Exhibit 99.1
|
U.S. Bancorp Reports Second Quarter 2022 Results | ||
|
• Net income of $1.5 billion and record net revenue of $6.0 billion • Return on average assets of 1.16% and return on average common equity of 15.3%, excluding merger and integration charges • Common Equity Tier 1 capital ratio of 9.7% and strong levels of liquidity
|
|
2Q22 Key Financial Data |
2Q22 Highlights |
|
|
||||||||||||
| PROFITABILITY METRICS |
2Q22 | 1Q22 | 2Q21 | |||||||||
| Return on average assets (%) |
1.06 | 1.09 | 1.44 | |||||||||
| Return on average common equity (%) |
13.9 | 12.7 | 16.3 | |||||||||
| Return on tangible common equity (%) (a) |
18.6 | 16.6 | 20.9 | |||||||||
| Net interest margin (%) |
2.59 | 2.44 | 2.53 | |||||||||
| Efficiency ratio (%) (a)
|
|
62.1
|
|
|
62.8
|
|
|
59.0
|
| |||
| INCOME STATEMENT (b) |
2Q22 | 1Q22 | 2Q21 | |||||||||
| Net interest income (taxable-equivalent basis) |
$3,464 | $3,200 | $3,164 | |||||||||
| Noninterest income |
$2,548 | $2,396 | $2,619 | |||||||||
| Net income attributable to U.S. Bancorp |
$1,531 | $1,557 | $1,982 | |||||||||
| Diluted earnings per common share |
$.99 | $.99 | $1.28 | |||||||||
| Dividends declared per common share
|
|
$.46
|
|
|
$.46
|
|
|
$.42
|
| |||
| BALANCE SHEET (b) |
2Q22 | 1Q22 | 2Q21 | |||||||||
| Average total loans |
$324,187 | $312,966 | $294,284 | |||||||||
| Average total deposits |
$456,516 | $454,176 | $429,210 | |||||||||
| Net charge-off ratio |
.20% | .21% | .25% | |||||||||
| Book value per common share (period end) |
$28.13 | $29.87 | $31.74 | |||||||||
| Basel III standardized CET1 (c)
|
|
9.7%
|
|
|
9.8%
|
|
|
9.9%
|
| |||
|
| ||||||||||||
| (a) See Non-GAAP Financial Measures reconciliation on page 17 |
| (b) Dollars in millions, except per share data |
| (c) CET1 = Common equity tier 1 capital ratio |
|
• Net revenue of $6,012 million including $3,464 million of net interest income and $2,548 million of noninterest income
• Net income of $1,531 million and diluted earnings per common share of $0.99, including merger and integration charges
• Merger and integration-related charges of $197 million ($153 million net of tax or $(0.10) per diluted common share) related to the planned acquisition of MUFG Union Bank
• Return on average assets of 1.06% and return on average common equity of 13.9%. Excluding merger and integration-related charges, net income of $1,684 million, return on average assets of 1.16% and return on average common equity of 15.3%
• Noninterest income growth of 6.3% linked quarter driven by payment services revenue and trust and investment management fees
• Average total loans growth of 10.2% year-over-year and 3.6% on a linked quarter basis
• Average total deposits growth of 6.4% year-over-year and 0.5% on a linked quarter basis
• Net charge-off ratio of 0.20% in 2Q22 compared with 0.21% in 1Q22 and 0.25% in 2Q21
• CET1 capital ratio of 9.7% at June 30, 2022, compared with 9.8% at March 31, 2022 |
|
CEO Commentary
|
“In the second quarter, we achieved record net revenue totaling $6.0 billion, supported by strong growth in both net interest income and fee revenue. We posted diluted earnings per share of $0.99 including merger and integration-related charges of $(0.10) related to the planned acquisition of MUFG Union Bank. Loan growth was robust, we saw good momentum in our payments businesses reflecting strong business activity and our expense growth was well managed. This quarter our return on tangible common equity was 20.5%, excluding merger and integration-related charges. Credit quality remains strong and our net charge-off ratio improved modestly in the quarter. Given strong loan growth and increased uncertainty surrounding the macro-economic outlook, we increased our loan loss reserve reflecting our through-the-cycle risk management approach. As we head into the second half of the year we face an uncertain economic environment. However, we are well positioned for the range of possible outcomes given strong liquidity and capital ratios, our diversified business mix, and our well-established risk management track record.”
— Andy Cecere, Chairman, President and CEO, U.S. Bancorp
|
In the Spotlight
|
Community Benefits Plan
U.S. Bancorp announced a $100 billion, five-year community benefits plan (CBP) as part of the planned acquisition of MUFG Union Bank. The CBP, which will be effective once the acquisition closes, is intended to continue and expand the important work underway by both organizations to build and support equitable access to capital for the communities we serve. A majority of the commitments, 60% of the total, will support efforts in California, the state most impacted by the acquisition.
U.S. Bank Collaborates to Simplify, Accelerate Supply-Chain Financing
U.S. Bank entered into a collaboration agreement with trade-finance fintech LiquidX® to help expedite and simplify supply-chain transactions between suppliers and buyers. Suppliers and buyers will be able to connect their supply-chain systems directly to U.S. Bank and transact through LiquidX’s easy-to-use platform which is expected to reduce supply-chain-finance friction and cash-flow challenges facing many companies. This collaboration will enable suppliers to be paid nearly immediately and buyers to receive extended payment terms.
Managing Finances and Operations for Small Businesses
U.S. Bank recently launched Business Essentials, a unified platform that provides a one-stop shop in a seamless digital experience. It’s a holistic banking, payments, and software offering for small businesses. Business Essentials is backed by expert human support from bankers who specialize in small business. The platform makes it easy for clients to take care of their financial needs today and provides insights and support to help them make smart decisions for tomorrow.
Spanish-Language Voice Assistant
U.S. Bank is the first financial institution in the United States to offer a Spanish-speaking virtual voice assistant for banking. The Spanish-language version of our best-in-class Smart Assistant in the U.S. Bank Mobile App has the same features and functionality as the popular English-language version. This new technology demonstrates U.S. Bank’s continued emphasis on putting customer experience first, by creating new digital tools that enable them to bank however, whenever and wherever is best for them.
