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): July 20, 2011

U.S. BANCORP

(Exact name of registrant as specified in its charter)

1-6880

(Commission File Number)

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

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

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

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

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

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On July 20, 2011, U.S. Bancorp (the “Company”) issued a press release reporting quarter ended June 30, 2011 results, and posted on its website its 2Q11 Earnings Conference Call Presentation, which contains certain additional historical and forward-looking information relating to the Company. The press release is included as Exhibit 99.1 hereto and is incorporated herein by reference. The information included in the press release is considered to be “filed” under the Securities Exchange Act of 1934. The 2Q11 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated herein by reference. The information included in the 2Q11 Earnings Conference Call Presentation is considered to be “furnished” under the Securities Exchange Act of 1934. The press release and 2Q11 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 July 20, 2011, deemed “filed” under the Securities Exchange Act of 1934.

99.2 2Q11 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: July 20, 2011

EX-99.1

Exhibit 99.1

News Release
Contacts: Thomas Joyce Media (612) 303-3167 Judith T. Murphy Investors/Analysts (612) 303-0783

U.S. BANCORP REPORTS NET INCOME

FOR THE SECOND QUARTER OF 2011

Achieves Total Net Revenue of $4.7 Billion; Earns Over $1.2 Billion in Net Income

MINNEAPOLIS, July 20, 2011 — U.S. Bancorp (NYSE: USB) today reported net income of $1,203 million for the second quarter of 2011, or $.60 per diluted common share. Earnings for the second quarter of 2011 were driven by year-over-year growth in total net revenue and a reduction in the provision for credit losses. Highlights for the second quarter of 2011 included:

• Strong new lending activity of $52.7 billion (11.2 percent increase on a linked quarter basis) during the second quarter including:

• $16.1 billion of new commercial and commercial real estate commitments

• $21.6 billion of commercial and commercial real estate commitment renewals

• $2.0 billion of lines related to new credit card accounts

• $13.0 billion of mortgage and other retail originations

• Growth in average total loans of 4.0 percent (3.5 percent excluding acquisitions) over the second quarter of 2010

• Growth in average total commercial loans of 8.0 percent (7.8 percent excluding acquisitions) over the second quarter of 2010

• Growth in average total loans of .6 percent over the prior quarter (.5 percent excluding acquisitions), including average total commercial loan growth of 2.8 percent

• Quarterly average commercial and commercial real estate commitments increased 4.4 percent over the prior quarter

• Significant growth in average deposits of 14.2 percent (9.6 percent excluding acquisitions) over the second quarter of 2010, including:

• 22.1 percent growth in average noninterest-bearing deposits (21.1 percent excluding acquisitions)

• 15.1 percent growth in average total savings deposits (8.8 percent excluding acquisitions)

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July 20, 2011

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• Total net revenue growth of 3.8 percent over the second quarter of 2010

• Net interest income growth of 5.6 percent over the second quarter of 2010, driven by:

• Average earning assets growth of 12.2 percent, including anticipated growth in the investment securities portfolio (33.5 percent)

• Exceptionally strong growth in lower cost core deposit funding

• Net interest margin of 3.67 percent for the second quarter of 2011, compared with 3.90 percent for the second quarter of 2010, and 3.69 percent for the first quarter of 2011 (decline year-over-year principally due to higher investment securities portfolio balances and cash balances at the Federal Reserve)

• Strong year-over-year growth in payments-related fee income, driven by:

• Higher credit and debit card revenue (7.5 percent), corporate payment products revenue (3.9 percent) and merchant processing services revenue (5.6 percent)

• Managed expense levels

• Total noninterest expense increase of 2.0 percent year-over-year

• Efficiency ratio improved to 51.6 percent compared with 52.4 percent in the second quarter of 2010

• Net charge-offs and nonperforming assets declined on a linked quarter basis. Provision for credit losses was $175 million less than net charge-offs.

• Net charge-offs declined 7.2 percent from the first quarter of 2011

• Nonperforming assets (excluding covered assets) decreased 6.2 percent from the first quarter of 2011 (7.4 percent including covered assets)

• Early and late stage loan delinquencies as a percentage of ending loan balances declined in all loan categories on a linked quarter basis

• Allowance to nonperforming assets (excluding covered assets) was 159 percent at June 30, 2011, compared with 154 percent at March 31, 2011, and 146 percent at June 30, 2010

• Allowance to period-end loans (excluding covered loans) was 2.83 percent at June 30, 2011, compared with 2.97 percent at March 31, 2011, and 3.18 percent at June 30, 2010

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July 20, 2011

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• Strong capital generation continues to strengthen capital position; ratios at June 30, 2011 were:

• Tier 1 common equity ratio of 8.4 percent

• Tier 1 capital ratio of 11.0 percent

• Total risk based capital ratio of 13.9 percent

• Tier 1 common ratio of 8.1 percent under anticipated Basel III guidelines

EARNINGS SUMMARY Table 1

		00000000		00000000		00000000		00000000		00000000		00000000		00000000		00000000
($ in millions, except per-share data)	2Q 2011		1Q 2011		2Q 2010		Percent Change 2Q11 vs 1Q11		Percent Change 2Q11 vs 2Q10		YTD 2011		YTD 2010		Percent Change
Net income attributable to U.S. Bancorp	$	1,203	$	1,046	$	766		15.0		57.0	$	2,249	$	1,435		56.7
Diluted earnings per common share	$	.60	$	.52	$	.45		15.4		33.3	$	1.12	$	.79		41.8
Return on average assets (%)		1.54		1.38		1.09						1.46		1.03
Return on average common equity (%)		15.9		14.5		13.4						15.2		12.0
Net interest margin (%)		3.67		3.69		3.90						3.68		3.90
Efficiency ratio (%)		51.6		51.1		52.4						51.4		50.7
Tangible efficiency ratio (%) (a)		50.0		49.5		50.4						49.8		48.6
Dividends declared per common share	$	.125	$	.125	$	.050		—		nm	$	.250	$	.100		nm
Book value per common share (period-end)	$	15.50	$	14.83	$	13.69		4.5		13.2

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

Net income attributable to U.S. Bancorp was $1,203 million for the second quarter of 2011, 57.0 percent higher than the $766 million for the second quarter of 2010 and 15.0 percent higher than the $1,046 million for the first quarter of 2011. Diluted earnings per common share of $.60 in the second quarter of 2011 were $.15 higher than the second quarter of 2010 and $.08 higher than the previous quarter. Return on average assets and return on average common equity were 1.54 percent and 15.9 percent, respectively, for the second quarter of 2011, compared with 1.09 percent and 13.4 percent, respectively, for the second quarter of 2010. Several items impacted the comparison of the current quarter’s results to prior periods. Diluted earnings per common share for the second quarter of 2010 included a $.05 benefit related to a non-recurring exchange of perpetual preferred stock for outstanding income trust securities. The second quarter of 2010 also included net securities losses of $21 million. Included in the first quarter of 2011 was a $46 million gain related to the acquisition of First Community Bank of New Mexico (“FCB”) in a transaction with the Federal Deposit Insurance Corporation (“FDIC”) that increased first quarter of 2011 diluted earnings per common share by

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U.S. Bancorp Reports Second Quarter 2011 Results

July 20, 2011

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approximately $.02. The provision for credit losses for the second quarter of 2011 was $175 million lower than net charge-offs, as compared with $50 million lower than net charge-offs for the first quarter of 2011 and $25 million in excess of net charge-offs for the second quarter of 2010.

U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “Our second quarter results clearly illustrate our Company’s continuing ability to produce solid, repeatable, and high quality earnings in a challenging environment. Diluted earnings per common share of $.60 were 33.3 percent higher than the prior year’s quarter and 15.4 percent higher than the prior quarter and were driven by revenue growth and improving credit costs. Our industry-leading performance metrics, including a return on average assets of 1.54 percent, a return on average common equity of 15.9 percent and an efficiency ratio of 51.6 percent, continue to move us closer to our long term normalized targets, demonstrating the through-the-cycle strength of our franchise and business model.

“Our business lines performed well this quarter despite on-going economic headwinds and a very modest demand for new lending. Although average total loans outstanding grew by just .6 percent over the first quarter, commercial and commercial real estate commitments increased significantly year-over-year and linked quarter, positioning us well for the eventual resurgence in demand for credit. Deposit growth in both our consumer and commercial business segments remained strong. Our fee revenue grew linked quarter by 6.7 percent, reflecting strong seasonal trends in payments, deposit service charges and treasury management fees, in addition to growth in commercial products revenue. Importantly, we achieved positive operating leverage year-over-year, as revenue growth outpaced the modest increase in noninterest expense. We also achieved positive operating leverage on a linked quarter basis, adjusted for the FCB gain recorded in the first quarter of this year.

“As expected, credit quality continued to improve during the second quarter, as evidenced by favorable trends in net charge-offs, nonperforming assets, delinquencies and criticized assets. These results, in addition to the expectation that credit quality will continue to improve, particularly in the consumer credit card category, led to a reserve release of $175 million in the current quarter, compared with a $50 million reserve release in the first quarter. Overall, we expect net charge-offs and nonperforming assets to be lower in the third quarter of 2011 and would expect to, once again, release reserves if the current trends and our longer term credit outlook remain positive.

“We continue to generate significant capital each quarter through earnings, and our capital position remains very strong. The Tier 1 common equity and Tier 1 capital ratios were 8.4 percent and 11.0 percent,

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July 20, 2011

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respectively, at June 30th. Additionally, our Tier 1 common ratio under anticipated Basel III guidelines was 8.1 percent at June 30th. We are awaiting final regulatory guidance as to the amount of capital our Company will be required to hold as a systemically important financial institution (“SIFI”). Regardless of the final amount of buffer assigned, we expect to easily meet the new guidelines through internal capital generation, allowing us to move forward with our long term goal of distributing a majority of our earnings to shareholders through dividends and share buybacks. In fact, we began to buy back stock late in the second quarter and expect to continue to repurchase shares throughout the remainder of the year.

“The banking industry continues to face a difficult and increasingly complex environment in which economic uncertainty, regulation and changes in customer and competitor behavior have an impact on how we allocate resources and manage operations, as well as on how we position ourselves for future earnings growth. Customers seek a strong and trusted banking partner and we continue to benefit from a “flight to quality” that is assigned to our franchise. As we move into the second half of 2011, I am especially proud of our Company’s performance and, importantly, the many dedicated employees that have faced the challenges presented, navigated the hurdles and continued to produce these exceptional results. I am confident that our strong business model, our adherence to prudent risk policies and our outstanding employee leaders will allow us to continue to invest, innovate, adapt and perform for the benefit of our customers, communities and shareholders.”

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U.S. Bancorp Reports Second Quarter 2011 Results

July 20, 2011

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INCOME STATEMENT HIGHLIGHTS Table 2

(Taxable-equivalent basis, $ in millions, except per-share data)	2Q 2011		1Q 2011		2Q 2010		Percent Change 2Q11 vs 1Q11			Percent Change 2Q11 vs 2Q10			YTD 2011		YTD 2010		Percent Change
Net interest income	$	2,544	$	2,507	$	2,409		1.5			5.6		$	5,051	$	4,812		5.0
Noninterest income		2,146		2,012		2,110		6.7			1.7			4,158		4,028		3.2
Total net revenue		4,690		4,519		4,519		3.8			3.8			9,209		8,840		4.2
Noninterest expense		2,425		2,314		2,377		4.8			2.0			4,739		4,513		5.0
Income before provision and taxes		2,265		2,205		2,142		2.7			5.7			4,470		4,327		3.3
Provision for credit losses		572		755		1,139		(24.2	)		(49.8	)		1,327		2,449		(45.8	)
Income before taxes		1,693		1,450		1,003		16.8			68.8			3,143		1,878		67.4
Taxable-equivalent adjustment		56		55		52		1.8			7.7			111		103		7.8
Applicable income taxes		458		366		199		25.1			nm			824		360		nm
Net income		1,179		1,029		752		14.6			56.8			2,208		1,415		56.0
Net (income) loss attributable to noncontrolling interests		24		17		14		41.2			71.4			41		20		nm
Net income attributable to U.S. Bancorp	$	1,203	$	1,046	$	766		15.0			57.0		$	2,249	$	1,435		56.7
Net income applicable to U.S. Bancorp common shareholders	$	1,167	$	1,003	$	862		16.4			35.4		$	2,170	$	1,510		43.7
Diluted earnings per common share	$	.60	$	.52	$	.45		15.4			33.3		$	1.12	$	.79		41.8

Net income attributable to U.S. Bancorp for the second quarter of 2011 was $437 million (57.0 percent) higher than the second quarter of 2010 and $157 million (15.0 percent) higher than the first quarter of 2011. The increase in net income year-over-year and on a linked quarter basis was principally the result of growth in total net revenue, driven by increases 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.

