8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 20, 2010

U.S. BANCORP
(Exact name of registrant as specified in its charter)

1-6880
(Commission File Number)

DELAWARE
(State or other jurisdiction
of incorporation) 41-0255900
(I.R.S. Employer Identification Number)

800 Nicollet Mall
Minneapolis, Minnesota 55402
(Address of principal executive offices and zip code)

(651) 466-3000
(Registrant’s telephone number, including area code)

(not applicable)
(Former name or former address, if changed since last report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 Under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
	ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
SIGNATURES
EXHIBIT 99.1
EXHIBIT 99.2

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

     On January 20, 2010, U.S. Bancorp (the “Company”) issued a press release reporting quarter ended December 31, 2009 results, and posted on its website its 4Q09 Earnings Conference Call Presentation, which contains certain additional historical and forward-looking information relating to the Company. The press release is included as Exhibit 99.1 hereto and is incorporated herein by reference. The information included in the press release is considered to be “filed” under the Securities Exchange Act of 1934. The 4Q09 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated herein by reference. The information included in the 4Q09 Earnings Conference Call Presentation is considered to be “furnished” under the Securities Exchange Act of 1934. The press release and 4Q09 Earnings Conference Call Presentation contain forward-looking statements regarding the Company and each includes a cautionary statement identifying important factors that could cause actual results to differ materially from those anticipated.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(c) Exhibits.

     99.1 Press Release issued by U.S. Bancorp on January 20, 2010, deemed “filed” under the Securities Exchange Act of 1934.

     99.2 4Q09 Earnings Conference Call Presentation, deemed “furnished” under the Securities Exchange Act of 1934.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

U.S. BANCORP

By /s/ Terrance R. Dolan
Terrance R. Dolan
Executive Vice President and
Controller

     DATE: January 20, 2010

EX-99.1 2 c55611exv99w1.htm EXHIBIT 99.1

Exhibit 99.1

	News Release
	Contacts:
	Steve Dale	Judith T. Murphy
	Media	Investors/Analysts
	(612) 303-0784	(612) 303-0783

U.S. BANCORP REPORTS NET INCOME
FOR THE FOURTH QUARTER OF 2009

Achieves Record Total Net Revenue of $4.4 Billion

     MINNEAPOLIS, January 20, 2010 — U.S. Bancorp (NYSE: USB) today reported net income of $602 million for the fourth quarter of 2009, or $.30 per diluted common share. Earnings for the fourth quarter were driven by record total net revenue of $4.4 billion, the result of strong year-over-year growth in both net interest income and fee revenue. The Company’s results were impacted by two significant items: $278 million of provision for credit losses in excess of net charge-offs and $158 million of net securities losses. These significant items, in total, reduced diluted earnings per common share by approximately $.18 in the fourth quarter of 2009. Highlights for the fourth quarter of 2009 included:

• Average loan growth of 8.2 percent (.4 percent excluding acquisitions) over the fourth quarter of 2008. Strong new lending activity of $33.7 billion during the fourth quarter including:

• $9.5 billion of new commercial and commercial real estate commitments

• $17.5 billion of commercial and commercial real estate commitment renewals

• $2.2 billion of lines related to new credit card accounts

• $4.5 billion of other retail originations

• $129.3 billion of new lending activity for the full year

• Strong average deposit growth of 25.2 percent (15.3 percent excluding acquisitions) over the fourth quarter of 2008, including:

• 29.6 percent growth in average noninterest-bearing deposits

• 46.8 percent growth in average total savings deposits

• Strong growth in total net revenue of 20.8 percent over the fourth quarter of 2008 (16.9 percent excluding the impact of net securities losses)

• Net interest income growth of 9.2 percent over the fourth quarter of 2008, driven by an 8.6 percent increase in average earning assets and growth in lower cost core deposit funding

U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 2

• Net interest margin of 3.83 percent for the fourth quarter of 2009, compared with 3.81 percent in the fourth quarter of 2008 (and 3.67 percent in the third quarter of 2009)

• The Company acquired the banking subsidiaries of FBOP Corporation of Oak Park, Illinois (“FBOP Banks”) from the Federal Deposit Insurance Corporation (“FDIC”) on October 30, 2009. Combined, these subsidiaries:

• Expanded the branch distribution network by 150 branches in: California (113), Illinois (32), Texas (3) and Arizona (2)

• Added $13.2 billion of loans to the Company’s portfolio at December 31, 2009, and $8.9 billion of average loans for the fourth quarter of 2009. All of the loans are covered under loss sharing agreements with the FDIC, which limit the Company’s credit loss exposure

• Added $14.4 billion of deposits at December 31, 2009, and $10.1 billion of average deposits for the fourth quarter of 2009

• Strong year-over-year growth in noninterest income of 26.7 percent (excluding net securities losses), driven by:

• A $195 million increase in mortgage banking revenue primarily due to robust mortgage loan production volume of $11.1 billion. Full year mortgage loan production volume was $55.6 billion

• A 41.2 percent increase in commercial products revenue

• Higher merchant processing services revenue (15.1 percent), corporate payment products revenue (7.8 percent) and credit and debit card revenue (6.6 percent)

• Lower retail lease residual valuation losses

• Positive operating leverage year-over-year; industry leading efficiency ratio of 49.1 percent in the fourth quarter of 2009

• Provision for credit losses exceeded net charge-offs by $278 million, or approximately 25 percent of net charge-offs for the quarter, resulting in an increase to the allowance for credit losses

• Lower provision for credit losses on a linked quarter basis for the first period since the first quarter of 2006

• Net charge-offs increased but the rate of growth moderated to 6.6 percent on a linked quarter basis

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 3

• Nonperforming assets increased but the rate of growth (excluding covered assets) moderated to 4.9 percent on a linked quarter basis

• Early stage loan delinquencies (30-89 days past due) as a percentage of ending loan balances declined in all retail loan categories on a linked quarter basis

• Allowance to period-end loans (excluding covered assets ) was 3.04 percent at December 31, 2009, compared with 2.88 percent at September 30, 2009

• Allowance to nonperforming assets (excluding covered assets) was 135 percent at December 31, 2009, compared with 134 percent at September 30, 2009

• Strong capital ratios at December 31, 2009:

• Tier 1 capital ratio of 9.6 percent

• Total risk-based capital ratio of 12.9 percent

• Tier 1 common equity ratio of 6.8 percent

EARNINGS SUMMARY Table 1

($ in millions, except per-share data)

							Percent			Percent
							Change			Change
	4Q		3Q		4Q		4Q09 vs			4Q09 vs			Full Year		Full Year		Percent
	2009		2009		2008		3Q09			4Q08			2009		2008		Change
Net income attributable to U.S. Bancorp	$	602	$	603	$	330		(.2	)		82.4		$	2,205	$	2,946		(25.2	)
Diluted earnings per common share		.30		.30		.15		—		nm				.97		1.61		(39.8	)
Return on average assets (%)		.86		.90		.51								.82		1.21
Return on average common equity (%)		9.6		10.0		5.3								8.2		13.9
Net interest margin (%)		3.83		3.67		3.81								3.67		3.66
Efficiency ratio (%)		49.1		47.5		50.0								48.4		46.9
Tangible efficiency ratio (%) (a)		46.8		45.3		47.6								46.1		44.7
Dividends declared per common share	$	.050	$	.050	$	.425		—			(88.2	)	$	.200	$	1.700		(88.2	)
Book value per common share (period-end)		12.79		12.38		10.47		3.3			22.2

(a) Computed as noninterest expense divided by the sum of net interest income on a taxable-equivalent basis and noninterest income, excluding net securities gains (losses) and intangible amortization.

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 4

     U.S. Bancorp reported net income attributable to shareholders of $602 million for the fourth quarter of 2009, 82.4 percent higher than the $330 million for the fourth quarter of 2008 and essentially unchanged from the third quarter of 2009. Diluted earnings per common share of $.30 in both the fourth and third quarters of 2009 were $.15 higher than the fourth quarter of 2008. Return on average assets and return on average common equity were .86 percent and 9.6 percent, respectively, for the fourth quarter of 2009, compared with .51 percent and 5.3 percent, respectively, for the fourth quarter of 2008. In light of the credit deterioration arising from the current economic environment, the Company strengthened its allowance for credit losses in the fourth quarter of 2009 by recording $278 million of provision for credit losses in excess of net charge-offs. The other significant item in the fourth quarter of 2009 was $158 million of net securities losses, including $179 million of impairments, partially offset by $21 million of net gains on sale of securities. The $179 million of impairments was principally due to the anticipated exchange of a structured investment vehicle for its underlying securities. This structured investment vehicle was purchased from an affiliate in the fourth quarter of 2007 and represents the last such investment expected to be restructured through an exchange of securities. These significant items, in total, reduced fourth quarter of 2009 diluted earnings per common share by approximately $.18. In the fourth quarter of 2008 significant items, which included provision for credit losses in excess of net charge-offs of $635 million, net securities losses of $253 million and a $59 million gain related to the Company’s investment in Visa Inc. (NYSE: V), reduced diluted earnings per common share, on an aggregate basis, by approximately $.34. Significant items in the third quarter of 2009 included $415 million of provision for credit losses in excess of net charge-offs, $76 million of net securities losses and a $39 million gain related to the Company’s investment in Visa Inc. In total, these significant items reduced third quarter of 2009 diluted earnings per common share by approximately $.19.

     U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “U.S. Bancorp’s fourth quarter and full year 2009 earnings fully reflected the strength and quality of the Company, as we achieved record total net revenue for both the quarter and the year. The strong growth in net revenue, the result of our expanding balance sheet and fee-based businesses, as well as recent investments in our branch network and various growth initiatives, was the primary driver behind the increase in fourth quarter earnings compared with the same period of 2008. For the full year of 2009 our Company earned $2.2 billion, or $.97 per diluted common share. Although operating income for the year was higher by 14.4 percent, the very difficult credit environment and ensuing rise in credit costs, resulted in bottom line earnings

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 5

that were lower than 2008. Importantly, despite the stressed economy and uncertain environment, our Company is, and expects to remain, profitable, owing to our diversified revenue stream, strong balance sheet, conservative approach to risk management and the momentum of our business lines.

     “We originated over $33 billion of new loans and commitments for new and existing customers during the fourth quarter, bringing total originations for the year to $129 billion. Additionally, the Company had over $11 billion of new mortgage production this quarter and full year production of over $55 billion. Despite this activity, however, total average loans, excluding acquisitions, remained fairly flat year-over-year, as customers continued to pay down their lines and right-size their own balance sheets. Average deposits, excluding acquisitions, continued to grow, increasing by over 15 percent year-over-year and 10 percent annualized on a linked quarter basis. These low cost deposits helped improve the net interest margin, which was 3.83 percent in the fourth quarter versus 3.67 percent in the third quarter of this year. Our fee-based businesses, particularly mortgage banking, payments and commercial products, also contributed to the year-over-year growth in total net revenue this quarter, further demonstrating the advantage of having a diversified revenue stream during a difficult economic cycle.

     “Credit costs remained elevated and continued to have a significant impact on earnings. As expected, net charge-offs increased moderately in the fourth quarter, but for the first time in 15 quarters, the provision for credit losses declined on a linked quarter basis, as the reduction in incremental provision (i.e. provision in excess of net charge-offs) of $137 million more than offset the $69 million increase in net charge-offs. The incremental provision represented approximately 25 percent of net charge-offs, compared with 40 percent in the third quarter of 2009 and approximately 100 percent in the fourth quarter of 2008. This incremental provision further strengthened the balance sheet as the allowance for credit losses as a percent of period-end loans (excluding covered assets) at December 31, 2009, was 3.04 percent versus 2.88 percent at September 30, 2009. During the fourth quarter, the percentage of loans in early stage delinquency (30-89 days) declined versus the prior quarter in all retail loan categories and, although losses have not yet peaked for our Company, the upward trends in both net charge-offs and nonperforming assets continue to moderate and credit costs overall remain very manageable for our Company.

     “Our capital position remains strong, with a Tier 1 capital ratio of 9.6 percent at December 31, 2009, slightly higher than the 9.5 percent at September 30, 2009, and above the “well-capitalized” level as defined by the regulators. Our Tier 1 common equity ratio was 6.8 percent at year-end, unchanged from the prior quarter end. The strength of our capital position and quality of our franchise continues to be recognized by

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 6

the market, as we remain one of the highest rated banks in the industry by the credit rating agencies. This has translated into both a ‘flight to quality’ growth in loans and deposits, as well as favorable funding costs and margin expansion.

