U.S. Bancorp

3Q11 Earnings

Conference Call

U.S. Bancorp

3Q11 Earnings

Conference Call

October 19, 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 negatively 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

3Q11 Earnings

Conference Call

3Q11 Highlights

Record net income of $1.3 billion; $0.64 per diluted common share

Record total net revenue of $4.8 billion, up 4.5% vs. 3Q10

•

Net interest income growth of 5.9% vs. 3Q10

•

Noninterest income growth of 2.9% vs. 3Q10

Average loan growth of 5.0% (4.5% excluding acquisitions) vs. 3Q10 and

average loan growth of 1.7% vs. 2Q11

Strong

average

low

cost

deposit

1

growth

of

23.2%

(18.3%

excluding

acquisitions) vs. 3Q10 and average low cost deposit growth of 4.7% vs. 2Q11

Net charge-offs declined 10.4% vs. 2Q11 and nonperforming assets (excluding

covered assets) declined 6.9% vs. 2Q11

Capital generation continues to strengthen capital position

•

Tier

1

common

equity

ratio

of

8.5%

(8.2%

under

anticipated

Basel

III

guidelines)

•

Tier 1 capital ratio of 10.8%

•

Repurchased 13 million shares of common stock during 3Q11

1

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

4

3Q11 Earnings

Conference Call

Performance Ratios

16.1%

15.9%

14.5%

13.7%

12.8%

1.57%

1.54%

1.38%

1.31%

1.26%

0%

5%

10%

15%

20%

3Q10

4Q10

1Q11

2Q11

3Q11

0%

1%

2%

3%

4%

51.5%

51.6%

51.1%

52.5%

51.9%

3.65%

3.67%

3.69%

3.83%

3.91%

30%

40%

50%

60%

70%

3Q10

4Q10

1Q11

2Q11

3Q11

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

5

3Q11 Earnings

Conference Call

3Q11 

2Q11 

1Q11 

4Q10 

3Q10 

Shareholders' equity

33.2

$     

32.5

$     

30.5

$     

29.5

$     

29.2

$     

Tier 1 capital

28.1

27.8

26.8

25.9

24.9

Total risk-based capital

35.4

35.1

34.2

33.0

32.3

Tier 1 common equity ratio

8.5%

8.4%

8.2%

7.8%

7.6%

Tier 1 capital ratio

10.8%

11.0%

10.8%

10.5%

10.3%

Total risk-based capital ratio

13.5%

13.9%

13.8%

13.3%

13.3%

Leverage ratio

9.0%

9.2%

9.0%

9.1%

9.0%

Tangible common equity ratio

6.6%

6.5%

6.3%

6.0%

6.2%

Tangible common equity as a

    percent of risk-weighted assets

8.1%

8.0%

7.6%

7.2%

7.2%

Capital Position

$ in billions

6

3Q11 Earnings

Conference Call

Loan and Deposit Growth

Average Balances

Year-Over-Year Growth

3Q11 Acquisition Adjusted

Loan Growth = 4.5%

Deposit Growth = 13.2%

2.4%

$197.6

4.0%

$198.8

5.0%

$202.2

5.8%

$192.5

2.0%

$195.5

11.9%

$204.3

14.2%

$209.4

17.9%

$215.4

9.8%

$182.7

5.2%

$190.3

$ in billions

150

170

190

210

230

3Q10

4Q10

1Q11

2Q11

3Q11

Loans

Deposits

7

3Q11 Earnings

Conference Call

Taxable-equivalent basis

Revenue Growth

Year-Over-Year Growth

7.9%

7.9%

4.6%

3.8%

4.5%

$ in millions

4,587

4,721

4,519

4,690

4,795

3,000

3,500

4,000

4,500

5,000

3Q10

4Q10

1Q11

2Q11

3Q11

8

3Q11 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)

103

68

(21)

25

69

112

141

156

134

102

155

290

91

184

386

626

727

489

357

(261)

(119)

(171)

(58)

(212)

(132)