Investor contact: Jennifer Thompson, 612.303.0778 | Media contact: Jeff Shelman, 612.303.9933
|
|
U.S. Bancorp Second Quarter 2022 Results | |
| INCOME STATEMENT HIGHLIGHTS | ||||||||||||||||||||||||||||||||
| ($ in millions, except per-share data) | Percent Change | |||||||||||||||||||||||||||||||
| 2Q 2022 |
1Q 2022 |
2Q 2021 |
2Q22 vs 1Q22 |
2Q22 vs 2Q21 |
YTD 2022 |
YTD 2021 |
Percent Change |
|||||||||||||||||||||||||
| Net interest income |
$3,435 | $ | 3,173 | $ | 3,137 | 8.3 | 9.5 | $ | 6,608 | $ | 6,200 | 6.6 | ||||||||||||||||||||
| Taxable-equivalent adjustment |
29 | 27 | 27 | 7.4 | 7.4 | 56 | 53 | 5.7 | ||||||||||||||||||||||||
| Net interest income (taxable-equivalent basis) |
3,464 | 3,200 | 3,164 | 8.3 | 9.5 | 6,664 | 6,253 | 6.6 | ||||||||||||||||||||||||
| Noninterest income |
2,548 | 2,396 | 2,619 | 6.3 | (2.7 | ) | 4,944 | 5,000 | (1.1) | |||||||||||||||||||||||
| Total net revenue |
6,012 | 5,596 | 5,783 | 7.4 | 4.0 | 11,608 | 11,253 | 3.2 | ||||||||||||||||||||||||
| Noninterest expense before merger and integration |
3,527 | 3,502 | 3,387 | .7 | 4.1 | 7,029 | 6,766 | 3.9 | ||||||||||||||||||||||||
| Merger and integration charges |
197 | -- | -- | nm | nm | 197 | -- | nm | ||||||||||||||||||||||||
| Total noninterest expense |
3,724 | 3,502 | 3,387 | 6.3 | 9.9 | 7,226 | 6,766 | 6.8 | ||||||||||||||||||||||||
| Income before provision and income taxes |
2,288 | 2,094 | 2,396 | 9.3 | (4.5 | ) | 4,382 | 4,487 | (2.3) | |||||||||||||||||||||||
| Provision for credit losses |
311 | 112 | (170 | ) | nm | nm | 423 | (997 | ) | nm | ||||||||||||||||||||||
| Income before taxes |
1,977 | 1,982 | 2,566 | (.3 | ) | (23.0 | ) | 3,959 | 5,484 | (27.8) | ||||||||||||||||||||||
| Income taxes and taxable-equivalent adjustment |
443 | 424 | 578 | 4.5 | (23.4 | ) | 867 |
|
1,211 |
|
(28.4) | |||||||||||||||||||||
| Net income |
1,534 | 1,558 | 1,988 | (1.5 | ) | (22.8 | ) | 3,092 | 4,273 | (27.6) | ||||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests |
(3 | ) | (1 | ) | (6 | ) | nm | 50.0 | (4 | ) | (11 | ) | 63.6 | |||||||||||||||||||
| Net income attributable to U.S. Bancorp |
$1,531 | $ | 1,557 | $ | 1,982 | (1.7 | ) | (22.8 | ) | $ | 3,088 | $ | 4,262 | (27.5) | ||||||||||||||||||
| Net income applicable to U.S. Bancorp common shareholders |
$1,464 | $ | 1,466 | $ | 1,914 | (.1 | ) | (23.5 | ) | $ | 2,930 | $ | 4,089 | (28.3) | ||||||||||||||||||
| Diluted earnings per common share |
$.99 | $ | .99 | $ | 1.28 | -- | (22.7 | ) | $ | 1.97 | $ | 2.73 | (27.8) | |||||||||||||||||||
Net income attributable to U.S. Bancorp was $1,531 million for the second quarter of 2022, which was $451 million lower than the $1,982 million for the second quarter of 2021, and $26 million lower than the $1,557 million for the first quarter of 2022. Diluted earnings per common share were $0.99 in the second quarter of 2022, compared with $1.28 in the second quarter of 2021 and $0.99 in the first quarter of 2022. The second quarter of 2022 included $(0.10) per diluted common share of merger and integration-related charges related to the planned acquisition of MUFG Union Bank.
The decrease in net income year-over-year was primarily due to a higher provision for credit losses primarily driven by strong loan growth and merger and integration-related charges linked to the planned acquisition of MUFG Union Bank. Pretax income before the provision for credit losses and excluding merger and integration-related charges increased 3.7 percent compared with a year ago. Net interest income increased 9.5 percent on a year-over-year taxable-equivalent basis due to higher average loans and investment securities balances as well as rising interest rates and the impact of a favorable yield curve on earning assets, partially offset by deposit pricing and lower loan fees driven by the impact of loan forgiveness related to the SBA Paycheck Protection Program (“PPP”) in the prior year quarter. The net interest margin increased to 2.59 percent in the current quarter from 2.53 percent in the second quarter of 2021 primarily due to the impact of rising interest rates and higher yields on investment securities, partially offset by deposit pricing and lower noninterest-bearing deposits. Noninterest income decreased 2.7 percent compared with a year ago reflecting lower mortgage banking revenue as refinancing activities decline, lower other noninterest income and lower gains on the sale of securities, mostly offset by stronger payment services revenue and trust and investment management fees. Excluding the merger and integration-related charges, noninterest expense increased 4.1 percent reflecting increases in compensation expense, employee benefits expense, and marketing and business development expense. Provision for credit losses reflected a reserve build in the second quarter of 2022 as compared with a reserve release in the second quarter of 2021 driven by a combination of loan growth and economic uncertainty.
2
|
|
U.S. Bancorp Second Quarter 2022 Results | |
Net income decreased on a linked quarter basis driven by higher provision for credit losses and merger and integration-related charges, mostly offset by higher total net revenue. Net interest income increased 8.3 percent on a taxable-equivalent basis primarily due to higher average loans, the impact of rising interest rates on loans and investment securities and one more day in the quarter, partially offset by deposit pricing. The net interest margin increased on a linked quarter basis reflecting the impact of rising interest rates and reinvestment yields on investment securities, partially offset by deposit pricing and lower noninterest-bearing deposits. Noninterest income increased 6.3 percent compared with the first quarter of 2022 driven by stronger payment services revenue, trust and investment management fees and commercial products revenue, partially offset by lower mortgage banking revenue. Excluding the merger and integration-related charges, noninterest expense increased 0.7 percent on a linked quarter basis reflecting seasonally higher compensation expense, marketing and business development expense and other noninterest expense, partially offset by lower employee benefits expense. Provision for credit losses reflected a reserve build in the second quarter of 2022 as compared with a reserve release in the first quarter of 2022 driven by a combination of loan growth and increased economic uncertainty, partially offset by stabilizing credit quality.
3
|
|
U.S. Bancorp Second Quarter 2022 Results | |
Net interest income on a taxable-equivalent basis in the second quarter of 2022 was $3,464 million, an increase of $300 million (9.5 percent) over the second quarter of 2021. The increase was primarily due to higher average loans and investment securities balances in addition to rising interest rates and a favorable yield curve impacting earning assets, partially offset by deposit pricing and lower loan fees driven by the impact of loan forgiveness related to PPP in the second quarter of 2021. Average earning assets were $36.0 billion (7.2 percent) higher than the second quarter of 2021, reflecting increases of $10.7 billion (6.7 percent) in average investment securities and $29.9 billion (10.2 percent) in average total loans, while average interest-bearing deposits with banks decreased $242 million (0.8 percent). The increase in average investment securities year-over-year was primarily due to purchases of mortgage-backed and U.S. Treasury securities, net of prepayments, sales and maturities.
Net interest income on a taxable-equivalent basis increased $264 million (8.3 percent) on a linked quarter basis primarily due to higher average loans, the impact of rising interest rates in the loan and the investment portfolios and one more day in the quarter, partially offset by deposit pricing. Average earning assets were $6.9 billion (1.3 percent) higher on a linked quarter basis, reflecting an increase of $11.2 billion (3.6 percent) in average loans and a decrease of $3.5 billion (2.0 percent) in average investment securities, while average interest-bearing deposits with banks increased $1.3 billion (4.2 percent).
The net interest margin in the second quarter of 2022 was 2.59 percent, compared with 2.53 percent in the second quarter of 2021 and 2.44 percent in the first quarter of 2022. The increase in the net interest margin from the prior year was primarily due to the impact of rising interest rates and higher yields in the investment portfolio, partially offset by deposit pricing and lower noninterest-bearing deposits. The increase in interest margin on a linked quarter basis reflected the impact of rising interest rates and reinvestment yields on investment securities, partially offset by higher deposit rates paid and lower noninterest-bearing deposits.