     “On December 8th, our board of directors declared a quarterly dividend of five cents per common share, payable on January 15th. This dividend was equal to the dividend paid in each of the last three quarters. We are very much aware of the importance of the dividend to our shareholders but, as I have previously stated, there are two pre-conditions that must be met before the dividend can be raised. The first is a clear line of sight regarding future earnings, and the second is additional clarity regarding regulatory capital guidelines in the context of a recovering economy. We are profitable, our businesses are performing well, credit costs are moderating and we expect to continue to generate significant capital. There remains, however, a great deal of uncertainty in the banking industry due to potential legislative and regulatory changes, as well as the timing and scope of the economic recovery. This uncertainty, in turn, extends to the level of capital that will be required going forward. We will continue to work closely with our regulators and will prudently defer action on the dividend until a sustainable economic recovery is evident and clear capital guidelines are established.

     “We continued to expand our franchise and product offerings during the fourth quarter through both acquisitions and new business line initiatives. On October 13th, we announced an agreement to purchase the deposits and certain branch locations of BB&T’s Nevada banking operations. This transaction closed last Friday, January 15th. The branches were converted over the weekend and are now operating as full-service U.S. Bank locations. On October 30th, we acquired the FBOP Banks in an FDIC-assisted deal. Together, these two transactions added over 160 branch locations to our franchise and more than $15 billion in deposits. Further, our Wealth Management and Securities Services Group completed the purchase of a bond trustee business and a mutual fund accounting and servicing operation. New business line initiatives included the Consumer Banking Group’s launch of a new savings program called Savings Today and Rewards Tomorrow^TM, or S.T.A.R.T, which was piloted in the later half of 2009 and is now beginning a phased rollout. In addition, we announced the expansion of our operations with plans to open a new Service Center in the Kansas City area in 2010, bringing more than 1,100 jobs to the area. These acquisitions, initiatives and expansion activities are all great examples of the type of investments we expect to continue to make going forward, as they are lower risk, capital efficient and beneficial to our shareholders.

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 7

     “Finally, I want to take this opportunity to thank our 60,000 employees. Each employee played an important and vital role this past year, whether their job entailed producing and delivering products and services directly to our customers, providing our customers with positive and rewarding service, supplying administrative and operational support, or risk management. While many of our competitors downsized this past year, we were growing our workforce, adding over 4,000 employees since December of 2008. While others exited businesses, we were expanding our franchise, products and services. While many in the industry turned their attention internally, we were investing and focusing on the future. 2009 was one of the most challenging years I have ever experienced, but the commitment and hard work of our employees have enabled this Company to navigate through this difficult time and become an even stronger organization. Given the Company’s diversified revenue mix, stable businesses, industry-leading performance, capital generation, and its dedicated employees, I am confident that we will continue to grow and prosper in the coming year, as we continue to serve our customers, support our communities, assist the government in their efforts to stimulate and strengthen the economy, and create long-term value for our shareholders, all of which will serve to further distinguish U.S. Bancorp as one of the strongest leaders in the financial services industry today.”

     The Company’s net income attributable to shareholders for the fourth quarter of 2009 was higher than the same period of 2008 by $272 million (82.4 percent) and essentially unchanged from the third quarter of 2009. The increase in net income year-over-year was principally the result of strong growth in total net revenue, driven by both net interest income from higher earning assets and fee-based revenues, partially offset by increases in noninterest expense due to acquisitions, FDIC deposit insurance expense and other business initiatives and an increase in the provision for credit losses. Compared with the prior quarter, a favorable variance in total net revenue, primarily related to net interest income, and a lower provision for credit losses were offset by an increase in noninterest expense due to acquisitions and seasonal business costs.

     Total net revenue on a taxable-equivalent basis for the fourth quarter of 2009 was $4,376 million; $752 million (20.8 percent) higher than the fourth quarter of 2008, reflecting a 9.2 percent increase in net interest income and a 37.8 percent increase in noninterest income. The increase in net interest income year-over-year was largely the result of growth in average earning assets and an increase in lower cost core deposit funding, both of which reflected recent acquisitions, while noninterest income increased year-over-year, principally due to strong growth in mortgage banking revenue, a decrease in net securities losses, and lower

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
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lease residual valuation losses relative to the fourth quarter of 2008. Total net revenue was $126 million (3.0 percent) higher than the previous quarter. Net interest income was 9.4 percent higher than the third quarter of 2009 due to the FBOP Banks acquisition, as well as an increase in the Company’s core deposits and lower funding rates, while noninterest income declined 3.7 percent from the prior quarter, primarily due to higher net securities losses and lower mortgage banking revenue.

     Total noninterest expense in the fourth quarter of 2009 was $2,228 million; $290 million (15.0 percent) higher than the fourth quarter of 2008 and $175 million (8.5 percent) higher than the third quarter of 2009. The increase in total noninterest expense year-over-year was primarily due to the impact of acquisitions, as well as higher FDIC deposit insurance expense and costs related to affordable housing and other tax-advantaged projects. The increase in total noninterest expense on a linked quarter basis was primarily due to the impact of acquisitions and seasonally higher investments in affordable housing and other tax-advantaged projects and the impact of reinstating certain salary levels previously reduced as part of the Company’s cost containment activities.

     The increase in the Company’s provision for credit losses from a year ago reflected the adverse impact of current economic conditions. However, on a linked quarter basis, the provision for credit losses decreased. While net charge-offs continued to increase from the third quarter of 2009, the rate of deterioration in the credit portfolio has declined. The provision for credit losses for the fourth quarter of 2009 was $1,388 million, a decline of $68 million from the third quarter of 2009 and an increase of $121 million over the fourth quarter of 2008. The provision for credit losses exceeded net charge-offs by $278 million in the fourth quarter of 2009, $415 million in the third quarter of 2009, and $635 million in the fourth quarter of 2008. The increase in the provision for credit losses from a year ago reflected deterioration in economic conditions during most of the year and the corresponding impact on the commercial, commercial real estate and consumer loan portfolios. Net charge-offs in the fourth quarter of 2009 were $1,110 million, compared with $1,041 million in the third quarter of 2009 and $632 million in the fourth quarter of 2008. Given current economic conditions and the weakness in home prices and the economy in general, the Company expects net charge-offs will increase during the first quarter of 2010, but expects the rate of increase will decline.

     Nonperforming assets include assets originated by the Company, as well as loans and other real estate acquired under FDIC loss sharing agreements (“covered assets”) that substantially reduce the risk of credit losses to the Company. At December 31, 2009, $22.5 billion of the Company’s loans and other real estate

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 9

were covered by loss sharing agreements. Total nonperforming assets were $5,907 million at December 31, 2009, compared with $4,392 million at September 30, 2009, and $2,624 million at December 31, 2008. $1.4 billion of the $1.5 billion linked quarter increase and of the $3.3 billion year-over-year increase in nonperforming assets was related to the FBOP Banks acquisition. The remaining linked quarter and year- over-year increase in nonperforming assets (excluding covered assets) was driven by stress in residential home construction and related industries, deterioration in the residential mortgage portfolio, as well as an increase in foreclosed properties and the impact of the economic slowdown on commercial and consumer customers. At December 31, 2009, total nonperforming assets included $2,003 million of covered assets, compared with $672 million of nonperforming covered assets at September 30, 2009. The majority of these nonperforming covered assets were considered credit-impaired at acquisition and recorded at their estimated fair value at the date of acquisition. The ratio of the allowance for credit losses to period-end loans, excluding covered assets, was 3.04 percent at December 31, 2009, compared with 2.88 percent at September 30, 2009, and 2.09 percent at December 31, 2008. The ratio of the allowance for credit losses to period-end loans, including covered assets, was 2.69 percent at December 31, 2009, compared with 2.72 percent at September 30, 2009, and 1.96 percent at December 31, 2008. The Company expects nonperforming assets, including other real estate owned, to continue to increase, however at a decreasing rate as compared with prior periods, as difficult economic conditions continue to affect more borrowers in both the commercial and consumer loan portfolios.

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
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INCOME STATEMENT HIGHLIGHTS Table 2

(Taxable-equivalent basis, $ in millions, except per-share data)

									Percent			Percent
									Change			Change
	4Q		3Q			4Q			4Q09 vs			4Q09 vs		Full Year			Full Year			Percent
	2009		2009			2008			3Q09			4Q08		2009			2008			Change
Net interest income	$	2,360	$	2,157		$	2,161			9.4			9.2	$	8,716		$	7,866			10.8
Noninterest income		2,016		2,093			1,463			(3.7	)		37.8		7,952			6,811			16.8
Total net revenue		4,376		4,250			3,624			3.0			20.8		16,668			14,677			13.6
Noninterest expense		2,228		2,053			1,938			8.5			15.0		8,281			7,348			12.7
Income before provision and taxes		2,148		2,197			1,686			(2.2	)		27.4		8,387			7,329			14.4
Provision for credit losses		1,388		1,456			1,267			(4.7	)		9.6		5,557			3,096			79.5
Income before taxes		760		741			419			2.6			81.4		2,830			4,233			(33.1	)
Taxable-equivalent adjustment		50		50			40			—			25.0		198			134			47.8
Applicable income taxes		108		86			27			25.6		nm			395			1,087			(63.7	)
Net income		602		605			352			(.5	)		71.0		2,237			3,012			(25.7	)
Net income attributable to noncontrolling interests		—		(2	)		(22	)	nm			nm			(32	)		(66	)		51.5
Net income attributable to U.S. Bancorp	$	602	$	603		$	330			(.2	)		82.4	$	2,205		$	2,946			(25.2	)
Net income applicable to U.S. Bancorp common shareholders	$	580	$	583		$	259			(.5	)	nm		$	1,803		$	2,819			(36.0	)
Diluted earnings per common share	$	.30	$	.30		$	.15			—		nm		$	.97		$	1.61			(39.8	)

Net Interest Income

     Net interest income on a taxable-equivalent basis in the fourth quarter of 2009 was $2,360 million, compared with $2,161 million in the fourths quarter of 2008, an increase of $199 million (9.2 percent). The increase was primarily the result of growth in average earning assets, which were higher by $19.4 billion (8.6 percent) than the fourth quarter of 2008, driven by an increase of $14.4 billion (8.2 percent) in average loans and $2.2 billion (5.2 percent) in average investment securities. Net interest income grew 9.4 percent on a linked quarter basis, primarily due to the FBOP Banks acquisition, as well as higher core deposits and favorable funding rates. During the fourth quarter of 2009, the net interest margin was 3.83 percent compared with 3.81 percent in the fourth quarter of 2008 and 3.67 percent in the third quarter of 2009.

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
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NET INTEREST INCOME Table 3

(Taxable-equivalent basis; $ in millions)

										Change			Change
	4Q			3Q			4Q			4Q09 vs			4Q09 vs			Full Year			Full Year
	2009			2009			2008			3Q09			4Q08			2009			2008			Change
Components of net interest income
Income on earning assets	$	3,026		$	2,909		$	3,195		$	117		$	(169	)	$	11,748		$	12,630		$	(882	)
Expense on interest-bearing liabilities		666			752			1,034			(86	)		(368	)		3,032			4,764			(1,732	)
Net interest income	$	2,360		$	2,157		$	2,161		$	203		$	199		$	8,716		$	7,866		$	850
Average yields and rates paid
Earning assets yield		4.91	%		4.94	%		5.63	%		(.03	)%		(.72	)%		4.95	%		5.87	%		(.92	)%
Rate paid on interest-bearing liabilities		1.31			1.54			2.16			(.23	)		(.85	)		1.55			2.58			(1.03	)
Gross interest margin		3.60	%		3.40	%		3.47	%		.20	%		.13	%		3.40	%		3.29	%		.11	%
Net interest margin		3.83	%		3.67	%		3.81	%		.16	%		.02	%		3.67	%		3.66	%		.01	%
Average balances
Investment securities	$	44,149		$	42,558		$	41,974		$	1,591		$	2,175		$	42,809		$	42,850		$	(41	)
Loans		191,648			181,968			177,205			9,680			14,443			185,805			165,552			20,253
Earning assets		245,383			234,111			225,986			11,272			19,397			237,287			215,046			22,241
Interest-bearing liabilities		201,447			194,202			190,856			7,245			10,591			195,614			184,932			10,682
Net free funds (a)		43,936			39,909			35,130			4,027			8,806			41,673			30,114			11,559

(a) Represents noninterest-bearing deposits, other noninterest-bearing liabilities and equity, allowance for loan losses and unrealized gain (loss) on available-for-sale securities, less non-earning assets.

