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): October 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
EX-99.1
EX-99.2

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

     On October 20, 2010, U.S. Bancorp (the “Company”) issued a press release reporting quarter ended September 30, 2010 results, and posted on its website its 3Q10 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 “furnished” under the Securities Exchange Act of 1934. The 3Q10 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated herein by reference. The information included in the 3Q10 Earnings Conference Call Presentation is considered to be “furnished” under the Securities Exchange Act of 1934. The press release and 3Q10 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 October 20, 2010, deemed “furnished” under the Securities Exchange Act of 1934.

     99.2 3Q10 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/ Craig E. Gifford
Craig E. Gifford
Executive Vice President and
Controller

     DATE: October 20, 2010

EX-99.1 2 c60786exv99w1.htm EX-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 THIRD QUARTER OF 2010

Achieves Record Total Net Revenue of $4.6 Billion

          MINNEAPOLIS, October 20, 2010 — U.S. Bancorp (NYSE: USB) today reported net income of $908 million for the third quarter of 2010, or $.45 per diluted common share. Earnings for the third quarter were driven by record total net revenue of $4.6 billion. Highlights for the third quarter of 2010 included:

Ø Strong new lending activity of $54.8 billion during the third quarter, including:     

§	$12.1 billion of new commercial and commercial real estate commitments
§	$18.8 billion of commercial and commercial real estate commitment renewals
§	$1.4 billion of lines related to new credit card accounts
§	$22.5 billion of mortgage and other retail originations

Ø Average total loan growth of 5.8 percent (a decline of .4 percent excluding acquisitions) over the third quarter of 2009

§	Average total loan growth of .7 percent over the second quarter of 2010
§	Average total commercial loan growth of 1.0 percent over the prior quarter, first linked quarter increase since the fourth quarter of 2008

Ø Significant growth in average deposits of 9.8 percent (2.7 percent excluding acquisitions) over the third quarter of 2009, including:

§	7.4 percent growth in average noninterest-bearing deposits
§	16.3 percent growth in average total savings deposits

Ø	Total net revenue growth of 7.9 percent over the third quarter of 2009
Ø	Net interest income growth of 14.8 percent over the third quarter of 2009, driven by a 7.6 percent increase in average earning assets and growth in lower cost core deposit funding
Ø	Net interest margin of 3.91 percent for the third quarter of 2010, compared with 3.67 percent in the third quarter of 2009 (and 3.90 percent in the second quarter of 2010)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 2

Ø Strong year-over-year growth in payments-related fee income, commercial products revenue and mortgage banking revenue, driven by:

§	Higher merchant processing services revenue (6.0 percent), corporate payment products revenue (5.5 percent) and credit and debit card revenue (2.6 percent)
§	A 25.5 percent increase in commercial products revenue (principally syndication revenue, standby letters of credit fees and commercial loan fees)
§	Record mortgage production of $16.6 billion, leading to a 12.3 percent increase in mortgage banking revenue

Ø	Positive operating leverage on a linked quarter basis
Ø	Decreased net charge-offs and nonperforming assets on a linked quarter basis. Provision for credit losses equal to net charge-offs.

§	Fourth consecutive quarterly decrease in the provision for credit losses
§	Net charge-offs declined 10.7 percent from the second quarter of 2010
§	Nonperforming assets (excluding covered assets) decreased 4.6 percent from the second quarter of 2010
§	Early and late stage loan delinquencies (excluding covered loans) as a percentage of ending loan balances declined in most loan categories on a linked quarter basis
§	Allowance to period-end loans (excluding covered loans) was 3.10 percent at September 30, 2010, compared with 3.18 percent at June 30, 2010 (and 2.88 percent at September 30, 2009)
§	Allowance to nonperforming assets (excluding covered assets) was 153 percent at September 30, 2010, compared with 146 percent at June 30, 2010 (and 134 percent at September 30, 2009)

Ø Capital generation continues to strengthen capital position; ratios at September 30, 2010 were:

§	Tier 1 common equity ratio of 7.6 percent
§	Tier 1 capital ratio of 10.3 percent
§	Total risk based capital ratio of 13.3 percent

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U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 3

EARNINGS SUMMARY															Table 1
							Percent		Percent
							Change		Change
	3Q		2Q		3Q		3Q10 vs		3Q10 vs		YTD		YTD		Percent
($ in millions, except per-share data)	2010		2010		2009		2Q10		3Q09		2010		2009		Change
Net income attributable to U.S. Bancorp	$	908	$	766	$	603		18.5		50.6	$	2,343	$	1,603		46.2
Diluted earnings per common share	$	.45	$	.45	$	.30		—		50.0	$	1.24	$	.66		87.9
Return on average assets (%)		1.26		1.09		.90						1.11		.81
Return on average common equity (%)		12.8		13.4		10.0						12.3		7.7
Net interest margin (%)		3.91		3.90		3.67						3.90		3.62
Efficiency ratio (%)		51.9		52.4		47.5						51.1		48.1
Tangible efficiency ratio (%) (a)		49.9		50.4		45.3						49.1		45.9
Dividends declared per common share	$	.05	$	.05	$	.05		—		—	$	.15	$	.15		—
Book value per common share (period-end)	$	14.19	$	13.69	$	12.38		3.7		14.6

(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.

     Net income attributable to U.S. Bancorp was $908 million for the third quarter of 2010, 50.6 percent higher than the $603 million for the third quarter of 2009 and 18.5 percent higher than the $766 million for the second quarter of 2010. Diluted earnings per common share of $.45 in the third quarter of 2010 were $.15 higher than the third quarter of 2009 and equal to the previous quarter. Return on average assets and return on average common equity were 1.26 percent and 12.8 percent, respectively, for the third quarter of 2010, compared with .90 percent and 10.0 percent, respectively, for the third quarter of 2009. Significant items in the third quarter of 2009 that impact the comparison of results included provision for credit losses in excess of net charge-offs of $415 million, net securities losses of $76 million and a $39 million gain related to the Company’s investment in Visa Inc. (NYSE: V). Diluted earnings per common share for the second quarter of 2010 included $.05 related to the issuance of perpetual preferred stock in exchange for certain income trust securities, net of related debt extinguishment costs. Additional significant items in the second quarter of 2010 included provision for credit losses in excess of net-charge-offs of $25 million, net securities losses of $21 million and a $28 million gain related to the Company’s investment in Visa Inc.

     U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “Our third quarter results, once again, reflected the Company’s financial strength, fundamental operating model and business line momentum, as record total net revenue and reduced credit costs drove third quarter net income of $908 million, or $.45 per diluted common share. Growth in total net revenue year-over-year can be

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U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 4

attributed to an increase in net interest income, the result of higher earning assets and an expanded net interest margin. Noninterest income grew, albeit at a slower pace, year-over-year, as increases in payments-related revenue and our other fee-based businesses were partly offset by expected headwinds from recent legislative actions and current economic conditions.

     “Although total average loans, excluding acquisitions, were down slightly year-over-year, the Company recorded an increase in average loans quarter-over-quarter. Importantly, average commercial loans were higher on a linked quarter basis, as the utilization rate on commercial commitments stabilized. This is the first linked quarter increase in average commercial loans since the fourth quarter of 2008.

     “Credit quality continued to show noticeable improvement this quarter, as net charge-offs and nonperforming assets declined. The provision for credit losses was equal to net charge-offs in the third quarter, as the need to build the allowance for credit losses diminished with the quarter’s improved credit trends and relative stabilization of economic conditions. As I indicated last quarter, we have reached the inflection point in credit quality. Credit costs peaked for our Company in the first quarter of 2010. Despite this on-going improvement in credit quality, we did not reduce the allowance for credit losses this quarter, as our consumer loans continued to grow and the economy, although showing signs of stability, continues to hold a degree of uncertainty with high unemployment and a challenging real estate market. Moreover, as we move through this cycle, we are mindful of the need to continue to protect our fortress balance sheet.

     “In regard to the mortgage industry and recent questions concerning the validity of some foreclosures, I would like to reiterate our Company’s primary goal, which is to keep borrowers in their homes whenever possible. We actively participate in a number of loan modification programs that help to establish affordable payment options for our customers. Unfortunately, in some instances foreclosure, although a last resort effort, is a necessary step. We routinely review our procedures and we have confirmed that we have strong processes and controls in place to ensure that our affidavits are accurate and that no one is wrongfully foreclosed upon. We are able to closely manage the foreclosure process internally, given the manageable size and quality of our portfolio. We will continue to review our processes going forward and comply with any information requests received from regulatory and governmental authorities. We do believe, however, that a blanket foreclosure moratorium should be avoided in the interest of the national economic recovery.

     “Our Company’s capital position remains strong, and growing, with a Tier 1 common equity ratio of 7.6 percent and a Tier 1 capital ratio of 10.3 percent at September 30th. Raising the dividend remains a top priority for our management team and board of directors. We continue, however, to wait for final regulatory

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U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 5

capital guidelines to be established. Our current capital position and our ability to generate new capital each quarter through earnings give us confidence that we can meet or exceed any capital requirements that may be forthcoming, and be one of the first banks to gain regulatory approval to raise our dividend.

     “On September 15th, our management team hosted an investor conference in New York City. The theme of the day was “positioned to win,” and the day’s presentations led the audience of investors and analysts through a discussion on how our Company has prudently managed the fundamental elements of the business, how we have continued to invest in and enhance our business model over the past few years, and how we are managing and positioning each businesses line for future growth. We demonstrated how, by not changing course or succumbing to the easy growth strategies of the recent pre-crisis years, we have been able to manage well through a very challenging and uncertain economic environment, while positioning the Company to gain market share, produce industry-leading revenue growth, and achieve superior financial performance. I would not exchange our position in the industry for any other. We are moving forward with a sense of optimism and enthusiasm, focused on growing our businesses, sustaining an engaged and performance-driven workforce that provides superior service to our customers and communities and, importantly, creating long-term value for our shareholders.”

