | 3,377 | — | 3,377 | ||||||||||||
Derivative assets | — | 5,078 | 1,453 | (3,666) | 2,865 | ||||||||||||
Other assets | 550 | 1,991 | — | — | 2,541 | ||||||||||||
Total | $ | 15,337 | $ | 63,999 | $ | 4,830 | $ | (3,666) | $ | 80,500 | |||||||
Time deposits | $ | — | $ | 2,818 | $ | — | $ | — | $ | 2,818 | |||||||
Derivative liabilities | 16 | 4,955 | 3,338 | (3,720) | 4,589 | ||||||||||||
Short-term borrowings and other liabilities(a) | 517 | 1,786 | — | — | 2,303 | ||||||||||||
Total | $ | 533 | $ | 9,559 | $ | 3,338 | $ | (3,720) | $ | 9,710 | |||||||
December 31, 2022 | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
U.S. Treasury and agencies | $ | 13,723 | $ | 8,310 | $ | — | $ | — | $ | 22,033 | |||||||
Mortgage-backed securities | |||||||||||||||||
Residential agency | — | 29,271 | — | — | 29,271 | ||||||||||||
Commercial | |||||||||||||||||
Agency | — | 7,145 | — | — | 7,145 | ||||||||||||
Non-agency | — | 7 | — | — | 7 | ||||||||||||
Asset-backed securities | — | 4,323 | — | — | 4,323 | ||||||||||||
Obligations of state and political subdivisions | — | 10,124 | 1 | — | 10,125 | ||||||||||||
Other | — | 6 | — | — | 6 | ||||||||||||
Total available-for-sale | 13,723 | 59,186 | 1 | — | 72,910 | ||||||||||||
Mortgage loans held for sale | — | 1,849 | — | — | 1,849 | ||||||||||||
Mortgage servicing rights | — | — | 3,755 | — | 3,755 | ||||||||||||
Derivative assets | 9 | 6,608 | 1,255 | (5,427) | 2,445 | ||||||||||||
Other assets | 248 | 1,756 | — | — | 2,004 | ||||||||||||
Total | $ | 13,980 | $ | 69,399 | $ | 5,011 | $ | (5,427) | $ | 82,963 | |||||||
Derivative liabilities | $ | 4 | $ | 6,241 | $ | 4,454 | $ | (4,551) | $ | 6,148 | |||||||
Short-term borrowings and other liabilities(a) | 125 | 1,564 | — | — | 1,689 | ||||||||||||
Total | $ | 129 | $ | 7,805 | $ | 4,454 | $ | (4,551) | $ | 7,837 |
127 | ||
(Dollars in Millions) | Beginning of Period Balance | Net Gains (Losses) Included in Net Income | Net Gains (Losses) Included in Other Comprehensive Income (Loss) | Purchases | Sales | Principal Payments | 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 | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | (1) | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Total available-for-sale | 1 | — | — | — | — | (1) | — | — | — | — | |||||||||||||||||||||||||||||||
Mortgage servicing rights | 3,755 | (316) | (a) | — | 5 | (440) | — | 373 | (c) | — | 3,377 | (316) | (a) | ||||||||||||||||||||||||||||
Net derivative assets and liabilities | (3,199) | (2,696) | (b) | — | 552 | (45) | — | 1 | 3,502 | (1,885) | (183) | (d) | |||||||||||||||||||||||||||||
2022 | |||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | 7 | $ | — | $ | (3) | $ | — | $ | (4) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Obligations of state and political subdivisions | 1 | — | — | — | — | — | — | — | 1 | — | |||||||||||||||||||||||||||||||
Total available-for-sale | 8 | — | (3) | — | (4) | — | — | — | 1 | — | |||||||||||||||||||||||||||||||
Mortgage servicing rights | 2,953 | 311 | (a) | — | 156 | (255) | — | 590 | (c) | — | 3,755 | 311 | (a) | ||||||||||||||||||||||||||||
Net derivative assets and liabilities | 799 | (5,940) | (e) | — | 716 | (36) | — | 11 | 1,251 | (3,199) | (3,538) | (f) | |||||||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | 7 | $ | — | $ | 1 | $ | — | $ | — | $ | (1) | $ | — | $ | — | $ | 7 | $ | 1 | |||||||||||||||||||||