(159)

(78)

(217)

(58)

(226)

-10%

-7%

-14%

-6%

-11%

-2%

2%

7%

12%

18%

25%

27%

26%

35%

30%

-160

-80

0

80

160

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

-40%

-20%

0%

20%

40%

-7%

-6%

22%

34%

31%

33%

37%

23%

12%

5%

2%

-7%

-5%

-6%

-5%

-800

-400

0

400

800

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

-40%

-20%

0%

20%

40%

9

3Q11 Earnings

Conference Call

Credit Quality -

Outlook

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

Assets to trend lower during 4Q11

Delinquencies*

Changes in Criticized Assets*

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

1Q11 change in criticized assets excludes FCB acquisition

0.69%

1.06%

1.04%

1.18%

1.62%

1.70%

1.45%

1.44%

1.48%

1.34%

1.11%

1.00%

1.04%

0.84%

0.72%

0.43%

0.43%

0.41%

0.46%

0.56%

0.68%

0.72%

0.78%

0.88%

0.78%

0.72%

0.66%

0.61%

0.52%

0.44%

0.0%

0.5%

1.0%

1.5%

2.0%

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

30 to 89 days

90+ days

-8%

-9%

-1%

-11%

-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

3Q11

10

3Q11 Earnings

Conference Call

Credit Quality -

Reserves

Allowance for Credit Losses

Allowance for Credit Losses

Provision/NCO's

$ in millions

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

5,190

78%

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

3Q11

60%

95%

130%

165%

200%

11

3Q11 Earnings

Conference Call

YTD

YTD

3Q11

2Q11

3Q10

vs 2Q11

vs 3Q10

2011

2010

% B/(W)

Net Interest Income

2,624

$   

2,544

$   

2,477

$   

3.1

5.9

7,675

$   

7,289

$   

5.3

Noninterest Income

2,171

2,146

2,110

1.2

2.9

6,329

6,138

3.1

Total Revenue

4,795

4,690

4,587

2.2

4.5

14,004

13,427

4.3

Noninterest Expense

2,476

2,425

2,385

(2.1)

(3.8)

7,215

6,898

(4.6)

Operating Income

2,319

2,265

2,202

2.4

5.3

6,789

6,529

4.0

Net Charge-offs

669

747

995

10.4

32.8

2,221

3,244

31.5

Excess Provision

(150)

(175)

-

--

--

(375)

200

--

Income before Taxes

1,800

1,693

1,207

6.3

49.1

4,943

3,085

60.2

Applicable Income Taxes

548

514

313

(6.6)

(75.1)

1,483

776

(91.1)

Noncontrolling Interests

21

24

14

(12.5)

50.0

62

34

82.4

Net Income

1,273

1,203

908

5.8

40.2

3,522

2,343

50.3

Preferred Dividends/Other

36

36

37

-

2.7

115

(38)

--

NI to Common

1,237

$   

1,167

$   

871

$      

6.0

42.0

3,407

$   

2,381

$   

43.1

Diluted EPS

0.64

$     

0.60

$     

0.45

$     

6.7

42.2

1.77

$     

1.24

$     

42.7

Average Diluted Shares

1,922

1,929

1,920

0.4

(0.1)

1,926

1,920

(0.3)

% B/(W)

Earnings Summary

$ in millions, except per-share data

Taxable-equivalent basis

12

3Q11 Earnings

Conference Call

3Q11 Results -

Key Drivers

vs. 3Q10

Net Revenue growth of 4.5%

•

Net

interest

income

growth

of

5.9%;

net

interest

margin

of

3.65%

vs.

3.91%

•

Noninterest income growth of 2.9%

Noninterest expense growth of 3.8%

Provision for credit losses lower by $476 million

•

Net charge-offs lower by $326 million

•

Provision

lower

than

NCOs

by

$150

million

vs.

provision

equal

to

NCOs

in

3Q10

vs. 2Q11

Net Revenue growth of 2.2%

•

Net

interest

income

growth

of

3.1%;

net

interest

margin

of

3.65%

vs.

