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 18, 2012

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 18, 2012, U.S. Bancorp (the “Company”) issued a press release reporting quarter ended June 30, 2012 results, and posted on its website its 2Q12 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 2Q12 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated herein by reference. The information included in the 2Q12 Earnings Conference Call Presentation is considered to be “furnished” under the Securities Exchange Act of 1934. The press release and 2Q12 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 18, 2012, deemed “filed” under the Securities Exchange Act of 1934.

99.2 2Q12 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 18, 2012

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 RECORD EARNINGS FOR THE SECOND

QUARTER OF 2012

17.6 Percent Increase in Net Income was Driven by an 8.1 Percent Increase in Total Net Revenue and Lower Credit Costs

MINNEAPOLIS, July 18, 2012 — U.S. Bancorp (NYSE: USB) today reported net income of $1,415 million for the second quarter of 2012, or $.71 per diluted common share. Earnings for the second quarter of 2012 were driven by year-over-year growth in total net revenue and a lower provision for credit losses. Highlights for the second quarter of 2012 included:

Ø Strong new lending activity of $67.2 billion during the second quarter, including:

• $36.7 billion of new and renewed commercial and commercial real estate commitments

• $2.4 billion of lines related to new credit card accounts

• $28.1 billion of mortgage and other retail loan originations

Ø Growth in average total loans of 7.7 percent over the second quarter of 2011 (10.0 percent excluding covered loans)

• Growth in average total loans of 1.9 percent on a linked quarter basis (2.4 percent excluding covered loans)

• Growth in average total commercial loans of 19.9 percent over the second quarter of 2011 and 5.1 percent over the first quarter of 2012

• Growth in quarterly average commercial and commercial real estate commitments of 24.3 percent year-over-year and 3.7 percent over the prior quarter

Ø Significant growth in average deposits of 10.5 percent over the second quarter of 2011, including:

• Growth in average noninterest-bearing deposits of 32.5 percent

• Growth in average total savings deposits of 4.4 percent

Ø Total net revenue growth of 8.1 percent over the second quarter of 2011 and 2.8 percent on a linked quarter basis

Ø Net interest income growth of 6.6 percent over the second quarter of 2011 (.9 percent linked quarter)

• Average earning assets growth of 9.4 percent year-over-year

• Average earning assets growth of 1.2 percent on a linked quarter basis

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• Continued strong growth in lower cost core deposit funding on a year-over-year basis

• Net interest margin of 3.58 percent for the second quarter of 2012, compared with 3.67 percent for the second quarter of 2011, and 3.60 percent for the first quarter of 2012

Ø Year-over-year growth in fee-based revenue of 9.7 percent, driven by higher mortgage banking revenue. Linked quarter growth of 5.2 percent, including a 9.8 percent increase in payments-related revenue and an 8.4 percent increase in mortgage banking revenue

Ø Positive operating leverage on both a year-over-year and a linked quarter basis

Ø Net charge-offs and nonperforming assets declined on a linked quarter and year-over-year basis.

Provision for credit losses was $50 million less than net charge-offs.

• Net charge-offs declined 8.9 percent from the first quarter of 2012

• Annualized net charge-offs to average total loans ratio declined to .98 percent

• Early and late stage loan delinquencies as a percentage of ending loan balances declined in the majority of loan categories

• Nonperforming assets (excluding covered assets) decreased 6.9 percent from the first quarter of 2012 (12.3 percent including covered assets)

• Allowance to nonperforming assets (excluding covered assets) was 210 percent at June 30, 2012, compared with 199 percent at March 31, 2012, and 159 percent at June 30, 2011

• Allowance to period-end loans (excluding covered loans) was 2.34 percent at June 30, 2012, compared with 2.44 percent at March 31, 2012, and 2.83 percent at June 30, 2011

Ø Capital generation continues to fortify capital position; ratios at June 30, 2012 were:

• Tier 1 capital ratio of 10.7 percent

• Total risk based capital ratio of 13.0 percent

• Tier 1 common equity to risk-weighted assets ratio of 8.8 percent

• Tier 1 common equity ratio of approximately 7.9 percent using proposed rules for the Basel III standardized approach released June 2012

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U.S. Bancorp Reports Second Quarter 2012 Results

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EARNINGS SUMMARY															Table 1
($ in millions, except per-share data)	2Q 2012		1Q 2012		2Q 2011		Percent Change 2Q12 vs 1Q12		Percent Change 2Q12 vs 2Q11		YTD 2012		YTD 2011		Percent Change
Net income attributable to U.S. Bancorp	$	1,415	$	1,338	$	1,203		5.8		17.6	$	2,753	$	2,249		22.4
Diluted earnings per common share	$	.71	$	.67	$	.60		6.0		18.3	$	1.38	$	1.12		23.2
Return on average assets (%)		1.67		1.60		1.54						1.64		1.46
Return on average common equity (%)		16.5		16.2		15.9						16.3		15.2
Net interest margin (%)		3.58		3.60		3.67						3.59		3.68
Efficiency ratio (%)		51.1		51.9		51.6						51.5		51.4
Tangible efficiency ratio (%) (a)		49.8		50.5		50.0						50.1		49.8
Dividends declared per common share	$	.195	$	.195	$	.125		—		56.0	$	.390	$	.250		56.0
Book value per common share (period-end)	$	17.45	$	16.94	$	15.50		3.0		12.6

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

Net income attributable to U.S. Bancorp was $1,415 million for the second quarter of 2012, 17.6 percent higher than the $1,203 million for the second quarter of 2011 and 5.8 percent higher than the $1,338 million for the first quarter of 2012. Diluted earnings per common share of $.71 in the second quarter of 2012 were $.11 higher than the second quarter of 2011 and $.04 higher than the previous quarter. Return on average assets and return on average common equity were 1.67 percent and 16.5 percent, respectively, for the second quarter of 2012, compared with 1.54 percent and 15.9 percent, respectively, for the second quarter of 2011. During the second quarter, the Company recorded an accrual related to its portion of indemnification obligations associated with Visa Inc. (NYSE: V) litigation matters, which reduced diluted earnings per common share by $.02 (“Visa accrual”). The provision for credit losses for the second quarter of 2012 was $50 million lower than net charge-offs, compared with a provision for credit losses $90 million lower than net charge-offs for the first quarter of 2012 and $175 million lower than net charge-offs for the second quarter of 2011.

U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “I am exceptionally proud of our Company’s second quarter 2012 results, as we reported record diluted earnings per common share of $.71, an 18.3 percent increase over the prior year’s quarter and a 6.0 percent increase over the first quarter of 2012. Further, our performance metrics remained industry-leading and within the

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U.S. Bancorp Reports Second Quarter 2012 Results

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range of our long-term objectives, with a return on average assets of 1.67 percent, a return on average common equity of 16.5 percent and an efficiency ratio of 51.1 percent.

“Our results benefited from solid balance sheet and fee income growth this quarter. Both average loans and average deposits increased over the second quarter of last year and the prior quarter. On a linked quarter basis, average total loans grew by 1.9 percent, slightly higher than the linked quarter growth we experienced in the first quarter, driven once again by the commercial loan and residential mortgage categories, indicating that we are continuing to gain market share. Our investment in mortgage banking over the past few years was very well-timed, as we posted both record origination volume and revenue in the second quarter. All three categories of payments-related revenue were seasonally strong this quarter. In fact, we achieved growth in virtually every fee category this period versus the prior quarter. Expenses were well-controlled, and we achieved positive operating leverage on both a year-over-year and linked quarter basis.

“Credit quality continued to improve this quarter with net charge-offs and nonperforming assets (excluding covered assets) declining by 8.9 percent and 6.9 percent, respectively, from the prior quarter. Net charge-offs as a percent of average total loans in the second quarter were .98 percent – moving below our “through the cycle” average net charge-off ratio of 1 percent. Given the positive changes in nonperforming assets, as well as the favorable changes in early and late-stage delinquencies and criticized assets, we expect further improvement in credit quality in the third quarter.

“Our capital position remains strong with a Tier 1 common equity ratio of 8.8 percent and a Tier 1 capital ratio of 10.7 percent at June 30th. On June 7th, the Federal Reserve released its proposed Basel III rules for comment. Based on our preliminary assessment of the full impact of the proposed rules for the Basel III standardized approach, our Tier 1 common equity ratio was approximately 7.9 percent at June 30th. Year-to-date we have returned 62 percent of our earnings to our shareholders in the form of dividends and share repurchases.

“Consistent, predictable, repeatable – these are the three words that best describe and frame our Company’s operating philosophy and performance objectives. We continue to invest for the long-term in a diverse, stable mix of businesses, products, and services that are delivered by dedicated and engaged employees, fulfilling and supporting the needs of our customers and the communities we serve. Our Company’s record earnings this quarter demonstrate the benefits we have derived from our diverse business mix and adherence to a straightforward approach to doing business that continues to allow us to deliver industry-leading performance and returns to our shareholders.”

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U.S. Bancorp Reports Second Quarter 2012 Results

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INCOME STATEMENT HIGHLIGHTS																	Table 2
(Taxable-equivalent basis, $ in millions, except per-share data)	2Q 2012		1Q 2012		2Q 2011		Percent Change 2Q12 vs 1Q12			Percent Change 2Q12 vs 2Q11			YTD 2012		YTD 2011		Percent Change
Net interest income	$	2,713	$	2,690	$	2,544		.9			6.6		$	5,403	$	5,051		7.0
Noninterest income		2,355		2,239		2,146		5.2			9.7			4,594		4,158		10.5
Total net revenue		5,068		4,929		4,690		2.8			8.1			9,997		9,209		8.6
Noninterest expense		2,601		2,560		2,425		1.6			7.3			5,161		4,739		8.9
Income before provision and taxes		2,467		2,369		2,265		4.1			8.9			4,836		4,470		8.2
Provision for credit losses		470		481		572		(2.3	)		(17.8	)		951		1,327		(28.3	)
Income before taxes		1,997		1,888		1,693		5.8			18.0			3,885		3,143		23.6
Taxable-equivalent adjustment		55		56		56		(1.8	)		(1.8	)		111		111		—
Applicable income taxes		564		527		458		7.0			23.1			1,091		824		32.4
Net income		1,378		1,305		1,179		5.6			16.9			2,683		2,208		21.5
Net (income) loss attributable to noncontrolling interests		37		33		24		12.1			54.2			70		41		70.7
Net income attributable to U.S. Bancorp	$	1,415	$	1,338	$	1,203		5.8			17.6		$	2,753	$	2,249		22.4
Net income applicable to U.S. Bancorp common shareholders	$	1,345	$	1,285	$	1,167		4.7			15.3		$	2,630	$	2,170		21.2
Diluted earnings per common share	$	.71	$	.67	$	.60		6.0			18.3		$	1.38	$	1.12		23.2

Net income attributable to U.S. Bancorp for the second quarter of 2012 was $212 million (17.6 percent) higher than the second quarter of 2011 and $77 million (5.8 percent) higher than the first quarter of 2012. The increase in net income year-over-year and on a linked quarter basis was 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 noninterest expense.