Total net revenue on a taxable-equivalent basis for the second quarter of 2011 was $4,690 million; $171 million (3.8 percent) higher than the second quarter of 2010, reflecting a 5.6 percent increase in net interest income and a 1.7 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 and continued growth in lower cost core deposit funding. Noninterest income increased year-over-year, primarily due to higher payments-related revenue and commercial products revenue, as well as lower net securities losses. Total net revenue on a taxable-equivalent basis was $171 million (3.8 percent) higher on a linked quarter basis, due to a 1.5 percent increase in net interest income and a 6.7 percent increase in total noninterest income driven by higher

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July 20, 2011

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payments-related revenue, deposit services charges, commercial products revenue and mortgage banking revenue, partially offset by the FCB gain recorded in the first quarter of 2011.

Total noninterest expense in the second quarter of 2011 was $2,425 million; $48 million (2.0 percent) higher than the second quarter of 2010 and $111 million (4.8 percent) higher than the first quarter of 2011. The increase in total noninterest expense year-over-year was primarily due to higher compensation and employee benefits expense. The increase in total noninterest expense on a linked quarter basis was principally due to higher compensation and marketing and business development expense, as well as other expense, including higher FDIC deposit insurance expense and costs related to investments in affordable housing and other tax-advantaged projects.

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 second quarter of 2011 was $572 million, $183 million lower than the first quarter of 2011 and $567 million lower than the second quarter of 2010. The provision for credit losses was $175 million lower than net charge-offs in the second quarter of 2011. In the first quarter of 2011, the provision for credit losses was $50 million lower than net charge-offs, while in the second quarter of 2010, it exceeded net charge-offs by $25 million. Net charge-offs in the second quarter of 2011 were $747 million, compared with $805 million in the first quarter of 2011, and $1,114 million in the second quarter of 2010. Given current economic conditions, the Company expects the level of net charge-offs to continue to trend lower in the third quarter of 2011.

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 $3,262 million at June 30, 2011, $3,479 million at March 31, 2011, and $3,734 million at June 30, 2010. The decline on a linked quarter and year-over-year basis was led by reductions in nonperforming construction and land development assets, as the Company continued to resolve and reduce exposure to these problem assets, in addition to improvement in other commercial portfolios, reflecting the stabilizing economy. However, there is continued stress in the commercial and residential mortgage portfolios, due to the overall duration of the economic slowdown. Covered nonperforming assets were $1,389 million at June 30, 2011, $1,541 million at March 31, 2011, and $2,151 million at June 30, 2010. 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 ratio of the allowance for credit losses to period-end loans, excluding covered loans, was

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2.83 percent at June 30, 2011, compared with 2.97 percent at March 31, 2011, and 3.18 percent at June 30, 2010. The ratio of the allowance for credit losses to period-end loans, including covered loans, was 2.66 percent at June 30, 2011, compared with 2.78 percent at March 31, 2011, and 2.89 percent at June 30, 2010. The Company expects total nonperforming assets to trend lower in the third quarter of 2011.

NET INTEREST INCOME Table 3

(Taxable-equivalent basis; $ in millions)	2Q 2011			1Q 2011			2Q 2010			Change 2Q11 vs 1Q11			Change 2Q11 vs 2Q10			YTD 2011			YTD 2010			Change
Components of net interest income
Income on earning assets	$	3,177		$	3,157		$	3,049		$	20		$	128		$	6,334		$	6,095		$	239
Expense on interest-bearing liabilities		633			650			640			(17	)		(7	)		1,283			1,283			—
Net interest income	$	2,544		$	2,507		$	2,409		$	37		$	135		$	5,051		$	4,812		$	239
Average yields and rates paid
Earning assets yield		4.59	%		4.65	%		4.94	%		(.06	)%		(.35	)%		4.62	%		4.94	%		(.32	)%
Rate paid on interest-bearing liabilities		1.14			1.18			1.25			(.04	)		(.11	)		1.16			1.24			(.08	)
Gross interest margin		3.45	%		3.47	%		3.69	%		(.02	)%		(.24	)%		3.46	%		3.70	%		(.24	)%
Net interest margin		3.67	%		3.69	%		3.90	%		(.02	)%		(.23	)%		3.68	%		3.90	%		(.22	)%
Average balances
Investment securities (a)	$	62,955		$	56,405		$	47,140		$	6,550		$	15,815		$	59,698		$	46,678		$	13,020
Loans		198,810			197,570			191,161			1,240			7,649			198,194			192,015			6,179
Earning assets		277,571			273,940			247,446			3,631			30,125			275,766			248,133			27,633
Interest-bearing liabilities		221,881			223,886			205,929			(2,005	)		15,952			222,878			207,724			15,154
Net free funds (b)		55,690			50,054			41,517			5,636			14,173			52,888			40,409			12,479

(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 second quarter of 2011 was $2,544 million, compared with $2,409 million in the second quarter of 2010, an increase of $135 million (5.6 percent). The increase was principally the result of growth in average earning assets and growth in lower cost core deposit funding. Average earning assets were $30.1 billion (12.2 percent) higher than the second quarter of 2010, driven by increases of $15.8 billion (33.5 percent) in average investment securities, $7.6 billion (4.0 percent) in average loans and $7.6 billion in average other earning assets, which included cash balances held at the Federal Reserve. Net interest income increased $37 million (1.5 percent) on a linked quarter basis, due to

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growth in average earning assets, largely in lower yielding investment securities. The net interest margin was 3.67 percent in the second quarter of 2011, compared with 3.90 percent in the second quarter of 2010, and 3.69 percent in the first quarter of 2011. The decline in the net interest margin year-over-year primarily reflected higher balances in lower yielding investment securities and growth in cash balances held at the Federal Reserve, compared with the second quarter of 2010. On a linked quarter basis, the unfavorable net interest margin impact of the continued growth in lower yielding investment securities was partially offset by a decline in the cash balances held at the Federal Reserve.

AVERAGE LOANS Table 4

($ in millions)	2Q 2011		1Q 2011		2Q 2010		Percent Change 2Q11 vs 1Q11			Percent Change 2Q11 vs 2Q10			YTD 2011		YTD 2010		Percent Change
Commercial	$	44,135	$	42,683	$	40,095		3.4			10.1		$	43,413	$	40,461		7.3
Lease financing		5,919		6,030		6,245		(1.8	)		(5.2	)		5,974		6,344		(5.8	)
Total commercial		50,054		48,713		46,340		2.8			8.0			49,387		46,805		5.5
Commercial mortgages		28,429		27,709		25,606		2.6			11.0			28,071		25,526		10.0
Construction and development		7,070		7,470		8,558		(5.4	)		(17.4	)		7,269		8,627		(15.7	)
Total commercial real estate		35,499		35,179		34,164		.9			3.9			35,340		34,153		3.5
Residential mortgages		32,734		31,777		26,821		3.0			22.0			32,258		26,616		21.2
Credit card		15,884		16,124		16,329		(1.5	)		(2.7	)		16,004		16,348		(2.1	)
Retail leasing		4,808		4,647		4,364		3.5			10.2			4,728		4,437		6.6
Home equity and second mortgages		18,634		18,801		19,332		(.9	)		(3.6	)		18,717		19,367		(3.4	)
Other retail		24,498		24,691		23,357		(.8	)		4.9			24,594		23,350		5.3
Total retail		63,824		64,263		63,382		(.7	)		.7			64,043		63,502		.9
Total loans, excluding covered loans		182,111		179,932		170,707		1.2			6.7			181,028		171,076		5.8
Covered loans		16,699		17,638		20,454		(5.3	)		(18.4	)		17,166		20,939		(18.0	)
Total loans	$	198,810	$	197,570	$	191,161		.6			4.0		$	198,194	$	192,015		3.2

Total average loans were $7.6 billion (4.0 percent) higher in the second quarter of 2011 than the second quarter of 2010, driven by growth in residential mortgages (22.0 percent), total commercial loans (8.0 percent), total commercial real estate loans (3.9 percent) and total retail loans (.7 percent). These increases were partially offset by an 18.4 percent decline in average covered loans. Total average loans, excluding covered loans, were higher by 6.7 percent year-over-year. Total average loans were $1.2 billion (.6 percent) higher in the second quarter of 2011 than the first quarter of 2011, as increases in the majority of loan

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U.S. Bancorp Reports Second Quarter 2011 Results

July 20, 2011

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categories, including residential mortgages (3.0 percent), total commercial loans (2.8 percent), and total commercial real estate loans (.9 percent) were partially offset by lower covered loans (5.3 percent) and total retail loans (.7 percent). Excluding covered loans, total average loans grew by 1.2 percent on a linked quarter basis. The increases were driven by demand for loans and lines by new and existing credit-worthy borrowers and the impact of the FCB acquisition.

Average investment securities in the second quarter of 2011 were $15.8 billion (33.5 percent) higher year-over-year and $6.6 billion (11.6 percent) higher than the prior quarter. The increases over the prior year and linked quarter were primarily due to purchases of U.S. Treasury and government agency-backed securities, as the Company continued to move liquidity on-balance sheet.

AVERAGE DEPOSITS Table 5

($ in millions)	2Q 2011		1Q 2011		2Q 2010		Percent Change 2Q11 vs 1Q11			Percent Change 2Q11 vs 2Q10			YTD 2011		YTD 2010		Percent Change
Noninterest-bearing deposits	$	48,721	$	44,189	$	39,917		10.3			22.1		$	46,467	$	38,964		19.3
Interest-bearing savings deposits
Interest checking		43,334		42,645		39,503		1.6			9.7			42,991		39,747		8.2
Money market savings		45,014		45,649		40,256		(1.4	)		11.8			45,330		40,577		11.7
Savings accounts		26,522		25,330		20,035		4.7			32.4			25,929		19,038		36.2
Total of savings deposits		114,870		113,624		99,794		1.1			15.1			114,250		99,362		15.0
Time certificates of deposit less than $100,000		15,368		15,264		16,980		.7			(9.5	)		15,316		17,654		(13.2	)
Time deposits greater than $100,000		30,452		31,228		26,627		(2.5	)		14.4			30,838		26,947		14.4
Total interest-bearing deposits		160,690		160,116		143,401		.4			12.1			160,404		143,963		11.4
Total deposits	$	209,411	$	204,305	$	183,318		2.5			14.2		$	206,871	$	182,927		13.1

Average total deposits for the second quarter of 2011 were $26.1 billion (14.2 percent) higher than the second quarter of 2010. Noninterest-bearing deposits increased $8.8 billion (22.1 percent) year-over-year, largely due to growth in Wholesale Banking and Consumer and Small Business Banking average balances. Average total savings deposits were $15.1 billion (15.1 percent) higher year-over-year, the result of growth in corporate trust balances, including the impact of the December 30, 2010, acquisition of the securitization trust administration business of Bank of America, N.A. (“securitization trust acquisition”), and Consumer and Small Business Banking average balances. Average time certificates of deposit less than $100,000 were $1.6 billion (9.5 percent) lower year-over-year, reflecting maturities and fewer renewals given the current

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July 20, 2011

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rate environment. Time deposits greater than $100,000 increased by $3.8 billion (14.4 percent), principally due to higher average balances in Wholesale Banking and the positive impact from the securitization trust and FCB acquisitions.

