☑ |
QUARTERLY 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 F
Non-Cumulative
Perpetual Preferred Stock, par value $1.00)
|
USB PrM | 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 | ||
0.850% Medium-Term Notes, Series X (Senior), due June 7, 2024
|
USB/24B | New York Stock Exchange |
Large accelerated filer ☑ | Accelerated filer ☐ | |
Non-accelerated
filer ☐
|
Smaller reporting company ☐
Emerging growth company ☐
|
Class | Outstanding as of April 30, 2021 | |
Common Stock, $0.01 Par Value | 1,489,677,942 shares |
Part I — Financial Information
|
||||
3 | ||||
3 | ||||
3 | ||||
6 | ||||
30 | ||||
32 | ||||
32 | ||||
7 | ||||
7 | ||||
8 | ||||
21 | ||||
21 | ||||
21 | ||||
21 | ||||
23 | ||||
24 | ||||
25 | ||||
27 | ||||
33 | ||||
Part II — Other Information
|
||||
71 | ||||
71 | ||||
71 | ||||
71 | ||||
72 | ||||
73 |
U.S. Bancorp |
1
|
Table 1
|
Selected Financial Data
|
Three Months Ended
March 31
|
||||||||||||
(Dollars and Shares in Millions, Except Per Share Data) | 2021 | 2020 |
Percent
Change |
|||||||||
Condensed Income Statement
|
||||||||||||
Net interest income
|
$ | 3,063 | $ | 3,223 | (5.0 | )% | ||||||
Taxable-equivalent adjustment (a)
|
26 | 24 | 8.3 | |||||||||
Net interest income (taxable-equivalent basis) (b)
|
3,089 | 3,247 | (4.9 | ) | ||||||||
Noninterest income
|
2,381 | 2,525 | (5.7 | ) | ||||||||
Total net revenue
|
5,470 | 5,772 | (5.2 | ) | ||||||||
Noninterest expense
|
3,379 | 3,316 | 1.9 | |||||||||
Provision for credit losses
|
(827 | ) | 993 | * | ||||||||
Income before taxes
|
2,918 | 1,463 | 99.5 | |||||||||
Income taxes and taxable-equivalent adjustment
|
633 | 284 | * | |||||||||
Net income
|
2,285 | 1,179 | 93.8 | |||||||||
Net (income) loss attributable to noncontrolling interests
|
(5 | ) | (8 | ) | 37.5 | |||||||
Net income attributable to U.S. Bancorp
|
$ | 2,280 | $ | 1,171 | 94.7 | |||||||
Net income applicable to U.S. Bancorp common shareholders
|
$ | 2,175 | $ | 1,088 | 99.9 | |||||||
Per Common Share
|
||||||||||||
Earnings per share
|
$ | 1.45 | $ | .72 | * | % | ||||||
Diluted earnings per share
|
1.45 | .72 | * | |||||||||
Dividends declared per share
|
.42 | .42 | — | |||||||||
Book value per share (c)
|
30.53 | 30.24 | 1.0 | |||||||||
Market value per share
|
55.31 | 34.45 | 60.6 | |||||||||
Average common shares outstanding
|
1,502 | 1,518 | (1.1 | ) | ||||||||
Average diluted common shares outstanding
|
1,503 | 1,519 | (1.1 | ) | ||||||||
Financial Ratios
|
||||||||||||
Return on average assets
|
1.69 | % | .95 | % | ||||||||
Return on average common equity
|
19.0 | 9.7 | ||||||||||
Net interest margin (taxable-equivalent basis) (a)
|
2.50 | 2.91 | ||||||||||
Efficiency ratio (b)
|
62.1 | 58.0 | ||||||||||
Net charge-offs as a percent of average loans outstanding
|
.31 | .53 | ||||||||||
Average Balances
|
||||||||||||
Loans
|
$ | 293,989 | $ | 297,657 | (1.2 | )% | ||||||
Loans held for sale
|
10,032 | 4,748 | * | |||||||||
Investment securities (d)
|
145,520 | 120,843 | 20.4 | |||||||||
Earning assets
|
497,711 | 447,722 | 11.2 | |||||||||
Assets
|
548,734 | 494,807 | 10.9 | |||||||||
Noninterest-bearing deposits
|
118,352 | 74,142 | 59.6 | |||||||||
Deposits
|
426,364 | 362,804 | 17.5 | |||||||||
Short-term borrowings
|
13,107 | 20,253 | (35.3 | ) | ||||||||
Long-term debt
|
39,463 | 43,846 | (10.0 | ) | ||||||||
Total U.S. Bancorp shareholders’ equity
|
52,729 | 51,146 | 3.1 | |||||||||
March 31,
2021 |
December 31,
2020 |
|||||||||||
Period End Balances
|
||||||||||||
Loans
|
$ | 294,427 | $ | 297,707 | (1.1 | )% | ||||||
Investment securities
|
156,003 | 136,840 | 14.0 | |||||||||
Assets
|
553,375 | 553,905 | (.1 | ) | ||||||||
Deposits
|
433,761 | 429,770 | .9 | |||||||||
Long-term debt
|
37,419 | 41,297 | (9.4 | ) | ||||||||
Total U.S. Bancorp shareholders’ equity
|
51,678 | 53,095 | (2.7 | ) | ||||||||
Asset Quality
|
||||||||||||
Nonperforming assets
|
$ | 1,202 | $ | 1,298 | (7.4 | )% | ||||||
Allowance for credit losses
|
6,960 | 8,010 | (13.1 | ) | ||||||||
Allowance for credit losses as a percentage of
period-end
loans
|
2.36 | % | 2.69 | % | ||||||||
Capital Ratios
|
||||||||||||
Common equity tier 1 capital
|
9.9 | % | 9.7 | % | ||||||||
Tier 1 capital
|
11.5 | 11.3 | ||||||||||
Total risk-based capital
|
13.5 | 13.4 | ||||||||||
Leverage
|
8.4 | 8.3 | ||||||||||
Total leverage exposure
|
7.4 | 7.3 | ||||||||||
Tangible common equity to tangible assets (b)
|
6.6 | 6.9 | ||||||||||
Tangible common equity to risk-weighted assets (b)
|
9.1 | 9.5 | ||||||||||
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (b)
|
9.5 | 9.3 |
|
|
|
*
|
Not meaningful
|
(a)
|
Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.
|
(b)
|
See
Non-GAAP
Financial Measures beginning on page 30.
|
(c)
|
Calculated as U.S. Bancorp common shareholders’ equity divided by common shares outstanding at end of the period.
|
(d)
|
Excludes unrealized gains and losses on
available-for-sale
available-for-sale
held-to-maturity.
|
2
|
U.S. Bancorp |
U.S. Bancorp |
3
|
Table 2
|
Noninterest Income
|
Three Months Ended
March 31
|
||||||||||||||||
(Dollars in Millions) | 2021 | 2020 |
Percent
Change |
|||||||||||||
Credit and debit card revenue
|
|
$ | 336 | $ | 304 | 10.5 | % | |||||||||
Corporate payment products revenue
|
|
126 | 145 | (13.1 | ) | |||||||||||
Merchant processing services
|
|
318 | 337 | (5.6 | ) | |||||||||||
Trust and investment management fees
|
|
444 | 427 | 4.0 | ||||||||||||
Deposit service charges
|
|
161 | 209 | (23.0 | ) | |||||||||||
Treasury management fees
|
|
147 | 143 | 2.8 | ||||||||||||
Commercial products revenue
|
|
280 | 246 | 13.8 | ||||||||||||
Mortgage banking revenue
|
|
299 | 395 | (24.3 | ) | |||||||||||
Investment products fees
|
|
55 | 49 | 12.2 | ||||||||||||
Securities gains (losses), net
|
|
25 | 50 | (50.0 | ) | |||||||||||
Other
|
190 | 220 | (13.6 | ) | ||||||||||||
Total noninterest income
|
|
$ | 2,381 | $ | 2,525 | (5.7 | )% |
4
|
U.S. Bancorp |
Table 3
|
Noninterest Expense
|
Three Months Ended
March 31
|
||||||||||||
(Dollars in Millions) | 2021 | 2020 |
Percent
Change |
|||||||||
Compensation
|
$ | 1,803 | $ | 1,620 | 11.3 | % | ||||||
Employee benefits
|
384 | 352 | 9.1 | |||||||||
Net occupancy and equipment
|
263 | 276 | (4.7 | ) | ||||||||
Professional services
|
98 | 99 | (1.0 | ) | ||||||||
Marketing and business development
|
48 | 74 | (35.1 | ) | ||||||||
Technology and communications
|
359 | 289 | 24.2 | |||||||||
Postage, printing and supplies
|
69 | 72 | (4.2 | ) | ||||||||
Other intangibles
|
38 | 42 | (9.5 | ) | ||||||||
Other
|
317 | 492 | (35.6 | ) | ||||||||
Total noninterest expense
|
$ | 3,379 | $ | 3,316 | 1.9 | % | ||||||
Efficiency ratio (a)
|
62.1 | % | 58.0 | % |
|
|
|
(a)
|
See Non-GAAP Financial Measures beginning on page 30.
|
U.S. Bancorp |
5
|
Table 4
|
Available-for-Sale Investment Securities
|
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||
(Dollars in Millions) |
Amortized
Cost |
Fair Value |
Weighted-
Average Maturity in Years |
Weighted-
Average Yield (d) |
Amortized
Cost |
Fair Value |
Weighted-
Average Maturity in Years |
Weighted-
Average Yield (d) |
||||||||||||||||||||||||
U.S. Treasury and agencies
|
$ | 24,401 | $ | 24,317 | 4.4 | 1.31 | % | $ | 21,954 | $ | 22,391 | 3.8 | 1.37 | % | ||||||||||||||||||
Mortgage-backed securities (a)
|
122,883 | 122,262 | 6.1 | 1.44 | 103,282 | 105,374 | 3.0 | 1.47 | ||||||||||||||||||||||||
Asset-backed securities (a)
|
197 | 202 | 5.9 | 1.09 | 200 | 205 | 6.2 | 1.47 | ||||||||||||||||||||||||
Obligations of state and political subdivisions (b) (c)
|
8,687 | 9,215 | 6.7 | 3.89 | 8,166 | 8,861 | 6.3 | 3.99 | ||||||||||||||||||||||||
Other
|
7 | 7 | .1 | 2.07 | 9 | 9 | .1 | 1.81 | ||||||||||||||||||||||||
Total investment securities
|
$ | 156,175 | $ | 156,003 | 5.9 | 1.55 | % | $ | 133,611 | $ | 136,840 | 3.4 | 1.61 | % |
(a)
|
Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments.
|
(b)
|
Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount.
|
(c)
|
Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par.
|
(d)
|
Yields on investment securities are computed based on amortized cost balances. Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent.
|
6
|
U.S. Bancorp |
U.S. Bancorp |
7
|
• |
Macroeconomic environment and other qualitative considerations, such as regulatory and compliance changes, litigation developments, and technology and cybersecurity;
|
• |
Credit measures, including adversely rated and nonperforming loans, leveraged transactions, credit concentrations and lending limits;
|
• |
Interest rate and market risk, including market value and net income simulation, and trading-related Value at Risk (“VaR”);
|
• |
Liquidity risk, including funding projections under various stressed scenarios;
|
• |
Operational and compliance risk, including losses stemming from events such as fraud, processing errors, control breaches, breaches in data security or adverse business decisions, as well as reporting on technology performance, and various legal and regulatory compliance measures;
|
• |
Capital ratios and projections, including regulatory measures and stressed scenarios; and
|
• |
Strategic and reputation risk considerations, impacts and responses.
|
8
|
U.S. Bancorp |
U.S. Bancorp |
9
|
Residential Mortgages
(Dollars in Millions)
|
Interest
Only |
Amortizing | Total |
Percent
of Total |
||||||||||||
Loan-to-Value
|
||||||||||||||||
Less than or equal to 80%
|
$ | 3,138 | $ | 55,505 | $ | 58,643 | 79.7 | % | ||||||||
Over 80% through 90%
|
7 | 3,146 | 3,153 | 4.3 | ||||||||||||
Over 90% through 100%
|
— | 291 | 291 | .4 | ||||||||||||
Over 100%
|
— | 91 | 91 | .1 | ||||||||||||
No LTV available
|
— | 10 | 10 | — | ||||||||||||
Loans purchased from GNMA mortgage pools (a)
|
— | 11,436 | 11,436 | 15.5 | ||||||||||||
Total (b)
|
$ | 3,145 | $ | 70,479 | $ | 73,624 | 100.0 | % |
(a)
|
Represents loans purchased from Government National Mortgage Association (“GNMA”) mortgage pools whose payments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs.
|
(b)
|
At March 31, 2021, approximately $494 million of residential mortgage balances were considered
sub-prime.
|
Home Equity and Second Mortgages
(Dollars in Millions)
|
Lines | Loans | Total |
Percent
of Total |
||||||||||||
Loan-to-Value
|
||||||||||||||||
Less than or equal to 80%
|
$ | 9,796 | $ | 654 | $ | 10,450 | 89.5 | % | ||||||||
Over 80% through 90%
|
625 | 317 | 942 | 8.1 | ||||||||||||
Over 90% through 100%
|
98 | 36 | 134 | 1.1 | ||||||||||||
Over 100%
|
67 | 6 | 73 | .6 | ||||||||||||
No LTV/CLTV available
|
76 | 4 | 80 | .7 | ||||||||||||
Total (a)
|
$ | 10,662 | $ | 1,017 | $ | 11,679 | 100.0 | % |
(a)
|
At March 31, 2020, approximately $46 million of home equity and second mortgage balances were considered
sub-prime.
|
10
|
U.S. Bancorp |
Junior Liens Behind | ||||||||||||
(Dollars in Millions) |
Company Owned
or Serviced First Lien |
Third Party
First Lien |
Total | |||||||||
Total
|
$ | 3,145 | $ | 5,225 | $ | 8,370 | ||||||
Percent 30—89 days past due
|
.31 | % | .34 | % | .33 | % | ||||||
Percent 90 days or more past due
|
.07 | % | .06 | % | .07 | % | ||||||
Weighted-average CLTV
|
64 | % | 62 | % | 62 | % | ||||||
Weighted-average credit score
|
780 | 778 | 779 |
Table 5
|
Delinquent Loan Ratios as a Percent of Ending Loan Balances |
90 days or more past due
excluding
|
March 31,
2021 |
December 31,
2020 |
||||||||||
Commercial
|
||||||||||||
Commercial
|
.06 | % | .06 | % | ||||||||
Lease financing
|
|
|
|
— | — | |||||||
Total commercial
|
.06 | .05 | ||||||||||
Commercial Real Estate
|
||||||||||||
Commercial mortgages
|
— | — | ||||||||||
Construction and development
|
|
|
|
.03 | .02 | |||||||
Total commercial real estate
|
.01 | .01 | ||||||||||
Residential Mortgages (a)
|
.19 | .18 | ||||||||||
Credit Card
|
.95 | .88 | ||||||||||
Other Retail
|
||||||||||||
Retail leasing
|
.01 | .05 | ||||||||||
Home equity and second mortgages
|
.36 | .36 | ||||||||||
Other
|
|
|
|
.07 | .10 | |||||||
Total other retail
|
|
|
|
.12 | .15 | |||||||
Total loans
|
|
|
|
.16 | % | .16 | % | |||||
90 days or more past due
including
|
March 31,
2021 |
December 31,
2020 |
||||||||||
Commercial
|
.39 | % | .42 | % | ||||||||
Commercial real estate
|
.94 | 1.15 | ||||||||||
Residential mortgages (a)
|
.54 | .50 | ||||||||||
Credit card
|
.95 | .88 | ||||||||||
Other retail
|
|
|
|
.42 | .42 | |||||||
Total loans
|
|
|
|
.54 | % | .57 | % |
(a)
|
Delinquent loan ratios exclude $1.7 billion at March 31, 2021, and $1.8 billion at December 31, 2020, of loans purchased from GNMA mortgage pools whose repayments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. Including these loans, the ratio of residential mortgages 90 days or more past due including all nonperforming loans was 2.81 percent at March 31, 2021, and 2.87 percent at December 31, 2020.
|
U.S. Bancorp |
11
|
Amount
|
As a Percent of Ending
Loan Balances
|
|||||||||||||||||||
(Dollars in Millions) |
March 31,
2021 |
December 31,
2020 |
March 31,
2021 |
December 31,
2020 |
||||||||||||||||
Residential Mortgages (a)
|
|
|||||||||||||||||||
30-89
days
|
$ | 204 | $ | 244 |
|
.28 | % | .32 | % | |||||||||||
90 days or more
|
143 | 137 |
|
.19 | .18 | |||||||||||||||
Nonperforming
|
253 | 245 |
|
|
|
.34 | .32 | |||||||||||||
Total
|
$ | 600 | $ | 626 |
|
.81 | % | .82 | % | |||||||||||
Credit Card
|
|
|||||||||||||||||||
30-89
days
|
$ | 188 | $ | 231 |
|
.90 | % | 1.04 | % | |||||||||||
90 days or more
|
198 | 197 |
|
.95 | .88 | |||||||||||||||
Nonperforming
|
— | — |
|
|
|
— | — | |||||||||||||
Total
|
$ | 386 | $ | 428 |
|
1.85 | % | 1.92 | % | |||||||||||
Other Retail
|
|
|||||||||||||||||||
Retail Leasing
|
|
|||||||||||||||||||
30-89
days
|
$ | 27 | $ | 35 |
|
.34 | % | .43 | % | |||||||||||
90 days or more
|
1 | 4 |
|
.01 | .05 | |||||||||||||||
Nonperforming
|
14 | 13 |
|
|
|
.18 | .16 | |||||||||||||
Total
|
$ | 42 | $ | 52 |
|
.53 | % | .64 | % | |||||||||||
Home Equity and Second Mortgages
|
|
|||||||||||||||||||
30-89
days
|
$ | 44 | $ | 68 |
|
.37 | % | .54 | % | |||||||||||
90 days or more
|
42 | 45 |
|
.36 | .36 | |||||||||||||||
Nonperforming
|
127 | 107 |
|
|
|
1.09 | .86 | |||||||||||||
Total
|
$ | 213 | $ | 220 |
|
1.82 | % | 1.76 | % | |||||||||||
Other (b)
|
|
|||||||||||||||||||
30-89
days
|
$ | 150 | $ | 215 |
|
.40 | % | .60 | % | |||||||||||
90 days or more
|
27 | 37 |
|
.07 | .10 | |||||||||||||||
Nonperforming
|
31 | 34 |
|
|
|
.08 | .09 | |||||||||||||
Total
|
$ | 208 | $ | 286 |
|
|
|
.55 | % | .79 | % |
(a)
|
Excludes $1.5 billion of loans
30-89
days past due and $1.7 billion of loans 90 days or more past due at March 31, 2021, purchased from GNMA mortgage pools that continue to accrue interest, compared with $1.4 billion and $1.8 billion at December 31, 2020, respectively.
|
(b)
|
Includes revolving credit, installment, automobile and student loans.