4
2Q 2022 1Q 2022 2Q 2021 YTD 2022 YTD 2021 Commercial Lease financing Total commercial Commercial mortgages Construction and development Total commercial real estate Residential mortgages Credit card Retail leasing Home equity and second mortgages Other Total other retail Total loans Average total loans for the second quarter of 2022 were $29.9 billion
(10.2 percent) higher than the second quarter of 2021. The increase was primarily due to strong growth in commercial loans (18.5 percent), residential mortgages (9.4 percent) and other retail loans (11.7 percent), partially offset by lower retail
leasing balances (14.8 percent) and construction and development loans (9.2 percent). The increase in commercial loans was due to higher utilization driven by working capital needs of corporate customers, slower
pay-offs given higher volatility in the capital markets and core growth, partly offset by reductions related to the forgiveness of PPP loans. The increase in residential mortgages was driven by stronger on-balance sheet loan activities and slower refinance activity. Average total loans were
$11.2 billion (3.6 percent) higher than the first quarter of 2022 primarily due to higher commercial loans (7.4 percent) driven by continued strong new business and higher utilization, as well as higher residential mortgages (3.6 percent).
5
Noninterest-bearing deposits Interest-bearing savings deposits Interest checking Money market savings Savings accounts Total savings deposits Time deposits Total interest-bearing deposits Total deposits Average total deposits for the second quarter of 2022 were $27.3 billion (6.4 percent) higher than the second quarter of 2021. Average
noninterest-bearing deposits decreased $4.5 billion (3.6 percent) driven by Corporate and Commercial Banking, Consumer and Business Banking and Payment Services. Average total savings deposits were $29.7 billion (10.6 percent) higher
year-over-year driven by Corporate and Commercial Banking and Consumer and Business Banking. Average time deposits were $2.1 billion (8.5 percent) higher than the prior year primarily within Corporate and Commercial Banking, partially offset by
a decrease in Consumer and Business Banking. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics. Average total deposits grew $2.3 billion (0.5 percent) from the first quarter of 2022. On a linked quarter basis, average
noninterest-bearing deposits were lower by $7.1 billion (5.6 percent) driven by Corporate and Commercial Banking and Wealth Management and Investment Services. Average total savings deposits increased $7.2 billion (2.4 percent) across all
business lines. Average time deposits were $2.3 billion (9.4 percent) higher linked quarter primarily within Corporate and Commercial Banking. Changes in time deposits are primarily related to those deposits managed as an alternative to other
funding sources, based largely on relative pricing and liquidity characteristics.
6
2Q 2022 1Q 2022 2Q 2021 2Q22 vs 1Q22 2Q22 vs 2Q21 YTD 2022 YTD 2021 Credit and debit card revenue Corporate payment products revenue Merchant processing services Trust and investment management fees Deposit service charges Treasury management fees Commercial products revenue Mortgage banking revenue Investment products fees Securities gains (losses), net Second quarter noninterest income of $2,548 million was $71 million (2.7 percent) lower than the second quarter of 2021 reflecting
lower mortgage banking revenue, other noninterest income and lower gains on the sale of securities, mostly offset by stronger payment services revenue and trust and investment management fees. Mortgage banking revenue decreased $204 million
(59.0 percent) due to lower application volumes, given declining refinance activities experienced in the mortgage industry, lower related gain on sale margins and lower performing loan sales, partially offset by the favorable net impact of the
change in fair value of mortgage servicing rights, net of hedging activities. Other noninterest income decreased $58 million (29.0 percent) primarily due to lower retail leasing
end-of-term residual gains, lower gain on sale of certain assets and lower tax-advantaged investment syndication revenue.
Partially offsetting these decreases, payment services revenue increased $88 million (9.7 percent) compared with the second quarter of 2021 as corporate payment products revenue increased $34 million (24.6 percent) primarily due to higher
sales volume and merchant processing services revenue increased $51 million (13.6 percent) driven by higher sales volumes and merchant fees. Trust and investment management fees increased $120 million (26.9 percent) driven by business
growth, activity related to the fourth quarter of 2021 acquisition of PFM Asset Management LLC (“PFM”) and lower money market fund fee waivers. Noninterest income was $152 million (6.3 percent) higher in the second quarter of 2022 compared with the first quarter of 2022 reflecting stronger payment services revenue, trust and investment management fees and commercial
products revenue, partially offset by lower mortgage banking revenue. Payment services revenue increased $137 million (15.9 percent) as credit and debit card revenue increased $61 million (18.0 percent) driven by seasonally higher sales
volume and rate, corporate payment products revenue increased $14 million (8.9 percent) primarily due to higher sales volume and merchant processing services revenue increased $62 million (17.1 percent) driven by higher sales volumes and
merchant fees. Trust and investment management fees increased $66 million (13.2 percent) driven by higher fees, activity related to the acquisition of PFM, billing cycle timing and lower money market fund fee waivers, partially offset by
unfavorable market conditions. Partially offsetting these increases, mortgage banking revenue decreased $58 million (29.0 percent) driven by lower application volume and related gain on sale margins, and lower performing loan sales, partially
offset by the favorable net impact of the change in fair value of mortgage servicing rights, net of hedging activities.
7
Compensation Employee benefits Net occupancy and equipment Professional services Marketing and business development Technology and communications Postage, printing and supplies Other intangibles Other Total before merger and integration Merger and integration charges Total noninterest expense Second quarter noninterest expense of $3,724 million was $337 million (9.9 percent) higher than the
second quarter of 2021. Included in the second quarter of 2022 were merger and integration-related charges associated with the planned acquisition of MUFG Union Bank of $197 million. Excluding the merger and integration-related charges, second
quarter noninterest expense increased $140 million (4.1 percent) compared with the second quarter of 2021 reflecting increases in compensation expense, employee benefits expense, and marketing and business development expense. Compensation
expense increased $74 million (4.1 percent) compared with the second quarter of 2021 primarily due to merit and hiring to support business growth, partially offset by lower performance-based incentives. Employee benefits expense increased
$37 million (11.0 percent) driven by higher medical expenses. Marketing and business development expense increased $16 million (17.8 percent) due to increased travel and entertainment. Noninterest expense increased $222 million (6.3 percent) on a linked quarter basis. Excluding merger and integration-related charges, second
quarter noninterest expense increased $25 million (0.7 percent) reflecting higher compensation expense, marketing and business development expense and other noninterest expense, partially offset by lower employee benefits expense. Compensation
expense increased $19 million (1.0 percent) driven by the impact of seasonal merit increases, one additional day in the second quarter, and higher variable compensation, partially offset by the impact of seasonally higher stock-based
compensation in the first quarter. Marketing and business development expense increased $26 million (32.5 percent) due to the timing of marketing campaigns and higher travel and entertainment. Other noninterest expense increased
$18 million (5.6 percent), excluding merger and integration-related charges, primarily due to higher liabilities related to future delivery exposures for merchant and airline processing. Partially offsetting these increases, employee benefits
expense decreased $22 million (5.6 percent) mainly due to seasonally higher payroll taxes in the first quarter of 2022. Provision for Income Taxes The provision for income taxes for the second quarter of 2022 resulted in a tax rate of 22.4 percent on a taxable-equivalent basis (effective tax rate of 21.3 percent), compared with 22.5 percent on a taxable-equivalent
basis (effective tax rate of 21.7 percent) in the second quarter of 2021, and a tax rate of 21.4 percent on a taxable-equivalent basis (effective tax rate of 20.3 percent) in the first quarter of 2022.
