10-Q

  ³

Form 10-Q/September 30, 2012                                  

                                

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2012

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from (not applicable)

Commission file number 1-6880

U.S. BANCORP

(Exact name of registrant as specified in its charter)

Delaware	41-0255900
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

800 Nicollet Mall

Minneapolis, Minnesota 55402

(Address of principal executive offices, including zip code)

651-466-3000

(Registrant’s telephone number, including area code)

(not applicable)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.

YES þ    NO ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES þ     NO ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company ¨
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES ¨    NO þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class Common Stock, $.01 Par Value Outstanding as of October 31, 2012 1,880,370,592 shares

Table of Contents and Form 10-Q Cross Reference Index

Part I — Financial Information
1) Management’s Discussion and Analysis of Financial Condition and Results of Operations (Item 2)
a) Overview	3
b) Statement of Income Analysis	4
c) Balance Sheet Analysis	6
d) Non-GAAP Financial Measures	34
e) Critical Accounting Policies	35
f) Controls and Procedures (Item 4)	35
2) Quantitative and Qualitative Disclosures About Market Risk/Corporate Risk Profile (Item 3)
a) Overview	10
b) Credit Risk Management	10
c) Residual Value Risk Management	22
d) Operational Risk Management	22
e) Interest Rate Risk Management	24
f) Market Risk Management	25
g) Liquidity Risk Management	26
h) Capital Management	27
3) Line of Business Financial Review	28
4) Financial Statements (Item 1)	36
Part II — Other Information
1) Risk Factors (Item 1A)	78
2) Unregistered Sales of Equity Securities and Use of Proceeds (Item 2)	78
3) Exhibits (Item 6)	78
4) Signature	79
5) Exhibits	80

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995.

This quarterly report on Form 10-Q 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.

U. S. Bancorp 1

Table 1 Selected Financial Data

	Three Months Ended September 30,									Nine Months Ended September 30,
(Dollars and Shares in Millions, Except Per Share Data)	2012			2011			Percent   Change			2012			2011			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis) (a)	$	2,783		$	2,624			6.1	%	$	8,186		$	7,675			6.7	%
Noninterest income		2,395			2,180			9.9			7,008			6,351			10.3
Securities gains (losses), net		1			(9	)		*			(18	)		(22	)		18.2
Total net revenue		5,179			4,795			8.0			15,176			14,004			8.4
Noninterest expense		2,609			2,476			5.4			7,770			7,215			7.7
Provision for credit losses		488			519			(6.0	)		1,439			1,846			(22.0	)
Income before taxes		2,082			1,800			15.7			5,967			4,943			20.7
Taxable-equivalent adjustment		57			58			(1.7	)		168			169			(.6	)
Applicable income taxes		593			490			21.0			1,684			1,314			28.2
Net income		1,432			1,252			14.4			4,115			3,460			18.9
Net (income) loss attributable to noncontrolling interests		42			21			*			112			62			80.6
Net income attributable to U.S. Bancorp	$	1,474		$	1,273			15.8		$	4,227		$	3,522			20.0
Net income applicable to U.S. Bancorp common shareholders	$	1,404		$	1,237			13.5		$	4,034		$	3,407			18.4
Per Common Share
Earnings per share	$	.74		$	.65			13.8	%	$	2.13		$	1.78			19.7	%
Diluted earnings per share		.74			.64			15.6			2.12			1.77			19.8
Dividends declared per share		.195			.125			56.0			.585			.375			56.0
Book value per share		18.03			16.01			12.6
Market value per share		34.30			23.54			45.7
Average common shares outstanding		1,886			1,915			(1.5	)		1,892			1,918			(1.4	)
Average diluted common shares outstanding		1,897			1,922			(1.3	)		1,901			1,926			(1.3	)
Financial Ratios
Return on average assets		1.70	%		1.57	%					1.66	%		1.50	%
Return on average common equity		16.5			16.1						16.4			15.5
Net interest margin (taxable-equivalent basis) (a)		3.59			3.65						3.59			3.67
Efficiency ratio (b)		50.4			51.5						51.1			51.4
Net charge-offs as a percent of average loans outstanding		.99			1.31						1.02			1.49
Average Balances
Loans	$	216,928		$	202,169			7.3	%	$	213,731		$	199,533			7.1	%
Loans held for sale		8,432			3,946			*			7,557			4,382			72.5
Investment securities (c)		72,454			66,252			9.4			72,371			61,907			16.9
Earning assets		308,959			286,269			7.9			304,269			279,305			8.9
Assets		345,653			321,581			7.5			340,807			314,079			8.5
Noninterest-bearing deposits		68,127			58,606			16.2			65,423			50,558			29.4
Deposits		239,281			215,369			11.1			232,978			209,735			11.1
Short-term borrowings		27,843			30,597			(9.0	)		28,942			30,597			(5.4	)
Long-term debt		27,112			31,609			(14.2	)		29,388			31,786			(7.5	)
Total U.S. Bancorp shareholders’ equity		38,619			33,087			16.7			37,105			31,699			17.1
	September 30, 2012			December 31, 2011
Period End Balances
Loans	$	218,150		$	209,835			4.0	%
Investment securities		74,145			70,814			4.7
Assets		352,253			340,122			3.6
Deposits		244,232			230,885			5.8
Long-term debt		26,264			31,953			(17.8	)
Total U.S. Bancorp shareholders’ equity		38,661			33,978			13.8
Asset Quality
Nonperforming assets	$	2,835		$	3,774			(24.9	)
Allowance for credit losses		4,771			5,014			(4.8	)
Allowance for credit losses as a percentage of period-end loans		2.19	%		2.39	%
Capital Ratios
Tier 1 capital		10.9	%		10.8	%
Total risk-based capital		13.3			13.3
Leverage		9.2			9.1
Tangible common equity to tangible assets (d)		7.2			6.6
Tangible common equity to risk-weighted assets using Basel I definition (d)		8.8			8.1
Tier 1 common equity to risk-weighted assets using Basel I definition (d)		9.0			8.6
Tier 1 common equity to risk-weighted assets using Basel III proposals published prior to June 2012 (d)		–			8.2
Tier 1 common equity to risk-weighted assets approximated using proposed rules for the Basel III standardized approach released June 2012 (d)		8.2			–

* Not meaningful.