Obligations of state and political subdivisions | 1 | — | — | — | — | — | — | — | 1 | — | |||||||||||||||||||||||||||||||
Total available-for-sale | 8 | — | 1 | — | — | (1) | — | — | 8 | 1 | |||||||||||||||||||||||||||||||
Mortgage servicing rights | 2,210 | (437) | (a) | — | 42 | 2 | — | 1,136 | (c) | — | 2,953 | (437) | (a) | ||||||||||||||||||||||||||||
Net derivative assets and liabilities | 2,326 | (924) | (g) | — | 337 | (3) | — | — | (937) | 799 | (968) | (h) |
2023 | 2022 | |||||||||||||||||||||||||
(Dollars in Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Loans(a) | $ | — | $ | — | $ | 354 | $ | 354 | $ | — | $ | — | $ | 97 | $ | 97 | ||||||||||
Other assets(b) | — | — | 27 | 27 | — | — | 21 | 21 |
128 U.S. Bancorp 2023 Annual Report | ||
(Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Loans(a) | $ | 368 | $ | 40 | $ | 60 | |||||
Other assets(b) | 32 | 20 | 25 |
2023 | 2022 | |||||||||||||||||||
(Dollars in Millions) | Fair Value Carrying Amount | Contractual Principal Outstanding | Carrying Amount Over (Under) Contractual Principal Outstanding | Fair Value Carrying Amount | Contractual Principal Outstanding | Carrying Amount Over (Under) Contractual Principal Outstanding | ||||||||||||||
Total loans(a) | $ | 2,011 | $ | 1,994 | $ | 17 | $ | 1,849 | $ | 1,848 | $ | 1 | ||||||||
Time deposits | 2,818 | 2,822 | (4) | — | — | — |
2023 | 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 | $ | 61,192 | $ | 61,192 | $ | — | $ | — | $ | 61,192 | $ | 53,542 | $ | 53,542 | $ | — | $ | — | $ | 53,542 | ||||||||||||
Federal funds sold and securities purchased under resale agreements | 2,543 | — | 2,543 | — | 2,543 | 356 | — | 356 | — | 356 | ||||||||||||||||||||||
Investment securities held-to-maturity | 84,045 | 1,310 | 72,778 | — | 74,088 | 88,740 | 1,293 | 76,581 | — | 77,874 | ||||||||||||||||||||||
Loans held for sale(a) | 190 | — | — | 190 | 190 | 351 | — | — | 351 | 351 | ||||||||||||||||||||||
Loans | 366,456 | — | — | 362,849 | 362,849 | 381,277 | — | — | 368,874 | 368,874 | ||||||||||||||||||||||
Other(b) | 2,377 | — | 1,863 | 514 | 2,377 | 2,962 | — | 2,224 | 738 | 2,962 | ||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||
Time deposits(c) | 49,455 | — | 49,607 | — | 49,607 | 32,946 | — | 32,338 | — | 32,338 | ||||||||||||||||||||||
Short-term borrowings(d) | 12,976 | — | 12,729 | — | 12,729 | 29,527 | — | 29,145 | — | 29,145 | ||||||||||||||||||||||
Long-term debt | 51,480 | — | 49,697 | — | 49,697 | 39,829 | — | 37,622 | — | 37,622 | ||||||||||||||||||||||
Other(e) | 5,432 | — | 1,406 | 4,026 | 5,432 | 5,137 | — | 1,500 | 3,637 | 5,137 |
129 | ||
NOTE 23 | Guarantees and Contingent Liabilities |
Term | |||||||||||
(Dollars in Millions) | Less Than One Year | Greater Than One Year | Total | ||||||||
Commercial and commercial real estate loans | $ | 43,385 | $ | 137,155 | $ | 180,540 | |||||
Corporate and purchasing card loans(a) | 34,943 | — | 34,943 | ||||||||
Residential mortgages | 114 | — | 114 | ||||||||
Retail credit card loans(a) | 134,297 | — | 134,297 | ||||||||
Other retail loans | 15,616 | 27,430 | 43,046 | ||||||||
Other | 7,585 | — | 7,585 |
(Dollars in Millions) | Collateral Held | Carrying Amount | Maximum Potential Future Payments | ||||||||