Total net revenue on a taxable-equivalent basis for the second quarter of 2012 was $5,068 million; $378 million (8.1 percent) higher than the second quarter of 2011, reflecting a 6.6 percent increase in net interest income and a 9.7 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 mortgage banking revenue and merchant processing services revenue, partially offset by reductions in credit and debit card revenue and ATM processing services revenue. Total net revenue on a taxable-equivalent basis was $139 million (2.8 percent) higher on a linked quarter basis, principally due to strong mortgage banking and payments-related revenue.

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U.S. Bancorp Reports Second Quarter 2012 Results

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Total noninterest expense in the second quarter of 2012 was $2,601 million; $176 million (7.3 percent) higher than the second quarter of 2011 and $41 million (1.6 percent) higher than the first quarter of 2012. The increase in total noninterest expense year-over-year was primarily due to higher compensation expense, employee benefits costs, mortgage servicing review-related professional services costs and other expense, which included the Visa accrual. Total noninterest expense on a linked quarter basis was higher primarily due to the Visa accrual, as increases in compensation and professional services expenses were offset by lower marketing and business development expense and seasonally lower employee benefits costs.

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 2012 was $470 million, $11 million lower than the first quarter of 2012 and $102 million lower than the second quarter of 2011. The provision for credit losses was lower than net charge-offs by $50 million in the second quarter of 2012, $90 million in the first quarter of 2012, and $175 million in the second quarter of 2011. Net charge-offs in the second quarter of 2012 were $520 million, compared with $571 million in the first quarter of 2012, and $747 million in the second quarter of 2011. Given current economic conditions, the Company expects the level of net charge-offs to be modestly lower in the third quarter of 2012.

Nonperforming assets include assets originated or acquired by the Company, as well as loans and other real estate acquired under FDIC loss sharing agreements that substantially reduce the risk of credit losses to the Company (“covered assets”). Excluding covered assets, nonperforming assets were $2,256 million at June 30, 2012, $2,423 million at March 31, 2012, and $3,262 million at June 30, 2011. The decline on a year-over-year basis was led by a reduction in commercial and commercial real estate nonperforming assets. Notably, commercial mortgage and construction and development nonperforming assets declined by $674 million (49.4 percent), as the Company continued to resolve and reduce exposure to these problem assets. On a linked quarter basis, there was a reduction in nonperforming assets in a majority of the portfolios, reflecting the stabilizing economy. Beginning in the second quarter of 2012, the Company included junior lien loans and lines greater than 120 days past due, as well as junior lien loans and lines behind a first lien greater than 180 days past due or in nonaccrual status, as nonperforming loans. Other retail nonperforming assets increased $117 million compared with the first quarter of 2012 primarily due to this policy change. Covered nonperforming assets were $773 million at June 30, 2012, $1,031 million at March 31, 2012, and $1,389 million at June 30, 2011. The ratio of the allowance for credit losses to period-end loans, excluding covered loans, was 2.34 percent at June 30, 2012, compared with 2.44 percent at March 31, 2012, and 2.83

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percent at June 30, 2011. The ratio of the allowance for credit losses to period-end loans, including covered loans, was 2.25 percent at June 30, 2012, compared with 2.32 percent at March 31, 2012, and 2.66 percent at June 30, 2011. The Company expects total nonperforming assets to trend lower in the third quarter of 2012.

NET INTEREST INCOME																						Table 3
(Taxable-equivalent basis; $ in millions)	2Q 2012			1Q 2012			2Q 2011			Change 2Q12 vs 1Q12			Change 2Q12 vs 2Q11			YTD 2012			YTD 2011			Change
Components of net interest income
Income on earning assets	$	3,285		$	3,289		$	3,177		$	(4	)	$	108		$	6,574		$	6,334		$	240
Expense on interest-bearing liabilities		572			599			633			(27	)		(61	)		1,171			1,283			(112	)
Net interest income	$	2,713		$	2,690		$	2,544		$	23		$	169		$	5,403		$	5,051		$	352
Average yields and rates paid
Earning assets yield		4.34	%		4.40	%		4.59	%		(.06	)%		(.25	)%		4.37	%		4.62	%		(.25	)%
Rate paid on interest-bearing liabilities		1.02			1.07			1.14			(.05	)		(.12	)		1.04			1.16			(.12	)
Gross interest margin		3.32	%		3.33	%		3.45	%		(.01	)%		(.13	)%		3.33	%		3.46	%		(.13	)%
Net interest margin		3.58	%		3.60	%		3.67	%		(.02	)%		(.09	)%		3.59	%		3.68	%		(.09	)%
Average balances
Investment securities (a)	$	73,181		$	71,476		$	62,955		$	1,705		$	10,226		$	72,329		$	59,698		$	12,631
Loans		214,069			210,161			198,810			3,908			15,259			212,115			198,194			13,921
Earning assets		303,754			300,044			277,571			3,710			26,183			301,899			275,766			26,133
Interest-bearing liabilities		226,229			225,314			221,881			915			4,348			225,771			222,878			2,893

(a) Excludes unrealized gain (loss)

Net Interest Income

Net interest income on a taxable-equivalent basis in the second quarter of 2012 was $2,713 million, compared with $2,544 million in the second quarter of 2011, an increase of $169 million (6.6 percent). The increase was principally the result of growth in average earning assets and lower cost core deposit funding. The year-over-year increase was also impacted by the first quarter 2012 change in the classification of credit card balance transfer fees. Average earning assets were $26.2 billion (9.4 percent) higher than the second quarter of 2011, driven by increases of $15.3 billion (7.7 percent) in average total loans and $10.2 billion (16.2 percent) in average investment securities. Net interest income increased $23 million (.9 percent) on a linked quarter basis, the result of growth in average earning assets, including lower yielding investment securities and average total loans. The net interest margin in the second quarter of 2012 was 3.58 percent, compared with 3.67 percent in the second quarter of 2011, and 3.60 percent in the first quarter of 2012. The

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expected decline in the net interest margin year-over-year reflected higher balances in lower yielding investment securities and a decline in loan yields, partially offset by lower deposit rates and a reduction in the average cash balances held at the Federal Reserve compared with the second quarter of 2011, as well as the credit card balance transfer fees classification change in the first quarter of 2012. On a linked quarter basis, the decline in the net interest margin reflected an increase in lower yielding investment securities and lower loan yields, partially offset by a reduction in average cash balances held at the Federal Reserve and lower rates on long-term debt.

AVERAGE LOANS																	Table 4
($ in millions)	2Q 2012		1Q 2012		2Q 2011		Percent Change 2Q12 vs 1Q12			Percent Change 2Q12 vs 2Q11			YTD 2012		YTD 2011		Percent Change
Commercial	$	54,362	$	51,309	$	44,135		6.0			23.2		$	52,836	$	43,413		21.7
Lease financing		5,658		5,822		5,919		(2.8	)		(4.4	)		5,740		5,974		(3.9	)
Total commercial		60,020		57,131		50,054		5.1			19.9			58,576		49,387		18.6
Commercial mortgages		30,624		29,894		28,429		2.4			7.7			30,259		28,071		7.8
Construction and development		5,925		6,091		7,070		(2.7	)		(16.2	)		6,008		7,269		(17.3	)
Total commercial real estate		36,549		35,985		35,499		1.6			3.0			36,267		35,340		2.6
Residential mortgages		39,166		37,831		32,734		3.5			19.6			38,498		32,258		19.3
Credit card		16,696		16,778		15,884		(.5	)		5.1			16,737		16,004		4.6
Retail leasing		5,151		5,095		4,808		1.1			7.1			5,123		4,728		8.4
Home equity and second mortgages		17,598		17,933		18,634		(1.9	)		(5.6	)		17,765		18,717		(5.1	)
Other		25,151		24,902		24,498		1.0			2.7			25,027		24,594		1.8
Total other retail		47,900		47,930		47,940		(.1	)		(.1	)		47,915		48,039		(.3	)
Total loans, excluding covered loans		200,331		195,655		182,111		2.4			10.0			197,993		181,028		9.4
Covered loans		13,738		14,506		16,699		(5.3	)		(17.7	)		14,122		17,166		(17.7	)
Total loans	$	214,069	$	210,161	$	198,810		1.9			7.7		$	212,115	$	198,194		7.0

Average total loans were $15.3 billion (7.7 percent) higher in the second quarter of 2012 than the second quarter of 2011, driven by growth in total commercial loans (19.9 percent), residential mortgages (19.6 percent), credit card loans (5.1 percent) and total commercial real estate loans (3.0 percent). These increases were partially offset by declines in total other retail (.1 percent) and covered loans (17.7 percent). Average total loans, excluding covered loans, were higher by 10.0 percent year-over-year. Impacting the increase in average credit card loans was a purchase of approximately $700 million of consumer credit cards

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in the fourth quarter of 2011. Average total loans were $3.9 billion (1.9 percent) higher in the second quarter of 2012 than the first quarter of 2012 with increases in total commercial loans (5.1 percent), residential mortgages (3.5 percent) and total commercial real estate loans (1.6 percent), partially offset by a decrease in covered loans (5.3 percent). Excluding covered loans, average total loans grew by 2.4 percent on a linked quarter basis.

Average investment securities in the second quarter of 2012 were $10.2 billion (16.2 percent) higher year-over-year and $1.7 billion (2.4 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.

AVERAGE DEPOSITS																	Table 5
($ in millions)	2Q 2012		1Q 2012		2Q 2011		Percent Change 2Q12 vs 1Q12			Percent Change 2Q12 vs 2Q11			YTD 2012		YTD 2011		Percent Change
Noninterest-bearing deposits	$	64,531	$	63,583	$	48,721		1.5			32.5		$	64,057	$	46,467		37.9
Interest-bearing savings deposits
Interest checking		45,928		47,458		43,334		(3.2	)		6.0			46,693		42,991		8.6
Money market savings		44,456		45,927		45,014		(3.2	)		(1.2	)		45,191		45,330		(.3	)
Savings accounts		29,556		28,846		26,522		2.5			11.4			29,201		25,929		12.6
Total of savings deposits		119,940		122,231		114,870		(1.9	)		4.4			121,085		114,250		6.0
Time certificates of deposit less than $100,000		14,768		14,956		15,368		(1.3	)		(3.9	)		14,862		15,316		(3.0	)
Time deposits greater than $100,000		32,062		27,514		30,452		16.5			5.3			29,788		30,838		(3.4	)
Total interest-bearing deposits		166,770		164,701		160,690		1.3			3.8			165,735		160,404		3.3
Total deposits	$	231,301	$	228,284	$	209,411		1.3			10.5		$	229,792	$	206,871		11.1

Average total deposits for the second quarter of 2012 were $21.9 billion (10.5 percent) higher than the second quarter of 2011. Average noninterest-bearing deposits increased $15.8 billion (32.5 percent) year-over-year, with growth in average balances in a majority of the lines of business including Wholesale Banking, Wealth Management and Securities Services, and Consumer and Small Business Banking. Average total savings deposits were $5.1 billion (4.4 percent) higher year-over-year, the result of growth in Consumer and Small Business Banking and corporate trust average balances, partially offset by lower broker-dealer average balances. Average time certificates of deposit less than $100,000 were slightly lower, while time deposits greater than $100,000 were $1.6 billion (5.3 percent) higher than the second quarter of 2011, principally in broker-dealer average balances.