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 12

AVERAGE LOANS Table 4

($ in millions)

							Percent			Percent
							Change			Change
	4Q		3Q		4Q		4Q09 vs			4Q09 vs			Full Year		Full Year		Percent
	2009		2009		2008		3Q09			4Q08			2009		2008		Change
Commercial	$	43,490	$	44,655	$	50,328		(2.6	)		(13.6	)	$	46,197	$	47,903		(3.6	)
Lease financing		6,489		6,567		6,608		(1.2	)		(1.8	)		6,630		6,404		3.5
Total commercial		49,979		51,222		56,936		(2.4	)		(12.2	)		52,827		54,307		(2.7	)
Commercial mortgages		24,895		24,296		22,967		2.5			8.4			24,159		21,705		11.3
Construction and development		9,149		9,533		9,691		(4.0	)		(5.6	)		9,592		9,405		2.0
Total commercial real estate		34,044		33,829		32,658		.6			4.2			33,751		31,110		8.5
Residential mortgages		25,621		24,405		23,430		5.0			9.4			24,481		23,257		5.3
Credit card		16,399		15,387		12,976		6.6			26.4			14,937		11,954		25.0
Retail leasing		4,620		4,822		5,062		(4.2	)		(8.7	)		4,895		5,395		(9.3	)
Home equity and second mortgages		19,444		19,368		18,691		.4			4.0			19,335		17,550		10.2
Other retail		23,037		22,647		22,247		1.7			3.6			22,856		20,671		10.6
Total retail		63,500		62,224		58,976		2.1			7.7			62,023		55,570		11.6
Total loans, excluding covered assets		173,144		171,680		172,000		.9			.7			173,082		164,244		5.4
Covered assets		18,504		10,288		5,205		79.9		nm				12,723		1,308	nm
Total loans	$	191,648	$	181,968	$	177,205		5.3			8.2		$	185,805	$	165,552		12.2

     Total average loans were $14.4 billion (8.2 percent) higher in the fourth quarter of 2009 than the fourth quarter of 2008, primarily driven by growth in covered assets and retail loan categories. Average total retail loans grew $4.5 billion, residential mortgages grew $2.2 billion and total commercial real estate loans grew $1.4 billion year-over-year. Growth in these categories was partially offset by a $7.0 billion decline in total commercial loans, principally due to lower utilization of existing commitments and reduced demand for new loans. Retail loan growth, year-over-year, was driven by increases in credit cards, home equity lines and federally-guaranteed student loans. Included in the growth of average credit card loans outstanding were portfolio purchases during the third quarter of approximately $1.3 billion. Total average loans were $9.7 billion (5.3 percent) higher in the fourth quarter of 2009 than the third quarter of 2009, primarily due to an increase in covered assets resulting from the fourth quarter acquisition of FBOP Banks. Covered assets for the FBOP Banks were $8.9 billion on average in the fourth quarter of 2009 and $13.2 billion at December 31, 2009. Total average loans, excluding covered assets, were higher than the third quarter of 2009 by .9 percent, as increases in credit cards (6.6 percent) and residential mortgages (5.0 percent) were offset by a

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 13

decline in total commercial loans (2.4 percent), primarily due to lower commitment utilization by corporate borrowers and reduced demand for new loans.

     Average investment securities in the fourth quarter of 2009 were $2.2 billion (5.2 percent) higher year-over-year and $1.6 billion (3.7 percent) higher than the third quarter of 2009. The increases over the prior year and linked quarter were primarily due to purchases of U.S. government agency-related securities.

AVERAGE DEPOSITS Table 5

($ in millions)

							Percent		Percent
							Change		Change
	4Q		3Q		4Q		4Q09 vs		4Q09 vs			Full Year		Full Year		Percent
	2009		2009		2008		3Q09		4Q08			2009		2008		Change
Noninterest-bearing deposits	$	40,990	$	36,982	$	31,639		10.8		29.6		$	37,856	$	28,739		31.7
Interest-bearing savings deposits
Interest checking		39,714		38,218		29,467		3.9		34.8			36,866		31,137		18.4
Money market savings		38,485		33,387		27,009		15.3		42.5			31,795		26,300		20.9
Savings accounts		15,926		13,824		7,657		15.2	nm				13,109		5,929	nm
Total of savings deposits		94,125		85,429		64,133		10.2		46.8			81,770		63,366		29.0
Time certificates of deposit less than $100,000		18,438		16,985		15,414		8.6		19.6			17,879		13,583		31.6
Time deposits greater than $100,000		27,336		26,966		33,283		1.4		(17.9	)		30,296		30,496		(.7	)
Total interest-bearing deposits		139,899		129,380		112,830		8.1		24.0			129,945		107,445		20.9
Total deposits	$	180,889	$	166,362	$	144,469		8.7		25.2		$	167,801	$	136,184		23.2

     Average total deposits for the fourth quarter of 2009 were $36.4 billion (25.2 percent) higher than the fourth quarter of 2008. Excluding deposits from acquisitions, average total deposits increased $21.3 billion (15.3 percent) over the fourth quarter of 2008. Noninterest-bearing deposits increased $9.4 billion (29.6 percent) year-over-year, primarily due to growth in the Consumer and Wholesale Banking business lines and the impact of acquisitions. Average total savings deposits were $30.0 billion (46.8 percent) higher year-over-year, the result of growth in Consumer Banking, government, broker-dealer and institutional trust customers and the impact of acquisitions. Contributing to the increase in savings accounts was strong participation in a new savings product introduced across the franchise by Consumer Banking late in the third quarter of 2008. Average time certificates of deposit less than $100,000 were $3.0 billion (19.6 percent) higher year-over-year primarily due to acquisitions, while average time deposits greater than $100,000 decreased $5.9 billion (17.9 percent), reflecting a decrease in overall wholesale funding requirements.

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 14

     Average total deposits increased $14.5 billion (8.7 percent) over the third quarter of 2009, primarily due to strong growth in total average savings deposits and noninterest-bearing deposits, which increased $8.7 billion (10.2 percent) and $4.0 billion (10.8 percent), respectively. The fourth quarter of 2009 FBOP Banks acquisition added $10.1 billion in average total deposits and $14.4 billion of total deposits at December 31, 2009. Excluding the FBOP Banks acquisition, total average deposits increased $4.4 billion (2.7 percent) over the third quarter of 2009. Average noninterest-bearing deposits increased due to higher balances in corporate trust, Consumer Banking and Wholesale Banking. The growth in total average savings deposits was the result of increases in corporate and institutional trust, Consumer Banking and Wholesale Banking and the impact of the FBOP Banks acquisition. Average time certificates of deposit less than $100,000 increased $1.5 billion (8.6 percent) from the prior quarter due primarily to the impact of the FBOP Banks acquisition, while average time deposits greater than $100,000 increased $370 million (1.4 percent), reflecting the impact of the FBOP Banks acquisition, partially offset by a reduction in wholesale funding requirements.

NONINTEREST INCOME Table 6

($ in millions)

										Percent			Percent
										Change			Change
	4Q			3Q			4Q			4Q09 vs			4Q09 vs			Full Year			Full Year			Percent
	2009			2009			2008			3Q09			4Q08			2009			2008			Change
Credit and debit card revenue	$	273		$	267		$	256			2.2			6.6		$	1,055		$	1,039			1.5
Corporate payment products revenue		166			181			154			(8.3	)		7.8			669			671			(.3	)
Merchant processing services		312			300			271			4.0			15.1			1,148			1,151			(.3	)
ATM processing services		101			103			95			(1.9	)		6.3			410			366			12.0
Trust and investment management fees		277			293			300			(5.5	)		(7.7	)		1,168			1,314			(11.1	)
Deposit service charges		238			256			260			(7.0	)		(8.5	)		970			1,081			(10.3	)
Treasury management fees		132			141			128			(6.4	)		3.1			552			517			6.8
Commercial products revenue		185			157			131			17.8			41.2			615			492			25.0
Mortgage banking revenue		218			276			23			(21.0	)	nm				1,035			270		nm
Investment products fees and commissions		27			27			37			—			(27.0	)		109			147			(25.9	)
Securities gains (losses), net		(158	)		(76	)		(253	)	nm				37.5			(451	)		(978	)		53.9
Other		245			168			61			45.8		nm				672			741			(9.3	)
Total noninterest income	$	2,016		$	2,093		$	1,463			(3.7	)		37.8		$	7,952		$	6,811			16.8

Noninterest Income

     Fourth quarter noninterest income was $2,016 million; $553 million (37.8 percent) higher than the fourth quarter of 2008 and $77 million (3.7 percent) lower than the third quarter of 2009. The improvement

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 15

in noninterest income over the fourth quarter of 2008 included a $195 million increase in mortgage banking revenue, as the lower interest rate environment drove strong mortgage loan production and related production gains, the net change in the valuation of mortgage services rights (“MSRs”) and related economic hedging activities was favorable and servicing income increased. Other income increased $184 million due to lower retail lease residual valuation losses, improving equity investment revenue and a payments-related contract termination gain, partially offset by the fourth quarter of 2008 gain on the Company’s investment in Visa Inc. In addition, net securities losses decreased $95 million from a year ago. Noninterest income also benefited from higher fee-based payments-related income of $70 million (10.3 percent) and an increase in commercial products revenue of $54 million (41.2 percent) due to stronger capital markets, standby letters of credit, and other commercial loan fees. Trust and investment management fees declined $23 million (7.7 percent) due to lower account-level fees and the impact of interest rates on money market investment fees. The $10 million (27.0 percent) decline in investment products fees and commissions was due to lower sales levels from a year ago. Deposit service charges decreased $22 million (8.5 percent) primarily due to a decrease in the number of overdraft incidences which more than offset deposit account growth.

     Noninterest income was $77 million (3.7 percent) lower in the fourth quarter of 2009 than the third quarter of 2009. Net securities losses increased $82 million compared with the third quarter of 2009 principally due to impairment related to the anticipated exchange of a structured investment vehicle for its underlying securities. Mortgage banking revenue declined $58 million due to lower mortgage production and the net change in the valuation of MSRs and related economic hedging activities, partially offset by higher servicing income. Deposit service charges were $18 million (7.0 percent) lower on a linked quarter basis due to lower overdraft incidences and seasonally lower transaction volume. Trust and investment management fees decreased $16 million (5.5 percent) due to lower account-level fees and the impact of interest rates on money market investment fees. Seasonally lower volumes resulted in a $15 million (8.3 percent) and a $9 million (6.4 percent) decline in corporate payment products revenue and treasury management fees, respectively. Partially offsetting these variances was a $77 million (45.8 percent) increase in other income due to lower retail lease residual valuation losses, improving equity investment revenue and a payments-related gain, partially offset by the third quarter of 2009 gain related to the Company’s investment in Visa Inc. Commercial products revenue was $28 million (17.8 percent) higher than the third quarter of 2009 due to increases across a majority of products including commercial leasing revenue, standby letters of credit, capital markets and commercial loan fees. In addition, credit and debit card revenue

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 16

increased $6 million (2.2 percent) due to higher volumes and merchant processing services increased $12 million (4.0 percent) primarily due to higher fee-based activity.