Standby letters of credit | $ | — | $ | 20 | $ | 10,999 | |||||
Third party borrowing arrangements | — | — | 5 | ||||||||
Securities lending indemnifications | 6,924 | — | 6,679 | ||||||||
Asset sales | — | 106 | 10,263 | ||||||||
Merchant processing | 815 | 71 | 140,288 | ||||||||
Tender option bond program guarantee | 607 | — | 589 | ||||||||
Other | — | 21 | 2,696 |
130 U.S. Bancorp 2023 Annual Report | ||
Term | |||||||||||
(Dollars in Millions) | Less Than One Year | Greater Than One Year | Total | ||||||||
Standby | $ | 6,444 | $ | 4,555 | $ | 10,999 | |||||
Commercial | 559 | 59 | 618 |
131 | ||
132 U.S. Bancorp 2023 Annual Report | ||
NOTE 24 | Business Segments |
133 | ||
134 U.S. Bancorp 2023 Annual Report | ||
Wealth, Corporate, Commercial and Institutional Banking | Consumer and Business Banking | Payment Services | |||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||
Condensed Income Statement | |||||||||||||||||||||||||||||||||||||||||
Net interest income (taxable-equivalent basis) | $ | 6,129 | $ | 5,213 | $ | 8,331 | $ | 6,764 | $ | 2,702 | $ | 2,504 | |||||||||||||||||||||||||||||
Noninterest income | 4,143 | 3,561 | 1,662 | 1,536 | 4,056 | (a) | 3,794 | (a) | |||||||||||||||||||||||||||||||||
Total net revenue | 10,272 | 8,774 | 9,993 | 8,300 | 6,758 | 6,298 | |||||||||||||||||||||||||||||||||||
Noninterest expense | 5,183 | 4,135 | 6,964 | 5,779 | 3,772 | 3,525 | |||||||||||||||||||||||||||||||||||
Income (loss) before provision and income taxes | 5,089 | 4,639 | 3,029 | 2,521 | 2,986 | 2,773 | |||||||||||||||||||||||||||||||||||
Provision for credit losses | 334 | 154 | 79 | 75 | 1,394 | 980 | |||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 4,755 | 4,485 | 2,950 | 2,446 | 1,592 | 1,793 | |||||||||||||||||||||||||||||||||||
Income taxes and taxable-equivalent adjustment | 1,190 | 1,122 | 738 | 612 | 398 | 449 | |||||||||||||||||||||||||||||||||||
Net income (loss) | 3,565 | 3,363 | 2,212 | 1,834 | 1,194 | 1,344 | |||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Net income (loss) attributable to U.S. Bancorp | $ | 3,565 | $ | 3,363 | $ | 2,212 | $ | 1,834 | $ | 1,194 | $ | 1,344 | |||||||||||||||||||||||||||||
Average Balance Sheet | |||||||||||||||||||||||||||||||||||||||||
Loans | $ | 175,780 | $ | 150,512 | $ | 161,862 | $ | 144,441 | $ | 38,471 | $ | 34,627 | |||||||||||||||||||||||||||||
Other earning assets | 6,615 | 4,771 | 2,388 | 3,117 | 97 | 634 | |||||||||||||||||||||||||||||||||||
Goodwill | 4,682 | 3,634 | 4,466 | 3,250 | 3,327 | 3,305 | |||||||||||||||||||||||||||||||||||
Other intangible assets | 1,007 | 365 | 5,265 | 3,784 | 350 | 423 | |||||||||||||||||||||||||||||||||||
Assets | 202,642 | 169,554 | 179,103 | 160,174 | 44,292 | 41,072 | |||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 70,977 | 82,671 | 31,082 | 31,719 | 2,981 | 3,410 | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 199,780 | 175,345 | 189,148 | 163,190 | 103 | 162 | |||||||||||||||||||||||||||||||||||
Total deposits | 270,757 | 258,016 | 220,230 | 194,909 | 3,084 | 3,572 | |||||||||||||||||||||||||||||||||||
Total U.S. Bancorp shareholders’ equity | 22,362 | 18,159 | 16,016 | 12,678 | 9,310 | 8,233 | |||||||||||||||||||||||||||||||||||
Treasury and Corporate Support | Consolidated Company | ||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||