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Average total deposits increased $3.0 billion (1.3 percent) over the first quarter of 2012. Average noninterest-bearing deposits increased by $948 million (1.5 percent) on a linked quarter basis, mainly driven by growth in Consumer and Small Business Banking. Total average savings deposits decreased $2.3 billion (1.9 percent) on a linked quarter basis due to lower corporate and institutional trust and Wholesale Banking average balances, partially offset by an increase in Consumer and Small Business Banking average balances. Compared with the first quarter of 2012, average time certificates of deposit less than $100,000 were flat, while time deposits greater than $100,000 increased $4.5 billion (16.5 percent), primarily in Wholesale Banking.

NONINTEREST INCOME																					Table 6
($ in millions)	2Q 2012			1Q 2012		2Q 2011			Percent Change 2Q12 vs 1Q12			Percent Change 2Q12 vs 2Q11			YTD 2012			YTD 2011			Percent Change
Credit and debit card revenue	$	235		$	202	$	286			16.3			(17.8	)	$	437		$	553			(21.0	)
Corporate payment products revenue		190			175		185			8.6			2.7			365			360			1.4
Merchant processing services		359			337		338			6.5			6.2			696			639			8.9
ATM processing services		89			87		114			2.3			(21.9	)		176			226			(22.1	)
Trust and investment management fees		262			252		258			4.0			1.6			514			514			—
Deposit service charges		156			153		162			2.0			(3.7	)		309			305			1.3
Treasury management fees		142			134		144			6.0			(1.4	)		276			281			(1.8	)
Commercial products revenue		216			211		218			2.4			(.9	)		427			409			4.4
Mortgage banking revenue		490			452		239			8.4			nm			942			438			nm
Investment products fees and commissions		38			35		35			8.6			8.6			73			67			9.0
Securities gains (losses), net		(19	)		—		(8	)		nm			nm			(19	)		(13	)		46.2
Other		197			201		175			(2.0	)		12.6			398			379			5.0
Total noninterest income	$	2,355		$	2,239	$	2,146			5.2			9.7		$	4,594		$	4,158			10.5

Noninterest Income

Second quarter noninterest income was $2,355 million; $209 million (9.7 percent) higher than the second quarter of 2011 and $116 million (5.2 percent) higher than the first quarter of 2012. The year-over-year increase in noninterest income was primarily driven by strong mortgage banking revenue and higher merchant processing services revenue. The $251 million increase in mortgage banking revenue over the same quarter of last year was principally due to higher origination and sales revenue. The $21 million (6.2 percent) increase in merchant processing services revenue was primarily due to increased transaction volumes. Other income increased $22 million (12.6 percent) year-over-year, principally due to higher retail

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lease residual revenue. Offsetting these positive variances was a $51 million (17.8 percent) decrease in credit and debit card revenue due to lower debit card interchange fees as a result of fourth quarter of 2011 legislation, net of mitigation efforts, and a change in the classification of credit card balance transfer fees from noninterest income to interest income beginning in the first quarter of 2012. However, these negative variances were partially offset by higher transaction volumes and an $18 million credit related to the final expiration of debit card customer rewards. ATM processing services revenue decreased $25 million (21.9 percent), due to classifying surcharge revenue passed through to others as a reduction of revenue beginning in the first quarter of 2012, rather than occupancy expense as in previous periods. In addition, the second quarter of 2012 had an $11 million unfavorable change in net securities losses compared with the same quarter of 2011, as the Company recognized impairment on a number of securities following the recent downgrades of money center banks by a rating agency.

Noninterest income was $116 million (5.2 percent) higher in the second quarter of 2012 than the first quarter of 2012, primarily due to strong mortgage banking and payments-related revenue. Credit and debit card revenue increased $33 million (16.3 percent) due to higher transaction volumes and legislative-mitigation efforts, including a credit for the final expiration of debit card customer rewards. Corporate payment products revenue increased $15 million (8.6 percent) and merchant processing services revenue increased $22 million (6.5 percent), primarily due to higher volumes. Mortgage banking revenue was $38 million (8.4 percent) higher compared with the first quarter of 2012, principally due to higher mortgage production. Trust and investment management fees increased $10 million (4.0 percent) on a linked quarter basis, reflecting account growth, including business expansion. These positive variances were partially offset by the $19 million of net securities losses in the current quarter.

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July 18, 2012

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NONINTEREST EXPENSE															Table 7
($ in millions)	2Q 2012		1Q 2012		2Q 2011		Percent Change 2Q12 vs 1Q12			Percent Change 2Q12 vs 2Q11			YTD 2012		YTD 2011		Percent Change
Compensation	$	1,076	$	1,052	$	1,004		2.3			7.2		$	2,128	$	1,963		8.4
Employee benefits		229		260		210		(11.9	)		9.0			489		440		11.1
Net occupancy and equipment		230		220		249		4.5			(7.6	)		450		498		(9.6	)
Professional services		136		84		82		61.9			65.9			220		152		44.7
Marketing and business development		80		109		90		(26.6	)		(11.1	)		189		155		21.9
Technology and communications		201		201		189		—			6.3			402		374		7.5
Postage, printing and supplies		77		74		76		4.1			1.3			151		150		.7
Other intangibles		70		71		75		(1.4	)		(6.7	)		141		150		(6.0	)
Other		502		489		450		2.7			11.6			991		857		15.6
Total noninterest expense	$	2,601	$	2,560	$	2,425		1.6			7.3		$	5,161	$	4,739		8.9

Noninterest Expense

Noninterest expense in the second quarter of 2012 totaled $2,601 million, an increase of $176 million (7.3 percent) over the second quarter of 2011, and a $41 million (1.6 percent) increase over the first quarter of 2012. The increase in total noninterest expense year-over-year was primarily due to higher compensation expense, employee benefits expense, professional services expense and other expense. Compensation and employee benefits expense increased over the prior year by $72 million (7.2 percent) and $19 million (9.0 percent), respectively. The increase in compensation expense was primarily the result of growth in staffing for business initiatives and mortgage servicing-related activities, in addition to merit increases. Employee benefits expense increased principally due to higher pension costs and staffing levels. Professional services expense was $54 million (65.9 percent) higher year-over-year, principally due to mortgage servicing review-related projects. Technology and communications expense was $12 million (6.3 percent) higher year-over-year, due to business expansion and technology projects. In addition, other expense increased $52 million (11.6 percent) and included the Visa accrual and higher mortgage servicing costs, partially offset by lower FDIC insurance expense. These increases were partly offset by a decrease in net occupancy and equipment expense of $19 million (7.6 percent), principally reflecting the change in classification in the first quarter of 2012 of ATM surcharge revenue passed through to others and a $10 million (11.1 percent) decrease in marketing and business development expense due to the timing of advertising campaigns.

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Noninterest expense was $41 million (1.6 percent) higher than the first quarter of 2012, primarily due to the Visa accrual. Compensation expense increased $24 million (2.3 percent) on a linked quarter basis, due to the impact of merit increases and higher staffing. Professional services expense was $52 million (61.9 percent) higher due to mortgage servicing review-related projects. Other expense increased by $13 million (2.7 percent) primarily due to the Visa accrual and costs related to investments in affordable housing and other tax-advantaged projects, partially offset by lower regulatory and insurance-related costs. These increases were partially offset by a $31 million (11.9 percent) decrease in employee benefits expense reflecting seasonally lower costs and a $29 million (26.6 percent) decline in marketing and business development expense due to the timing of charitable contributions and payments-related initiatives.

Provision for Income Taxes

The provision for income taxes for the second quarter of 2012 resulted in a tax rate on a taxable-equivalent basis of 31.0 percent (effective tax rate of 29.0 percent), compared with 30.4 percent (effective tax rate of 28.0 percent) in the second quarter of 2011 and 30.9 percent (effective tax rate of 28.8 percent) in the first quarter of 2012.

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July 18, 2012

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ALLOWANCE FOR CREDIT LOSSES										Table 8
($ in millions)	2Q 2012			1Q 2012			4Q 2011			3Q 2011			2Q 2011
Balance, beginning of period	$	4,919		$	5,014		$	5,190		$	5,308		$	5,498
Net charge-offs
Commercial		56			78			51			90			83
Lease financing		15			8			21			9			13
Total commercial		71			86			72			99			96
Commercial mortgages		47			35			37			68			64
Construction and development		6			36			47			57			100
Total commercial real estate		53			71			84			125			164
Residential mortgages		109			112			119			122			119
Credit card		170			169			193			178			216
Retail leasing		—			1			—			(1	)		—
Home equity and second mortgages		63			74			77			74			76
Other		54			57			75			69			71
Total other retail		117			132			152			142			147
Total net charge-offs, excluding covered loans		520			570			620			666			742
Covered loans		—			1			2			3			5
Total net charge-offs		520			571			622			669			747
Provision for credit losses		470			481			497			519			572
Net change for credit losses to be reimbursed by the FDIC		(5	)		(5	)		(51	)		32			(15	)
Balance, end of period	$	4,864		$	4,919		$	5,014		$	5,190		$	5,308
Components
Allowance for loan losses, excluding losses to be reimbursed by the FDIC	$	4,507		$	4,575		$	4,678		$	4,823		$	4,977
Allowance for credit losses to be reimbursed by the FDIC		65			70			75			127			94
Liability for unfunded credit commitments		292			274			261			240			237
Total allowance for credit losses	$	4,864		$	4,919		$	5,014		$	5,190		$	5,308
Gross charge-offs	$	631		$	681		$	718		$	762		$	850
Gross recoveries	$	111		$	110		$	96		$	93		$	103
Allowance for credit losses as a percentage of
Period-end loans, excluding covered loans		2.34			2.44			2.52			2.66			2.83
Nonperforming loans, excluding covered loans		247			238			228			196			188
Nonperforming assets, excluding covered assets		210			199			191			166			159
Period-end loans		2.25			2.32			2.39			2.53			2.66
Nonperforming loans		196			174			163			145			140
Nonperforming assets		161			142			133			120			114

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July 18, 2012

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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 continued to slowly improve. The allowance for credit losses was $4,864 million at June 30, 2012, compared with $4,919 million at March 31, 2012, and $5,308 million at June 30, 2011. Total net charge-offs in the second quarter of 2012 were $520 million, compared with $571 million in the first quarter of 2012 and $747 million in the second quarter of 2011. The decrease in total net charge-offs was due to improvement in the commercial and commercial real estate and other retail portfolios, compared with the first quarter of 2012. The Company recorded $470 million of provision for credit losses, $50 million less than net charge-offs, during the second quarter of 2012. The allowance for credit losses reimbursable by the FDIC decreased to $65 million at June 30, 2012.

