Exhibit 99.1
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U.S. Bancorp Reports Third Quarter 2022 Results | ||
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• Net income of $1.8 billion and record net revenue of $6.3 billion | |
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• Diluted earnings per common share of $1.16 or $1.18 as adjusted | ||
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• Return on average assets of 1.22% and return on average common equity of 15.8% or 1.24% and 16.2% as adjusted, respectively
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3Q22 Key Financial Data |
3Q22 Highlights |
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| PROFITABILITY METRICS |
3Q22 | 2Q22 | 3Q21 | |||||||||
| Return on average assets (%) |
1.22 | 1.06 | 1.45 | |||||||||
| Return on average common equity (%) |
15.8 | 13.9 | 15.9 | |||||||||
| Return on tangible common equity (%) (a) |
21.0 | 18.6 | 20.2 | |||||||||
| Net interest margin (%) |
2.83 | 2.59 | 2.53 | |||||||||
| Efficiency ratio (%) (a)
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57.5
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62.1
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58.4
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| INCOME STATEMENT (b) |
3Q22 | 2Q22 | 3Q21 | |||||||||
| Net interest income (taxable-equivalent basis) |
$3,857 | $3,464 | $3,197 | |||||||||
| Noninterest income |
$2,469 | $2,548 | $2,693 | |||||||||
| Net income attributable to U.S. Bancorp |
$1,812 | $1,531 | $2,028 | |||||||||
| Diluted earnings per common share
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$1.16 | $.99 | $1.30 | |||||||||
| Dividends declared per common share
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$.48
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$.46
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$.46
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| BALANCE SHEET (b) |
3Q22 | 2Q22 | 3Q21 | |||||||||
| Average total loans |
$336,778 | $324,187 | $296,739 | |||||||||
| Average total deposits |
$456,769 | $456,516 | $431,487 | |||||||||
| Net charge-off ratio |
.19% | .20% | .20% | |||||||||
| Book value per common share (period end) |
$27.39 | $28.13 | $32.22 | |||||||||
| Basel III standardized CET1 (c) |
9.7% | 9.7% | 10.2% | |||||||||
| (a) See Non-GAAP Financial Measures reconciliation on page 17 |
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| (b) Dollars in millions, except per share data |
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| (c) CET1 = Common equity tier 1 capital ratio |
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• Net income of $1,812 million and diluted earnings per common share of $1.16 as reported, $1.18 excluding merger and integration-related charges
• Net revenue of $6,326 million including $3,857 million of net interest income and $2,469 million of noninterest income
• Merger and integration-related charges of $42 million ($33 million net of tax or $(0.02) per diluted common share) associated with the planned acquisition of MUFG Union Bank
• Return on average assets of 1.22% and return on average common equity of 15.8%. Excluding merger and integration-related charges, net income of $1,845 million, return on average assets of 1.24% and return on average common equity of 16.2%
• On a taxable-equivalent basis, net interest income increased 20.6 percent year-over-year and 11.3 percent linked quarter due to the impact of rising interest rates on earning assets, partially offset by deposit pricing
• Average total loan growth of 13.5% year-over-year and 3.9% on a linked quarter basis
• Average total deposit growth of 5.9% year-over-year and 0.1% on a linked quarter basis
• Net charge-off ratio of 0.19% in 3Q22 compared with 0.20% in 2Q22 and in 3Q21
• CET1 capital ratio of 9.7% at September 30, 2022, and at June 30, 2022 |
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CEO Commentary
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“In the third quarter we earned $1.8 billion in net income with net revenue of $6.3 billion and a return on tangible common equity of 21.0% on a reported basis. Results were driven by strong growth in net interest income supported by loan and deposit growth and the benefit of higher interest rates. Our fee businesses continued to benefit from good underlying consumer and business conditions as well as new business and deepening of relationships. Credit quality remains strong and in the third quarter our net charge-off ratio improved on both a sequential and year over year basis. While credit continues to perform well, our consistently strong underwriting and credit risk management practices prepare us well for any change in the business cycle. We continue to focus on maintaining a healthy balance sheet and strong capital and liquidity positions. Given the uncertain economic environment, we are preparing for a range of possible outcomes and will continue to manage the bank in a prudent, disciplined manner. I want to thank our employees for their dedication to helping our clients, communities and shareholders.”
— Andy Cecere, Chairman, President and CEO, U.S. Bancorp
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In the Spotlight
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U.S. Bank and Elavon launch talech Register for Small Businesses
Elavon, a wholly-owned subsidiary of U.S. Bank, recently launched talech Register, a next generation, all-in-one payments and business analytics platform that empowers small business owners to better manage their operations. The point-of-sale platform combines unique, pay-as-you-go pricing and ease-of use to support modern small business owners. talech Register brings the simplicity, convenience and efficiency of the talech software platform to the point of sale for small business owners.
U.S. Bank Invests in Green Energy Initiatives
The U.S. Bank Foundation will invest $1 million in green energy initiatives through its annual Market Impact Grant program. The funding will support a variety of organizations and programs in low-to-moderate income communities across the country with an emphasis on supporting people of color and women. Additionally, our Community Development business has invested approximately $2.2 billion in renewable energy projects since the beginning of the year in support of green energy initiatives.
Access Commitment Expands to the Hispanic and Latinx Community
U.S. Bank recently announced an investment in the Smithsonian’s National Museum of the American Latino in Washington D.C. The museum is the cornerstone to learn how Latinos have contributed to U.S. art, history, culture and science. The investment is part of U.S. Bank Access Commitment, the bank’s long-term approach to building wealth, redefining how we serve diverse communities and creating more opportunities for employees.