|
12
|
U.S. Bancorp |
As a Percent of Performing TDRs | ||||||||||||||||||||
At March 31, 2021
(Dollars in Millions) |
Performing
TDRs |
30-89 Days
Past Due |
90 Days or More
Past Due |
Nonperforming
TDRs |
Total
TDRs |
|||||||||||||||
Commercial
|
$ | 183 | 5.1 | % | 2.6 | % | $ | 212 | (a) | $ | 395 | |||||||||
Commercial real estate
|
139 | 1.8 | — | 156 | (b) | 295 | ||||||||||||||
Residential mortgages
|
1,449 | 6.0 | 4.2 | 140 | 1,589 | (d) | ||||||||||||||
Credit card
|
235 | 8.4 | 4.2 | — | 235 | |||||||||||||||
Other retail
|
198 | 10.1 | 5.4 | 46 | (c) | 244 | (e) | |||||||||||||
TDRs, excluding loans purchased from GNMA mortgage pools
|
2,204 | 6.3 | 3.9 | 554 | 2,758 | |||||||||||||||
Loans purchased from GNMA mortgage pools (g)
|
1,322 | — | — | — | 1,322 | (f) | ||||||||||||||
Total
|
$ | 3,526 | 3.9 | % | 2.4 | % | $ | 554 | $ | 4,080 |
(a)
|
Primarily represents loans less than six months from the modification date that have not met the performance period required to return to accrual status (generally six months) and small business credit cards with a modified rate equal to 0 percent.
|
(b)
|
Primarily represents loans less than six months from the modification date that have not met the performance period required to return to accrual status (generally six months).
|
(c)
|
Primarily represents loans with a modified rate equal to 0 percent.
|
(d)
|
Includes $264 million of residential mortgage loans to borrowers that have had debt discharged through bankruptcy and $57 million in trial period arrangements or previously placed in trial period arrangements but not successfully completed.
|
(e)
|
Includes $80 million of other retail loans to borrowers that have had debt discharged through bankruptcy and $17 million in trial period arrangements or previously placed in trial period arrangements but not successfully completed.
|
(f)
|
Includes $169 million of Federal Housing Administration and United States Department of Veterans Affairs residential mortgage loans to borrowers that have had debt discharged through bankruptcy and $269 million in trial period arrangements or previously placed in trial period arrangements but not successfully completed.
|
(g)
|
Approximately 14.9 percent and 39.0 percent of the total TDR loans purchased from GNMA mortgage pools are
30-89
days past due and 90 days or more past due, respectively, but are not classified as delinquent as their repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs.
|
U.S. Bancorp |
13
|
Percentage of Loan Accounts
in Payment Relief Programs |
Percentage of Loan Balances
in Payment Relief Programs |
Program Details | ||||||||
Commercial
|
.07 | % | .03 | % | Primarily 3 month payment deferral up to a maximum of 6 months; interest continues to accrue with various payment options; may include short-term covenant waivers | |||||
Commercial real estate
|
.30 | .62 | Primarily 3 month payment deferral up to a maximum of 6 months; interest continues to accrue with various payment options; may include short-term covenant waivers | |||||||
Residential mortgages (a)
|
2.28 | 2.99 |
Primarily 6 month payment forbearance, which may be extended up to 18 months; interest continues to accrue; cumulative payments suspended during forbearance period are either
paid-off
immediately or under a short-term repayment plan, or addressed through a permanent loan modification that either requires repayment at maturity or through restructured payments over time
|
|||||||
Credit cards
|
.10 | .22 | Primarily payment reduction up to 6 months; payment relief of up to 3 months; interest continues to accrue | |||||||
Other retail
|
.35 | .65 | Home equity loan programs are similar to residential mortgage programs; programs for other loan portfolios are primarily 2 month payment deferral up to a maximum of 4 months; interest continues to accrue | |||||||
Total loans (a)
|
.18 | % | .91 | % |
|
Note:
|
Payment relief generally includes payment deferrals, forbearances, extensions and
re-ages,
and excludes loans made under the Small Business Administration’s (“SBA”) Paycheck Protection Program, as amounts due under that program are expected to be fully forgiven by the SBA.
|
(a)
|
Excludes loans purchased from GNMA mortgage pools, whose repayments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. At March 31, 2021, 40.08 percent of the total number of accounts and 42.15 percent of the total loan balances of loans purchased from GNMA mortgage pools were to borrowers enrolled in payment relief programs as a result of the
COVID-19
pandemic. Including these loans, 11.15 percent of the total number of accounts and 9.07 percent of the total balances of residential mortgages were to borrowers enrolled in payment relief programs as a result of the
COVID-19
pandemic. Including these loans, .43 percent of the total number of accounts and 2.55 percent of the total balances of all loans were to borrowers enrolled in payment relief programs as a result of the
COVID-19
pandemic.
|
14
|
U.S. Bancorp |
Amount |
As a Percent of Ending
Loan Balances |
|||||||||||||||||||
(Dollars in Millions) |
March 31,
2021 |
December 31,
2020 |
March 31,
2021 |
December 31,
2020 |
||||||||||||||||
Residential
|
|
|||||||||||||||||||
California
|
$ | 3 | $ | 2 |
|
.01 | % | .01 | % | |||||||||||
New York
|
2 | 2 |
|
.16 | .17 | |||||||||||||||
Oregon
|
2 | 2 |
|
.07 | .07 | |||||||||||||||
Illinois
|
1 | 2 |
|
.02 | .04 | |||||||||||||||
Florida
|
1 | 1 |
|
.03 | .03 | |||||||||||||||
All other states
|
9 | 14 |
|
|
|
.02 | .03 | |||||||||||||
Total residential
|
18 | 23 |
|
.02 | .03 | |||||||||||||||
Commercial
|
|
|||||||||||||||||||
Iowa
|
1 | 1 |
|
.05 | .04 | |||||||||||||||
All other states
|
– | – |
|
|
|
– | – | |||||||||||||
Total commercial
|
1 | 1 |
|
|
|
– | – | |||||||||||||
Total
|
$ | 19 | $ | 24 |
|
|
|
.01 | % | .01 | % |
U.S. Bancorp |
15
|
Table 6
|
Nonperforming Assets (a)
|
(Dollars in Millions) |
March 31,
2021 |
December 31,
2020 |
||||||
Commercial
|
||||||||
Commercial
|
$ | 298 | $ | 321 | ||||
Lease financing
|
49 | 54 | ||||||
Total commercial
|
347 | 375 | ||||||
Commercial Real Estate
|
||||||||
Commercial mortgages
|
266 | 411 | ||||||
Construction and development
|
90 | 39 | ||||||
Total commercial real estate
|
356 | 450 | ||||||
Residential Mortgages (b)
|
253 | 245 | ||||||
Credit Card
|
– | – | ||||||
Other Retail
|
||||||||
Retail leasing
|
14 | 13 | ||||||
Home equity and second mortgages
|
127 | 107 | ||||||
Other
|
31 | 34 | ||||||
Total other retail
|
172 | 154 | ||||||
Total nonperforming loans
|
1,128 | 1,224 | ||||||
Other Real Estate (c)
|
19 | 24 | ||||||
Other Assets
|
55 | 50 | ||||||
Total nonperforming assets
|
$ | 1,202 | $ | 1,298 | ||||
Accruing loans 90 days or more past due (b)
|
$ | 476 | $ | 477 | ||||
Nonperforming loans to total loans
|
.38 | % | .41 | % | ||||
Nonperforming assets to total loans plus other real estate (c)
|
.41 | % | .44 | % |
(Dollars in Millions) |
Commercial and
Commercial Real Estate |
Residential
Mortgages, Credit Card and Other Retail |
Total | |||||||||
Balance December 31, 2020
|
$ | 854 | $ | 444 | $ | 1,298 | ||||||
Additions to nonperforming assets
|
||||||||||||
New nonaccrual loans and foreclosed properties
|
178 | 79 | 257 | |||||||||
Advances on loans
|
3 | – | 3 | |||||||||
Total additions
|
181 | 79 | 260 | |||||||||
Reductions in nonperforming assets
|
||||||||||||
Paydowns, payoffs
|
(80 | ) | (21 | ) | (101 | ) | ||||||
Net sales
|
(148 | ) | (6 | ) | (154 | ) | ||||||
Return to performing status
|
(24 | ) | (19 | ) | (43 | ) | ||||||
Charge-offs (d)
|
(52 | ) | (6 | ) | (58 | ) | ||||||
Total reductions
|
(304 | ) | (52 | ) | (356 | ) | ||||||
Net additions to (reductions in) nonperforming assets
|
(123 | ) | 27 | (96 | ) | |||||||
Balance March 31, 2021
|
$ | 731 | $ | 471 | $ | 1,202 |
(a)
|
Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due.
|
(b)
|
Excludes $1.7 billion at March 31, 2021, and $1.8 billion at December 31, 2020, of loans purchased from GNMA mortgage pools that are 90 days or more past due that continue to accrue interest, as their repayments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs.
|
(c)
|
Foreclosed GNMA loans of $29 million at March 31, 2021, and $33 million at December 31, 2020, continue to accrue interest and are recorded as other assets and excluded from nonperforming assets because they are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs.
|
(d)
|
Charge-offs exclude actions for certain card products and loan sales that were not classified as nonperforming at the time the
charge-off
occurred.
|
16
|
U.S. Bancorp |
Table 7
|
Net Charge-offs as a Percent of Average Loans Outstanding
|
Three Months Ended
March 31 |
||||||||
2021 | 2020 | |||||||
Commercial
|
||||||||
Commercial
|
.22 | % | .28 | % | ||||
Lease financing
|
.30 | .36 | ||||||
Total commercial
|
.22 | .28 | ||||||
Commercial Real Estate
|
||||||||
Commercial mortgages
|
(.17 | ) | (.01 | ) | ||||
Construction and development
|
.19 | (.04 | ) | |||||
Total commercial real estate
|
(.07 | ) | (.02 | ) | ||||
Residential Mortgages
|
(.03 | ) | .01 | |||||
Credit Card
|
2.76 | 3.95 | ||||||
Other Retail
|
||||||||
Retail leasing
|
.05 | .90 | ||||||
Home equity and second mortgages
|
(.07 | ) | .03 | |||||
Other
|
.40 | .79 | ||||||
Total other retail
|
.25 | .61 | ||||||
Total loans
|
.31 | % | .53 | % |
U.S. Bancorp |
17
|
18
|
U.S. Bancorp |
March 31,
2021 |
December 31,
2020 |
|||||||
United States unemployment rate for the three months ending (a)
|
||||||||
March 31, 2021
|
6.3 | % | 6.9 | % | ||||
June 30, 2021
|
6.0 | 7.1 | ||||||
December 31, 2021
|
5.0 | 6.8 | ||||||
United States real gross domestic product for the three months ending (b)
|
||||||||
March 31, 2021
|
(1.3 | )% | (2.1 | )% | ||||
June 30, 2021
|
.2 | (1.1 | ) | |||||
December 31, 2021
|
3.7 | 1.5 |
(a)
|
Reflects quarterly average of forecasted reported United States unemployment rate.
|
(b)
|
Reflects cumulative change from December 31, 2019.
|
Loans |
Outstanding
Commitments |
|||||||
Retail
|
3.6 | % | 5.0 | % | ||||
Energy (includes Oil and gas)
|
.9 | 2.2 | ||||||
Media and entertainment
|
1.9 | 2.2 | ||||||
Lodging
|
1.2 | .9 | ||||||
Airline
|
.3 | .5 |
U.S. Bancorp |
19
|
Table 8
|
Summary of Allowance for Credit Losses
|
Three Months Ended
March 31 |
||||||||
(Dollars in Millions) | 2021 | 2020 | ||||||
Balance at beginning of period
|
$ | 8,010 | $ | 4,491 | ||||
Change in accounting principle (a)
|
— | 1,499 | ||||||
Charge-Offs
|
||||||||
Commercial
|
||||||||
Commercial
|
80 | 81 | ||||||
Lease financing
|
6 | 7 | ||||||
Total commercial
|
86 | 88 | ||||||
Commercial real estate
|
||||||||
Commercial mortgages
|
5 | — | ||||||
Construction and development
|
5 | — | ||||||
Total commercial real estate
|
10 | — | ||||||
Residential mortgages
|
5 | 8 | ||||||
Credit card
|
190 | 274 | ||||||
Other retail
|
||||||||
Retail leasing
|
11 | 25 | ||||||
Home equity and second mortgages
|
4 | 5 | ||||||
Other
|
68 | 91 | ||||||
Total other retail
|
83 | 121 | ||||||
Total charge-offs
|
374 | 491 | ||||||
Recoveries
|
||||||||
Commercial
|
||||||||
Commercial
|
28 | 12 | ||||||
Lease financing
|
2 | 2 | ||||||
Total commercial
|
30 | 14 | ||||||
Commercial real estate
|
||||||||
Commercial mortgages
|
17 | 1 | ||||||
Construction and development
|
— | 1 | ||||||
Total commercial real estate
|
17 | 2 | ||||||
Residential mortgages
|
10 | 7 | ||||||
Credit card
|
46 | 40 | ||||||
Other retail
|
||||||||
Retail leasing
|
10 | 6 | ||||||
Home equity and second mortgages
|
6 | 4 | ||||||
Other
|
32 | 25 | ||||||
Total other retail
|
48 | 35 | ||||||
Total recoveries
|
151 | 98 | ||||||
Net Charge-Offs
|
||||||||
Commercial
|
||||||||
Commercial
|
52 | 69 | ||||||
Lease financing
|
4 | 5 | ||||||
Total commercial
|
56 | 74 | ||||||
Commercial real estate
|
||||||||
Commercial mortgages
|
(12 | ) | (1 | ) | ||||
Construction and development
|
5 | (1 | ) | |||||
Total commercial real estate
|
(7 | ) | (2 | ) | ||||
Residential mortgages
|
(5 | ) | 1 | |||||
Credit card
|
144 | 234 | ||||||
Other retail
|
||||||||
Retail leasing
|
1 | 19 | ||||||
Home equity and second mortgages
|
(2 | ) | 1 | |||||
Other
|
36 | 66 | ||||||
Total other retail
|
35 | 86 | ||||||
Total net charge-offs
|
223 | 393 | ||||||
Provision for credit losses
|
(827 | ) | 993 | |||||
Balance at end of period
|
$ | 6,960 | $ | 6,590 | ||||
Components
|
||||||||
Allowance for loan losses
|
$ | 6,343 | $ | 6,216 | ||||
Liability for unfunded credit commitments
|
617 | 374 | ||||||
Total allowance for credit losses
|
$ | 6,960 | $ | 6,590 | ||||
Allowance for Credit Losses as a Percentage of
|
||||||||
Period-end
loans
|
2.36 | % | 2.07 | % | ||||
Nonperforming loans
|
617 | 809 | ||||||
Nonperforming and accruing loans 90 days or more past due
|
434 | 473 | ||||||
Nonperforming assets
|
579 | 697 | ||||||
Annualized net charge-offs
|
770 | 417 |
(a)
|
Effective January 1, 2020, the Company adopted accounting guidance which changed impairment recognition of financial instruments to a model that is based on expected losses rather than incurred losses.
|
20
|
U.S. Bancorp |
U.S. Bancorp |
21
|
Table 9
|
Sensitivity of Net Interest Income
|
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
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
|
(3.02 | )% | 2.57 | % | * | 3.23 | % |
|
|
|
(4.48 | )% | 4.58 | % | * | 6.57 | % |
*
|
Given the level of interest rates, downward rate scenario is not computed.
|
• |
To convert fixed-rate debt and available-for-sale investment securities from fixed-rate payments to floating-rate payments;
|
• |
To convert floating-rate debt from floating-rate payments to fixed-rate payments;
|
• |
To mitigate changes in value of the Company’s unfunded mortgage loan commitments, funded MLHFS and MSRs;
|
• |
To mitigate remeasurement volatility of foreign currency denominated balances; and
|
• |
To mitigate the volatility of the Company’s net investment in foreign operations driven by fluctuations in foreign currency exchange rates.
|
22
|
U.S. Bancorp |
Three Months Ended March 31
(Dollars in Millions)
|
2021 | 2020 | ||||||
Average
|
$ | 3 | $ | 2 | ||||
High
|
4 | 3 | ||||||
Low
|
1 | 1 | ||||||
Period-end
|
2 | 3 |
U.S. Bancorp |
23
|
Three Months Ended March 31
(Dollars in Millions)
|
2021 | 2020 | ||||||
Average
|
$ | 7 | $ | 6 | ||||
High
|
9 | 7 | ||||||
Low
|
5 | 4 | ||||||
Period-end
|
9 | 7 |
Three Months Ended March 31
(Dollars in Millions)
|
2021 | 2020 | ||||||
Residential Mortgage Loans Held For Sale and Related Hedges
|
||||||||
Average
|
$ | 12 | $ | 5 | ||||
High
|
19 | 12 | ||||||
Low
|
7 | 2 | ||||||
Mortgage Servicing Rights and Related Hedges
|
||||||||
Average
|
$ | 5 | $ | 13 | ||||
High
|
11 | 34 | ||||||
Low
|
2 | 6 |
24
|
U.S. Bancorp |
U.S. Bancorp |
25
|
Table 10
|
Regulatory Capital Ratios |
(Dollars in Millions) |
March 31,
2021 |
December 31,
2020 |
||||||||
Basel III standardized approach:
|
||||||||||
Common equity tier 1 capital
|
$ | 39,103 | $ | 38,045 | ||||||
Tier 1 capital
|
45,517 | 44,474 | ||||||||
Total risk-based capital
|
53,625 | 52,602 | ||||||||
Risk-weighted assets
|
396,351 | 393,648 | ||||||||
Common equity tier 1 capital as a percent of risk-weighted assets
|
9.9 | % | 9.7 | % | ||||||
Tier 1 capital as a percent of risk-weighted assets
|
11.5 | 11.3 | ||||||||
Total risk-based capital as a percent of risk-weighted assets
|
13.5 | 13.4 | ||||||||
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio)
|
8.4 | 8.3 | ||||||||
Tier 1 capital as a percent of total
on-
and
off-balance
sheet leverage exposure (total leverage exposure ratio)
|
7.4 | 7.3 |
Period |
Total Number
of Shares Purchased |
Average
Price Paid Per Share |
Total Number of
Shares Purchased as Part of Publicly Announced Program (a) |
Approximate Dollar
Value of Shares that May Yet Be Purchased Under the Program (In Millions) |
||||||||||||
January
|
5,559,648 | (b) | $ | 44.91 | 5,194,648 | $ | 2,767 | |||||||||
February
|
5,343,085 | 49.37 | 5,343,085 | 2,503 | ||||||||||||
March
|
2,838,065 | 54.13 | 2,838,065 | 2,350 | ||||||||||||
Total
|
13,740,798 | (b) | $ | 48.55 | 13,375,798 | $ | 2,350 |
(a)
|
All shares were purchased under the $3.0 billion common stock repurchase authorization program announced December 22, 2020.
|
(b)
|
Includes 365,000 shares of common stock purchased, at an average price per share of $45.52, in open-market transactions by U.S. Bank National Association, the Company’s banking subsidiary, in its capacity as trustee of the U.S. Bank 401(k) Savings Plan, which is the Company’s employee retirement savings plan.