3.67%

•

Noninterest income growth of 1.2%

Noninterest expense growth of 2.1%

Provision for credit losses lower by $53 million

•

Net charge-offs lower by $78 million

•

Provision lower than NCOs by $150 million vs. provision lower than NCOs by $175 million in 2Q11

13

3Q11 Earnings

Conference Call

Net Interest Income

Net Interest Income

Key Points

$ in millions

Taxable-equivalent basis

vs. 3Q10

Average earning assets grew by $34.4 billion,

or 13.6% (13.2% excluding acquisitions)

Net interest margin lower by 26 bp

(3.65% vs.

3.91%) driven by:

•

Higher balances in lower yielding investment

securities

•

Higher cash position at the Federal Reserve

vs. 2Q11

Average earning assets grew by $8.7 billion,

or 3.1%

Net interest margin lower by 2 bp

(3.65% vs.

3.67%) driven by:

•

Higher balances in lower yielding investment

securities

Year-Over-Year Growth

14.8%

5.9%

4.3%

5.6%

5.9%

2,477

2,499

2,507

2,544

2,624

3.91%

3.83%

3.69%

3.67%

3.65%

1,500

1,800

2,100

2,400

2,700

3Q10

4Q10

1Q11

2Q11

3Q11

2.0%

3.0%

4.0%

5.0%

6.0%

Net Interest Income

Net Interest Margin

14

3Q11 Earnings

Conference Call

Covered

Commercial

CRE

Res Mtg

Retail

Credit Card

Average Loans

Average Loans

Key Points

$ in billions

Year-Over-Year Growth

5.8%

2.0%

2.4%

4.0%

5.0%

$202.2

$192.5

$195.5

$197.6

$198.8

Retail

Res Mtg

Covered

CRE

Commercial

vs. 3Q10

Average total loans grew by $9.7 billion, or 5.0%

(4.5% excluding acquisitions)

Average total loans, excluding covered loans,

were higher by 7.6%

Average commercial loans increased $5.6 billion,

or 11.9% (11.7% excluding acquisitions)

vs. 2Q11

Average total loans grew by $3.4 billion, or 1.7%

Average total loans, excluding covered loans,

were higher by 2.3%

Average commercial loans grew by $2.3 billion,

or 4.6%

Credit Card

11.9%

8.0%

3.0%

(4.5%)

(8.7%)

4.0%

3.9%

3.0%

1.6%

1.1%

22.0%

22.0%

20.3%

15.8%

14.3%

(2.7%)

(2.7%)

(1.5%)

0.0%

7.3%

1.1%

1.9%

1.9%

3.1%

2.2%

0

60

120

180

240

3Q10

4Q10

1Q11

2Q11

3Q11

15

3Q11 Earnings

Conference Call

Average Deposits

1.0%

5.1%

1.9%

(7.4%)

(0.8%)

17.4%

11.8%

11.6%

2.9%

13.8%

11.0%

17.3%

17.2%

17.5%

17.8%

47.5%

22.1%

16.3%

4.8%

7.4%

0

60

120

180

240

3Q10

4Q10

1Q11

2Q11

3Q11

Average Deposits

Key Points

$ in billions

Year-Over-Year Growth

9.8%

5.2%

11.9%

14.2%

17.9%

$215.4

$182.7

$190.3

$204.3

$209.4

Noninterest

-bearing

Checking

& Savings

Time

Money

Market

vs. 3Q10

Average total deposits increased by $32.7

billion, or 17.9% (13.2% excluding acquisitions)

Average low cost deposits (NIB, interest

checking, money market and savings),

increased by $32.3 billion, or 23.2% (18.3%

excluding acquisitions)

vs. 2Q11

Average total deposits increased by $6.0

billion, or 2.8%

Average low cost deposits increased by $7.7

billion, or 4.7%

Time

Money Market

Checking & Savings

Noninterest-bearing

16

3Q11 Earnings

Conference Call

3Q10

4Q10

1Q11

2Q11

3Q11

Valuation losses

(9)