(a) Presented on a fully taxable-equivalent basis utilizing a tax rate of 35 percent.

(b) 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).

(c) Excludes unrealized gains and losses on available-for-sale investment securities and any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity.

(d) See Non-GAAP Financial Measures on page 34.

2 U. S. Bancorp

Management’s Discussion and Analysis

OVERVIEW

Earnings Summary U.S. Bancorp and its subsidiaries (the “Company”) reported net income attributable to U.S. Bancorp of $1.5 billion for the third quarter of 2012, or $.74 per diluted common share, compared with $1.3 billion, or $.64 per diluted common share for the third quarter of 2011. Return on average assets and return on average common equity were 1.70 percent and 16.5 percent, respectively, for the third quarter of 2012, compared with 1.57 percent and 16.1 percent, respectively, for the third quarter of 2011. During the third quarter of 2012, the Company recognized a gain on the sale of a credit card portfolio, recorded a charge related to an investment under the equity method of accounting and recorded incremental charge-offs related to a regulatory clarification in the treatment of residential mortgage and other consumer loans to borrowers who have had debt discharged through bankruptcy but continue to make payments on their loans. Taken together, these items had no impact on third quarter 2012 diluted earnings per common share. The provision for credit losses was $50 million lower than net charge-offs for the third quarter of 2012, compared with $150 million lower than net charge-offs for the third quarter of 2011.

Total net revenue, on a taxable-equivalent basis, for the third quarter of 2012 was $384 million (8.0 percent) higher than the third quarter of 2011, reflecting a 6.1 percent increase in net interest income and a 10.4 percent increase in noninterest income. The increase in net interest income over a year ago was the result of higher average earning assets, continued growth in lower cost core deposit funding and the positive impact of lower cost long-term debt. Noninterest income increased over a year ago, primarily due to higher mortgage banking revenue, partially offset by lower debit card revenue as a result of legislative changes.

Noninterest expense in the third quarter of 2012 was $133 million (5.4 percent) higher than the third quarter of 2011, primarily due to higher compensation expense, employee benefits costs and mortgage servicing review-related professional services costs.

The provision for credit losses for the third quarter of 2012 of $488 million was $31 million (6.0 percent) lower than the third quarter of 2011. The third quarter of 2012 provision for credit losses reflected $54 million in charge-offs related to a regulatory clarification in the treatment of residential mortgage and other consumer loans to borrowers who have had debt discharged through bankruptcy but continue to make payments on their loans.

Net charge-offs in the third quarter of 2012 were $538 million, compared with $669 million in the third quarter of 2011. Refer to “Corporate Risk Profile” for further information on the provision for credit losses, net charge-offs, nonperforming assets and other factors considered by the Company in assessing the credit quality of the loan portfolio and establishing the allowance for credit losses.

The Company reported net income attributable to U.S. Bancorp of $4.2 billion for the first nine months of 2012, or $2.12 per diluted common share, compared with $3.5 billion, or $1.77 per diluted common share for the first nine months of 2011. Return on average assets and return on average common equity were 1.66 percent and 16.4 percent, respectively, for the first nine months of 2012, compared with 1.50 percent and 15.5 percent, respectively, for the first nine months of 2011. Included in the Company’s results for the first nine months of 2012 were the third quarter credit card portfolio sale gain, equity-method investment charge and incremental charge-offs related to consumer loans to borrowers who have had debt discharged through bankruptcy. Included in the Company’s results for the first nine months of 2011 was a $46 million gain related to the acquisition of First Community Bank of New Mexico (“FCB”) in a transaction with the Federal Deposit Insurance Corporation (“FDIC”). The provision for credit losses was $190 million lower than net charge-offs for the first nine months of 2012, compared with $375 million lower than net charge-offs for the first nine months of 2011.

Total net revenue, on a taxable-equivalent basis, for the first nine months of 2012 was $1.2 billion (8.4 percent) higher than the first nine months of 2011, reflecting a 6.7 percent increase in net interest income and a 10.4 percent increase in noninterest income. The increase in net interest income over a year ago was largely the result of an increase in average earning assets, continued growth in lower cost core deposit funding and lower rates on long-term debt. Noninterest income increased over a year ago, primarily due to higher mortgage banking revenue, merchant processing services revenue, trust and investment management fees, and commercial products revenue, partially offset by lower debit card revenue as a result of legislative changes.

Noninterest expense in the first nine months of 2012 was $555 million (7.7 percent) higher than the first nine months of 2011, primarily due to higher compensation expense, employee benefits costs, mortgage servicing review-related professional services costs, and other expense, including higher regulatory and insurance-related costs and an accrual recorded by

U. S. Bancorp 3

the Company in the first nine months of 2012 related to its portion of obligations associated with Visa Inc. litigation matters (“Visa accrual”).