|
26
|
U.S. Bancorp |
U.S. Bancorp |
27
|
Table 11
|
Line of Business Financial Performance |
Corporate and
Commercial Banking
|
Consumer and
Business Banking
|
|||||||||||||||||||||||||||||
Three Month Ended March 31
(Dollars in Millions)
|
2021 | 2020 |
Percent
Change |
2021 | 2020 |
Percent
Change |
||||||||||||||||||||||||
Condensed Income Statement
|
|
|
||||||||||||||||||||||||||||
Net interest income (taxable-equivalent basis)
|
$ | 666 | $ | 784 | (15.1 | )% |
|
$ | 1,625 | $ | 1,531 | 6.1 | % |
|
||||||||||||||||
Noninterest income
|
259 | 271 | (4.4 | ) |
|
617 | 757 | (18.5 | ) |
|
||||||||||||||||||||
Total net revenue
|
925 | 1,055 | (12.3 | ) |
|
2,242 | 2,288 | (2.0 | ) |
|
||||||||||||||||||||
Noninterest expense
|
406 | 443 | (8.4 | ) |
|
1,388 | 1,336 | 3.9 |
|
|||||||||||||||||||||
Other intangibles
|
– | – | – |
|
3 | 4 | (25.0 | ) |
|
|||||||||||||||||||||
Total noninterest expense
|
406 | 443 | (8.4 | ) |
|
1,391 | 1,340 | 3.8 |
|
|||||||||||||||||||||
Income (loss) before provision and income taxes
|
519 | 612 | (15.2 | ) |
|
851 | 948 | (10.2 | ) |
|
||||||||||||||||||||
Provision for credit losses
|
(40 | ) | 424 | * |
|
(44 | ) | 123 | * |
|
||||||||||||||||||||
Income (loss) before income taxes
|
559 | 188 | * |
|
895 | 825 | 8.5 |
|
||||||||||||||||||||||
Income taxes and taxable-equivalent adjustment
|
140 | 47 | * |
|
224 | 206 | 8.7 |
|
||||||||||||||||||||||
Net income (loss)
|
419 | 141 | * |
|
671 | 619 | 8.4 |
|
||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests
|
– | – | – |
|
– | – | – |
|
||||||||||||||||||||||
Net income (loss) attributable to U.S. Bancorp
|
$ | 419 | $ | 141 | * |
|
$ | 671 | $ | 619 | 8.4 |
|
||||||||||||||||||
Average Balance Sheet
|
|
|
||||||||||||||||||||||||||||
Commercial
|
$ | 74,055 | $ | 82,167 | (9.9 | )% |
|
$ | 13,378 | $ | 8,860 | 51.0 | % |
|
||||||||||||||||
Commercial real estate
|
20,808 | 21,190 | (1.8 | ) |
|
15,151 | 16,305 | (7.1 | ) |
|
||||||||||||||||||||
Residential mortgages
|
2 | 3 | (33.3 | ) |
|
70,085 | 66,634 | 5.2 |
|
|||||||||||||||||||||
Credit card
|
– | – | – |
|
– | – | – |
|
||||||||||||||||||||||
Other retail
|
7 | 8 | (12.5 | ) |
|
54,563 | 54,919 | (.6 | ) |
|
||||||||||||||||||||
Total loans
|
94,872 | 103,368 | (8.2 | ) |
|
153,177 | 146,718 | 4.4 |
|
|||||||||||||||||||||
Goodwill
|
1,647 | 1,647 | – |
|
3,475 | 3,574 | (2.8 | ) |
|
|||||||||||||||||||||
Other intangible assets
|
5 | 7 | (28.6 | ) |
|
2,491 | 2,411 | 3.3 |
|
|||||||||||||||||||||
Assets
|
107,022 | 115,308 | (7.2 | ) |
|
175,541 | 161,886 | 8.4 |
|
|||||||||||||||||||||
Noninterest-bearing deposits
|
51,020 | 29,370 | 73.7 |
|
39,186 | 27,866 | 40.6 |
|
||||||||||||||||||||||
Interest checking
|
13,024 | 14,064 | (7.4 | ) |
|
69,785 | 53,017 | 31.6 |
|
|||||||||||||||||||||
Savings products
|
46,112 | 48,207 | (4.3 | ) |
|
80,220 | 64,189 | 25.0 |
|
|||||||||||||||||||||
Time deposits
|
8,614 | 18,386 | (53.1 | ) |
|
16,871 | 16,512 | 2.2 |
|
|||||||||||||||||||||
Total deposits
|
118,770 | 110,027 | 7.9 |
|
206,062 | 161,584 | 27.5 |
|
||||||||||||||||||||||
Total U.S. Bancorp shareholders’ equity
|
13,074 | 14,182 | (7.8 | ) |
|
|
|
13,453 | 13,422 | .2 |
|
*
|
Not meaningful
|
28
|
U.S. Bancorp |
|
Wealth Management and
Investment Services
|
Payment
Services
|
Treasury and
Corporate Support
|
Consolidated
Company
|
|||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 |
Percent
Change |
2021 | 2020 |
Percent
Change |
2021 | 2020 |
Percent
Change |
2021 | 2020 |
Percent
Change |
|||||||||||||||||||||||||||||||||||||||
$ | 204 | $ | 284 | (28.2 | )% | $ | 628 | $ | 661 | (5.0 | )% | $ | (34) | $ | (13 | ) | * | % | $ | 3,089 | $ | 3,247 | (4.9 | )% | ||||||||||||||||||||||||||
|
|
|
492 | 466 | 5.6 | 785 | 794 | (1.1 | ) | 228 | 237 | (3.8 | ) | 2,381 | 2,525 | (5.7 | ) | |||||||||||||||||||||||||||||||||
696 | 750 | (7.2 | ) | 1,413 | 1,455 | (2.9 | ) | 194 | 224 | (13.4 | ) | 5,470 | 5,772 | (5.2 | ) | |||||||||||||||||||||||||||||||||||
459 | 449 | 2.2 | 782 | 754 | 3.7 | 306 | 292 | 4.8 | 3,341 | 3,274 | 2.0 | |||||||||||||||||||||||||||||||||||||||
|
|
|
2 | 3 | (33.3 | ) | 33 | 35 | (5.7 | ) | – | – | – | 38 | 42 | (9.5 | ) | |||||||||||||||||||||||||||||||||
|
|
|
461 | 452 | 2.0 | 815 | 789 | 3.3 | 306 | 292 | 4.8 | 3,379 | 3,316 | 1.9 | ||||||||||||||||||||||||||||||||||||
235 | 298 | (21.1 | ) | 598 | 666 | (10.2 | ) | (112 | ) | (68 | ) | (64.7 | ) | 2,091 | 2,456 | (14.9 | ) | |||||||||||||||||||||||||||||||||
|
|
|
7 | 23 | (69.6 | ) | (41 | ) | 262 | * | (709 | ) | 161 | * | (827 | ) | 993 | * | ||||||||||||||||||||||||||||||||
228 | 275 | (17.1 | ) | 639 | 404 | 58.2 | 597 | (229 | ) | * | 2,918 | 1,463 | 99.5 | |||||||||||||||||||||||||||||||||||||
|
|
|
57 | 69 | (17.4 | ) | 160 | 101 | 58.4 | 52 | (139 | ) | * | 633 | 284 | * | ||||||||||||||||||||||||||||||||||
171 | 206 | (17.0 | ) | 479 | 303 | 58.1 | 545 | (90 | ) | * | 2,285 | 1,179 | 93.8 | |||||||||||||||||||||||||||||||||||||
|
|
|
– | – | – | – | – | – | (5 | ) | (8 | ) | 37.5 | (5 | ) | (8 | ) | 37.5 | ||||||||||||||||||||||||||||||||
|
|
|
$ | 171 | $ | 206 | (17.0 | ) | $ | 479 | $ | 303 | 58.1 | $ | 540 | $ | (98 | ) | * | $ | 2,280 | $ | 1,171 | 94.7 | ||||||||||||||||||||||||||
$ | 4,838 | $ | 4,189 | 15.5 | % | $ | 8,266 | $ | 9,543 | (13.4 | )% | $ | 1,554 | $ | 1,228 | 26.5 | % | $ | 102,091 | $ | 105,987 | (3.7 | )% | |||||||||||||||||||||||||||
514 | 536 | (4.1 | ) | – | – | – | 2,313 | 2,047 | 13.0 | 38,786 | 40,078 | (3.2 | ) | |||||||||||||||||||||||||||||||||||||
5,114 | 4,255 | 20.2 | – | – | – | – | – | – | 75,201 | 70,892 | 6.1 | |||||||||||||||||||||||||||||||||||||||
– | – | – | 21,144 | 23,836 | (11.3 | ) | – | – | – | 21,144 | 23,836 | (11.3 | ) | |||||||||||||||||||||||||||||||||||||
|
|
|
1,977 | 1,628 | 21.4 | 220 | 309 | (28.8 | ) | – | – | – | 56,767 | 56,864 | (.2 | ) | ||||||||||||||||||||||||||||||||||
12,443 | 10,608 | 17.3 | 29,630 | 33,688 | (12.0 | ) | 3,867 | 3,275 | 18.1 | 293,989 | 297,657 | (1.2 | ) | |||||||||||||||||||||||||||||||||||||
1,619 | 1,617 | .1 | 3,173 | 2,856 | 11.1 | – | – | – | 9,914 | 9,694 | 2.3 | |||||||||||||||||||||||||||||||||||||||
42 | 44 | (4.5 | ) | 544 | 557 | (2.3 | ) | – | – | – | 3,082 | 3,019 | 2.1 | |||||||||||||||||||||||||||||||||||||
15,662 | 13,950 | 12.3 | 35,095 | 38,285 | (8.3 | ) | 215,414 | 165,378 | 30.3 | 548,734 | 494,807 | 10.9 | ||||||||||||||||||||||||||||||||||||||
20,277 | 13,232 | 53.2 | 5,264 | 1,471 | * | 2,605 | 2,203 | 18.2 | 118,352 | 74,142 | 59.6 | |||||||||||||||||||||||||||||||||||||||
13,829 | 10,027 | 37.9 | – | – | – | 747 | 251 | * | 97,385 | 77,359 | 25.9 | |||||||||||||||||||||||||||||||||||||||
56,398 | 56,646 | (.4 | ) | 132 | 112 | 17.9 | 811 | 840 | (3.5 | ) | 183,673 | 169,994 | 8.0 | |||||||||||||||||||||||||||||||||||||
|
|
|
1,402 | 2,169 | (35.4 | ) | – | 2 | * | 67 | 4,240 | (98.4 | ) | 26,954 | 41,309 | (34.8 | ) | |||||||||||||||||||||||||||||||||
91,906 | 82,074 | 12.0 | 5,396 | 1,585 | * | 4,230 | 7,534 | (43.9 | ) | 426,364 | 362,804 | 17.5 | ||||||||||||||||||||||||||||||||||||||
|
|
|
2,634 | 2,571 | 2.5 | 7,480 | 7,619 | (1.8 | ) | 16,088 | 13,352 | 20.5 | 52,729 | 51,146 | 3.1 |
U.S. Bancorp |
29
|
• |
Tangible common equity to tangible assets,
|
• |
Tangible common equity to risk-weighted assets, and
|
• |
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the CECL methodology.
|
30
|
U.S. Bancorp |
(Dollars in Millions) |
March 31,
2021 |
December 31,
2020 |
||||||
Total equity
|
$ | 52,308 | $ | 53,725 | ||||
Preferred stock
|
(5,968 | ) | (5,983 | ) | ||||
Noncontrolling interests
|
(630 | ) | (630 | ) | ||||
Goodwill (net of deferred tax liability) (1)
|
(8,992 | ) | (9,014 | ) | ||||
Intangible assets, other than mortgage servicing rights
|
(675 | ) | (654 | ) | ||||
Tangible common equity (a)
|
36,043 | 37,444 | ||||||
Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements related to the CECL methodology implementation
|
39,103 | 38,045 | ||||||
Adjustments (2)
|
(1,732 | ) | (1,733 | ) | ||||
Common equity tier 1 capital, reflecting the full implementation of the CECL methodology (b)
|
37,371 | 36,312 | ||||||
Total assets
|
553,375 | 553,905 | ||||||
Goodwill (net of deferred tax liability) (1)
|
(8,992 | ) | (9,014 | ) | ||||
Intangible assets, other than mortgage servicing rights
|
(675 | ) | (654 | ) | ||||
Tangible assets (c)
|
543,708 | 544,237 | ||||||
Risk-weighted assets, determined in accordance with prescribed regulatory capital requirements effective for the Company (d)
|
396,351 | 393,648 | ||||||
Adjustments (3)
|
(1,440 | ) | (1,471 | ) | ||||
Risk-weighted assets, reflecting the full implementation of the CECL methodology (e)
|
394,911 | 392,177 | ||||||
Ratios
|
||||||||
Tangible common equity to tangible assets (a)/(c)
|
6.6 | % | 6.9 | % | ||||
Tangible common equity to risk-weighted assets (a)/(d)
|
9.1 | 9.5 | ||||||
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the CECL methodology (b)/(e)
|
9.5 | 9.3 |
Three Months Ended
March 31 |
||||||||
2021 | 2020 | |||||||
Net interest income
|
$ | 3,063 | $ | 3,223 | ||||
Taxable-equivalent adjustment (4)
|
26 | 24 | ||||||
Net interest income, on a taxable-equivalent basis
|
3,089 | 3,247 | ||||||
Net interest income, on a taxable-equivalent basis (as calculated above)
|
3,089 | 3,247 | ||||||
Noninterest income
|
2,381 | 2,525 | ||||||
Less: Securities gains (losses), net
|
25 | 50 | ||||||
Total net revenue, excluding net securities gains (losses) (f)
|
5,445 | 5,722 | ||||||
Noninterest expense (g)
|
3,379 | 3,316 | ||||||
Efficiency ratio (g)/(f)
|
62.1 | % | 58.0 | % |
(1)
|
Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.
|
(2)
|
Includes the estimated increase in the allowance for credit losses related to the adoption of the CECL methodology net of deferred taxes.
|
(3)
|
Includes the impact of the estimated increase in the allowance for credit losses related to the adoption of the CECL methodology.
|
(4)
|
Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.
|
U.S. Bancorp |
31
|
32
|
U.S. Bancorp |
(Dollars in Millions) |
March 31,
2021 |
December 31,
2020 |
||
(Unaudited) | ||||
Assets
|
||||
Cash and due from banks
|
$ 43,501 | $ 62,580 | ||
Available-for-sale
|
156,003 | 136,840 | ||
Loans held for sale (including $8,869 and $8,524 of mortgage loans carried at fair value, respectively)
|
8,991 | 8,761 | ||
Loans
|
||||
Commercial
|
104,158 | 102,871 | ||
Commercial real estate
|
38,432 | 39,311 | ||
Residential mortgages
|
73,624 | 76,155 | ||
Credit card
|
20,872 | 22,346 | ||
Other retail
|
57,341 | 57,024 | ||
Total loans
|
294,427 | 297,707 | ||
Less allowance for loan losses
|
(6,343) | (7,314) | ||
Net loans
|
288,084 | 290,393 | ||
Premises and equipment
|
3,388 | 3,468 | ||
Goodwill
|
9,905 | 9,918 | ||
Other intangible assets
|
3,462 | 2,864 | ||
Other assets (including $1,313 and $1,255 of trading securities at fair value pledged as collateral, respectively) (a)
|
40,041 | 39,081 | ||
Total assets
|
$553,375 | $553,905 | ||
Liabilities and Shareholders’ Equity
|
||||
Deposits
|
||||
Noninterest-bearing
|
$126,754 | $118,089 | ||
Interest-bearing (b)
|
307,007 | 311,681 | ||
Total deposits
|
433,761 | 429,770 | ||
Short-term borrowings
|
12,098 | 11,766 | ||
Long-term debt
|
37,419 | 41,297 | ||
Other liabilities
|
17,789 | 17,347 | ||
Total liabilities
|
501,067 | 500,180 | ||
Shareholders’ equity
|
||||
Preferred stock
|
5,968 | 5,983 | ||
Common stock, par value $0.01 a share—authorized: 4,000,000,000 shares; issued: 3/31/21 and 12/31/20—2,125,725,742 shares
|
21 | 21 | ||
Capital surplus
|
8,487 | 8,511 | ||
Retained earnings
|
65,740 | 64,188 | ||
Less cost of common stock in treasury: 3/31/21—628,716,254 shares; 12/31/20—618,618,084 shares
|
(26,443) | (25,930) | ||
Accumulated other comprehensive income (loss)
|
(2,095) | 322 | ||
Total U.S. Bancorp shareholders’ equity
|
51,678 | 53,095 | ||
Noncontrolling interests
|
630 | 630 | ||
Total equity
|
52,308 | 53,725 | ||
Total liabilities and equity
|
$553,375 | $553,905 |
(a)
|
Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.
|
(b)
|
Includes
time deposits greater than $250,000 balances of $3.1 billion and $4.4 billion at March 31, 2021 and December 31, 2020, respectively.