$       

(14)

$     

(5)

$       

(8)

$       

(9)

$       

Other non-operating gains

-

103

46

-

-

Total

(9)

$       

89

$       

41

$       

(8)

$       

(9)

$       

Notable Noninterest Income Items

All Other

Mortgage

Service Charges

Trust & Inv Mgmt

Payments

Noninterest Income

Noninterest Income

Key Points

$ in millions

Year-Over-Year Growth

0.8%

10.2%

4.9%

1.7%

2.9%

$2,146

$2,110

$2,171

$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. 3Q10

Noninterest income grew by $61 million, or 2.9%,

driven by:

•

Payments revenue (6.0% growth)

•

Service charges (7.7% growth)

•

Commercial products revenue (7.6% growth)

•

Lower Trust and Inv Mgmt fees (9.7% decline) primarily

due to the sale of the long-term asset mgmt business

(4Q10) and money market account fee waivers

•

Mortgage banking revenue decrease of $65 million

31% decrease in production volume

Favorable net change in MSR valuation and related hedging

(hedge $7 3Q11 vs. $1 3Q10)

vs. 2Q11

Noninterest income grew by $25 million, or 1.2%,

driven by:

•

Payments revenue (2.6% growth) primarily due to

seasonally higher corporate payments revenue

•

Deposit service charges (13.0% growth) due to higher

transaction volumes and product redesign initiatives

•

Lower Trust and Inv Mgmt fees (6.6% decline) primarily

due to the impact of market conditions and money

market account fee waivers

•

Mortgage banking revenue increase of $6 million

43% increase in production volume

Unfavorable net change in MSR valuation and related hedging  

(hedge $7 3Q11 vs. $81 2Q11)

21.4%

(21.0%)

7.7%

(9.7%)

6.0%

0

700

1400

2100

2800

3Q10

4Q10

1Q11

2Q11

3Q11

17

3Q11 Earnings

Conference Call

Noninterest Expense

(5.8%)

1.6%

6.9%

10.0%

7.0%

0

700

1400

2100

2800

3Q10

4Q10

1Q11

2Q11

3Q11

Noninterest Expense

Key Points

$ in millions

Year-Over-Year Growth

16.2%

11.5%

8.3%

2.0%

3.8%

$2,425

$2,476

$2,385

$2,485

$2,314

Occupancy

& Equipment

Prof Services,

Marketing

& PPS

All Other

Tech & Comm

Compensation

& Benefits

vs. 3Q10

Noninterest expense was higher by $91 million,

or 3.8%, driven by:

•

Increased compensation (4.9%) and employee

benefits (18.7%)

•

Increase in net occupancy & equipment (10.0%)

related to business expansion and technology

initiatives

•

Increase in professional services (28.2%) due to

mortgage servicing-related projects

•

Other expense lower primarily due to favorable

changes in other loan expense and costs related to

insurance and litigation matters, partially offset by

higher investments in affordable housing and other

tax-advantaged projects

vs. 2Q11

Noninterest expense was higher by $51 million,

or 2.1%, driven by:

•

Higher compensation (1.7%) principally due to

additions to staff and higher incentives

•

Increase in professional services (22.0%) due to

mortgage servicing-related projects

•

Increase in marketing and business development

expenses (13.3%) due to the timing of payments-

related initiatives and an increase in the contribution to

the Company’s charitable foundation

All Other

Tech & Communications

Prof Svcs, Marketing and PPS

Occupancy & Equip

Compensation & Benefits

18

3Q11 Earnings

Conference Call

Mortgage Repurchase

Mortgages Repurchased and Make-whole Payments

Mortgage Representation and Warranties Reserve

$ in millions

3Q11

2Q11

1Q11

4Q10

3Q10

Beginning Reserve

$173

$181

$180

$147

$101

Net Realized Losses

(31)

(43)

(32)

(27)

(24)