One of the Best Companies for Working Parents
Seramount, formerly Working Mother, ranked U.S. Bank as one of the 100 Best Companies for working parents based on the company’s programs and benefits, including parental leave, fertility benefits, adoption benefits, caregiver benefits, mentoring and opportunities for advancement. This is the third consecutive year U.S. Bank has won this honor, which underscores how U.S. Bank puts people first by continuously looking for ways to better support employees.
Investor contact: George Andersen, 612.303.3620 | Media contact: Jeff Shelman, 612.303.9933
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U.S. Bancorp Third Quarter 2022 Results | |
| INCOME STATEMENT HIGHLIGHTS | ||||||||||||||||||||||||||||||||
| ($ in millions, except per-share data) | Percent Change | |||||||||||||||||||||||||||||||
| 3Q 2022 |
2Q 2022 |
3Q 2021 |
3Q22 vs 2Q22 |
3Q22 vs 3Q21 |
YTD 2022 |
YTD 2021 |
Percent Change |
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| Net interest income |
$ | 3,827 | $ | 3,435 | $ | 3,171 | 11.4 | 20.7 | $ | 10,435 | $ | 9,371 | 11.4 | |||||||||||||||||||
| Taxable-equivalent adjustment |
30 | 29 | 26 | 3.4 | 15.4 | 86 | 79 | 8.9 | ||||||||||||||||||||||||
| Net interest income (taxable-equivalent basis) |
3,857 | 3,464 | 3,197 | 11.3 | 20.6 | 10,521 | 9,450 | 11.3 | ||||||||||||||||||||||||
| Noninterest income |
2,469 | 2,548 | 2,693 | (3.1 | ) | (8.3 | ) | 7,413 | 7,693 | (3.6) | ||||||||||||||||||||||
| Total net revenue |
6,326 | 6,012 | 5,890 | 5.2 | 7.4 | 17,934 | 17,143 | 4.6 | ||||||||||||||||||||||||
| Noninterest expense before merger and integration |
3,595 | 3,527 | 3,429 | 1.9 | 4.8 | 10,624 | 10,195 | 4.2 | ||||||||||||||||||||||||
| Merger and integration charges |
42 | 197 | -- | (78.7 | ) | nm | 239 | -- | nm | |||||||||||||||||||||||
| Total noninterest expense |
3,637 | 3,724 | 3,429 | (2.3 | ) | 6.1 | 10,863 | 10,195 | 6.6 | |||||||||||||||||||||||
| Income before provision and income taxes |
2,689 | 2,288 | 2,461 | 17.5 | 9.3 | 7,071 | 6,948 | 1.8 | ||||||||||||||||||||||||
| Provision for credit losses |
362 | 311 | (163 | ) | 16.4 | nm | 785 | (1,160 | ) | nm | ||||||||||||||||||||||
| Income before taxes |
2,327 | 1,977 | 2,624 | 17.7 | (11.3 | ) | 6,286 | 8,108 | (22.5) | |||||||||||||||||||||||
| Income taxes and taxable-equivalent adjustment |
511 | 443 | 590 | 15.3 | (13.4 | ) | 1,378 | 1,801 | (23.5) | |||||||||||||||||||||||
| Net income |
1,816 | 1,534 | 2,034 | 18.4 | (10.7 | ) | 4,908 | 6,307 | (22.2) | |||||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests |
(4 | ) | (3 | ) | (6 | ) | (33.3 | ) | 33.3 | (8 | ) | (17 | ) | 52.9 | ||||||||||||||||||
| Net income attributable to U.S. Bancorp |
$1,812 | $ | 1,531 | $ | 2,028 | 18.4 | (10.7 | ) | $ | 4,900 | $ | 6,290 | (22.1) | |||||||||||||||||||
| Net income applicable to U.S. Bancorp common shareholders |
$1,718 | $ | 1,464 | $ | 1,934 | 17.3 | (11.2 | ) | $ | 4,648 | $ | 6,023 | (22.8) | |||||||||||||||||||
| Diluted earnings per common share |
$1.16 | $ | .99 | $ | 1.30 | 17.2 | (10.8 | ) | $ | 3.13 | $ | 4.04 | (22.5) | |||||||||||||||||||
Net income attributable to U.S. Bancorp was $1,812 million for the third quarter of 2022, which was $216 million lower than the $2,028 million for the third quarter of 2021, and $281 million higher than the $1,531 million for the second quarter of 2022. Diluted earnings per common share was $1.16 in the third quarter of 2022, compared with $1.30 in the third quarter of 2021 and $0.99 in the second quarter of 2022. The third quarter of 2022 included $(0.02) per diluted common share of merger and integration-related charges associated with the planned acquisition of MUFG Union Bank compared with $(0.10) per diluted common share of merger and integration-related charges in the second quarter of 2022.
The decrease in net income year-over-year was primarily due to a higher provision for credit losses, driven by strong loan growth and increasing economic uncertainty, 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 11.0 percent compared with a year ago. Net interest income increased 20.6 percent on a year-over-year taxable-equivalent basis due to the impact of rising interest rates on earning assets and strong growth in loan and investment securities balances, partially offset by deposit pricing, funding mix 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 2.83 percent in the current quarter from 2.53 percent in the third quarter of 2021 primarily due to the impact of higher rates on earning assets, partially offset by deposit pricing and short-term borrowing costs. Noninterest income decreased 8.3 percent compared with a year ago reflecting lower mortgage banking revenue driven by a decline in refinancing activities, partially offset by higher payment services revenue and trust and investment management fees. Excluding merger and integration-related charges, noninterest expense increased 4.8 percent reflecting increases in compensation expense, employee benefits expense, net occupancy and equipment expense, marketing and business development expense and other noninterest expense. Provision for credit losses reflected a reserve build in the third quarter of 2022 as compared with a reserve release in the third quarter of 2021, primarily driven by loan growth and increasing economic uncertainty.