|
U.S. Bancorp |
33
|
(Dollars and Shares in Millions, Except Per Share Data)
(Unaudited)
|
Three Months Ended
March 31 |
|||||||
2021 | 2020 | |||||||
Interest Income
|
||||||||
Loans
|
$2,724 | $3,311 | ||||||
Loans held for sale
|
67 | 44 | ||||||
Investment securities
|
517 | 692 | ||||||
Other interest income
|
33 | 69 | ||||||
Total interest income
|
3,341 | 4,116 | ||||||
Interest Expense
|
||||||||
Deposits
|
85 | 525 | ||||||
Short-term borrowings
|
16 | 71 | ||||||
Long-term debt
|
177 | 297 | ||||||
Total interest expense
|
278 | 893 | ||||||
Net interest income
|
3,063 | 3,223 | ||||||
Provision for credit losses
|
(827 | ) | 993 | |||||
Net interest income after provision for credit losses
|
3,890 | 2,230 | ||||||
Noninterest Income
|
||||||||
Credit and debit card revenue
|
336 | 304 | ||||||
Corporate payment products revenue
|
126 | 145 | ||||||
Merchant processing services
|
318 | 337 | ||||||
Trust and investment management fees
|
444 | 427 | ||||||
Deposit service charges
|
161 | 209 | ||||||
Treasury management fees
|
147 | 143 | ||||||
Commercial products revenue
|
280 | 246 | ||||||
Mortgage banking revenue
|
299 | 395 | ||||||
Investment products fees
|
55 | 49 | ||||||
Securities gains (losses), net
|
25 | 50 | ||||||
Other
|
190 | 220 | ||||||
Total noninterest income
|
2,381 | 2,525 | ||||||
Noninterest Expense
|
||||||||
Compensation
|
1,803 | 1,620 | ||||||
Employee benefits
|
384 | 352 | ||||||
Net occupancy and equipment
|
263 | 276 | ||||||
Professional services
|
98 | 99 | ||||||
Marketing and business development
|
48 | 74 | ||||||
Technology and communications
|
359 | 289 | ||||||
Postage, printing and supplies
|
69 | 72 | ||||||
Other intangibles
|
38 | 42 | ||||||
Other
|
317 | 492 | ||||||
Total noninterest expense
|
3,379 | 3,316 | ||||||
Income before income taxes
|
2,892 | 1,439 | ||||||
Applicable income taxes
|
607 | 260 | ||||||
Net income
|
2,285 | 1,179 | ||||||
Net (income) loss attributable to noncontrolling interests
|
(5 | ) | (8 | ) | ||||
Net income attributable to U.S. Bancorp
|
$2,280 | $1,171 | ||||||
Net income applicable to U.S. Bancorp common shareholders
|
$2,175 | $1,088 | ||||||
Earnings per common share
|
$ 1.45 | $ .72 | ||||||
Diluted earnings per common share
|
$ 1.45 | $ .72 | ||||||
Average common shares outstanding
|
1,502 | 1,518 | ||||||
Average diluted common shares outstanding
|
1,503 | 1,519 |
34 | U.S. Bancorp |
(Dollars in Millions)
(Unaudited)
|
Three Months Ended
March 31 |
|||||||
2021 | 2020 | |||||||
Net income
|
$ | 2,285 | $1,179 | |||||
Other Comprehensive Income (Loss)
|
||||||||
Changes in unrealized gains and losses on investment securities
available-for-sale
|
(3,378 | ) | 2,787 | |||||
Changes in unrealized gains and losses on derivative hedges
|
99 | (257 | ) | |||||
Foreign currency translation
|
25 | (13 | ) | |||||
Reclassification to earnings of realized gains and losses
|
18 | (6 | ) | |||||
Income taxes related to other comprehensive income (loss)
|
819 | (635 | ) | |||||
Total other comprehensive income (loss)
|
(2,417 | ) | 1,876 | |||||
Comprehensive income (loss)
|
(132 | ) | 3,055 | |||||
Comprehensive (income) loss attributable to noncontrolling interests
|
(5 | ) | (8 | ) | ||||
Comprehensive income (loss) attributable to U.S. Bancorp
|
$ | (137 | ) | $3,047 |
U.S. Bancorp | 35 |
U.S. Bancorp Shareholders | ||||||||||||||||||||||||||||||||||||||||
(Dollars and Shares in Millions, Except Per
Share Data) (Unaudited) |
Common Shares
Outstanding |
Preferred
Stock |
Common
Stock |
Capital
Surplus |
Retained
Earnings |
Treasury
Stock |
Accumulated
Other Comprehensive Income (Loss) |
Total
U.S. Bancorp Shareholders’ Equity |
Noncontrolling
Interests |
Total
Equity |
||||||||||||||||||||||||||||||
Balance December 31, 2019
|
1,534 | $ | 5,984 | $ | 21 | $ | 8,475 | $ | 63,186 | $ | (24,440 | ) | $ | (1,373 | ) | $ | 51,853 | $ | 630 | $ | 52,483 | |||||||||||||||||||
Change in accounting principle (a)
|
(1,099 | ) | (1,099 | ) | (1,099 | ) | ||||||||||||||||||||||||||||||||||
Net income (loss)
|
1,171 | 1,171 | 8 | 1,179 | ||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss)
|
1,876 | 1,876 | 1,876 | |||||||||||||||||||||||||||||||||||||
Preferred stock dividends (b)
|
(78 | ) | (78 | ) | (78 | ) | ||||||||||||||||||||||||||||||||||
Common stock dividends ($.42 per share)
|
(636 | ) | (636 | ) | (636 | ) | ||||||||||||||||||||||||||||||||||
Issuance of common and treasury stock
|
3 | (108 | ) | 117 | 9 | 9 | ||||||||||||||||||||||||||||||||||
Purchase of treasury stock
|
(31 | ) | (1,649 | ) | (1,649 | ) | (1,649 | ) | ||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests
|
— | (8 | ) | (8 | ) | |||||||||||||||||||||||||||||||||||
Stock option and restricted stock grants
|
|
|
|
|
|
|
|
|
|
85 |
|
|
|
|
|
|
|
|
|
85 |
|
|
|
85 | ||||||||||||||||
Balance March 31, 2020
|
1,506 | $ | 5,984 | $ | 21 | $ | 8,452 | $ | 62,544 | $ | (25,972 | ) | $ | 503 | $ | 51,532 | $ | 630 | $ | 52,162 | ||||||||||||||||||||
Balance December 31, 2020
|
1,507 | $ | 5,983 | $ | 21 | $ | 8,511 | $ | 64,188 | $ | (25,930 | ) | $ | 322 | $ | 53,095 | $ | 630 | $ | 53,725 | ||||||||||||||||||||
Net income (loss)
|
2,280 | 2,280 | 5 | 2,285 | ||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss)
|
(2,417 | ) | (2,417 | ) | (2,417 | ) | ||||||||||||||||||||||||||||||||||
Preferred stock dividends (c)
|
(90 | ) | (90 | ) | (90 | ) | ||||||||||||||||||||||||||||||||||
Common stock dividends ($.42 per share)
|
(633 | ) | (633 | ) | (633 | ) | ||||||||||||||||||||||||||||||||||
Issuance of preferred stock
|
730 | 730 | 730 | |||||||||||||||||||||||||||||||||||||
Call of preferred stock
|
(745 | ) | (5 | ) | (750 | ) | (750 | ) | ||||||||||||||||||||||||||||||||
Issuance of common and treasury stock
|
3 | (119 | ) | 137 | 18 | 18 | ||||||||||||||||||||||||||||||||||
Purchase of treasury stock
|
(13 | ) | (650 | ) | (650 | ) | (650 | ) | ||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests
|
— | (5 | ) | (5 | ) | |||||||||||||||||||||||||||||||||||
Stock option and restricted stock grants
|
|
|
|
|
|
|
|
|
|
95 |
|
|
|
|
|
|
|
|
|
95 |
|
|
|
95 | ||||||||||||||||
Balance March 31, 2021
|
1,497 | $ | 5,968 | $ | 21 | $ | 8,487 | $ | 65,740 | $ | (26,443 | ) | $ | (2,095 | ) | $ | 51,678 | $ | 630 | $ | 52,308 |
(a)
|
Effective January 1, 2020, the Company adopted accounting guidance which changed impairment recognition of financial instruments to a model that is based on expected losses rather than incurred losses. Upon adoption, the Company increased its allowance for credit losses and reduced retained earnings net of deferred taxes through a cumulative-effect adjustment.
|
(b)
|
Reflects dividends declared per share on the Company’s Series A, Series B, Series F, Series H, Series J and Series K
Non-Cumulative
Perpetual Preferred Stock of $884.722, $221.18, $406.25, $321.88, $662.50 and $343.75, respectively.
|
(c)
|
Reflects dividends declared per share on the Company’s Series A, Series B, Series F, Series I, Series J, Series K, Series L and Series M
Non-Cumulative
Perpetual Preferred Stock of $875.00, $218.75, $406.25, $232.953, $662.50, $343.75, $234.375, and $202.778 respectively.
|
36 | U.S. Bancorp |
(Dollars in Millions)
(Unaudited)
|
Three Months Ended
March 31 |
|||||||
2021 | 2020 | |||||||
Operating Activities
|
||||||||
Net income attributable to U.S. Bancorp
|
$ | 2,280 | $ | 1,171 | ||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Provision for credit losses
|
(827 | ) | 993 | |||||
Depreciation and amortization of premises and equipment
|
84 | 87 | ||||||
Amortization of intangibles
|
38 | 42 | ||||||
(Gain) loss on sale of loans held for sale
|
(213 | ) | (303 | ) | ||||
(Gain) loss on sale of securities and other assets
|
(66 | ) | (120 | ) | ||||
Loans originated for sale, net of repayments
|
(20,928 | ) | (10,882 | ) | ||||
Proceeds from sales of loans held for sale
|
20,397 | 12,032 | ||||||
Other, net
|
172 | (666 | ) | |||||
Net cash provided by operating activities
|
937 | 2,354 | ||||||
Investing Activities
|
||||||||
Proceeds from sales of
available-for-sale
|
1,062 | 9,916 | ||||||
Proceeds from maturities of
available-for-sale
|
12,550 | 5,649 | ||||||
Purchases of
available-for-sale
|
(36,182 | ) | (14,937 | ) | ||||
Net decrease (increase) in loans outstanding
|
3,562 | (22,272 | ) | |||||
Proceeds from sales of loans
|
1,062 | 575 | ||||||
Purchases of loans
|
(1,600 | ) | (893 | ) | ||||
Net (increase) decrease in securities purchased under agreements to resell
|
(26 | ) | 788 | |||||
Other, net
|
106 | (1,085 | ) | |||||
Net cash used in investing activities
|
(19,466 | ) | (22,259 | ) | ||||
Financing Activities
|
||||||||
Net increase in deposits
|
3,991 | 32,938 | ||||||
Net increase in short-term borrowings
|
332 | 2,621 | ||||||
Proceeds from issuance of long-term debt
|
69 | 11,271 | ||||||
Principal payments or redemption of long-term debt
|
(3,830 | ) | (156 | ) | ||||
Proceeds from issuance of preferred stock
|
730 | – | ||||||
Proceeds from issuance of common stock
|
17 | 9 | ||||||
Repurchase of preferred stock
|
(500 | ) | – | |||||
Repurchase of common stock
|
(646 | ) | (1,660 | ) | ||||
Cash dividends paid on preferred stock
|
(76 | ) | (71 | ) | ||||
Cash dividends paid on common stock
|
(637 | ) | (647 | ) | ||||
Net cash (used in) provided by financing activities
|
(550 | ) | 44,305 | |||||
Change in cash and due from banks
|
(19,079 | ) | 24,400 | |||||
Cash and due from banks at beginning of period
|
62,580 | 22,405 | ||||||
Cash and due from banks at end of period
|
$ | 43,501 | $ | 46,805 |
U.S. Bancorp | 37 |
Note 1
|
Basis of Presentation |
Note 2
|
|
Accounting Changes
|
Note 3
|
Investment Securities
|
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||
(Dollars in Millions) |
Amortized
Cost |
Unrealized
Gains |
Unrealized
Losses |
Fair
Value
|
Amortized
Cost |
Unrealized
Gains |
Unrealized
Losses |
Fair Value | ||||||||||||||||||||||||
U.S. Treasury and agencies
|
$ | 24,401 | $ | 288 | $ | (372 | ) | $ | 24,317 | $ | 21,954 | $ | 462 | $ | (25 | ) | $ | 22,391 | ||||||||||||||
Mortgage-backed securities
|
|
|||||||||||||||||||||||||||||||
Residential agency
|
116,629 | 1,230 | (1,683 | ) | 116,176 | 98,031 | 1,950 | (13 | ) | 99,968 | ||||||||||||||||||||||
Commercial agency
|
6,254 | 53 | (221 | ) | 6,086 | 5,251 | 170 | (15 | ) | 5,406 | ||||||||||||||||||||||
Asset-backed securities
|
197 | 5 | – | 202 | 200 | 5 | – | 205 | ||||||||||||||||||||||||
Obligations of state and political subdivisions
|
8,687 | 546 | (18 | ) | 9,215 | 8,166 | 695 | – | 8,861 | |||||||||||||||||||||||
Other
|
7 | – | – | 7 | 9 | – | – | 9 | ||||||||||||||||||||||||
Total
available-for-sale
|
$ | 156,175 | $ | 2,122 | $ | (2,294 | ) | $ | 156,003 | $ | 133,611 | $ | 3,282 | $ | (53 | ) | $ | 136,840 |
38 | U.S. Bancorp |
Three Months Ended
March 31 |
||||||||
(Dollars in Millions) | 2021 | 2020 | ||||||
Taxable
|
$ | 455 | $ | 640 | ||||
Non-taxable
|
62 | 52 | ||||||
Total interest income from investment securities
|
$ | 517 | $ | 692 |
Three Months Ended
March 31 |
||||||||
(Dollars in Millions) | 2021 | 2020 | ||||||
Realized gains
|
$ | 25 | $ | 73 | ||||
Realized losses
|
– | (23 | ) | |||||
Net realized gains
|
$ | 25 | $ | 50 | ||||
Income tax on net realized gains
|
$ | 6 | $ | 13 |
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
|
$ | 9,519 | $ | (372 | ) | $ | – | $ | – | $ | 9,519 | $ | (372 | ) | ||||||||||
Residential agency mortgage-backed securities
|
59,916 | (1,678 | ) | 150 | (5 | ) | 60,066 | (1,683 | ) | |||||||||||||||
Commercial agency mortgage-backed securities
|
4,130 | (221 | ) | 6 | – | 4,136 | (221 | ) | ||||||||||||||||
Asset-backed securities
|
– | – | 2 | – | 2 | – | ||||||||||||||||||
Obligations of state and political subdivisions
|
1,037 | (18 | ) | – | – | 1,037 | (18 | ) | ||||||||||||||||
Total investment securities
|
$ | 74,602 | $ | (2,289 | ) | $ | 158 | $ | (5 | ) | $ | 74,760 | $ | (2,294 | ) |
U.S. Bancorp | 39 |
(Dollars in Millions) |
Amortized
Cost |
Fair Value |
Weighted-
Average Maturity in Years |
Weighted-
Average Yield (e) |
||||||||||||
U.S. Treasury and Agencies
|
||||||||||||||||
Maturing in one year or less
|
$ | 4,264 | $ | 4,292 | .4 | 1.54 | % | |||||||||
Maturing after one year through five years
|
11,534 | 11,694 | 2.6 | 1.15 | ||||||||||||
Maturing after five years through ten years
|
7,364 | 7,150 | 8.1 | 1.33 | ||||||||||||
Maturing after ten years
|
1,239 | 1,181 | 13.0 | 1.78 | ||||||||||||
Total
|
$ | 24,401 | $ | 24,317 | 4.4 | 1.31 | % | |||||||||
Mortgage-Backed Securities (a)
|
||||||||||||||||
Maturing in one year or less
|
$ | 110 | $ | 112 | .6 | 2.07 | % | |||||||||
Maturing after one year through five years
|
47,936 | 49,021 | 3.6 | 1.40 | ||||||||||||
Maturing after five years through ten years
|
74,785 | 73,077 | 7.8 | 1.46 | ||||||||||||
Maturing after ten years
|
52 | 52 | 11.9 | 1.13 | ||||||||||||
Total
|
$ | 122,883 | $ | 122,262 | 6.1 | 1.44 | % | |||||||||
Asset-Backed Securities (a)
|
||||||||||||||||
Maturing in one year or less
|
$ | – | $ | – | .9 | 2.69 | % | |||||||||
Maturing after one year through five years
|
3 | 4 | 2.9 | 1.74 | ||||||||||||
Maturing after five years through ten years
|
194 | 197 | 6.0 | 1.08 | ||||||||||||
Maturing after ten years
|
– | 1 | 13.6 | 2.41 | ||||||||||||
Total
|
$ | 197 | $ | 202 | 5.9 | 1.09 | % | |||||||||
Obligations of State and Political Subdivisions (b) (c)
|
||||||||||||||||
Maturing in one year or less
|
$ | 178 | $ | 182 | .7 | 4.21 | % | |||||||||
Maturing after one year through five years
|
1,451 | 1,539 | 3.5 | 4.39 | ||||||||||||
Maturing after five years through ten years
|
6,624 | 7,066 | 6.9 | 3.86 | ||||||||||||
Maturing after ten years
|
434 | 428 | 17.4 | 2.57 | ||||||||||||
Total
|
$ | 8,687 | $ | 9,215 | 6.7 | 3.89 | % | |||||||||
Other
|
||||||||||||||||
Maturing in one year or less
|
$ | 7 | $ | 7 | .1 | 2.07 | % | |||||||||
Maturing after one year through five years
|
– | – | – | – | ||||||||||||
Maturing after five years through ten years
|
– | – | – | – | ||||||||||||
Maturing after ten years
|
– | – | – | – | ||||||||||||
Total
|
$ | 7 | $ | 7 | .1 | 2.07 | % | |||||||||
Total investment securities (d)
|
$ | 156,175 | $ | 156,003 | 5.9 | 1.55 | % |
(a)
|
Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments.
|
(b)
|
Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount.
|
(c)
|
Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par.
|
(d)
|
The weighted-average maturity of total
available-for-sale
|
(e)
|
Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. Yields on investment securities are computed based on amortized cost balances.
|
40 | U.S. Bancorp |
Note 4
|
Loans and Allowance for Credit Losses
|
March 31, 2021 | December 31, 2020 | |||||||||||||||||||
(Dollars in Millions) | Amount |
Percent
of Total |
Amount |
Percent
of Total |
||||||||||||||||
Commercial
|
|
|||||||||||||||||||
Commercial
|
$ | 98,847 | 33.6 | % |
|
$ | 97,315 | 32.7 | % | |||||||||||
Lease financing
|
5,311 | 1.8 |
|
|
|
5,556 | 1.9 | |||||||||||||
Total commercial
|
104,158 | 35.4 |
|
102,871 | 34.6 | |||||||||||||||
Commercial Real Estate
|
|
|||||||||||||||||||
Commercial mortgages
|
27,649 | 9.4 |
|
28,472 | 9.6 | |||||||||||||||
Construction and development
|
10,783 | 3.6 |
|
|
|
10,839 | 3.6 | |||||||||||||
Total commercial real estate
|
38,432 | 13.0 |
|
39,311 | 13.2 | |||||||||||||||
Residential Mortgages
|
|
|||||||||||||||||||
Residential mortgages
|
64,238 | 21.8 |
|
66,525 | 22.4 | |||||||||||||||
Home equity loans, first liens
|
9,386 | 3.2 |
|
|
|
9,630 | 3.2 | |||||||||||||
Total residential mortgages
|
73,624 | 25.0 |
|
76,155 | 25.6 | |||||||||||||||
Credit Card
|
20,872 | 7.1 |
|
22,346 | 7.5 | |||||||||||||||
Other Retail
|
|
|||||||||||||||||||
Retail leasing
|
7,880 | 2.7 |
|
8,150 | 2.7 | |||||||||||||||
Home equity and second mortgages
|
11,679 | 4.0 |
|
12,472 | 4.2 | |||||||||||||||
Revolving credit
|
2,536 | .9 |
|
2,688 | .9 | |||||||||||||||
Installment
|
14,562 | 4.9 |
|
13,823 | 4.6 | |||||||||||||||
Automobile
|
20,527 | 7.0 |
|
19,722 | 6.6 | |||||||||||||||
Student
|
157 | – |
|
|
|
169 | .1 | |||||||||||||
Total other retail
|
57,341 | 19.5 |
|
|
|
57,024 | 19.1 | |||||||||||||
Total loans
|
$ | 294,427 | 100.0 | % |
|
|
|
$ | 297,707 | 100.0 | % |
U.S. Bancorp | 41 |
42 | U.S. Bancorp |
(Dollars in Millions) | Commercial |
Commercial
Real Estate |
Residential
Mortgages |
Credit
Card |
Other
Retail |
Total
Loans |
||||||||||||||||||
Balance at December 31, 2020
|
$ | 2,423 | $ | 1,544 | $ | 573 | $ | 2,355 | $ | 1,115 | $ | 8,010 | ||||||||||||
Add
|
||||||||||||||||||||||||
Provision for credit losses
|
(435 | ) | (19 | ) | (39 | ) | (259 | ) | (75 | ) | (827 | ) | ||||||||||||
Deduct
|
||||||||||||||||||||||||
Loans
charged-off
|
86 | 10 | 5 | 190 | 83 | 374 | ||||||||||||||||||
Less recoveries of loans
charged-off
|
(30 | ) | (17 | ) | (10 | ) | (46 | ) | (48 | ) | (151 | ) | ||||||||||||
Net loan charge-offs (recoveries
)
|
56 | (7 | ) | (5 | ) | 144 | 35 | 223 | ||||||||||||||||
Balance at March 31, 2021
|
$ | 1,932 | $ | 1,532 | $ | 539 | $ | 1,952 | $ | 1,005 | $ | 6,960 | ||||||||||||
Balance at December 31, 2019
|
$ | 1,484 | $ | 799 | $ | 433 | $ | 1,128 | $ | 647 | $ | 4,491 | ||||||||||||
Add
|
||||||||||||||||||||||||
Change in accounting principle (a)
|
378 | (122 | ) | (30 | ) | 872 | 401 | 1,499 | ||||||||||||||||
Provision for credit losses
|
452 | 162 | 10 | 246 | 123 | 993 | ||||||||||||||||||
Deduct
|
||||||||||||||||||||||||
Loans
charged-off
|
88 | – | 8 | 274 | 121 | 491 | ||||||||||||||||||
Less recoveries of loans
charged-off
|
(14 | ) | (2 | ) | (7 | ) | (40 | ) | (35 | ) | (98 | ) | ||||||||||||
Net loan charge-offs (recoveries
)
|
74 | (2 | ) | 1 | 234 | 86 | 393 | |||||||||||||||||
Balance at March 31, 2020
|
$ | 2,240 | $ | 841 | $ | 412 | $ | 2,012 | $ | 1,085 | $ | 6,590 |
(a)
|
Effective January 1, 2020, the Company adopted accounting guidance which changed impairment recognition of financial instruments to a model that is based on expected losses rather than incurred losses.