Additions to Reserve

20

35

33

60

70

Ending Reserve

$162

$173

$181

$180

$147

Mortgages

repurchased

and make-whole

payments

$57

$72

$90

$69

$53

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      

= $115 million

Repurchase requests expected to

decline over the next few quarters

19

3Q11 Earnings

Conference Call

Positioned to Win

20

3Q11 Earnings

Conference Call

Appendix

21

3Q11 Earnings

Conference Call

YTD

YTD

3Q11

2Q11

3Q10

2011

2010

Revenue Items

Securities gains (losses), net

(9)

$       

(8)

$       

(9)

$       

(22)

$     

(64)

$     

Gain related to FCB acquisition

-

-

-

46

-

Expense Items

ITS transaction debt extinguishment and expense

-

-

-

-

18

Incremental Provision

(150)

(175)

-

(375)

200

ITS transaction equity impact (net of tax)*

-

-

-

-

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

22

3Q11 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)

23

3Q11 Earnings

Conference Call

Credit Quality

-

Commercial Loans

40,726

41,700

42,683

44,135

46,484

1.49%

1.11%

1.19%

0.75%

0.77%

0

15,000

30,000

45,000

60,000

3Q10

4Q10

1Q11

2Q11

3Q11

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

Overall delinquencies and nonperforming loans continued to improve year-over-year and on a

linked quarter basis

Net charge-offs increased slightly during the quarter, however, were down significantly from the

prior year

Loan balances and commitments grew: utilization rates remain historically low

3Q10

2Q11

3Q11

Average Loans

40,726

44,135

46,484

30-89 Delinquencies

0.76%

0.46%

0.34%

90+ Delinquencies

0.22%

0.09%

0.09%

Nonperforming Loans

1.43%

0.78%

0.71%

20%

25%

30%

35%

40%

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

Revolving Line Utilization Trend

$ in millions

24

3Q11 Earnings

Conference Call

Credit Quality

-

Commercial Leases

6,058

6,012

6,030

5,919

5,860

1.18%

1.12%

0.94%

0.88%

0.61%

0

2,000

4,000

6,000

8,000

3Q10

4Q10

1Q11

2Q11

3Q11

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 0.61% for the quarter

Credit

quality

continued

to

improve

as

overall

delinquencies

and

nonperforming

loans

declined

on

a linked quarter and year-over-year basis

3Q10

2Q11

3Q11

Average Loans

6,058

5,919

5,860

30-89 Delinquencies

1.45%

1.00%

0.93%

90+ Delinquencies

0.02%

0.02%

0.02%

Nonperforming Loans

1.83%

0.73%

0.68%

$ in millions

Equipment

Finance

$2,376

Small Ticket

$3,484

25

3Q11 Earnings

Conference Call

Credit Quality

-

Commercial Real Estate

34,190

34,577

35,179

35,499

35,569

2.40%

2.51%

1.44%

1.85%

1.39%

0.93%

0.90%

0.59%

1.33%

1.72%

3.43%

5.67%

4.61%

6.54%

4.56%

0

10,000

20,000

30,000

40,000

3Q10

4Q10

1Q11

2Q11

3Q11

0.0%

2.5%

5.0%

7.5%

10.0%

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Net charge-offs and nonperforming loans decreased on a linked quarter and on a

year-over-year basis

Exposure to construction lending has decreased on a linked quarter basis by 7%

and a year-over-year basis by 19%

3Q10

2Q11

3Q11

Average Loans

34,190

35,499

35,569

30-89 Delinquencies

0.50%

0.45%

0.44%

90+ Delinquencies

0.05%

0.01%

0.08%

Nonperforming Loans

4.15%

3.84%

3.43%

Performing TDRs*

70

225

459

$ in millions

Multi-family

$1,560

Other

$960

Office

$788

A&D

Construction

$938

Retail

$827

Condo

Construction

$336

Residential

Construction

$1,181

Investor

$17,693

Owner

Occupied

$11,286

CRE Mortgage

CRE Construction

Average Loans

Net Charge-offs Ratio

NCO Ratio -

Comm Mtg

NCO Ratio -

Construction

* TDR = troubled debt restructuring, 3Q11 increase principally due to the impact of new accounting guidance adopted in the current quarter