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U.S. Bancorp Third Quarter 2022 Results | |
Net income increased on a linked quarter basis driven by higher net interest income and lower merger and integration-related charges, partially offset by lower noninterest income and higher provision for credit losses. Net interest income increased 11.3 percent on a taxable-equivalent basis primarily due to the impact of rising interest rates on earning assets, strong loan growth and one more day in the quarter, partially offset by deposit pricing and short-term borrowing costs. The net interest margin increased on a linked quarter basis reflecting the impact of rising interest rates and reinvestment yields in the investment portfolio, partially offset by deposit pricing and short-term borrowing costs. Noninterest income decreased 3.1 percent compared with the second quarter of 2022 driven by lower mortgage banking revenue consistent with industry trends, lower payment services revenue being impacted by seasonality and foreign currency exchange rates in Europe, a decline in treasury management fees due to rising rates and lower government transaction processing and lower gains on the sale of securities, partially offset by higher other noninterest income. Excluding merger and integration-related charges, noninterest expense increased 1.9 percent on a linked quarter basis reflecting slightly higher compensation expense, professional services expense, and marketing and business development expense. Provision for credit losses increased 16.4 percent on a linked quarter basis driven by strong loan growth and increasing economic uncertainty.
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3Q 2022 2Q 2022 3Q 2021 3Q22 vs 2Q22 3Q22 vs 3Q21 YTD 2022 YTD 2021 Components of net interest income Income on earning assets Expense on interest-bearing liabilities Net interest income Average yields and rates paid Earning assets yield Rate paid on interest-bearing liabilities Gross interest margin Net interest margin Average balances Investment securities (a) Loans Interest-bearing deposits with banks Earning assets Interest-bearing liabilities Net interest income on a taxable-equivalent basis in the third quarter of
2022 was $3,857 million, an increase of $660 million (20.6 percent) over the third quarter of 2021. The increase was primarily due to the impact of rising interest rates on earning assets and strong growth in loan and investment securities
balances, partially offset by deposit pricing, lower loan fees related to the forgiveness of PPP loans from a year ago, and funding mix. Average earning assets were $38.3 billion (7.6 percent) higher than the third quarter of 2021, reflecting
increases of $40.0 billion (13.5 percent) in average total loans and $13.1 billion (8.6 percent) in average investment securities, while average interest-bearing deposits with banks decreased $11.6 billion (28.4 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 $393 million (11.3 percent) on a linked quarter basis primarily due to the
impact of rising interest rates on earning assets, strong loan growth and one more day in the quarter, partially offset by deposit pricing and short-term borrowing costs. Average earning assets were $4.9 billion (0.9 percent) higher on a linked
quarter basis, reflecting an increase of $12.6 billion (3.9 percent) in average loans partially offset by decreases of $6.4 billion (3.8 percent) in average investment securities and $2.0 billion (6.4 percent) in average
interest-bearing deposits with banks. The decrease in average investment securities on a linked quarter basis was primarily due to prepayments, sales and maturities, net of purchases. The net interest margin in the third quarter of 2022 was 2.83 percent, compared with 2.53 percent in the third quarter of 2021 and
2.59 percent in the second quarter of 2022. The increase in the net interest margin from the prior year was primarily due to the impact of higher rates on earning assets, partially offset by deposit pricing and short-term borrowing costs. The
increase in the net interest margin on a linked quarter basis reflected the impact of rising interest rates and reinvestment yields in the investment portfolio, partially offset by deposit pricing and short-term borrowing costs.
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3Q 2022 2Q 2022 3Q 2021 YTD 2022 YTD 2021 Percent Change 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 third quarter of 2022 were $40.0 billion
(13.5 percent) higher than the third quarter of 2021. The increase was primarily due to growth in commercial loans (26.2 percent), residential mortgages (13.4 percent) and credit card loans (10.0 percent), partially offset by lower retail leasing
balances (18.1 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 on-balance sheet loan activities and slower refinance activity.
Average total loans were $12.6 billion (3.9 percent) higher than the second quarter of 2022 primarily due to higher commercial
loans (6.5 percent) driven by new business and higher utilization, higher residential mortgages (4.7 percent) and higher credit card loans (6.0 percent).
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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 third quarter of 2022 were $25.3 billion (5.9 percent) higher than the third quarter of 2021. Average
noninterest-bearing deposits decreased $15.0 billion (11.6 percent) primarily within Corporate and Commercial Banking, Consumer and Business Banking and Payment Services. Average total savings deposits were $27.6 billion (9.9 percent)
higher year-over-year driven by Corporate and Commercial Banking and Consumer and Business Banking. Average time deposits were $12.7 billion (54.0 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 $253 million (0.1 percent) from the second quarter of 2022. On a linked quarter basis, average
noninterest-bearing deposits were lower by $6.8 billion (5.6 percent) primarily within Corporate and Commercial Banking and Wealth Management and Investment Services. Average total savings deposits decreased $2.3 billion (0.7 percent)
driven by Corporate and Commercial Banking and Consumer and Business Banking. Average time deposits were $9.3 billion (34.6 percent) higher on a linked quarter basis 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.