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U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
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INCOME STATEMENT HIGHLIGHTS																			Table 2
								Percent			Percent
								Change			Change
(Taxable-equivalent basis, $ in millions,	3Q		2Q		3Q			3Q10 vs			3Q10 vs			YTD		YTD			Percent
except per-share data)	2010		2010		2009			2Q10			3Q09			2010		2009			Change
Net interest income	$	2,477	$	2,409	$	2,157			2.8			14.8		$	7,289	$	6,356			14.7
Noninterest income		2,110		2,110		2,093			—			.8			6,138		5,936			3.4
Total net revenue		4,587		4,519		4,250			1.5			7.9			13,427		12,292			9.2
Noninterest expense		2,385		2,377		2,053			.3			16.2			6,898		6,053			14.0
Income before provision and taxes		2,202		2,142		2,197			2.8			.2			6,529		6,239			4.6
Provision for credit losses		995		1,139		1,456			(12.6	)		(31.7	)		3,444		4,169			(17.4	)
Income before taxes		1,207		1,003		741			20.3			62.9			3,085		2,070			49.0
Taxable-equivalent adjustment		53		52		50			1.9			6.0			156		148			5.4
Applicable income taxes		260		199		86			30.7			nm			620		287			nm
Net income		894		752		605			18.9			47.8			2,309		1,635			41.2
Net (income) loss attributable to noncontrolling interests		14		14		(2	)		—			nm			34		(32	)		nm
Net income attributable to U.S. Bancorp	$	908	$	766	$	603			18.5			50.6		$	2,343	$	1,603			46.2
Net income applicable to U.S. Bancorp common shareholders	$	871	$	862	$	583			1.0			49.4		$	2,381	$	1,223			94.7
Diluted earnings per common share	$	.45	$	.45	$	.30			—			50.0		$	1.24	$	.66			87.9

     Net income attributable to U.S. Bancorp for the third quarter of 2010 was $305 million (50.6 percent) higher than the same period of 2009 and $142 million (18.5 percent) higher than the second quarter of 2010. The increase in net income year-over-year was principally the result of strong growth in total net revenue, driven by an increase in both net interest income and fee-based revenue, and a lower provision for credit losses. These positive variances were partially offset by an increase in total noninterest expense. Compared with the prior quarter, favorable variances in total net revenue and the provision for credit losses were partly offset by a small increase in total noninterest expense.

     Total net revenue on a taxable-equivalent basis for the third quarter of 2010 was $4,587 million; $337 million (7.9 percent) higher than the third quarter of 2009, reflecting a 14.8 percent increase in net interest income and a .8 percent increase in noninterest income. The increase in net interest income year-over-year was largely the result of an increase in average earning assets, primarily related to acquisitions, and continued growth in lower cost core deposit funding. Noninterest income increased year-over-year as a result of higher payments-related revenue, commercial products revenue and mortgage banking revenue. Total net revenue on a taxable-equivalent basis was $68 million (1.5 percent) higher on a linked quarter

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U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 7

basis, due to a 2.8 percent increase in net interest income, driven by higher average loan and loans held-for-sale balances.

     Total noninterest expense in the third quarter of 2010 was $2,385 million; $332 million (16.2 percent) higher than the third quarter of 2009, and $8 million (.3 percent) higher than the second quarter of 2010. The increase in total noninterest expense year-over-year was primarily due to the impact of acquisitions and compensation and employee benefits expense. Total noninterest expense was relatively flat compared with the second quarter of 2010 with favorable variances in most expense categories being partially offset by higher compensation, marketing and business development and professional services expense.

     The Company’s provision for credit losses declined from a year ago and on a linked quarter basis. The provision for credit losses for the third quarter of 2010 was $995 million, $144 million lower than the second quarter of 2010 and $461 million lower than the third quarter of 2009. The provision for credit losses equaled net charge-offs in the third quarter of 2010, but exceeded net charge-offs by $25 million in the second quarter of 2010, and by $415 million in the third quarter of 2009. Net charge-offs in the third quarter of 2010 were $995 million, lower than the $1,114 million in the second quarter of 2010, and the $1,041 million in the third quarter of 2009. Given current economic conditions, the Company expects the level of net charge-offs to continue to trend lower in the fourth quarter of 2010.

     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. Excluding covered assets, nonperforming assets were $3,563 million at September 30, 2010, $3,734 million at June 30, 2010, and $3,720 million at September 30, 2009. The decline on both a linked quarter and year-over-year basis was led by reductions in the construction and land development nonperforming portfolios, as the Company continued to resolve and reduce exposure to these problem assets. There was also improvement in the other commercial portfolios as the economy began to stabilize. However, there is continued stress in the residential mortgage and credit card portfolios, as well as an increase in foreclosed properties, due to the impact of the overall duration of the economic slowdown. Covered nonperforming assets were $1,851 million at September 30, 2010, $2,151 million at June 30, 2010, and $672 million at September 30, 2009. The majority of the nonperforming covered assets were considered credit-impaired at acquisition and were recorded at their estimated fair value at the date of acquisition. The year-over-year increase in covered nonperforming assets was due to the fourth quarter of 2009 acquisition of the banking operations of First Bank of Oak Park Corporation (“FBOP”). The ratio of the allowance for

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U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 8

credit losses to period-end loans, excluding covered loans, was 3.10 percent at September 30, 2010, compared with 3.18 percent at June 30, 2010, and 2.88 percent at September 30, 2009. The ratio of the allowance for credit losses to period-end loans, including covered loans, was 2.85 percent at September 30, 2010, compared with 2.89 percent at June 30, 2010, and 2.73 percent at September 30, 2009. The Company expects total nonperforming assets, excluding covered assets, to continue to trend lower in the fourth quarter.

NET INTEREST INCOME																						Table 3
										Change			Change
	3Q			2Q			3Q			3Q10 vs			3Q10 vs			YTD			YTD
(Taxable-equivalent basis; $ in millions)	2010			2010			2009			2Q10			3Q09			2010			2009			Change
Components of net interest income
Income on earning assets	$	3,132		$	3,049		$	2,909		$	83		$	223		$	9,227		$	8,722		$	505
Expense on interest-bearing liabilities		655			640			752			15			(97	)		1,938			2,366			(428	)
Net interest income	$	2,477		$	2,409		$	2,157		$	68		$	320		$	7,289		$	6,356		$	933
Average yields and rates paid
Earning assets yield		4.95	%		4.94	%		4.94	%		.01	%		.01	%		4.94	%		4.97	%		(.03	)%
Rate paid on interest-bearing liabilities		1.25			1.25			1.54			—			(.29	)		1.25			1.63			(.38	)
Gross interest margin		3.70	%		3.69	%		3.40	%		.01	%		.30	%		3.69	%		3.34	%		.35	%
Net interest margin		3.91	%		3.90	%		3.67	%		.01	%		.24	%		3.90	%		3.62	%		.28	%
Average balances
Investment securities (a)	$	47,870		$	47,140		$	42,558		$	730		$	5,312		$	47,080		$	42,357		$	4,723
Loans		192,541			191,161			181,968			1,380			10,573			192,192			183,837			8,355
Earning assets		251,916			247,446			234,111			4,470			17,805			249,408			234,559			14,849
Interest-bearing liabilities		208,653			205,929			194,202			2,724			14,451			208,037			193,649			14,388
Net free funds (b)		43,263			41,517			39,909			1,746			3,354			41,371			40,910			461

(a)	Excludes unrealized gain (loss)
(b)	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.

Net Interest Income

     Net interest income on a taxable-equivalent basis in the third quarter of 2010 was $2,477 million, compared with $2,157 million in the third quarter of 2009, an increase of $320 million (14.8 percent). The increase was the result of growth in average earning assets and an expanded net interest margin. Average earning assets were $17.8 billion (7.6 percent) higher than the third quarter of 2009, driven by increases of $10.6 billion (5.8 percent) in average loans and $5.3 billion (12.5 percent) in average investment securities, while the net interest margin was higher principally due to the impact of favorable funding rates and improved credit spreads. Net interest income increased $68 million (2.8 percent) on a linked quarter basis,

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U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
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mainly as a result of an increase in average earning assets and day basis. During the third quarter of 2010, the net interest margin was 3.91 percent, compared with 3.67 percent in the third quarter of 2009 and 3.90 percent in the second quarter of 2010.

AVERAGE LOANS																	Table 4
							Percent			Percent
							Change			Change
	3Q		2Q		3Q		3Q10 vs			3Q10 vs			YTD		YTD		Percent
($ in millions)	2010		2010		2009		2Q10			3Q09			2010		2009		Change
Commercial	$	40,726	$	40,095	$	44,655		1.6			(8.8	)	$	40,550	$	47,109		(13.9	)
Lease financing		6,058		6,245		6,567		(3.0	)		(7.8	)		6,248		6,678		(6.4	)
Total commercial		46,784		46,340		51,222		1.0			(8.7	)		46,798		53,787		(13.0	)
Commercial mortgages		26,008		25,606		24,296		1.6			7.0			25,688		23,911		7.4
Construction and development		8,182		8,558		9,533		(4.4	)		(14.2	)		8,477		9,742		(13.0	)
Total commercial real estate		34,190		34,164		33,829		.1			1.1			34,165		33,653		1.5
Residential mortgages		27,890		26,821		24,405		4.0			14.3			27,045		24,096		12.2
Credit card		16,510		16,329		15,387		1.1			7.3			16,403		14,444		13.6
Retail leasing		4,289		4,364		4,822		(1.7	)		(11.1	)		4,387		4,989		(12.1	)
Home equity and second mortgages		19,289		19,332		19,368		(.2	)		(.4	)		19,340		19,298		.2
Other retail		24,281		23,357		22,647		4.0			7.2			23,664		22,795		3.8
Total retail		64,369		63,382		62,224		1.6			3.4			63,794		61,526		3.7
Total loans, excluding covered loans		173,233		170,707		171,680		1.5			.9			171,802		173,062		(.7	)
Covered loans		19,308		20,454		10,288		(5.6	)		87.7			20,390		10,775		89.2
Total loans	$	192,541	$	191,161	$	181,968		.7			5.8		$	192,192	$	183,837		4.5

     Total average loans were $10.6 billion (5.8 percent) higher in the third quarter of 2010 than the third quarter of 2009, driven by the FBOP acquisition and growth in residential mortgages (14.3 percent) and retail loans (3.4 percent). These increases were partially offset by an 8.7 percent decline in total average commercial loans, principally due to lower utilization of existing commitments and reduced demand for new loans. Year-over-year retail loan growth was driven by increases in credit cards and installment loans. Included in the growth of average credit card loans outstanding were portfolio purchases of $1.3 billion in the third quarter of 2009 and $.5 billion in the second quarter of 2010. Total average loans were $1.4 billion (.7 percent) higher in the third quarter of 2010 than the second quarter of 2010, as increases in the majority of loan categories, principally residential mortgages (4.0 percent) and other retail loans (4.0 percent), were partially offset by lower covered loans (5.6 percent). Relatively stable commitment utilization by corporate

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U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 10

customers and a higher demand for new loans from credit-worthy borrowers resulted in a modest increase in total commercial and commercial real estate balances.

     Average investment securities in the third quarter of 2010 were $5.3 billion (12.5 percent) higher year-over-year and $730 million (1.5 percent) higher than the prior quarter. The increases over the prior year and linked quarter were primarily due to purchases of U.S. government agency-backed securities.