NONINTEREST EXPENSE Table 7

($ in millions)

							Percent			Percent
							Change			Change
	4Q		3Q		4Q		4Q09 vs			4Q09 vs			Full Year		Full Year		Percent
	2009		2009		2008		3Q09			4Q08			2009		2008		Change
Compensation	$	816	$	769	$	770		6.1			6.0		$	3,135	$	3,039		3.2
Employee benefits		145		134		124		8.2			16.9			574		515		11.5
Net occupancy and equipment		214		203		202		5.4			5.9			836		781		7.0
Professional services		81		63		73		28.6			11.0			255		240		6.3
Marketing and business development		105		137		90		(23.4	)		16.7			378		310		21.9
Technology and communications		186		175		156		6.3			19.2			673		598		12.5
Postage, printing and supplies		70		72		77		(2.8	)		(9.1	)		288		294		(2.0	)
Other intangibles		107		94		93		13.8			15.1			387		355		9.0
Other		504		406		353		24.1			42.8			1,755		1,216		44.3
Total noninterest expense	$	2,228	$	2,053	$	1,938		8.5			15.0		$	8,281	$	7,348		12.7

Noninterest Expense

     Noninterest expense in the fourth quarter of 2009 totaled $2,228 million, an increase of $290 million (15.0 percent) over the fourth quarter of 2008, and $175 million (8.5 percent) over the third quarter of 2009. The increase in noninterest expense over a year ago was principally due to the impact of acquisitions, and higher FDIC deposit insurance expense, marketing and business development expense and costs related to investments in affordable housing and other tax-advantaged projects. Compensation expense increased $46 million (6.0 percent) and employee benefits expense increased $21 million (16.9 percent), reflecting acquisitions and higher pension costs. Net occupancy and equipment expense increased $12 million (5.9 percent) and professional services expense increased $8 million (11.0 percent) year-over-year due principally to acquisitions and other business initiatives. Marketing and business development expense was higher by $15 million (16.7 percent) due to costs related to the introduction of new credit card products, while technology and communications expense increased $30 million (19.2 percent), primarily due to payments-related initiatives, including the formation of a new joint venture. Other intangibles expense increased 15.1 percent due to acquisitions, and other expense increased $151 million (42.8 percent) due to higher FDIC deposit insurance expense, costs related to investments in affordable housing and other tax-

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 17

advantaged projects, higher merchant processing expenses, growth in mortgage servicing expenses and costs associated with other real estate owned.

     Noninterest expense increased $175 million (8.5 percent) in the fourth quarter of 2009 over the third quarter of 2009. The increase was primarily due to the FBOP Banks acquisition, the impact of reinstating certain salary levels previously reduced as part of the Company’s cost containment activities and an increase in other expense of $98 million (24.1 percent) principally due to seasonally higher costs related to investments in affordable housing and other tax-advantaged projects, increased FDIC insurance expense and costs associated with other real estate owned. Compensation and employee benefits expense was $58 million (6.4 percent) higher principally due to the FBOP Banks acquisition and the impact of reinstating certain salary levels previously reduced as part of cost containment activities. Net occupancy and equipment expense increased on a linked quarter basis $11 million (5.4 percent) primarily due to the impact of acquisitions. Professional services expense was seasonally higher by $18 million (28.6 percent) across the majority of business lines. Technology and communications and other intangibles expense both increased over the prior quarter due to the impact of the FBOP Banks acquisition. These unfavorable variances were partially offset by lower marketing and business development expense of $32 million (23.4 percent) due to the timing of credit card product initiatives.

Provision for Income Taxes

     The provision for income taxes for the fourth quarter of 2009 resulted in a tax rate on a taxable-equivalent basis of 20.8 percent (effective tax rate of 15.2 percent) compared with 16.0 percent (effective tax rate of 7.1 percent) in the fourth quarter of 2008 and 18.4 percent (effective tax rate of 12.4 percent) in the third quarter of 2009. The increase in the effective tax rate as compared with the same quarter of 2008 principally reflects the marginal impact of higher pretax earnings year-over-year.

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 18

ALLOWANCE FOR CREDIT LOSSES Table 8

($ in millions)

	4Q		3Q		2Q		1Q			4Q
	2009		2009		2009		2009			2008
Balance, beginning of period	$	4,986	$	4,571	$	4,105	$	3,639		$	2,898
Net charge-offs
Commercial		250		200		177		112			108
Lease financing		33		44		55		55			31
Total commercial		283		244		232		167			139
Commercial mortgages		30		30		28		13			14
Construction and development		144		159		93		117			63
Total commercial real estate		174		189		121		130			77
Residential mortgages		153		129		116		91			84
Credit card		285		271		263		212			169
Retail leasing		5		8		10		13			11
Home equity and second mortgages		96		89		83		70			52
Other retail		111		111		102		99			95
Total retail		497		479		458		394			327
Total net charge-offs, excluding covered assets		1,107		1,041		927		782			627
Covered assets		3		—		2		6			5
Total net charge-offs		1,110		1,041		929		788			632
Provision for credit losses		1,388		1,456		1,395		1,318			1,267
Acquisitions and other changes		—		—		—		(64	)		106
Balance, end of period	$	5,264	$	4,986	$	4,571	$	4,105		$	3,639
Components
Allowance for loan losses	$	5,079	$	4,825	$	4,377	$	3,947		$	3,514
Liability for unfunded credit commitments		185		161		194		158			125
Total allowance for credit losses	$	5,264	$	4,986	$	4,571	$	4,105		$	3,639
Gross charge-offs	$	1,174	$	1,105	$	992	$	840		$	678
Gross recoveries	$	64	$	64	$	63	$	52		$	46
Allowance for credit losses as a percentage of
Period-end loans, excluding covered assets		3.04		2.88		2.66		2.37			2.09
Nonperforming loans, excluding covered assets		153		150		152		169			206
Nonperforming assets, excluding covered assets		135		134		137		152			184
Period-end loans		2.69		2.72		2.51		2.23			1.96
Nonperforming loans		97		125		124		131			151
Nonperforming assets		89		114		114		120			139

Credit Quality

     Net charge-offs and nonperforming assets continued to trend higher, reflecting the recessionary economic environment, although excluding covered assets, the rate of increase continued to moderate during the fourth quarter of 2009. The allowance for credit losses was $5,264 million at December 31, 2009, compared with $4,986 million at September 30, 2009, and $3,639 million at December 31, 2008. Total net

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 19

charge-offs in the fourth quarter of 2009 were $1,110 million, compared with $1,041 million in the third quarter of 2009, and $632 million in the fourth quarter of 2008. The increase in total net charge-offs compared with a year ago was driven by economic factors affecting the residential housing markets, including homebuilding and related industries, commercial real estate properties and credit costs associated with credit card and other consumer and commercial loans as the economy weakened. As a result of the stress in these areas, the Company recorded $278 million of provision for credit losses in excess of net charge-offs, increasing the allowance for credit losses during the fourth quarter of 2009.

     Commercial and commercial real estate loan net charge-offs increased to $457 million in the fourth quarter of 2009 (2.16 percent of average loans outstanding) compared with $433 million (2.02 percent of average loans outstanding) in the third quarter of 2009 and $216 million (.96 percent of average loans outstanding) in the fourth quarter of 2008. This increasing trend reflected stress in commercial real estate, and residential housing, especially homebuilding and related industry sectors, along with the impact of current economic conditions on the Company’s commercial loan portfolios.

     Residential mortgage loan net charge-offs were $153 million in the fourth quarter of 2009 (2.37 percent of average loans outstanding) compared with $129 million (2.10 percent of average loans outstanding) in the third quarter of 2009 and $84 million (1.43 percent of average loans outstanding) in the fourth quarter of 2008. Total retail loan net charge-offs were $497 million (3.11 percent of average loans outstanding) in the fourth quarter of 2009 compared with $479 million (3.05 percent of average loans outstanding) in the third quarter of 2009 and $327 million (2.21 percent of average loans outstanding) in the fourth quarter of 2008. The increased residential mortgage and retail loan credit losses reflected the adverse impact of current economic conditions on consumers, as rising unemployment levels increased losses in prime-based residential portfolios.

     The ratio of the allowance for credit losses to period-end loans was 2.69 percent (3.04 percent excluding covered assets) at December 31, 2009, compared with 2.72 percent (2.88 percent excluding covered assets) at September 30, 2009, and 1.96 percent (2.09 percent excluding covered assets) at December 31, 2008. The ratio of the allowance for credit losses to nonperforming loans was 97 percent (153 percent excluding covered assets) at December 31, 2009, compared with 125 percent (150 percent excluding covered assets) at September 30, 2009, and 151 percent (206 percent excluding covered assets) at December 31, 2008.

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 20

CREDIT RATIOS Table 9

(Percent)

	4Q		3Q		2Q		1Q		4Q
	2009		2009		2009		2009		2008
Net charge-offs ratios (a)
Commercial		2.28		1.78		1.50		.92		.85
Lease financing		2.02		2.66		3.29		3.29		1.87
Total commercial		2.25		1.89		1.72		1.21		.97
Commercial mortgages		.48		.49		.47		.22		.24
Construction and development		6.24		6.62		3.79		4.82		2.59
Total commercial real estate		2.03		2.22		1.44		1.58		.94
Residential mortgages		2.37		2.10		1.94		1.54		1.43
Credit card (b)		6.89		6.99		7.36		6.32		5.18
Retail leasing		.43		.66		.80		1.03		.86
Home equity and second mortgages		1.96		1.82		1.72		1.48		1.11
Other retail		1.91		1.94		1.80		1.75		1.70
Total retail		3.11		3.05		2.99		2.62		2.21
Total net charge-offs, excluding covered assets		2.54		2.41		2.15		1.82		1.45
Covered assets		.06		—		.07		.21		.38
Total net charge-offs		2.30		2.27		2.03		1.72		1.42
Delinquent loan ratios — 90 days or more past due excluding nonperforming loans (c)
Commercial		.22		.17		.16		.19		.13
Commercial real estate		.02		.12		.22		.07		.11
Residential mortgages		2.80		2.32		2.11		2.03		1.55
Retail		1.07		1.00		.94		.94		.82
Total loans, excluding covered assets		.88		.78		.72		.68		.56
Covered assets		3.48		7.92		7.60		6.76		5.13
Total loans		1.18		1.16		1.12		1.05		.84
Delinquent loan ratios — 90 days or more past due including nonperforming loans (c)
Commercial		2.25		2.19		1.89		1.59		.82
Commercial real estate		5.22		5.22		5.05		3.87		3.34
Residential mortgages		4.59		3.86		3.46		3.02		2.44
Retail		1.39		1.28		1.19		1.16		.97
Total loans, excluding covered assets		2.87		2.69		2.48		2.08		1.57
Covered assets		12.38		14.74		14.10		13.11		10.74
Total loans		3.96		3.34		3.15		2.74		2.14

(a)	Annualized and calculated on average loan balances
(b)	Net charge-offs as a percent of average loans outstanding, excluding portfolio purchases where the acquired
	loans were recorded at fair value at the purchase date, were 7.46 percent for the fourth quarter of 2009 and
	7.30 percent for the third quarter of 2009.
(c)	Ratios are expressed as a percent of ending loan balances.

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 21

ASSET QUALITY Table 10

($ in millions)

	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
	2009		2009		2009		2009		2008
Nonperforming loans
Commercial	$	866	$	908	$	785	$	651	$	290
Lease financing		125		119		123		119		102
Total commercial		991		1,027		908		770		392
Commercial mortgages		581		502		471		392		294
Construction and development		1,192		1,230		1,156		887		780
Total commercial real estate		1,773		1,732		1,627		1,279		1,074
Residential mortgages		467		383		324		239		210
Retail		204		174		155		135		92
Total nonperforming loans, excluding covered assets		3,435		3,316		3,014		2,423		1,768
Covered assets		2,003		672		682		702		643
Total nonperforming loans		5,438		3,988		3,696		3,125		2,411
Other real estate		437		366		293		257		190
Other nonperforming assets		32		38		27		28		23
Total nonperforming assets (a)	$	5,907	$	4,392	$	4,016	$	3,410	$	2,624
Accruing loans 90 days or more past due, excluding covered assets	$	1,525	$	1,344	$	1,245	$	1,185	$	967
Accruing loans 90 days or more past due	$	2,309	$	2,125	$	2,042	$	1,932	$	1,554
Restructured loans that continue to accrue interest	$	2,278	$	2,254	$	2,107	$	1,901	$	1,509
Nonperforming assets to loans plus ORE, excluding covered assets (%)		2.25		2.14		1.94		1.56		1.14
Nonperforming assets to loans plus ORE (%)		3.02		2.39		2.20		1.85		1.42

(a) Does not include accruing loans 90 days or more past due or restructured loans that continue to accrue interest.