Commercial and commercial real estate loan net charge-offs decreased to $124 million (.52 percent of average loans outstanding) in the second quarter of 2012, compared with $157 million (.68 percent of average loans outstanding) in the first quarter of 2012, and $260 million (1.22 percent of average loans outstanding) in the second quarter of 2011.

Residential mortgage loan net charge-offs decreased to $109 million (1.12 percent of average loans outstanding) in the second quarter of 2012, compared with $112 million (1.19 percent of average loans outstanding) in the first quarter of 2012 and $119 million (1.46 percent of average loans outstanding) in the second quarter of 2011. Credit card loan net charge-offs remained relatively flat at $170 million (4.10 percent of average loans outstanding) in the second quarter of 2012, compared with $169 million (4.05 percent of average loans outstanding) in the first quarter of 2012, and lower than the $216 million (5.45 percent of average loans outstanding) in the second quarter of 2011. Total other retail loan net charge-offs were $117 million (.98 percent of average loans outstanding) in the second quarter of 2012, lower than both the $132 million (1.11 percent of average loans outstanding) in the first quarter of 2012, and the $147 million (1.23 percent of average loans outstanding) in the second quarter of 2011.

The ratio of the allowance for credit losses to period-end loans was 2.25 percent (2.34 percent excluding covered loans) at June 30, 2012, compared with 2.32 percent (2.44 percent excluding covered loans) at March 31, 2012, and 2.66 percent (2.83 percent excluding covered loans) at June 30, 2011. The ratio of the allowance for credit losses to nonperforming loans was 196 percent (247 percent excluding covered loans) at June 30, 2012, compared with 174 percent (238 percent excluding covered loans) at March 31, 2012, and 140 percent (188 percent excluding covered loans) at June 30, 2011.

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July 18, 2012

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CREDIT RATIOS							Table 9
(Percent)	2Q 2012		1Q 2012		4Q 2011		3Q 2011			2Q 2011
Net charge-offs ratios (a)
Commercial		.41		.61		.41		.77			.75
Lease financing		1.07		.55		1.43		.61			.88
Total commercial		.48		.61		.52		.75			.77
Commercial mortgages		.62		.47		.50		.93			.90
Construction and development		.41		2.38		2.91		3.43			5.67
Total commercial real estate		.58		.79		.93		1.39			1.85
Residential mortgages		1.12		1.19		1.30		1.42			1.46
Credit card (b)		4.10		4.05		4.71		4.40			5.45
Retail leasing		—		.08		—		(.08	)		—
Home equity and second mortgages		1.44		1.66		1.67		1.59			1.64
Other		.86		.92		1.19		1.11			1.16
Total other retail		.98		1.11		1.25		1.16			1.23
Total net charge-offs, excluding covered loans		1.04		1.17		1.28		1.42			1.63
Covered loans		—		.03		.05		.08			.12
Total net charge-offs		.98		1.09		1.19		1.31			1.51
Delinquent loan ratios—90 days or more past due excluding nonperforming loans (c)
Commercial		.07		.08		.08		.08			.09
Commercial real estate		.03		.04		.04		.08			.01
Residential mortgages		.80		.79		.98		1.03			1.13
Credit card		1.17		1.33		1.36		1.28			1.32
Other retail		.19		.34		.38		.36			.35
Total loans, excluding covered loans		.33		.38		.43		.43			.44
Covered loans		4.96		5.23		6.15		5.14			5.66
Total loans		.61		.70		.84		.78			.87
Delinquent loan ratios—90 days or more past due including nonperforming loans (c)
Commercial		.38		.61		.63		.79			.86
Commercial real estate		1.92		2.15		2.55		3.51			3.85
Residential mortgages		2.46		2.58		2.73		2.88			3.16
Credit card		2.29		2.58		2.65		2.81			2.91
Other retail		.57		.48		.52		.50			.51
Total loans, excluding covered loans		1.27		1.40		1.54		1.79			1.94
Covered loans		9.30		10.86		12.42		11.70			12.01
Total loans		1.76		2.04		2.30		2.53			2.77

(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 4.25 percent for the second quarter of 2012, 4.21 percent for the first quarter of 2012, 4.88 percent for the fourth quarter of 2011, 4.54 percent for the third quarter of 2011 and 5.62 percent for the second quarter of 2011.

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

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ASSET QUALITY									Table 10
($ in millions)	Jun 30 2012		Mar 31 2012		Dec 31 2011		Sep 30 2011		Jun 30 2011
Nonperforming loans
Commercial	$	172	$	280	$	280	$	342	$	349
Lease financing		23		31		32		40		43
Total commercial		195		311		312		382		392
Commercial mortgages		376		380		354		600		650
Construction and development		314		379		545		620		714
Total commercial real estate		690		759		899		1,220		1,364
Residential mortgages		660		686		650		650		671
Credit card		189		207		224		250		256
Other retail		182		65		67		66		73
Total nonperforming loans, excluding covered loans		1,916		2,028		2,152		2,568		2,756
Covered loans		570		798		926		1,010		1,041
Total nonperforming loans		2,486		2,826		3,078		3,578		3,797
Other real estate (a)		324		377		404		452		489
Covered other real estate (a)		203		233		274		293		348
Other nonperforming assets		16		18		18		16		17
Total nonperforming assets (b)	$	3,029	$	3,454	$	3,774	$	4,339	$	4,651
Total nonperforming assets, excluding covered assets	$	2,256	$	2,423	$	2,574	$	3,036	$	3,262
Accruing loans 90 days or more past due, excluding covered loans	$	663	$	750	$	843	$	814	$	804
Accruing loans 90 days or more past due	$	1,315	$	1,492	$	1,753	$	1,606	$	1,732
Performing restructured loans, excluding GNMA and covered loans	$	3,310	$	3,380	$	3,365	$	3,095	$	2,532
Performing restructured GNMA and covered loans (c)	$	1,727	$	1,675	$	1,509	$	1,025
Nonperforming assets to loans plus ORE, excluding covered assets (%)		1.11		1.22		1.32		1.60		1.77
Nonperforming assets to loans plus ORE (%)		1.40		1.63		1.79		2.11		2.32

(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) Prior to new accounting guidance in the third quarter of 2011 restructured covered loans and loans purchased from Government National Mortgage Association (“GNMA”) mortgage pools, whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veteran Affairs, were not included in restructured loans.

Nonperforming assets at June 30, 2012, totaled $3,029 million, compared with $3,454 million at March 31, 2012, and $4,651 million at June 30, 2011. Total nonperforming assets at June 30, 2012, included $773 million of covered assets. The ratio of nonperforming assets to loans and other real estate was 1.40 percent (1.11 percent excluding covered assets) at June 30, 2012, compared with 1.63 percent (1.22 percent

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excluding covered assets) at March 31, 2012, and 2.32 percent (1.77 percent excluding covered assets) at June 30, 2011. The decrease in nonperforming assets, excluding covered assets, compared with a year ago was driven primarily by reductions in the construction and development portfolio, as well as by improvement in commercial mortgages and other commercial loan portfolios, partially offset by an increase in nonperforming other retail loans primarily due to the policy change for junior lien lines and loans.

Accruing loans 90 days or more past due were $1,315 million ($663 million excluding covered loans) at June 30, 2012, lower than the $1,492 million ($750 million excluding covered loans) at March 31, 2012, and the $1,732 million ($804 million excluding covered loans) at June 30, 2011. Performing restructured loans, excluding GNMA and covered loans, decreased $70 million compared with March 31, 2012, but increased $778 million compared with June 30, 2011. The increase from a year ago was the result of a change in reporting, whereby the Company now includes residential mortgage loans under trial modification in these totals. The increase also reflects the impact of new accounting guidance adopted in the third quarter of 2011.

CAPITAL POSITION													Table 11
($ in millions)	Jun 30 2012			Mar 31 2012			Dec 31 2011			Sep 30 2011			Jun 30 2011
Total U.S. Bancorp shareholders’ equity	$	37,792		$	35,900		$	33,978		$	33,230		$	32,452
Tier 1 capital		30,044			29,976			29,173			28,081			27,795
Total risk-based capital		36,439			36,431			36,067			35,369			35,109
Tier 1 capital ratio		10.7	%		10.9	%		10.8	%		10.8	%		11.0	%
Total risk-based capital ratio		13.0			13.3			13.3			13.5			13.9
Leverage ratio		9.1			9.2			9.1			9.0			9.2
Tangible common equity to tangible assets		6.9			6.9			6.6			6.6			6.5
Tangible common equity to risk-weighted assets		8.5			8.3			8.1			8.1			8.0
Tier 1 common equity to risk-weighted assets using Basel I definition		8.8			8.7			8.6			8.5			8.4
Tier 1 common equity to risk-weighted assets using Basel III proposals published prior to June 2012		—			8.4			8.2			8.2			8.1
Tier 1 common equity to risk-weighted assets approximated using proposed rules for the Basel III standarized approach released June 2012		7.9			—			—			—			—

Total U.S. Bancorp shareholders’ equity was $37.8 billion at June 30, 2012, compared with $35.9 billion at March 31, 2012, and $32.5 billion at June 30, 2011. The Tier 1 capital ratio was 10.7 percent at June 30, 2012, compared with 10.9 percent at March 31, 2012, and 11.0 percent at June 30, 2011. The tangible common equity to tangible assets ratio was 6.9 percent at June 30, 2012 and at March 31, 2012, compared with 6.5 percent at June 30, 2011. The Tier 1 common equity to risk-weighted assets ratio was 8.8

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percent at June 30, 2012, compared with 8.7 percent at March 31, 2012, and 8.4 percent at June 30, 2011. All regulatory ratios continue to be in excess of “well-capitalized” requirements. Additionally, the Tier 1 common equity to risk-weighted assets ratio using proposed rules for the Basel III standardized approach released June 2012 was approximately 7.9 percent at June 30, 2012. During the second quarter, the Company declared $369 million in common stock dividends and repurchased common stock totaling $401 million.