Average total deposits increased $5.1 billion (2.5 percent) over the first quarter of 2011. Noninterest-bearing deposits increased $4.5 billion (10.3 percent) with average balance increases across a majority of the business lines. Total average savings deposits increased $1.2 billion (1.1 percent) on a linked quarter basis due to higher Consumer and Small Business Banking and institutional and corporate trust balances, partially offset by a decline in Wholesale Banking balances. Average time deposits less than $100,000 remained relatively flat. Average time deposits over $100,000 were $.8 billion (2.5 percent) lower on a linked quarter basis, reflecting maturities and wholesale funding decisions.

NONINTEREST INCOME Table 6

($ in millions)	2Q 2011			1Q 2011			2Q 2010			Percent Change 2Q11 vs 1Q11			Percent Change 2Q11 vs 2Q10			YTD 2011			YTD 2010			Percent Change
Credit and debit card revenue	$	286		$	267		$	266			7.1			7.5		$	553		$	524			5.5
Corporate payment products revenue		185			175			178			5.7			3.9			360			346			4.0
Merchant processing services		338			301			320			12.3			5.6			639			612			4.4
ATM processing services		114			112			108			1.8			5.6			226			213			6.1
Trust and investment management fees		258			256			267			.8			(3.4	)		514			531			(3.2	)
Deposit service charges		162			143			199			13.3			(18.6	)		305			406			(24.9	)
Treasury management fees		144			137			145			5.1			(.7	)		281			282			(.4	)
Commercial products revenue		218			191			205			14.1			6.3			409			366			11.7
Mortgage banking revenue		239			199			243			20.1			(1.6	)		438			443			(1.1	)
Investment products fees and commissions		35			32			30			9.4			16.7			67			55			21.8
Securities gains (losses), net		(8	)		(5	)		(21	)		(60.0	)		61.9			(13	)		(55	)		76.4
Other		175			204			170			(14.2	)		2.9			379			305			24.3
Total noninterest income	$	2,146		$	2,012		$	2,110			6.7			1.7		$	4,158		$	4,028			3.2

Noninterest Income

Second quarter noninterest income was $2,146 million; $36 million (1.7 percent) higher than the second quarter of 2010 and $134 million (6.7 percent) higher than the first quarter of 2011. Year-over-year, noninterest income benefited from payments-related revenues, which were $45 million (5.9 percent) higher, largely due to increased transaction volumes, and a $13 million (6.3 percent) increase in commercial products revenue, attributable to higher standby letters of credit fees, commercial loan fees and commercial

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U.S. Bancorp Reports Second Quarter 2011 Results

July 20, 2011

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leasing revenue. ATM processing services income increased $6 million (5.6 percent) and investment products fees and commissions increased $5 million (16.7 percent) due to business initiatives, and securities gains (losses) improved by $13 million (61.9 percent). In addition, other income increased $5 million (2.9 percent) as higher retail lease residual valuation income was partially offset by a gain related to the Company’s investment in Visa Inc. (NYSE:V) (“Visa Gain”) in the second quarter of 2010. Offsetting these positive variances was a decrease in deposit service charges of $37 million (18.6 percent), as the result of Company-initiated and regulatory revisions to overdraft fee policies, partially offset by core account growth. Trust and investment management fees decreased $9 million (3.4 percent), primarily due to the transfer of the long-term asset management business to Nuveen Investments in the fourth quarter of 2010. This decline was partially offset by the positive impact of the securitization trust acquisition and improved market conditions.

Noninterest income was $134 million (6.7 percent) higher in the second quarter of 2011 than the first quarter of 2011. Payments-related revenue increased $66 million (8.9 percent), primarily driven by higher transaction volumes. Deposit service charges and treasury management fees increased $19 million (13.3 percent) and $7 million (5.1 percent), respectively, on a linked quarter basis principally due to seasonally higher transaction volumes. Commercial products revenue was $27 million (14.1 percent) higher than the first quarter of 2011, largely due to higher syndication and other capital markets fees. Mortgage banking revenue increased $40 million (20.1 percent), due to a higher net valuation of mortgage servicing rights (“MSRs”) and higher origination and sales and servicing revenue. Other income was lower by $29 million (14.2 percent) on a linked quarter basis principally due to the FCB gain in the first quarter of 2011, partially offset by higher customer-related derivative revenue and retail lease residual valuation income.

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U.S. Bancorp Reports Second Quarter 2011 Results

July 20, 2011

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NONINTEREST EXPENSE Table 7

($ in millions)	2Q 2011		1Q 2011		2Q 2010		Percent Change 2Q11 vs 1Q11			Percent Change 2Q11 vs 2Q10			YTD 2011		YTD 2010		Percent Change
Compensation	$	1,004	$	959	$	946		4.7			6.1		$	1,963	$	1,807		8.6
Employee benefits		210		230		172		(8.7	)		22.1			440		352		25.0
Net occupancy and equipment		249		249		226		—			10.2			498		453		9.9
Professional services		82		70		73		17.1			12.3			152		131		16.0
Marketing and business development		90		65		86		38.5			4.7			155		146		6.2
Technology and communications		189		185		186		2.2			1.6			374		371		.8
Postage, printing and supplies		76		74		75		2.7			1.3			150		149		.7
Other intangibles		75		75		91		—			(17.6	)		150		188		(20.2	)
Other		450		407		522		10.6			(13.8	)		857		916		(6.4	)
Total noninterest expense	$	2,425	$	2,314	$	2,377		4.8			2.0		$	4,739	$	4,513		5.0

Noninterest Expense

Noninterest expense in the second quarter of 2011 totaled $2,425 million, an increase of $48 million (2.0 percent) over the second quarter of 2010, and a $111 million (4.8 percent) increase over the first quarter of 2011. The increase in noninterest expense over the same quarter of last year was principally due to increased compensation, employee benefits and net occupancy and equipment expense, partially offset by a decrease in other expense. Compensation and employee benefits expense increased over the prior year by $58 million (6.1 percent) and $38 million (22.1 percent), respectively. Compensation expense increased primarily because of branch expansion and other business initiatives and merit increases. Employee benefits expense increased due to higher pension and medical costs and the impact of additional staff. Net occupancy and equipment expense increased $23 million (10.2 percent) year-over-year largely due to business expansion and technology initiatives. Professional services expense was $9 million (12.3 percent) higher year-over-year, due to technology-related and other projects across multiple business lines. These increases were partially offset by a decrease in other intangibles expense of $16 million (17.6 percent), compared with the prior year, due to the reduction or completion of the amortization of certain intangibles. Other expense was lower by $72 million (13.8 percent), due in part to debt extinguishment costs recorded in the second quarter of 2010 for the exchange of the income trust securities. In addition, costs related to mortgage servicing, other real estate owned, acquisition integration, insurance and litigation matters and investments in

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July 20, 2011

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affordable housing and other tax-advantaged projects were lower year-over-year. These decreases were partially offset by an increase in FDIC deposit insurance expense.

Noninterest expense was $111 million (4.8 percent) higher than the seasonally low first quarter of 2011. Compensation expense increased $45 million (4.7 percent), principally due to additions to staff, annual merit increases and higher incentives related to the Company’s improved financial results. Professional services and marketing and business development expenses were higher on a linked quarter basis by $12 million (17.1 percent) and $25 million (38.5 percent), respectively, due to the timing of payments-related initiatives and additional costs related to product promotions, higher legal costs and a contribution to the Company’s charitable foundation. In addition, other expense was $43 million (10.6 percent) higher, primarily due to higher costs related to investments in affordable housing and other tax-advantaged projects, FDIC deposit insurance and litigation and other insurance matters. These increases were partially offset by a $20 million (8.7 percent) reduction in employee benefits expense primarily due to seasonally lower employee payroll taxes.

Provision for Income Taxes

The provision for income taxes for the second quarter of 2011 resulted in a tax rate on a taxable-equivalent basis of 30.4 percent (effective tax rate of 28.0 percent), compared with 25.0 percent (effective tax rate of 20.9 percent) in the second quarter of 2010 and 29.0 percent (effective tax rate of 26.2 percent) in the first quarter of 2011. The increase in the effective tax rate primarily reflected the marginal impact of higher pretax earnings.

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U.S. Bancorp Reports Second Quarter 2011 Results

July 20, 2011

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ALLOWANCE FOR CREDIT LOSSES Table 8

($ in millions)	2Q 2011			1Q 2011		4Q 2010		3Q 2010		2Q 2010
Balance, beginning of period	$	5,498		$	5,531	$	5,540	$	5,536	$	5,439
Net charge-offs
Commercial		83			125		117		153		223
Lease financing		13			14		17		18		22
Total commercial		96			139		134		171		245
Commercial mortgages		64			40		90		113		71
Construction and development		100			85		129		94		156
Total commercial real estate		164			125		219		207		227
Residential mortgages		119			129		131		132		138
Credit card		216			247		275		296		317
Retail leasing		—			1		1		2		4
Home equity and second mortgages		76			81		83		79		79
Other retail		71			81		91		101		99
Total retail		363			410		450		478		499
Total net charge-offs, excluding covered loans		742			803		934		988		1,109
Covered loans		5			2		3		7		5
Total net charge-offs		747			805		937		995		1,114
Provision for credit losses		572			755		912		995		1,139
Net change for credit losses to be reimbursed by the FDIC		(15	)		17		16		4		72
Balance, end of period	$	5,308		$	5,498	$	5,531	$	5,540	$	5,536
Components
Allowance for loan losses, excluding losses to be reimbursed by the FDIC	$	4,977		$	5,161	$	5,218	$	5,245	$	5,248
Allowance for credit losses to be reimbursed by the FDIC		94			109		92		76		72
Liability for unfunded credit commitments		237			228		221		219		216
Total allowance for credit losses	$	5,308		$	5,498	$	5,531	$	5,540	$	5,536
Gross charge-offs	$	850		$	899	$	1,035	$	1,069	$	1,186
Gross recoveries	$	103		$	94	$	98	$	74	$	72
Allowance for credit losses as a percentage of
Period-end loans, excluding covered loans		2.83			2.97		3.03		3.10		3.18
Nonperforming loans, excluding covered loans		188			180		192		181		168
Nonperforming assets, excluding covered assets		159			154		162		153		146
Period-end loans		2.66			2.78		2.81		2.85		2.89
Nonperforming loans		140			133		136		133		120
Nonperforming assets		114			110		110		102		94

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July 20, 2011

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Credit Quality

Net charge-offs and nonperforming assets declined on a linked quarter and year-over-year basis as economic conditions stabilized. The allowance for credit losses was $5,308 million at June 30, 2011, compared with $5,498 million at March 31, 2011, and $5,536 million at June 30, 2010. Total net charge-offs in the second quarter of 2011 were $747 million, compared with $805 million in the first quarter of 2011, and $1,114 million in the second quarter of 2010. The decrease in total net charge-offs was principally due to improvement in the commercial lending, credit card, residential mortgage and other retail portfolios, partially offset by an increase in commercial real estate charge-offs, compared with the first quarter of 2011. The Company recorded $572 million of provision for credit losses, $175 million less than net charge-offs, during the second quarter of 2011. The allowance for credit losses reimbursable by the FDIC was lower than the prior quarter by $15 million.

Commercial and commercial real estate loan net charge-offs decreased to $260 million in the second quarter of 2011 (1.22 percent of average loans outstanding), compared with $264 million (1.28 percent of average loans outstanding) in the first quarter of 2011 and $472 million (2.35 percent of average loans outstanding) in the second quarter of 2010. The decrease primarily reflected improvement in the commercial lending portfolio, partially offset by an increase in commercial real estate charge-offs.