|
U.S. Bancorp |
43
|
Accruing | ||||||||||||||||||||
(Dollars in Millions) | Current |
30-89 Days
Past Due |
90 Days or
More Past Due |
Nonperforming (b) | Total | |||||||||||||||
March 31, 2021
|
||||||||||||||||||||
Commercial
|
$ | 103,557 | $ | 193 | $ | 61 | $ | 347 | $ | 104,158 | ||||||||||
Commercial real estate
|
37,953 | 119 | 4 | 356 | 38,432 | |||||||||||||||
Residential mortgages (a)
|
73,024 | 204 | 143 | 253 | 73,624 | |||||||||||||||
Credit card
|
20,486 | 188 | 198 | – | 20,872 | |||||||||||||||
Other retail
|
56,878 | 221 | 70 | 172 | 57,341 | |||||||||||||||
Total loans
|
$ | 291,898 | $ | 925 | $ | 476 | $ | 1,128 | $ | 294,427 | ||||||||||
December 31, 2020
|
||||||||||||||||||||
Commercial
|
$ | 102,127 | $ | 314 | $ | 55 | $ | 375 | $ | 102,871 | ||||||||||
Commercial real estate
|
38,676 | 183 | 2 | 450 | 39,311 | |||||||||||||||
Residential mortgages (a)
|
75,529 | 244 | 137 | 245 | 76,155 | |||||||||||||||
Credit card
|
21,918 | 231 | 197 | – | 22,346 | |||||||||||||||
Other retail
|
56,466 | 318 | 86 | 154 | 57,024 | |||||||||||||||
Total loans
|
$ | 294,716 | $ | 1,290 | $ | 477 | $ | 1,224 | $ | 297,707 |
(a)
|
At March 31, 2021, $1.5 billion of loans 30–89 days past due and $1.7 billion of loans 90 days or more past due purchased from Government National Mortgage Association (“GNMA”) mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current, compared with $1.4 billion and $1.8 billion at December 31, 2020, respectively.
|
(b)
|
Substantially all nonperforming loans at March 31, 2021 and December 31, 2020, had an associated allowance for credit losses. The Company recognized interest income on nonperforming loans of $3 million and $5 million for the three months ended March 31, 2021 and 2020, respectively.
|
44 | U.S. Bancorp |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||
Criticized | Criticized | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Pass |
Special
Mention
|
Classified (a) |
Total
Criticized |
Total | Pass |
Special
Mention |
Classified (a) |
Total
Criticized |
Total | ||||||||||||||||||||||||||||||||||
Commercial
|
|
|||||||||||||||||||||||||||||||||||||||||||
Originated in 2021
|
$ | 12,604 | $ | 313 | $ | 218 | $ | 531 | $ | 13,135 |
|
$ | – | $ | – | $ | – | $ | – | $ | – | |||||||||||||||||||||||
Originated in 2020
|
28,890 | 1,003 | 1,302 | 2,305 | 31,195 |
|
34,557 | 1,335 | 1,753 | 3,088 | 37,645 | |||||||||||||||||||||||||||||||||
Originated in 2019
|
15,710 | 351 | 223 | 574 | 16,284 |
|
17,867 | 269 | 349 | 618 | 18,485 | |||||||||||||||||||||||||||||||||
Originated in 2018
|
10,909 | 372 | 151 | 523 | 11,432 |
|
12,349 | 351 | 176 | 527 | 12,876 | |||||||||||||||||||||||||||||||||
Originated in 2017
|
4,658 | 81 | 181 | 262 | 4,920 |
|
5,257 | 117 | 270 | 387 | 5,644 | |||||||||||||||||||||||||||||||||
Originated prior to 2017
|
4,133 | 168 | 73 | 241 | 4,374 |
|
4,954 | 128 | 115 | 243 | 5,197 | |||||||||||||||||||||||||||||||||
Revolving
|
22,377 | 206 | 235 | 441 | 22,818 |
|
|
|
22,445 | 299 | 280 | 579 | 23,024 | |||||||||||||||||||||||||||||||
Total commercial
|
99,281 | 2,494 | 2,383 | 4,877 | 104,158 |
|
97,429 | 2,499 | 2,943 | 5,442 | 102,871 | |||||||||||||||||||||||||||||||||
Commercial real estate
|
|
|||||||||||||||||||||||||||||||||||||||||||
Originated in 2021
|
2,368 | 39 | 408 | 447 | 2,815 |
|
– | – | – | – | – | |||||||||||||||||||||||||||||||||
Originated in 2020
|
8,889 | 336 | 901 | 1,237 | 10,126 |
|
9,446 | 461 | 1,137 | 1,598 | 11,044 | |||||||||||||||||||||||||||||||||
Originated in 2019
|
8,788 | 450 | 947 | 1,397 | 10,185 |
|
9,514 | 454 | 1,005 | 1,459 | 10,973 | |||||||||||||||||||||||||||||||||
Originated in 2018
|
5,296 | 373 | 499 | 872 | 6,168 |
|
6,053 | 411 | 639 | 1,050 | 7,103 | |||||||||||||||||||||||||||||||||
Originated in 2017
|
2,375 | 141 | 350 | 491 | 2,866 |
|
2,650 | 198 | 340 | 538 | 3,188 | |||||||||||||||||||||||||||||||||
Originated prior to 2017
|
4,272 | 151 | 161 | 312 | 4,584 |
|
4,762 | 240 | 309 | 549 | 5,311 | |||||||||||||||||||||||||||||||||
Revolving
|
1,457 | 5 | 226 | 231 | 1,688 |
|
|
|
1,445 | 9 | 238 | 247 | 1,692 | |||||||||||||||||||||||||||||||
Total commercial real estate
|
33,445 | 1,495 | 3,492 | 4,987 | 38,432 |
|
33,870 | 1,773 | 3,668 | 5,441 | 39,311 | |||||||||||||||||||||||||||||||||
Residential mortgages (b)
|
|
|||||||||||||||||||||||||||||||||||||||||||
Originated in 2021
|
4,208 | – | – | – | 4,208 |
|
– | – | – | – | – | |||||||||||||||||||||||||||||||||
Originated in 2020
|
22,053 | – | 5 | 5 | 22,058 |
|
23,262 | 1 | 3 | 4 | 23,266 | |||||||||||||||||||||||||||||||||
Originated in 2019
|
12,084 | 1 | 23 | 24 | 12,108 |
|
13,969 | 1 | 17 | 18 | 13,987 | |||||||||||||||||||||||||||||||||
Originated in 2018
|
4,989 | 1 | 25 | 26 | 5,015 |
|
5,670 | 1 | 22 | 23 | 5,693 | |||||||||||||||||||||||||||||||||
Originated in 2017
|
6,091 | 1 | 22 | 23 | 6,114 |
|
6,918 | 1 | 24 | 25 | 6,943 | |||||||||||||||||||||||||||||||||
Originated prior to 2017
|
23,782 | 3 | 335 | 338 | 24,120 |
|
25,921 | 2 | 342 | 344 | 26,265 | |||||||||||||||||||||||||||||||||
Revolving
|
1 | – | – | – | 1 |
|
|
|
1 | – | – | – | 1 | |||||||||||||||||||||||||||||||
Total residential mortgages
|
73,208 | 6 | 410 | 416 | 73,624 |
|
75,741 | 6 | 408 | 414 | 76,155 | |||||||||||||||||||||||||||||||||
Credit card (c)
|
20,674 | – | 198 | 198 | 20,872 |
|
22,149 | – | 197 | 197 | 22,346 | |||||||||||||||||||||||||||||||||
Other retail
|
|
|||||||||||||||||||||||||||||||||||||||||||
Originated in 2021
|
5,690 | – | 1 | 1 | 5,691 |
|
– | – | – | – | – | |||||||||||||||||||||||||||||||||
Originated in 2020
|
15,954 | – | 6 | 6 | 15,960 |
|
17,589 | – | 7 | 7 | 17,596 | |||||||||||||||||||||||||||||||||
Originated in 2019
|
10,351 | – | 16 | 16 | 10,367 |
|
11,605 | – | 23 | 23 | 11,628 | |||||||||||||||||||||||||||||||||
Originated in 2018
|
5,822 | – | 20 | 20 | 5,842 |
|
6,814 | – | 27 | 27 | 6,841 | |||||||||||||||||||||||||||||||||
Originated in 2017
|
3,106 | – | 14 | 14 | 3,120 |
|
3,879 | – | 22 | 22 | 3,901 | |||||||||||||||||||||||||||||||||
Originated prior to 2017
|
3,134 | – | 18 | 18 | 3,152 |
|
3,731 | – | 29 | 29 | 3,760 | |||||||||||||||||||||||||||||||||
Revolving
|
12,536 | – | 135 | 135 | 12,671 |
|
12,647 | – | 110 | 110 | 12,757 | |||||||||||||||||||||||||||||||||
Revolving converted to term
|
495 | – | 43 | 43 | 538 |
|
|
|
503 | – | 38 | 38 | 541 | |||||||||||||||||||||||||||||||
Total other retail
|
57,088 | – | 253 | 253 | 57,341 |
|
|
|
56,768 | – | 256 | 256 | 57,024 | |||||||||||||||||||||||||||||||
Total loans
|
$ | 283,696 | $ | 3,995 | $ | 6,736 | $ | 10,731 | $ | 294,427 |
|
|
|
$ | 285,957 | $ | 4,278 | $ | 7,472 | $ | 11,750 | $ | 297,707 | |||||||||||||||||||||
Total outstanding commitments
|
$ | 629,280 | $ | 8,140 | $ | 9,239 | $ | 17,379 | $ | 646,659 |
|
|
|
$ | 627,606 | $ | 8,772 | $ | 9,374 | $ | 18,146 | $ | 645,752 |
Note:
|
Year of origination is based on the origination date of a loan or the date when the maturity date, pricing or commitment amount is amended.
|
(a)
|
Classified rating on consumer loans primarily based on delinquency status.
|
(b)
|
At March 31, 2021, $1.7 billion of GNMA loans 90 days or more past due and $1.3 billion of restructured GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs were classified with a pass rating, compared with $1.8 billion and $1.4 billion at December 31, 2020, respectively.
|
(c)
|
All credit card loans are considered revolving loans.
|
U.S. Bancorp |
45
|
2021 | 2020 | |||||||||||||||||||||||||||
Three Months Ended March 31
(Dollars in Millions)
|
Number
of Loans |
Pre-Modification
Outstanding Loan Balance |
Post-Modification
Outstanding Loan Balance |
Number
of Loans |
Pre-Modification
Outstanding Loan Balance |
Post-Modification
Outstanding Loan Balance |
||||||||||||||||||||||
Commercial
|
704 | $ | 75 | $ | 60 |
|
999 | $ | 99 | $ | 101 | |||||||||||||||||
Commercial real estate
|
56 | 86 | 71 |
|
27 | 21 | 21 | |||||||||||||||||||||
Residential mortgages
|
336 | 104 | 104 |
|
90 | 10 | 10 | |||||||||||||||||||||
Credit card
|
5,786 | 33 | 34 |
|
8,415 | 46 | 47 | |||||||||||||||||||||
Other retail
|
1,325 | 37 | 32 |
|
|
|
655 | 15 | 14 | |||||||||||||||||||
Total loans, excluding loans purchased from GNMA mortgage pools
|
8,207 | 335 | 301 |
|
10,186 | 191 | 193 | |||||||||||||||||||||
Loans purchased from GNMA mortgage pools
|
559 | 87 | 89 |
|
|
|
1,904 | 266 | 260 | |||||||||||||||||||
Total loans
|
8,766 | $ | 422 | $ | 390 |
|
|
|
12,090 | $ | 457 | $ | 453 |
46 | U.S. Bancorp |
2021 | 2020 | |||||||||||||||||||
Three Months Ended March 31
(Dollars in Millions)
|
Number
of Loans |
Amount
Defaulted |
Number
of Loans |
Amount
Defaulted |
||||||||||||||||
Commercial
|
285 | $ | 16 |
|
287 | $ | 20 | |||||||||||||
Commercial real estate
|
7 | 5 |
|
16 | 10 | |||||||||||||||
Residential mortgages
|
15 | 2 |
|
13 | 1 | |||||||||||||||
Credit card
|
1,764 | 9 |
|
2,070 | 10 | |||||||||||||||
Other retail
|
280 | 5 |
|
|
|
108 | 1 | |||||||||||||
Total loans, excluding loans purchased from GNMA mortgage pools
|
2,351 | 37 |
|
2,494 | 42 | |||||||||||||||
Loans purchased from GNMA mortgage pools
|
30 | 4 |
|
|
|
304 | 41 | |||||||||||||
Total loans
|
2,381 | $ | 41 |
|
|
|
2,798 | $ | 83 |
Note 5
|
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities |
U.S. Bancorp | 47 |
(Dollars in Millions) |
March 31,
2021 |
December 31,
2020 |
||||||
Investment carrying amount
|
$ | 5,161 | $ | 5,378 | ||||
Unfunded capital and other commitments
|
2,236 | 2,334 | ||||||
Maximum exposure to loss
|
10,903 | 11,219 |
48 | U.S. Bancorp |
Note 6
|
Mortgage Servicing Rights |
Three Months Ended
March 31 |
||||||||
(Dollars in Millions) | 2021 | 2020 | ||||||
Balance at beginning of period
|
$ | 2,210 | $ | 2,546 | ||||
Rights purchased
|
16 | 5 | ||||||
Rights capitalized
|
319 | 201 | ||||||
Rights sold (a)
|
— | 1 | ||||||
Changes in fair value of MSRs
|
||||||||
Due to fluctuations in market interest rates (b)
|
486 | (743 | ) | |||||
Due to revised assumptions or models (c)
|
(102 | ) | 17 | |||||
Other changes in fair value (d)
|
(142 | ) | (140 | ) | ||||
Balance at end of period
|
$ | 2,787 | $ | 1,887 |
(a)
|
MSRs sold include those having a negative fair value, resulting from the loans being severely delinquent.
|
(b)
|
Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits.
|
(c)
|
Includes changes in MSR value not caused by changes in market interest rates, such as changes in assumed cost to service, ancillary income and option adjusted spread, as well as the impact of any model changes.
|
(d)
|
Primarily the change in MSR value from passage of time and cash flows realized (decay), but also includes the impact of changes to expected cash flows not associated with changes in market interest rates, such as the impact of delinquencies.
|
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(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
|
$ | (563 | ) | $ | (293 | ) | $ | (149 | ) | $ | 143 | $ | 272 | $ | 483 |
|
$ | (442 | ) | $ | (271 | ) | $ | (150 | ) | $ | 169 | $ | 343 | $ | 671 | |||||||||||||||||||||
Derivative instrument hedges
|
611 | 299 | 146 | (136 | ) | (266 | ) | (513 | ) |
|
|
|
523 | 281 | 145 | (149 | ) | (304 | ) | (625 | ) | |||||||||||||||||||||||||||||||
Net sensitivity
|
$ | 48 | $ | 6 | $ | (3 | ) | $ | 7 | $ | 6 | $ | (30 | ) |
|
|
|
$ | 81 | $ | 10 | $ | (5 | ) | $ | 20 | $ | 39 | $ | 46 |
U.S. Bancorp | 49 |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
(Dollars in Millions) | HFA | Government | Conventional (d) | Total | HFA | Government | Conventional (d) | Total | ||||||||||||||||||||||||||||
Servicing portfolio (a)
|
$ | 39,757 | $ | 23,734 | $ | 145,171 | $ | 208,662 |
|
$ | 40,396 | $ | 25,474 | $ | 143,085 | $ | 208,955 | |||||||||||||||||||
Fair value
|
$ | 499 | $ | 312 | $ | 1,976 | $ | 2,787 |
|
$ | 406 | $ | 261 | $ | 1,543 | $ | 2,210 | |||||||||||||||||||
Value (bps) (b)
|
126 | 131 | 136 | 134 |
|
101 | 102 | 108 | 106 | |||||||||||||||||||||||||||
Weighted-average servicing fees (bps)
|
35 | 40 | 30 | 32 |
|
35 | 40 | 30 | 32 | |||||||||||||||||||||||||||
Multiple (value/servicing fees)
|
3.56 | 3.31 | 4.47 | 4.12 |
|
2.87 | 2.56 | 3.55 | 3.26 | |||||||||||||||||||||||||||
Weighted-average note rate
|
4.33 | % | 3.88 | % | 3.64 | % | 3.80 | % |
|
4.43 | % | 3.91 | % | 3.78 | % | 3.92 | % | |||||||||||||||||||
Weighted-average age (in years)
|
3.8 | 5.9 | 3.8 | 4.0 |
|
3.8 | 5.6 | 4.2 | 4.3 | |||||||||||||||||||||||||||
Weighted-average expected prepayment (constant prepayment rate)
|
11.2 | % | 13.3 | % | 9.5 | % | 10.3 | % |
|
14.1 | % | 18.0 | % | 13.8 | % | 14.4 | % | |||||||||||||||||||
Weighted-average expected life (in years)
|
6.8 | 5.6 | 6.9 | 6.7 |
|
5.6 | 4.3 | 5.5 | 5.4 | |||||||||||||||||||||||||||
Weighted-average option adjusted spread (c)
|
7.7 | % | 7.3 | % | 6.3 | % | 6.7 | % |
|
|
|
7.7 | % | 7.3 | % | 6.2 | % | 6.6 | % |
(a)
|
Represents principal balance of mortgages having corresponding MSR asset.