COMMON SHARES													Table 12
(Millions)	2Q 2012			1Q 2012			4Q 2011			3Q 2011			2Q 2011
Beginning shares outstanding		1,901			1,910			1,913			1,925			1,927
Shares issued for stock option and stock purchase plans, acquisitions and other corporate purposes		4			7			3			1			—
Shares repurchased		(13	)		(16	)		(6	)		(13	)		(2	)
Ending shares outstanding		1,892			1,901			1,910			1,913			1,925

LINE OF BUSINESS FINANCIAL PERFORMANCE (a)																				Table 13
($ in millions)	Net Income Attributable to U.S. Bancorp						Percent Change						Net Income Attributable to U.S. Bancorp							2Q 2012
Business Line	2Q 2012		1Q 2012		2Q 2011		2Q12 vs 1Q12			2Q12 vs 2Q11			YTD 2012		YTD 2011		Percent Change			Earnings Composition
Wholesale Banking and Commercial Real Estate	$	330	$	333	$	272		(.9	)		21.3		$	663	$	482		37.6			23	%
Consumer and Small Business Banking		378		385		189		(1.8	)		nm			763		325		nm			27
Wealth Management and Securities Services		41		45		47		(8.9	)		(12.8	)		86		102		(15.7	)		3
Payment Services		316		257		363		23.0			(12.9	)		573		654		(12.4	)		22
Treasury and Corporate Support		350		318		332		10.1			5.4			668		686		(2.6	)		25
Consolidated Company	$	1,415	$	1,338	$	1,203		5.8			17.6		$	2,753	$	2,249		22.4			100	%

(a) preliminary data

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July 18, 2012

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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 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 2012, 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 services, 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 $330 million of the Company’s net income in the second quarter of 2012, compared with $272 million in the second quarter of 2011 and $333 million in the first quarter of 2012. Wholesale Banking and Commercial Real Estate’s net income increased $58 million (21.3 percent) over the same quarter of 2011, due to a lower provision for credit losses and lower total noninterest expense, partially offset by lower total net revenue. Net interest income decreased $11 million (2.1 percent) year-over-year, primarily due to lower rates on loans, a decrease in loan fees and the impact of lower rates on the margin benefit from deposits, partially offset by higher average loan and deposit balances. Total noninterest income decreased $9 million (2.8 percent), due to lower commercial products revenue, principally lower standby letters of credit and loan commitment fees, partially offset by an increase in other income due to equity investment revenue. Total noninterest expense decreased $6 million (1.9 percent) from a year ago, primarily due to lower FDIC insurance expense and other loan expense. The provision for credit losses was $112 million (100.0 percent) lower year-over-year, due to lower net charge-offs and a reduction in the reserve allocation.

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U.S. Bancorp Reports Second Quarter 2012 Results

July 18, 2012

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Wholesale Banking and Commercial Real Estate’s contribution to net income in the second quarter of 2012 was $3 million (.9 percent) lower than the first quarter of 2012. Total net revenue decreased $6 million (.7 percent) compared with the prior quarter. Net interest income decreased $14 million (2.6 percent) on a linked quarter basis as a result of lower loan rates and a reduction in the margin benefit from deposits, partially offset by higher average loan balances. Total noninterest income increased by $8 million (2.6 percent), principally due to seasonally higher treasury management fees and an increase in equity investment revenue. Total noninterest expense was relatively flat on a linked quarter basis, with a decrease of $1 million (.3 percent). The provision for credit losses decreased $3 million (100.0 percent) on a linked quarter basis, due to lower net charge-offs, partially offset by a change 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, ATM processing and over mobile devices. 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 $378 million of the Company’s net income in the second quarter of 2012, a $189 million (100.0 percent) increase over the second quarter of 2011, and a $7 million (1.8 percent) decrease from the prior quarter. Within Consumer and Small Business Banking, the retail banking division reported a $102 million increase in its contribution over the same quarter of last year. The increase in the retail banking division’s contribution over the same period of 2011 was principally due to lower total noninterest expense and a lower provision for credit losses. Retail banking’s total net revenue was 1.2 percent lower than the second quarter of 2011. Net interest income increased .7 percent, primarily due to higher loan and deposit volumes and favorable loan rates, partially offset by the impact of lower rates on the margin benefit from deposits. Total noninterest income for the retail banking division decreased 5.5 percent from a year ago, principally due to a decrease in ATM processing services revenue, a result of the change in classification of the surcharge revenue passed through to others and lower deposit services charges, partially offset by higher retail lease residual revenue. Total noninterest expense for the retail banking division in the second quarter of 2012 decreased 4.5 percent year-over-year, principally due to lower net occupancy and equipment expense, a result of the classification change to ATM surcharge revenue passed through to others, FDIC insurance expense and other intangibles expense. The provision for credit losses for the retail banking division decreased 41.0 percent on a year-over-year basis due to lower net charge-offs and a reduction in the reserve allocation. The contribution of the mortgage banking division

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U.S. Bancorp Reports Second Quarter 2012 Results

July 18, 2012

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increased 71.9 percent over the second quarter of 2011 due to higher total net revenue, partially offset by increases in total noninterest expense and in the provision for credit losses. The division’s 77.9 percent increase in total net revenue was due to a $247 million increase in total noninterest income driven by strong mortgage origination and sales revenue. In addition, net interest income increased 34.6 percent, primarily the result of higher average loans held-for-sale. Total noninterest expense was 82.3 percent higher, reflecting higher compensation and employee benefits expense and mortgage servicing review-related costs. The provision for credit losses increased 97.7 percent due to a change in the reserve allocation.

Consumer and Small Business Banking’s contribution in the second quarter of 2012 was $7 million (1.8 percent) lower than the first quarter of 2012 due to increases in total noninterest expense and the provision for credit losses, partially offset by higher total net revenue. Within Consumer and Small Business Banking, the retail banking division’s contribution increased 16.4 percent on a linked quarter basis. Total net revenue for the retail banking division was relatively flat. Total noninterest expense for the retail banking division was 1.8 percent lower than the first quarter of 2012, principally due to seasonally lower employee benefits expense and lower net shared services expense. The provision for credit losses for the division decreased 11.2 percent due to lower net charge-offs and a favorable change in the reserve allocation. The contribution of the mortgage banking division decreased 13.0 percent from the first quarter of 2012 due to increases in total noninterest expense and in the provision for credit losses, partially offset by an increase in total net revenue. Total net revenue increased 6.9 percent, principally due to an 8.6 percent increase in total noninterest income driven by strong mortgage origination and sales revenue. Total noninterest expense increased 20.7 percent, driven by increased compensation expense and mortgage servicing review-related costs. The mortgage banking division’s provision for credit losses increased $47 million on a linked quarter basis due to a change 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 $41 million of the Company’s net income in the second quarter of 2012, a 12.8 percent decrease from the second quarter of 2011, and an 8.9 percent decrease from the first quarter of 2012. The decrease in the business line’s contribution, compared with the same quarter of 2011, was mainly due to higher total noninterest expense. Total net revenue increased by $9 million (2.5 percent) year-over-year. Net interest income was relatively

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July 18, 2012

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flat, while total noninterest income increased by $8 million (3.0 percent), primarily due to business expansion and higher investment products fees and commissions. Total noninterest expense increased by $15 million (5.4 percent) due to higher compensation and employee benefits expense, partially offset by a reduction in acquisition integration costs. The provision for credit losses increased $4 million due to higher net charge-offs and a change in the reserve allocation.

The business line’s contribution in the second quarter of 2012 was $4 million (8.9 percent) lower than the prior quarter. Total net revenue increased $1 million (.3 percent) due to a $12 million (4.5 percent) increase in total noninterest income due to account growth, business expansion and higher investment products fees and commissions, partially offset by an $11 million (11.7 percent) decrease in net interest income due to a reduction of the margin benefit from deposit balances. Total noninterest expense increased $4 million (1.4 percent) over the prior quarter, as higher compensation expense and professional services costs were partially offset by lower net shared services costs. The provision for credit losses was $4 million higher than the prior quarter due to an increase in net charge-offs.

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 $316 million of the Company’s net income in the second quarter of 2012, a decrease of $47 million (12.9 percent) from the same period of 2011, but a $59 million (23.0 percent) increase over the prior quarter. The decrease year-over-year was primarily due to a higher provision for credit losses, partially offset by an increase in total net revenue. Total net revenue increased $34 million (2.9 percent) year-over-year. Net interest income increased $49 million (15.0 percent), principally due to higher average loan balances and the credit card balance transfer fees classification change. Total noninterest income decreased $15 million (1.8 percent) year-over-year. Credit and debit card revenue decreased due to lower debit card interchange fees as a result of recent legislation, net of mitigation efforts, and the impact of classifying credit card balance transfer fees as interest income in the current year. However, these negative variances were partially offset by higher transaction volumes and an $18 million credit related to the final expiration of debit card customer rewards. Partially offsetting this decrease, corporate payment products revenue and merchant processing services revenue increased due to higher transaction volumes and other revenue increased due to a merchant processing-related gain. Total noninterest expense was flat compared with the second quarter of 2011. The provision for credit losses increased $108 million due to the impact of a reserve release in the second quarter of 2011, partially offset by lower net charge-offs.

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U.S. Bancorp Reports Second Quarter 2012 Results

July 18, 2012

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Payment Services’ contribution in the second quarter of 2012 was $59 million (23.0 percent) higher than the first quarter of 2012, due to higher total net revenue, lower total noninterest expense and a lower provision for credit losses. Total net revenue was higher by $63 million (5.6 percent) than the first quarter of 2012. Net interest income decreased $20 million (5.1 percent), driven by lower rates on loans and a decrease in loan fees. Total noninterest income was $83 million (11.3 percent) higher on a linked quarter basis. Credit and debit card revenue increased due to higher transaction volumes and legislative-mitigation efforts, including a credit for the final expiration of debit card customer rewards. Corporate payment products revenue and merchant processing services revenue increased, primarily due to higher volumes. In addition, other revenue was higher mainly due to a merchant processing-related gain in the current quarter. Total noninterest expense decreased $11 million (2.2 percent) on a linked quarter basis, principally due to the timing of marketing programs. The provision for credit losses decreased $19 million (8.8 percent) due to a favorable change 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 those expenses associated with corporate activities that are managed on a consolidated basis. Treasury and Corporate Support recorded net income of $350 million in the second quarter of 2012, compared with net income of $332 million in the second quarter of 2011 and net income of $318 million in the first quarter of 2012. Net interest income increased $77 million (16.1 percent) over the second quarter of 2011, reflecting growth in the investment securities portfolio, lower long-term funding rates, as well as the impact of wholesale funding decisions and the Company’s asset/liability position. Total noninterest income increased by $2 million (5.4 percent) year-over-year, principally due to higher commercial products revenue, partially offset by an $11 million increase in net securities losses, as the Company recognized impairment on a number of securities. Total noninterest expense increased by $96 million (48.5 percent), principally due to increased compensation and employee benefits expense and the impact of the Visa accrual, partially offset by lower net shared services expense.

Net income in the second quarter of 2012 was $32 million (10.1 percent) higher on a linked quarter basis, due to an increase in total net revenue and a decrease in the provision for credit losses, partially offset by higher total noninterest expense. Total net revenue was higher than the first quarter of 2012 by $42 million (7.6 percent), principally as a result of a 14.0 percent increase in net interest income, reflecting lower

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U.S. Bancorp Reports Second Quarter 2012 Results

July 18, 2012

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long-term funding rates and the Company’s asset/liability position, partially offset by a $26 million (40.0 percent) decrease in total noninterest income, driven by lower equity investment income and an increase in net securities losses. A $21 million (7.7 percent) increase in total noninterest expense on a linked quarter basis primarily reflected the Visa accrual, higher costs related to investments in affordable housing other tax-advantaged projects and in net shared services expense, partially offset by lower regulatory and insurance-related costs, the timing of charitable contributions and seasonally lower employee benefits costs.