Residential mortgage loan net charge-offs decreased to $119 million (1.46 percent of average loans outstanding) in the second quarter of 2011, compared with $129 million (1.65 percent of average loans outstanding) in the first quarter of 2011 and $138 million (2.06 percent of average loans outstanding) in the second quarter of 2010. Total retail loan net charge-offs were $363 million (2.28 percent of average loans outstanding) in the second quarter of 2011, lower than the $410 million (2.59 percent of average loans outstanding) in the first quarter of 2011 and the $499 million (3.16 percent of average loans outstanding) in the second quarter of 2010.

The ratio of the allowance for credit losses to period-end loans was 2.66 percent (2.83 percent excluding covered loans) at June 30, 2011, compared with 2.78 percent (2.97 percent excluding covered loans) at March 31, 2011, and 2.89 percent (3.18 percent excluding covered loans) at June 30, 2010. The ratio of the allowance for credit losses to nonperforming loans was 140 percent (188 percent excluding covered loans) at June 30, 2011, compared with 133 percent (180 percent excluding covered loans) at March 31, 2011, and 120 percent (168 percent excluding covered loans) at June 30, 2010.

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U.S. Bancorp Reports Second Quarter 2011 Results

July 20, 2011

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CREDIT RATIOS Table 9

(Percent)	2Q 2011		1Q 2011		4Q 2010		3Q 2010		2Q 2010
Net charge-offs ratios (a)
Commercial		.75		1.19		1.11		1.49		2.23
Lease financing		.88		.94		1.12		1.18		1.41
Total commercial		.77		1.16		1.11		1.45		2.12
Commercial mortgages		.90		.59		1.33		1.72		1.11
Construction and development		5.67		4.61		6.54		4.56		7.31
Total commercial real estate		1.85		1.44		2.51		2.40		2.67
Residential mortgages		1.46		1.65		1.75		1.88		2.06
Credit card (b)		5.45		6.21		6.65		7.11		7.79
Retail leasing		—		.09		.09		.19		.37
Home equity and second mortgages		1.64		1.75		1.72		1.62		1.64
Other retail		1.16		1.33		1.45		1.65		1.70
Total retail		2.28		2.59		2.75		2.95		3.16
Total net charge-offs, excluding covered loans		1.63		1.81		2.09		2.26		2.61
Covered loans		.12		.05		.06		.14		.10
Total net charge-offs		1.51		1.65		1.90		2.05		2.34
Delinquent loan ratios - 90 days or more past due excluding nonperforming loans (c)
Commercial		.09		.12		.13		.19		.21
Commercial real estate		.01		.02		—		.05		.09
Residential mortgages		1.13		1.33		1.63		1.75		1.85
Retail		.60		.71		.81		.85		.95
Total loans, excluding covered loans		.44		.52		.61		.66		.72
Covered loans		5.66		5.83		6.04		4.96		4.91
Total loans		.87		.99		1.11		1.08		1.16
Delinquent loan ratios - 90 days or more past due including nonperforming loans (c)
Commercial		.86		1.12		1.37		1.67		1.89
Commercial real estate		3.85		4.17		3.73		4.20		4.84
Residential mortgages		3.16		3.45		3.70		3.90		4.08
Retail		1.11		1.23		1.26		1.26		1.32
Total loans, excluding covered loans		1.94		2.17		2.19		2.37		2.61
Covered loans		12.01		12.51		12.94		11.12		11.72
Total loans		2.77		3.07		3.17		3.23		3.56

(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 5.62 percent for the second quarter of 2011, 6.45 percent for the first quarter of 2011, 7.21 percent for the fourth quarter of 2010, 7.84 percent for the third quarter of 2010 and 8.53 percent for the second quarter of 2010.

(c) Ratios are expressed as a percent of ending loan balances.

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July 20, 2011

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ASSET QUALITY Table 10

		00000000		00000000		00000000		00000000		00000000
($ in millions)	Jun 30 2011		Mar 31 2011		Dec 31 2010		Sep 30 2010		Jun 30 2010
Nonperforming loans
Commercial	$	349	$	439	$	519	$	594	$	669
Lease financing		43		54		78		111		115
Total commercial		392		493		597		705		784
Commercial mortgages		650		635		545		624		601
Construction and development		714		835		748		799		1,013
Total commercial real estate		1,364		1,470		1,293		1,423		1,614
Residential mortgages		671		685		636		614		607
Retail		329		330		293		262		237
Total nonperforming loans, excluding covered loans		2,756		2,978		2,819		3,004		3,242
Covered loans		1,041		1,151		1,244		1,172		1,360
Total nonperforming loans		3,797		4,129		4,063		4,176		4,602
Other real estate (a)		489		480		511		537		469
Covered other real estate (a)		348		390		453		679		791
Other nonperforming assets		17		21		21		22		23
Total nonperforming assets (b)	$	4,651	$	5,020	$	5,048	$	5,414	$	5,885
Total nonperforming assets, excluding covered assets	$	3,262	$	3,479	$	3,351	$	3,563	$	3,734
Accruing loans 90 days or more past due, excluding covered loans	$	804	$	949	$	1,094	$	1,165	$	1,239
Accruing loans 90 days or more past due	$	1,732	$	1,954	$	2,184	$	2,110	$	2,221
Restructured loans that continue to accrue interest (c)	$	2,532	$	2,431	$	2,207	$	2,180	$	2,112
Nonperforming assets to loans plus ORE, excluding covered assets (%)		1.77		1.92		1.87		2.02		2.17
Nonperforming assets to loans plus ORE (%)		2.32		2.52		2.55		2.76		3.05

(a) Includes equity investments in entities 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 June 30, 2011, totaled $4,651 million, compared with $5,020 million at March 31, 2011, and $5,885 million at June 30, 2010. Total nonperforming assets at June 30, 2011, included $1,389 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 2.32 percent (1.77 percent excluding covered assets) at June 30, 2011, compared with 2.52 percent (1.92 percent excluding covered assets) at March 31, 2011, and 3.05 percent (2.17 percent excluding covered assets) at June 30, 2010. The decrease in nonperforming assets, excluding covered assets, compared with a year ago was driven primarily by the construction and land development portfolios, as well as by

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U.S. Bancorp Reports Second Quarter 2011 Results

July 20, 2011

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improvement in other commercial portfolios. Given current economic conditions, the Company expects nonperforming assets to trend lower in the third quarter of 2011.

Accruing loans 90 days or more past due were $1,732 million ($804 million excluding covered loans) at June 30, 2011, compared with $1,954 million ($949 million excluding covered loans) at March 31, 2011, and $2,221 million ($1,239 million excluding covered loans) at June 30, 2010. Restructured loans that continue to accrue interest increased compared with the first quarter of 2011 and the second quarter of 2010, primarily due to the impact of loan modifications for certain real estate-related 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 acquisitions.

CAPITAL POSITION Table 11

($ in millions)	Jun 30 2011			Mar 31 2011			Dec 31 2010			Sep 30 2010			Jun 30 2010
Total U.S. Bancorp shareholders' equity	$	32,452		$	30,507		$	29,519		$	29,151		$	28,169
Tier 1 capital		27,795			26,821			25,947			24,908			24,021
Total risk-based capital		35,109			34,198			33,033			32,265			31,890
Tier 1 capital ratio		11.0	%		10.8	%		10.5	%		10.3	%		10.1	%
Total risk-based capital ratio		13.9			13.8			13.3			13.3			13.4
Leverage ratio		9.2			9.0			9.1			9.0			8.8
Tier 1 common equity ratio		8.4			8.2			7.8			7.6			7.4
Tangible common equity ratio		6.5			6.3			6.0			6.2			6.0
Tangible common equity as a percent of risk-weighted assets		8.0			7.6			7.2			7.2			6.9

Total U.S. Bancorp shareholders’ equity was $32.5 billion at June 30, 2011, compared with $30.5 billion at March 31, 2011, and $28.2 billion at June 30, 2010. The Tier 1 capital ratio was 11.0 percent at June 30, 2011, compared with 10.8 percent at March 31, 2011, and 10.1 percent at June 30, 2010. The Tier 1 common equity ratio was 8.4 percent at June 30, 2011, compared with 8.2 percent at March 31, 2011, and 7.4 percent at June 30, 2010. The tangible common equity ratio was 6.5 percent at June 30, 2011, compared with 6.3 percent at March 31, 2011, and 6.0 percent at June 30, 2010. All regulatory ratios continue to be in excess of “well-capitalized” requirements. Additionally, the Tier 1 common ratio under anticipated Basel III guidelines was 8.1 percent as of June 30, 2011, compared with 7.7 percent as of March 31, 2011.

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July 20, 2011

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COMMON SHARES Table 12

(Millions)	2Q 2011			1Q 2011			4Q 2010		3Q 2010		2Q 2010
Beginning shares outstanding		1,927			1,921			1,918		1,917		1,916
Shares issued for stock option and stock purchase plans, acquisitions and other corporate purposes		—			7			3		1		1
Shares repurchased		(2	)		(1	)		—		—		—
Ending shares outstanding		1,925			1,927			1,921		1,918		1,917

LINE OF BUSINESS FINANCIAL PERFORMANCE (a) Table 13

	Net Income Attributable to U.S. Bancorp						Percent Change						Net Income Attributable to U.S. Bancorp							2Q 2011 Earnings Composition
($ in millions) Business Line	2Q 2011		1Q 2011		2Q 2010		2Q11 vs 1Q11			2Q11 vs 2Q10			YTD 2011		YTD 2010		Percent Change
Wholesale Banking and Commercial Real Estate	$	265	$	208	$	96		27.4			nm		$	473	$	109		nm			22	%
Consumer and Small Business Banking		192		139		152		38.1			26.3			331		309		7.1			16
Wealth Management and Securities Services		46		50		60		(8.0	)		(23.3	)		96		121		(20.7	)		4
Payment Services		364		290		182		25.5			nm			654		297		nm			30
Treasury and Corporate Support		336		359		276		(6.4	)		21.7			695		599		16.0			28
Consolidated Company	$	1,203	$	1,046	$	766		15.0			57.0		$	2,249	$	1,435		56.7			100	%

(a) preliminary data

Lines of Business

The Company’s major lines of business are Wholesale Banking and Commercial Real Estate, Consumer and Small Business Banking, Wealth Management and 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

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U.S. Bancorp Reports Second Quarter 2011 Results

July 20, 2011

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systems are enhanced, methods of evaluating performance or product lines change or business segments are realigned to better respond to the Company’s diverse customer base. During 2011, certain organization and methodology changes were made and, accordingly, prior period results were restated and presented on a comparable basis.

Wholesale Banking and Commercial Real Estate 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 and Commercial Real Estate contributed $265 million of the Company’s net income in the second quarter of 2011, compared with $96 million in the second quarter of 2010 and $208 million in the first quarter of 2011. Wholesale Banking and Commercial Real Estate’s net income increased $169 million over the same 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. Net interest income increased $35 million (7.1 percent) year-over-year primarily due to higher average loan and deposit balances and an increase in loan fees, partially offset by the impact of declining rates on the margin benefit from deposits. Total noninterest income increased $43 million (15.2 percent), mainly due to growth in commercial products revenue, including syndication and other capital markets fees, commercial leasing, foreign exchange and international trade revenue, and commercial loan and standby letters of credit fees. In addition, other revenue increased primarily due to higher equity investment revenue and improved investment-grade bond income. Total noninterest expense increased $24 million (7.9 percent) over a year ago, primarily due to higher compensation and employee benefits expense, FDIC deposit insurance expense and net shared services, partially offset by lower costs on other real estate owned. The provision for credit losses was $204 million (63.9 percent) lower year-over-year due to a reduction in net charge-offs.

Wholesale Banking and Commercial Real Estate’s contribution to net income in the second quarter of 2011 was $53 million (25.5 percent) higher than the first quarter of 2011. This improvement was due to higher total net revenue and a reduction in the provision for credit losses, partially offset by an increase in total noninterest expense. Total net revenue was higher by $49 million (6.1 percent). Net interest income was $16 million (3.1 percent) higher on a linked quarter basis, principally due to higher loans fees and average deposit balances, partially offset by the impact of declining rates on the margin benefit from deposits. A $33 million (11.3 percent) increase in total noninterest income was the result of higher commercial products revenue, primarily syndication and other capital markets fees, and an increase in

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U.S. Bancorp Reports Second Quarter 2011 Results

July 20, 2011

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treasury management revenue due to seasonally higher transaction volumes. Total noninterest expense increased by $28 million (9.4 percent), largely due to higher compensation and employee benefits expense, an increase in FDIC deposit insurance expense and net shared services expense. The provision for credit losses decreased $63 million (35.4 percent) on a linked quarter basis, due to lower net charge-offs and a decrease in the reserve allocation.