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3Q 2022 2Q 2022 3Q 2021 3Q22 vs 2Q22 3Q22 vs 3Q21 YTD 2022 YTD 2021 Percent Change 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 Third quarter noninterest income of $2,469 million was $224 million (8.3 percent) lower than the third quarter of 2021 reflecting lower
mortgage banking revenue, deposit service charges and securities gains, partially offset by stronger payment services revenue and trust and investment management fees. Mortgage banking revenue decreased $337 million (80.6 percent) reflecting
lower application volume, given declining refinance activities experienced in the mortgage industry, lower related gain on sale margins and fewer sales of performing loans. Deposit services charges decreased $28 million (14.4 percent) primarily
due to the impact of the elimination of certain consumer NSF fees in the first quarter of 2022. Partially offsetting these decreases, payment services revenue increased $46 million (4.9 percent) compared with the third quarter of 2021 as
corporate payment products revenue increased $34 million (21.8 percent) driven by improving business spending across all product groups while merchant processing services revenue increased $14 million (3.6 percent) driven by higher sales
volume and higher merchant fees. Given recent uncertainties in Europe, the US dollar has strengthened considerably compared to European currencies. Adjusted for the impact of foreign currency rate changes, year-over-year merchant processing services
revenue increased approximately 9.4 percent. Trust and investment management fees increased $113 million (24.6 percent) driven by lower money market fund fee waivers, activity related to the fourth quarter of 2021 acquisition of PFM Asset
Management LLC (“PFM”) and core business growth, partially offset by unfavorable market conditions. Noninterest income was
$79 million (3.1 percent) lower in the third quarter of 2022 compared with the second quarter of 2022 reflecting lower mortgage banking revenue, payment services revenue, treasury management fees and gains on the sale of securities, partially
offset by higher other noninterest income. Mortgage banking revenue decreased $61 million (43.0 percent) reflecting lower volumes of performing loan sales and a decrease in the fair value of mortgage servicing rights, net of hedging activities.
Payment services revenue decreased $9 million (0.9 percent). Credit and debit card revenue decreased $8 million (2.0 percent) due to lower sales volume and rate. Merchant processing services revenue decreased $18 million (4.5 percent)
due to the impact of foreign currency exchange rates as well as lower interchange rates. The declines in these payment services revenue categories were partially offset by stronger corporate payment products revenue which increased $18 million
(10.5 percent) primarily due to continued strengthening of business activities and seasonality of government spending. Treasury management fees decreased $18 million (10.7 percent) driven by seasonally lower IRS processing volumes and the
impact of earnings credits during a period of rising interest rates. Partially offsetting these decreases, other noninterest income increased $28 million (19.7 percent) due to higher tax-advantaged
investment syndication revenue and gains on the sale of certain assets.
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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 Third quarter noninterest expense of $3,637 million was $208 million (6.1 percent) higher than the
third quarter of 2021. Included in the third quarter of 2022 were merger and integration-related charges associated with the planned acquisition of MUFG Union Bank of $42 million. Excluding merger and integration-related charges, third quarter
noninterest expense increased $166 million (4.8 percent) compared with the third quarter of 2021 reflecting increases in compensation expense, employee benefits expense, net occupancy and equipment expense, marketing and business development
expense and other noninterest expense. Compensation expense increased $44 million (2.4 percent) compared with the third quarter of 2021 primarily due to merit and hiring to support business growth, partially offset by lower performance-based
incentives and variable compensation. Employee benefits expense increased $33 million (9.8 percent) driven by higher post-pandemic medical claims expense compared with the third quarter of 2021. Net occupancy and equipment expense increased
$13 million (5.0 percent) to support business growth. Marketing and business development expense increased $27 million (27.3 percent) due to the timing of marketing campaigns as well as increased travel and entertainment. Other noninterest
expense increased $45 million (15.5 percent) due to accruals related to future delivery exposures for merchant and airline processing as processing volumes recover, FDIC insurance expense driven by an increase in the assessment base and rate
and other accrued liabilities, partially offset by lower other expenses related to the decline in mortgage production. Noninterest
expense decreased $87 million (2.3 percent) on a linked quarter basis. Excluding merger and integration-related charges of $42 million in the third quarter of 2022 and $197 million in the second quarter of 2022, third quarter
noninterest expense increased $68 million (1.9 percent) reflecting higher compensation expense, professional services expense, and marketing and business development expense. Compensation expense increased $19 million (1.0 percent)
primarily due to the number of payroll days in the quarter along with higher performance-based incentives, partially offset by lower variable compensation. Professional services expense increased $20 million (18.0 percent) primarily due to the
timing of initiatives in the third quarter of 2022. Marketing and business development expense increased $20 million (18.9 percent) due to brand advertising and the timing of marketing campaigns. Provision for Income Taxes The provision for income taxes for the third quarter of 2022 resulted in a tax rate of 22.0 percent on a taxable-equivalent basis (effective tax rate of 20.9 percent), compared with 22.5 percent on a taxable-equivalent
basis (effective tax rate of 21.7 percent) in the third quarter of 2021, and a tax rate of 22.4 percent on a taxable-equivalent basis (effective tax rate of 21.3 percent) in the second quarter of 2022.