|
(b)
|
Calculated as fair value divided by the servicing portfolio.
|
(c)
|
Option adjusted spread is the incremental spread added to the risk-free rate to reflect optionality and other risk inherent in the MSRs.
|
(d)
|
Represents loans sold primarily to GSEs.
|
Note 7
|
Preferred Stock
|
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
(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 F
|
44,000 | 1,100 | 12 | 1,088 |
|
44,000 | 1,100 | 12 | 1,088 | |||||||||||||||||||||||||||
Series I
|
— | — | — | — |
|
30,000 | 750 | 5 | 745 | |||||||||||||||||||||||||||
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 | 20 | 730 |
|
|
|
— | — | — | — | |||||||||||||||||||||||||
Total preferred stock (a)
|
209,510 | $ | 6,176 | $ | 208 | $ | 5,968 |
|
|
|
209,510 | $ | 6,176 | $ | 193 | $ | 5,983 |
(a)
|
The par value of all shares issued and outstanding at March 31, 2021 and December 31, 2020, was $1.00 per share.
|
50 | U.S. Bancorp |
Note 8
|
Accumulated Other Comprehensive Income (Loss)
|
(Dollars in Millions) |
Unrealized Gains
(Losses) on Investment Securities
Available-For-
Sale |
Unrealized Gains
(Losses) on
Derivative Hedges
|
Unrealized Gains
(Losses) on Retirement Plans |
Foreign
Currency Translation |
Total | |||||||||||||||
2021
|
||||||||||||||||||||
Balance at beginning of period
|
$ | 2,417 | $ | (189 | ) | $ | (1,842 | ) | $ | (64 | ) | $ | 322 | |||||||
Changes in unrealized gains and losses
|
(3,378 | ) | 99 | — | — | (3,279 | ) | |||||||||||||
Foreign currency translation adjustment (a)
|
— | — | — | 25 | 25 | |||||||||||||||
Reclassification to earnings of realized gains and losses
|
(25 | ) | 4 | 39 | — | 18 | ||||||||||||||
Applicable income taxes
|
861 | (26 | ) | (10 | ) | (6 | ) | 819 | ||||||||||||
Balance at end of period
|
$ | (125 | ) | $ | (112 | ) | $ | (1,813 | ) | $ | (45 | ) | $ | (2,095 | ) | |||||
2020
|
||||||||||||||||||||
Balance at beginning of period
|
$ | 379 | $ | (51 | ) | $ | (1,636 | ) | $ | (65 | ) | $ | (1,373 | ) | ||||||
Changes in unrealized gains and losses
|
2,787 | (257 | ) | — | — | 2,530 | ||||||||||||||
Foreign currency translation adjustment (a)
|
— | — | — | (13 | ) | (13 | ) | |||||||||||||
Reclassification to earnings of realized gains and losses
|
(50 | ) | 13 | 31 | — | (6 | ) | |||||||||||||
Applicable income taxes
|
(692 | ) | 62 | (8 | ) | 3 | (635 | ) | ||||||||||||
Balance at end of period
|
$ | 2,424 | $ | (233 | ) | $ | (1,613 | ) | $ | (75 | ) | $ | 503 |
(a)
|
Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges.
|
Impact to Net Income |
Affected Line Item in the
Consolidated Statement of Income |
|||||||||||||
(Dollars in Millions) | 2021 | 2020 | ||||||||||||
Unrealized gains (losses) on investment securities
available-for-sale
|
|
|
||||||||||||
Realized gains (losses) on sale of investment securities
|
$ | 25 |
|
$ | 50 | Securities gains (losses), net | ||||||||
(6 | ) |
|
|
|
(13 | ) | Applicable income taxes | |||||||
19 |
|
37 |
Net-of-tax
|
|||||||||||
Unrealized gains (losses) on derivative hedges
|
|
|||||||||||||
Realized gains (losses) on derivative hedges
|
(4 | ) |
|
(13 | ) | Interest expense | ||||||||
1 |
|
|
|
3 | Applicable income taxes | |||||||||
(3 | ) |
|
(10 | ) |
Net-of-tax
|
|||||||||
Unrealized gains (losses) on retirement plans
|
|
|||||||||||||
Actuarial gains (losses) and prior service cost (credit) amortization
|
(39 | ) |
|
(31 | ) | Other noninterest expense | ||||||||
10 |
|
|
|
8 | Applicable income taxes | |||||||||
(29 | ) |
|
(23 | ) |
Net-of-tax
|
|||||||||
Total impact to net income
|
$ | (13 | ) |
|
|
|
$ | 4 |
|
Note 9
|
Earnings Per Share
|
Three Months
March 31
|
||||||||||||
(Dollars and Shares in Millions, Except Per Share Data) | 2021 | 2020 | ||||||||||
Net income attributable to U.S. Bancorp
|
$ | 2,280 |
|
$ | 1,171 | |||||||
Preferred dividends
|
(90 | ) |
|
(78 | ) | |||||||
Impact of preferred stock call (a)
|
(5 | ) |
|
— | ||||||||
Earnings allocated to participating stock awards
|
(10 | ) |
|
|
|
(5 | ) | |||||
Net income applicable to U.S. Bancorp common shareholders
|
$ | 2,175 |
|
|
|
$ | 1,088 | |||||
Average common shares outstanding
|
1,502 |
|
1,518 | |||||||||
Net effect of the exercise and assumed purchase of stock awards
|
1 |
|
|
|
1 | |||||||
Average diluted common shares outstanding
|
1,503 |
|
|
|
1,519 | |||||||
Earnings per common share
|
$ | 1.45 |
|
$ | .72 | |||||||
Diluted earnings per common share
|
$ | 1.45 |
|
|
|
$ | .72 |
(a)
|
Represents stock issuance costs originally recorded in preferred stock upon issuance of the Company’s Series I Preferred Stock that were reclassified to retained earnings on the date the Company announced its intent to redeem the outstanding shares.
|
U.S. Bancorp | 51 |
Note 10
|
Employee Benefits
|
Three Months Ended March 31 | ||||||||||||||||
Pension Plans |
Postretirement
Welfare Plan |
|||||||||||||||
(Dollars in Millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Service cost
|
$ | 66 | $ | 59 | $ | — | $ | — | ||||||||
Interest cost
|
55 | 58 | — | 1 | ||||||||||||
Expected return on plan assets
|
(112 | ) | (101 | ) | — | (1 | ) | |||||||||
Prior service cost (credit) amortization
|
— | — | (1 | ) | (1 | ) | ||||||||||
Actuarial loss (gain) amortization
|
42 | 34 | (2 | ) | (2 | ) | ||||||||||
Net periodic benefit cost (a)
|
$ | 51 | $ | 50 | $ | (3 | ) | $ | (3 | ) |
(a)
|
Service cost is included in employee benefits expense on the Consolidated Statement of Income. All other components are included in other noninterest expense on the Consolidated Statement of Income.
|
Note 11
|
Income Taxes
|
Three Months Ended
March 31
|
||||||||
(Dollars in Millions) | 2021 | 2020 | ||||||
Federal
|
||||||||
Current
|
$ | 353 | $ | 315 | ||||
Deferred
|
130 | (106 | ) | |||||
Federal income tax
|
483 | 209 | ||||||
State
|
||||||||
Current
|
94 | 70 | ||||||
Deferred
|
30 | (19 | ) | |||||
State income tax
|
124 | 51 | ||||||
Total income tax provision
|
$ | 607 | $ | 260 |
Three Months Ended
March 31
|
||||||||
(Dollars in Millions) | 2021 | 2020 | ||||||
Tax at statutory rate
|
$ | 607 | $ | 302 | ||||
State income tax, at statutory rates, net of federal tax benefit
|
114 | 59 | ||||||
Tax effect of
|
||||||||
Tax credits and benefits, net of related expenses
|
(93 | ) | (102 | ) | ||||
Tax-exempt
income
|
(28 | ) | (29 | ) | ||||
Other items
|
7 | 30 | ||||||
Applicable income taxes
|
$ | 607 | $ | 260 |
52 | U.S. Bancorp |
Note 12
|
Derivative Instruments
|
U.S. Bancorp | 53 |
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||
(Dollars in Millions) |
Notional
Value
|
Fair
Value
|
Weighted-
Average
Remaining
Maturity
In Years
|
Notional
Value
|
Fair
Value
|
Weighted-
Average
Remaining
Maturity
In Years
|
||||||||||||||||||||||
March 31, 2021
|
|
|||||||||||||||||||||||||||
Fair value hedges
|
|
|||||||||||||||||||||||||||
Interest rate contracts
|
|
|||||||||||||||||||||||||||
Receive fixed/pay floating swaps
|
$ | 6,600 | $ | – | 1.96 |
|
$ | – | $ | – | – | |||||||||||||||||
Cash flow hedges
|
|
|||||||||||||||||||||||||||
Interest rate contracts
|
|
|||||||||||||||||||||||||||
Pay fixed/receive floating swaps
|
– | – | – |
|
3,250 | – | 4.34 | |||||||||||||||||||||
Net investment hedges
|
|
|||||||||||||||||||||||||||
Foreign exchange forward contracts
|
781 | 10 | .05 |
|
– | – | – | |||||||||||||||||||||
Other economic hedges
|
|
|||||||||||||||||||||||||||
Interest rate contracts
|
|
|||||||||||||||||||||||||||
Futures and forwards
|
|
|||||||||||||||||||||||||||
Buy
|
6,044 | 31 | .06 |
|
11,179 | 107 | .10 | |||||||||||||||||||||
Sell
|
30,218 | 349 | .19 |
|
9,364 | 66 | .04 | |||||||||||||||||||||
Options
|
|
|||||||||||||||||||||||||||
Purchased
|
18,370 | 290 | 3.68 |
|
– | – | – | |||||||||||||||||||||
Written
|
4,373 | 109 | .12 |
|
6,740 | 300 | 2.33 | |||||||||||||||||||||
Receive fixed/pay floating swaps
|
4,333 | – | 4.72 |
|
6,373 | – | 10.03 | |||||||||||||||||||||
Pay fixed/receive floating swaps
|
3,379 | – | 4.20 |
|
4,389 | – | 4.85 | |||||||||||||||||||||
Foreign exchange forward contracts
|
270 | 1 | .06 |
|
344 | 2 | .04 | |||||||||||||||||||||
Equity contracts
|
117 | – | .33 |
|
74 | 2 | .19 | |||||||||||||||||||||
Other (a)
|
311 | 5 | .03 |
|
2,096 | 172 | 1.92 | |||||||||||||||||||||
Total
|
$ | 74,796 | $ | 795 |
|
$ | 43,809 | $ | 649 | |||||||||||||||||||
December 31, 2020
|
|
|||||||||||||||||||||||||||
Fair value hedges
|
|
|||||||||||||||||||||||||||
Interest rate contracts
|
|
|||||||||||||||||||||||||||
Receive fixed/pay floating swaps
|
$ | 8,400 | $ | – | 1.76 |
|
$ | – | $ | – | – | |||||||||||||||||
Pay fixed/receive floating swaps
|
– | – | – |
|
100 | – | 9.63 | |||||||||||||||||||||
Cash flow hedges
|
|
|||||||||||||||||||||||||||
Interest rate contracts
|
|
|||||||||||||||||||||||||||
Pay fixed/receive floating swaps
|
– | – | – |
|
3,250 | – | 4.59 | |||||||||||||||||||||
Net investment hedges
|
|
|||||||||||||||||||||||||||
Foreign exchange forward contracts
|
479 | – | .06 |
|
336 | 3 | .06 | |||||||||||||||||||||
Other economic hedges
|
|
|||||||||||||||||||||||||||
Interest rate contracts
|
|
|||||||||||||||||||||||||||
Futures and forwards
|
|
|||||||||||||||||||||||||||
Buy
|
16,431 | 73 | .50 |
|
1,925 | 5 | .07 | |||||||||||||||||||||
Sell
|
10,440 | 48 | .04 |
|
28,976 | 157 | .07 | |||||||||||||||||||||
Options
|
|
|||||||||||||||||||||||||||
Purchased
|
11,610 | 121 | 4.11 |
|
– | – | – | |||||||||||||||||||||
Written
|
5,073 | 202 | .13 |
|
7,770 | 198 | 2.53 | |||||||||||||||||||||
Receive fixed/pay floating swaps
|
11,064 | – | 7.31 |
|
907 | – | 23.43 | |||||||||||||||||||||
Pay fixed/receive floating swaps
|
78 | – | 13.68 |
|
8,538 | – | 5.67 | |||||||||||||||||||||
Foreign exchange forward contracts
|
292 | 1 | .04 |
|
341 | 2 | .05 | |||||||||||||||||||||
Equity contracts
|
127 | 3 | .39 |
|
45 | – | .46 | |||||||||||||||||||||
Other (a)
|
47 | 1 | .11 |
|
1,832 | 183 | 2.44 | |||||||||||||||||||||
Total
|
$ | 64,041 | $ | 449 |
|
|
|
|
|
|
$ | 54,020 | $ | 548 |
|
|
|
(a)
|
Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common and preferred shares of Visa Inc. The Visa swap agreements had a total notional value, fair value and weighted-average remaining maturity of $1.8 billion, $167 million and 2.25 years at March 31, 2021, respectively, compared to $1.8 billion, $182 million and 2.50 years at December 31, 2020, respectively. In addition, includes short-term underwriting purchase and sale commitments with total asset and liability notional values of $311 million at March 31, 2021, and $47 million at December 31, 2020.
|
54 | U.S. Bancorp |
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||
(Dollars in Millions) |
Notional
Value |
Fair
Value |
Weighted-
Average Remaining Maturity In Years |
Notional
Value |
Fair
Value |
Weighted-
Average Remaining Maturity In Years |
||||||||||||||||||||||
March 31, 2021
|
|
|||||||||||||||||||||||||||
Interest rate contracts
|
|
|||||||||||||||||||||||||||
Receive fixed/pay floating swaps
|
$ | 121,392 | $ | 2,416 | 4.42 |
|
$ | 40,305 | $ | 494 | 7.50 | |||||||||||||||||
Pay fixed/receive floating swaps
|
39,173 | 115 | 7.22 |
|
115,251 | 801 | 4.32 | |||||||||||||||||||||
Other (a)
|
9,128 | 2 | 3.74 |
|
6,901 | 2 | 4.73 | |||||||||||||||||||||
Options
|
|
|||||||||||||||||||||||||||
Purchased
|
80,134 | 204 | 1.32 |
|
1,465 | 31 | 2.71 | |||||||||||||||||||||
Written
|
1,391 | 31 | 2.77 |
|
75,365 | 195 | 1.25 | |||||||||||||||||||||
Futures
|
|
|||||||||||||||||||||||||||
Buy
|
921 | – | .95 |
|
1,628 | – | 1.14 | |||||||||||||||||||||
Sell
|
1,468 | – | 1.10 |
|
1,310 | – | .45 | |||||||||||||||||||||
Foreign exchange rate contracts
|
|
|||||||||||||||||||||||||||
Forwards, spots and swaps
|
41,612 | 1,307 | 1.09 |
|
41,887 | 1,284 | 1.25 | |||||||||||||||||||||
Options
|
|
|||||||||||||||||||||||||||
Purchased
|
650 | 23 | .98 |
|
– | – | – | |||||||||||||||||||||
Written
|
– | – | – |
|
650 | 20 | .98 | |||||||||||||||||||||
Credit contracts
|
2,906 | 1 | 2.68 |
|
7,495 | 10 | 4.45 | |||||||||||||||||||||
Total
|
$ | 298,775 | $ | 4,099 |
|
$ | 292,257 | $ | 2,837 | |||||||||||||||||||
December 31, 2020
|
|
|||||||||||||||||||||||||||
Interest rate contracts
|
|
|||||||||||||||||||||||||||
Receive fixed/pay floating swaps
|
$ | 144,859 | $ | 3,782 | 4.93 |
|
$ | 12,027 | $ | 99 | 8.72 | |||||||||||||||||
Pay fixed/receive floating swaps
|
15,048 | 2 | 8.43 |
|
134,963 | 1,239 | 4.71 | |||||||||||||||||||||
Other (a)
|
9,921 | 6 | 3.75 |
|
6,387 | 3 | 4.22 | |||||||||||||||||||||
Options
|
|
|||||||||||||||||||||||||||
Purchased
|
72,655 | 111 | 1.40 |
|
1,454 | 46 | 2.96 | |||||||||||||||||||||
Written
|
1,736 | 46 | 2.76 |
|
68,205 | 81 | 1.25 | |||||||||||||||||||||
Futures
|
|
|||||||||||||||||||||||||||
Buy
|
1,851 | – | 1.22 |
|
924 | – | .05 | |||||||||||||||||||||
Sell
|
– | – | – |
|
4,090 | – | .72 | |||||||||||||||||||||
Foreign exchange rate contracts
|
|
|||||||||||||||||||||||||||
Forwards, spots and swaps
|
44,845 | 1,590 | .96 |
|
45,992 | 1,565 | 1.13 | |||||||||||||||||||||
Options
|
|
|||||||||||||||||||||||||||
Purchased
|
519 | 14 | .90 |
|
– | – | – | |||||||||||||||||||||
Written
|
– | – | – |
|
519 | 14 | .90 | |||||||||||||||||||||
Credit contracts
|
2,876 | 1 | 2.75 |
|
7,479 | 7 | 3.81 | |||||||||||||||||||||
Total
|
$ | 294,310 | $ | 5,552 |
|
|
|
|
|
|
$ | 282,040 | $ | 3,054 |
|
|
|
(a)
|
Primarily represents floating rate interest rate swaps that pay based on differentials between specified interest rate indexes.
|
Gains (Losses)
Recognized in
Other
Comprehensive Income
(Loss)
|
Gains (Losses)
Reclassified from Other Comprehensive Income (Loss) into Earnings |
||||||||||||||||
(Dollars in Millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||
Asset and Liability Management Positions
|
|||||||||||||||||
Cash flow hedges
|
|||||||||||||||||
Interest rate contracts
|
$ | 74 | $ | (192 | ) | $ | (3 | ) | $ | (10 | ) | ||||||
Net investment hedges
|
|||||||||||||||||
Foreign exchange forward contracts
|
7 | 16 | – | – | |||||||||||||
Non-derivative
debt instruments
|
48 | 25 | – | – |
Note:
|
The Company does not exclude components from effectiveness testing for cash flow and net investment hedges.
|
U.S. Bancorp | 55 |
Interest Income | Interest Expense | |||||||||||||||||||
(Dollars in Millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
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
|
$ | 3,341 | $ | 4,116 |
|
$ | 278 | $ | 893 | |||||||||||
Asset and Liability Management Positions
|
|
|||||||||||||||||||
Fair value hedges
|
|
|||||||||||||||||||
Interest rate contract derivatives
|
(1 | ) | – |
|
55 | (1,035 | ) | |||||||||||||
Hedged items
|
1 | – |
|
(55 | ) | 1,028 | ||||||||||||||
Cash flow hedges
|
|
|||||||||||||||||||
Interest rate contract derivatives
|
– | – |
|
|
|
4 | 13 |
Note:
|
The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company reclassified losses of $15 million into earnings during the three months ended March 31, 2021, as a result of the discontinuance of cash flow hedges. The Company did not reclassify gains or losses into earnings as a result of the discontinuance of cash flow hedges during the three months ended March 31, 2020.