The provision for credit losses for the first nine months of 2012 of $1.4 billion was $407 million (22.0 percent) lower than the first nine months of 2011. Net charge-offs in the first nine months of 2012 were $1.6 billion, compared with $2.2 billion in the first nine months of 2011. Refer to “Corporate Risk Profile” for further information on the provision for credit losses, net charge-offs, nonperforming assets and other factors considered by the Company in assessing the credit quality of the loan portfolio and establishing the allowance for credit losses.

STATEMENT OF INCOME ANALYSIS

Net Interest Income Net interest income, on a taxable-equivalent basis, was $2.8 billion in the third quarter of 2012, compared with $2.6 billion in the third quarter of 2011. Net interest income, on a taxable-equivalent basis, was $8.2 billion in the first nine months of 2012, compared with $7.7 billion in the first nine months of 2011. The increases were primarily the result of growth in both average earning assets and lower cost core deposit funding, as well as lower rates on long-term debt. Average earning assets increased $22.7 billion (7.9 percent) in the third quarter and $25.0 billion (8.9 percent) in the first nine months of 2012, compared with the same periods of 2011, driven by increases in loans and investment securities. The net interest margin in both the third quarter and first nine months of 2012 was 3.59 percent, compared with 3.65 percent and 3.67 percent in the third quarter and first nine months of 2011, respectively. The decreases in the net interest margin reflected higher average balances in lower-yielding investment securities, partially offset by lower rates on deposits and long-term debt, and the inclusion of credit card balance transfer fees in interest income beginning in the first quarter of 2012. Refer to the “Consolidated Daily Average Balance Sheet and Related Yields and Rates” tables for further information on net interest income.

Average total loans for the third quarter and first nine months of 2012 were $14.8 billion (7.3 percent) and $14.2 billion (7.1 percent) higher, respectively, than the same periods of 2011, driven by growth in commercial loans, residential mortgages, credit card loans and commercial real estate loans. During the third quarter of 2012, the Company sold a $735 million branded consumer and business credit card portfolio. This sale was offset by the impact of the purchase of approximately $700 million of consumer credit card

loans in the fourth quarter of 2011. The increases were partially offset by decreases in other retail loans and loans covered by loss sharing agreements with the FDIC. Average loans acquired in FDIC-assisted transactions that are covered by loss sharing agreements with the FDIC (“covered” loans) decreased $3.2 billion (20.2 percent) in the third quarter and $3.1 billion (18.5 percent) in the first nine months of 2012, compared with the same periods of 2011, respectively.

Average investment securities in the third quarter and first nine months of 2012 were $6.2 billion (9.4 percent) and $10.5 billion (16.9 percent) higher, respectively, than the same periods of 2011, primarily due to purchases of government agency mortgage-backed securities, as the Company increased its on-balance sheet liquidity in response to anticipated regulatory requirements.

Average total deposits for the third quarter and first nine months of 2012 were $23.9 billion (11.1 percent) and $23.2 billion (11.1 percent) higher, respectively, than the same periods of 2011. Average noninterest-bearing deposits for the third quarter and first nine months of 2012 were $9.5 billion (16.2 percent) and $14.9 billion (29.4 percent) higher, respectively, than the same periods of 2011, due to growth in average balances in a majority of the lines of business, including Wholesale Banking and Commercial Real Estate, Wealth Management and Securities Services, and Consumer and Small Business Banking. Average total savings deposits for the third quarter and first nine months of 2012 were $7.8 billion (6.9 percent) and $7.2 billion (6.3 percent) higher, respectively, than the same periods of 2011, primarily due to growth in Consumer and Small Business Banking and corporate trust balances, partially offset by lower government banking and broker-dealer balances. Average time certificates of deposit less than $100,000 were slightly lower in the third quarter and first nine months of 2012, compared with the same periods of 2011. Average time deposits greater than $100,000 for the third quarter and first nine months of 2012 were $7.5 billion (26.1 percent) and $1.8 billion (6.1 percent) higher, respectively, than the same periods of 2011. Time deposits greater than $100,000 are managed as an alternate to other funding sources such as wholesale borrowing, based largely on relative pricing.

Provision for Credit Losses The provision for credit losses for the third quarter and first nine months of 2012 decreased $31 million (6.0 percent) and $407 million (22.0 percent), respectively, from the same periods of 2011. Net charge-offs decreased $131 million (19.6 percent) and $592 million (26.7 percent) in the third quarter and first nine months of 2012, respectively,

4 U. S. Bancorp

Table 2 Noninterest Income

	Three Months Ended September 30,								Nine Months Ended September 30,
(Dollars in Millions)	2012		2011			Percent Change			2012			2011			Percent Change
Credit and debit card revenue	$	213	$	289			(26.3	)%	$	650		$	842			(22.8	)%
Corporate payment products revenue		201		203			(1.0	)		566			563			.5
Merchant processing services		345		338			2.1			1,041			977			6.6
ATM processing services		87		115			(24.3	)		263			341			(22.9	)
Trust and investment management fees		265		241			10.0			779			755			3.2
Deposit service charges		174		183			(4.9	)		483			488			(1.0	)
Treasury management fees		135		137			(1.5	)		411			418			(1.7	)
Commercial products revenue		225		212			6.1			652			621			5.0
Mortgage banking revenue		519		245			*			1,461			683			*
Investment products fees and commissions		38		31			22.6			111			98			13.3
Securities gains (losses), net		1		(9	)		*			(18	)		(22	)		18.2
Other		193		186			3.8			591			565			4.6
Total noninterest income	$	2,396	$	2,171			10.4	%	$	6,990		$	6,329			10.4	%