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The Company’s provision for credit losses for the third
quarter of 2022 was $362 million, compared with a provision of $311 million in the second quarter of 2022 and a credit benefit of $163 million in the third quarter of 2021. The level of the provision compared with a year ago is driven
by strong loan growth and changing economic conditions. During 2021, factors affecting economic conditions, including government stimulus and declining impacts from the pandemic in the U.S., contributed to economic improvement and related reserve
releases. The consumer portfolio continues to benefit from 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 have been
increasing due to ongoing supply chain challenges, rising inflationary concerns, market volatility, rising oil prices from the Russia-Ukraine conflict and pressure on corporate earnings related to these factors. 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 stable despite the changing economic outlook. Total net charge-offs in the third quarter of 2022 were $162 million, compared with $161 million in the
second quarter of 2022 and $147 million in the third quarter of 2021. The net charge-off ratio was 0.19 percent in the third quarter of 2022, compared with 0.20 percent in the second quarter of
2022 and in the third quarter of 2021. Net charge-offs increased $1 million (0.6 percent) compared with the second quarter of 2022. Net charge-offs increased $15 million (10.2 percent) compared with the third quarter of 2021, reflecting
higher charge-offs in total commercial loans, credit cards and other retail portfolios, partially offset by a decrease in total commercial real estate loan charge-offs. The allowance for credit losses was $6,455 million at September 30, 2022, compared with
$6,255 million at June 30, 2022, and $6,300 million at September 30, 2021. The increase on a linked quarter basis was driven by continued strong loan growth and economic uncertainty. The ratio of the allowance for credit losses
to period-end loans was 1.88 percent at September 30, 2022, compared with 1.88 percent at June 30, 2022, and 2.12 percent at September 30, 2021. The ratio of the allowance for
credit losses to nonperforming loans was 1,025 percent at September 30, 2022, compared with 863 percent at June 30, 2022, and 695 percent at September 30, 2021. Nonperforming assets were $677 million at September 30, 2022, compared with $770 million at
June 30, 2022, and $944 million at September 30, 2021. The ratio of nonperforming assets to loans and other real estate was 0.20 percent at September 30, 2022, compared with 0.23 percent at June 30, 2022, and
0.32 percent at September 30, 2021. The year-over-year and linked quarter decreases in nonperforming assets reflected decreases across all loan categories with the largest drivers in total commercial and total commercial real estate
nonperforming loans. Accruing loans 90 days or more past due were $393 million at September 30, 2022, compared with $423 million at June 30, 2022, and $385 million at September 30, 2021.
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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
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3Q 2022 2Q 2022 1Q 2022 4Q 2021 3Q 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 $47.5 billion at September 30, 2022, compared with
$48.6 billion at June 30, 2022, and $53.7 billion at September 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’s target CET1 capital ratio is 8.5 percent. Based on interest rates as of October 13th our CET1 ratio at the close of the acquisition would approximate 8.3 percent. We expect the CET1 ratio to increase toward 9.0 percent as the purchase accounting valuation adjustments accrete into
capital through earnings. The Company does not expect to commence repurchasing its common stock until after the acquisition closes and its 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 September 30, 2022, and at June 30, 2022, compared with 10.2 percent at September 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 September 30, 2022, and at June 30, 2022, compared with 9.7 percent at
September 30, 2021.
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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 fourth
quarter of 2022. However, U.S. Bancorp no longer expects 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, October 14, 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 877-692-8955. Participants calling from outside the United States and Canada, please dial 234-720-6979. The PIN code for all participants is 6030554. For those unable to participate during the live call, a replay will be available at approximately 11 a.m. CT on Friday, October 14, 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 $601 billion in assets
as of September 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. 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, adjusted return on average common
equity, adjusted return on tangible common equity and adjusted diluted earnings per common share 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 enhance 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
September 30, 2022 December 31, 2021 September 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
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
methodology (b) 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 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) 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 September 30, 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 common shareholders, 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) Net income applicable to U.S. Bancorp common shareholders, excluding notable items (as calculated above)
(g) Average diluted common shares outstanding (h) Diluted earnings per common share, excluding notable items
(g)/(h) Notable items for the three months ended September 30, 2022 include $33 million
(net-of-tax) of merger and integration charges. Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory
requirements. 18
3Q 2022 2Q 2022 3Q 2021 3Q22 vs 2Q22 3Q22 vs 3Q21 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 YTD 2022 YTD 2021 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 $738 million of income before provision and taxes in the third
quarter of 2022, compared with $520 million in the third quarter of 2021, and contributed $502 million of the Company’s net income in the third quarter of 2022. The provision for credit losses increased $56 million compared with
the third quarter of 2021 primarily due to loan loss provisions supporting growth in loan balances. Total net revenue was $235 million (24.6 percent) higher due to an increase of $233 million (33.2 percent) in net interest income and an
increase of $2 million (0.8 percent) in total noninterest income. Net interest income increased primarily due to higher loan balances and the impact of higher rates on the margin benefit from deposits, partially offset by lower spreads on loans
and lower noninterest-bearing deposits. Total noninterest income increased primarily due to stronger trust and investment management fees driven by lower money market fee waivers and core growth and higher commercial products revenue due to higher
capital markets revenue, partially offset by lower treasury management fees driven by the impact of rising interest rates on earnings credits. Total noninterest expense increased $17 million (3.9 percent) compared with a year ago primarily due
to higher FDIC insurance expense and higher compensation expense primarily due to merit and hiring to support business growth.
3
Consumer and Business Banking comprises consumer banking, small business banking and consumer lending. Products and services are delivered through banking offices, telephone servicing and sales, on-line services, direct mail, ATM processing, mobile devices, distributed mortgage loan officers, and intermediary relationships including auto dealerships, mortgage banks, and strategic business partners.
Consumer and Business Banking generated $663 million of income before provision and taxes in the
third quarter of 2022, compared with $860 million in the third quarter of 2021, and contributed $467 million of the Company’s net income in the third quarter of 2022. The provision for credit losses increased $67 million compared
with prior year due to loan balance growth and more favorable credit trends in the prior year quarter. Total net revenue was lower by $210 million (9.2 percent) due to a decrease in total noninterest income of $378 million (52.9 percent),
partially offset by an increase of $168 million (10.8 percent) in net interest income. Net interest income reflected the favorable impact of higher rates on the margin benefit from deposits and higher deposit balances, partially offset by lower
spreads on loans and lower loan fees driven by the impact of loan forgiveness related to PPP. Total noninterest income decreased due to lower mortgage banking revenue reflecting lower application volume, given declining refinance activities
experienced in the mortgage industry, lower related gain on sale margins and fewer sales of loans. Total noninterest expense decreased $13 million (0.9 percent) due to lower compensation expense reflecting lower revenue-related compensation due
to mortgage production and lower mortgage related loan expense, partially offset by increases in net shared services expense due to investments in digital capabilities.