8
9
The Company’s provision for credit losses for the second
quarter of 2022 was $311 million, compared with a provision of $112 million in the first quarter of 2022 and a benefit of $170 million in the second quarter of 2021. The level of the provision is driven by strong loan growth from a
year ago and changing economic conditions. During 2021, factors affecting economic conditions, including passing of additional government stimulus and widespread vaccine availability in the U.S., contributed to economic improvement and related
reserve releases. The consumer portfolio performance continues to be supported by strong credit quality and asset values, while select commercial portfolios continue to recover from the effects of the pandemic. In 2022, economic uncertainty and
recession risk has been increasing due to ongoing supply chain challenges, rising inflationary concerns, market volatility, rising oil prices from the Russia-Ukraine conflict and, to a lesser extent, additional virus variants. In addition to these
factors, expected loss estimates consider various factors including customer specific information impacting changes in risk ratings, projected delinquencies, potential effects of inflationary pressures and the impact of rising interest rates on
borrowers’ liquidity and ability to repay. Generally, these credit quality factors continue to be relatively strong despite the changing economic outlook. Total net charge-offs in the second quarter of 2022 were $161 million, compared with $162 million in
the first quarter of 2022 and $180 million in the second quarter of 2021. The net charge-off ratio was 0.20 percent in the second quarter of 2022, compared with 0.21 percent in the first quarter
of 2022 and 0.25 percent in the second quarter of 2021. Net charge-offs decreased $1 million (0.6 percent) compared with the first quarter of 2022. Net charge-offs decreased $19 million (10.6 percent) compared with the second quarter
of 2021 primarily reflecting improvement in credit cards. The allowance for credit losses was
$6,255 million at June 30, 2022, compared with $6,105 million at March 31, 2022, and $6,610 million at June 30, 2021. The increase on a linked quarter basis was driven by continued strong loan growth and increased
economic uncertainty, partially offset by stabilizing credit quality. The ratio of the allowance for credit losses to period-end loans was 1.88 percent at June 30, 2022, compared with
1.91 percent at March 31, 2022, and 2.23 percent at June 30, 2021. The ratio of the allowance for credit losses to nonperforming loans was 863 percent at June 30, 2022, compared with 798 percent at March 31,
2022, and 649 percent at June 30, 2021. Nonperforming assets were $770 million at
June 30, 2022, compared with $811 million at March 31, 2022, and $1,059 million at June 30, 2021. The ratio of nonperforming assets to loans and other real estate was 0.23 percent at June 30, 2022, compared with
0.25 percent at March 31, 2022, and 0.36 percent at June 30, 2021. The year-over-year decrease in nonperforming assets reflected decreases across all loan categories with the largest drivers in total commercial and total
commercial real estate nonperforming loans, while the decrease on a linked quarter basis was primarily due to a decrease in total commercial nonperforming loans. Accruing loans 90 days or more past due were $423 million at June 30, 2022,
compared with $450 million at March 31, 2022, and $376 million at June 30, 2021.
10
Jun 30 2022 Mar 31 2022 Dec 31 2021 Sep 30 2021 Delinquent loan ratios - 90 days or more past due excluding nonperforming loans Commercial Commercial real estate Residential mortgages Credit card Other retail Total loans Delinquent loan ratios - 90 days or more past due including nonperforming loans Commercial Commercial real estate Residential mortgages Credit card Other retail Total loans
11
2Q 2022 1Q 2022 4Q 2021 3Q 2021 2Q 2021 Beginning shares outstanding Shares issued for stock incentive plans, acquisitions and other corporate purposes Shares repurchased Ending shares outstanding Total U.S. Bancorp shareholders’ equity was $48.6 billion at June 30, 2022, compared with
$51.2 billion at March 31, 2022, and $53.0 billion at June 30, 2021. The Company suspended all common stock repurchases at the beginning of the third quarter of 2021, except for those done exclusively in connection with its
stock-based compensation programs, due to its pending acquisition of MUFG Union Bank’s core regional banking franchise. The Company expects to operate at a CET1 capital ratio near its target ratio of 8.5 percent at the time of closing the
acquisition and increasing toward 9.0 percent after closing of the acquisition. The Company does not expect to commence repurchasing its common stock until after the acquisition closes and the CET1 ratio approximates 9.0 percent.
All regulatory ratios continue to be in excess of “well-capitalized” requirements. The
common equity tier 1 capital to risk-weighted assets ratio using the Basel III standardized approach was 9.7 percent at June 30, 2022, compared with 9.8 percent at March 31, 2022, and 9.9 percent at June 30, 2021. The
Company’s common equity tier 1 capital to risk-weighted assets ratio, reflecting the full implementation of the current expected credit losses methodology was 9.4 percent at June 30, 2022, compared with 9.5 percent at
March 31, 2022, and at June 30, 2021.
12
MUFG Union Bank Acquisition In September 2021, U.S. Bancorp announced that it had entered into a definitive
acquisition agreement to acquire the core regional banking franchise of MUFG Union Bank, N.A. Closing of the transaction is subject to customary closing conditions, including regulatory approvals which are not within U.S. Bancorp’s control. The
parties continue to make significant progress in planning for closing and integration while awaiting regulatory approvals. At this time, U.S. Bancorp continues to expect to receive U.S. regulatory approvals in time for closing to occur in the second
half of 2022. However, U.S. Bancorp no longer expects that system integration will be able to occur in 2022 and currently expects it will occur in the first half of 2023. Investor Conference Call On Friday, July 15, 2022 at 8 a.m. CT, Chairman, President and Chief
Executive Officer Andy Cecere and Vice Chair and Chief Financial Officer Terry Dolan will host a conference call to review the financial results. The live conference call will be available online or by telephone. To access the webcast and
presentation, visit the U.S. Bancorp website at usbank.com and click on “About Us”, “Investor Relations” and “Webcasts & Presentations.” To access the conference call from locations within the United States and
Canada, please dial 866-374-5140. Participants calling from outside the United States and Canada, please dial 404-400-0571. The PIN code for all participants is 56931119#. For those unable to participate during the live call, a replay will be available at approximately 11 a.m. CT on Friday, July 15, 2022. To
access the replay, please visit the U.S. Bancorp website at usbank.com and click on “About Us”, “Investor Relations” and “Webcasts & Presentations.” About U.S. Bancorp U.S. Bancorp, with approximately 70,000 employees and $591 billion in assets
as of June 30, 2022, is the parent company of U.S. Bank National Association. The Minneapolis-based company serves millions of customers locally, nationally and globally through a diversified mix of businesses: Consumer and Business Banking;
Payment Services; Corporate & Commercial Banking; and Wealth Management and Investment Services. The company has been recognized for its approach to digital innovation, social responsibility, and customer service, including being named one
of the 2022 World’s Most Ethical Companies and Fortune’s most admired superregional bank. Learn more at usbank.com/about. Forward-looking Statements “Safe Harbor” Statement under the Private Securities Litigation Reform
Act of 1995: This press release contains forward-looking statements about U.S. Bancorp. Statements
that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof.