* Not meaningful.

compared with the same periods of 2011, principally due to improvement in the commercial, commercial real estate and credit card portfolios. Charge-offs for the third quarter and first nine months of 2012 included $54 million related to a regulatory clarification in the treatment of residential mortgage and other consumer loans to borrowers who have had debt discharged through bankruptcy but continue to make payments on their loans. The provision for credit losses was lower than net charge-offs by $50 million in the third quarter and $190 million in the first nine months of 2012, compared with $150 million in the third quarter and $375 million in the first nine months of 2011. Refer to “Corporate Risk Profile” for further information on the provision for credit losses, net charge-offs, nonperforming assets and other factors considered by the Company in assessing the credit quality of the loan portfolio and establishing the allowance for credit losses.

Noninterest Income Noninterest income in the third quarter and first nine months of 2012 were $2.4 billion and $7.0 billion, respectively, compared with $2.2 billion and $6.3 billion in the same periods of 2011. The $225 million (10.4 percent) increase during the third quarter and the $661 million (10.4 percent) increase during the first nine months of 2012, compared with the same periods of 2011, were primarily driven by strong mortgage banking revenue, principally due to higher origination and sales revenue. In addition, merchant processing services revenue and investment products fees and commissions increased, primarily due to higher transaction volumes. Trust and investment management fees increased due to improved market conditions and business expansion. Commercial

products revenue was higher, principally driven by higher commercial loan fees and high-grade bond underwriting fees. The third quarter and first nine months of 2012 had favorable changes in net securities gains (losses), compared with the same periods of the prior year, primarily due to impairments recorded in 2011. Other income increased in the third quarter of 2012, compared with the same period of the prior year, reflecting the impact of the gain on the credit card portfolio sale, partially offset by the equity-method investment charge and lower retail lease residual revenue. Other income increased in the first nine months of 2012, compared with the same period of the prior year, primarily due to higher retail lease residual revenue and the gain on the credit card portfolio sale, partially offset by the FCB gain and a gain related to the Company’s investment in Visa Inc., both recorded in the first quarter of 2011, and lower equity investment income. Offsetting these positive variances were decreases in credit and debit card revenue due to lower debit card interchange fees as a result of fourth quarter of 2011 legislation (estimated impact of $82 million in the third quarter and $238 million in the first nine months of 2012), net of mitigation efforts, and the impact of the inclusion of credit card balance transfer fees in interest income beginning in the first quarter of 2012. These negative variances were partially offset by higher transaction volumes. ATM processing services revenue was also lower, due to excluding surcharge fees the Company passes through to others from revenue beginning in the first quarter of 2012, rather than reporting those amounts in occupancy expense as in previous periods.

U. S. Bancorp 5

Table 3 Noninterest Expense

	Three Months Ended September 30,									Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			Percent Change			2012			2011			Percent Change
Compensation	$	1,109		$	1,021			8.6	%	$	3,237		$	2,984			8.5	%
Employee benefits		225			203			10.8			714			643			11.0
Net occupancy and equipment		233			252			(7.5	)		683			750			(8.9	)
Professional services		144			100			44.0			364			252			44.4
Marketing and business development		96			102			(5.9	)		285			257			10.9
Technology and communications		205			189			8.5			607			563			7.8
Postage, printing and supplies		75			76			(1.3	)		226			226			–
Other intangibles		67			75			(10.7	)		208			225			(7.6	)
Other		455			458			(.7	)		1,446			1,315			10.0
Total noninterest expense	$	2,609		$	2,476			5.4	%	$	7,770		$	7,215			7.7	%
Efficiency ratio (a)		50.4	%		51.5	%					51.1	%		51.4	%

(a) 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.

Noninterest Expense Noninterest expense was $2.6 billion in the third quarter and $7.8 billion in the first nine months of 2012, compared with $2.5 billion and $7.2 billion in the same periods of 2011, or increases of $133 million (5.4 percent) and $555 million (7.7 percent), respectively. The increases in noninterest expense from a year ago were principally due to higher compensation expense, employee benefits expense and professional services expense. Compensation expense increased primarily as a result of growth in staffing for business initiatives and mortgage servicing-related activities, in addition to higher commissions and merit increases. Employee benefits expense increased principally due to higher pension costs and staffing levels. Professional services expense was higher, principally due to mortgage servicing review-related projects. Technology and communications expense was higher due to business expansion and technology projects. Marketing and business development expense increased in the first nine months of 2012 over the same period of the prior year due to the timing of charitable contributions and new national media promotions. Other expense increased in the first nine months of 2012, over the same period of the prior year, driven by higher mortgage servicing, regulatory and insurance-related costs and the 2012 Visa accrual, partially offset by lower FDIC assessments, and costs related to other real estate owned and investments in affordable housing and other tax-advantaged projects. These increases were partially offset by decreases in net occupancy and equipment expense, principally reflecting the change in presentation of ATM surcharge revenue passed through to others, and decreases in other intangibles expense due principally to completion of amortization of certain intangibles.

Income Tax Expense The provision for income taxes was $593 million (an effective rate of 29.3 percent) for the third quarter and $1.7 billion (an effective rate of 29.0 percent) for the first nine months of 2012, compared with $490 million (an effective rate of 28.1 percent) and $1.3 billion (an effective rate of 27.5 percent) for the same periods of 2011. The increases in the effective tax rate for the third quarter and first nine months of 2012, compared with the same periods of the prior year, principally reflected the impact of higher pretax earnings year-over-year. For further information on income taxes, refer to Note 9 of the Notes to Consolidated Financial Statements.