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 $537 million of income before provision and taxes in the third quarter of 2022, compared with $274 million in the third quarter of 2021, and contributed $400 million
of the Company’s net income in the third quarter of 2022. The provision for credit losses increased slightly compared with the prior year quarter. Total net revenue increased $335 million (42.2 percent) year-over-year reflecting an
increase of $241 million in net interest income and $94 million (16.8 percent) in total noninterest income. Net interest income increased primarily due to the favorable impact of higher rates on the margin benefit from deposits. Total
noninterest income increased primarily driven by higher trust and investment management fees reflecting lower money market fund fee waivers, the impact of the PFM acquisition and core business growth, partially offset by the impact of unfavorable
market conditions. Total noninterest expense increased $72 million (13.8 percent) compared with the third 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 $725 million of income before provision and taxes in the third quarter of 2022,
compared with $700 million in the third quarter of 2021, and contributed $330 million of the Company’s net income in the third quarter of 2022. The provision for credit losses increased $119 million (71.7 percent) from a year ago
primarily due to the impacts of increasing delinquency rates, along with stronger growth in loan balances. Total net revenue increased $60 million (3.8 percent) due to higher net interest income of $11 million (1.8 percent) and higher
total noninterest income of $49 million (5.2 percent). Net interest income increased primarily due to higher loan balances, higher loan yields driven by higher interest rates net of lower customer revolve rates and loan fees, mostly offset by
higher funding costs. 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 corporate payment products revenue driven by
improving business spending across all product groups and seasonality in government spending. In addition, merchant processing services revenue increased due to higher sales volume and higher merchant fees, partially offset by the impact of foreign
currency rate changes in Europe. Credit and debit card revenue was negatively impacted by declining prepaid processing fees as the beneficial impact of government stimulus programs dissipated year-over-year, mostly offset by strong sales. Total
noninterest expense increased $35 million (4.1 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 $26 million of income before provision and taxes in the third quarter
of 2022, compared with $107 million in the third quarter of 2021, and contributed $113 million of the Company’s net income in the third quarter of 2022. The provision for credit losses increased $282 million (89.2 percent)
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 third quarter of
2021. Total net revenue was higher by $16 million (5.2 percent) due to an increase of $7 million (8.1 percent) in net interest income and an increase of $9 million (4.1 percent) in total noninterest income. Net interest income
increased primarily due to higher yields on the investment portfolio and interest-bearing deposits with banks, mostly offset by higher funding costs. The increase in total noninterest income was primarily due to higher
tax-advantaged investment syndication revenue and gains on the sale of certain assets, partially offset by lower securities gains. Total noninterest expense increased $97 million (48.5 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 Third Quarter 2022 Results
NET INTEREST INCOME
(Taxable-equivalent basis; $ in millions)
Change
Change
$4,759
$3,854
$3,435
$905
$1,324
$12,058
$10,211
$1,847
902
390
238
512
664
1,537
761
776
$3,857
$3,464
$3,197
$393
$660
$10,521
$9,450
$1,071
3.50%
2.88%
2.72%
.62%
.78%
3.00%
2.72%
.28%
.89
.40
.27
.49
.62
.53
.28
.25
2.61%
2.48%
2.45%
.13%
.16%
2.47%
2.44%
.03%
2.83%
2.59%
2.53%
.24%
.30%
2.62%
2.52%
.10%
$164,851
$171,296
$151,755
$(6,445)
$13,096
$170,267