These forward-looking statements cover, among other things, anticipated future revenue and expenses and the future plans and prospects of U.S. Bancorp. Forward-looking statements often use words such as “anticipates,” “targets,”
“expects,” “hopes,” “estimates,” “projects,” “forecasts,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future
or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements involve inherent risks and uncertainties, including the following risks and
uncertainties and the risks and uncertainties more fully discussed in the section entitled “Risk Factors” of Exhibit 13 to U.S. Bancorp’s Annual Report on Form 10-K for the year ended
December 31, 2021, which could cause actual results to differ materially from those anticipated. Continued deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect
U.S. Bancorp’s revenues and the values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price volatility. In addition, changes to statutes,
regulations, or regulatory policies or practices could affect U.S. Bancorp in substantial and unpredictable ways. U.S. Bancorp’s results could also be adversely affected by changes in interest rates; the impacts of the COVID-19 pandemic on its business, financial position, results of operations, liquidity and prospects; increases in unemployment rates; deterioration in the credit quality of its loan portfolios or in the value of
the collateral securing those loans; deterioration in the value of its investment securities; legal and regulatory developments; litigation; increased competition from both banks and non-banks; civil unrest;
the effects of climate change; changes in customer behavior and preferences; breaches in data security, including as a result of work-from-home arrangements; failures to safeguard personal information; the impacts of international hostilities or
geopolitical events; impacts of supply chain disruptions and rising inflation; effects of mergers and acquisitions and related integration; effects of critical
13
accounting policies and judgments; and management’s
ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk. In addition, U.S. Bancorp’s proposed acquisition of MUFG Union Bank presents
risks and uncertainties, including, among others: the risk that the cost savings, any revenue synergies and other anticipated benefits of the proposed acquisition may not be realized or may take longer than anticipated to be realized; the risk that
U.S. Bancorp’s business could be disrupted as a result of the announcement and pendency of the proposed acquisition and diversion of management’s attention from ongoing business operations and opportunities; the possibility that the
proposed acquisition, including the integration of MUFG Union Bank, may be more costly or difficult to complete than anticipated; delays in closing the proposed acquisition; and the failure of required governmental approvals to be obtained or any
other closing conditions in the definitive purchase agreement to be satisfied. For discussion of
these and other risks that may cause actual results to differ from those described in forward-looking statements, refer to U.S. Bancorp’s Annual Report on Form 10-K for the year ended December 31,
2021, on file with the Securities and Exchange Commission, including the sections entitled “Corporate Risk Profile” and “Risk Factors” contained in Exhibit 13, and all subsequent filings with the Securities and Exchange
Commission under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934. In addition, factors other than these risks also could adversely affect U.S. Bancorp’s results, and the reader should not consider these risks to be a
complete set of all potential risks or uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date hereof, and U.S. Bancorp undertakes no obligation to
update them in light of new information or future events. Non-GAAP Financial
Measures In addition to capital ratios defined by banking regulators, the Company
considers various other measures when evaluating capital utilization and adequacy, including: Tangible common equity to tangible assets Tangible common equity to risk-weighted assets Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the
current expected credit losses methodology, and Return on tangible common equity. These capital measures are viewed by management as useful additional
methods of evaluating the Company’s utilization of its capital held and the level of capital available to withstand unexpected negative market or economic conditions. Additionally, presentation of these measures allows investors, analysts and
banking regulators to assess the Company’s capital position relative to other financial services companies. These capital measures are not defined in generally accepted accounting principles (“GAAP”), or are not currently effective or
defined in banking regulations. In addition, certain of these measures differ from currently effective capital ratios defined by banking regulations principally in that the currently effective ratios, which are subject to certain transitional
provisions, temporarily exclude the impact of the 2020 adoption of accounting guidance related to impairment of financial instruments based on the current expected credit losses methodology. As a result, these capital measures disclosed by the
Company may be considered non-GAAP financial measures. Management believes this information helps investors assess trends in the Company’s capital adequacy. The Company also discloses net interest income and related ratios and analysis on a taxable-equivalent basis,
which may also be considered non-GAAP financial measures. The Company believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net
interest income arising from taxable and tax-exempt sources. In addition, certain performance measures, including the efficiency ratio and net interest margin utilize net interest income on a
taxable-equivalent basis. The adjusted return on average assets, return on average common equity and
return on tangible common equity exclude merger and integration-related charges. Management uses these measures in their analysis of the Company’s performance and believes these measures provide a greater understanding of ongoing operations and
enhances comparability of results with prior periods. There may be limits in the usefulness of these
measures to investors. As a result, the Company encourages readers to consider the consolidated financial statements and other financial information contained in this press release in their entirety, and not to rely on any single financial measure.
A table follows that shows the Company’s calculation of these non-GAAP financial measures.
14
Interest Income Loans Loans held for sale Investment securities Other interest income Total interest income Interest Expense Deposits Short-term borrowings Long-term debt Total interest expense Net interest income Provision for credit losses Net interest income after provision for credit losses Noninterest Income Credit and debit card revenue Corporate payment products revenue Merchant processing services Trust and investment management fees Deposit service charges Treasury management fees Commercial products revenue Mortgage banking revenue Investment products fees Securities gains (losses), net Other Total noninterest income Noninterest Expense Compensation Employee benefits Net occupancy and equipment Professional services Marketing and business development Technology and communications Postage, printing and supplies Other intangibles Merger and integration charges Other Total noninterest expense Income before income taxes Applicable income taxes Net income Net (income) loss attributable to noncontrolling interests Net income attributable to U.S. Bancorp Net income applicable to U.S. Bancorp common shareholders Earnings per common share Diluted earnings per common share Dividends declared per common share Average common shares outstanding Average diluted common shares outstanding 15
June 30, 2022 December 31, 2021 June 30, 2021 Assets Cash and due from banks Investment securities Held-to-maturity Available-for-sale Loans held for sale Loans Commercial Commercial real estate Residential mortgages Credit card Other retail Total loans Less allowance for loan losses Net loans Premises and equipment Goodwill Other intangible assets Other assets Total assets Liabilities and Shareholders’ Equity Deposits Noninterest-bearing Interest-bearing Total deposits Short-term borrowings Long-term debt Other liabilities Total liabilities Shareholders’ equity Preferred stock Common stock Capital surplus Retained earnings Less treasury stock Accumulated other comprehensive income (loss) Total U.S. Bancorp shareholders’ equity Noncontrolling interests Total equity Total liabilities and equity 16
June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 Total equity Preferred stock Noncontrolling interests Goodwill (net of deferred tax liability) (1) Intangible assets, other than mortgage servicing rights Tangible common equity (a) Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements
related to the current expected credit losses methodology implementation Adjustments (2) Common equity tier 1 capital, reflecting the full implementation of the current expected credit
losses Total assets Goodwill (net of deferred tax liability) (1) Intangible assets, other than mortgage servicing rights Tangible assets (c) Risk-weighted assets, determined in accordance with transitional regulatory capital requirements related to
the current expected credit losses methodology implementation (d) Adjustments (3) Risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology
(e) Ratios* Tangible common equity to tangible assets (a)/(c) Tangible common equity to risk-weighted assets (a)/(d) Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current