AVERAGE DEPOSITS																	Table 5
							Percent			Percent
							Change			Change
	3Q		2Q		3Q		3Q10 vs			3Q10 vs			YTD		YTD		Percent
($ in millions)	2010		2010		2009		2Q10			3Q09			2010		2009		Change
Noninterest-bearing deposits	$	39,732	$	39,917	$	36,982		(.5	)		7.4		$	39,223	$	36,800		6.6
Interest-bearing savings deposits
Interest checking		39,308		39,503		38,218		(.5	)		2.9			39,599		35,906		10.3
Money market savings		38,005		40,256		33,387		(5.6	)		13.8			39,710		29,541		34.4
Savings accounts		22,008		20,035		13,824		9.8			59.2			20,038		12,160		64.8
Total of savings deposits		99,321		99,794		85,429		(.5	)		16.3			99,347		77,607		28.0
Time certificates of deposit less than $100,000		16,024		16,980		16,985		(5.6	)		(5.7	)		17,105		17,691		(3.3	)
Time deposits greater than $100,000		27,583		26,627		26,966		3.6			2.3			27,162		31,293		(13.2	)
Total interest-bearing deposits		142,928		143,401		129,380		(.3	)		10.5			143,614		126,591		13.4
Total deposits	$	182,660	$	183,318	$	166,362		(.4	)		9.8		$	182,837	$	163,391		11.9

     Average total deposits for the third quarter of 2010 were $16.3 billion (9.8 percent) higher than the third quarter of 2009. Excluding deposits from acquisitions, average total deposits increased $4.5 billion (2.7 percent) over the third quarter of 2009. Noninterest-bearing deposits increased $2.8 billion (7.4 percent) year-over-year, due to growth in the Consumer and Wholesale Banking business line balances and the impact of acquisitions. Average total savings deposits were $13.9 billion (16.3 percent) higher year-over-year, the result of growth in Consumer Banking, Wholesale Banking, institutional and corporate trust balances, and the impact of acquisitions. Average time certificates of deposit less than $100,000 were $961 million (5.7 percent) lower year-over-year, as a decrease in Consumer Banking balances was partially offset by acquisition-related growth. Average time deposits greater than $100,000 were higher by $617 million (2.3 percent), reflecting the impact of acquisitions, partially offset by a decrease in required overall wholesale funding.

     Average total deposits decreased $658 million (.4 percent) from the second quarter of 2010, primarily due to declines in average time deposits less than $100,000 of $956 million (5.6 percent) and average total

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October 20, 2010
Page 11

savings deposits of $473 million (.5 percent), partially offset by an increase in average time deposits over $100,000 of $956 million (3.6 percent). Total average savings deposits decreased on a linked quarter basis, principally due to a decline in corporate trust and institutional trust and broker-dealer balances, partially offset by higher Consumer Banking balances. The reduction in average time certificates of deposit less than $100,000 reflected maturities and fewer renewals given the low interest rate environment, while the increase in average time certificates of deposit greater than $100,000 reflected wholesale funding decisions.

NONINTEREST INCOME																						Table 6
										Percent			Percent
										Change			Change
	3Q			2Q			3Q			3Q10 vs			3Q10 vs			YTD			YTD			Percent
($ in millions)	2010			2010			2009			2Q10			3Q09			2010			2009			Change
Credit and debit card revenue	$	274		$	266		$	267			3.0			2.6		$	798		$	782			2.0
Corporate payment products revenue		191			178			181			7.3			5.5			537			503			6.8
Merchant processing services		318			320			300			(.6	)		6.0			930			836			11.2
ATM processing services		105			108			103			(2.8	)		1.9			318			309			2.9
Trust and investment management fees		267			267			293			—			(8.9	)		798			891			(10.4	)
Deposit service charges		160			199			256			(19.6	)		(37.5	)		566			732			(22.7	)
Treasury management fees		139			145			141			(4.1	)		(1.4	)		421			420			.2
Commercial products revenue		197			205			157			(3.9	)		25.5			563			430			30.9
Mortgage banking revenue		310			243			276			27.6			12.3			753			817			(7.8	)
Investment products fees and commissions		27			30			27			(10.0	)		—			82			82			—
Securities gains (losses), net		(9	)		(21	)		(76	)		57.1			88.2			(64	)		(293	)		78.2
Other		131			170			168			(22.9	)		(22.0	)		436			427			2.1
Total noninterest income	$	2,110		$	2,110		$	2,093			—			.8		$	6,138		$	5,936			3.4

Noninterest Income

     Third quarter noninterest income was $2,110 million; $17 million (.8 percent) higher than the third quarter of 2009 and equal to the second quarter of 2010. Year-over-year, noninterest income benefited from payments-related revenues, which were $35 million (4.7 percent) higher, largely due to increased transaction volumes, and a $40 million (25.5 percent) increase in commercial products revenue, attributable to higher standby letters of credit fees, commercial loan fees and syndication revenue. Additionally, mortgage banking revenue was higher than the same quarter of 2009 by $34 million (12.3 percent), driven by higher production and servicing revenue, partially offset by an unfavorable net change in the valuation of mortgage servicing rights (“MSRs”) and related economic hedging activities. Total noninterest income was also favorably impacted by a year-over-year change in net securities losses, which were $67 million (88.2

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October 20, 2010
Page 12

percent) lower than the prior year, primarily due to lower impairments. Trust and investment management fees declined $26 million (8.9 percent) year-over-year, as low interest rates negatively impacted money market investment fees and lower money market fund balances led to a decline in account-level fees. Deposit service charges decreased $96 million (37.5 percent) as a result of revised overdraft fee policies and lower overdraft incidences. Other income was $37 million (22.0 percent) lower than the prior year primarily due to the third quarter of 2009 gain related to the Company’s investment in Visa Inc. and lower customer derivative revenue, partially offset by improved retail lease residual valuation income and higher income from equity investments.

     Noninterest income was $2,110 million in both the third quarter and second quarter of 2010. Payments-related revenue increased $19 million (2.5 percent), primarily driven by seasonally higher transaction volumes in corporate payment products. Mortgage banking revenue increased $67 million (27.6 percent) due to strong mortgage production, partially offset by an unfavorable net change in the valuation of MSRs and related economic hedging activities. The $12 million (57.1 percent) favorable change in net securities losses on a linked quarter basis was primarily due to higher securities gains in the current quarter. Offsetting these favorable variances on a linked quarter basis were declines in deposit service charges of $39 million (19.6 percent), reflecting the impact of revised overdraft fee policies, treasury management fees of $6 million (4.1 percent), owing to seasonally lower government-related processing, and commercial products revenue of $8 million (3.9 percent), mainly due to lower syndication fees related to tax-advantaged investment transactions. In addition, other income was $39 million (22.9 percent) lower primarily due to a $28 million gain in the second quarter of 2010 related to the Company’s investment in Visa Inc. and lower customer derivative revenue, partially offset by improved retail lease residual valuation income.

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October 20, 2010
Page 13

NONINTEREST EXPENSE																	Table 7
							Percent			Percent
							Change			Change
	3Q		2Q		3Q		3Q10 vs			3Q10 vs			YTD		YTD		Percent
($ in millions)	2010		2010		2009		2Q10			3Q09			2010		2009		Change
Compensation	$	973	$	946	$	769		2.9			26.5		$	2,780	$	2,319		19.9
Employee benefits		171		172		134		(.6	)		27.6			523		429		21.9
Net occupancy and equipment		229		226		203		1.3			12.8			682		622		9.6
Professional services		78		73		63		6.8			23.8			209		174		20.1
Marketing and business development		108		86		137		25.6			(21.2	)		254		273		(7.0	)
Technology and communications		186		186		175		—			6.3			557		487		14.4
Postage, printing and supplies		74		75		72		(1.3	)		2.8			223		218		2.3
Other intangibles		90		91		94		(1.1	)		(4.3	)		278		280		(.7	)
Other		476		522		406		(8.8	)		17.2			1,392		1,251		11.3
Total noninterest expense	$	2,385	$	2,377	$	2,053		.3			16.2		$	6,898	$	6,053		14.0

Noninterest Expense

     Noninterest expense in the third quarter of 2010 totaled $2,385 million, an increase of $332 million (16.2 percent) over the third quarter of 2009, and an $8 million increase (.3 percent) over the second quarter of 2010. The increase in noninterest expense over a year ago was principally due to the impact of acquisitions and increased compensation expense. Compensation and employee benefits expense increased by $204 million (26.5 percent) and $37 million (27.6 percent), respectively, year-over-year, primarily because of acquisitions, higher incentives related to the Company’s improved financial results, merit increases and the five percent cost reduction program that was in effect during the third quarter of 2009. Net occupancy and equipment expense increased $26 million (12.8 percent), principally due to acquisitions and other business initiatives. Professional services expense was $15 million (23.8 percent) higher year-over-year, due to acquisitions, payments-related projects and legal costs. Technology and communications expense increased $11 million (6.3 percent), as a result of business initiatives and volume increases across various business lines. Other expense was higher by $70 million (17.2 percent) largely due to increases in costs related to investments in affordable housing and other real estate owned. Marketing and business development expense decreased $29 million (21.2 percent) from the prior year mainly due to payments-related initiatives during 2009, partially offset by a higher contribution to the Company’s charitable foundation in the third quarter of 2010.

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October 20, 2010
Page 14

     Noninterest expense was relatively flat on a linked quarter basis, increasing $8 million (.3 percent). Compensation expense increased $27 million (2.9 percent), principally due to higher incentives and commissions. Professional services expense was $5 million (6.8 percent) higher on a linked quarter basis, primarily due to payments-related initiatives. Marketing and business development expense was higher by $22 million (25.6 percent), compared with the second quarter of 2010, reflecting an increase in the Company’s contribution to its charitable foundation, partially offset by the timing of credit card product initiatives and other marketing campaigns. Offsetting these unfavorable variances, was a $46 million (8.8 percent) decrease in other expense on a linked quarter basis, primarily due to a reduction in conversion costs related to the FBOP acquisition and the impact of debt extinguishment costs associated with the income trust securities exchange that was completed and recorded in the prior quarter.

Provision for Income Taxes

     The provision for income taxes for the third quarter of 2010 resulted in a tax rate on a taxable-equivalent basis of 25.9 percent (effective tax rate of 22.5 percent), compared with 18.4 percent (effective tax rate of 12.4 percent) in the third quarter of 2009 and 25.0 percent (effective tax rate of 20.9 percent) in the second quarter of 2010. The increases in effective tax rate principally reflected the marginal impact of higher pretax earnings.