BALANCE SHEET ANALYSIS

Loans The Company’s total loan portfolio was $218.2 billion at September 30, 2012, compared with $209.8 billion at December 31, 2011, an increase of $8.3 billion (4.0 percent). The increase was driven primarily by increases in commercial loans, residential mortgages and commercial real estate loans, partially offset by lower credit card, other retail and covered loans.

The $6.3 billion (11.1 percent) increase in commercial loans was driven by higher demand from new and existing customers.

Residential mortgages held in the loan portfolio increased $4.8 billion (13.0 percent) at September 30, 2012, compared with December 31, 2011, reflecting origination and refinancing activity due to the low interest rate environment. Residential mortgages held in the Company’s loan portfolio are primarily well secured jumbo mortgages to borrowers with high credit quality. The Company generally retains portfolio loans through maturity; however, the Company’s intent may change over time based upon various factors such as ongoing

6 U. S. Bancorp

asset/liability management activities, assessment of product profitability, credit risk, liquidity needs, and capital implications. If the Company’s intent or ability to hold an existing portfolio loan changes, it is transferred to loans held for sale.

Commercial real estate loans increased $962 million (2.7 percent) at September 30, 2012, compared with December 31, 2011, reflecting higher demand from new and existing customers.

Total credit card loans decreased $958 million (5.5 percent) at September 30, 2012, compared with December 31, 2011, reflecting the impact of the sale of a branded credit card portfolio during 2012 and customers paying down their balances. Other retail loans, which include retail leasing, home equity and second mortgages and other retail loans, decreased $142 million (.3 percent) at September 30, 2012, compared with December 31, 2011. The decrease was primarily driven by lower home equity and second mortgages and student loan balances, partially offset by higher installment loan and retail leasing balances.

Loans Held for Sale Loans held for sale, consisting primarily of residential mortgages to be sold in the secondary market, were $9.9 billion at September 30, 2012, compared with $7.2 billion at December 31, 2011. The increase in loans held for sale was principally due to an increase in mortgage loan origination and refinancing activity due to the low interest rate environment.

Most of the residential mortgage loans the Company originates follow guidelines that allow the loans to be sold into existing, highly liquid secondary markets; in particular in government agency transactions and to government sponsored enterprises (“GSEs”).

Investment Securities Investment securities totaled $74.1 billion at September 30, 2012, compared with $70.8 billion at December 31, 2011. The $3.3 billion (4.7 percent) increase primarily reflected $2.6 billion of net investment purchases and a $.5 billion favorable change in net unrealized gains (losses) on available-for-sale securities. Held-to-maturity securities were $34.5 billion at September 30, 2012, compared with $18.9 billion at December 31, 2011, due to a transfer of approximately $11.7 billion of available-for-sale investment securities to the held-to-maturity category during the first nine months of 2012, reflecting the Company’s intent to hold those securities to maturity, and growth in government agency mortgage-backed securities as the Company continued to increase its on-balance sheet liquidity in response to anticipated regulatory requirements.

The Company’s available-for-sale securities are carried at fair value with changes in fair value reflected in other comprehensive income (loss) unless a security is deemed to be other-than-temporarily impaired. At September 30, 2012, the Company’s net unrealized gains on available-for-sale securities were $1.1 billion, compared with $581 million at December 31, 2011. The favorable change in net unrealized gains was primarily due to increases in the fair value of non-agency mortgage-backed and state and political securities. Gross unrealized losses on available-for-sale securities totaled $229 million at September 30, 2012, compared with $691 million at December 31, 2011.

The Company conducts a regular assessment of its investment portfolio to determine whether any securities are other-than-temporarily impaired. When assessing unrealized losses for other-than-temporary impairment, the Company considers the nature of the investment, the financial condition of the issuer, the extent and duration of the unrealized loss, expected cash flows of underlying assets and market conditions. At September 30, 2012, the Company had no plans to sell securities with unrealized losses and believes it is more likely than not that it would not be required to sell such securities before recovery of their amortized cost.

There is limited market activity for non-agency mortgage-backed securities held by the Company. As a result, the Company estimates the fair value of these securities using estimates of expected cash flows, discount rates and management’s assessment of various other market factors, which are judgmental in nature. The Company recorded $15 million and $36 million of impairment charges in earnings during the third quarter and first nine months of 2012, respectively, on non-agency mortgage-backed securities. These impairment charges were due to changes in expected cash flows primarily resulting from increases in defaults in the underlying mortgage pools. During the first nine months of 2012, the Company also recognized impairment charges of $27 million in earnings related to certain perpetual preferred securities issued by financial institutions, following the downgrades of money center banks by a rating agency. The unrealized loss on perpetual preferred securities in a loss position at September 30, 2012, was $19 million. Further adverse changes in market conditions may result in additional impairment charges in future periods. Refer to Notes 2 and 11 in the Notes to Consolidated Financial Statements for further information on investment securities.