Consumer and Small Business 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 and Small Business Banking contributed $192 million of the Company’s net income in the second quarter of 2011, a $40 million (26.3 percent) increase from the second quarter of 2010, and a $53 million (38.1 percent) increase from the prior quarter. Within Consumer and Small Business Banking, the retail banking division reported a $38 million increase in its contribution from the same quarter of last year. The increase in the retail banking division’s contribution from the same period of 2010 was principally due to higher total net revenue and a lower provision for credit losses, partially offset by higher total noninterest expense. Retail banking’s total net revenue was 3.1 percent higher, compared with the second quarter of 2010, as an increase in net interest income was partially offset by a decline in total noninterest income. Net interest income increased 5.6 percent primarily due to higher loan and deposit volumes and an increase in loan fees, partially offset by the impact of lower rates on the margin benefit from deposits. Total noninterest income for the retail banking division decreased 2.0 percent from a year ago due to a reduction in deposit service charges, reflecting the impact of Company-initiated and regulatory revisions to overdraft fee policies, partially offset by core account growth and pricing changes. Total noninterest expense for the retail banking division in the second quarter of 2011 was 5.3 percent higher year-over-year, principally due to higher compensation and employee benefits expense, an increase in FDIC deposit insurance expense, higher net shared services costs and net occupancy and equipment expense related to business initiatives, partially offset by lower other intangibles expense and litigation costs. The provision for credit losses for the retail banking division decreased 17.2 percent on a year-over-year basis due to lower net charge-offs and a reduction in the reserve allocation. In the second quarter of 2011, the mortgage banking division’s contribution was $136 million, relatively flat, compared with the second quarter of 2010. The division’s 6.0 percent decrease in total noninterest expense was principally due to lower compensation and employee benefits expense and

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July 20, 2011

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mortgage servicing expense. The provision for credit losses decreased by 13.0 percent primarily due to lower net charge-offs. These favorable variances were partially offset by a 2.8 percent reduction in total net revenue principally due to lower mortgage origination and sales revenue.

Consumer and Small Business Banking’s contribution in the second quarter of 2011 was $53 million (38.1 percent) higher than the first quarter of 2011 due to higher total net revenue and a reduction in the provision for credit losses, partially offset by higher total noninterest expense. Within Consumer and Small Business Banking, the retail banking division’s contribution increased $37 million on a linked quarter basis. Total net revenue for the retail banking division increased 4.5 percent. Net interest income improved 2.0 percent due to higher average deposit balances and loan volumes and an increase in loan fees, partially offset by the impact of lower rates on the margin benefit from deposits. The retail banking division’s total noninterest income increased 10.6 percent, reflecting higher deposit services charges, due to seasonally higher transaction volumes, and improved retail lease residual valuation income. Total noninterest expense for the retail banking division increased 2.9 percent on a linked quarter basis due to higher compensation and employee benefits expense and increased net occupancy and equipment expense due to business initiatives. The provision for credit losses for the division decreased 6.7 percent due to a decrease in the reserve allocation, partially offset by higher commercial and commercial real estate net charge-offs. The contribution of the mortgage banking division increased 13.3 percent from the first quarter of 2011 due to higher total net revenue and declines in both total noninterest expense and the provision for credit losses. Total net revenue increased 2.4 percent due to an 18.2 percent increase in total noninterest income driven by a higher net valuation of MSRs and higher origination and sales and servicing revenue, partially offset by a 17.7 percent decrease in net interest income due to lower average mortgage loans held-for-sale balances. Total noninterest expense decreased 9.4 percent due to lower commission and contract labor expense. The mortgage banking division’s provision for credit losses decreased 13.0 percent on a linked quarter basis due to lower net charge-offs and a decrease in the reserve allocation.

Wealth Management and Securities Services provides private banking, financial advisory services, investment management, retail brokerage services, insurance, trust, custody and fund servicing through five businesses: Wealth Management, Corporate Trust Services, U.S. Bancorp Asset Management, Institutional Trust & Custody and Fund Services. Wealth Management and Securities Services contributed $46 million of the Company’s net income in the second quarter of 2011, a 23.3 percent decrease from the second quarter of 2010, and an 8.0 percent decrease from the first quarter of 2011. The decrease in the business line’s

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U.S. Bancorp Reports Second Quarter 2011 Results

July 20, 2011

Page 24

contribution, compared with the same quarter of 2010, was due to higher total noninterest expense, partially offset by an increase in total net revenue and a reduction in the provision for credit losses. Total net revenue increased by $2 million (.6 percent) year-over-year. Net interest income was higher by $8 million (10.3 percent), primarily due to higher average deposit balances, including the impact of the securitization trust acquisition. Total noninterest income decreased by $6 million (2.2 percent), compared with the second quarter of 2010. Trust and investment management fees declined, primarily due to the transfer of the long-term asset management business to Nuveen Investments, partially offset by the positive impact of the securitization trust acquisition and improved market conditions. Additionally, there was an increase in investment products fees and commissions due to increased sales volumes. Total noninterest expense increased by $32 million (12.4 percent), due to higher compensation and employee benefits and net shared services expense and the impact of the securitization trust acquisition, partially offset by a reduction in other intangibles expense and expenses related to the transfer to Nuveen Investments. The provision for credit losses was lower due to a decrease in the reserve allocation.

The business line’s contribution in the second quarter of 2011 was lower than the prior quarter by $4 million (8.0 percent). Total net revenue was relatively flat as a $3 million (3.4 percent) decrease in net interest income, driven by the impact of declining rates on the margin benefit from deposits, was offset by a $2 million (.7 percent) increase in total noninterest income due primarily to higher investment products fees and commissions. The provision for credit losses was $11 million lower than the prior quarter due to a decrease in the reserve allocation.

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 $364 million of the Company’s net income in the second quarter of 2011, an increase of $182 million over the same period of 2010, and an increase of $74 million (25.5 percent) over the prior quarter. The increase year-over-year was primarily due to a lower provision for credit losses and higher total net revenue, partially offset by an increase in total noninterest expense. Total net revenue increased $34 million (3.0 percent) year-over-year. Net interest income decreased $6 million (1.8 percent) due in large part to lower retail credit card average loan balances and loan fees, while total noninterest income increased $40 million (5.1 percent) year-over-year, primarily due to increased transaction volumes. Total noninterest expense increased $14 million (3.0 percent), driven by higher compensation and employee benefits expense and processing costs, partially offset by lower other intangibles expense. The provision for credit losses

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July 20, 2011

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decreased $269 million (75.1 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 second quarter of 2011 was $74 million (25.5 percent) higher than the first quarter of 2011, driven by a lower provision for credit losses and an increase in total net revenue, partially offset by higher total noninterest expense. Total net revenue was higher by $66 million (6.0 percent), compared with the first quarter of 2011, primarily due to a $70 million (9.2 percent) increase in total noninterest income driven by higher transaction volumes. Total noninterest expense increased $24 million (5.3 percent) on a linked quarter basis, principally due to the timing of marketing programs and an increase in compensation and employee benefits expense and processing costs. The provision for credit losses decreased $76 million (46.1 percent) due to lower net charge-offs and a reduction in the reserve allocation.

Treasury and Corporate Support includes the Company’s investment portfolios, most covered commercial and commercial real estate loans and related other real estate owned, funding, capital management, asset securitization, interest rate risk management, the net effect of transfer pricing related to average balances and the residual aggregate of expenses associated with corporate activities that are managed on a consolidated basis. Treasury and Corporate Support recorded net income of $336 million in the second quarter of 2011, compared with net income of $276 million in the second quarter of 2010 and net income of $359 million in the first quarter of 2011. Net interest income increased $46 million (10.5 percent) from the second quarter of 2010, reflecting the impact of wholesale funding decisions and the Company’s asset/liability position. Total noninterest income decreased by $21 million (40.4 percent) year-over-year principally due to the Visa Gain recorded in the second quarter of 2010, partially offset by lower net securities losses. Total noninterest expense decreased $65 million (25.1 percent) due to a lower net shared services allocation and the impact of the debt extinguishment expense recorded in the second quarter of 2010. In addition, acquisition integration expense, costs related to insurance and litigation matters and investments in affordable housing and other tax-advantaged projects were lower year-over-year. These favorable variances were partially offset by higher pension and professional services costs.

Net income in the second quarter of 2011 was lower on a linked quarter basis, principally due to lower total noninterest income and higher total noninterest expense. Total net revenue was lower than the first quarter of 2011 by $13 million (2.5 percent), largely due to the FCB gain recorded in the first quarter of 2011, partially offset by an 8.5 percent increase in net interest income reflecting the impact of wholesale

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U.S. Bancorp Reports Second Quarter 2011 Results

July 20, 2011

Page 26

funding decisions and the Company’s asset/liability position. The $28 million (16.9 percent) increase in total noninterest expense from the seasonally low first quarter of 2011 was primarily due to an increase in costs related to affordable housing and other tax-advantaged projects, professional services expense and a contribution to the Company’s 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.

On Wednesday, July 20, 2011, 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 75921940. 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, July 20th, and will run through Wednesday, July 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 75921940. 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 $321 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 3,086 banking offices in 25 states and 5,086 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp and its employees are dedicated to improving the communities they serve, for which the company earned the 2011 Spirit of America Award, the highest honor bestowed on a company by United Way. Visit U.S. Bancorp on the web at usbank.com.

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U.S. Bancorp Reports Second Quarter 2011 Results

July 20, 2011

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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. Continued 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, 2010, 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 using Basel I definition,

• Tier 1 common equity to risk-weighted assets using anticipated Basel III definition, and

• Tangible common equity to risk-weighted assets using Basel I definition.

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July 20, 2011

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 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 these measures.

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U.S. Bancorp

Consolidated Statement of Income

(Dollars and Shares in Millions, Except Per Share Data)	Three Months Ended June 30,						Six Months Ended June 30,
(Unaudited)	2011			2010			2011			2010
Interest Income
Loans	$	2,563		$	2,515		$	5,115		$	5,020
Loans held for sale		34			47			97			91
Investment securities		459			394			887			804
Other interest income		63			39			120			73
Total interest income		3,119			2,995			6,219			5,988
Interest Expense
Deposits		210			229			444			465
Short-term borrowings		131			137			264			265
Long-term debt		290			272			571			549
Total interest expense		631			638			1,279			1,279
Net interest income		2,488			2,357			4,940			4,709
Provision for credit losses		572			1,139			1,327			2,449
Net interest income after provision for credit losses		1,916			1,218			3,613			2,260
Noninterest Income
Credit and debit card revenue		286			266			553			524
Corporate payment products revenue		185			178			360			346
Merchant processing services		338			320			639			612
ATM processing services		114			108			226			213
Trust and investment management fees		258			267			514			531
Deposit service charges		162			199			305			406
Treasury management fees		144			145			281			282
Commercial products revenue		218			205			409			366
Mortgage banking revenue		239			243			438			443
Investment products fees and commissions		35			30			67			55
Securities gains (losses), net		(8	)		(21	)		(13	)		(55	)
Other		175			170			379			305
Total noninterest income		2,146			2,110			4,158			4,028
Noninterest Expense
Compensation		1,004			946			1,963			1,807
Employee benefits		210			172			440			352
Net occupancy and equipment		249			226			498			453
Professional services		82			73			152			131
Marketing and business development		90			86			155			146
Technology and communications		189			186			374			371
Postage, printing and supplies		76			75			150			149
Other intangibles		75			91			150			188
Other		450			522			857			916
Total noninterest expense		2,425			2,377			4,739			4,513
Income before income taxes		1,637			951			3,032			1,775
Applicable income taxes		458			199			824			360
Net income		1,179			752			2,208			1,415
Net (income) loss attributable to noncontrolling interests		24			14			41			20
Net income attributable to U.S. Bancorp	$	1,203		$	766		$	2,249		$	1,435
Net income applicable to U.S. Bancorp common shareholders	$	1,167		$	862		$	2,170		$	1,510
Earnings per common share	$	.61		$	.45		$	1.13		$	.79
Diluted earnings per common share	$	.60		$	.45		$	1.12		$	.79
Dividends declared per common share	$	.125		$	.050		$	.250		$	.100
Average common shares outstanding		1,921			1,912			1,920			1,911
Average diluted common shares outstanding		1,929			1,921			1,929			1,920