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U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 15

ALLOWANCE FOR CREDIT LOSSES									Table 8
	3Q		2Q		1Q		4Q		3Q
($ in millions)	2010		2010		2010		2009		2009
Balance, beginning of period	$	5,536	$	5,439	$	5,264	$	4,986	$	4,571
Net charge-offs
Commercial		153		223		243		250		200
Lease financing		18		22		34		33		44
Total commercial		171		245		277		283		244
Commercial mortgages		113		71		46		30		30
Construction and development		94		156		146		144		159
Total commercial real estate		207		227		192		174		189
Residential mortgages		132		138		145		153		129
Credit card		296		317		312		285		271
Retail leasing		2		4		5		5		8
Home equity and second mortgages		79		79		90		96		89
Other retail		101		99		111		111		111
Total retail		478		499		518		497		479
Total net charge-offs, excluding covered loans		988		1,109		1,132		1,107		1,041
Covered loans		7		5		3		3		—
Total net charge-offs		995		1,114		1,135		1,110		1,041
Provision for credit losses		995		1,139		1,310		1,388		1,456
Net change for credit losses to be reimbursed by the FDIC		4		72		—		—		—
Balance, end of period	$	5,540	$	5,536	$	5,439	$	5,264	$	4,986
Components
Allowance for loan losses, excluding losses to be reimbursed by the FDIC	$	5,245	$	5,248	$	5,235	$	5,079	$	4,825
Allowance for credit losses to be reimbursed by the FDIC		76		72		—		—		—
Liability for unfunded credit commitments		219		216		204		185		161
Total allowance for credit losses	$	5,540	$	5,536	$	5,439	$	5,264	$	4,986
Gross charge-offs	$	1,069	$	1,186	$	1,206	$	1,174	$	1,105
Gross recoveries	$	74	$	72	$	71	$	64	$	64
Allowance for credit losses as a percentage of
Period-end loans, excluding covered loans		3.10		3.18		3.20		3.04		2.88
Nonperforming loans, excluding covered loans		181		168		156		153		150
Nonperforming assets, excluding covered assets		153		146		136		135		134
Period-end loans		2.85		2.89		2.85		2.70		2.73
Nonperforming loans		133		120		109		110		136
Nonperforming assets		102		94		85		89		114

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October 20, 2010
Page 16

Credit Quality

     Net charge-offs and nonperforming assets declined on a linked quarter basis as economic conditions moderated. The allowance for credit losses was $5,540 million at September 30, 2010, compared with $5,536 million at June 30, 2010, and $4,986 million at September 30, 2009. Total net charge-offs in the third quarter of 2010 were $995 million, compared with $1,114 million in the second quarter of 2010, and $1,041 million in the third quarter of 2009. The decrease in total net charge-offs was principally due to improvement in the commercial and commercial real estate portfolios. The Company recorded $995 million of provision for credit losses, equal to net charge-offs during the third quarter of 2010. The allowance for credit losses reimbursable by the FDIC was higher by $4 million, which increased the total allowance for credit losses by the same amount.

     Commercial and commercial real estate loan net charge-offs decreased to $378 million in the third quarter of 2010 (1.85 percent of average loans outstanding) compared with $472 million (2.35 percent of average loans outstanding) in the second quarter of 2010 and $433 million (2.02 percent of average loans outstanding) in the third quarter of 2009. The decrease primarily reflected the resolution of certain major construction projects and the impact of more stable economic conditions on the Company’s commercial loan portfolios.

     Residential mortgage loan net charge-offs decreased to $132 million (1.88 percent of average loans outstanding) in the third quarter of 2010 from $138 million (2.06 percent of average loans outstanding) in the second quarter of 2010, reflecting the positive impact of restructuring programs. Residential mortgage loan net charge-offs in the current quarter remained higher, however, than the $129 million (2.10 percent of average loans outstanding) recorded in the third quarter of 2009. Total retail loan net charge-offs were $478 million (2.95 percent of average loans outstanding) in the third quarter of 2010, lower than the $499 million (3.16 percent of average loans outstanding) in the second quarter of 2010 and the $479 million (3.05 percent of average loans outstanding) in the third quarter of 2009. The level of retail loan net-charge-offs was impacted by credit card portfolio purchases recorded at fair value in the beginning in the third quarter of 2009.

     The ratio of the allowance for credit losses to period-end loans was 2.85 percent (3.10 percent excluding covered loans) at September 30, 2010, compared with 2.89 percent (3.18 percent excluding covered loans) at June 30, 2010, and 2.73 percent (2.88 percent excluding covered loans) at September 30, 2009. The ratio of the allowance for credit losses to nonperforming loans was 133 percent (181 percent excluding covered

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October 20, 2010
Page 17

loans) at September 30, 2010, compared with 120 percent (168 percent excluding covered loans) at June 30, 2010, and 136 percent (150 percent excluding covered loans) at September 30, 2009.

CREDIT RATIOS									Table 9
	3Q		2Q		1Q		4Q		3Q
(Percent)	2010		2010		2010		2009		2009
Net charge-offs ratios (a)
Commercial		1.49		2.23		2.41		2.28		1.78
Lease financing		1.18		1.41		2.14		2.02		2.66
Total commercial		1.45		2.12		2.38		2.25		1.89
Commercial mortgages		1.72		1.11		.73		.48		.49
Construction and development		4.56		7.31		6.80		6.24		6.62
Total commercial real estate		2.40		2.67		2.28		2.03		2.22
Residential mortgages		1.88		2.06		2.23		2.37		2.10
Credit card (b)		7.11		7.79		7.73		6.89		6.99
Retail leasing		.19		.37		.45		.43		.66
Home equity and second mortgages		1.62		1.64		1.88		1.96		1.82
Other retail		1.65		1.70		1.93		1.91		1.94
Total retail		2.95		3.16		3.30		3.11		3.05
Total net charge-offs, excluding covered loans		2.26		2.61		2.68		2.54		2.41
Covered loans		.14		.10		.06		.06		—
Total net charge-offs		2.05		2.34		2.39		2.30		2.27
Delinquent loan ratios - 90 days or more past due excluding nonperforming loans (c)
Commercial		.19		.21		.18		.22		.17
Commercial real estate		.05		.09		.01		.02		.12
Residential mortgages		1.75		1.85		2.26		2.80		2.32
Retail		.85		.95		1.00		1.07		1.00
Total loans, excluding covered loans		.66		.72		.78		.88		.78
Covered loans		4.96		4.91		3.90		3.59		8.18
Total loans		1.08		1.16		1.12		1.19		1.16
Delinquent loan ratios - 90 days or more past due including nonperforming loans (c)
Commercial		1.67		1.89		2.06		2.25		2.19
Commercial real estate		4.20		4.84		5.37		5.22		5.22
Residential mortgages		3.90		4.08		4.33		4.59		3.86
Retail		1.26		1.32		1.37		1.39		1.28
Total loans, excluding covered loans		2.37		2.61		2.82		2.87		2.69
Covered loans		11.12		11.72		11.19		9.76		11.97
Total loans		3.23		3.56		3.74		3.64		3.18

(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 7.84 percent for the third quarter of 2010, 8.53 percent for the second quarter of 2010, 8.42 percent for the first quarter of 2010, 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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October 20, 2010
Page 18

ASSET QUALITY									Table 10
	Sep 30		Jun 30		Mar 31		Dec 31		Sep 30
($ in millions)	2010		2010		2010		2009		2009
Nonperforming loans
Commercial	$	594	$	669	$	758	$	866	$	908
Lease financing		111		115		113		125		119
Total commercial		705		784		871		991		1,027
Commercial mortgages		624		601		596		581		502
Construction and development		799		1,013		1,236		1,192		1,230
Total commercial real estate		1,423		1,614		1,832		1,773		1,732
Residential mortgages		614		607		550		467		383
Retail		262		237		229		204		174
Total nonperforming loans, excluding covered loans		3,004		3,242		3,482		3,435		3,316
Covered loans		1,172		1,360		1,524		1,350		362
Total nonperforming loans		4,176		4,602		5,006		4,785		3,678
Other real estate (a)		537		469		482		437		366
Covered other real estate (a)		679		791		861		653		310
Other nonperforming assets		22		23		31		32		38
Total nonperforming assets (b)	$	5,414	$	5,885	$	6,380	$	5,907	$	4,392
Total nonperforming assets, excluding covered assets	$	3,563	$	3,734	$	3,995	$	3,904	$	3,720
Accruing loans 90 days or more past due, excluding covered loans	$	1,165	$	1,239	$	1,321	$	1,525	$	1,344
Accruing loans 90 days or more past due	$	2,110	$	2,221	$	2,138	$	2,309	$	2,125
Restructured loans that continue to accrue interest (c)	$	2,180	$	2,112	$	2,008	$	1,794	$	1,800
Nonperforming assets to loans plus ORE, excluding covered assets (%)		2.02		2.17		2.34		2.25		2.14
Nonperforming assets to loans plus ORE (%)		2.76		3.05		3.31		3.02		2.39

(a)	Includes equity investments whose only asset is other real estate owned
(b)	Does not include accruing loans 90 days or more past due or restructured loans that continue to accrue interest
(c)	Excludes temporary concessionary modifications under hardship programs

     Nonperforming assets at September 30, 2010, totaled $5,414 million, compared with $5,885 million at June 30, 2010, and $4,392 million at September 30, 2009. Total nonperforming assets at September 30, 2010, included $1,851 million of assets covered under loss sharing agreements with the FDIC that substantially reduce the risk of credit losses to the Company. The ratio of nonperforming assets to loans and other real estate was 2.76 percent (2.02 percent excluding covered assets) at September 30, 2010, compared with 3.05 percent (2.17 percent excluding covered assets) at June 30, 2010, and 2.39 percent (2.14 percent excluding covered assets) at September 30, 2009. The decrease in nonperforming assets, excluding covered assets, compared with a year ago was driven primarily by the construction and land development portfolios,

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October 20, 2010
Page 19

as well as improvement in other commercial portfolios. Given current economic conditions, the Company expects nonperforming assets, excluding covered assets, to trend lower in the fourth quarter.

     Accruing loans 90 days or more past due were $2,110 million ($1,165 million excluding covered loans) at September 30, 2010, compared with $2,221 million ($1,239 million excluding covered loans) at June 30, 2010, and $2,125 million ($1,344 million excluding covered loans) at September 30, 2009. The increase in restructured loans that continue to accrue interest, compared with the third quarter of 2009 and the second quarter of 2010, reflected the impact of loan modifications for certain residential mortgage and consumer credit card customers in light of current economic conditions. The Company continues to work with customers to modify loans for borrowers who are having financial difficulties, including those acquired through FDIC-assisted bank acquisitions, but expects increases in restructured loans to continue to moderate.

CAPITAL POSITION													Table 11
	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
($ in millions)	2010			2010			2010			2009			2009
Total U.S. Bancorp shareholders’ equity	$	29,151		$	28,169		$	26,709		$	25,963		$	25,171
Tier 1 capital		24,908			24,021			23,278			22,610			21,990
Total risk-based capital		32,265			31,890			30,858			30,458			30,126
Tier 1 capital ratio		10.3	%		10.1	%		9.9	%		9.6	%		9.5	%
Total risk-based capital ratio		13.3			13.4			13.2			12.9			13.0
Leverage ratio		9.0			8.8			8.6			8.5			8.6
Tier 1 common equity ratio		7.6			7.4			7.1			6.8			6.8
Tangible common equity ratio		6.2			6.0			5.6			5.3			5.4
Tangible common equity as a percent of risk-weighted assets		7.2			6.9			6.5			6.1			6.0

     Total U.S. Bancorp shareholders’ equity was $29.2 billion at September 30, 2010, compared with $28.2 billion at June 30, 2010, and $25.2 billion at September 30, 2009. The increase over the prior year included the issuance, net of related discount, of $430 million of perpetual preferred stock in exchange for certain income trust securities in the second quarter of 2010. The Tier 1 capital ratio was 10.3 percent at September 30, 2010, compared with 10.1 percent at June 30, 2010, and 9.5 percent at September 30, 2009. The Tier 1 common equity ratio was 7.6 percent at September 30, 2010, compared with 7.4 percent at June 30, 2010, and 6.8 percent at September 30, 2009. The tangible common equity ratio was 6.2 percent at September 30, 2010, compared with 6.0 percent at June 30, 2010, and 5.4 percent at September 30, 2009. All regulatory ratios continue to be in excess of “well-capitalized” requirements.