Condensed Income Statement | |||||||||||||||||||||||||||||||||||||||||
Net interest income (taxable-equivalent basis) | $ | 365 | $ | 365 | $ | 17,527 | $ | 14,846 | |||||||||||||||||||||||||||||||||
Noninterest income | 756 | 565 | 10,617 | (b) | 9,456 | (b) | |||||||||||||||||||||||||||||||||||
Total net revenue | 1,121 | 930 | 28,144 | 24,302 | |||||||||||||||||||||||||||||||||||||
Noninterest expense | 2,954 | 1,467 | 18,873 | 14,906 | |||||||||||||||||||||||||||||||||||||
Income (loss) before provision and income taxes | (1,833) | (537) | 9,271 | 9,396 | |||||||||||||||||||||||||||||||||||||
Provision for credit losses | 468 | 768 | 2,275 | 1,977 | |||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (2,301) | (1,305) | 6,996 | 7,419 | |||||||||||||||||||||||||||||||||||||
Income taxes and taxable-equivalent adjustment | (788) | (602) | 1,538 | 1,581 | |||||||||||||||||||||||||||||||||||||
Net income (loss) | (1,513) | (703) | 5,458 | 5,838 | |||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | (29) | (13) | (29) | (13) | |||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to U.S. Bancorp | $ | (1,542) | $ | (716) | $ | 5,429 | $ | 5,825 | |||||||||||||||||||||||||||||||||
Average Balance Sheet | |||||||||||||||||||||||||||||||||||||||||
Loans | $ | 5,162 | $ | 3,993 | $ | 381,275 | $ | 333,573 | |||||||||||||||||||||||||||||||||
Other earning assets | 214,824 | 203,248 | 223,924 | 211,770 | |||||||||||||||||||||||||||||||||||||
Goodwill | — | — | 12,475 | 10,189 | |||||||||||||||||||||||||||||||||||||
Other intangible assets | 17 | 5 | 6,639 | 4,577 | |||||||||||||||||||||||||||||||||||||
Assets | 237,403 | 221,349 | 663,440 | 592,149 | |||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 2,728 | 2,594 | 107,768 | 120,394 | |||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 8,864 | 3,293 | 397,895 | 341,990 | |||||||||||||||||||||||||||||||||||||
Total deposits | 11,592 | 5,887 | 505,663 | 462,384 | |||||||||||||||||||||||||||||||||||||
Total U.S. Bancorp shareholders’ equity | 5,972 | 11,346 | 53,660 | 50,416 |
135 | ||
NOTE 25 | U.S. Bancorp (Parent Company) |
At December 31 (Dollars in Millions) | 2023 | 2022 | ||||||
Assets | ||||||||
Due from banks, principally interest-bearing | $ | 11,585 | $ | 5,288 | ||||
Available-for-sale investment securities | 662 | 672 | ||||||
Investments in bank subsidiaries | 61,495 | 59,202 | ||||||
Investments in nonbank subsidiaries | 3,884 | 3,575 | ||||||
Advances to bank subsidiaries | 12,100 | 9,100 | ||||||
Advances to nonbank subsidiaries | 159 | 150 | ||||||
Other assets | 974 | 1,101 | ||||||
Total assets | $ | 90,859 | $ | 79,088 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Long-term debt | $ | 34,332 | $ | 26,983 | ||||
Other liabilities | 1,221 | 1,339 | ||||||
Shareholders’ equity | 55,306 | 50,766 | ||||||
Total liabilities and shareholders’ equity | $ | 90,859 | $ | 79,088 |
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Income | |||||||||||
Dividends from bank subsidiaries | $ | 4,869 | $ | 4,750 | $ | 7,000 | |||||
Dividends from nonbank subsidiaries | 11 | 105 | 2 | ||||||||
Interest from subsidiaries | 606 | 119 | 112 | ||||||||
Other income | 51 | 31 | 46 | ||||||||
Total income | 5,537 | 5,005 | 7,160 | ||||||||