U. S. Bancorp 7

Table 4 Investment Securities

	Available-for-Sale									Held-to-Maturity
At September 30, 2012 (Dollars in Millions)	Amortized Cost		Fair Value		Weighted- Average Maturity in Years		Weighted- Average Yield (e)			Amortized Cost		Fair Value		Weighted- Average Maturity in Years		Weighted- Average Yield (e)
U.S. Treasury and Agencies
Maturing in one year or less	$	72	$	73		.5		2.57	%	$	50	$	50		.3		.61	%
Maturing after one year through five years		497		501		1.3		.84			2,447		2,473		1.4		1.00
Maturing after five years through ten years		149		158		7.5		3.11			–		–		–		–
Maturing after ten years		10		11		10.9		2.89			60		60		12.4		1.96
Total	$	728	$	743		2.6		1.51	%	$	2,557	$	2,583		1.7		1.01	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	3,312	$	3,315		.6		1.58	%	$	395	$	396		.7		1.52	%
Maturing after one year through five years		23,074		23,876		3.0		2.46			30,583		31,260		3.1		2.17
Maturing after five years through ten years		3,074		3,045		6.4		2.26			740		758		7.4		1.50
Maturing after ten years		294		299		12.5		1.49			59		60		10.4		1.22
Total	$	29,754	$	30,535		3.2		2.34	%	$	31,777	$	32,474		3.2		2.14	%
Asset-Backed Securities (a)
Maturing in one year or less	$	8	$	9		–		.24	%	$	–	$	4		.5		1.22	%
Maturing after one year through five years		36		46		3.2		6.36			11		9		3.5		.65
Maturing after five years through ten years		574		585		7.6		2.48			8		9		6.6		.73
Maturing after ten years		–		–		18.8		5.88			9		18		22.6		.86
Total	$	618	$	640		7.3		2.68	%	$	28	$	40		10.5		.75	%
Obligations of State and Political Subdivisions (b) (c)
Maturing in one year or less	$	81	$	82		.1		2.65	%	$	–	$	–		.7		8.16	%
Maturing after one year through five years		5,226		5,550		3.8		6.79			6		6		3.2		7.31
Maturing after five years through ten years		765		812		7.1		6.20			1		2		7.9		7.79
Maturing after ten years		13		13		17.2		15.83			14		14		14.6		5.42
Total	$	6,085	$	6,457		4.2		6.68	%	$	21	$	22		10.9		6.13	%
Other Debt Securities
Maturing in one year or less	$	6	$	6		.2		1.00	%	$	3	$	2		.5		1.14	%
Maturing after one year through five years		–		–		–		–			94		91		3.5		1.30
Maturing after five years through ten years		–		–		–		–			29		14		8.1		1.18
Maturing after ten years		813		709		25.3		3.21			–		–		–		–
Total	$	819	$	715		25.1		3.19	%	$	126	$	107		4.4		1.27	%
Other Investments	$	516	$	546		15.8		2.97	%	$	–	$	–		–		–	%
Total investment securities (d)	$	38,520	$	39,636		4.0		3.04	%	$	34,509	$	35,226		3.1		2.06	%

(a) Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities anticipating future prepayments.

(b) Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, yield to maturity if purchased at par or a discount.

(c) Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and contractual maturity for securities with a fair value equal to or below par.

(d) The weighted-average maturity of the available-for-sale investment securities was 5.2 years at December 31, 2011, with a corresponding weighted-average yield of 3.19 percent. The weighted-average maturity of the held-to-maturity investment securities was 3.9 years at December 31, 2011, with a corresponding weighted-average yield of 2.21 percent.

(e) Average yields are presented on a fully-taxable equivalent basis under a tax rate of 35 percent. Yields on available-for-sale and held-to-maturity investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity. Average yield and maturity calculations exclude equity securities that have no stated yield or maturity.

	September 30, 2012					December 31, 2011
(Dollars in Millions)	Amortized Cost		Percent of Total			Amortized Cost		Percent of Total
U.S. Treasury and agencies	$	3,285		4.5	%	$	3,605		5.1	%
Mortgage-backed securities		61,531		84.2			57,561		82.0
Asset-backed securities		646		.9			949		1.4
Obligations of state and political subdivisions		6,106		8.4			6,417		9.1
Other debt securities and investments		1,461		2.0			1,701		2.4
Total investment securities	$	73,029		100.0	%	$	70,233		100.0	%

8 U. S. Bancorp

Deposits Total deposits were $244.2 billion at September 30, 2012, compared with $230.9 billion at December 31, 2011, the result of increases in noninterest-bearing deposits, money market deposits, savings accounts and time deposits greater than $100,000, partially offset by decreases in interest checking deposits and time certificates less than $100,000. Time deposits greater than $100,000 increased $7.1 billion (25.8 percent) at September 30, 2012, compared with December 31, 2011. Time deposits greater than $100,000 are managed as an alternate to other funding sources such as wholesale borrowing, based largely on relative pricing. Noninterest-bearing deposits increased $4.4 billion (6.4 percent), primarily due to higher Consumer and Small Business Banking balances. Money market balances increased $2.4 billion (5.2 percent) primarily due to higher balances in Wholesale Banking and Commercial Real Estate. Savings account balances increased $1.9 billion (6.6 percent), primarily due to continued strong participation in a savings product offered by Consumer and Small Business Banking that includes multiple bank products in a package. Interest checking balances decreased $1.7 billion (3.6 percent) primarily due to lower Wholesale Banking and Commercial Real Estate and broker-dealer balances, partially offset by higher Consumer and Small Business Banking balances. Time certificates less than

$100,000 decreased $763 million (5.1 percent), reflecting lower Consumer and Small Business Banking balances.