expected credit losses methodology (b)/(e) June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 Net income applicable to U.S. Bancorp common shareholders Intangibles amortization
(net-of-tax) Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangible amortization
(f) Average total equity Average preferred stock Average noncontrolling interests Average goodwill (net of deferred tax liability) (1) Average intangible assets, other than mortgage servicing rights Average tangible common equity (g) Return on tangible common equity (f)/(g) Net interest income Taxable-equivalent adjustment (4) Net interest income, on a taxable-equivalent basis Net interest income, on a taxable-equivalent basis (as calculated above) Noninterest income Less: Securities gains (losses), net Total net revenue, excluding net securities gains (losses) (h) Noninterest expense (i) Efficiency ratio (i)/(h) Preliminary data. Subject to change prior to filings with applicable regulatory agencies. Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory
requirements. Includes the estimated increase in the allowance for credit losses related to the adoption of the current expected
credit losses methodology net of deferred taxes. Includes the impact of the estimated increase in the allowance for credit losses related to the adoption of the current
expected credit losses methodology. 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. 17
Three Months Ended 2022 Net income attributable to U.S. Bancorp Less: Notable items (1) Net income attributable to U.S. Bancorp, excluding notable items Annualized net income attributable to U.S. Bancorp, excluding notable items (a) Average assets (b) Return on average assets, excluding notable items (a)/(b) Net income applicable to U.S. Bancorp common shareholders Less: Notable items (1) Net income applicable to U.S. Bancorp common shareholders, excluding notable items Annualized net income applicable to U.S. Bancorp common shareholders, excluding notable items (c) Average common equity (d) Return on average common equity, excluding notable items (c)/(d) Net income applicable to U.S. Bancorp common shareholders Intangibles amortization
(net-of-tax) Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization Less: Notable items (1) Net income applicable to U.S. Bancorp, excluding intangibles amortization and notable items Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization
and notable items (e) Average total equity Average preferred stock Average noncontrolling interests Average goodwill (net of deferred tax liability) (2) Average intangible assets, other than mortgage servicing rights Average tangible common equity (f) Return on tangible common equity, excluding notable items
(e)/(f) Notable items for the three months ended June 30, 2022 include $153 million
(after-tax) of merger and integration charges. Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory
requirements. 18
2Q 2022 1Q 2022 2Q 2021 2Q22 vs 1Q22 2Q22 vs 2Q21 YTD 2022 YTD 2021 Percent Change Corporate and Commercial Banking Consumer and Business Banking Wealth Management and Investment Services Payment Services Treasury and Corporate Support Consolidated Company 2Q 2022 1Q 2022 2Q 2021 2Q22 vs 1Q22 2Q22 vs 2Q21 YTD 2022 YTD 2021 Percent Change Corporate and Commercial Banking Consumer and Business Banking Wealth Management and Investment Services Payment Services Treasury and Corporate Support Consolidated Company (a) preliminary data Lines of Business The Company’s major lines of business are Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management
and Investment Services, Payment Services, and Treasury and Corporate Support. These operating segments are components of the Company about which financial information is prepared and is evaluated regularly by management in deciding how to allocate
resources and assess performance. Business line results are derived from the Company’s business unit profitability reporting systems by specifically attributing managed balance sheet assets, deposits and other liabilities and their related
income or expense. Designations, assignments and allocations change from time to time as management systems are enhanced, methods of evaluating performance or product lines change or business segments are realigned to better respond to the
Company’s diverse customer base. During 2022, certain organization and methodology changes were made and, accordingly, prior period results were restated and presented on a comparable basis.
2
Corporate and Commercial Banking offers lending, equipment finance and small-ticket leasing, depository services, treasury management, capital markets services, international trade services and other financial services to
middle market, large corporate, commercial real estate, financial institution, non-profit and public sector clients. Corporate and Commercial Banking generated $603 million of income before provision and taxes in the second
quarter of 2022, compared with $558 million in the second quarter of 2021, and contributed $377 million of the Company’s net income in the second quarter of 2022. The provision for credit losses increased $100 million compared
with the second quarter of 2021 primarily due to loan loss provisions supporting stronger growth in loan balances in the current year linked quarter, partially offset by improving portfolio credit quality in the current year. Total net revenue was
$65 million (6.6 percent) higher due to an increase of $58 million (8.0 percent) in net interest income and an increase of $7 million (2.6 percent) in total noninterest income. Net interest income increased primarily due to higher
loan and interest-bearing deposit balances, partially offset by lower spreads on loans and unfavorable changes in deposit rates. Total noninterest income increased primarily due to stronger treasury management fees driven by core growth and
increased federal government volume. Total noninterest expense increased $20 million (4.6 percent) compared with a year ago primarily due to higher FDIC insurance expense and higher compensation expense primarily due to merit, variable
compensation and hiring to support business growth, partially offset by lower performance-based incentives related to capital markets activity.
3
Consumer and Business Banking delivers products and services through banking offices, telephone servicing and sales, on-line services, direct mail, ATM processing and mobile
devices. It encompasses community banking, metropolitan banking and indirect lending, as well as mortgage banking. Consumer and Business Banking generated $593 million of income before provision and taxes in the second quarter of 2022, compared with $793 million in the second quarter of 2021, and contributed $501 million of the
Company’s net income in the second quarter of 2022. The provision for credit losses decreased $7 million (10.3 percent) due to balance reductions and stronger improvements in credit quality in the current quarter compared with the prior
year linked quarter. Total net revenue was lower by $156 million (7.2 percent) due to a decrease in total noninterest income of $239 million (37.7 percent), partially offset by an increase of $83 million (5.4 percent) in net interest
income. Net interest income reflected strong growth in average interest-bearing deposits and favorable funding mix, partially offset by lower spreads on loans and lower loan fees driven by the impact of loan forgiveness related to PPP in the second
quarter of 2021. Total noninterest income decreased primarily due to lower mortgage banking revenue reflecting lower application volumes, given declining refinance activities, lower related gain on sale margins and lower performing loan sales,
partially offset by the favorable net impact of the change in fair value of mortgage servicing rights, net of hedging activities. Total noninterest expense increased $44 million (3.2 percent) primarily due to increases in net shared services
expense due to investments in digital capabilities, partially offset by lower compensation expense reflecting lower revenue-related compensation due to mortgage production net of higher salaries as a result of merit and core business growth.
4
Wealth Management and Investment
Services provides private banking, financial advisory services, investment management, retail brokerage services, insurance, trust, custody and fund servicing through four
businesses: Wealth Management, Global Corporate Trust & Custody, U.S. Bancorp Asset Management and Fund Services. Wealth Management and Investment Services generated $423 million of income before provision and taxes in the second quarter of 2022, compared with $274 million in the second quarter of 2021, and contributed
$320 million of the Company’s net income in the second quarter of 2022. The provision for credit losses was unchanged compared with the prior year quarter. Total net revenue increased $209 million (26.3 percent) year-over-year
reflecting an increase of $106 million (43.1 percent) in net interest income and an increase of $103 million (18.8 percent) in total noninterest income. Net interest income increased primarily due to favorable funding mix, higher average
noninterest-bearing deposits and higher average loan balances. Total noninterest income increased primarily due to lower money market fund fee waivers, the impact of the PFM acquisition and core business growth in trust and investment management
fees. Total noninterest expense increased $60 million (11.5 percent) compared with the second quarter of 2021 reflecting higher compensation expense as a result of merit, the PFM acquisition, core business growth and performance-based
incentives, as well as higher net shared services expense driven by investment in support of business growth.