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

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U.S. Bancorp Reports Second Quarter 2012 Results

July 18, 2012

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On Wednesday, July 18, 2012, at 8:30 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 88620616. 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 18th, and will run through Wednesday, July 25th, at 11:00 p.m. (CDT). To access the recorded message within the United States and Canada, dial 855-859-2056. If calling from outside the United States and Canada, please dial 404-537-3406 to access the recording. The conference ID is 88620616. 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 $353 billion in assets as of June 30, 2012, is the parent company of U.S. Bank National Association, the 5th largest commercial bank in the United States. The Company operates 3,080 banking offices in 25 states and 5,085 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 2012 Results

July 18, 2012

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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 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, 2011, 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.

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U.S. Bancorp Reports Second Quarter 2012 Results

July 18, 2012

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Non-GAAP Financial Measures

In addition to capital ratios defined by banking regulators under the FDIC Improvement Act prompt corrective action provisions applicable to all banks, the Company considers various other measures when evaluating capital utilization and adequacy, including:

• Tangible common equity to tangible assets,

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

• Tier 1 common equity to risk-weighted assets using Basel I definition,

• Tier 1 common equity to risk-weighted assets using Basel III proposals published prior to June 2012, and

• Tier 1 common equity to risk-weighted assets approximated using proposed rules for the Basel III standardized approach released June 2012.

These measures are viewed by management as useful additional methods of reflecting the level of capital available to withstand unexpected market or economic conditions. Additionally, presentation of these measures allows investors, analysts and banking regulators to assess the Company’s capital position relative to other financial services companies. These measures differ from capital ratios defined by current banking regulations principally in that the numerator excludes trust preferred securities and preferred stock, the nature and extent of which varies among different financial services companies. These measures are not defined in generally accepted accounting principals (“GAAP”) or federal banking regulations. As a result, these measures disclosed by the Company may be considered non-GAAP financial measures.

There may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider the consolidated financial statements and other financial information contained in this press release in their entirety, and not to rely on any single financial measure. A table follows that shows the Company’s calculation of these non-GAAP financial measures.

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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)	2012			2011			2012			2011
Interest Income
Loans	$	2,631		$	2,563		$	5,269		$	5,115
Loans held for sale		67			34			132			97
Investment securities		470			459			938			887
Other interest income		60			63			121			120
Total interest income		3,228			3,119			6,460			6,219
Interest Expense
Deposits		177			210			358			444
Short-term borrowings		127			131			250			264
Long-term debt		266			290			560			571
Total interest expense		570			631			1,168			1,279
Net interest income		2,658			2,488			5,292			4,940
Provision for credit losses		470			572			951			1,327
Net interest income after provision for credit losses		2,188			1,916			4,341			3,613
Noninterest Income
Credit and debit card revenue		235			286			437			553
Corporate payment products revenue		190			185			365			360
Merchant processing services		359			338			696			639
ATM processing services		89			114			176			226
Trust and investment management fees		262			258			514			514
Deposit service charges		156			162			309			305
Treasury management fees		142			144			276			281
Commercial products revenue		216			218			427			409
Mortgage banking revenue		490			239			942			438
Investment products fees and commissions		38			35			73			67
Securities gains (losses), net		(19	)		(8	)		(19	)		(13	)
Other		197			175			398			379
Total noninterest income		2,355			2,146			4,594			4,158
Noninterest Expense
Compensation		1,076			1,004			2,128			1,963
Employee benefits		229			210			489			440
Net occupancy and equipment		230			249			450			498
Professional services		136			82			220			152
Marketing and business development		80			90			189			155
Technology and communications		201			189			402			374
Postage, printing and supplies		77			76			151			150
Other intangibles		70			75			141			150
Other		502			450			991			857
Total noninterest expense		2,601			2,425			5,161			4,739
Income before income taxes		1,942			1,637			3,774			3,032
Applicable income taxes		564			458			1,091			824
Net income		1,378			1,179			2,683			2,208
Net (income) loss attributable to noncontrolling interests		37			24			70			41
Net income attributable to U.S. Bancorp	$	1,415		$	1,203		$	2,753		$	2,249
Net income applicable to U.S. Bancorp common shareholders	$	1,345		$	1,167		$	2,630		$	2,170
Earnings per common share	$	.71		$	.61		$	1.39		$	1.13
Diluted earnings per common share	$	.71		$	.60		$	1.38		$	1.12
Dividends declared per common share	$	.195		$	.125		$	.390		$	.250
Average common shares outstanding		1,888			1,921			1,895			1,920
Average diluted common shares outstanding		1,898			1,929			1,904			1,929

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U.S. Bancorp

Consolidated Ending Balance Sheet

	June 30, 2012			December 31, 2011			June 30, 2011
(Dollars in Millions)	(Unaudited)						(Unaudited)
Assets
Cash and due from banks	$	15,403		$	13,962		$	15,250
Investment securities
Held-to-maturity		34,635			18,877			13,280
Available-for-sale		39,313			51,937			52,299
Loans held for sale		8,257			7,156			3,543
Loans
Commercial		61,534			56,648			50,550
Commercial real estate		36,557			35,851			35,490
Residential mortgages		39,920			37,082			33,110
Credit card		16,905			17,360			16,111
Other retail		48,035			48,107			48,220
Total loans, excluding covered loans		202,951			195,048			183,481
Covered loans		13,137			14,787			16,401
Total loans		216,088			209,835			199,882
Less allowance for loan losses		(4,572	)		(4,753	)		(5,071	)
Net loans		211,516			205,082			194,811
Premises and equipment		2,638			2,657			2,529
Goodwill		8,934			8,927			8,950
Other intangible assets		2,712			2,736			3,266
Other assets		29,728			28,788			26,946
Total assets	$	353,136		$	340,122		$	320,874
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing	$	69,905		$	68,579		$	57,310
Interest-bearing		133,936			134,757			128,087
Time deposits greater than $100,000		37,475			27,549			29,486
Total deposits		241,316			230,885			214,883
Short-term borrowings		30,684			30,468			29,654
Long-term debt		28,821			31,953			32,830
Other liabilities		13,441			11,845			10,166
Total liabilities		314,262			305,151			287,533
Shareholders’ equity
Preferred stock		4,769			2,606			2,606
Common stock		21			21			21
Capital surplus		8,176			8,238			8,235
Retained earnings		32,687			30,785			28,701
Less treasury stock		(7,031	)		(6,472	)		(6,134	)
Accumulated other comprehensive income (loss)		(830	)		(1,200	)		(977	)
Total U.S. Bancorp shareholders’ equity		37,792			33,978			32,452
Noncontrolling interests		1,082			993			889
Total equity		38,874			34,971			33,341
Total liabilities and equity	$	353,136		$	340,122		$	320,874

Page 30

U.S. Bancorp

Non-GAAP Financial Measures

(Dollars in Millions, Unaudited)	June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011			June 30, 2011
Total equity	$	38,874		$	36,914		$	34,971		$	34,210		$	33,341
Preferred stock		(4,769	)		(3,694	)		(2,606	)		(2,606	)		(2,606	)
Noncontrolling interests		(1,082	)		(1,014	)		(993	)		(980	)		(889	)
Goodwill (net of deferred tax liability)		(8,205	)		(8,233	)		(8,239	)		(8,265	)		(8,300	)
Intangible assets, other than mortgage servicing rights		(1,118	)		(1,182	)		(1,217	)		(1,209	)		(1,277	)
Tangible common equity (a)		23,700			22,791			21,916			21,150			20,269
Tier 1 capital, determined in accordance with prescribed regulatory requirements using Basel I definition		30,044			29,976			29,173			28,081			27,795
Trust preferred securities		—			(1,800	)		(2,675	)		(2,675	)		(3,267	)
Preferred stock		(4,769	)		(3,694	)		(2,606	)		(2,606	)		(2,606	)
Noncontrolling interests, less preferred stock not eligible for Tier 1 capital		(685	)		(686	)		(687	)		(695	)		(695	)
Tier 1 common equity using Basel I definition (b)		24,590			23,796			23,205			22,105			21,227
Tier 1 capital, determined in accordance with prescribed regulatory requirements using Basel III proposals published prior to June 2012					27,578			25,636			24,902			23,931
Preferred stock					(3,694	)		(2,606	)		(2,606	)		(2,606	)
Noncontrolling interests of real estate investment trusts					(659	)		(664	)		(667	)		(667	)
Tier 1 common equity using Basel III proposals published prior to June 2012 (c)					23,225			22,366			21,629			20,658
Tier 1 capital, determined in accordance with prescribed regulatory requirements approximated using proposed rules for the Basel III standardized approach released June 2012		28,622
Preferred stock		(4,769	)
Tier 1 common equity approximated using proposed rules for the Basel III standardized approach released June 2012 (d)		23,853
Total assets		353,136			340,762			340,122			330,141			320,874
Goodwill (net of deferred tax liability)		(8,205	)		(8,233	)		(8,239	)		(8,265	)		(8,300	)
Intangible assets, other than mortgage servicing rights		(1,118	)		(1,182	)		(1,217	)		(1,209	)		(1,277	)
Tangible assets (e)		343,813			331,347			330,666			320,667			311,297
Risk-weighted assets, determined in accordance with prescribed regulatory requirements using Basel I definition (f)		279,982	*		274,847			271,333			261,115			252,882
Risk-weighted assets using Basel III proposals published prior to June 2012 (g)		—			277,856			274,351			264,103			256,205
Risk-weighted assets approximated using proposed rules for the Basel III standardized approach released June 2012 (h)		303,212	*
Ratios *
Tangible common equity to tangible assets (a)/(e)		6.9	%		6.9	%		6.6	%		6.6	%		6.5	%
Tangible common equity to risk-weighted assets using Basel I definition (a)/(f)		8.5			8.3			8.1			8.1			8.0
Tier 1 common equity to risk-weighted assets using Basel I definition (b)/(f)		8.8			8.7			8.6			8.5			8.4
Tier 1 common equity to risk-weighted assets using Basel III proposals published prior to June 2012 (c)/(g)		—			8.4			8.2			8.2			8.1
Tier 1 common equity to risk-weighted assets approximated using proposed rules for the Basel III standardized approach released June 2012 (d)/(h)		7.9			—			—			—			—

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

Page 31

EX-99.2

U.S. Bancorp

2Q12 Earnings

Conference Call

U.S. Bancorp

2Q12 Earnings

Conference Call

July 18, 2012

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, 2011, 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.