     Nonperforming assets at December 31, 2009, totaled $5,907 million, compared with $4,392 million at September 30, 2009, and $2,624 million at December 31, 2008. Included in December 31, 2009, nonperforming assets were $2,003 million of assets covered under loss sharing agreements with the FDIC that substantially reduce the risk of credit losses to the Company. The increase in nonperforming covered assets was due to $1,442 million of loans and other real estate acquired as part of the FBOP Banks acquisition. The ratio of nonperforming assets to loans and other real estate was 3.02 percent (2.25 percent excluding covered assets) at December 31, 2009, compared with 2.39 percent (2.14 percent excluding covered assets) at September 30, 2009, and 1.42 percent (1.14 percent excluding covered assets) at December 31, 2008. The increase in nonperforming assets (excluding covered assets) compared with a year ago was driven primarily by the residential construction portfolio and related industries and the residential

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 22

mortgage portfolio, as well as an increase in foreclosed residential properties and the impact of the economic slowdown on other commercial and consumer customers. The Company expects nonperforming assets, including other real estate owned, to continue to increase, however at a decreasing rate as compared with prior periods, as difficult economic conditions affect more borrowers in both the commercial and consumer loan portfolios. Accruing loans 90 days or more past due increased to $2,309 million ($1,525 million excluding covered assets) at December 31, 2009, compared with $2,125 million ($1,344 million excluding covered assets) at September 30, 2009, and $1,554 million ($967 million excluding covered assets) at December 31, 2008. The year-over-year increase of $558 million (excluding covered assets) reflected stress in residential mortgages, commercial, construction, credit cards, and home equity loans. Restructured loans that continue to accrue interest have also increased compared with the fourth quarter of 2008 and the third quarter of 2009, reflecting the impact of loan modifications for certain residential mortgage and consumer credit card customers in light of current economic conditions. The Company expects this trend to continue as the Company actively works with customers to modify loans for borrowers who are having financial difficulties.

CAPITAL POSITION Table 11

($ in millions)

	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
	2009			2009			2009			2009			2008
Total U.S. Bancorp shareholders’ equity	$	25,963		$	25,171		$	24,171		$	27,223		$	26,300
Tier 1 capital		22,610			21,990			21,710			25,284			24,426
Total risk-based capital		30,458			30,126			30,039			33,504			32,897
Tier 1 capital ratio		9.6	%		9.5	%		9.4	%		10.9	%		10.6	%
Total risk-based capital ratio		12.9			13.0			13.0			14.4			14.3
Leverage ratio		8.5			8.6			8.4			9.8			9.8
Tier 1 common equity ratio		6.8			6.8			6.7			5.4			5.1
Tangible common equity ratio		5.3			5.4			5.1			3.8			3.3
Tangible common equity as a percent of risk-weighted assets		6.1			6.0			5.7			4.2			3.7

     Total U.S. Bancorp shareholders’ equity was $26.0 billion at December 31, 2009, compared with $25.2 billion at September 30, 2009, and $26.3 billion at December 31, 2008. The year-over-year decrease was a result of the Company’s second quarter of 2009 redemption of $6.6 billion of preferred stock previously held by the U.S. Department of the Treasury, partially offset by earnings and a $2.7 billion (153 million shares) common stock offering in the second quarter of 2009. During the third quarter of 2009, the

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 23

Company repurchased the warrant previously issued to the U.S. Department of the Treasury as part of the Company’s participation in the Treasury’s Capital Purchase Program for $139 million. The repurchase price was charged to equity. The Tier 1 capital ratio was 9.6 percent at December 31, 2009, compared with 9.5 percent at September 30, 2009, and 10.6 percent at December 31, 2008. The Tier 1 common equity ratio was 6.8 percent at both December 31, 2009, and September 30, 2009, compared with 5.1 percent at December 31, 2008. The tangible common equity ratio was 5.3 percent at December 31, 2009, compared with 5.4 percent at September 30, 2009, and 3.3 percent at December 31, 2008. All regulatory ratios continue to be in excess of “well-capitalized” requirements.

COMMON SHARES Table 12

(Millions)

	4Q		3Q		2Q		1Q		4Q
	2009		2009		2009		2009		2008
Beginning shares outstanding		1,912		1,912		1,759		1,755		1,754
Shares issued for stock option and stock purchase plans, acquisitions and other corporate purposes		1		—		153		4		1
Ending shares outstanding		1,913		1,912		1,912		1,759		1,755

LINE OF BUSINESS FINANCIAL PERFORMANCE (a) Table 13

($ in millions)

	Net Income Attributable													Net Income Attributable
	to U.S. Bancorp							Percent Change						to U.S. Bancorp								4Q 2009
	4Q		3Q		4Q			4Q09 vs			4Q09 vs			Full Year		Full Year			Percent			Earnings
Business Line	2009		2009		2008			3Q09			4Q08			2009		2008			Change			Composition
Wholesale Banking	$	85	$	53	$	84			60.4			1.2		$	240	$	902			(73.4	)		14	%
Consumer Banking		253		223		142			13.5			78.2			917		843			8.8			42
Wealth Management & Securities Services		85		96		120			(11.5	)		(29.2	)		373		484			(22.9	)		14
Payment Services		73		72		82			1.4			(11.0	)		291		748			(61.1	)		12
Treasury and Corporate Support		106		159		(98	)		(33.3	)	nm				384		(31	)	nm				18
Consolidated Company	$	602	$	603	$	330			(.2	)		82.4		$	2,205	$	2,946			(25.2	)		100	%

(a) preliminary data

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 24

Lines of Business

     The Company’s major lines of business are Wholesale Banking, Consumer Banking, Wealth Management & Securities 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. Noninterest expenses incurred by centrally managed operations or business lines that directly support another business line’s operations are charged to the applicable business line based on its utilization of those services primarily measured by the volume of customer activities, number of employees or other relevant factors. These allocated expenses are reported as net shared services expense within noninterest 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 2009, business line results were restated and presented on a comparable basis for organization and methodology changes to more closely align capital allocation with Basel II requirements and to allocate the provision for credit losses based on net charge-offs and changes in the risks of specific loan portfolios. Previously, the provision for credit losses in excess of net charge-offs remained in Treasury and Corporate Support, and the other lines of business’ results included only the portion of the provision for credit losses equal to net charge-offs.

     Wholesale Banking offers lending, equipment finance and small-ticket leasing, depository, treasury management, capital markets, foreign exchange, international trade services and other financial services to middle market, large corporate, commercial real estate, financial institution and public sector clients. Wholesale Banking recorded net income of $85 million in the fourth quarter of 2009, compared with $84 million in the fourth quarter of 2008 and $53 million in the third quarter of 2009. Wholesale Banking’s net income was flat year-over-year as a reduction in the provision for credit losses was offset by lower total net revenue and higher total noninterest expense. Net interest income decreased $97 million (15.5 percent) year-over-year due principally to lower average total loans due to lower utilization of existing commitments and reduced demand for new loans, as well as the impact of declining rates on the margin benefit from deposits, partially offset by improved spreads on loans and higher average deposit balances. Total noninterest income increased $69 million (31.2 percent) due to strong growth in capital markets, letters of credit and commercial loan fees. In addition, treasury management fees and valuations on equity investments also improved. Total

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 25

noninterest expense increased $17 million (6.0 percent) over a year ago, primarily due to an increase in FDIC deposit insurance expense and increased costs related to other real estate owned. The provision for credit losses was $47 million (10.8 percent) lower year-over-year due to a slowing of the deterioration in the credit quality of commercial and commercial real estate loans, partially offset by an increase in net charge-offs.

     Wholesale Banking’s contribution to net income in the fourth quarter of 2009 was $32 million (60.4 percent) higher than the third quarter of 2009. This favorable variance was due to an increase in total net revenue and a decrease in the provision for credit losses, partially offset by higher total noninterest expense. Total net revenue was higher on a linked quarter basis due to an increase in total noninterest income (22.4 percent) partially offset by a decrease in net interest income (2.4 percent). The increase in total noninterest income was principally due to improved equity investment income and strong growth in commercial products revenue including, standby letters of credit, commercial leasing and other loan fees. The decrease in net interest income was due to lower average loan balances, reflecting reduced commitment utilization by wholesale customers and lower demand for new loans, and a reduction in the margin benefit of deposits, partially offset by improved spreads on new loan activity and growth in average deposit balances. Total noninterest expense increased $31 million (11.6 percent) principally due to increased costs for other real estate owned. The provision for credit losses declined $41 million (9.6 percent) compared with the third quarter of 2009, as deterioration in the commercial loan portfolios stabilized somewhat. The favorable change in the business line’s provision for credit losses due to this stabilization was partially offset by an increase in net charge-offs.

     Consumer Banking delivers products and services through banking offices, telephone servicing and sales, on-line services, direct mail and ATM processing. It encompasses community banking, metropolitan banking, in-store banking, small business banking, consumer lending, mortgage banking, consumer finance, workplace banking, student banking and 24-hour banking. Consumer Banking contributed $253 million of the Company’s net income in the fourth quarter of 2009, a 78.2 percent increase over the fourth quarter of 2008, and a 13.5 percent increase over the prior quarter. Within Consumer Banking, the retail banking division accounted for $125 million of the total contribution, 17.2 percent below the same quarter of last year, and 64.5 percent higher on a linked quarter basis. The decrease in the retail banking division from the same period of 2008 was due to an increase in the provision for credit losses, driven by credit deterioration, and higher total noninterest expense from business investments, both of which were partially offset by

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 26

growth in total net revenue. Net interest income for the retail banking division decreased $61 million (6.2 percent) year-over-year as revenues from higher average loan and deposit balances, including the impact of the Downey Savings & Loan Association, F.A. and PFF Bank and Trust acquisitions, and yield-related loan fees were offset by a reduction in the margin benefit from deposits in a declining interest rate environment. Total noninterest income for the retail banking division increased $109 million (27.4 percent) over a year ago due to a significant improvement in retail lease residual valuation losses and higher ATM processing services fees, partially offset by lower deposit service charges. Total noninterest expense for the division in the fourth quarter of 2009 was $39 million (5.0 percent) higher year-over-year, principally due to higher FDIC deposit insurance expense and the impact of acquisitions. The provision for credit losses for the retail banking division increased due to year-over-year growth in net charge-offs and stress in residential mortgages, home equity and other installment and consumer loan portfolios. In the fourth quarter of 2009, the mortgage banking division’s contribution was $128 million, a $137 million increase over the fourth quarter of 2008. The division’s total net revenue increased $242 million over a year ago, reflecting robust mortgage loan production, improved loan sale profitability and an increase in net interest income related to growth in average loans held for sale. Total noninterest expense for the mortgage banking division increased $38 million (50.0 percent) over the fourth quarter of 2008 primarily due to higher production levels and servicing costs associated with other real estate owned and foreclosures. In addition, the provision for credit losses decreased $11 million (37.9 percent) for the mortgage banking division.

     Consumer Banking’s contribution in the fourth quarter of 2009 was higher by $30 million (13.5 percent) than the third quarter of 2009 primarily due to lower provision for credit losses. Within Consumer Banking, the retail banking division’s contribution increased $49 million (64.5 percent) on a linked quarter basis due to favorable variances in total net revenue and the provision for credit losses, partially offset by higher total noninterest expense. Total net revenue for the retail banking division increased $38 million (2.7 percent), principally due to higher net interest income, resulting from an increase in average loan balances and improved loans spreads, in addition to a significant improvement in retail lease residual valuation losses, partially offset by lower deposit service charges. Total noninterest expense for the retail banking division increased $21 million (2.6 percent) on a linked quarter basis, primarily due to the reinstatement of certain salaries previously reduced as part of cost containment activities and higher FDIC deposit insurance expense and expenses related to other business initiatives. The provision for credit losses for the division decreased $61 million (12.9 percent), as deterioration in the credit quality of consumer loan portfolios moderated

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 27

compared with the third quarter of 2009. The contribution of the mortgage banking division decreased $19 million (12.9 percent) from the third quarter of 2009, driven by lower mortgage production and the net change in the valuation of MSRs and related economic hedging activities, partially offset by higher servicing income. Total net revenue decreased $72 million (17.8 percent) due to lower mortgage banking revenue and a $15 million (12.2 percent) decrease in net interest income due to a lower average balance in the mortgages held for sale portfolio. The mortgage banking division’s provision for credit losses decreased $37 million (67.3 percent) on a linked quarter basis.

     Wealth Management & Securities Services provides trust, private banking, financial advisory, investment management, retail brokerage services, insurance, custody and mutual fund servicing through five businesses: Wealth Management, Corporate Trust, FAF Advisors, Institutional Trust & Custody and Fund Services. Wealth Management & Securities Services contributed $85 million of the Company’s net income in the fourth quarter of 2009, a 29.2 percent decrease from the fourth quarter of 2008 and an 11.5 percent decrease from the third quarter of 2009. Total net revenue year-over-year decreased $54 million (12.4 percent). Net interest income was lower by $48 million (34.0 percent), primarily due to a decline in the margin benefit from average deposit balances, while total noninterest income decreased $6 million (2.0 percent) reflecting decreases in account volume and sales levels and the impact of interest rates on money market investment fees. Total noninterest expense was $3 million (1.2 percent) lower than the same quarter of 2008 due to lower processing costs and compensation and employee benefits expense, partially offset by higher FDIC deposit insurance expense.