(FASB Accounting Standards Update No. 2011-02)

26

3Q11 Earnings

Conference Call

1,938

1,939

1,890

1,804

1,747

0

1,000

2,000

3,000

4,000

3Q10

4Q10

1Q11

2Q11

3Q11

Credit Quality

-

Residential Mortgage

27,890

29,659

31,777

32,734

34,026

1.88%

1.75%

1.65%

1.46%

1.42%

0

9,000

18,000

27,000

36,000

3Q10

4Q10

1Q11

2Q11

3Q11

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 760, weighted average LTV 68%)

as average loans increased 3.9% over 2Q11, driven by demand for refinancing

Continued to help home owners by successfully modifying 4,624 loans (owned and serviced) in

3Q11, representing $843 million in balances

Nonperforming

loans,

delinquencies

and

foreclosure

inventory

all

improved

3Q10

2Q11

3Q11

Average Loans

27,890

32,734

34,026

30-89 Delinquencies

1.65%

1.11%

1.09%

90+ Delinquencies

1.75%

1.13%

1.03%

Nonperforming Loans

2.15%

2.03%

1.85%

Residential Mortgage

Performing TDRs

$ in millions

* Excludes GNMA loans, whose repayments are insured by the Federal Housing Administration

or

guaranteed

by

the

Department

of

Veteran

Affairs

($866

million

3Q11)

*

27

3Q11 Earnings

Conference Call

3Q10

2Q11

3Q11

Average Loans

16,510

15,884

16,057

30-89 Delinquencies

1.85%

1.34%

1.38%

90+ Delinquencies

2.09%

1.32%

1.28%

Nonperforming Loans

1.21%

1.59%

1.53%

Credit Quality -

Credit Card

16,510

16,403

16,124

15,884

16,057

7.11%

6.65%

6.21%

5.45%

4.40%

4.54%

5.62%

6.45%

7.21%

7.84%

0

5,000

10,000

15,000

20,000

3Q10

4Q10

1Q11

2Q11

3Q11

0.0%

4.0%

8.0%

12.0%

16.0%

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Overall delinquencies were relatively flat for the quarter

Net charge-offs declined for the fifth consecutive 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

$15,562

Portfolios Acquired

at Fair Value

$495

28

3Q11 Earnings

Conference Call

Credit Quality -

Home Equity

19,289

19,119

18,801

18,634

18,510

1.59%

1.64%

1.75%

1.72%

1.62%

0

6,000

12,000

18,000

24,000

3Q10

4Q10

1Q11

2Q11

3Q11

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 remained soft for home equity products

Slight increases in early and late stage delinquencies

3Q10

2Q11

3Q11

Average Loans

19,289

18,634

18,510

30-89 Delinquencies

0.93%

0.78%

0.83%

90+ Delinquencies

0.73%

0.65%

0.67%

Nonperforming Loans

0.18%

0.22%

0.19%

Traditional: 87%

Wtd Avg LTV: 71%

NCO: 1.28%

Consumer Finance: 13%

Wtd Avg LTV: 80%

NCO: 3.57%

$ in millions

29

3Q11 Earnings

Conference Call

Credit Quality -

Retail Leasing

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Average loans continued to increase as demand for new auto leases remained strong