$152,653
$17,614
336,778
324,187
296,739
12,591
40,039
324,731
295,014
29,717
29,130
31,116
40,710
(1,986)
(11,580)
30,030
37,947
(7,917)
541,666
536,761
503,325
4,905
38,341
536,131
500,616
35,515
403,573
390,373
353,129
13,200
50,444
390,816
356,731
34,085
(a) Excludes unrealized gain (loss)
U.S. Bancorp Third Quarter 2022 Results
AVERAGE LOANS
($ in millions)
Percent Change
3Q22 vs
2Q22
3Q22 vs
3Q21
$123,745
$115,758
$96,673
6.9
28.0
$
115,832
$
97,047
19.4
4,774
4,899
5,159
(2.6
)
(7.5
)
4,891
5,251
(6.9
)
128,519
120,657
101,832
6.5
26.2
120,723
102,298
18.0
30,002
29,676
28,080
1.1
6.8
29,506
27,923
5.7
10,008
9,841
10,841
1.7
(7.7
)
10,035
10,834
(7.4
)
40,010
39,517
38,921
1.2
2.8
39,541
38,757
2.0
84,018
80,228
74,104
4.7
13.4
80,589
74,215
8.6
24,105
22,748
21,905
6.0
10.0
22,907
21,391
7.1
6,259
6,708
7,643
(6.7
)
(18.1
)
6,689
7,829
(14.6
)
11,142
10,726
10,936
3.9
1.9
10,757
11,451
(6.1
)
42,725
43,603
41,398
(2.0
)
3.2
43,525
39,073
11.4
60,126
61,037
59,977
(1.5
)
.2
60,971
58,353
4.5
$336,778
$324,187
$296,739
3.9
13.5
$
324,731
$
295,014
10.1
U.S. Bancorp Third Quarter 2022 Results
AVERAGE DEPOSITS
($ in millions)
Percent Change
3Q
2Q
3Q
3Q22 vs
3Q22 vs
YTD
YTD
Percent
2022
2022
2021
2Q22
3Q21
2022
2021
Change
$
114,044
$
120,827
$
129,018
(5.6
)
(11.6
)
$
120,893
$
124,262
(2.7
)
113,364
116,878
103,036
(3.0
)
10.0
115,095
101,280
13.6
125,389
123,788
112,543
1.3
11.4
122,943
116,968
5.1
67,782
68,127
63,387
(.5
)
6.9
67,632
61,462
10.0
306,535
308,793
278,966
(.7
)
9.9
305,670
279,710
9.3
36,190
26,896
23,503
34.6
54.0
29,266
25,067
16.8
342,725
335,689
302,469
2.1
13.3
334,936
304,777
9.9
$
456,769
$
456,516
$
431,487
.1
5.9
$
455,829
$
429,039
6.2
U.S. Bancorp Third Quarter 2022 Results
NONINTEREST INCOME
($ in millions)
Percent Change
$391
$399
$393
(2.0
)
(.5
)
$1,128
$1,125
.3
190
172
156
10.5
21.8
520
420
23.8
406
425
392
(4.5
)
3.6
1,194
1,084
10.1
572
566
459
1.1
24.6
1,638
1,349
21.4
166
165
194
.6
(14.4
)
508
531
(4.3
)
151
169
155
(10.7
)
(2.6
)
476
462
3.0
285
290
277
(1.7
)
2.9
841
837
.5
81
142
418
(43.0
)
(80.6
)
423
1,063
(60.2
)
56
59
62
(5.1
)
(9.7
)
177
177
--
1
19
20
(94.7
)
(95.0
)
38
88
(56.8
)
Other
170
142
167
19.7
1.8
470
557
(15.6
)
Total noninterest income
$
2,469
$
2,548
$
2,693
(3.1
)
(8.3
)
$
7,413
$
7,693
(3.6
)
U.S. Bancorp Third Quarter 2022 Results
NONINTEREST EXPENSE
($ in millions)
Percent Change
3Q
2022
2Q
2022
3Q
2021
3Q22 vs
2Q22
3Q22 vs
3Q21
YTD
2022
YTD
2021
Percent
Change
$
1,891
$
1,872
$
1,847
1.0
2.4
$
5,616
$
5,448
3.1
369
374
336
(1.3
)
9.8
1,139
1,057
7.8
272
265
259
2.6
5.0
806
780
3.3
131
111
126
18.0
4.0
356
332
7.2
126
106
99
18.9
27.3
312
237
31.6
355
350
361
1.4
(1.7
)
1,054
1,082
(2.6
)
72
69
69
4.3
4.3
213
203
4.9
43
40
41
7.5
4.9
130
119
9.2
336
340
291
(1.2
)
15.5
998
937
6.5
3,595
3,527
3,429
1.9
4.8
10,624
10,195
4.2
42
197
--
(78.7
)
nm
239
--
nm
$
3,637
$
3,724
$
3,429
(2.3
)
6.1
$
10,863
$
10,195
6.6
U.S. Bancorp Third Quarter 2022 Results
U.S. Bancorp Third Quarter 2022 Results
U.S. Bancorp Third Quarter 2022 Results
DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES
(Percent)
Sep 30
2022
Jun 30
2022
Mar 31
2022
Dec 31
2021
Sep 30
2021
.03
.07
.06
.04
.04
.05
.01
--
.03
.05
.10
.12
.18
.24
.15
.74
.69
.74
.73
.66
.11
.10
.11
.11
.11
.11
.13
.14
.15
.13
.12
.19
.21
.20
.25
.46
.53
.55
.76
.82
.35
.40
.45
.53
.47
.74
.69
.74
.73
.66
.32
.35
.37
.35
.36
.30
.35
.38
.42
.43
U.S. Bancorp Third Quarter 2022 Results
COMMON SHARES
(Millions)
1,486
1,486
1,484
1,483
1,483
--
--
3
1
--
--
--
(1
)
--
--
1,486
1,486
1,486
1,484
1,483
U.S. Bancorp Third Quarter 2022 Results
U.S. Bancorp Third Quarter 2022 Results
•
•
•
•
CONSOLIDATED STATEMENT OF INCOME
Three Months Ended
Nine Months Ended
(Dollars and Shares in Millions, Except Per Share Data)
September 30,
September 30,
(Unaudited)
2022
2021
2022
2021
$3,603
$2,711
$9,071
$8,112
49
54
163
176
867
606
2,390
1,741
209
38
347
103
4,728
3,409
11,971
10,132
534
78
791
245
169
18
247
52
198
142
498
464
901
238
1,536
761
3,827
3,171
10,435
9,371
362
(163
)
785
(1,160
)
3,465
3,334
9,650
10,531
391
393
1,128
1,125
190
156
520