Expense | |||||||||||
Interest expense | 1,336 | 505 | 348 | ||||||||
Other expense | 137 | 162 | 154 | ||||||||
Total expense | 1,473 | 667 | 502 | ||||||||
Income before income taxes and equity in undistributed income of subsidiaries | 4,064 | 4,338 | 6,658 | ||||||||
Applicable income taxes | (170) | (138) | (53) | ||||||||
Income of parent company | 4,234 | 4,476 | 6,711 | ||||||||
Equity in undistributed income of subsidiaries | 1,195 | 1,349 | 1,252 | ||||||||
Net income attributable to U.S. Bancorp | $ | 5,429 | $ | 5,825 | $ | 7,963 |
136 U.S. Bancorp 2023 Annual Report | ||
Year Ended December 31 (Dollars in Millions) | 2023 | 2022 | 2021 | ||||||||
Operating Activities | |||||||||||
Net income attributable to U.S. Bancorp | $ | 5,429 | $ | 5,825 | $ | 7,963 | |||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in undistributed income of subsidiaries | (1,195) | (1,349) | (1,252) | ||||||||
Other, net | 83 | (398) | (85) | ||||||||
Net cash provided by operating activities | 4,317 | 4,078 | 6,626 | ||||||||
Investing Activities | |||||||||||
Proceeds from sales and maturities of investment securities | 25 | 423 | 200 | ||||||||
Investments in subsidiaries | — | (5,030) | — | ||||||||
Net (increase) decrease in short-term advances to subsidiaries | (9) | 557 | 411 | ||||||||
Long-term advances to subsidiaries | (7,500) | (2,000) | (7,000) | ||||||||
Principal collected on long-term advances to subsidiaries | 4,500 | 2,500 | 1,250 | ||||||||
Cash paid for acquisition | — | (5,500) | — | ||||||||
Other, net | 172 | (173) | (269) | ||||||||
Net cash used in investing activities | (2,812) | (9,223) | (5,408) | ||||||||
Financing Activities | |||||||||||
Proceeds from issuance of long-term debt | 8,150 | 8,150 | 1,300 | ||||||||
Principal payments or redemption of long-term debt | (936) | (2,300) | (3,000) | ||||||||
Proceeds from issuance of preferred stock | — | 437 | 2,221 | ||||||||
Proceeds from issuance of common stock | 951 | 21 | 43 | ||||||||
Repurchase of preferred stock | — | (1,100) | (1,250) | ||||||||
Repurchase of common stock | (62) | (69) | (1,555) | ||||||||
Cash dividends paid on preferred stock | (341) | (299) | (308) | ||||||||
Cash dividends paid on common stock | (2,970) | (2,776) | (2,579) | ||||||||
Net cash provided by (used in) financing activities | 4,792 | 2,064 | (5,128) | ||||||||
Change in cash and due from banks | 6,297 | (3,081) | (3,910) | ||||||||
Cash and due from banks at beginning of year | 5,288 | 8,369 | 12,279 | ||||||||
Cash and due from banks at end of year | $ | 11,585 | $ | 5,288 | $ | 8,369 |
NOTE 26 | Subsequent Events |
137 | ||
2023 | 2022 | 2021 | |||||||||||||||||||||||||||
Year Ended December 31 (Dollars in Millions) | Average Balances | Interest | Yields and Rates | Average Balances | Interest | Yields and Rates | Average Balances | Interest | Yields and Rates | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Investment securities | $ | 162,757 | $ | 4,566 | 2.81 | % | $ | 169,442 | $ | 3,457 | 2.04 | % | $ | 154,702 | $ | 2,434 | 1.57 | % | |||||||||||
Loans held for sale | 2,461 | 147 | 5.98 | 3,829 | 201 | 5.26 | 8,024 | 232 | 2.89 | ||||||||||||||||||||
Loans(b) | |||||||||||||||||||||||||||||
Commercial | 134,883 | 8,662 | 6.42 | 123,797 | 4,340 | 3.51 | 102,855 | 2,684 | 2.61 | ||||||||||||||||||||