|
Carrying Amount of the Hedged Assets
and Liabilities |
Cumulative Hedging Adjustment (a) | |||||||||||||||||||
(Dollars in Millions) | March 31, 2021 | December 31, 2020 | March 31, 2021 | December 31, 2020 | ||||||||||||||||
Line Item in the Consolidated Balance Sheet
|
|
|||||||||||||||||||
Available-for-sale
|
$ | – | $ | 99 |
|
$ | (4 | ) | $ | (1 | ) | |||||||||
Long-term debt
|
6,713 | 8,567 |
|
|
|
800 | 903 |
(a)
|
The cumulative hedging adjustment related to the discontinued hedging relationships on available-for-sale investment securities and long-term debt was
million, respectively, at March 31, 2021. The cumulative hedging adjustment related to discontinued hedging relationships on long-term debt was $726 million at December 31, 2020.
|
(Dollars in Millions) |
Location of Gains (Losses)
Recognized in Earnings |
2021 | 2020 | |||||||||
Asset and Liability Management Positions
|
||||||||||||
Other economic hedges
|
||||||||||||
Interest rate contracts
|
||||||||||||
Futures and forwards
|
Mortgage banking revenue/
other noninterest income |
|
$ | 430 | $ | (75 | ) | |||||
Purchased and written options
|
Mortgage banking revenue | 12 | 280 | |||||||||
Swaps
|
Mortgage banking revenue | (390 | ) | 729 | ||||||||
Foreign exchange forward contracts
|
Other noninterest income | (3 | ) | 17 | ||||||||
Equity contracts
|
Compensation expense | 4 | (4 | ) | ||||||||
Other
|
Other noninterest income | – | (1 | ) | ||||||||
Customer-Related Positions
|
||||||||||||
Interest rate contracts
|
||||||||||||
Swaps
|
Commercial products revenue | 27 | (22 | ) | ||||||||
Purchased and written options
|
Commercial products revenue | (7 | ) | 17 | ||||||||
Futures
|
Commercial products revenue | – | (18 | ) | ||||||||
Foreign exchange rate contracts
|
||||||||||||
Forwards, spots and swaps
|
Commercial products revenue | 19 | 17 | |||||||||
Purchased and written options
|
Commercial products revenue | – | – | |||||||||
Credit contracts
|
Commercial products revenue | 2 | 18 |
56 | U.S. Bancorp |
Note 13
|
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities | |
|
U.S. Bancorp | 57 |
(Dollars in Millions) |
Overnight and
Continuous |
Less Than
30 Days |
30-89
Days |
Greater Than
90 Days |
Total | |||||||||||||||
March 31, 2021
|
||||||||||||||||||||
Repurchase agreements
|
||||||||||||||||||||
U.S. Treasury and agencies
|
$
|
272
|
|
$
|
–
|
|
$
|
–
|
|
$
|
–
|
|
$
|
272
|
|
|||||
Residential agency mortgage-backed securities
|
|
588
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
588
|
|
|||||
Corporate debt securities
|
|
814
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
814
|
|
|||||
Total repurchase agreements
|
|
1,674
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
1,674
|
|
|||||
Securities loaned
|
||||||||||||||||||||
Corporate debt securities
|
|
230
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
230
|
|
|||||
Total securities loaned
|
|
230
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
230
|
|
|||||
Gross amount of recognized liabilities
|
$
|
1,904
|
|
$
|
–
|
|
$
|
–
|
|
$
|
–
|
|
$
|
1,904
|
|
|||||
December 31, 2020
|
||||||||||||||||||||
Repurchase agreements
|
||||||||||||||||||||
U.S. Treasury and agencies
|
$
|
472
|
|
$
|
–
|
|
$
|
–
|
|
$
|
–
|
|
$
|
472
|
|
|||||
Residential agency mortgage-backed securities
|
|
398
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
398
|
|
|||||
Corporate debt securities
|
|
560
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
560
|
|
|||||
Total repurchase agreements
|
|
1,430
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
1,430
|
|
|||||
Securities loaned
|
||||||||||||||||||||
Corporate debt securities
|
|
218
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
218
|
|
|||||
Total securities loaned
|
|
218
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
218
|
|
|||||
Gross amount of recognized liabilities
|
$
|
1,648
|
|
$
|
–
|
|
$
|
–
|
|
$
|
–
|
|
$
|
1,648
|
|
(Dollars in Millions)
|
Gross
Recognized
Assets |
Gross Amounts
Offset on the
Consolidated
Balance Sheet (a) |
Net Amounts
Presented on the
Consolidated
Balance Sheet |
Gross Amounts Not Offset on the
Consolidated Balance Sheet |
Net Amount | |||||||||||||||||||
Financial
Instruments (b) |
Collateral
Received (c) |
|||||||||||||||||||||||
March 31, 2021
|
||||||||||||||||||||||||
Derivative assets (d)
|
$
|
4,776
|
|
$
|
(1,938
|
)
|
$
|
2,838
|
|
$
|
(159
|
)
|
$
|
(147
|
)
|
$
|
2,532
|
|
||||||
Reverse repurchase agreements
|
|
403
|
|
|
–
|
|
|
403
|
|
|
(207
|
)
|
|
(196
|
)
|
|
–
|
|
||||||
Securities borrowed
|
|
1,915
|
|
|
–
|
|
|
1,915
|
|
|
–
|
|
|
(1,862
|
)
|
|
53
|
|
||||||
Total
|
$
|
7,094
|
|
$
|
(1,938
|
)
|
$
|
5,156
|
|
$
|
(366
|
)
|
$
|
(2,205
|
)
|
$
|
2,585
|
|
||||||
December 31, 2020
|
||||||||||||||||||||||||
Derivative assets (d)
|
$
|
5,744
|
|
$
|
(1,874
|
)
|
$
|
3,870
|
|
$
|
(109
|
)
|
$
|
(287
|
)
|
$
|
3,474
|
|
||||||
Reverse repurchase agreements
|
|
377
|
|
|
–
|
|
|
377
|
|
|
(262
|
)
|
|
(115
|
)
|
|
–
|
|
||||||
Securities borrowed
|
|
1,716
|
|
|
–
|
|
|
1,716
|
|
|
–
|
|
|
(1,670
|
)
|
|
46
|
|
||||||
Total
|
$
|
7,837
|
|
$
|
(1,874
|
)
|
$
|
5,963
|
|
$
|
(371
|
)
|
$
|
(2,072
|
)
|
$
|
3,520
|
|
(a)
|
Includes $637 million and $898 million of cash collateral related payables that were netted against derivative assets at March 31, 2021 and December 31, 2020, respectively.
|
(b)
|
For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any repurchase agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in the event of counterparty default.
|
(c)
|
Includes the fair value of securities received by the Company from the counterparty. These securities are not included on the Consolidated Balance Sheet unless the counterparty defaults.
|
(d)
|
Excludes $118 million and $257 million at March 31, 2021 and December 31, 2020, respectively, of derivative assets not subject to netting arrangements.
|
58 | U.S. Bancorp |
(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) |
|||||||||||||||||||||||
March 31, 2021
|
||||||||||||||||||||||||
Derivative liabilities (d)
|
$
|
3,280
|
|
$
|
(2,084
|
)
|
$
|
1,196
|
|
$
|
(159
|
)
|
$
|
–
|
|
$
|
1,037
|
|
||||||
Repurchase agreements
|
|
1,674
|
|
|
—
|
|
|
1,674
|
|
|
(207
|
)
|
|
(1,465
|
)
|
|
2
|
|
||||||
Securities loaned
|
|
230
|
|
|
—
|
|
|
230
|
|
|
—
|
|
|
(227
|
)
|
|
3
|
|
||||||
Total
|
$
|
5,184
|
|
$
|
(2,084
|
)
|
$
|
3,100
|
|
$
|
(366
|
)
|
$
|
(1,692
|
)
|
$
|
1,042
|
|
||||||
December 31, 2020
|
||||||||||||||||||||||||
Derivative liabilities (d)
|
$
|
3,419
|
|
$
|
(2,312
|
)
|
$
|
1,107
|
|
$
|
(109
|
)
|
$
|
–
|
|
$
|
998
|
|
||||||
Repurchase agreements
|
|
1,430
|
|
|
—
|
|
|
1,430
|
|
|
(262
|
)
|
|
(1,168
|
)
|
|
—
|
|
||||||
Securities loaned
|
|
218
|
|
|
—
|
|
|
218
|
|
|
—
|
|
|
(215
|
)
|
|
3
|
|
||||||
Total
|
$
|
5,067
|
|
$
|
(2,312
|
)
|
$
|
2,755
|
|
$
|
(371
|
)
|
$
|
(1,383
|
)
|
$
|
1,001
|
|
(a)
|
Includes $783 million and $1.3 billion of cash collateral related receivables that were netted against derivative liabilities at March 31, 2021 and December 31, 2020, respectively.
|
(b)
|
For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse repurchase agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be offset in the event of counterparty default.
|
(c)
|
Includes the fair value of securities pledged by the Company to the counterparty. These securities are included on the Consolidated Balance Sheet unless the Company defaults.
|
(d)
|
Excludes $206 million and $183 million at March 31, 2021 and December 31, 2020, respectively, of derivative liabilities not subject to netting arrangements.
|
Note 14
|
Fair Values of Assets and Liabilities |
• |
Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 1 includes U.S. Treasury securities, as well as exchange-traded instruments.
|
• |
Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 includes debt securities that are traded less frequently than exchange-traded instruments and which are typically valued using third party pricing services; derivative contracts and other assets and liabilities, including securities, whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data; and MLHFS whose values are determined using quoted prices for similar assets or pricing models with inputs that are observable in the market or can be corroborated by observable market data.
|
• |
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category includes MSRs and certain derivative contracts.
|
U.S. Bancorp | 59 |
60 | U.S. Bancorp |
Minimum | Maximum |
Weighted-
average (a)
|
||||||||||
Expected prepayment
|
4 | % | 15 | % | 10 | % | ||||||
Option adjusted spread
|
6 | 11 | 7 |
(a)
|
Determined based on the relative fair value of the related mortgage loans serviced.
|
Minimum | Maximum |
Weighted-
average (a)
|
||||||||||
Expected loan close rate
|
4 | % | 100 | % | 76 | % | ||||||
Inherent MSR value (basis points per loan)
|
53 | 201 | 123 |
(a)
|
Determined based on the relative fair value of the related mortgage loans.
|
U.S. Bancorp | 61 |
(Dollars in Millions) | Level 1 | Level 2 | Level 3 | Netting | Total | |||||||||||||||
March 31, 2021
|
||||||||||||||||||||
Available-for-sale
|
||||||||||||||||||||
U.S. Treasury and agencies
|
$ | 21,406 | $ | 2,911 | $ | – | $ | – | $ | 24,317 | ||||||||||
Mortgage-backed securities
|
||||||||||||||||||||
Residential agency
|
– | 116,176 | – | – | 116,176 | |||||||||||||||
Commercial agency
|
– | 6,086 | – | – | 6,086 | |||||||||||||||
Asset-backed securities
|
– | 195 | 7 | – | 202 | |||||||||||||||
Obligations of state and political subdivisions
|
– | 9,214 | 1 | – | 9,215 | |||||||||||||||
Other
|
– | 7 | – | – | 7 | |||||||||||||||
Total
available-for-sale
|
21,406 | 134,589 | 8 | – | 156,003 | |||||||||||||||
Mortgage loans held for sale
|
– | 8,869 | – | – | 8,869 | |||||||||||||||
Mortgage servicing rights
|
– | – | 2,787 | – | 2,787 | |||||||||||||||
Derivative assets
|
7 | 3,066 | 1,821 | (1,938 | ) | 2,956 | ||||||||||||||
Other assets
|
120 | 2,029 | – | – | 2,149 | |||||||||||||||
Total
|
$ | 21,533 | $ | 148,553 | $ | 4,616 | $ | (1,938 | ) | $ | 172,764 | |||||||||
Derivative liabilities
|
$ | – | $ | 2,821 | $ | 665 | $ | (2,084 | ) | $ | 1,402 | |||||||||
Short-term borrowings and other liabilities (a)
|
199 | 1,890 | – | – | 2,089 | |||||||||||||||
Total
|
$ | 199 | $ | 4,711 | $ | 665 | $ | (2,084 | ) | $ | 3,491 | |||||||||
December 31, 2020
|
||||||||||||||||||||
Available-for-sale
|
||||||||||||||||||||
U.S. Treasury and agencies
|
$ | 19,251 | $ | 3,140 | $ | – | $ | – | $ | 22,391 | ||||||||||
Mortgage-backed securities
|
||||||||||||||||||||
Residential agency
|
– | 99,968 | – | – | 99,968 | |||||||||||||||
Commercial agency
|
– | 5,406 | – | – | 5,406 | |||||||||||||||
Asset-backed securities
|
– | 198 | 7 | – | 205 | |||||||||||||||
Obligations of state and political subdivisions
|
– | 8,860 | 1 | – | 8,861 | |||||||||||||||
Other
|
– | 9 | – | – | 9 | |||||||||||||||
Total
available-for-sale
|
19,251 | 117,581 | 8 | – | 136,840 | |||||||||||||||
Mortgage loans held for sale
|
– | 8,524 | – | – | 8,524 | |||||||||||||||
Mortgage servicing rights
|
– | – | 2,210 | – | 2,210 | |||||||||||||||
Derivative assets
|
4 | 3,235 | 2,762 | (1,874 | ) | 4,127 | ||||||||||||||
Other assets
|
302 | 1,601 | – | – | 1,903 | |||||||||||||||
Total
|
$ | 19,557 | $ | 130,941 | $ | 4,980 | $ | (1,874 | ) | $ | 153,604 | |||||||||
Derivative liabilities
|
$ | – | $ | 3,166 | $ | 436 | $ | (2,312 | ) | $ | 1,290 | |||||||||
Short-term borrowings and other liabilities (a)
|
85 | 1,672 | – | – | 1,757 | |||||||||||||||
Total
|
$ | 85 | $ | 4,838 | $ | 436 | $ | (2,312 | ) | $ | 3,047 |
Note:
|
Excluded from the table above are equity investments without readily determinable fair values. The Company has elected to carry these investments at historical cost, adjusted for impairment and any changes resulting from observable price changes for identical or similar investments of the issuer. The aggregate carrying amount of these equity investments was $71 million and $85 million at March 31, 2021 and December 31, 2020, respectively. The Company has not recorded impairments or adjustments for observable price changes on these equity investments during the first three months of 2021 and 2020, or on a cumulative basis.
|
(a)
|
Primarily represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.
|
62 | U.S. Bancorp |
(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 | Issuances | Settlements |
End
of Period Balance |
Net Change
in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period |
|||||||||||||||||||||||||||
2021
|
||||||||||||||||||||||||||||||||||||
Available-for-sale
|
||||||||||||||||||||||||||||||||||||
Asset-backed securities
|
$ | 7 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 7 | $ | – | ||||||||||||||||||
Obligations of state and political subdivisions
|
1 | – | – | – | – | – | – | 1 | – | |||||||||||||||||||||||||||
Total
available-for-sale
|
8 | – | – | – | – | – | – | 8 | – | |||||||||||||||||||||||||||
Mortgage servicing rights
|
2,210 | 242 | (a) | – | 16 | – | 319 | (c) | – | 2,787 | 242 | (a) | ||||||||||||||||||||||||
Net derivative assets and liabilities
|
2,326 | (935 | ) (b) | – | 2 | – |
–
|
(237 | ) | 1,156 | (900 | ) (d) | ||||||||||||||||||||||||
2020
|
||||||||||||||||||||||||||||||||||||
Available-for-sale
|
||||||||||||||||||||||||||||||||||||
Asset-backed securities
|
$ | 8 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 8 | $ | – | ||||||||||||||||||
Obligations of state and political subdivisions
|
1 | – | 1 | – | – | – | – | 2 | 1 | |||||||||||||||||||||||||||
Total
available-for-sale
|
9 | – | 1 | – | – | – | – | 10 | 1 | |||||||||||||||||||||||||||
Mortgage servicing rights
|
2,546 | (866 | ) (a) | – | 5 | 1 | 201 | (c) | – | 1,887 | (866 | ) (a) | ||||||||||||||||||||||||
Net derivative assets and liabilities
|
810 | 1,742 | (e) | – | 4 | – | – | (60 | ) | 2,496 | 1,726 | (f) |
(a)
|
Included in mortgage banking revenue.
|
(b)
|
Approximately $60 million included in mortgage banking revenue and $(995) million included in commercial products revenue.
|
(c)
|
Represents MSRs capitalized during the period.
|
(d)
|
Approximately $78
million included in mortgage banking revenue and $(978) million included in commercial products revenue.
|
(e)
|
Approximately $357 million, $1.4 billion and $(1) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
|
(f)
|
Approximately $214 million, $1.5 billion and $(1) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
|
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Loans (a)
|
$ | – | $ | – | $ | 81 | $ | 81 |
|
$ | – | $ | – | $ | 385 | $ | 385 | |||||||||||||||||||
Other assets (b)
|
– | – | 9 | 9 |
|
|
|
– | – | 30 | 30 |
(a)
|
Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully
charged-off.
|
(b)
|
Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition.
|
(Dollars in Millions) | 2021 | 2020 | ||||||
Loans (a)
|
$ | 31 | $ | 5 | ||||
Other assets (b)
|
1 | 3 |
(a)
|
Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully
charged-off.
|
(b)
|
Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.
|
U.S. Bancorp |
6
3
|
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||
(Dollars in Millions) |
Fair
Value Carrying Amount |
Aggregate
Unpaid Principal |
Carrying
Amount Over (Under) Unpaid Principal |
Fair
Value Carrying Amount |
Aggregate
Unpaid Principal |
Carrying
Amount Over (Under) Unpaid Principal |
||||||||||||||||||||||
Total loans
|
$ | 8,869 | $ | 8,685 | $ | 184 |
|
$ | 8,524 | $ | 8,136 | $ | 388 | |||||||||||||||
Nonaccrual loans
|
1 | 1 | – |
|
1 | 1 | – | |||||||||||||||||||||
Loans 90 days or more past due
|
1 | 1 | – |
|
|
|
2 | 2 | – |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
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
|
$ | 43,501 | $ | 43,501 | $ | – | $ | – | $ | 43,501 |
|
$ | 62,580 | $ | 62,580 | $ | – | $ | – | $ | 62,580 | |||||||||||||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements
|
403 | – | 403 | – | 403 |
|
377 | – | 377 | – | 377 | |||||||||||||||||||||||||||||||||||||||||
Loans held for sale (a)
|
122 | – | – | 122 | 122 |
|
237 | – | – | 237 | 237 | |||||||||||||||||||||||||||||||||||||||||
Loans
|
288,084 | – | – | 296,703 | 296,703 |
|
290,393 | – | – | 300,419 | 300,419 | |||||||||||||||||||||||||||||||||||||||||
Other (b)
|
1,877 | – | 899 | 978 | 1,877 |
|
1,772 | – | 731 | 1,041 | 1,772 | |||||||||||||||||||||||||||||||||||||||||
Financial Liabilities
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
Time deposits
|
23,711 | – | 23,834 | – | 23,834 |
|
30,694 | – | 30,864 | – | 30,864 | |||||||||||||||||||||||||||||||||||||||||
Short-term borrowings (c)
|
10,009 | – | 9,963 | – | 9,963 |
|
10,009 | – | 9,956 | – | 9,956 | |||||||||||||||||||||||||||||||||||||||||
Long-term debt
|
37,419 | – | 38,086 | – | 38,086 |
|
41,297 | – | 42,485 | – | 42,485 | |||||||||||||||||||||||||||||||||||||||||
Other (d)
|
3,905 |
|
|
|
– | 1,175 | 2,730 | 3,905 |
|
|
|
4,052 |
|
|
|
– | 1,234 | 2,818 | 4,052 |
(a)
|
Excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected.