2Q12 Highlights

Record net income of $1.4 billion; $0.71 per diluted common share

Total net revenue of $5.1 billion, up 8.1% vs. 2Q11

•

Net interest income growth of 6.6% vs. 2Q11

•

Noninterest income growth of 9.7% vs. 2Q11

Positive operating leverage on both a year-over-year and a linked quarter basis

Average loan growth of 7.7% vs. 2Q11 and average loan growth of 1.9% vs. 1Q12

Strong average deposit growth of 10.5% vs. 2Q11 and average deposit growth of

1.3% vs. 1Q12

Net charge-offs declined 8.9% vs. 1Q12

Nonperforming assets declined 6.9% vs. 1Q12 (12.3% including covered assets)

Capital generation continues to fortify capital position

•

Tier 1 common equity ratio of 8.8%

•

Tier 1 capital ratio of 10.7%

•

Repurchased 13 million shares of common stock during 2Q12

2Q12 Earnings

Conference Call

3

Performance Ratios

ROCE and ROA

Efficiency Ratio and

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

Return on Avg Common Equity

Return on Avg Assets

Efficiency Ratio

Net Interest Margin

4

2Q12 Earnings

Conference Call

* Gain on merchant processing agreement settlement

Taxable-equivalent basis

Revenue Growth

Year-Over-Year Growth

3.8%

4.5%

8.1%

9.1%

8.1%

$ in millions

$5,068

$5,104

$4,795

$4,690

$4,929

5

2Q12 Earnings

Conference Call

Loan and Deposit Growth

Average Balances

Year-Over-Year Growth

$ in billions

7.7%

$214.1

4.0%

$198.8

5.0%

$202.2

5.9%

$207.0

6.4%

$210.2

10.5%

$231.3

14.2%

$209.4

17.9%

$215.4

17.3%

$223.3

11.7%

$228.3

2Q12 Earnings

Conference Call

6

Credit Quality

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

Linked quarter change

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)

-11%

-2%

-14%

-6%

-10%

-7%

-8%

-7%

35%

30%

27%

26%

18%

25%

7%

12%

2%

-5%

-7%

-5%

-6%

-7%

-6%

-6%

-15%

34%

22%

33%

31%

23%

37%

5%

12%

2%

$ in millions

-9%

-7%

2Q12 Earnings

Conference Call

7

Credit Quality   Outlook

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

Assets to trend modestly lower during 3Q12

Delinquencies*

Changes in Criticized Assets*

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

1Q11 change in criticized assets excludes FCB acquisition

30 to 89 days

90+ days

8

2Q12 Earnings

Conference Call

YTD

YTD

2Q12

1Q12

2Q11

vs 1Q12

vs 2Q11

2Q12

2Q11

% B/(W)

Net Interest Income

2,713

$    

2,690

$    

2,544

$    

0.9

6.6

5,403

$    

5,051

$    

7.0

Noninterest Income

2,355

2,239

2,146

5.2

9.7

4,594

4,158

10.5

Total Revenue

5,068

4,929

4,690

2.8

8.1

9,997

9,209

8.6

Noninterest Expense

2,601

2,560

2,425

(1.6)

(7.3)

5,161

4,739

(8.9)

Operating Income

2,467

2,369

2,265

4.1

8.9

4,836

4,470

8.2

Net Charge-offs

520

571

747

8.9

30.4

1,091

1,552

29.7

Excess Provision

(50)

(90)

(175)

--

--

(140)

(225)

--

Income before Taxes

1,997

1,888

1,693

5.8

18.0

3,885

3,143

23.6

Applicable Income Taxes

619

583

514

(6.2)

(20.4)

1,202

935

(28.6)

Noncontrolling Interests

37

33

24

12.1

54.2

70

41

70.7

Net Income

1,415

1,338

1,203

5.8

17.6

2,753

2,249

22.4

Preferred Dividends/Other

70

53

36

(32.1)

(94.4)

123

79

(55.7)

NI to Common

1,345

$    

1,285

$    

1,167

$    

4.7

15.3

2,630

$    

2,170

$    

21.2

Diluted EPS

0.71

$      

0.67

$      

0.60

$      

6.0

18.3

1.38

$      

1.12

$      

23.2

Average Diluted Shares

1,898

1,910

1,929

0.6

1.6

1,904

1,929

1.3

% B/(W)

Earnings Summary

$ in millions, except per-share data

Taxable-equivalent basis

9

2Q12 Earnings

Conference Call

2Q12 Results -

Key Drivers

vs. 2Q11

Net Revenue growth of 8.1%

•

Net

interest

income

growth

of

6.6%;

net

interest

margin

of

3.58%

vs.

3.67%

•

Noninterest income growth of 9.7%

Noninterest expense growth of 7.3%

Provision for credit losses lower by $102 million

•

Net charge-offs lower by $227 million

•

Provision lower than NCOs by $50 million vs. $175 million in 2Q11

vs. 1Q12

Net Revenue growth of 2.8%

•

Net

interest

income

growth

of

0.9%;

net

interest

margin

of

3.58%

vs.

3.60%

•

Noninterest income growth of 5.2%

Noninterest expense growth of 1.6%

Provision for credit losses lower by $11 million

•

Net charge-offs lower by $51 million

•

Provision lower than NCOs by $50 million vs. $90 million in 1Q12

10

2Q12 Earnings

Conference Call

Capital Position

$ in billions

RWA = risk-weighted assets

11

2Q12 Earnings

Conference Call

2Q12 

1Q12 

4Q11 

3Q11 

2Q11 

Shareholders' equity

37.8

$    

35.9

$    

34.0

$    

33.2

$    

32.5

$    

Tier 1 capital

30.0

30.0

29.2

28.1

27.8

Total risk-based capital

36.4

36.4

36.1

35.4

35.1

Tier 1 common equity ratio

8.8%

8.7%

8.6%

8.5%

8.4%

Tier 1 capital ratio

10.7%

10.9%

10.8%

10.8%

11.0%

Total risk-based capital ratio

13.0%

13.3%

13.3%

13.5%

13.9%

Leverage ratio

9.1%

9.2%

9.1%

9.0%

9.2%

Tangible common equity ratio

6.9%

6.9%

6.6%

6.6%

6.5%

Tangible common equity % of RWA

8.5%

8.3%

8.1%

8.1%

8.0%

Basel III

Tier 1 common equity ratio using Basel III

    proposals published prior to June 2012

-

8.4%

8.2%

8.2%

8.1%

Tier 1 common equity ratio approximated

    using proposed rules for the Basel III

    standardized approach released June 2012

7.9%

-

-

-

-

Mortgage Repurchase

Mortgages Repurchased and Make-whole Payments

Mortgage Representation and Warranties Reserve

$ in millions

2Q12

1Q12

4Q11

3Q11

2Q11

Beginning Reserve

$202

$160

$162

$173

$181

Net Realized Losses

(31)

(25)

(31)

(31)

(43)

Additions to Reserve

45

67

29

20

35

Ending Reserve

$216

$202

$160

$162

$173

Mortgages

repurchased

and make-whole

payments

$58

$55

$61

$57

$72

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      

= $164 million

Repurchase requests expected to

remain relatively stable over next

few quarters

2Q12 Earnings

Conference Call

12

~

~

Momentum

Momentum

continues

continues

Appendix

2Q12 Earnings

Conference Call

14

Average Loans

Average Loans

Key Points

$ in billions

vs. 2Q11

Average total loans grew by $15.3 billion, or 7.7%

Average total loans, excluding covered loans,

were higher by 10.0%

Average total commercial loans increased $10.0

billion, or 19.9%

vs. 1Q12

Average total loans grew by $3.9 billion, or 1.9%

Average total loans, excluding covered loans,

were higher by 2.4%

Average total commercial loans increased $2.9

billion, or 5.1%

Year-Over-Year Growth

4.0%

5.0%

5.9%

6.4%

7.7%

Covered

Commercial

CRE

Res Mtg

Retail

Credit Card

2Q12 Earnings

Conference Call

15

Commercial

CRE

Res Mtg

Credit

Card

Retail

$214.1

Covered

$198.8

$202.2

$207.0

$210.2

Average Deposits

Average Deposits

Key Points

$ in billions

vs. 2Q11

Average total deposits increased by $21.9

billion, or 10.5%

Average low cost deposits (NIB, interest

checking, money market and savings) 

increased by $20.9 billion, or 12.8%

vs. 1Q12

Average total deposits increased by $3.0

billion, or 1.3%

Average low cost deposits decreased by $1.3

billion, or 0.7%

Year-Over-Year Growth

14.2%

17.9%

17.3%

11.7%

10.5%

Time

Money Market

Checking and Savings

Noninterest-bearing

Noninterest

-bearing

2Q12 Earnings

Conference Call

16

$231.3

Checking

& Savings

Money

Market

Time

$209.4

$215.4

$223.3

$228.3

Net Interest Income

Net Interest Income

Key Points

$ in millions

Taxable-equivalent basis

Year-Over-Year Growth

5.6%

5.9%

7.0%

7.3%

6.6%

2Q12 Earnings

Conference Call

3,000

2,500

2,000

1,500

1,000

$2,544

$2,624

$2,673

$2,690

$2,713

Net Interest Income

Net Interest Margin

3.67%

3.65%

3.60%

3.60%

3.58%

6.0%

5.0%

4.0%

3.0%

2.0%

2Q11

3Q11

4Q11

1Q12

2Q12

17

vs. 2Q11

Average earning assets grew by $26.2 billion,

or 9.4%

Net interest margin lower by 9 bp (3.58% vs.

3.67%) driven by:

•

Higher balances in lower yielding investment

securities and a decline in loan yields

•

Partially offset by lower deposit rates, a reduction in

the average cash position at the Federal Reserve,

and the classification change of credit card balance

transfer fees from noninterest income to interest

income beginning 1Q12

vs. 1Q12

Average earning assets grew by $3.7 billion,

or 1.2%

Net interest margin lower by 2 bp (3.58% vs.

3.60%) driven by:

•

Continued growth in lower yielding investment

securities and lower loan yields

•

Partially offset by lower rates on long-term debt and

a reduction in the average cash position at the

Federal Reserve

2Q12 Earnings

Conference Call

2Q11

3Q11

4Q11

1Q12

2Q12

Non-operating gains

-

$        

-

$        

263

$    

-

$        

-

$        

Total

-

$        

-

$        

263

$    

-

$        

-

$        

Notable Noninterest Income Items

Noninterest Income

Noninterest Income

Key Points

$ in millions

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. 2Q11

Noninterest income grew by $209 million, or 9.7%,

driven by:

•

Mortgage banking revenue increase of $251 million

•

Merchant processing (6.2% growth)

•

Lower credit and debit card revenue (17.8% decline)

due to the impact of legislative changes to debit

interchange fees and the classification change of credit

card balance transfer fees from noninterest income to

interest income beginning 1Q12, partially offset by

higher transaction volumes and a credit related to the

final expiration of debit card customer rewards

•

Lower ATM processing services revenue (21.9%

decline) due to classifying surcharge revenue passed

through to others as a reduction of revenue beginning

1Q12 rather than occupancy expense as in previous

periods

vs. 1Q12

Noninterest income grew by $116 million, or 5.2%,

driven by:

•

Mortgage banking revenue increase of $38 million

•

Higher payments revenue (9.8% increase) primarily due

to higher volumes

Year-Over-Year Growth

1.7%

2.9%

9.4%

11.3%

9.7%

$2,171

$2,431

$2,239

$2,355

$2,146

Trust and

Inv Mgmt

Service

Charges

All Other

Mortgage

Payments

All Other

Mortgage

Service Charges

Trust and Inv Mgmt

Payments

2Q12

1Q12

4Q11

3Q11

2Q11

2,800

2,100

1,400

700

0

18

(3.1%)

1.6%

(7.9%)

105%

2.9%

2Q12 Earnings

Conference Call

19

2Q12 Earnings

Conference Call

2Q11

3Q11

4Q11

1Q12

2Q12

Mortgage servicing matters

-

$        

-

$        

130

$    

-

$        

-

$        

Total

-

$        

-

$        

130

$    

-

$        

-

$        

Notable Noninterest Expense Items

Noninterest Expense

Noninterest Expense

Key Points

$ in millions

vs. 2Q11

Noninterest expense was higher by $176 million,

or 7.3%, driven by:

•

Increased compensation (7.2%) and employee   

benefits (9.0%)

•

Increase in professional services (65.9%) principally due

to mortgage servicing review-related project

•

Increase in other expense driven by accrual related to

indemnification obligations associated with Visa Inc.