     The decrease in the business line’s contribution in the fourth quarter of 2009 compared with the prior quarter was the result of lower total net revenue (2.1 percent) and higher total noninterest expense (5.3 percent). Net interest income was 9.4 percent higher, primarily due to increased deposit volumes. Total noninterest income was lower due to lower trust and investment management account-level fees and the impact of interest rates on money market investment fees. The total noninterest expense increase was primarily due to higher FDIC deposit insurance expense and other intangibles expense.

     Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate and purchasing card services, consumer lines of credit and merchant processing. Payment Services’ offerings are highly inter-related with banking products and services of the other lines of business and rely on access to the bank subsidiary’s settlement network, lower cost funding available to the Company, cross-selling opportunities and operating efficiencies. Payment Services contributed $73 million of the

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 28

Company’s net income in the fourth quarter of 2009, a decrease of 11.0 percent from the same period of 2008, but a 1.4 percent increase over the prior quarter. The decline year-over-year was primarily due to a $104 million (23.6 percent) increase in the provision for credit losses driven by an increase in net charge-offs. Total net revenue increased $143 million (14.4 percent). Net interest income increased $40 million (13.9 percent) due to strong growth in credit card balances, partially offset by the cost of rebates on the government card program. Total noninterest income increased $103 million (14.7 percent) year-over-year due to higher merchant processing services, higher corporate payment products and credit and debit card revenues primarily due to volume growth. Other income was higher due to a contract termination fee. Total noninterest expense increased $57 million (14.0 percent), principally due to higher marketing and business development expense related to credit card products, an increase in technology and communications expense due to increased volume and the formation of a joint venture and higher other intangibles expense.

     Payment Services’ contribution in the fourth quarter of 2009 was $73 million, basically flat compared with the third quarter of 2009. An increase in total net revenue was offset by an increase in the provision for credit losses. Total net revenue increased $53 million (4.9 percent) over the third quarter of 2009. Net interest income increased $29 million (9.7 percent) on a linked quarter basis primarily due to loan growth. Total noninterest income grew $24 million (3.1 percent) due to seasonally higher credit and debit card revenue and higher merchant processing services income due to fee-based activity. The provision for credit losses increased $51 million (10.3 percent) due to higher net charge-offs and the impact of credit card portfolio growth and higher delinquency rates.

     Treasury and Corporate Support includes the Company’s investment portfolios, funding, the FBOP Banks acquisition, capital management, asset securitization, interest rate risk management, the net effect of transfer pricing related to average balances and the residual aggregate of those expenses associated with corporate activities that are managed on a consolidated basis. Treasury and Corporate Support recorded net income of $106 million in the fourth quarter of 2009, compared with a net loss of $98 million in the fourth quarter of 2008 and net income of $159 million in the third quarter of 2009. Net interest income increased $316 million over the fourth quarter of 2008, reflecting the impact of the current rate environment, wholesale funding decisions, the FBOP Banks acquisition and the Company’s asset/liability position. Total noninterest income increased $85 million (45.9 percent) year-over-year, primarily due to lower net securities losses. Total noninterest expense increased $142 million (91.0 percent), principally due to costs related to affordable housing and other tax-advantaged projects and the impact of the FBOP Banks acquisition.

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 29

     Net income in the fourth quarter of 2009 was lower on a linked quarter basis as total noninterest expense was higher by $115 million (62.8 percent) partially offset by an increase in total net revenue of $75 million (35.9 percent). The increase in total noninterest expense over the third quarter of 2009 was due principally to the impact of the FBOP Banks acquisition and costs related to affordable housing and other tax-advantaged projects. The increase in total net revenue was driven by an increase in net interest income, partially offset by higher net securities losses.

Additional schedules containing more detailed information about the Company’s business line results are available on the web at usbank.com or by calling Investor Relations at 612-303-0781.

On Wednesday, January 20, 2010, at 7:30 a.m. (CT) Richard K. Davis, chairman, president and chief executive officer, and Andrew Cecere, vice chairman and chief financial officer, will host a conference call to discuss the financial results. A webcast of the conference call and a copy of the presentation will be available on the Company’s website. The conference call will also be available by telephone. To access the conference call from locations within the United States and Canada, please dial 866-316-1409. Participants calling from outside the United States and Canada, please dial 706-634-9086. The conference ID number for all participants is 48090877. For those unable to participate during the live call, a recording of the call will be available approximately two hours after the conference call ends on Wednesday, January 20th, and will run through Wednesday, January 27th, at 11:00 p.m. (CT). To access the recorded message within the United States and Canada, dial 800-642-1687. If calling from outside the United States and Canada, please dial 706-645-9291 to access the recording. The conference ID is 48090877. To access the webcast and presentation go to www.usbank.com and click on “About U.S. Bancorp” and then “Investor/Shareholder Information.” The webcast link and presentation can be found under “Webcasts and Presentations.”

Minneapolis-based U.S. Bancorp (“USB”), with $281 billion in assets, is the parent company of U.S. Bank National Association. The Company operates 3,015 banking offices and 5,148 ATMs in 24 states, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at usbank.com.

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 30

Forward-Looking Statements

The following information appears in accordance with 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 made. 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 involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. Global and domestic economies could fail to recover from the recent economic downturn or could experience another severe contraction, which could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities. Global financial markets could experience a recurrence of significant turbulence, which could reduce the availability of funding to certain financial institutions and lead to a tightening of credit, a reduction of business activity, and increased market volatility. Stress in the commercial real estate markets, as well as a delay or failure of recovery in the residential real estate markets, could cause additional credit losses and deterioration in asset values. In addition, U.S. Bancorp’s business and financial performance could be impacted as the financial industry restructures in the current environment, by increased regulation of financial institutions or other effects of recently enacted legislation, and by changes in the competitive landscape. U.S. Bancorp’s results could also be adversely affected by continued deterioration in general business and economic conditions; changes in interest 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 securities held in its investment securities portfolio; legal and regulatory developments; increased competition from both banks and non-banks; changes in customer behavior and preferences; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management’s ability to effectively manage credit risk, market risk, operational risk, legal risk, and regulatory and compliance risk.

For discussion of these and other risks that may cause actual results to differ from expectations, refer to U.S. Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2008, on file with the Securities and Exchange Commission, including the sections entitled “Risk Factors” and “Corporate Risk Profile” 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. Forward-looking statements speak only as of the date they are made, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.

Non-Regulatory Capital Ratios

In addition to capital ratios defined by banking regulators, the Company considers various other ratios when evaluating capital utilization and adequacy, including:

• Tangible common equity to tangible assets,

• Tier 1 common equity to risk-weighted assets, and

• Tangible common equity to risk-weighted assets.

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U.S. Bancorp Reports Fourth Quarter 2009 Results
January 20, 2010
Page 31

These non-regulatory capital ratios are viewed by management as useful additional methods of reflecting the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of the Company’s capitalization to other financial services companies. These ratios differ from capital ratios defined by banking regulators principally in that the numerator excludes shareholders’ equity associated with preferred securities, the nature and extent of which varies among different financial services companies. These ratios are not determined in accordance with generally accepted accounting principals (“GAAP”) and are not defined in federal banking regulations. These non-regulatory capital ratios disclosed by the Company may be considered non-GAAP financial measures.

Despite the importance of these non-regulatory ratios to the Company, there are no standardized definitions for them, and, as a result, the Company’s calculation methods may differ from those used by other financial services companies. Also, 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 the non-regulatory capital ratios.

###

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U.S. Bancorp
Consolidated Statement of Income

	Three Months Ended						Year Ended
(Dollars and Shares in Millions, Except Per Share Data)	December 31,						December 31,
(Unaudited)	2009			2008			2009			2008
Interest Income
Loans	$	2,496		$	2,575		$	9,564		$	10,051
Loans held for sale		56			53			277			227
Investment securities		396			477			1,606			1,984
Other interest income		26			36			91			156
Total interest income		2,974			3,141			11,538			12,418
Interest Expense
Deposits		265			392			1,202			1,881
Short-term borrowings		127			205			539			1,066
Long-term debt		272			423			1,279			1,739
Total interest expense		664			1,020			3,020			4,686
Net interest income		2,310			2,121			8,518			7,732
Provision for credit losses		1,388			1,267			5,557			3,096
Net interest income after provision for credit losses		922			854			2,961			4,636
Noninterest Income
Credit and debit card revenue		273			256			1,055			1,039
Corporate payment products revenue		166			154			669			671
Merchant processing services		312			271			1,148			1,151
ATM processing services		101			95			410			366
Trust and investment management fees		277			300			1,168			1,314
Deposit service charges		238			260			970			1,081
Treasury management fees		132			128			552			517
Commercial products revenue		185			131			615			492
Mortgage banking revenue		218			23			1,035			270
Investment products fees and commissions		27			37			109			147
Securities gains (losses), net		(158	)		(253	)		(451	)		(978	)
Other		245			61			672			741
Total noninterest income		2,016			1,463			7,952			6,811
Noninterest Expense
Compensation		816			770			3,135			3,039
Employee benefits		145			124			574			515
Net occupancy and equipment		214			202			836			781
Professional services		81			73			255			240
Marketing and business development		105			90			378			310
Technology and communications		186			156			673			598
Postage, printing and supplies		70			77			288			294
Other intangibles		107			93			387			355
Other		504			353			1,755			1,216
Total noninterest expense		2,228			1,938			8,281			7,348
Income before income taxes		710			379			2,632			4,099
Applicable income taxes		108			27			395			1,087
Net income		602			352			2,237			3,012
Net income attributable to noncontrolling interests		—			(22	)		(32	)		(66	)
Net income attributable to U.S. Bancorp	$	602		$	330		$	2,205		$	2,946
Net income applicable to U.S. Bancorp common shareholders	$	580		$	259		$	1,803		$	2,819
Earnings per common share	$	.30		$	.15		$	.97		$	1.62
Diluted earnings per common share	$	.30		$	.15		$	.97		$	1.61
Dividends declared per common share	$	.050		$	.425		$	.200		$	1.700
Average common shares outstanding		1,908			1,754			1,851			1,742
Average diluted common shares outstanding		1,917			1,763			1,859			1,756

Page 32

U.S. Bancorp
Consolidated Ending Balance Sheet

	December 31,			December 31,
(Dollars in Millions)	2009			2008
Assets
Cash and due from banks	$	6,206		$	6,859
Investment securities
Held-to-maturity		47			53
Available-for-sale		44,721			39,468
Loans held for sale		4,772			3,210
Loans
Commercial		48,792			56,618
Commercial real estate		34,093			33,213
Residential mortgages		26,056			23,580
Retail		63,955			60,368
Total loans, excluding covered assets		172,896			173,779
Covered assets		22,512			11,450
Total loans		195,408			185,229
Less allowance for loan losses		(5,079	)		(3,514	)
Net loans		190,329			181,715
Premises and equipment		2,263			1,790
Goodwill		9,011			8,571
Other intangible assets		3,406			2,834
Other assets		20,421			21,412
Total assets	$	281,176		$	265,912
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing	$	38,186		$	37,494
Interest-bearing		115,135			85,886
Time deposits greater than $100,000		29,921			35,970
Total deposits		183,242			159,350
Short-term borrowings		31,312			33,983
Long-term debt		32,580			38,359
Other liabilities		7,381			7,187
Total liabilities		254,515			238,879
Shareholders’ equity
Preferred stock		1,500			7,931
Common stock		21			20
Capital surplus		8,319			5,830
Retained earnings		24,116			22,541
Less treasury stock		(6,509	)		(6,659	)
Accumulated other comprehensive income (loss)		(1,484	)		(3,363	)
Total U.S. Bancorp shareholders’ equity		25,963			26,300
Noncontrolling interests		698			733
Total equity		26,661			27,033
Total liabilities and equity	$	281,176		$	265,912

Page 33

U.S. Bancorp
Non-Regulatory Capital Ratios

	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in Millions, Unaudited)	2009*			2009			2009			2009			2008
Total equity	$	26,661		$	25,880		$	24,886		$	27,942		$	27,033
Preferred stock		(1,500	)		(1,500	)		(1,500	)		(7,939	)		(7,931	)
Noncontrolling interests		(698	)		(709	)		(715	)		(719	)		(733	)
Goodwill (net of deferred tax liability)		(8,482	)		(8,161	)		(8,035	)		(8,001	)		(8,153	)
Intangible assets, other than mortgage servicing rights		(1,657	)		(1,604	)		(1,479	)		(1,516	)		(1,640	)
Tangible common equity (a)		14,324			13,906			13,157			9,767			8,576
Tier 1 capital, determined in accordance with prescribed regulatory requirements		22,610			21,990			21,710			25,284			24,426
Trust preferred securities		(4,524	)		(4,024	)		(4,024	)		(4,024	)		(4,024	)
Preferred stock		(1,500	)		(1,500	)		(1,500	)		(7,939	)		(7,931	)
Noncontrolling interests, less preferred stock not eligible for Tier 1 capital		(692	)		(692	)		(692	)		(692	)		(693	)
Tier 1 common equity (b)		15,894			15,774			15,494			12,629			11,778
Total assets		281,176			265,058			265,560			263,624			265,912
Goodwill (net of deferred tax liability)		(8,482	)		(8,161	)		(8,035	)		(8,001	)		(8,153	)
Intangible assets, other than mortgage servicing rights		(1,657	)		(1,604	)		(1,479	)		(1,516	)		(1,640	)
Tangible assets (c)		271,037			255,293			256,046			254,107			256,119
Risk-weighted assets, determined in accordance with prescribed regulatory requirements (d)		235,202			231,993			231,821			232,043			230,628
Ratios
Tangible common equity to tangible assets (a)/(c)		5.3	%		5.4	%		5.1	%		3.8	%		3.3	%
Tier 1 common equity to risk-weighted assets (b)/(d)		6.8			6.8			6.7			5.4			5.1
Tangible common equity to risk-weighted assets (a)/(d)		6.1			6.0			5.7			4.2			3.7

* Preliminary data. Subject to change prior to filings with applicable regulatory agencies.