5
Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate, government and purchasing card services, consumer lines of credit and merchant processing. Payment Services generated $742 million of income before provision and taxes in the second quarter of 2022,
compared with $679 million in the second quarter of 2021, and contributed $391 million of the Company’s net income in the second quarter of 2022. The provision for credit losses increased $130 million primarily due to stronger
growth in loan balances in the current year linked quarter and relatively stable credit quality in the current period compared with a stronger reduction in delinquencies in the prior year quarter. Total net revenue increased $105 million (7.0
percent) due to higher net interest income of $24 million (4.0 percent) and higher total noninterest income of $81 million (8.9 percent). Net interest income increased primarily due to higher loan balances and loan fees, partially offset
by lower loan yields driven by declining customer revolve rates. Total noninterest income increased year-over-year mainly due to continued strengthening of consumer and business spending across most sectors. As a result, there was strong growth in
merchant processing services revenue driven by higher sales volume and higher merchant fees, partially offset by higher rebates, as well as solid growth in corporate payment products revenue driven by improving business spending across all product
groups. Strong sales also drove an increase in credit and debit card revenue, mostly offset by declining prepaid processing fees as the beneficial impact of government stimulus programs dissipated year-over-year. Total noninterest expense increased
$42 million (5.1 percent) reflecting higher net shared services expense driven by investment in infrastructure and technology development, in addition to higher compensation expense due to merit, core business growth and variable compensation.
6
Treasury and Corporate Support includes the Company’s investment portfolios, funding, capital management, interest rate risk management, income taxes not allocated to the business lines, including most investments in tax-advantaged projects, and the residual aggregate of those expenses associated with corporate activities that are managed on a consolidated basis. Treasury and Corporate Support generated a $73 million loss before provision and taxes in the second quarter
of 2022, compared with $92 million of income before provision and taxes in the second quarter of 2021, and recorded a net loss of $58 million in the second quarter of 2022. The provision for credit losses increased $258 million
reflecting the increase in allowance for credit losses due to increasing economic uncertainty in the current quarter relative to the reduction in the allowance for credit losses associated with improving economic conditions in the second quarter of
2021. Total net revenue was higher by $6 million (1.9 percent) due to an increase of $29 million (46.0 percent) in net interest income, mostly offset by a decrease of $23 million (8.9 percent) in total noninterest income. Net interest
income increased primarily due to higher investment portfolio and cash balances. The decrease in total noninterest income was primarily due to lower securities gains and lower gains on the disposition of assets, partially offset by higher commercial
products revenue. Total noninterest expense increased $171 million (74.7 percent) primarily due to merger and integration-related charges related to the acquisition of MUFG Union Bank and higher compensation expense reflecting merit, hiring to
support business growth and core business growth net of lower variable compensation, partially offset by lower net shared services costs. Income taxes are assessed to each line of business at a managerial tax rate of 25.0 percent with the
residual tax expense or benefit to arrive at the consolidated effective tax rate included in Treasury and Corporate Support.
7
U.S. Bancorp Second Quarter 2022 Results
AVERAGE LOANS
($ in millions)
Percent Change
2Q22 vs
1Q22
2Q22 vs
2Q21
Percent
Change
$115,758
$107,819
$97,713
7.4
18.5
$
111,810
$
97,237
15.0
4,899
5,003
5,261
(2.1
)
(6.9
)
4,951
5,298
(6.5
)
120,657
112,822
102,974
6.9
17.2
116,761
102,535
13.9
29,676
28,826
27,721
2.9
7.1
29,253
27,844
5.1
9,841
10,258
10,843
(4.1
)
(9.2
)
10,049
10,831
(7.2
)
39,517
39,084
38,564
1.1
2.5
39,302
38,675
1.6
80,228
77,449
73,351
3.6
9.4
78,847
74,271
6.2
22,748
21,842
21,116
4.1
7.7
22,297
21,130
5.5
6,708
7,110
7,873
(5.7
)
(14.8
)
6,908
7,924
(12.8
)
10,726
10,394
11,368
3.2
(5.6
)
10,561
11,713
(9.8
)
43,603
44,265
39,038
(1.5
)
11.7
43,932
37,890
15.9
61,037
61,769
58,279
(1.2
)
4.7
61,401
57,527
6.7
$324,187
$312,966
$294,284
3.6
10.2
$
318,608
$
294,138
8.3
U.S. Bancorp Second Quarter 2022 Results
AVERAGE DEPOSITS
($ in millions)
Percent Change
2Q
1Q
2Q
2Q22 vs
2Q22 vs
YTD
YTD
Percent
2022
2022
2021
1Q22
2Q21
2022
2021
Change
$
120,827
$
127,963
$
125,297
(5.6
)
(3.6
)
$
124,375
$
121,844
2.1
116,878
115,062
103,356
1.6
13.1
115,975
100,387
15.5
123,788
119,588
113,673
3.5
8.9
121,700
119,218
2.1
68,127
66,978
62,102
1.7
9.7
67,555
60,484
11.7
308,793
301,628
279,131
2.4
10.6
305,230
280,089
9.0
26,896
24,585
24,782
9.4
8.5
25,747
25,862
(.4
)
335,689
326,213
303,913
2.9
10.5
330,977
305,951
8.2
$
456,516
$
454,176
$
429,210
.5
6.4
$
455,352
$
427,795
6.4
U.S. Bancorp Second Quarter 2022 Results
NONINTEREST INCOME
($ in millions)
Percent Change
Percent
Change
$399
$338
$396
18.0
.8
$737
$732
.7
172
158
138
8.9
24.6
330
264
25.0
425
363
374
17.1
13.6
788
692
13.9
566
500
446
13.2
26.9
1,066
890
19.8
165
177
176
(6.8
)
(6.3
)
342
337
1.5
169
156
160
8.3
5.6
325
307
5.9
290
266
280
9.0
3.6
556
560
(.7
)
142
200
346
(29.0
)
(59.0
)
342
645