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October 20, 2010
Page 20

COMMON SHARES										Table 12
	3Q		2Q		1Q			4Q		3Q
(Millions)	2010		2010		2010			2009		2009
Beginning shares outstanding		1,917		1,916		1,913			1,912		1,912
Shares issued for stock option and stock purchase plans, acquisitions and other corporate purposes		1		1		4			1		—
Shares repurchased for stock option plans		—		—		(1	)		—		—
Ending shares outstanding		1,918		1,917		1,916			1,913		1,912

LINE OF BUSINESS FINANCIAL PERFORMANCE (a)																				Table 13
	Net Income Attributable												Net Income Attributable
	to U.S. Bancorp						Percent Change						to U.S. Bancorp							3Q 2010
($ in millions)	3Q		2Q		3Q		3Q10 vs			3Q10 vs			YTD		YTD		Percent			Earnings
Business Line	2010		2010		2009		2Q10			3Q09			2010		2009		Change			Composition
Wholesale Banking	$	137	$	94	$	29		45.7			nm		$	238	$	87		nm			15	%
Consumer Banking		243		162		206		50.0			18.0			586		638		(8.2	)		27
Wealth Management & Securities Services		53		60		84		(11.7	)		(36.9	)		165		268		(38.4	)		6
Payment Services		215		181		73		18.8			nm			508		217		nm			24
Treasury and Corporate Support		260		269		211		(3.3	)		23.2			846		393		nm			28
Consolidated Company	$	908	$	766	$	603		18.5			50.6		$	2,343	$	1,603		46.2			100	%

(a) preliminary data

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,

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U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 21

methods of evaluating performance or product lines change or business segments are realigned to better respond to the Company’s diverse customer base. During 2010, certain organization and methodology changes were made and, accordingly, prior period results were restated and presented on a comparable basis. Starting with the current quarter, lines of business results include the impact of transferring the operating activities of the FBOP acquisition to the appropriate operating segments. Covered commercial and commercial real estate credit-impaired loans and related other real estate remained in Treasury and Corporate Support.

     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 contributed $137 million of the Company’s net income in the third quarter of 2010, compared with $29 million in the third quarter of 2009 and $94 million in the second quarter of 2010. Wholesale Banking’s net income increased $108 million over the same quarter of 2009, due to higher total net revenue and a lower provision for credit losses, partially offset by an unfavorable variance in total noninterest expense. Net interest income increased $38 million (7.6 percent) year-over-year due to improved spreads on new loans, an increase in loan fees and the impact of the FBOP acquisition, partially offset by a decrease in average total loans and the impact of declining rates on the margin benefit from deposits. Total noninterest income increased $42 million (17.6 percent), mainly due to strong growth in commercial products revenue including, standby letters of credit, commercial loan and capital markets fees and higher equity investment income, partially offset by lower customer derivative revenue. Total noninterest expense increased $49 million (18.2 percent) over a year ago, primarily due to higher compensation and employee benefits expense and increased costs related to other real estate owned. The provision for credit losses was $141 million (32.9 percent) lower year-over-year due to a reduction in the reserve allocation and a decrease in net charge-offs.

     Wholesale Banking’s contribution to net income in the third quarter of 2010 was $43 million (45.7 percent) higher than the second quarter of 2010. This improvement was due to a reduction in the provision for credit losses and higher total net revenue, partially offset by an increase in total noninterest expense. Total net revenue was higher by $18 million (2.2 percent) due to higher net interest income, partially offset by a decline in total noninterest income. Net interest income was $29 million (5.7 percent) higher on a linked quarter basis as loan spreads improved. The $11 million (3.8 percent) decrease in total noninterest

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U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 22

income was the result of lower customer derivative revenue. Total noninterest expense increased by $2 million (.6 percent), principally due to higher compensation and employee benefits expense, partially offset by lower net shared services expense. The provision for credit losses decreased $52 million (15.3 percent) on a linked quarter basis due to lower net charge-offs, partially offset by an increase in allocated reserves.

     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 $243 million of the Company’s net income in the third quarter of 2010, a $37 million (18.0 percent) increase over the third quarter of 2009, and an $81 million (50.0 percent) increase over the prior quarter. Within Consumer Banking, the retail banking division accounted for $60 million of the total contribution, a $4 million (6.3 percent) decrease from the same quarter of last year, but a $32 million increase over the previous quarter. The decrease in the retail banking division’s contribution from the same period of 2009 was primarily due to higher total noninterest expense, partially offset by a lower provision for credit losses. Retail banking’s net interest income increased 9.2 percent over the third quarter of 2009 due to improved spreads on loans, higher deposit volumes and loans fees, partially offset by the impact of lower rates on the margin benefit of deposits. Total noninterest income for the retail banking division decreased 16.1 percent from a year ago due to a reduction in deposit service charges principally due to the impact of revised overdraft fee policies, partially offset by an improvement in retail lease residual valuation income. Total noninterest expense for the retail banking division in the third quarter of 2010 was 18.0 percent higher year-over-year, principally due to higher compensation and employee benefits expense, higher processing costs and net occupancy and equipment expenses related to business expansion, including the impact of the FBOP acquisition. The provision for credit losses for the retail banking division was lower than the same quarter of last year, as stress within the residential mortgages, home equity, and other installment and consumer loan portfolios moderated. In the third quarter of 2010, the mortgage banking division’s contribution was $183 million, a 28.9 increase over the third quarter of 2009. The division’s total net revenue increased 15.0 percent over a year ago, reflecting higher mortgage loan production, partially offset by lower interest income on average mortgage loans held-for-sale. Total noninterest expense for the mortgage banking division increased 16.7 percent over the third quarter of 2009, primarily due to higher compensation expense and servicing costs

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U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 23

related to increased production. The provision for credit losses decreased 32.9 percent year-over-year for the mortgage banking division.

     Consumer Banking’s contribution in the third quarter of 2010 was $81 million (50.0 percent) higher than the second quarter of 2010 due to higher total net revenue and a lower provision for credit losses, partially offset by an increase in total noninterest expense. Within Consumer Banking, the retail banking division’s contribution increased $32 million on a linked quarter basis, principally due to an 18.2 percent decrease in the provision for credit losses, partially offset by an increase in total noninterest expense. Total net revenue for the retail banking division decreased .3 percent due to lower total noninterest income, reflecting the impact of the revised overdraft fee policies on deposit service charges, partially offset by higher net interest income due to growth in average loan and deposit balances and improved spreads on loans. Total noninterest expense for the retail banking division increased 1.6 percent on a linked quarter basis, the result of higher compensation and employee benefits expense, expense related to other real estate owned and shared services expense, partially offset by lower fraud losses. The provision for credit losses for the division decreased 18.2 percent due to lower net charge-offs compared with the second quarter of 2010. The contribution of the mortgage banking division increased 36.6 percent over the second quarter of 2010, driven by higher total net revenue. Total net revenue increased 25.3 percent due to a 26.2 percent increase in net interest income and higher mortgage banking revenue due to higher mortgage production, partially offset by an unfavorable net change in the valuation of MSRs and related economic hedging activities. Total noninterest expense increased 6.9 percent due to higher commission and incentive expense related to the increase in production. The mortgage banking division’s provision for credit losses increased 30.6 percent on a linked quarter basis due to a higher reserve allocation.

     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 $53 million of the Company’s net income in the third quarter of 2010, a 36.9 percent decrease from the third quarter of 2009 and an 11.7 percent decrease from the second quarter of 2010. Total net revenue decreased by $7 million (1.9 percent) year-over-year. Net interest income was higher by $16 million (22.9 percent), primarily due to higher average deposit balances, partially offset by a decline in the related margin benefit. Total noninterest income declined $23 million (7.7 percent), as low interest rates negatively impacted money market investment fees

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U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 24

and lower money market fund balances led to a decline in account-level fees. Total noninterest expense increased by $36 million (15.9 percent), due to higher compensation and employee benefits expense. The provision for credit losses increased by $5 million (50.0 percent) due to an increase in net charge-offs.

     The decrease in the business line’s contribution in the third quarter of 2010 compared with the prior quarter was the result of a higher provision for credit losses, reflecting an increase in net charge-offs. Total net revenue increased $3 million (.8 percent), principally due to a favorable variance of $4 million (4.9 percent) in net interest income, the result of an improved margin benefit on average deposit balances. Total noninterest expense was essentially flat on a linked quarter basis.

     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 contributed $215 million of the Company’s net income in the third quarter of 2010, an increase of $142 million over the same period of 2009, and a $34 million (18.8 percent) increase over the prior quarter. The increase year-over-year was primarily due to higher total net revenue and a lower provision for credit losses. Total net revenue increased $54 million (5.0 percent) year-over-year. Net interest income increased $32 million (10.6 percent) due to strong growth in credit card balances and improved loan spreads, partially offset by the cost of rebates on the government card program and a decline in loan fees. Total noninterest income increased $22 million (2.8 percent) year-over-year, primarily due to increased transaction volumes across all products. Total noninterest expense increased $16 million (3.4 percent), driven by higher compensation and employee benefits expense and credit card-related professional services projects, partially offset by the timing of marketing and business development expense. The provision for credit losses decreased $187 million (37.9 percent) due to lower net charge-offs and a favorable change in the reserve allocation due to improved loss rates.

     Payment Services’ contribution in the third quarter of 2010 was $34 million (18.8 percent) higher than the second quarter of 2010 and was driven by a lower provision for credit losses and higher total net revenue, partially offset by an unfavorable variance in total noninterest expense. Total net revenue increased $17 million (1.5 percent) over the second quarter of 2010. Total noninterest income was $14 million (1.8 percent) higher on a linked quarter basis, principally due to higher transaction volumes, primarily in corporate payment products. Net interest income increased $3 million (.9 percent) due to wider loan spreads and higher volumes, partially offset by the cost of rebates on the government card program. Total noninterest expense increased $17 million (3.6 percent) on a linked quarter basis, due to higher

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U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 25

compensation and employee benefits expense and processing costs and an increase in professional services and marketing programs. The provision for credit losses decreased $51 million (14.2 percent) due to lower net charge-offs and a reduction in the reserve allocation, as the outlook for future losses on the credit card portfolios moderated.

     Treasury and Corporate Support includes the Company’s investment portfolios, funding, 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 $260 million in the third quarter of 2010, compared with net income of $211 million in the third quarter of 2009 and net income of $269 million in the second quarter of 2010. Net interest income increased $128 million (46.7 percent) over the third quarter of 2009, reflecting the impact of the FBOP acquisition, the current rate environment, wholesale funding decisions and the Company’s asset/liability position. Total noninterest income increased by $19 million, year-over-year, primarily due to lower securities impairments, partially offset by the impact of the third quarter of 2009 gain related to the Company’s investment in Visa Inc. Total noninterest expense increased $66 million (40.5 percent) as a result of higher compensation and employee benefits expense, increased costs related to affordable housing and other tax-advantaged projects and litigation-related expenses.