Page 34

EX-99.1

exv99w1

EX-99.2

Exhibit 99.2

U.S. Bancorp 4Q09 Earnings Conference Call January 20, 2010 Richard K. Davis Chairman, President and CEO Andy Cecere Vice Chairman and CFO

2 Forward-looking Statements and Additional Information The following information appears in accordance with the Private Securities Litigation Reform Act of 1995: This presentation 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 made. 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 involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. Global and domestic economies could fail to recover from the recent economic downturn or could experience another severe contraction, which could adversely affect our revenues and the values of our assets and liabilities. Global financial markets could experience a recurrence of significant turbulence, which could reduce the availability of funding to certain financial institutions and lead to a tightening of credit, a reduction of business activity, and increased market volatility. Stress in the commercial real estate markets, as well as a delay or failure of recovery in the residential real estate markets, could cause additional credit losses and deterioration in asset values. In addition, our business and financial performance could be impacted as the financial industry restructures in the current environment, by increased regulation of financial institutions or other effects of recently enacted legislation, and by changes in the competitive landscape. Our results could also be adversely affected by continued deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in our investment securities portfolio; legal and regulatory developments; increased competition from both banks and non-banks; changes in customer behavior and preferences; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management's ability to effectively manage credit risk, market risk, operational risk, legal risk, and regulatory and compliance risk. For discussion of these and other risks that may cause actual results to differ from expectations, refer to U.S. Bancorp's Annual Report on Form 10-K for the year ended December 31, 2008, on file with the Securities and Exchange Commission, including the sections entitled "Risk Factors" and "Corporate Risk Profile" 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. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events. This presentation includes non-GAAP financial measures to describe U.S. Bancorp's performance. The reconciliations of those measures to GAAP measures are provided within or in the appendix of the presentation. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

4Q09 Highlights Net income of $602 million; $.30 per diluted common share Record total net revenue of $4.4 billion Achieved positive operating leverage vs. 4Q08; industry leading efficiency ratio of 49.1% Strong average deposit growth of 25.2% (15.3% excluding acquisitions) and average loan growth of 8.2% (0.4% excluding acquisitions) vs. 4Q08 Net charge-offs and nonperforming assets (excluding covered assets) increased at a moderating rate; provision for credit losses declined vs. 3Q09 Maintained strong capital position Acquired the majority of the operations of the banking subsidiaries of FBOP Corporation of Oak Park, IL from the FDIC

Performance Ratios 4Q08 1Q09 2Q09 3Q09 4Q09 Return on Avg Common Equity 0.053 0.09 0.042 0.1 0.096 Return on Avg Assets 0.0051 0.0081 0.0071 0.009 0.0086 4Q08 1Q09 2Q09 3Q09 4Q09 Efficiency Ratio 0.5 0.458 0.51 0.475 0.491 Net Interest Margin 0.0381 0.0359 0.036 0.0367 0.0383 ROE and ROA Efficiency Ratio and Net Interest Margin Return on Avg Common Equity Return on Avg Assets Efficiency Ratio Net Interest Margin Efficiency ratio computed as noninterest expense divided by the sum of net interest income on a taxable-equivalent basis and noninterest income excluding securities gains (losses) net

Capital Position $ in billions

4Q08 1Q09 2Q09 3Q09 4Q09 Loans 177.2 185.7 183.9 182 191.6 Deposits 144.5 160.5 163.2 166.4 180.9 Loan and Deposit Growth Average Balances Year-Over-Year Growth 4Q09 Acquisition Adjusted Loan Growth = 0.4% Deposit Growth = 15.3% 8.2% $191.6 17.0% $177.2 19.6% $185.7 12.8% $183.9 9.3% $182.0 25.2% $180.9 15.2% $144.5 22.7% $160.5 20.2% $163.2 24.6% $166.4 $ in billions

Taxable-equivalent basis 4Q08 1Q09 2Q09 3Q09 4Q09 Reported 3624 3883 4159 4250 4376 Core 3839 3989 4178 4287 4534 Revenue Growth USB Record Revenue 4Q09 Year-Over-Year Core Growth 4.4% 8.0% 8.2% 12.0% 18.1% Reported Core $ in millions

3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 NPA $ Change 76 49 155 290 357 489 727 626 386 184 NPA % Change 0.13 0.08 0.22 0.34 0.31 0.33 0.37 0.23 0.12 0.05 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 NCO $ Change 8 26 68 103 102 134 156 141 112 69 NCO % Change 0.041884817 0.130653266 0.302222222 0.351535836 0.257575758 0.269076305 0.246835443 0.17893401 0.12056 0.07 Credit Quality $ in millions, linked quarter change * Excluding Covered Assets (assets subject to loss sharing agreements with FDIC) Change in Net Charge-offs Change in Nonperforming Assets* The Company continues to expect Net Charge-offs and Nonperforming Assets, excluding nonperforming acquired covered assets, to increase at a decreasing rate NCO $ Change (Left Scale) NCO % Change (Right Scale) NPA $ Change (Left Scale) NPA % Change (Right Scale)

Credit Quality - Reserves 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 Allowance 2260 2243 2448 2648 3004 3575 4105 4571 4986 Provision Exceeding NCO's 0 192 200 250 635 530 466 415 278 Provision/NCO's 1 1.66 1.51 1.5 2 1.67 1.5 1.4 1.25 Allowance for Credit Losses Allowance Provision Exceeding NCO's Provision/NCO's $ in millions

Credit Quality - Commercial Loans 4Q08 1Q09 2Q09 3Q09 4Q09 Average Loans 50328 49362 47362 44655 43490 Net Charge-offs Ratio 0.0085 0.0092 0.015 0.0178 0.0228 Average Loans and Net Charge-offs Ratios Key Statistics Comments Corporate loan demand remained weak as evidenced by the declining utilization trend Net charge-offs increased with losses coming mainly from leveraged sectors, such as mortgage banking, correspondent banking and gaming 4Q08 3Q09 4Q09 Average Loans 50,328 44,655 43,490 30-89 Delinquencies 1.32% 0.89% 1.02% 90+ Delinquencies 0.15% 0.19% 0.25% Nonperforming 0.58% 2.06% 2.05% 1208 0109 0209 0309 0409 0509 0609 0709 0809 0909 1009 1109 1209 Utilization 0.3705 0.3757 0.374 0.3662 0.3602 0.3507 0.3382 0.3201 0.311 0.3095 0.3007 0.3043 0.2883 Revolving Line Utilization Trend $ in millions

Credit Quality - Commercial Leases 4Q08 1Q09 2Q09 3Q09 4Q09 Average Loans 6608 6772 6697 6567 6489 Net Charge-offs Ratio 0.0187 0.0329 0.0329 0.0266 0.0202 Average Loans and Net Charge-offs Ratios Key Statistics Comments Delinquency levels and net charge-offs have declined due to improvement in the small ticket leasing portfolio 4Q08 3Q09 4Q09 Average Loans 6,608 6,567 6,489 30-89 Delinquencies 2.61% 2.28% 2.07% 90+ Delinquencies --% --% --% Nonperforming 1.49% 1.82% 1.91% $ in millions EF ST Mix 2165 4324 Equipment Finance $2,165 Small Ticket $4,324

Credit Quality - CRE Mortgages 4Q08 1Q09 2Q09 3Q09 4Q09 Average Loans 22967 23553 23875 24296 24895 Net Charge-offs Ratio 0.0024 0.0022 0.0047 0.0049 0.0048 Average Loans and Net Charge-offs Ratios Key Statistics Comments Average loans increased 2.5% on a linked quarter basis and increased 8.4% over 4Q08 due to the lack of permanent financing previously available in the CMBS market 4Q08 3Q09 4Q09 Average Loans 22,967 24,296 24,895 30-89 Delinquencies 0.83% 0.95% 1.08% 90+ Delinquencies --% 0.01% --% Nonperforming 1.25% 2.04% 2.30% Investor Owner Mix 13948 10947 Investor $13,948 Owner Occupied $10,947 $ in millions

Credit Quality - CRE Construction 4Q08 1Q09 2Q09 3Q09 4Q09 Average Loans 9691 9845 9852 9533 9149 Net Charge-offs Ratio 0.0259 0.0482 0.0379 0.0662 0.0624 Average Loans and Net Charge-offs Ratios Key Statistics Comments Residential construction has declined from $4.7 billion in 3Q07 to $2.3 billion in 4Q09, which includes $0.6 billion in condominium exposure Net charge-offs remain elevated at 6.24%, reflecting market value declines in both commercial and residential construction properties 4Q08 3Q09 4Q09 Average Loans 9,691 9,533 9,149 30-89 Delinquencies 4.33% 2.30% 2.67% 90+ Delinquencies 0.36% 0.39% 0.07% Nonperforming 7.98% 13.30% 13.57% Multi-Family Retial Res Construction Condo Construction A&D Commercial Office Other Mix 2126 1389 1689 627 1077 986 1255 Multi-family $2,126 Other $1,255 Office $986 A&D Construction $1,077 Retail $1,389 Condo Construction $627 Residential Construction $1,689 $ in millions

4Q08 1Q09 2Q09 3Q09 4Q09 Restructured 813 1129 1289 1338 1354 Credit Quality - Residential Mortgage 4Q08 1Q09 2Q09 3Q09 4Q09 Average Loans 23430 23915 23964 24405 25621 Net Charge-offs Ratio 0.0143 0.0154 0.0194 0.021 0.0237 Average Loans and Net Charge-offs Ratios Key Statistics Comments Continue to actively work with customers to modify loans for borrowers who are having financial difficulties Began participating in HAMP program in August 2009, now at 26% of active trial modifications as a percent of eligible modifications 4Q08 3Q09 4Q09 Average Loans 23,430 24,405 25,621 30-89 Delinquencies 2.27% 2.39% 2.36% 90+ Delinquencies 1.55% 2.32% 2.80% Nonperforming 0.89% 1.54% 1.79% Residential Mortgage Restructured Loans $ in millions

Credit Quality - Home Equity 4Q08 1Q09 2Q09 3Q09 4Q09 Average Loans 18691 19215 19314 19368 19444 Net Charge-offs Ratio 0.0111 0.0148 0.0172 0.0182 0.0196 Average Loans and Net Charge-offs Ratios Key Statistics Comments Demand is weak for home equity products High quality traditional portfolio (branch and private client originated) has performed well in declining home value environment 4Q08 3Q09 4Q09 Average Loans 18,691 19,368 19,444 30-89 Delinquencies 0.89% 1.00% 0.93% 90+ Delinquencies 0.55% 0.78% 0.78% Nonperforming 0.07% 0.13% 0.17% Traditional Consumer Finance Mix 87 13 Traditional: 87% Wtd Avg LTV: 71% NCO: 1.29% Consumer Finance: 13% Wtd Avg LTV: 83% NCO: 6.56% $ in millions