(47.0
)
59
62
60
(4.8
)
(1.7
)
121
115
5.2
19
18
43
5.6
(55.8
)
37
68
(45.6
)
Other
142
158
200
(10.1
)
(29.0
)
300
390
(23.1
)
Total noninterest income
$
2,548
$
2,396
$
2,619
6.3
(2.7
)
$
4,944
$
5,000
(1.1
)
U.S. Bancorp Second Quarter 2022 Results
NONINTEREST EXPENSE
($ in millions)
Percent Change
2Q
2022
1Q
2022
2Q
2021
2Q22 vs
1Q22
2Q22 vs
2Q21
YTD
2022
YTD
2021
Percent
Change
$
1,872
$
1,853
$
1,798
1.0
4.1
$
3,725
$
3,601
3.4
374
396
337
(5.6
)
11.0
770
721
6.8
265
269
258
(1.5
)
2.7
534
521
2.5
111
114
108
(2.6
)
2.8
225
206
9.2
106
80
90
32.5
17.8
186
138
34.8
350
349
362
.3
(3.3
)
699
721
(3.1
)
69
72
65
(4.2
)
6.2
141
134
5.2
40
47
40
(14.9
)
--
87
78
11.5
340
322
329
5.6
3.3
662
646
2.5
3,527
3,502
3,387
.7
4.1
7,029
6,766
3.9
197
--
--
nm
nm
197
--
nm
$
3,724
$
3,502
$
3,387
6.3
9.9
$
7,226
$
6,766
6.8
U.S. Bancorp Second Quarter 2022 Results
U.S. Bancorp Second Quarter 2022 Results
U.S. Bancorp Second Quarter 2022 Results
DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES
(Percent)
Jun 30
2021
.07
.06
.04
.04
.04
.01
--
.03
.05
.01
.12
.18
.24
.15
.16
.69
.74
.73
.66
.70
.10
.11
.11
.11
.10
.13
.14
.15
.13
.13
.19
.21
.20
.25
.32
.53
.55
.76
.82
.81
.40
.45
.53
.47
.49
.69
.74
.73
.66
.70
.35
.37
.35
.36
.39
.35
.38
.42
.43
.47
U.S. Bancorp Second Quarter 2022 Results
COMMON SHARES
(Millions)
1,486
1,484
1,483
1,483
1,497
--
3
1
--
1
--
(1
)
--
--
(15
)
1,486
1,486
1,484
1,483
1,483
U.S. Bancorp Second Quarter 2022 Results
U.S. Bancorp Second Quarter 2022 Results
•
•
•
•
CONSOLIDATED STATEMENT OF INCOME
Three Months Ended
Six Months Ended
(Dollars and Shares in Millions, Except Per Share Data)
June 30,
June 30,
(Unaudited)
2022
2021
2022
2021
$2,869
$2,677
$5,468
$5,401
54
55
114
122
806
618
1,523
1,135
96
32
138
65
3,825
3,382
7,243
6,723
177
82
257
167
57
18
78
34
156
145
300
322
390
245
635
523
3,435
3,137
6,608
6,200
311
(170
)
423
(997
)
3,124
3,307
6,185
7,197
399
396
737
732
172
138
330
264
425
374
788
692
566
446
1,066
890
165
176
342
337
169
160
325
307
290
280
556
560
142
346
342
645
59
60
121
115
19
43
37
68
142
200
300
390
2,548
2,619
4,944
5,000
1,872
1,798
3,725
3,601
374
337
770
721
265
258
534
521
111
108
225
206
106
90
186
138
350
362
699
721
69
65
141
134
40
40
87
78
197
--
197
--
340
329
662
646
3,724
3,387
7,226
6,766
1,948
2,539
3,903
5,431
414
551
811
1,158
1,534
1,988
3,092
4,273
(3
)
(6
)
(4
)
(11
)
$1,531
$1,982
$3,088
$4,262
$1,464
$1,914
$2,930
$4,089
$.99
$1.29
$1.97
$2.73
$.99
$1.28
$1.97
$2.73
$.46
$.42
$.92
$.84
1,486
1,489
1,485
1,495
1,487
1,490
1,486
1,497
CONSOLIDATED ENDING BALANCE SHEET
(Dollars in Millions)
(Unaudited
)
(Unaudited
)
$39,124
$28,905
$44,573
61,503
41,858
--
98,806
132,963
160,288
3,943
7,775
5,856
125,983
112,023
103,521
39,753
39,053
38,770
82,114
76,493
73,366
23,697
22,500
21,816
60,822
61,959
59,439
332,369
312,028
296,912
(5,832
)
(5,724
)
(6,026
)
326,537
306,304
290,886
3,177
3,305
3,295
10,157
10,262
9,911
4,487
3,738
3,363
43,647
38,174
40,714
$591,381
$573,284
$558,886
$129,130
$134,901
$135,143
337,972
321,182
302,039
467,102
456,083
437,182
24,963
11,796
13,413
29,408
32,125
36,360
20,839
17,893
18,257
542,312
517,897
505,212
6,808
6,371
5,968
21
21
21
8,555
8,539
8,518
70,772
69,201
67,039
(27,190
)
(27,271
)
(27,305
)
(10,361
)
(1,943
)
(1,202
)
48,605
54,918
53,039
464
469
635
49,069
55,387
53,674
$591,381
$573,284
$558,886
NON-GAAP FINANCIAL MEASURES
(Dollars in Millions, Unaudited)
$49,069
$51,668
$55,387
$54,378
$53,674
(6,808
)
(6,808
)
(6,371
)
(5,968
)
(5,968
)
(464
)
(468
)
(469
)
(635
)
(635
)
(9,204
)
(9,304
)
(9,323
)
(9,063
)
(8,987
)
(780
)
(762
)
(785
)
(618
)
(650
)
31,813
34,326
38,439
38,094
37,434
42,944
41,950
41,701
41,014
39,691
(1,300
)
(1,298
)
(1,733
)
(1,733
)
(1,732
)
methodology (b)
41,644
40,652
39,968
39,281
37,959
591,381
586,517
573,284
567,495
558,886
(9,204
)
(9,304
)
(9,323
)
(9,063
)
(8,987
)
(780
)
(762
)
(785
)
(618
)
(650
)
581,397
576,451
563,176
557,814
549,249
441,804
*
427,174
418,571
404,021
401,301
(317
)*
(351
)
(357
)
(684
)
(1,027
)
441,487
*
426,823
418,214
403,337
400,274
5.5
%
6.0
%
6.8
%
6.8
%
6.8
%
7.2
8.0
9.2
9.4
9.3
9.4
9.5
9.6
9.7
9.5
Three Months Ended
$1,464
$1,466
$1,582
$1,934
$1,914
32
37
32
32
32
1,496
1,503
1,614
1,966
1,946
6,000
6,096
6,403
7,800
7,805
49,633
53,934
55,875
54,908
53,593
(6,808
)
(6,619
)
(6,865
)
(5,968
)
(5,968
)
(467
)
(468
)
(633
)
(635
)
(631
)
(9,246
)
(9,320
)
(9,115
)
(9,019
)
(9,003
)
(783
)
(779
)
(656
)
(632
)
(662
)
32,329
36,748
38,606
38,654
37,329
18.6
%
16.6
%
16.6
%
20.2
%
20.9
%
$3,435
$3,173
$3,123
$3,171
$3,137
29
27
27
26
27
3,464
3,200
3,150
3,197
3,164
3,464
3,200
3,150
3,197
3,164
2,548
2,396
2,534
2,693
2,619
19
18
15
20
43
5,993
5,578
5,669
5,870
5,740
3,724
3,502
3,533
3,429
3,387
62.1
%
62.8
%
62.3
%
58.4
%
59.0
%
*
(1)
(2)
(3)
(4)
NON-GAAP FINANCIAL MEASURES
(Dollars in Millions, Unaudited)
June 30,
$1,531
(153
)
1,684
6,755
579,911
1.16
%
$1,464
(153
)
1,617
6,486
42,358
15.3
%
$1,464
32
1,496
(153
)
1,649
6,614
49,633
(6,808
)
(467
)
(9,246
)
(783
)
32,329
20.5
%
(1)
(2)
LINE OF BUSINESS FINANCIAL PERFORMANCE (a)
($ in millions)
Net Income Attributable
to U.S. Bancorp
Percent Change
Net Income Attributable
to U.S. Bancorp
Business Line
$377
$416
$418
(9.4
)
(9.8
)
$793
$880
(9.9
)
501
379
646
32.2
(22.4
)
880
1,211
(27.3
)
320
202
208
58.4
53.8
522
429
21.7
391
371
441
5.4
(11.3
)
762
934
(18.4
)
(58
)
189
269
nm
nm
131
808
(83.8
)
$1,531
$1,557
$1,982
(1.7
)
(22.8
)
$3,088
$4,262
(27.5
)
Income Before Provision
and Taxes
Percent Change
Income Before Provision
and Taxes
$603
$559
$558
7.9
8.1
$1,162
$1,128
3.0
593
553
793
7.2
(25.2
)
1,146
1,507
(24.0
)
423
278
274
52.2
54.4
701
574
22.1
742
625
679
18.7
9.3
1,367
1,295
5.6
(73
)
79
92
nm
nm
6
(17)
nm
$2,288
$2,094
$2,396
9.3
(4.5
)
$4,382
$4,487
(2.3
)