Page 29

U.S. Bancorp

Consolidated Ending Balance Sheet

(Dollars in Millions)	June 30, 2011			December 31, 2010			June 30, 2010
	(Unaudited)						(Unaudited)
Assets
Cash and due from banks	$	15,250		$	14,487		$	5,033
Investment securities
Held-to-maturity		13,280			1,469			590
Available-for-sale		52,299			51,509			47,777
Loans held for sale		3,543			8,371			4,912
Loans
Commercial		50,550			48,398			46,766
Commercial real estate		35,490			34,695			33,944
Residential mortgages		33,110			30,732			27,252
Retail		64,331			65,194			63,639
Total loans, excluding covered loans		183,481			179,019			171,601
Covered loans		16,401			18,042			19,983
Total loans		199,882			197,061			191,584
Less allowance for loan losses		(5,071	)		(5,310	)		(5,320	)
Net loans		194,811			191,751			186,264
Premises and equipment		2,529			2,487			2,257
Goodwill		8,950			8,954			9,002
Other intangible assets		3,266			3,213			3,068
Other assets		26,946			25,545			24,340
Total assets	$	320,874		$	307,786		$	283,243
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing	$	57,310		$	45,314		$	41,673
Interest-bearing		128,087			129,381			113,024
Time deposits greater than $100,000		29,486			29,557			28,426
Total deposits		214,883			204,252			183,123
Short-term borrowings		29,654			32,557			33,797
Long-term debt		32,830			31,537			29,137
Other liabilities		10,166			9,118			8,246
Total liabilities		287,533			277,464			254,303
Shareholders’ equity
Preferred stock		2,606			1,930			1,930
Common stock		21			21			21
Capital surplus		8,235			8,294			8,292
Retained earnings		28,701			27,005			25,367
Less treasury stock		(6,134	)		(6,262	)		(6,381	)
Accumulated other comprehensive income (loss)		(977	)		(1,469	)		(1,060	)
Total U.S. Bancorp shareholders’ equity		32,452			29,519			28,169
Noncontrolling interests		889			803			771
Total equity		33,341			30,322			28,940
Total liabilities and equity	$	320,874		$	307,786		$	283,243

Page 30

U.S. Bancorp

Non-Regulatory Capital Ratios

(Dollars in Millions, Unaudited)	June 30, 2011			March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010
Total equity	$	33,341		$	31,335		$	30,322		$	29,943		$	28,940
Preferred stock		(2,606	)		(1,930	)		(1,930	)		(1,930	)		(1,930	)
Noncontrolling interests		(889	)		(828	)		(803	)		(792	)		(771	)
Goodwill (net of deferred tax liability)		(8,300	)		(8,317	)		(8,337	)		(8,429	)		(8,425	)
Intangible assets, other than mortgage servicing rights		(1,277	)		(1,342	)		(1,376	)		(1,434	)		(1,525	)
Tangible common equity (a)		20,269			18,918			17,876			17,358			16,289
Tier 1 capital, determined in accordance with prescribed regulatory requirements using Basel I definition		27,795			26,821			25,947			24,908			24,021
Trust preferred securities		(3,267	)		(3,949	)		(3,949	)		(3,949	)		(3,949	)
Preferred stock		(2,606	)		(1,930	)		(1,930	)		(1,930	)		(1,930	)
Noncontrolling interests, less preferred stock not eligible for Tier 1 capital		(695	)		(694	)		(692	)		(694	)		(694	)
Tier 1 common equity using Basel I definition (b)		21,227			20,248			19,376			18,335			17,448
Tier 1 capital, determined in accordance with prescribed regulatory requirements using anticipated Basel III definition		23,931			21,855
Preferred stock		(2,606	)		(1,930	)
Noncontrolling interests of real estate investment trusts		(667	)		(667	)
Tier 1 common equity using anticipated Basel III definition (c)		20,658			19,258
Total assets		320,874			311,462			307,786			290,654			283,243
Goodwill (net of deferred tax liability)		(8,300	)		(8,317	)		(8,337	)		(8,429	)		(8,425	)
Intangible assets, other than mortgage servicing rights		(1,277	)		(1,342	)		(1,376	)		(1,434	)		(1,525	)
Tangible assets (d)		311,297			301,803			298,073			280,791			273,293
Risk-weighted assets, determined in accordance with prescribed regulatory requirements using Basel I definition (e)		252,882	*		247,486			247,619			242,490			237,145
Risk-weighted assets using anticipated Basel III definition (f)		256,205	*		250,931
Ratios *
Tangible common equity to tangible assets (a)/(d)		6.5	%		6.3	%		6.0	%		6.2	%		6.0	%
Tier 1 common equity to risk-weighted assets using Basel I definition (b)/(e)		8.4			8.2			7.8			7.6			7.4
Tier 1 common equity to risk-weighted assets using anticipated Basel III definition (c)/(f)		8.1			7.7
Tangible common equity to risk-weighted assets (a)/(e)		8.0			7.6			7.2			7.2			6.9

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

Note: Anticipated Basel III definitions reflect adjustments for changes to the related elements as proposed in December 2010 by regulatory authorities.

Page 31

EX-99.2

U.S. Bancorp

2Q11 Earnings

Conference Call

U.S. Bancorp

2Q11 Earnings

Conference Call

July 20, 2011

Richard K. Davis

Chairman, President and CEO

Andy Cecere

Vice Chairman and CFO

Exhibit 99.2

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.  Continued

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, 2010, 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.

3

2Q11 Earnings

Conference Call

2Q11 Highlights

Net income of $1.2 billion; $0.60 per diluted common share

Total net revenue of $4.7 billion, up 3.8% vs. 2Q10

•

Net interest income growth of 5.6% vs. 2Q10

•

Noninterest income growth of 1.7% vs. 2Q10

Average loan growth of 4.0% (3.5% excluding acquisitions) vs. 2Q10 and

average loan growth of 0.6% (0.5% excluding acquisitions) vs. 1Q11

Strong average low cost deposit

1

growth of 17.1% (12.3% excluding

acquisitions) vs. 2Q10 and average low cost deposit growth of 3.7% vs. 1Q11

(3.5% excluding acquisitions)

Net charge-offs declined 7.2% vs. 1Q11 and nonperforming assets (excluding

covered assets) declined 6.2% vs. 1Q11

Capital generation continues to strengthen capital position

•

Tier

1

common

equity

ratio

of

8.4%

(8.1%

under

anticipated

Basel

III

guidelines)

•

Tier 1 capital ratio of 11.0%

1

Low cost deposits include noninterest-bearing, interest checking, money market and savings deposits

4

2Q11 Earnings

Conference Call

Performance Ratios

15.9%

14.5%

13.7%

12.8%

13.4%

11.8%*

1.54%

1.38%

1.31%

1.26%

1.09%

0%

5%

10%

15%

20%

2Q10

3Q10

4Q10

1Q11

2Q11

0%

1%

2%

3%

4%

51.6%

51.1%

52.5%

51.9%

52.4%

3.67%

3.69%

3.83%

3.91%

3.90%

30%

40%

50%

60%

70%

2Q10

3Q10

4Q10

1Q11

2Q11

1%

2%

3%

4%

5%

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 of $757 million)

5

2Q11 Earnings

Conference Call

2Q11 

1Q11 

4Q10 

3Q10 

2Q10 

Shareholders' equity

32.5

$     

30.5

$     

29.5

$     

29.2

$     

28.2

$     

Tier 1 capital

27.8

26.8

25.9

24.9

24.0

Total risk-based capital

35.1

34.2

33.0

32.3

31.9

Tier 1 common equity ratio

8.4%

8.2%

7.8%

7.6%

7.4%

Tier 1 capital ratio

11.0%

10.8%

10.5%

10.3%

10.1%

Total risk-based capital ratio

13.9%

13.8%

13.3%

13.3%

13.4%

Leverage ratio

9.2%

9.0%

9.1%

9.0%

8.8%

Tangible common equity ratio

6.5%

6.3%

6.0%

6.2%

6.0%

Tangible common equity as a

    percent of risk-weighted assets

8.0%

7.6%

7.2%

7.2%

6.9%

Capital Position

$ in billions

6

2Q11 Earnings

Conference Call

150

170

190

210

230

2Q10

3Q10

4Q10

1Q11

2Q11

Loans

Deposits

Loan and Deposit Growth

Average Balances

Year-Over-Year Growth

2Q11 Acquisition Adjusted

Loan Growth = 3.5%

Deposit Growth = 9.6%

2.4%

$197.6

4.0%

$198.8

4.0%

$191.2

5.8%

$192.5

2.0%

$195.5

11.9%

$204.3

14.2%

$209.4

12.3%

$183.3

9.8%

$182.7

5.2%

$190.3

$ in billions

7

2Q11 Earnings

Conference Call

Taxable-equivalent basis

Revenue Growth

Year-Over-Year Growth

8.7%

7.9%

7.9%

4.6%

3.8%

$ in millions

4,519

4,587

4,721

4,519

4,690

3,000

3,500

4,000

4,500

5,000

2Q10

3Q10

4Q10

1Q11

2Q11

8

2Q11 Earnings

Conference Call

Credit Quality

$ in millions, linked quarter change

* Excluding Covered Assets (assets subject to loss sharing agreements with FDIC), 1Q11 change in NPAs excludes FCB acquisition ($287 million)

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)

9

2Q11 Earnings

Conference Call

Credit Quality -

Outlook

The Company expects the level of Net Charge-offs and Nonperforming

Assets to trend lower during 3Q11

-8%

-9%

-1%

-8%

18%

23%

16%

36%

28%

0%

6%

0%

-1%

-16%

-40.0%

-20.0%

0.0%

20.0%

40.0%

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

Delinquencies*

Changes in Criticized Assets*

* Excluding Covered Assets (assets subject to loss sharing agreements with FDIC)

1Q11 change in criticized assets excludes FCB acquisition

0.72%

0.84%

1.04%

1.00%

1.11%

1.34%

1.48%

1.44%

1.45%

1.70%

1.62%

1.18%

1.04%

1.06%

0.44%

0.52%

0.61%

0.66%

0.72%

0.78%

0.88%

0.78%

0.72%

0.68%

0.56%

0.46%

0.41%

0.43%

0.0%

0.5%

1.0%

1.5%

2.0%

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

30 to 89 %

90+ %

10

2Q11 Earnings

Conference Call

Credit Quality -

Reserves

Allowance for Credit Losses

Allowance for Credit Losses

Provision/NCO's

$ in millions

77%

94%

97%

100%

102%

115%

125%

140%

150%

167%

200%

150%

151%

166%

100%

0

1,500

3,000

4,500

6,000

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

60%

95%

130%

165%

200%

5,536

5,439

5,264

4,986

4,571

4,105

3,639

2,898

2,648

2,435

2,260

5,540

5,531

5,498

5,308

11

2Q11 Earnings

Conference Call

Earnings Summary

$ in millions, except per-share data

Taxable-equivalent basis

YTD

YTD

2Q11

1Q11

2Q10

vs 1Q11

vs 2Q10

2011

2010

% B/(W)

Net Interest Income

2,544

$  

2,507

$  

2,409

$  

1.5

5.6

5,051

$  

4,812

$  

5.0

Noninterest Income

2,146

2,012

2,110

6.7

1.7

4,158

4,028

3.2

Total Revenue

4,690

4,519

4,519

3.8

3.8

9,209

8,840

4.2

Noninterest Expense

2,425

2,314

2,377

(4.8)

(2.0)

4,739

4,513

(5.0)

Operating Income

2,265

2,205

2,142

2.7

5.7

4,470

4,327

3.3

Net Charge-offs

747

805

1,114

7.2

32.9

1,552

2,249

31.0

Excess Provision

(175)

(50)

25

--

--

(225)

200

--

Income before Taxes

1,693

1,450

1,003

16.8

68.8

3,143

1,878

67.4

Applicable Income Taxes

514

421

251

(22.1)

(104.8)

935

463

(101.9)

Noncontrolling Interests

24

17

14

41.2

71.4

41

20

105.0

Net Income

1,203

1,046

766

15.0

57.0

2,249

1,435

56.7

Preferred Dividends/Other

36

43

(96)

16.3

--

79

(75)

--

NI to Common

1,167

$  

1,003

$  

862

$     

16.4

35.4

2,170

$  

1,510

$  

43.7

Diluted EPS

0.60

$    

0.52

$    

0.45

$    

15.4

33.3

1.12

$    

0.79

$    

41.8

Average Diluted Shares

1,929

1,928

1,921

(0.1)

(0.4)

1,929

1,920

(0.5)

% B/(W)

12

2Q11 Earnings

Conference Call

2Q11 Results -

Key Drivers

vs. 2Q10

Net Revenue growth of 3.8%

•

Net

interest

income

growth

of

5.6%;

net

interest

margin

of

3.67%

vs.