4Q08 3Q09 4Q09 Average Loans 12,976 15,387 16,399 30-89 Delinquencies 2.73% 2.58% 2.38% 90+ Delinquencies 2.20% 2.41% 2.59% Nonperforming 0.50% 0.77% 0.84% Credit Quality - Credit Card 4Q08 1Q09 2Q09 3Q09 4Q09 Average Loans 12976 13597 14329 15387 16399 Net Charge-offs Ratio 0.0518 0.0632 0.0736 0.0699 0.0689 Average Loans and Net Charge-offs Ratios Key Statistics Comments Excluding acquired portfolios, net charge-offs of 7.46% increased modestly from 7.30% in prior quarter Average loans have grown 6.6% on a linked quarter basis and 26.4% over 4Q08 due to new accounts, balance growth initiatives and portfolio acquisitions $ in millions Impact of Acquired Portfolios Net Charge-off Ratio 4Q08 3Q09 4Q09 As Reported 5.18% 6.99% 6.89% Excluding Acquired* 5.18% 7.30% 7.46% * Excluding portfolio purchases where the acquired loans were recorded at fair value at the purchase date

Credit Quality - Retail Leasing 4Q08 1Q09 2Q09 3Q09 4Q09 Average Loans 5062 5115 5031 4822 4620 Net Charge-offs Ratio 0.0086 0.0103 0.008 0.0066 0.0043 Average Loans and Net Charge-offs Ratios Key Statistics Comments 30+ delinquency rates continue to improve Improvement in used car prices has significantly reduced end of term and credit losses 4Q08 3Q09 4Q09 Average Loans 5,062 4,822 4,620 30-89 Delinquencies 0.96% 0.79% 0.74% 90+ Delinquencies 0.16% 0.11% 0.11% Nonperforming --% --% --% $ in millions 1208 0109 0209 0309 0409 0509 0609 0709 0809 0909 1009 1109 1209 Index 98 101.7 105.5 106.1 106.6 109.1 114.1 115.4 116.4 118.5 117.4 117.4 117.5 Manheim Used Vehicle Value Index

Credit Quality - Other Retail 4Q08 1Q09 2Q09 3Q09 4Q09 Average Loans 22247 22987 22753 22647 23037 Net Charge-offs Ratio 0.017 0.0175 0.018 0.0194 0.0191 Average Loans and Net Charge-offs Ratios Key Statistics Comments Average loans have grown 1.7% linked quarter basis and 3.6% over 4Q08 on strong growth in revolving credit and student lending portfolios Auto loan portfolio loss rate declined to 1.17% in 4Q09, down from 1.28% in 3Q09 and 1.47% in 4Q08 4Q08 3Q09 4Q09 Average Loans 22,247 22,647 23,037 30-89 Delinquencies 1.13% 1.13% 1.10% 90+ Delinquencies 0.36% 0.37% 0.40% Nonperforming 0.05% 0.10% 0.13% Auto Install Studend Revolving Mix 9476 5506 4580 3475 Installment $5,506 Auto Loans $9,476 Revolving Credit $3,475 Student Lending $4,580 $ in millions

Earnings Summary $ in millions Taxable-equivalent basis

4Q09 Results - Key Drivers vs. 4Q08 Net Revenue growth of 20.8% (16.9% excluding net securities losses) Net interest income growth of 9.2%; net interest margin of 3.83% vs. 3.81% Noninterest income growth of 37.8% (26.7% excluding net securities losses) Significant items: net change of $57 million Noninterest expense growth of 15.0% (10.8% excluding acquisitions) Provision for credit losses higher by $121 million Net charge-offs higher by $478 million Provision in excess of credit losses of $278 million; $635 million in 4Q08 vs. 3Q09 Net Revenue growth of 3.0% (4.8% excluding net securities losses) Net interest income growth of 9.4%; net interest margin of 3.83% vs. 3.67% Noninterest income declined 3.7% (+0.2% excluding net securities losses) Significant items: net change of ($121) million Noninterest expense growth of 8.5% (5.3% excluding acquisitions) Provision for credit losses lower by $68 million Net charge-offs higher by $69 million Provision in excess of credit losses of $278 million; $415 million in 3Q09

Significant Items $ in millions * The impact of the TARP discount being treated as a deemed dividend does not reduce earnings, but it is a component of the computation of earnings per diluted common share

Net Interest Income 4Q08 1Q09 2Q09 3Q09 4Q09 Net Interest Income 2161 2095 2104 2157 2360 Net Interest Margin 0.0381 0.0359 0.036 0.0367 0.0383 Net Interest Income Key Points $ in millions Taxable-equivalent basis vs. 4Q08 Average earning assets grew by $19.4 billion, or 8.6% (2.4% excluding acquisitions) Net interest margin higher by 2 bp (3.83% vs. 3.81%) driven by: Growth in low cost deposits vs. wholesale funding Lower funding spreads vs. 3Q09 Average earning assets grew by $11.3 billion, or 4.8% (0.9% excluding acquisitions) Net interest margin higher by 16 bp (3.83% vs. 3.67%) driven by: Growth in low cost deposits vs. wholesale funding Lower funding spreads Favorable change in loan spreads Year-Over-Year Growth 22.6% 14.5% 10.3% 9.7% 9.2%

Average Earning Assets 4Q08 1Q09 2Q09 3Q09 4Q09 Other 6.807 7.288 8.198 9.585 9.586 Loans 177.205 185.705 183.878 181.968 191.648 Securities 41.974 42.321 42.189 42.558 44.149 Average Earning Assets Key Points $ in billions Year-Over-Year Growth 12.8% 13.7% 10.5% 8.9% 8.6% Securities Loans LHFS and Other EA $226.0 $235.3 $234.3 $234.1 $245.4 vs. 4Q08 Average earning assets grew by $19.4 billion, or 8.6% (2.4% excluding acquisitions) Average total loans grew by $14.4 billion, or 8.2% (0.4% excluding acquisitions) Average investment securities grew by $2.2 billion, or 5.2% vs. 3Q09 Average earning assets grew by $11.3 billion, or 4.8% (0.9% excluding acquisitions) Average total loans grew by $9.7 billion, or 5.3% (0.4% excluding acquisitions) Average investment securities grew by $1.6 billion, or 3.7%

Average Loans 4Q08 1Q09 2Q09 3Q09 4Q09 Covered 5.205 11.344 10.701 10.288 18.504 Commercial 56.936 56.134 54.059 51.222 49.979 CRE 32.658 33.398 33.727 33.829 34.044 Res Mtg 23.43 23.915 23.964 24.405 25.621 Retail 58.976 60.914 61.427 62.224 63.5 Average Loans Key Points $ in billions Year-Over-Year Growth 17.0% 19.6% 12.8% 9.3% 8.2% $177.2 $185.7 $183.9 $181.9 $191.6 Retail Res Mtg Covered CRE Commercial vs. 4Q08 Average total loans grew by $14.4 billion, or 8.2% (0.4% excluding acquisitions) Average total commercial loans declined $7.0 billion, or 12.2%, primarily due to reduction in utilization of revolving lines of credit (30% 4Q09 vs. 38% 4Q08) Acquisition impact primarily in average covered assets which grew by $13.3 billion ($8.9 billion FBOP Banks and $4.4 billion Downey/PFF) Covered assets at December 31, 2009 equaled $22.5 billion ($13.2 billion FBOP Banks and 9.3 billion Downey/PFF) vs. 3Q09 Average total loans grew by $9.7 billion, or 5.3% (0.4% excluding acquisitions) Average total commercial loans declined by $1.2 billion, or 2.4%, primarily due to utilization rates (30% 4Q09 vs. 32% 3Q09) Average covered assets grew by $8.2 billion, primarily due to acquisition of FBOP Banks

Average Deposits 4Q08 1Q09 2Q09 3Q09 4Q09 Time 48.697 54.203 48.911 43.951 43.951 Money Market 27.009 27.927 27.25 33.387 33.387 Checking & Savings 37.124 42.378 49.671 52.042 52.042 Noninterest-bearing 31.639 36.02 37.388 36.982 36.982 Average Deposits Key Points $ in billions Year-Over-Year Growth 15.2% 22.7% 20.2% 24.6% 25.2% $144.5 $160.5 $163.2 $166.4 $180.9 Noninterest - -bearing Checking & Savings Time Money Market vs. 4Q08 Average total deposits grew by $36.4 billion, or 25.2% (15.3% excluding acquisitions) Average low cost deposits (NIB, interest checking, money market and savings), excluding acquisitions, grew $33.1 billion, or 35.1% Growth in low cost deposits led to reduction in wholesale time deposits, contributing to net interest margin expansion vs. 3Q09 Average total deposits grew by $14.5 billion, or 8.7% (2.7% excluding acquisitions) Average low cost deposits, excluding acquisitions, grew by $9.2 billion, or 7.5% Growth in low cost deposits led to reduction in wholesale time deposits, contributing to net interest margin expansion

Noninterest Income 4Q08 1Q09 2Q09 3Q09 4Q09 All Other 71 230 346 379 400 Mortgage 23 233 308 276 218 Service Charges 388 363 392 397 370 Trust & Inv Mgmt 300 294 304 293 277 Payment Services 681 668 705 748 751 Noninterest Income Key Points $ in million Year-Over-Year Growth (19.2%) (12.5%) 8.6% 48.2% 37.8% $1,463 $1,788 $2,055 $2,093 $2,016 Trust & Inv Mgmt Service Charges & Treasury Mgmt All Other Mortgage Payment Services Payment services = credit and debt card revenue, corporate payment products revenue and merchant processing services All Other Mortgage Service Charges Trust & Inv Mgmt Payment Services vs. 4Q08 Noninterest income grew by $553 million, or 37.8% (26.7% excl net securities losses), driven by: Payments revenue (10.3% growth) Mortgage banking revenue growth of $195 million 36.4% increase in production volume Favorable change in MSR hedge ($33 4Q09 vs. ($70) 4Q08) Commercial products revenue (41.2% growth) Higher other revenue Lower end of term lease residual valuation losses Payments contract termination gain Significant items, including net securities losses, were favorable by $57 million vs. 3Q09 Noninterest income was lower by $77 million, or 3.7% (+0.2% excl net securities losses), driven by: Mortgage banking revenue decline of $58 million 25.2% reduction in production volume Unfavorable change in MSR hedge ($33 4Q09 vs. $67 3Q09) Commercial products revenue (17.8% growth) Lower trust and investment management fees, deposit service charges and treasury management fees Higher other revenue Lower end of term lease residual valuation losses Payment contract termination gain Significant items, including net securities losses, unfavorable by $121 million

Noninterest Expense 4Q08 1Q09 2Q09 3Q09 4Q09 All Other 446 382 649 500 611 Tech & Communications 156 155 157 175 186 Prof Svcs, Marketing and PPS 240 182 211 272 256 Occupancy & Equip 202 211 208 203 214 Compensation & Benefits 894 941 904 903 961 Noninterest Expense Key Points $ in million Year-Over-Year Growth (0.6%) 5.2% 17.1% 13.2% 15.0% $1,938 $1,871 $2,129 $2,053 $2,228 Occupancy & Equip Prof Svcs, Marketing & PPS All Other Tech & Comm Compensation & Benefits Occupancy & Equip All Other Tech & Communications Prof Svcs, Marketing and PPS Compensation & Benefits vs. 4Q08 Noninterest expense was higher by $290 million, or 15.0% (10.8% excluding acquisitions), majority of variance driven by: Acquisitions ($86 million of increase) Tax credit amortization ($79 million of increase) FDIC expense Other loan expense vs. 3Q09 Noninterest expense was higher by $175 million, or 8.5% (5.3% excluding acquisitions), majority of variance driven by: Acquisitions ($66 million of increase) Tax credit amortization ($60 million of increase) Elimination of salary reductions related to cost containment initiative Legal and professional Other loan expense

Positioned for Growth Opportunities Core businesses continue to perform Solid capital and liquidity position Positioned to capitalize on economic recovery "Flight to Quality" Investing for growth - organic initiatives, M&A and joint ventures USB prepared to opportunistically acquire Core businesses are scalable and can be leveraged as the economy recovers Challenges Credit quality Regulatory / legislative oversight and actions

Appendix

Non-Regulatory Capital Ratios $ in millions

U.S. Bancorp 4Q09 Earnings Conference Call January 20, 2010