•

Lower net occupancy and equipment (7.6%) principally

reflecting the change in classification of ATM surcharge

revenue passed through to others

•

Lower marketing (11.1%) due to the timing of

advertising campaigns

vs. 1Q12

Noninterest expense was higher by $41 million, or

1.6%, driven by:

•

Higher professional services (61.9%) due to mortgage

servicing review-related project

•

Higher other expense primarily due to Visa accrual and

costs related to investments in affordable housing and

other tax-advantaged projects, partially offset by lower

regulatory and insurance-related costs

•

Lower marketing (26.6%) due to the timing of charitable

contributions and payments-related initiatives

Year-Over-Year Growth

2.0%

3.8%

8.5%

10.6%

7.3%

$2,476

$2,696

$2,560

$2,601

$2,425

Occupancy

and Equipment

Prof Services,

Marketing

and PPS

All Other

Tech and Comm

Compensation

and Benefits

All Other

Tech and Communications

Prof Svcs, Marketing and PPS

Occupancy and Equipment

Compensation and Benefits

2,800

2,100

1,400

700

0

2Q11

3Q11

4Q11

1Q12

2Q12

2Q12 Earnings

Conference Call

7.5%

(7.6%)

18.1%

6.3%

9.0%

Credit Quality

Commercial Loans

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Nonperforming loans and delinquencies continued to improve year-over-year and on a linked quarter basis

Net charge-offs improved on a linked quarter and year-over-year basis

Strong new lending activity of both loans and commitments resulted in 6% linked quarter average loan growth; 

utilization rates remained historically low

2Q11

1Q12

2Q12

Average Loans

$44,135

$51,309

$54,362

30-89 Delinquencies

0.46%

0.30%

0.26%

90+ Delinquencies

0.09%

0.08%

0.07%

Nonperforming Loans

0.78%

0.53%

0.31%

$ in millions

Revolving Line Utilization Trend

2Q12 Earnings

Conference Call

20

Average Loans

Net Charge-offs Ratio

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Net charge-offs increased this quarter primarily due to a single transaction

Overall credit quality continued to improve as nonperforming loans and delinquencies declined on a

linked quarter and year-over-year basis

$ in millions

2Q12 Earnings

Conference Call

Commercial Leases

2Q11

1Q12

2Q12

Average Loans

$5,919

$5,822

$5,658

30-89 Delinquencies

1.00%

0.89%

0.83%

90+ Delinquencies

0.02%

0.00%

0.00%

Nonperforming Loans

0.73%

0.54%

0.40%

Credit Quality

Commercial Leases

21

Average Loans

Net Charge-offs Ratio

Small Ticket

$3,341

Equipment

Finance

$2,317

Credit Quality

Commercial Real Estate

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Nonperforming

loans

continue

to

decline

as

the

Company

continues

to

resolve

and

reduce

exposures

in

this

portfolio

Net charge-offs continue to trend lower primarily driven by improvement in the credit quality of the construction portfolio

Delinquencies improved significantly on a linked quarter basis

2Q11

1Q12

2Q12

Average Loans

$35,499

$35,985

$36,549

30-89 Delinquencies

0.45%

0.45%

0.24%

90+ Delinquencies

0.01%

0.04%

0.03%

Nonperforming Loans

3.84%

2.10%

1.89%

Performing TDRs*

225

630

596

$ in millions

*

TDR = troubled debt restructuring, new accounting guidance adopted 3Q11 (FASB Accounting Standards Update No. 2011-02)

2Q12 Earnings

Conference Call

22

Owner

Occupied

$11,294

Investor

$19,330

Other

$888

Office

$701

A&D

Construction

$808

Condo

Construction

$206

Residential

Construction

$988

Retail

$687

Multi-family

$1,647

Average Loans

NCO

Ratio

-

Comm

Mtg

Net Charge-offs Ratio

NCO

Ratio

-

Construction

CRE Mortgage

CRE Construction

Credit Quality

-

Residential Mortgage

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Strong growth in high quality originations (weighted average FICO 761, weighted average LTV 68%) as average loans

increased 3.5% over 1Q12, driven by demand for refinancing

Continued to help home owners by successfully modifying 2,874 loans (owned and serviced) in 2Q12, representing

$495 million in balances

Delinquencies, nonperforming loans, and net charge-offs improved on a year-over-year basis

2Q11

1Q12

2Q12

Average Loans

$32,734

$37,831

$39,166

30-89 Delinquencies

1.11%

0.95%

0.86%

90+ Delinquencies

1.13%

0.79%

0.80%

Nonperforming Loans

2.03%

1.78%

1.65%

$ in millions

* Excludes GNMA loans, whose repayments are insured by the FHA or guaranteed by the Department of VA ($1,352 million 2Q12)

$32,734

$34,026

$36,256

$37,831

$39,166

6.0%

4.5%

3.0%

1.5%

0.0%

Average Loans

Net Charge-offs Ratio

40,000

30,000

20,000

10,000

0

1.46%

1.42%

1.30%

1.19%

1.12%

2Q11

3Q11

4Q11

1Q12

2Q12

Residential Mortgage Performing TDRs*

4,000

3,000

2,000

1,000

$1,939

$1,938

$2,002

$2,017

$2,011

2Q11

3Q11

4Q11

1Q12

2Q12

23

0

2Q12 Earnings

Conference Call

Credit Quality -

Credit Card

$ in millions

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

Average Loans and Net Charge-offs Ratios

Key Statistics

20,000

15,000

10,000

5,000

0

$15,884

$16,057

$16,271

$16,778

$16,696

5.62%

5.45%

4.54%

4.40%

4.88%

4.71%

4.21%

4.05%

4.25%

4.10%

Average Loans

30-89 Delinquencies

90+ Delinquencies

Nonperforming Loans

2Q11

$15,884

1.34%

1.32%

1.59%

1Q12

$16,778

1.26%

1.33%

1.25%

2Q12

$16,696

1.20%

1.17%

1.12%

Credit Card

Core

Portfolio

$16,093

Portfolios

Acquired at

Fair Value

$603

12.0%

9.0%

6.0%

3.0%

0.0%

Average Loans

Net Charge-offs Ratio Excluding Acquired Portfolios*

Comments

Net charge-offs continue to remain low

Overall delinquencies and nonperforming loans declined on a linked quarter and year-over-year basis

2Q11

3Q11

4Q11

1Q12

2Q12

Net Charge-offs Ratio

2Q12 Earnings

Conference Call

24

Credit Quality -

Home Equity

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

High-quality originations (weighted average FICO 772, weighted average CLTV 69%) originated primarily through

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

Nonperforming loans increased in the quarter as the Company included junior lien loans and lines greater than 120

days past due, as well as junior lien loans and lines behind a first lien greater than 180 days past due or in

nonaccrual status, as nonperforming loans

2Q11

1Q12

2Q12

Average Loans

$18,634

$17,933

$17,598

30-89 Delinquencies

0.78%

0.82%

0.71%

90+ Delinquencies

0.65%

0.68%

0.30%

Nonperforming Loans

0.22%

0.23%

0.91%

Consumer Finance: 13%

Wtd Avg LTV*: 82%

NCO: 3.66%

$ in millions

Traditional: 87%

Wtd Avg LTV*: 71%

NCO: 1.10%

* LTV at origination

2Q12 Earnings

Conference Call

25

24,000

18,000

12,000

6,000

0

$18,634

$18,510

$18,281

$17,933

$17,598

1.64%

1.59%

1.67%

1.66%

1.44%

2Q11

3Q11

4Q11

1Q12

2Q12

Average Loans

Net Charge-offs Ratio

6.0%

4.5%

3.0%

1.5%

0.0%

Home Equity

Credit Quality -

Retail Leasing

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

High-quality originations (weighted average FICO 772)

Retail leasing delinquencies have stabilized at very low levels

Strong used auto values continued to contribute to historically low net charge-offs

2Q11

1Q12

2Q12

Average Loans

$4,808

$5,095

$5,151

30-89 Delinquencies

0.20%

0.12%

0.13%

90+ Delinquencies

0.02%

0.02%

0.00%

Nonperforming Loans

--%

--%

--%

$ in millions

*

Manheim Used Vehicle Value Index source: www.manheimconsulting.com, January 1995 = 100, quarter value = average monthly ending value

26

6,000

4,000

2,000

0

0

$4,808

$5,097

$5,150

$5,095

$5,151

3.0%

2.0%

1.0%

0.0%

-1.0%

Manheim Used Vehicle Index*

130

120

110

100

90

2Q11

3Q11

4Q11

1Q12

2Q12

2Q12 Earnings

Conference Call

0.00%

-0.08%

0.00%

0.08%

0.00%

Average Loans

Net Charge-offs Ratio

Credit Quality -

Other Retail

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Average balances grew modestly during the quarter as auto loan demand remained strong

Delinquencies and nonperforming loans remained stable

Net charge-offs continued to improve

2Q11

1Q12

2Q12

Average Loans

$24,498

$24,902

$25,151

30-89 Delinquencies

0.62%

0.51%

0.51%

90+ Delinquencies

0.20%

0.17%

0.16%

Nonperforming Loans

0.13%

0.10%

0.09%

Installment

$5,381

Auto Loans

$11,974

Revolving

Credit

$3,274

Student

Lending

$4,522

$ in millions

27

2Q12 Earnings

Conference Call

28,000

21,000

14,000

7,000

0

$24,498

$24,773

$24,901

$24,902

$25,151

1.16%

1.11%

1.19%

0.92%

0.86%

2Q11

3Q11

4Q11

1Q12

2Q12

6.0%

4.5%

0.0%

3.0%

1.5%

Other Retail

Average Loans

Net Charge-offs Ratio

Non-GAAP Financial Measures

2Q12 Earnings

Conference Call

28

U.S. Bancorp

2Q12 Earnings

Conference Call

U.S. Bancorp

2Q12 Earnings

Conference Call

July 18, 2012