Commercial real estate | 54,646 | 3,384 | 6.19 | 41,098 | 1,655 | 4.03 | 38,781 | 1,219 | 3.14 | ||||||||||||||||||||
Residential mortgages | 115,922 | 4,305 | 3.71 | 84,749 | 2,775 | 3.27 | 74,629 | 2,477 | 3.32 | ||||||||||||||||||||
Credit card | 26,570 | 3,429 | 12.91 | 23,478 | 2,583 | 11.00 | 21,645 | 2,278 | 10.52 | ||||||||||||||||||||
Other retail | 49,254 | 2,599 | 5.28 | 60,451 | 2,292 | 3.79 | 59,055 | 2,126 | 3.60 | ||||||||||||||||||||
Total loans | 381,275 | 22,379 | 5.87 | 333,573 | 13,645 | 4.09 | 296,965 | 10,784 | 3.63 | ||||||||||||||||||||
Interest-bearing deposits with banks | 49,000 | 2,581 | 5.27 | 31,425 | 559 | 1.78 | 39,914 | 42 | .10 | ||||||||||||||||||||
Other earning assets | 9,706 | 471 | 4.85 | 7,074 | 204 | 2.89 | 6,536 | 101 | 1.55 | ||||||||||||||||||||
Total earning assets | 605,199 | 30,144 | 4.98 | 545,343 | 18,066 | 3.31 | 506,141 | 13,593 | 2.69 | ||||||||||||||||||||
Allowance for loan losses | (7,138) | (5,880) | (6,326) | ||||||||||||||||||||||||||
Unrealized gain (loss) on investment securities | (7,985) | (6,914) | 1,174 | ||||||||||||||||||||||||||
Other assets | 73,364 | 59,600 | 55,543 | ||||||||||||||||||||||||||
Total assets | $ | 663,440 | $ | 592,149 | $ | 556,532 | |||||||||||||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 107,768 | $ | 120,394 | $ | 127,204 | |||||||||||||||||||||||
Interest-bearing deposits | |||||||||||||||||||||||||||||
Interest checking | 129,341 | 1,334 | 1.03 | 117,471 | 277 | .24 | 103,198 | 24 | .02 | ||||||||||||||||||||
Money market savings | 166,272 | 5,654 | 3.40 | 126,221 | 1,220 | .97 | 117,093 | 199 | .17 | ||||||||||||||||||||
Savings accounts | 55,590 | 90 | .16 | 67,722 | 10 | .02 | 62,294 | 7 | .01 | ||||||||||||||||||||
Time deposits | 46,692 | 1,697 | 3.63 | 30,576 | 365 | 1.19 | 24,492 | 90 | .37 | ||||||||||||||||||||
Total interest-bearing deposits | 397,895 | 8,775 | 2.21 | 341,990 | 1,872 | .55 | 307,077 | 320 | .10 | ||||||||||||||||||||
Short-term borrowings | |||||||||||||||||||||||||||||
Federal funds purchased | 435 | 21 | 4.72 | 687 | 8 | 1.12 | 1,507 | 2 | .10 | ||||||||||||||||||||
Securities sold under agreements to repurchase | 3,103 | 125 | 4.04 | 2,037 | 20 | 1.00 | 1,790 | 2 | .13 | ||||||||||||||||||||
Commercial paper | 7,800 | 268 | 3.44 | 7,186 | 69 | .96 | 7,228 | 1 | .01 | ||||||||||||||||||||
Other short-term borrowings | 22,803 | 1,563 | 6.85 | 15,830 | 471 | 2.98 | 4,249 | 65 | 1.54 | ||||||||||||||||||||
Total short-term borrowings | 34,141 | 1,977 | 5.79 | 25,740 | 568 | 2.21 | 14,774 | 70 | .47 | ||||||||||||||||||||
Long-term debt | 44,142 | 1,865 | 4.22 | 33,114 | 780 | 2.35 | 36,682 | 603 | 1.64 | ||||||||||||||||||||
Total interest-bearing liabilities | 476,178 | 12,617 | 2.65 | 400,844 | 3,220 | .80 | 358,533 | 993 | .28 | ||||||||||||||||||||
Other liabilities | 25,369 | 20,029 | 16,353 | ||||||||||||||||||||||||||
Shareholders’ equity | |||||||||||||||||||||||||||||
Preferred equity | 6,808 | 6,761 | 6,255 | ||||||||||||||||||||||||||
Common equity | 46,852 | 43,655 | 47,555 | ||||||||||||||||||||||||||
Total U.S. Bancorp shareholders’ equity | 53,660 | 50,416 | 53,810 | ||||||||||||||||||||||||||
Noncontrolling interests | 465 | 466 | 632 | ||||||||||||||||||||||||||
Total equity | 54,125 | 50,882 | 54,442 | ||||||||||||||||||||||||||