     Net income in the third quarter of 2010 was lower on a linked quarter basis due to a decrease in total net revenue, partially offset by lower total noninterest expense. Total net revenue was lower by $62 million (12.8 percent) as net interest income declined by $29 million (6.7 percent), principally due to the Company’s asset/liability position. Total noninterest income declined by $33 million (63.5 percent) on a linked quarter basis, largely due to lower syndication revenue on tax-advantaged transactions, lower customer derivative revenue and the impact of the second quarter of 2010 gain related to the Company’s investment in Visa Inc., partially offset by lower securities impairments. The $36 million (13.6 percent) decrease in total noninterest expense from the second quarter of 2010 was primarily due to a reduction in conversion costs related to the FBOP acquisition and the impact of debt extinguishment costs in the prior quarter, partially offset by an increase in the Company’s contribution to its charitable foundation.

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.

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U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 26

On Wednesday, October 20, 2010, at 7:30 a.m. (CDT) Richard K. Davis, chairman, president and chief executive officer, and Andrew Cecere, vice chairman and chief financial officer, will host a conference call to review the financial results. The conference call will be available by telephone or on the Internet. A presentation will be used during the call and will be available on the Company’s website at www.usbank.com. 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 13138356. 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, October 20th, and will run through Wednesday, October 27th, at 11:00 p.m. (CDT). 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 13138356. To access the webcast and presentation go to www.usbank.com and click on “About U.S. Bank”. The “Webcasts & Presentations” link can be found under the Investor/Shareholder information heading, which is at the left side of the bottom of the page.

Minneapolis-based U.S. Bancorp (“USB”), with $291 billion in assets, is the parent company of U.S. Bank National Association, the 5th largest commercial bank in the United States. The Company operates 3,013 banking offices in 24 states and 5,323 ATMs 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 Third quarter 2010 Results
October 20, 2010
Page 27

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 is likely to be impacted by effects of recently enacted and future legislation and regulation. 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, residual value risk, market risk, operational risk, interest rate risk, and liquidity 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, 2009, 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 measures 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 Third quarter 2010 Results
October 20, 2010
Page 28

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 ratios allows readers to compare 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 defined in generally accepted accounting principals (“GAAP”) or federal banking regulations. As a result, these non-regulatory capital ratios disclosed by the Company may be considered non-GAAP financial measures.

Because there are no standardized definitions for these non-regulatory capital ratios, 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						Nine Months Ended
(Dollars and Shares in Millions, Except Per Share Data)	September 30,						September 30,
(Unaudited)	2010			2009			2010			2009
Interest Income
Loans	$	2,560		$	2,373		$	7,580		$	7,068
Loans held for sale		71			87			162			221
Investment securities		400			374			1,204			1,210
Other interest income		46			23			119			65
Total interest income		3,077			2,857			9,065			8,564
Interest Expense
Deposits		231			299			696			937
Short-term borrowings		149			138			414			412
Long-term debt		273			313			822			1,007
Total interest expense		653			750			1,932			2,356
Net interest income		2,424			2,107			7,133			6,208
Provision for credit losses		995			1,456			3,444			4,169
Net interest income after provision for credit losses		1,429			651			3,689			2,039
Noninterest Income
Credit and debit card revenue		274			267			798			782
Corporate payment products revenue		191			181			537			503
Merchant processing services		318			300			930			836
ATM processing services		105			103			318			309
Trust and investment management fees		267			293			798			891
Deposit service charges		160			256			566			732
Treasury management fees		139			141			421			420
Commercial products revenue		197			157			563			430
Mortgage banking revenue		310			276			753			817
Investment products fees and commissions		27			27			82			82
Securities gains (losses), net		(9	)		(76	)		(64	)		(293	)
Other		131			168			436			427
Total noninterest income		2,110			2,093			6,138			5,936
Noninterest Expense
Compensation		973			769			2,780			2,319
Employee benefits		171			134			523			429
Net occupancy and equipment		229			203			682			622
Professional services		78			63			209			174
Marketing and business development		108			137			254			273
Technology and communications		186			175			557			487
Postage, printing and supplies		74			72			223			218
Other intangibles		90			94			278			280
Other		476			406			1,392			1,251
Total noninterest expense		2,385			2,053			6,898			6,053
Income before income taxes		1,154			691			2,929			1,922
Applicable income taxes		260			86			620			287
Net income		894			605		$	2,309			1,635
Net (income) loss attributable to noncontrolling interests		14			(2	)		34			(32	)
Net income attributable to U.S. Bancorp	$	908		$	603		$	2,343		$	1,603
Net income applicable to U.S. Bancorp common shareholders	$	871		$	583		$	2,381		$	1,223
Earnings per common share	$	.46		$	.31		$	1.25		$	.67
Diluted earnings per common share	$	.45		$	.30		$	1.24		$	.66
Dividends declared per common share	$	.05		$	.05		$	.15		$	.15
Average common shares outstanding		1,913			1,908			1,911			1,832
Average diluted common shares outstanding		1,920			1,917			1,920			1,840

Page 29

U.S. Bancorp

Consolidated Ending Balance Sheet

	September 30,			December 31,			September 30,
(Dollars in Millions)	2010			2009			2009
	(Unaudited)						(Unaudited)
Assets
Cash and due from banks	$	4,470		$	6,206		$	5,016
Investment securities
Held-to-maturity		557			47			48
Available-for-sale		48,406			44,721			42,288
Loans held for sale		8,438			4,772			6,030
Loans
Commercial		47,627			48,792			50,712
Commercial real estate		34,318			34,093			33,896
Residential mortgages		28,587			26,056			24,947
Retail		65,047			63,955			63,642
Total loans, excluding covered loans		175,579			172,896			173,197
Covered loans		19,038			21,859			9,549
Total loans		194,617			194,755			182,746
Less allowance for loan losses		(5,321	)		(5,079	)		(4,825	)
Net loans		189,296			189,676			177,921
Premises and equipment		2,304			2,263			2,251
Goodwill		9,024			9,011			8,597
Other intangible assets		2,856			3,406			3,158
Other assets		25,303			21,074			19,749
Total assets	$	290,654		$	281,176		$	265,058
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing	$	40,750		$	38,186		$	34,250
Interest-bearing		118,863			115,135			104,950
Time deposits greater than $100,000		27,793			29,921			30,555
Total deposits		187,406			183,242			169,755
Short-term borrowings		34,341			31,312			28,166
Long-term debt		30,353			32,580			33,249
Other liabilities		8,611			7,381			8,008
Total liabilities		260,711			254,515			239,178
Shareholders’ equity
Preferred stock		1,930			1,500			1,500
Common stock		21			21			21
Capital surplus		8,310			8,319			8,308
Retained earnings		26,147			24,116			23,629
Less treasury stock		(6,363	)		(6,509	)		(6,534	)
Accumulated other comprehensive income (loss)		(894	)		(1,484	)		(1,753	)
Total U.S. Bancorp shareholders’ equity		29,151			25,963			25,171
Noncontrolling interests		792			698			709
Total equity		29,943			26,661			25,880
Total liabilities and equity	$	290,654		$	281,176		$	265,058

Page 30

U.S. Bancorp

Non-Regulatory Capital Ratios

	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in Millions, Unaudited)	2010		*	2010			2010			2009			2009
Total equity	$	29,943		$	28,940		$	27,388		$	26,661		$	25,880
Preferred stock		(1,930	)		(1,930	)		(1,500	)		(1,500	)		(1,500	)
Noncontrolling interests		(792	)		(771	)		(679	)		(698	)		(709	)
Goodwill (net of deferred tax liability)		(8,429	)		(8,425	)		(8,374	)		(8,482	)		(8,161	)
Intangible assets, other than mortgage servicing rights		(1,434	)		(1,525	)		(1,610	)		(1,657	)		(1,604	)
Tangible common equity (a)		17,358			16,289			15,225			14,324			13,906
Tier 1 capital, determined in accordance with prescribed regulatory requirements		24,908			24,021			23,278			22,610			21,990
Trust preferred securities		(3,949	)		(3,949	)		(4,524	)		(4,524	)		(4,024	)
Preferred stock		(1,930	)		(1,930	)		(1,500	)		(1,500	)		(1,500	)
Noncontrolling interests, less preferred stock not eligible for Tier 1 capital		(694	)		(694	)		(692	)		(692	)		(692	)
Tier 1 common equity (b)		18,335			17,448			16,562			15,894			15,774
Total assets		290,654			283,243			282,428			281,176			265,058
Goodwill (net of deferred tax liability)		(8,429	)		(8,425	)		(8,374	)		(8,482	)		(8,161	)
Intangible assets, other than mortgage servicing rights		(1,434	)		(1,525	)		(1,610	)		(1,657	)		(1,604	)
Tangible assets (c)		280,791			273,293			272,444			271,037			255,293
Risk-weighted assets, determined in accordance with prescribed regulatory requirements (d)		242,490			237,145			234,042			235,233			231,993
Ratios
Tangible common equity to tangible assets (a)/(c)		6.2	%		6.0	%		5.6	%		5.3	%		5.4	%
Tier 1 common equity to risk-weighted assets (b)/(d)		7.6			7.4			7.1			6.8			6.8
Tangible common equity to risk-weighted assets (a)/(d)		7.2			6.9			6.5			6.1			6.0

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

Page 31

EX-99.1

exv99w1

EX-99.2

Exhibit 99.2

U.S. Bancorp 3Q10 Earnings Conference Call October 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 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 is likely to be impacted by effects of recently enacted and future legislation and regulation. 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, residual value risk, market risk, operational risk, interest rate risk and liquidity 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, 2009, 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. 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.