3.90%

•

Noninterest income growth of 1.7%

Noninterest expense growth of 2.0%

Provision for credit losses lower by $567 million

•

Net charge-offs lower by $367 million

•

Provision lower than NCOs by $175 million vs. provision in excess of NCOs of $25 million in 2Q10

vs. 1Q11

Net

Revenue

growth

of

3.8%

(4.9%

excluding

securities

losses

and

1Q11

gain

related

to

FCB acquisition)

•

Net

interest

income

growth

of

1.5%;

net

interest

margin

of

3.67%

vs.

3.69%

•

Noninterest income growth of 6.7% (9.3% excluding securities losses and 1Q11 gain related to

FCB acquisition)

Noninterest expense growth of 4.8%

Provision for credit losses lower by $183 million

•

Net charge-offs lower by $58 million

•

Provision lower than NCOs by $175 million vs. provision lower than NCOs by $50 million in 1Q11

13

2Q11 Earnings

Conference Call

YTD

YTD

2Q11

1Q11

2Q10

2011

2010

Revenue Items

Securities gains (losses), net

(8)

$       

(5)

$       

(21)

$     

(13)

$     

(55)

$     

Gain related to FCB acquisition

-

46

-

46

-

Expense Items

ITS transaction debt extinguishment and expense

-

-

18

-

18

Incremental Provision

(175)

(50)

25

(225)

200

ITS transaction equity impact (net of tax)*

-

-

118

-

118

Notable 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

14

2Q11 Earnings

Conference Call

Net Interest Income

2,409

2,477

2,499

2,507

2,544

3.90%

3.91%

3.83%

3.69%

3.67%

1,500

1,800

2,100

2,400

2,700

2Q10

3Q10

4Q10

1Q11

2Q11

2.0%

3.0%

4.0%

5.0%

6.0%

Net Interest Income

Net Interest Margin

Net Interest Income

Key Points

$ in millions

Taxable-equivalent basis

vs. 2Q10

Average earning assets grew by $30.1 billion,

or 12.2% (11.6% excluding acquisitions)

Net interest margin lower by 23 bp (3.67% vs.

3.90%) driven by:

•

Higher balances in lower yielding investment

securities

•

Higher cash position at the Federal Reserve

vs. 1Q11

Average earning assets grew by $3.6 billion,

or 1.3% (1.2% excluding acquisitions)

Net interest margin lower by 2 bp (3.67% vs.

3.69%) driven by:

•

Higher balances in lower yielding investment

securities, offset by lower cash position at the

Federal Reserve

Year-Over-Year Growth

14.5%

14.8%

5.9%

4.3%

5.6%

2Q11 Earnings

Conference Call

Average Loans

8.0%

3.0%

(4.5%)

(8.7%)

(14.3%)

3.9%

3.0%

1.6%

1.1%

1.3%

22.0%

20.3%

15.8%

14.3%

11.9%

0.7%

1.0%

2.3%

3.4%

3.2%

0

60

120

180

240

2Q10

3Q10

4Q10

1Q11

2Q11

Average Loans

Key Points

$ in billions

Year-Over-Year Growth

4.0%

5.8%

2.0%

2.4%

4.0%

$191.2

$192.5

$195.5

$197.6

$198.8

Retail

Res Mtg

Covered

CRE

Commercial

vs. 2Q10

Average total loans grew by $7.6 billion, or 4.0%

(3.5% excluding acquisitions)

Average total loans, excluding covered loans,

were higher by 6.7%

Average commercial loans increased $3.7 billion,

or 8.0% (7.8% excluding acquisitions)

vs. 1Q11

Average total loans grew by $1.2 billion, or 0.6%

(0.5% excluding acquisitions)

Average total loans, excluding covered loans,

were higher by 1.2%

Average commercial loans grew by $1.3 billion,

or 2.8%

Covered

Commercial

CRE

Res Mtg

Retail

15

16

2Q11 Earnings

Conference Call

Average Deposits

(10.8%)

(0.8%)

(7.4%)

1.9%

5.1%

47.7%

13.8%

2.9%

11.6%

11.8%

19.9%

17.8%

17.5%

17.2%

17.3%

6.8%

7.4%

4.8%

16.3%

22.1%

0

60

120

180

240

2Q10

3Q10

4Q10

1Q11

2Q11

Average Deposits

Key Points

$ in billions

Year-Over-Year Growth

12.3%

9.8%

5.2%

11.9%

14.2%

$183.3

$182.7

$190.3

$204.3

$209.4

Noninterest

-bearing

Checking

& Savings

Time

Money

Market

vs. 2Q10

Average total deposits increased by $26.1

billion, or 14.2% (9.6% excluding acquisitions)

Average low cost deposits (NIB, interest

checking, money market and savings),

increased by $23.9 billion, or 17.1% (12.3%

excluding acquisitions)

vs. 1Q11

Average total deposits increased by $5.1

billion, or 2.5% (2.3% excluding acquisitions)

Average low cost deposits increased by $5.8

billion, or 3.7% (3.5% excluding acquisitions)

Time

Money Market

Checking & Savings

Noninterest-bearing

17

2Q11 Earnings

Conference Call

2Q10

3Q10

4Q10

1Q11

2Q11

Valuation losses

(21)

$     

(9)

$       

(14)

$     

(5)

$       

(8)

$       

Other non-operating gains

-

-

103

46

-

Total

(21)

$     

(9)

$       

89

$       

41

$       

(8)

$       

Notable Noninterest Income Items

All Other

Mortgage

Service Charges

Trust & Inv Mgmt

Payments

Noninterest Income

9.4%

(1.6%)

(7.1%)

(3.4%)

5.9%

0

700

1400

2100

2800

2Q10

3Q10

4Q10

1Q11

2Q11

Noninterest Income

Key Points

$ in millions

Year-Over-Year Growth

2.7%

0.8%

10.2%

4.9%

1.7%

$2,146

$2,110

$2,110

$2,222

$2,012

Trust &

Inv Mgmt

Service

Charges

All Other

Mortgage

Payments

Payments = credit and debit card revenue, corporate payment products revenue and

merchant processing services; Service charges = deposit service charges, treasury

management fees and ATM processing services

vs. 2Q10

Noninterest income grew by $36 million, or 1.7%,

driven by:

•

Payments revenue (5.9% growth)

•

Commercial products revenue (6.3% growth)

•

Lower deposit service charges due to Reg E and fee  

policy changes

•

Mortgage banking revenue decrease of $4 million

24% decrease in production volume

Favorable net change in MSR valuation and related hedging

(hedge $81 2Q11 vs. $55 2Q10)

vs. 1Q11

Noninterest income grew by $134 million, or 6.7%,

driven by:

•

Payments revenue (8.9% growth) and deposit service

charges (13.3% growth) both seasonally higher

•

Commercial products revenue (14.1% growth)

•

Mortgage banking revenue increase of $40 million

33% decrease in production volume, higher application volume

Favorable net change in MSR valuation and related hedging  

(hedge $81 2Q11 vs. $62 1Q11)

Notable items, including net securities losses,

unfavorable by $49 million

18

2Q11 Earnings

Conference Call

2Q10

3Q10

4Q10

1Q11

2Q11

ITS transaction

18

$       

-

$         

-

$         

-

$         

-

$         

Total

18

$       

-

$         

-

$         

-

$         

-

$         

Notable Noninterest Expense Items

Noninterest Expense

(14.4%)

1.6%

6.0%

10.2%

8.6%

0

700

1400

2100

2800

2Q10

3Q10

4Q10

1Q11

2Q11

Noninterest Expense

Key Points

$ in millions

Year-Over-Year Growth

11.6%

16.2%

11.5%

8.3%

2.0%

$2,425

$2,377

$2,385

$2,485

$2,314

Occupancy

& Equipment

Prof Services,

Marketing

& PPS

All Other

Tech & Comm

Compensation

& Benefits

vs. 2Q10

Noninterest expense was higher by $48 million,

or 2.0%, majority of variance driven by:

•

Increased compensation (6.1%) and employee

benefits (22.1%)

•

Increase in net occupancy & equipment (10.2%)

related to business expansion initiatives and

technology-related projects

•

Other expense lower primarily due to favorable

changes in other loan expense, integration expenses,

and costs related to insurance and litigation matters,

partially offset by an increase in FDIC deposit

insurance

vs. 1Q11

Noninterest expense was higher by $111 million,

or 4.8%, majority of variance driven by:

•

Higher compensation (4.7%) due to higher incentives

and commissions

•

Professional services and marketing and business

development expenses higher primarily due to timing

of initiatives and seasonally lower 1Q11

•

Other expense higher mainly due to FDIC deposit

insurance expense and seasonally higher investments

in affordable housing and other tax-advantaged

projects

All Other

Tech & Communications

Prof Svcs, Marketing and PPS

Occupancy & Equip

Compensation & Benefits

19

2Q11 Earnings

Conference Call

Mortgage Repurchase

Mortgages Repurchased and Make-whole Payments

Mortgage Representation and Warranties Reserve

$ in millions

2Q11

1Q11

4Q10

3Q10

2Q10

Beginning Reserve

$181

$180

$147

$101

$73

Net Realized Losses

(43)

(32)

(27)

(24)

(20)

Additions to Reserve

35

33

60

70

48

Ending Reserve

$173

$181

$180

$147

$101

Mortgages

repurchased

and make-whole

payments

$72

$90

$69

$53

$27

Repurchase activity lower than

peers due to:

•

Conservative credit and underwriting

culture

•

Disciplined origination process -

primarily conforming loans            

(   95% sold to GSEs)

Do not participate in private

placement securitization market

Outstanding repurchase and make-

whole requests balance = $123

million

Repurchase requests expected to

decline over the next few quarters

20

2Q11 Earnings

Conference Call

Regulatory Environment

Existing regulatory oversight actions

Future regulatory oversight actions

•

Dodd-Frank Wall Street Reform and Consumer Protection Act

Consumer Financial Protection Bureau

•

Residential mortgage foreclosure policy and procedures

FY 2010

Annual

Actual

Run Rate

Overdraft Legislation

$255

$440 -

$480

Pricing and Policy Changes

Card Act

$160

$250

Net Interest Margin and Fee Income

Durbin Amendment

--

$300*

$ in millions, estimated reduction to revenue

* 4Q11 impact approximately $75 million ($0.24 per average transaction starting 4Q11)