Borrowings The Company utilizes both short-term and long-term borrowings as part of its asset/liability management and funding strategies. Short-term borrowings, which include federal funds purchased, commercial paper, repurchase agreements, borrowings secured by high-grade assets and other short-term borrowings, were $27.9 billion at September 30, 2012, compared with $30.5 billion at December 31, 2011. The $2.6 billion (8.6 percent) decrease in short-term borrowings was primarily in repurchase agreements, partially offset by higher commercial paper balances. Long-term debt was $26.3 billion at September 30, 2012, compared with $32.0 billion at December 31, 2011. The $5.7 billion (17.8 percent) decrease was primarily due to $3.8 billion of medium-term note repayments and maturities, $2.7 billion of redemptions of junior subordinated debentures and a $3.5 billion decrease in Federal Home Loan Bank advances, partially offset by issuances of $1.3 billion of subordinated debt and $2.3 billion of medium-term notes, and a $.8 billion increase in long-term debt related to certain consolidated variable interest entities. Refer to the “Liquidity Risk Management” section for discussion of liquidity management of the Company.

U. S. Bancorp 9

CORPORATE RISK PROFILE

Overview Managing risks is an essential part of successfully operating a financial services company. The Company’s most prominent risk exposures are credit, residual value, operational, interest rate, market, liquidity and reputation risk. Credit risk is the risk of not collecting the interest and/or the principal balance of a loan, investment or derivative contract when it is due. Residual value risk is the potential reduction in the end-of-term value of leased assets. Operational risk includes risks related to fraud, processing errors, technology, breaches of internal controls and in data security, and business continuation and disaster recovery. Operational risk also includes legal and compliance risks, including risks arising from the failure to adhere to laws, rules, regulations and internal policies and procedures. Interest rate risk is the potential reduction of net interest income as a result of changes in interest rates, which can affect the re-pricing of assets and liabilities differently. Market risk arises from fluctuations in interest rates, foreign exchange rates, and security prices that may result in changes in the values of financial instruments, such as trading and available-for-sale securities, certain mortgage loans held for sale, mortgage servicing rights (“MSRs”) and derivatives that are accounted for on a fair value basis. Liquidity risk is the possible inability to fund obligations to depositors, investors or borrowers. Further, corporate strategic decisions, as well as the risks described above, could give rise to reputation risk. Reputation risk is the risk that negative publicity or press, whether true or not, could result in costly litigation or cause a decline in the Company’s stock value, customer base, funding sources or revenue. In addition to the risks identified above, other risk factors exist that may impact the Company. Refer to “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, for a detailed discussion of these factors.

Credit Risk Management The Company’s strategy for credit risk management includes well-defined, centralized credit policies, uniform underwriting criteria, and ongoing risk monitoring and review processes for all commercial and consumer credit exposures. In evaluating its credit risk, the Company considers changes, if any, in underwriting activities, the loan portfolio composition (including product mix and geographic, industry or customer-specific concentrations), trends in loan performance, the level of allowance coverage relative to similar banking institutions and macroeconomic factors, such as changes

in unemployment rates, gross domestic product, real estate values and consumer bankruptcy filings.

In addition, credit quality ratings, as defined by the Company, are an important part of the Company’s overall credit risk management and evaluation of its allowance for credit losses. Loans with a pass rating represent those not classified on the Company’s rating scale for problem credits, as minimal risk has been identified. Loans with a special mention or classified rating, including all of the Company’s loans that are 90 days or more past due and still accruing, nonaccrual loans, those loans considered troubled debt restructurings (“TDRs”), and loans in a junior lien position that are current but are behind a modified or delinquent loan in a first lien position, encompass all loans held by the Company that it considers to have a potential or well-defined weakness that may put full collection of contractual cash flows at risk. The Company’s internal credit quality ratings for consumer loans are primarily based on delinquency and nonperforming status, except for a limited population of larger loans within those portfolios that are individually evaluated. For this limited population, the determination of the internal credit quality rating may also consider collateral value and customer cash flows. The Company obtains recent collateral value estimates for the majority of its residential mortgage and home equity and second mortgage portfolios, which allows the Company to compute estimated loan-to-value (“LTV”) ratios reflecting current market conditions. These individually refreshed LTV ratios are considered in the determination of the appropriate allowance for credit losses. The decline in housing prices over the past several years has deteriorated the collateral support of the residential mortgage, home equity and second mortgage portfolios. However, the underwriting criteria the Company employs consider the relevant income and credit characteristics of the borrower, such that the collateral is not the primary source of repayment. Refer to Note 3 in the Notes to Consolidated Financial Statements for further discussion of the Company’s loan portfolios including internal credit quality ratings. In addition, Refer to “Management’s Discussion and Analysis — Credit Risk Management” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, for a more detailed discussion on credit risk management processes.

The Company manages its credit risk, in part, through diversification of its loan portfolio and limit setting by product type criteria and concentrations. As part of its normal business activities, the Company offers

10 U. S. Bancorp

a broad array of lending products. The Company categorizes its loan portfolio into three segments, which is the level at which it develops and documents a systematic methodology to determine the allowance for credit losses. The Company’s three loan portfolio segments are commercial lending, consumer lending and covered loans. The commercial lending segment includes loans and leases made to small business, middle market, large corporate, commercial real estate, financial institution, and public sector customers. Key risk characteristics relevant to commercial lending segment loans include the industry and geography of the borrower’s business, purpose of the loan, repayment source, borrower’s debt capacity and financial flexibility, loan covenants, and nature of pledged collateral, if any. These risk characteristics, among others, are considered in determining estimates about the likelihood of default by the borrowers and the severity of loss in the event of default. The Company considers these risk characteristics in assigning internal risk ratings to, or forecasting losses on, these loans which are the significant factors in determining the allowance for credit losses for loans in the commercial lending segment.