3Q10 Highlights Net income of $908 million; $0.45 per diluted common share Record total net revenue of $4.6 billion, up 7.9% vs. 3Q09 Net interest income growth of 14.8% vs. 3Q09 Noninterest income growth of 0.8% vs. 3Q09 Achieved positive operating leverage on a linked quarter basis Average loan growth of 5.8% (decline of 0.4% excluding acquisitions) vs. 3Q09 and average loan growth of 0.7% vs. 2Q10 Strong average low cost deposit1 growth of 13.6% (9.0% excluding acquisitions) vs. 3Q09 Net charge-offs declined 10.7% vs. 2Q10 and nonperforming assets declined 4.6% vs. 2Q10 (excluding covered assets) Capital generation continues to strengthen capital position Tier 1 common equity ratio of 7.6% Tier 1 capital ratio of 10.3% 1 Low cost deposits include noninterest-bearing, interest checking, money market and savings deposits

Performance Ratios 3Q09 4Q09 1Q10 2Q10 3Q10 Return on Avg Common Equity 0.1 0.096 0.105 0.134 0.128 Return on Avg Common Equity 0.1 0.096 0.105 0.118 0.128 Return on Avg Assets 0.009 0.0086 0.0096 0.0109 0.0126 3Q09 4Q09 1Q10 2Q10 3Q10 Efficiency Ratio 0.475 0.491 0.49 0.524 0.519 Net Interest Margin 0.0367 0.0383 0.039 0.039 0.0391 ROCE 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 * Adjusted for ITS transaction (reported net income $862 million - $118 million ITS transaction equity impact + $13 million debt extinguishment costs (net of tax) = adjusted net income $757 million; see slide 14)

Capital Position $ in billions

3Q09 4Q09 1Q10 2Q10 3Q10 Loans 182 191.6 192.9 191.2 192.5 Deposits 166.4 180.9 182.5 183.3 182.7 Loan and Deposit Growth Average Balances Year-Over-Year Growth 3Q10 Acquisition Adjusted Loan Growth = (0.4%) Deposit Growth = 2.7% 8.2% $191.6 3.9% $192.9 4.0% $191.2 5.8% $192.5 9.3% $182.0 25.2% $180.9 13.7% $182.5 12.3% $183.3 9.8% $182.7 24.6% $166.4 $ in billions

Taxable-equivalent basis Revenue Growth Year-Over-Year Growth 25.8% 20.8% 11.3% 8.7% 7.9% $ in millions 3Q09 4Q09 1Q10 2Q10 3Q10 Reported 4250 4376 4321 4519 4587 USB Record Revenue 3Q10

3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 NPA $ Change 76 49 155 290 357 489 727 626 386 184 91 -261 -171 NPA % Change 0.13 0.08 0.22 0.34 0.31 0.33 0.37 0.23 0.12 0.05 0.02 -0.07 -0.05 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 NCO $ Change 8 26 68 103 102 134 156 141 112 69 25 -21 -119 NCO % Change 0.041884817 0.130653266 0.302222222 0.351535836 0.257575758 0.269076305 0.246835443 0.17893401 0.12056 0.07 0.02 -0.02 -0.11 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* NCO $ Change (Left Scale) NCO % Change (Right Scale) NPA $ Change (Left Scale) NPA % Change (Right Scale) 103 68 (21) 25 69 112 141 156 134 102 155 290 91 184 386 626 727 489 357 (261) (119) (171)

Credit Quality - Outlook Reached inflection point on credit losses and NPAs driven by declines in delinquencies and criticized assets The Company expects the level of Net Charge-offs and Nonperforming Assets, excluding covered assets, to trend lower during 4Q10 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 30 to 89 % 0.010601156 0.0103876 0.011833483 0.016222915 0.017008547 0.014526577 0.014428656 0.014800805 0.013381895 0.011072197 0.01 90+ % 0.004270373 0.004141298 0.004633146 0.005564539 0.006834344 0.007245829 0.00775995 0.008820331 0.007760089 0.007220238 0.0066 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Chg Criticized Assets 0.181945238 0.228090362 0.156114108 0.359501198 0.275796154 0.002013557 0.057701718 0.001878723 -0.012658584 -0.159651986 -0.08 Delinquencies* Changes in Criticized Assets* * Excluding Covered Assets (assets subject to loss sharing agreements with FDIC)

Credit Quality - Reserves 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Allowance 2260 2243 2448 2648 3004 3575 4105 4571 4986 5264 5511 5540 Provision Exceeding NCO's 0 192 200 250 635 530 466 415 278 175 25 0 Provision/NCO's 1 1.66 1.51 1.5 2 1.67 1.5 1.4 1.25 1.15 1.02 1 Allowance for Credit Losses Allowance Provision Exceeding NCO's Provision/NCO's $ in millions 5,511 5,264 4,986 4,571 4,105 3,575 3,004 2,648 2,448 2,243 2,260 5,540

3Q09 4Q09 1Q10 2Q10 3Q10 Foreclosure Starts - Insured/Serviced 6615 7160 7632 7738 7778 Foreclosure Starts - Portfolio 2673 2413 2231 1659 1717 Average per Day 143 154 162 147 148 Foreclosures Number of Foreclosure Starts Investor Owner Mix 15185 10823 Judicial 62% Non Judicial 38% Primary goal is to keep borrowers in their homes Actively participate in programs designed to assist homeowners and prevent foreclosures Manageable size and quality of portfolio allow effective internal management and control Internal assessment and review of policies and procedures confirmed quality of processes and controls U.S. Bank does not plan to halt foreclosures Foreclosure Starts - Portfolio Foreclosure Starts - Serviced/Insured Average per Day Active Foreclosures 31,400 Average Days in Foreclosure 254 days Judicial 283 days Non-Judicial 207 days 9,288 9,573 9,863 9,397 9,495

Earnings Summary $ in millions, except per-share data Taxable-equivalent basis

3Q10 Results - Key Drivers vs. 3Q09 Net Revenue growth of 7.9% (7.2% excluding significant items) Net interest income growth of 14.8%; net interest margin of 3.91% vs. 3.67% Noninterest income growth of 0.8% (decline of 0.5% excluding significant items) Significant items: net change of $28 million Noninterest expense growth of 16.2% Provision for credit losses lower by $461 million Net charge-offs lower by $46 million Provision equal to net charge-offs; provision in excess of credit losses of $415 million in 3Q09 vs. 2Q10 Net Revenue growth of 1.5% (1.9% excluding significant items) Net interest income growth of 2.8%; net interest margin of 3.91% vs. 3.90% Noninterest income flat (growth of 0.8% excluding significant items) Significant items: net change of ($16 million) Noninterest expense growth of 0.3% Provision for credit losses lower by $144 million Net charge-offs lower by $119 million Provision equal to net charge-offs; provision in excess of credit losses of $25 million in 2Q10

Significant Items $ in millions * Not a component of net income, but does impact net income applicable to U.S. Bancorp common shareholders and earnings per diluted common share

Net Interest Income 3Q09 4Q09 1Q10 2Q10 3Q10 Net Interest Income 2157 2360 2403 2409 2477 Net Interest Margin 0.0367 0.0383 0.039 0.039 0.0391 Net Interest Income Key Points $ in millions Taxable-equivalent basis vs. 3Q09 Average earning assets grew by $17.8 billion, or 7.6% (2.6% excluding acquisitions) Net interest margin higher by 24 bp (3.91% vs. 3.67%) driven by: Growth in low cost core deposits Favorable funding rates Improved credit spreads vs. 2Q10 Average earning assets grew by $4.5 billion, or 1.8% Net interest margin higher by 1 bp (3.91% vs. 3.90%) driven by: Favorable funding rates Offset by Card Act Year-Over-Year Growth 9.7% 9.2% 14.7% 14.5% 14.8%

Average Loans 3Q09 4Q09 1Q10 2Q10 3Q10 Covered 10.288 18.504 21.415 20.454 19.308 Commercial 51.222 49.979 47.282 46.34 46.784 CRE 33.829 34.044 34.151 34.164 34.19 Res Mtg 24.405 25.621 26.408 26.821 27.89 Retail 62.224 63.5 63.622 63.382 64.369 Average Loans Key Points $ in billions Year-Over-Year Growth 9.3% 8.2% 3.9% 4.0% 5.8% $191.2 $192.5 $181.9 $191.6 $192.9 Retail Res Mtg Covered CRE Commercial vs. 3Q09 Average total loans grew by $10.6 billion, or 5.8% (declined by 0.4% excluding acquisitions) Average total commercial loans declined $4.4 billion, or 8.7%, primarily due to reduction in utilization of revolving lines of credit (26% 3Q10 vs. 32% 3Q09) and reduced demand for new loans Acquisition impact primarily in average covered loans which were higher by $9.0 billion vs. 2Q10 Average total loans grew by $1.3 billion, or 0.7% Average total commercial loans grew by $0.4 billion, or 1.0%, utilization of revolving lines of credit relatively stable (26% 3Q10 vs. 27% 2Q10), first linked quarter average balance increase since 4Q08

Average Deposits 3Q09 4Q09 1Q10 2Q10 3Q10 Time 43.951 45.774 45.606 43.607 43.607 Money Market 33.387 38.485 40.902 40.256 38.256 Checking & Savings 52.042 55.64 58.023 59.538 61.316 Noninterest-bearing 36.982 40.99 38 39.917 39.732 Average Deposits Key Points $ in billions Year-Over-Year Growth 24.6% 25.2% 13.7% 12.3% 9.8% $183.3 $182.7 $166.4 $180.9 $182.5 Noninterest - -bearing Checking & Savings Time Money Market vs. 3Q09 Average total deposits grew by $16.3 billion, or 9.8% (2.7% excluding acquisitions) Average low cost deposits (NIB, interest checking, money market and savings), grew $16.6 billion, or 13.6% (9.0% excluding acquisitions) Growth in low cost deposits led to reduction in wholesale time deposits, contributing to net interest margin expansion vs. 2Q10 Average total deposits decreased by $0.6 billion, or 0.4% Average low cost deposits decreased by $0.7 billion, or 0.5%, primarily due to decline in corporate trust, institutional trust and broker- dealer balances, partially offset by higher consumer banking balances

Noninterest Income 3Q09 4Q09 1Q10 2Q10 3Q10 All Other 379 400 392 492 451 Mortgage 276 218 200 243 310 Service Charges 397 370 344 344 299 Trust & Inv Mgmt 293 277 264 267 267 Payment Services 748 751 718 764 783 Noninterest Income Key Points $ in millions Year-Over-Year Growth 48.2% 37.8% 7.3% 2.7% 0.8% $1,918 $2,110 $2,110 $2,093 $2,016 Trust & Inv Mgmt Service Charges & Treasury Mgmt All Other Mortgage Payment Services Payment services = credit and debit card revenue, corporate payment products revenue and merchant processing services All Other Mortgage Service Charges Trust & Inv Mgmt Payment Services vs. 3Q09 Noninterest income grew by $17 million, or 0.8%, driven by: Payments revenue (4.7% growth) Commercial products revenue (25.5% growth) Mortgage banking revenue increased by $34 million 12% increase in production volume Unfavorable net change in MSR valuation and related hedging (hedge $1 3Q10 vs. $67 3Q09) Lower deposit service charges and trust & investment management fees Significant items, including net securities losses, were favorable by $28 million vs. 2Q10 Noninterest income was flat (growth of 0.8% excluding significant items), driven by: Payments revenue Mortgage banking revenue increase of $67 million 57% increase in production volume Unfavorable net change in MSR valuation and related hedging (hedge $1 3Q10 vs. $55 2Q10) Lower deposit service charges Significant items, including net securities losses, unfavorable by $16 million