Total liabilities and equity | $ | 663,440 | $ | 592,149 | $ | 556,532 | |||||||||||||||||||||||
Net interest income | $ | 17,527 | $ | 14,846 | $ | 12,600 | |||||||||||||||||||||||
Gross interest margin | 2.33 | % | 2.51 | % | 2.41 | % | |||||||||||||||||||||||
Gross interest margin without taxable-equivalent increments | 2.31 | % | 2.49 | % | 2.39 | % | |||||||||||||||||||||||
Percent of Earning Assets | |||||||||||||||||||||||||||||
Interest income | 4.98 | % | 3.31 | % | 2.69 | % | |||||||||||||||||||||||
Interest expense | 2.08 | .59 | .20 | ||||||||||||||||||||||||||
Net interest margin | 2.90 | % | 2.72 | % | 2.49 | % | |||||||||||||||||||||||
Net interest margin without taxable-equivalent increments | 2.88 | % | 2.70 | % | 2.47 | % |
138 U.S. Bancorp 2023 Annual Report | ||
Earnings Per Common Share Summary | 2023 | 2022 | 2021 | ||||||||
Earnings per common share | $ | 3.27 | $ | 3.69 | $ | 5.11 | |||||
Diluted earnings per common share | 3.27 | 3.69 | 5.10 | ||||||||
Dividends declared per common share | 1.93 | 1.88 | 1.76 | ||||||||
Other Statistics (Dollars and Shares in Millions) | |||||||||||
Common shares outstanding(a) | 1,558 | 1,531 | 1,484 | ||||||||
Average common shares outstanding and common stock equivalents | |||||||||||
Earnings per common share | 1,543 | 1,489 | 1,489 | ||||||||
Diluted earnings per common share | 1,543 | 1,490 | 1,490 | ||||||||
Number of shareholders(b) | 29,094 | 30,280 | 31,111 | ||||||||
Common dividends declared | $ | 3,000 | $ | 2,829 | $ | 2,630 |
139 | ||
140 U.S. Bancorp 2023 Annual Report | ||
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Form | Registration Statement No. | Purpose | ||||||
S-3 | 333-270467 | Shelf Registration Statement | ||||||
S-8 | 333-74036 | U.S. Bancorp 2001 Stock Incentive Plan | ||||||
S-8 | 333-100671 | U.S. Bancorp 401(k) Savings Plan | ||||||
S-8 | 333-203620 | U.S. Bancorp 2015 Stock Incentive Plan | ||||||
S-8 | 333-142194 | Various benefit plans of U.S. Bancorp | ||||||
S-8 | 333-166193 | Various benefit plans of U.S. Bancorp | ||||||
S-8 | 333-189506 | Various benefit plans of U.S. Bancorp | ||||||
S-8 | 333-195375 | Various benefit plans of U.S. Bancorp | ||||||
S-8 | 333-227999 | Various benefit plans of U.S. Bancorp | ||||||
S-8 | 333-268116 | Various benefit plans of U.S. Bancorp |
/s/ Warner L. Baxter | /s/ Roland A. Hernandez | |||||||
Warner L. Baxter | Roland A. Hernandez | |||||||
/s/ Dorothy J. Bridges | /s/ Richard P. McKenney | |||||||
Dorothy J. Bridges | Richard P. McKenney | |||||||
/s/ Elizabeth L. Buse | /s/ Yusuf I. Mehdi | |||||||
Elizabeth L. Buse | Yusuf I. Mehdi | |||||||
/s/ Alan B. Colberg | /s/ Loretta E. Reynolds | |||||||
Alan B. Colberg | Loretta E. Reynolds | |||||||
/s/ Kimberly N. Ellison-Taylor | /s/ John P. Wiehoff | |||||||
Kimberly N. Ellison-Taylor | John P. Wiehoff | |||||||
/s/ Kimberly J. Harris | /s/ Scott W. Wine | |||||||
Kimberly J. Harris | Scott W. Wine |
/s/ ANDREW CECERE | |||||
Andrew Cecere | |||||
Dated: February 20, 2024 | Chief Executive Officer |
/s/ JOHN C. STERN | |||||
John C. Stern | |||||
Dated: February 20, 2024 | Chief Financial Officer |
/s/ ANDREW CECERE | /s/ JOHN C. STERN | |||||||
Andrew Cecere | John C. Stern | |||||||
Chief Executive Officer | Chief Financial Officer |