21

2Q11 Earnings

Conference Call

Positioned to Win

22

2Q11 Earnings

Conference Call

Appendix

23

2Q11 Earnings

Conference Call

Credit Quality

-

Commercial Loans

40,095

40,726

41,700

42,683

44,135

2.23%

1.49%

1.11%

1.19%

0.75%

0

15,000

30,000

45,000

60,000

2Q10

3Q10

4Q10

1Q11

2Q11

0.0%

1.5%

3.0%

4.5%

6.0%

Average Loans

Net Charge-offs Ratio

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Delinquencies and nonperforming loans continue to improve

Utilization

rates

remain

historically

low

although

loan

balances

grew

2Q10

1Q11

2Q11

Average Loans

40,095

42,683

44,135

30-89 Delinquencies

0.73%

0.58%

0.46%

90+ Delinquencies

0.24%

0.13%

0.09%

Nonperforming Loans

1.65%

1.02%

0.78%

20%

25%

30%

35%

40%

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

Revolving Line Utilization Trend

$ in millions

24

2Q11 Earnings

Conference Call

Credit Quality

-

Commercial Leases

6,245

6,058

6,012

6,030

5,919

1.41%

1.18%

1.12%

0.94%

0.88%

0

2,000

4,000

6,000

8,000

2Q10

3Q10

4Q10

1Q11

2Q11

0.0%

1.5%

3.0%

4.5%

6.0%

Average Loans

Net Charge-offs Ratio

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Net charge-offs improved, declining to 0.88% for the quarter

Credit quality continues to improve as delinquencies and nonperforming loans declined

2Q10

1Q11

2Q11

Average Loans

6,245

6,030

5,919

30-89 Delinquencies

1.55%

1.18%

1.00%

90+ Delinquencies

0.03%

0.03%

0.02%

Nonperforming Loans

1.87%

0.90%

0.73%

$ in millions

Equipment

Finance

$2,376

Small Ticket

$3,543

25

2Q11 Earnings

Conference Call

Credit Quality

-

Commercial Real Estate

34,164

34,190

34,577

35,179

35,499

2.67%

2.40%

2.51%

1.44%

1.85%

0.90%

0.59%

1.33%

1.72%

1.11%

5.67%

4.61%

6.54%

4.56%

7.31%

0

10,000

20,000

30,000

40,000

2Q10

3Q10

4Q10

1Q11

2Q11

0.0%

2.5%

5.0%

7.5%

10.0%

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Early and late stage delinquencies, as well as nonperforming loans, all decreased on a linked

quarter basis

Net

charge-offs

increased

on

a

linked

quarter

basis,

but

have

decreased

28%

on

a

year-over-

year basis

2Q10

1Q11

2Q11

Average Loans

34,164

35,179

35,499

30-89 Delinquencies

0.98%

0.74%

0.45%

90+ Delinquencies

0.09%

0.02%

0.01%

Nonperforming Loans

4.75%

4.15%

3.84%

Performing TDRs

69

184

225

$ in millions

Multi-family

$1,670

Other

$1,049

Office

$870

A&D

Construction

$951

Retail

$965

Condo

Construction

$398

Residential

Construction

$1,167

Investor

$17,190

Owner

Occupied

$11,239

CRE Mortgage

CRE Construction

Average Loans

Net Charge-offs Ratio

NCO Ratio -

Comm Mtg

NCO Ratio -

Construction

TDR = troubled debt restructuring

26

2Q11 Earnings

Conference Call

1,939

1,890

1,804

1,747

1,672

0

600

1,200

1,800

2,400

2Q10

3Q10

4Q10

1Q11

2Q11

Credit Quality

-

Residential Mortgage

26,821

27,890

29,659

31,777

32,734

2.06%

1.88%

1.75%

1.65%

1.46%

0

9,000

18,000

27,000

36,000

2Q10

3Q10

4Q10

1Q11

2Q11

0.0%

1.5%

3.0%

4.5%

6.0%

Average Loans

Net Charge-offs Ratio

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Strong growth in high quality originations (weighted average FICO 753, weighted average LTV 71%)

as average loans increased 3.0% over 1Q11 driven by demand for refinancing

Continue to help home owners by successfully modifying 5,111 loans (owned and serviced) in 2Q11,

representing $955 million in balances

Nonperforming loans declined as delinquency and foreclosure inventory improved

2Q10

1Q11

2Q11

Average Loans

26,821

31,777

32,734

30-89 Delinquencies

1.75%

1.22%

1.11%

90+ Delinquencies

1.85%

1.33%

1.13%

Nonperforming Loans

2.23%

2.12%

2.03%

Residential Mortgage

Performing TDRs

$ in millions

27

2Q11 Earnings

Conference Call

Credit Quality -

Home Equity

19,332

19,289

19,119

18,801

18,634

1.64%

1.75%

1.72%

1.62%

1.64%

0

6,000

12,000

18,000

24,000

2Q10

3Q10

4Q10

1Q11

2Q11

0.0%

1.5%

3.0%

4.5%

6.0%

Average Loans

Net Charge-offs Ratio

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Strong credit quality portfolio (weighted average FICO 747, weighted average CLTV 72%) originated

primarily through the retail branch network to existing bank customers on their primary residence

Loan demand remains soft for home equity products

Early and late stage delinquencies continue to improve

2Q10

1Q11

2Q11

Average Loans

19,332

18,801

18,634

30-89 Delinquencies

0.89%

0.81%

0.78%

90+ Delinquencies

0.68%

0.71%

0.65%

Nonperforming Loans

0.16%

0.23%

0.22%

Traditional: 87%

Wtd Avg LTV: 71%

NCO: 1.22%

Consumer Finance: 13%

Wtd Avg LTV: 80%

NCO: 4.37%

$ in millions

28

2Q11 Earnings

Conference Call

2Q10

1Q11

2Q11

Average Loans

16,329

16,124

15,884

30-89 Delinquencies

1.86%

1.44%

1.34%

90+ Delinquencies

2.38%

1.62%

1.32%

Nonperforming Loans

1.04%

1.61%

1.59%

Credit Quality -

Credit Card

16,329

16,510

16,403

16,124

15,884

7.79%

7.11%

6.65%

6.21%

5.45%

5.62%

6.45%

7.21%

7.84%

8.53%

0

5,000

10,000

15,000

20,000

2Q10

3Q10

4Q10

1Q11

2Q11

0.0%

4.0%

8.0%

12.0%

16.0%

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Both early and late stage delinquencies continue to improve

Net charge-offs declined for the fourth consecutive quarter

Nonperforming loans were stable in the second quarter

$ in millions

* Excluding portfolio purchases where the acquired loans were recorded at fair value at the purchase date

Average Loans

Net Charge-offs Ratio

Net Charge-offs Ratio Excluding Acquired Portfolios*

Core Portfolio

$15,403

Portfolios Acquired

at Fair Value

$481

2Q11 Earnings

Conference Call

Credit Quality -

Retail Leasing

4,364

4,289

4,459

4,647

4,808

0.37%

0.19%

0.09%

0.09%

0.00%

0

2,000

4,000

6,000

8,000

2Q10

3Q10

4Q10

1Q11

2Q11

0.0%

1.0%

2.0%

3.0%

4.0%

Average Loans

Net Charge-offs Ratio

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Average

loans

continue

to

increase

as

demand

for

new

auto

leases

remains

strong

Retail leasing delinquencies continue to improve, reaching pre-recession levels

Strong used auto values continue to reduce end of term risk and net charge-offs

2Q10

1Q11

2Q11

Average Loans

4,364

4,647

4,808

30-89 Delinquencies

0.46%

0.26%

0.20%

90+ Delinquencies

0.05%

0.04%

0.02%

Nonperforming Loans

--%

--%

--%

$ in millions

90

100

110

120

130

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

Manheim Used Vehicle Value Index*

* Manheim Used Vehicle Value Index source: www.manheimconsulting.com,

January 1995 = 100, quarter value = average monthly ending value

29

30

2Q11 Earnings

Conference Call

Credit Quality -

Other Retail

23,357

24,281

24,983

24,691

24,498

1.70%

1.65%

1.45%

1.33%

1.16%

0

7,000

14,000

21,000

28,000

2Q10

3Q10

4Q10

1Q11

2Q11

0.0%

1.5%

3.0%

4.5%

6.0%

Average Loans

Net Charge-offs Ratio

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Average balances increased 4.9% over 2Q10 as demand for auto loans remains strong

Net charge-offs and delinquencies continue to decline while nonperforming loans remain stable

2Q10

1Q11

2Q11

Average Loans

23,357

24,691

24,498

30-89 Delinquencies

0.85%

0.63%

0.62%

90+ Delinquencies

0.32%

0.25%

0.20%

Nonperforming Loans

0.13%

0.13%

0.13%

Installment

$5,297

Auto Loans

$10,974

Revolving

Credit

$3,336

Student

Lending

$4,891

$ in millions

31

2Q11 Earnings

Conference Call

$ in millions

2Q11 

1Q11 

4Q10 

3Q10 

2Q10 

Total equity

33,341

$         

31,335

$         

30,322

$         

29,943

$         

28,940

$         

Preferred stock

(2,606)

(1,930)

(1,930)

(1,930)

(1,930)

Noncontrolling interests

(889)

(828)

(803)

(792)

(771)

Goodwill (net of deferred tax liability)

(8,300)

(8,317)

(8,337)

(8,429)

(8,425)

Intangible assets (exclude mortgage servicing rights)

(1,277)

(1,342)

(1,376)

(1,434)

(1,525)

Tangible common equity (a)

20,269

18,918

17,876

17,358

16,289

Tier 1 Capital, determined in accordance with prescribed

   regulatory requirements using Basel I definition

27,795

26,821

25,947

24,908

24,021

Trust preferred securities

(3,267)

(3,949)

(3,949)

(3,949)

(3,949)

Preferred stock

(2,606)

(1,930)

(1,930)

(1,930)

(1,930)

Noncontrolling interests, less preferred stock not eligible for Tier I capital

(695)

(694)

(692)

(694)

(694)

Tier 1 common equity using Basel I definition (b)

21,227

20,248

19,376

18,335

17,448

Tier 1 capital, determined in accordance with prescribed

   regulatory requirements using anticipated Basel III definition

23,931

21,855

Preferred stock

(2,606)

(1,930)

Noncontrolling interests of real estate investment trusts

(667)

(667)

Tier 1 common equity using anticipated Basel III definition (c)

20,658

19,258

Total assets

320,874

311,462

307,786

290,654

283,243

Goodwill (net of deferred tax liability)

(8,300)

(8,317)

(8,337)

(8,429)

(8,425)

Intangible assets (exclude mortgage servicing rights)

(1,277)

(1,342)

(1,376)

(1,434)

(1,525)

Tangible assets (d)

311,297

301,803

298,073

280,791

273,293

Risk-weighted assets, determined in accordance

  with prescribed regulatory requirements using Basel I definition (e)

252,882

247,486

247,619

242,490

237,145

Risk-weighted assets using anticipated Basel III definitions (f)

256,205

250,931

Ratios

Tangible common equity to tangible assets (a)/(d)

6.5%

6.3%

6.0%

6.2%

6.0%

Tier 1 common equity to risk-weighted assets using Basel I definition (b)/(e)

8.4%

8.2%

7.8%

7.6%

7.4%

Tier 1 common equity to risk-weighted assets using anticipated Basel III definition (c)/(f)

8.1%

7.7%

Tangible common equity to risk-weighted assets (a)/(e)

8.0%

7.6%

7.2%

7.2%

6.9%

2Q11 risk-weighted assets are preliminary data, subject to change prior to filings with applicable regulatory agencies

Anticipated Basel III definitions reflect adjustments for changes to the related elements as proposed in December 2010 by regulatory agencies

Non-Regulatory Capital Ratios

U.S. Bancorp

2Q11 Earnings

Conference Call

U.S. Bancorp

2Q11 Earnings

Conference Call

July 20, 2011