420
406
392
1,194
1,084
572
459
1,638
1,349
166
194
508
531
151
155
476
462
285
277
841
837
81
418
423
1,063
56
62
177
177
1
20
38
88
170
167
470
557
2,469
2,693
7,413
7,693
1,891
1,847
5,616
5,448
369
336
1,139
1,057
272
259
806
780
131
126
356
332
126
99
312
237
355
361
1,054
1,082
72
69
213
203
43
41
130
119
42
--
239
--
336
291
998
937
3,637
3,429
10,863
10,195
2,297
2,598
6,200
8,029
481
564
1,292
1,722
1,816
2,034
4,908
6,307
(4
)
(6
)
(8
)
(17
)
$1,812
$2,028
$4,900
$6,290
$1,718
$1,934
$4,648
$6,023
$1.16
$1.30
$3.13
$4.04
$1.16
$1.30
$3.13
$4.04
$.48
$.46
$1.40
$1.30
1,486
1,483
1,485
1,491
1,486
1,484
1,486
1,492
CONSOLIDATED ENDING BALANCE SHEET
(Dollars in Millions)
(Unaudited
)
(Unaudited
)
$41,652
$28,905
$63,904
85,574
41,858
--
68,523
132,963
149,376
3,647
7,775
6,191
131,687
112,023
101,013
40,329
39,053
38,808
86,274
76,493
74,954
24,538
22,500
22,137
59,880
61,959
60,696
342,708
312,028
297,608
(6,017
)
(5,724
)
(5,792
)
336,691
306,304
291,816
3,155
3,305
3,262
10,125
10,262
9,996
4,604
3,738
3,528
47,002
38,174
39,422
$600,973
$573,284
$567,495
$115,206
$134,901
$135,549
355,942
321,182
307,353
471,148
456,083
442,902
25,066
11,796
16,088
32,228
32,125
35,671
24,553
17,893
18,456
552,995
517,897
513,117
6,808
6,371
5,968
21
21
21
8,590
8,539
8,550
71,782
69,201
68,297
(27,188
)
(27,271
)
(27,301
)
(12,500
)
(1,943
)
(1,792
)
47,513
54,918
53,743
465
469
635
47,978
55,387
54,378
$600,973
$573,284
$567,495
NON-GAAP FINANCIAL MEASURES
(Dollars in Millions, Unaudited)
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
$47,978
$49,069
$51,668
$55,387
$54,378
(6,808
)
(6,808
)
(6,808
)
(6,371
)
(5,968
)
(465
)
(464
)
(468
)
(469
)
(635
)
(9,165
)
(9,204
)
(9,304
)
(9,323
)
(9,063
)
(735
)
(780
)
(762
)
(785
)
(618
)
30,805
31,813
34,326
38,439
38,094
44,094
42,944
41,950
41,701
41,014
(1,300
)
(1,300
)
(1,298
)
(1,733
)
(1,733
)
42,794
41,644
40,652
39,968
39,281
600,973
591,381
586,517
573,284
567,495
(9,165
)
(9,204
)
(9,304
)
(9,323
)
(9,063
)
(735
)
(780
)
(762
)
(785
)
(618
)
591,073
581,397
576,451
563,176
557,814
456,928
*
441,804
427,174
418,571
404,021
(337
)*
(317
)
(351
)
(357
)
(684
)
methodology (e)
456,591
*
441,487
426,823
418,214
403,337
5.2
%
5.5
%
6.0
%
6.8
%
6.8
%
6.7
7.2
8.0
9.2
9.4
9.4
9.4
9.5
9.6
9.7
Three Months Ended
September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
September 30,
2021
$1,718
$1,464
$1,466
$1,582
$1,934
34
32
37
32
32
1,752
1,496
1,503
1,614
1,966
6,951
6,000
6,096
6,403
7,800
50,284
49,633
53,934
55,875
54,908
(6,808
)
(6,808
)
(6,619
)
(6,865
)
(5,968
)
(464
)
(467
)
(468
)
(633
)
(635
)
(9,192
)
(9,246
)
(9,320
)
(9,115
)
(9,019
)
(758
)
(783
)
(779
)
(656
)
(632
)
33,062
32,329
36,748
38,606
38,654
21.0
%
18.6
%
16.6
%
16.6
%
20.2
%
$3,827
$3,435
$3,173
$3,123
$3,171
30
29
27
27
26
3,857
3,464
3,200
3,150
3,197
3,857
3,464
3,200
3,150
3,197
2,469
2,548
2,396
2,534
2,693
1
19
18
15
20
6,325
5,993
5,578
5,669
5,870
3,637
3,724
3,502
3,533
3,429
57.5
%
62.1
%
62.8
%
62.3
%
58.4
%
*
(1)
(2)
(3)
(4)
NON-GAAP FINANCIAL MEASURES
(Dollars in Millions, Unaudited)
$1,812
(33
)
1,845
7,320
588,764
1.24
%
$1,718
(33
)
1,751
6,947
43,012
16.2
%
$1,718
34
1,752
(33
)
1,785
7,082
50,284
(6,808
)
(464
)
(9,192
)
(758
)
33,062
21.4
%
$1,751
1,486
1.18
%
(1)
(2)
LINE OF BUSINESS FINANCIAL PERFORMANCE
(a)
($ in millions)
Net Income Attributable
to U.S. Bancorp
Percent Change
Net Income Attributable
to U.S. Bancorp
Business Line
$502
$379
$381
32.5
31.8
$1,293
$1,254
3.1
467
502
665
(7.0
)
(29.8
)
1,349
1,876
(28.1
)
400
320
204
25.0
96.1
923
637
44.9
330
389
400
(15.2
)
(17.5
)
1,089
1,334
(18.4
)
113
(59
)
378
nm
(70.1
)
246
1,189
(79.3
)
$1,812
$1,531
$2,028
18.4
(10.7
)
$4,900
$6,290
(22.1
)
Income Before Provision
and Taxes
Percent Change
Income Before Provision
and Taxes
3Q
2022
2Q
2022
3Q
2021
3Q22 vs
2Q22
3Q22 vs
3Q21
Percent
Change
$738
$605
$520
22.0
41.9
$1,897
$1,641
15.6
663
594
860
11.6
(22.9
)
1,811
2,366
(23.5
)
537
423
274
27.0
96.0
1,239
852
45.4
725
740
700
(2.0
)
3.6
2,089
1,996
4.7
26
(74
)
107
nm
(75.7
)
35
93
(62.4
)
$2,689
$2,288
$2,461
17.5
9.3
$7,071
$6,948
1.8