|
(b)
|
Includes investments in Federal Reserve Bank and Federal Home Loan Bank stock and
tax-advantaged
investments.
|
(c)
|
Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.
|
(d)
|
Includes operating lease liabilities and liabilities related to
tax-advantaged
investments.
|
Note 15
|
Guarantees and Contingent Liabilities |
6
4
|
U.S. Bancorp |
(a)
|
The maximum potential future payments do not include loan sales where the Company provides standard representation and warranties to the buyer against losses related to loan underwriting documentation defects that may have existed at the time of sale that generally are identified after the occurrence of a triggering event such as delinquency. For these types of loan sales, the maximum potential future payments is generally the unpaid principal balance of loans sold measured at the end of the current reporting period. Actual losses will be significantly less than the maximum exposure, as only a fraction of loans sold will have a representation and warranty breach, and any losses on repurchase would generally be mitigated by any collateral held against the loans.
|
U.S. Bancorp |
6
5
|
Note 16
|
Business Segments
|
6
6
|
U.S. Bancorp |
U.S. Bancorp |
6
7
|
Corporate and Commercial
Banking |
Consumer and
Business Banking |
Wealth Management and
Investment Services |
||||||||||||||||||||||||||||||
(Dollars in Millions) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||
Condensed Income Statement
|
|
|
|
|||||||||||||||||||||||||||||
Net interest income (taxable-equivalent basis)
|
$ | 666 | $ | 784 |
|
$ | 1,625 | $ | 1,531 |
|
$ | 204 | $ | 284 | ||||||||||||||||||
Noninterest income
|
259 | 271 |
|
|
|
617 | 757 |
|
|
|
492 | 466 | ||||||||||||||||||||
Total net revenue
|
925 | 1,055 |
|
2,242 | 2,288 |
|
696 | 750 | ||||||||||||||||||||||||
Noninterest expense
|
406 | 443 |
|
1,388 | 1,336 |
|
459 | 449 | ||||||||||||||||||||||||
Other intangibles
|
– | – |
|
|
|
3 | 4 |
|
|
|
2 | 3 | ||||||||||||||||||||
Total noninterest expense
|
406 | 443 |
|
|
|
1,391 | 1,340 |
|
|
|
461 | 452 | ||||||||||||||||||||
Income (loss) before provision and income taxes
|
519 | 612 |
|
851 | 948 |
|
235 | 298 | ||||||||||||||||||||||||
Provision for credit losses
|
(40 | ) | 424 |
|
|
|
(44 | ) | 123 |
|
|
|
7 | 23 | ||||||||||||||||||
Income (loss) before income taxes
|
559 | 188 |
|
895 | 825 |
|
228 | 275 | ||||||||||||||||||||||||
Income taxes and taxable-equivalent adjustment
|
140 | 47 |
|
|
|
224 | 206 |
|
|
|
57 | 69 | ||||||||||||||||||||
Net income (loss)
|
419 | 141 |
|
671 | 619 |
|
171 | 206 | ||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests
|
– | – |
|
|
|
– | – |
|
|
|
– | – | ||||||||||||||||||||
Net income (loss) attributable to U.S. Bancorp
|
$ | 419 | $ | 141 |
|
|
|
$ | 671 | $ | 619 |
|
|
|
$ | 171 | $ | 206 | ||||||||||||||
Average Balance Sheet
|
|
|
|
|||||||||||||||||||||||||||||
Loans
|
$ | 94,872 | $ | 103,368 |
|
$ | 153,177 | $ | 146,718 |
|
$ | 12,443 | $ | 10,608 | ||||||||||||||||||
Other earning assets
|
4,308 | 4,555 |
|
10,203 | 4,967 |
|
279 | 281 | ||||||||||||||||||||||||
Goodwill
|
1,647 | 1,647 |
|
3,475 | 3,574 |
|
1,619 | 1,617 | ||||||||||||||||||||||||
Other intangible assets
|
5 | 7 |
|
2,491 | 2,411 |
|
42 | 44 | ||||||||||||||||||||||||
Assets
|
107,022 | 115,308 |
|
175,541 | 161,886 |
|
15,662 | 13,950 | ||||||||||||||||||||||||
Noninterest-bearing deposits
|
51,020 | 29,370 |
|
39,186 | 27,866 |
|
20,277 | 13,232 | ||||||||||||||||||||||||
Interest-bearing deposits
|
67,750 | 80,657 |
|
|
|
166,876 | 133,718 |
|
|
|
71,629 | 68,842 | ||||||||||||||||||||
Total deposits
|
118,770 | 110,027 |
|
206,062 | 161,584 |
|
91,906 | 82,074 | ||||||||||||||||||||||||
Total U.S. Bancorp shareholders’ equity
|
13,074 | 14,182 |
|
|
|
13,453 | 13,422 |
|
|
|
2,634 | 2,571 | ||||||||||||||||||||
Payment
Services |
Treasury and
Corporate Support |
Consolidated
Company |
||||||||||||||||||||||||||||||
(Dollars in Millions) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||
Condensed Income Statement
|
|
|
|
|||||||||||||||||||||||||||||
Net interest income (taxable-equivalent basis)
|
$ | 628 | $ | 661 |
|
$ | (34 | ) | $ | (13 | ) |
|
$ | 3,089 | $ | 3,247 | ||||||||||||||||
Noninterest income
|
785 | (a) | 794 | (a) |
|
|
|
228 | 237 |
|
|
|
2,381 | (b) | 2,525 | (b) | ||||||||||||||||
Total net revenue
|
1,413 | 1,455 |
|
194 | 224 |
|
5,470 | (c) | 5,772 | (c) | ||||||||||||||||||||||
Noninterest expense
|
782 | 754 |
|
306 | 292 |
|
3,341 | 3,274 | ||||||||||||||||||||||||
Other intangibles
|
33 | 35 |
|
|
|
– | – |
|
|
|
38 | 42 | ||||||||||||||||||||
Total noninterest expense
|
815 | 789 |
|
|
|
306 | 292 |
|
|
|
3,379 | 3,316 | ||||||||||||||||||||
Income (loss) before provision and income taxes
|
598 | 666 |
|
(112 | ) | (68 | ) |
|
2,091 | 2,456 | ||||||||||||||||||||||
Provision for credit losses
|
(41 | ) | 262 |
|
|
|
(709 | ) | 161 |
|
|
|
(827 | ) | 993 | |||||||||||||||||
Income (loss) before income taxes
|
639 | 404 |
|
597 | (229 | ) |
|
2,918 | 1,463 | |||||||||||||||||||||||
Income taxes and taxable-equivalent adjustment
|
160 | 101 |
|
|
|
52 | (139 | ) |
|
|
|
633 | 284 | |||||||||||||||||||
Net income (loss)
|
479 | 303 |
|
545 | (90 | ) |
|
2,285 | 1,179 | |||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests
|
– | – |
|
|
|
(5 | ) | (8 | ) |
|
|
|
(5 | ) | (8 | ) | ||||||||||||||||
Net income (loss) attributable to U.S. Bancorp
|
$ | 479 | $ | 303 |
|
|
|
$ | 540 | $ | (98 | ) |
|
|
|
$ | 2,280 | $ | 1,171 | |||||||||||||
Average Balance Sheet
|
|
|
|
|||||||||||||||||||||||||||||
Loans
|
$ | 29,630 | $ | 33,688 |
|
$ | 3,867 | $ | 3,275 |
|
$ | 293,989 | $ | 297,657 | ||||||||||||||||||
Other earning assets
|
5 | 6 |
|
188,927 | 140,256 |
|
203,722 | 150,065 | ||||||||||||||||||||||||
Goodwill
|
3,173 | 2,856 |
|
– | – |
|
9,914 | 9,694 | ||||||||||||||||||||||||
Other intangible assets
|
544 | 557 |
|
– | – |
|
3,082 | 3,019 | ||||||||||||||||||||||||
Assets
|
35,095 | 38,285 |
|
215,414 | 165,378 |
|
548,734 | 494,807 | ||||||||||||||||||||||||
Noninterest-bearing deposits
|
5,264 | 1,471 |
|
2,605 | 2,203 |
|
118,352 | 74,142 | ||||||||||||||||||||||||
Interest-bearing deposits
|
132 | 114 |
|
|
|
1,625 | 5,331 |
|
|
|
308,012 | 288,662 | ||||||||||||||||||||
Total deposits
|
5,396 | 1,585 |
|
4,230 | 7,534 |
|
426,364 | 362,804 | ||||||||||||||||||||||||
Total U.S. Bancorp shareholders’ equity
|
7,480 | 7,619 |
|
|
|
16,088 | 13,352 |
|
|
|
52,729 | 51,146 |
(a)
|
Presented net of related rewards and rebate costs and certain partner payments of $
535
million and $
530
million for the three months ended March 31, 2021 and 2020, respectively.
|
(b)
|
Includes revenue generated from certain contracts with customers of $1.7 billion for the three months ended March 31, 2021 and 2020.
|
(c)
|
The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Under these
arrangements,
the Company recorded $228 million and $238 million of revenue for the three months ended March 31, 2021 and 2020, respectively, primarily consisting of interest income on sales-type and direct financing leases.
|
68
|
U.S. Bancorp |
Note 17
|
Subsequent Events
|
U.S. Bancorp |
69
|
For the Three Months Ended March 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions)
(Unaudited)
|
Average
Balances |
Interest |
Yields and
Rates |
Average
Balances |
Interest |
Yields and
Rates |
% Change
Average Balances |
|||||||||||||||||||||||||||||||||||||||||||||
Assets
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities
|
$ | 145,520 | $ | 534 | 1.47 | % |
|
$ | 120,843 | $ | 706 | 2.34 | % |
|
20.4 | % | ||||||||||||||||||||||||||||||||||||
Loans held for sale
|
10,032 | 67 | 2.69 |
|
4,748 | 44 | 3.75 |
|
* | |||||||||||||||||||||||||||||||||||||||||||
Loans (b)
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Commercial
|
102,091 | 673 | 2.67 |
|
105,987 | 941 | 3.57 |
|
(3.7 | ) | ||||||||||||||||||||||||||||||||||||||||||
Commercial real estate
|
38,786 | 305 | 3.19 |
|
40,078 | 428 | 4.30 |
|
(3.2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Residential mortgages
|
75,201 | 645 | 3.44 |
|
70,892 | 663 | 3.74 |
|
6.1 | |||||||||||||||||||||||||||||||||||||||||||
Credit card
|
21,144 | 578 | 11.08 |
|
23,836 | 659 | 11.11 |
|
(11.3 | ) | ||||||||||||||||||||||||||||||||||||||||||
Other retail
|
56,767 | 532 | 3.80 |
|
56,864 |
|
|
|
632 | 4.47 |
|
(.2 | ) | |||||||||||||||||||||||||||||||||||||||
Total loans
|
293,989 | 2,733 | 3.76 |
|
297,657 | 3,323 | 4.49 |
|
(1.2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Other earning assets
|
48,170 | 33 | .27 |
|
24,474 |
|
|
|
69 | 1.14 |
|
96.8 | ||||||||||||||||||||||||||||||||||||||||
Total earning assets
|
497,711 | 3,367 | 2.73 |
|
447,722 | 4,142 | 3.71 |
|
11.2 | |||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses
|
(7,272 | ) |
|
(5,588 | ) |
|
(30.1 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on investment securities
|
1,838 |
|
1,426 |
|
28.9 | |||||||||||||||||||||||||||||||||||||||||||||||
Other assets
|
56,457 |
|
51,247 |
|
10.2 | |||||||||||||||||||||||||||||||||||||||||||||||
Total assets
|
$ | 548,734 |
|
$ | 494,807 |
|
10.9 | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Shareholders’ Equity
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits
|
$ | 118,352 |
|
$ | 74,142 |
|
59.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Interest checking
|
97,385 | 6 | .02 |
|
77,359 | 39 | .21 |
|
25.9 | |||||||||||||||||||||||||||||||||||||||||||
Money market savings
|
124,825 | 50 | .16 |
|
121,946 | 311 | 1.02 |
|
2.4 | |||||||||||||||||||||||||||||||||||||||||||
Savings accounts
|
58,848 | 2 | .01 |
|
48,048 | 26 | .22 |
|
22.5 | |||||||||||||||||||||||||||||||||||||||||||
Time deposits
|
26,954 | 27 | .41 |
|
41,309 |
|
|
|
149 | 1.46 |
|
(34.8 | ) | |||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits
|
308,012 | 85 | .11 |
|
288,662 | 525 | .73 |
|
6.7 | |||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings
|
13,107 | 16 | .51 |
|
20,253 | 73 | 1.45 |
|
(35.3 | ) | ||||||||||||||||||||||||||||||||||||||||||
Long-term debt
|
39,463 | 177 | 1.81 |
|
43,846 |
|
|
|
297 | 2.73 |
|
(10.0 | ) | |||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities
|
360,582 | 278 | .31 |
|
352,761 | 895 | 1.02 |
|
2.2 | |||||||||||||||||||||||||||||||||||||||||||
Other liabilities
|
16,441 |
|
16,128 |
|
1.9 | |||||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Preferred equity
|
6,213 |
|
5,984 |
|
3.8 | |||||||||||||||||||||||||||||||||||||||||||||||
Common equity
|
46,516 |
|
45,162 |
|
3.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Total U.S. Bancorp shareholders’ equity
|
52,729 |
|
51,146 |
|
3.1 | |||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests
|
630 |
|
630 |
|
– | |||||||||||||||||||||||||||||||||||||||||||||||
Total equity
|
53,359 |
|
51,776 |
|
3.1 | |||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity
|
$ | 548,734 |
|
$ | 494,807 |
|
10.9 | |||||||||||||||||||||||||||||||||||||||||||||
Net interest income
|
$ | 3,089 |
|
$ | 3,247 |
|
||||||||||||||||||||||||||||||||||||||||||||||
Gross interest margin
|
2.42 | % |
|
|
|
2.69 | % |
|
|
|
||||||||||||||||||||||||||||||||||||||||||
Gross interest margin without taxable-equivalent increments
|
2.40 | % |
|
|
|
2.67 | % |
|
|
|
||||||||||||||||||||||||||||||||||||||||||
Percent of Earning Assets
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income
|
2.73 | % |
|
3.71 | % |
|
||||||||||||||||||||||||||||||||||||||||||||||
Interest expense
|
.23 |
|
|
|
.80 |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
Net interest margin
|
2.50 | % |
|
|
|
2.91 | % |
|
|
|
||||||||||||||||||||||||||||||||||||||||||
Net interest margin without taxable-equivalent increments
|
|
|
|
|
|
|
|
|
|
2.48 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.89 | % |
|
|
|
*
|
Not meaningful
|
(a)
|
Interest and rates are presented on a fully taxable-equivalent basis based on a federal income tax rate of 21 percent.
|
(b)
|
Interest income and rates on loans include loan fees. Nonaccrual loans are included in average loan balances.
|
70
|
U.S. Bancorp |
3.1
|
Restated Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2020). | |||
31.1
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. | |||
31.2
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. | |||
|
32
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. section 1350 as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002. | ||
101.INS
|
XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||
101.SCH
|
XBRL Taxonomy Extension Schema Document. | |||
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document. | |||
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document. | |||
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document. | |||
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document. | |||
104
|
The cover page of U.S. Bancorp’s Quarterly Report on Form
10-Q
for the quarter ended March 31, 2021, formatted in Inline XBRL (included within the Exhibit 101 attachments).
|
U.S. Bancorp |
71
|
U.S. BANCORP | ||||||
By: | /s/ LISA R. STARK | |||||
|
||||||
Dated: May 4, 2021 |
Lisa R. Stark
Controller
(Principal Accounting Officer and Duly Authorized Officer)
|
72
|
U.S. Bancorp |
(1) |
I have reviewed this Quarterly Report on Form
10-Q
of U.S. Bancorp;
|
(2) |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
(3) |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
(4) |
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e)
and
15d-15(e))
and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f)
and
15d-15(f))
for the registrant and have:
|
(a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(5) |
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/S/ ANDREW CECERE |
Andrew Cecere |
Chief Executive Officer
|
U.S. Bancorp |
73
|
(1) |
I have reviewed this Quarterly Report on Form
10-Q
of U.S. Bancorp;
|
(2) |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
(3) |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
(4) |
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e)
and
15d-15(e))
and internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f)
and
15d-15(f))
for the registrant and have:
|
(a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(5) |
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/S/ TERRANCE R. DOLAN |
Terrance R. Dolan
Chief Financial Officer
|
74
|
U.S. Bancorp |
(1) |
The Quarterly Report on Form
10-Q
for the quarter ended March 31, 2021 (the “Form
10-Q”)
of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2) |
The information contained in the Form
10-Q
fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ ANDREW CECERE |
|
/s/ TERRANCE R. DOLAN | ||
Andrew Cecere
Chief Executive Officer
Dated: May 4, 2021
|
Terrance R. Dolan
Chief Financial Officer
|
U.S. Bancorp |
75
|
|
This report has been produced on recycled paper. |
CERTIFICATION PURSUANT TO RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934
I, Andrew Cecere, certify that:
(1) |
I have reviewed this Quarterly Report on Form 10-Q of U.S. Bancorp; |
(2) |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
(3) |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
(4) |
The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) |
evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) |
disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
(5) |
The registrants other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
(b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
/S/ ANDREW CECERE |
Andrew Cecere |
Chief Executive Officer |
Dated: May 4, 2021
EXHIBIT 31.2
CERTIFICATION PURSUANT TO RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934
I, Terrance R. Dolan, certify that:
(1) |
I have reviewed this Quarterly Report on Form 10-Q of U.S. Bancorp; |
(2) |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
(3) |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
(4) |
The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) |
evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) |
disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
(5) |
The registrants other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
(b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
/S/ TERRANCE R. DOLAN |
Terrance R. Dolan Chief Financial Officer |
Dated: May 4, 2021
EXHIBIT 32
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Chief Executive Officer and Chief Financial Officer of U.S. Bancorp, a Delaware corporation (the Company), do hereby certify that:
(1) |
The Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 (the Form 10-Q) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) |
The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ ANDREW CECERE |
|
/s/ TERRANCE R. DOLAN | ||
Andrew Cecere Chief Executive Officer
Dated: May 4, 2021 |
Terrance R. Dolan Chief Financial Officer |