Retail leasing delinquencies have stabilized

Strong

used

auto

values

continued

to

reduce

end

of

term

risk

and

net

charge-offs

3Q10

2Q11

3Q11

Average Loans

4,289

4,808

5,097

30-89 Delinquencies

0.46%

0.20%

0.19%

90+ Delinquencies

0.05%

0.02%

0.02%

Nonperforming Loans

--%

--%

--%

$ in millions

90

100

110

120

130

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

Manheim Used Vehicle Value Index*

* Manheim

Used

Vehicle

Value

Index

source:

www.manheimconsulting.com,

January

1995

=

100,

quarter

value

=

average

monthly

ending

value

4,289

4,459

4,647

4,808

5,097

0.19%

0.09%

0.09%

0.00%

-0.08%

0

2,000

4,000

6,000

3Q10

4Q10

1Q11

2Q11

3Q11

-1.0%

0.0%

1.0%

2.0%

3.0%

Average Loans

Net Charge-offs Ratio

30

3Q11 Earnings

Conference Call

Credit Quality -

Other Retail

24,281

24,983

24,691

24,498

24,773

1.65%

1.45%

1.33%

1.16%

1.11%

0

7,000

14,000

21,000

28,000

3Q10

4Q10

1Q11

2Q11

3Q11

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 1.1% over 2Q11, as demand for auto loans remained strong

Net charge-offs continued to decline while nonperforming loans remained stable

Slight increase in early stage delinquencies; late stage delinquencies remained stable

3Q10

2Q11

3Q11

Average Loans

24,281

24,498

24,773

30-89 Delinquencies

0.81%

0.62%

0.67%

90+ Delinquencies

0.28%

0.20%

0.20%

Nonperforming Loans

0.11%

0.13%

0.12%

Installment

$5,379

Auto Loans

$11,279

Revolving

Credit

$3,325

Student

Lending

$4,790

$ in millions

31

3Q11 Earnings

Conference Call

$ in millions

3Q11 

2Q11 

1Q11 

4Q10 

3Q10 

Total equity

34,210

$         

33,341

$         

31,335

$         

30,322

$         

29,943

$         

Preferred stock

(2,606)

(2,606)

(1,930)

(1,930)

(1,930)

Noncontrolling interests

(980)

(889)

(828)

(803)

(792)

Goodwill (net of deferred tax liability)

(8,265)

(8,300)

(8,317)

(8,337)

(8,429)

Intangible assets (exclude mortgage servicing rights)

(1,209)

(1,277)

(1,342)

(1,376)

(1,434)

Tangible common equity (a)

21,150

20,269

18,918

17,876

17,358

Tier 1 Capital, determined in accordance with prescribed

   regulatory requirements using Basel I definition

28,081

27,795

26,821

25,947

24,908

Trust preferred securities

(2,675)

(3,267)

(3,949)

(3,949)

(3,949)

Preferred stock

(2,606)

(2,606)

(1,930)

(1,930)

(1,930)

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

(695)

(695)

(694)

(692)

(694)

Tier 1 common equity using Basel I definition (b)

22,105

21,227

20,248

19,376

18,335

Tier 1 capital, determined in accordance with prescribed

   regulatory requirements using anticipated Basel III definition

24,902

23,931

21,855

20,854

Preferred stock

(2,606)

(2,606)

(1,930)

(1,930)

Noncontrolling interests of real estate investment trusts

(667)

(667)

(667)

(667)

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

21,629

20,658

19,258

18,257

Total assets

330,141

320,874

311,462

307,786

290,654

Goodwill (net of deferred tax liability)

(8,265)

(8,300)

(8,317)

(8,337)

(8,429)

Intangible assets (exclude mortgage servicing rights)

(1,209)

(1,277)

(1,342)

(1,376)

(1,434)

Tangible assets (d)

320,667

311,297

301,803

298,073

280,791

Risk-weighted assets, determined in accordance

  with prescribed regulatory requirements using Basel I definition (e)

261,115

252,882

247,486

247,619

242,490

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

264,103

256,205

250,931

251,704

Ratios

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

6.6%

6.5%

6.3%

6.0%

6.2%

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

8.5%

8.4%

8.2%

7.8%

7.6%

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

8.2%

8.1%

7.7%

7.3%

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

8.1%

8.0%

7.6%

7.2%

7.2%

3Q11 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

3Q11 Earnings

Conference Call

U.S. Bancorp

3Q11 Earnings

Conference Call

October 19, 2011