Noninterest Expense 3Q09 4Q09 1Q10 2Q10 3Q10 All Other 500 611 491 613 566 Tech & Communications 175 186 185 186 186 Prof Svcs, Marketing and PPS 272 256 192 234 260 Occupancy & Equip 203 214 227 226 229 Compensation & Benefits 903 961 1041 1118 1144 Noninterest Expense Key Points $ in millions Year-Over-Year Growth 13.2% 15.0% 14.2% 11.6% 16.2% $2,136 $2,377 $2,385 $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. 3Q09 Noninterest expense was higher by $332 million, or 16.2%, majority of variance driven by: Acquisitions ($85 million of increase) Compensation and benefits Other loan expense Investments in affordable housing and other tax- advantaged projects ($22 million of increase) Investments in Corporate Banking and Wealth Management initiatives vs. 2Q10 Noninterest expense was higher by $8 million, or 0.3%, majority of variance driven by: Compensation due to higher incentives and commissions Marketing and business development

Mortgage Repurchase Mortgages Repurchased and Make-whole Payments Mortgage Representation and Warranties Reserve $ in millions 3Q10 2Q10 1Q10 4Q09 3Q09 Beginning Reserve $101 $73 $72 $52 $40 Net Realized Losses (24) (20) (22) (6) (3) Additions to Reserve 70 48 23 26 15 Ending Reserve $147 $101 $73 $72 $52 Mortgages repurchased and make-whole payments $53 $27 $23 $35 $12 Repurchase activity lower than peers due to: Conservative credit and underwriting culture Disciplined origination process Repurchase requests expected to remain slightly elevated over the next few quarters

Regulatory Environment Existing regulatory oversight actions YTD 4Q10 Annual Actual Estimate Run Rate Overdraft Legislation ^ $140 ^ $110 - $120 ^ $440 - $480 Pricing and Policy Changes Card Act ^ $100 ^ $60 - $80 ^ $250 Net Interest Margin and Fee Income $ in millions, estimated reduction to revenue

Regulatory Environment Capital Impact of limits for mortgage servicing rights, deferred tax assets and investments in financial institutions = $0 Impact of pension liability, purchased credit card relationship intangibles and all other = 38 bp Impact of non-core capital elements net of replacement capital requirement = 45 bp* Liquidity Liquidity Coverage Ratio (LCR) may require replacing off-balance sheet liquidity with on-balance sheet liquidity Increase advances from Federal Home Loan Bank Increase investment portfolio Manageable with current initiatives underway Utilizing guidance from Basel Committee December 2009 Consultative Document and July 2010 Annex * Assuming 135 bp impact of Trust Preferred less replacement capital requirements of 90 bp (assume REIT preferred securities remain eligible) Basel III

Positioned to Win USB is well-positioned to produce industry-leading performance with... a strong foundation, including excellent credit and risk management, a diversified business mix and prudent capital management a proven track record initiatives to build relevant, profitable scale in each of our business lines investments in new technology to increase revenue, improve efficiency and enhance service strategies to provide the highest quality customer experience and maintain a highly engaged employee base ....creating superior shareholder value

Appendix

Credit Quality - Commercial Loans 3Q09 4Q09 1Q10 2Q10 3Q10 Average Loans 44655 43490 40837 40095 40726 Net Charge-offs Ratio 0.0178 0.0228 0.0241 0.0223 0.0149 Average Loans and Net Charge-offs Ratios Key Statistics Comments Overall delinquencies were stable, but nonperforming loans and net charge-offs both showed substantial improvement this quarter Commercial utilization remains low but relatively stable this quarter 3Q09 2Q10 3Q10 Average Loans 44,655 40,095 40,726 30-89 Delinquencies 0.89% 0.73% 0.76% 90+ Delinquencies 0.19% 0.24% 0.22% Nonperforming Loans 2.06% 1.65% 1.43% 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Utilization 0.3762 0.3716 0.3538 0.3197 0.3007 0.2798 0.27 0.2646 Revolving Line Utilization Trend $ in millions

EF ST Balance 2347 3711 Credit Quality - Commercial Leases 3Q09 4Q09 1Q10 2Q10 3Q10 Average Loans 6567 6489 6445 6245 6058 Net Charge-offs Ratio 0.0266 0.0202 0.0214 0.0141 0.0118 Average Loans and Net Charge-offs Ratios Key Statistics Comments Overall delinquencies and nonperforming loans continue to improve Significant reduction in net charge-offs driven by improvement in small ticket leasing 3Q09 2Q10 3Q10 Average Loans 6,567 6,245 6,058 30-89 Delinquencies 2.28% 1.55% 1.45% 90+ Delinquencies --% 0.03% 0.02% Nonperforming Loans 1.82% 1.87% 1.83% $ in millions Equipment Finance $2,347 Small Ticket $3,711

Multi-Family Retail Res Construction Condo Construction A&D Commercial Office Other balance 1892 1148 1348 451 961 872 1510 Inv Owner balance 15185 10823 Credit Quality - Commercial Real Estate 3Q09 4Q09 1Q10 2Q10 3Q10 Avg Loans 33829 34044 34151 34164 34190 NCO Ratio 0.0222 0.0203 0.0228 0.0267 0.024 NCO Ratio - Mtg 0.0049 0.0048 0.0073 0.0111 0.0172 NCO Ratio - Construction 0.0662 0.0624 0.068 0.0731 0.0456 Average Loans and Net Charge-offs Ratios Key Statistics Comments Delinquencies and nonperforming loans continue to trend lower Construction net charge-offs decreased significantly while increases in commercial mortgages reflect aggressive management of nonperforming loans 3Q09 2Q10 3Q10 Average Loans 33,829 34,164 34,190 30-89 Delinquencies 1.32% 0.98% 0.50% 90+ Delinquencies 0.12% 0.09% 0.05% Nonperforming Loans 5.11% 4.75% 4.15% Performing TDRs 138 69 70 $ in millions Multi-family $1,892 Other $1,510 Office $872 A&D Construction $961 Retail $1,148 Condo Construction $451 Residential Construction $1,348 Investor $15,185 Owner Occupied $10,823 CRE Mortgage CRE Construction Average Loans Net Charge-offs Ratio NCO Ratio - Comm Mtg NCO Ratio - Construction

3Q09 4Q09 1Q10 2Q10 3Q10 Restructured 1338 1354 1560 1672 1747 Credit Quality - Residential Mortgage 3Q09 4Q09 1Q10 2Q10 3Q10 Average Loans 24405 25621 26408 26821 27890 Net Charge-offs Ratio 0.021 0.0237 0.0223 0.0206 0.0188 Average Loans and Net Charge-offs Ratios Key Statistics Comments Continued improvement in both early and late stage delinquencies Net charge-offs continue to decline Successfully modified 2,254 loans under the HAMP program (owned and serviced) in 3Q10, representing $457 million in balances 3Q09 2Q10 3Q10 Average Loans 24,405 26,821 27,890 30-89 Delinquencies 2.39% 1.75% 1.65% 90+ Delinquencies 2.32% 1.85% 1.75% Nonperforming Loans 1.54% 2.23% 2.15% Residential Mortgage Performing TDRs $ in millions

Credit Quality - Home Equity 3Q09 4Q09 1Q10 2Q10 3Q10 Average Loans 19368 19444 19402 19332 19289 Net Charge-offs Ratio 0.0182 0.0196 0.0188 0.0164 0.0162 Average Loans and Net Charge-offs Ratios Key Statistics Comments Strong credit quality portfolio (weighted average FICO 746, CLTV 73%) originated primarily through the retail branch network to existing bank customers on their primary residence Net charge-offs, delinquencies and nonperforming loans remain relatively stable 3Q09 2Q10 3Q10 Average Loans 19,368 19,332 19,289 30-89 Delinquencies 1.00% 0.89% 0.93% 90+ Delinquencies 0.78% 0.68% 0.73% Nonperforming Loans 0.13% 0.16% 0.18% Traditional: 87% Wtd Avg LTV: 71% NCO: 1.15% Consumer Finance: 13% Wtd Avg LTV: 82% NCO: 4.86% $ in millions Traditional Consumer Finance Balance 87 13

Traditional Consumer Finance Balance 14988 1522 3Q09 2Q10 3Q10 Average Loans 15,387 16,329 16,510 30-89 Delinquencies 2.58% 1.86% 1.85% 90+ Delinquencies 2.41% 2.38% 2.09% Nonperforming Loans 0.77% 1.04% 1.21% Credit Quality - Credit Card 3Q09 4Q09 1Q10 2Q10 3Q10 Average Loans 15387 16399 16368 16329 16510 Net Charge-offs Ratio 0.0699 0.0689 0.0773 0.0779 0.0711 Net Charge-offs Ratio Excluding Acquired Portfolios* 0.073 0.0746 0.0842 0.0853 0.0784 Average Loans and Net Charge-offs Ratios Key Statistics Comments Average loans increased on a linked quarter basis, and were higher by 7.3% vs. 3Q09 due primarily to portfolio acquisitions Significant improvement in late stage delinquencies $ in millions * Excluding portfolio purchases where the acquired loans were recorded at fair value at the purchase date 2Q09 Average Loans Net Charge-offs Ratio Net Charge-offs Ratio Excluding Acquired Portfolios* Core Portfolio $14,988 Portfolios Acquired at Fair Value $1,522

Credit Quality - Retail Leasing 3Q09 4Q09 1Q10 2Q10 3Q10 Average Loans 4822 4620 4509 4364 4289 Net Charge-offs Ratio 0.0066 0.0043 0.0045 0.0037 0.0019 Average Loans and Net Charge-offs Ratios Key Statistics Comments Retail leasing net charge-offs continue to improve, reaching pre-recession levels Delinquencies remain stable Strong used auto values continue to reduce end of term risk and net charge-offs 3Q09 2Q10 3Q10 Average Loans 4,822 4,364 4,289 30-89 Delinquencies 0.78% 0.46% 0.46% 90+ Delinquencies 0.11% 0.05% 0.05% Nonperforming Loans --% --% --% $ in millions 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Index 102.8 102.8 109 116.1 117.7 118.3 120.5 119.2 Manheim Used Vehicle Value Index* * Manheim Used Vehicle Value Index source: www.manheimconsulting.com, January 1995 = 100, quarter value = average monthly ending value

Auto Install Studend Revolving Balance 10318 5590 4850 3523 Credit Quality - Other Retail 3Q09 4Q09 1Q10 2Q10 3Q10 Average Loans 22647 23037 23343 23357 24281 Net Charge-offs Ratio 0.0194 0.0191 0.0193 0.017 0.0165 Average Loans and Net Charge-offs Ratios Key Statistics Comments Net charge-offs, delinquencies and nonperforming loans continue to decline Auto loan portfolio net charge-off rate declined to 0.69% in 3Q10, down from 1.28% in 3Q09 3Q09 2Q10 3Q10 Average Loans 22,647 23,357 24,281 30-89 Delinquencies 1.13% 0.85% 0.81% 90+ Delinquencies 0.37% 0.32% 0.28% Nonperforming Loans 0.10% 0.13% 0.11% Installment $5,590 Auto Loans $10,318 Revolving Credit $3,523 Student Lending $4,850 $ in millions

Non-Regulatory Capital Ratios $ in millions

U.S. Bancorp 3Q10 Earnings Conference Call October 20, 2010