The consumer lending segment represents loans and leases made to consumer customers including residential mortgages, credit card loans, and other retail loans such as revolving consumer lines, auto loans and leases, student loans, and home equity loans and lines. Home equity or second mortgage loans are junior lien closed-end accounts fully disbursed at origination. These loans typically are fixed rate loans, secured by residential real estate, with a 10 or 15 year fixed payment amortization schedule. Home equity lines are revolving accounts giving the borrower the ability to draw and repay balances repeatedly, up to a maximum commitment, and are secured by residential real estate. These include accounts in either a first or junior lien position. Typical terms on home equity lines are variable rates benchmarked to the prime rate, with a 15-year draw period during which a minimum payment is equivalent to the monthly interest, followed by a 10-year amortization period. At September 30, 2012, substantially all of the Company’s home equity lines were in the draw period. Key risk characteristics relevant to consumer lending segment loans primarily relate to the borrowers’ capacity and willingness to repay and include unemployment rates and other economic factors, customer payment history and in some cases, updated LTV information on real estate based loans. These risk characteristics, among others, are reflected in forecasts

of delinquency levels, bankruptcies and losses which are the primary factors in determining the allowance for credit losses for the consumer lending segment.

The covered loan segment represents loans acquired in FDIC-assisted transactions that are covered by loss sharing agreements with the FDIC that greatly reduce the risk of future credit losses to the Company. Key risk characteristics for covered segment loans are consistent with the segment they would otherwise be included in had the loss share coverage not been in place, but consider the indemnification provided by the FDIC.

The Company further disaggregates its loan portfolio segments into various classes based on their underlying risk characteristics. The two classes within the commercial lending segment are commercial loans and commercial real estate loans. The three classes within the consumer lending segment are residential mortgages, credit card loans and other retail loans. The covered loan segment consists of only one class.

The Company’s consumer lending segment utilizes several distinct business processes and channels to originate consumer credit, including traditional branch lending, indirect lending, portfolio acquisitions, correspondent banks and loan brokers, which the Company refers to as consumer finance. Generally, the consumer finance loans exhibit higher credit risk characteristics, but have pricing commensurate with the differing risk profile. The Company may either retain the loans on its balance sheet or sell its interest in the balances into the secondary market while retaining the servicing rights and customer relationships. For residential mortgages that are retained in the Company’s portfolio and for home equity and second mortgages, credit risk is also diversified by geography and managed by adherence to LTV and borrower credit criteria during the underwriting process.

The Company estimates updated LTV information quarterly, based on a method that combines automated valuation model updates and relevant home price indices. LTV is the ratio of the loan’s outstanding principal balance to the current estimate of property value. For home equity and second mortgages, combined loan-to-value (“CLTV”) is the combination of the first mortgage original principal balance and the second lien outstanding principal balance, relative to the current estimate of property value. Certain loans do not have a LTV or CLTV primarily due to lack of availability of relevant automated valuation model and/or home price indices values, or lack of necessary valuation data on acquired loans.

U. S. Bancorp 11

The following tables provide summary information for the LTVs of residential mortgages and home equity and second mortgages by origination channel and type at September 30, 2012:

Residential mortgages (Dollars in Millions)	Interest Only		Amortizing		Total		Percent of Total
Consumer Finance
Less than or equal to 80 %	$	849	$	6,938	$	7,787		57.1	%
Over 80 % through 90 %		223		2,337		2,560		18.7
Over 90 % through 100 %		183		917		1,100		8.1
Over 100 %		483		1,714		2,197		16.1
No LTV available		–		1		1		–
Total	$	1,738	$	11,907	$	13,645		100.0	%
Other
Less than or equal to 80 %	$	1,081	$	18,057	$	19,138		67.7	%
Over 80 % through 90 %		276		1,280		1,556		5.5
Over 90 % through 100 %		221		833		1,054		3.7
Over 100 %		410		925		1,335		4.7
No LTV available		–		95		95		.4
Loans purchased from GNMA mortgage pools (a)		–		5,079		5,079		18.0
Total	$	1,988	$	26,269	$	28,257		100.0	%
Total Company
Less than or equal to 80 %	$	1,930	$	24,995	$	26,925		64.3	%
Over 80 % through 90 %		499		3,617		4,116		9.8
Over 90 % through 100 %		404		1,750		2,154		5.2
Over 100 %		893		2,639		3,532		8.4
No LTV available		–		96		96		.2
Loans purchased from GNMA mortgage pools (a)		–		5,079		5,079		12.1
Total	$	3,726	$	38,176	$	41,902		100.0	%

(a) Represents loans purchased from Government National Mortgage Association (“GNMA”) mortgage pools whose payments are primarily insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.

Home equity and second mortgages (Dollars in Millions)	Lines		Loans		Total		Percent of Total
Consumer Finance
Less than or equal to 80 %	$	851	$	67	$	918		41.4	%
Over 80 % through 90 %		306		48		354		15.9
Over 90 % through 100 %		198		70		268		12.1
Over 100 %		423		251		674		30.4
No LTV/CLTV available		3		1		4		.2
Total	$	1,781	$	437	$	2,218		100.0	%
Other
Less than or equal to 80 %	$	7,613	$	606	$	8,219		55.1	%
Over 80 % through 90 %		2,191		249		2,440		16.4
Over 90 % through 100 %		1,338		206		1,544		10.4
Over 100 %		1,986		378		2,364		15.9
No LTV/CLTV available		307		27		334		2.2
Total	$	13,435	$	1,466	$	14,901		100.0	%
Total Company
Less than or equal to 80 %	$	8,464	$	673	$	9,137		53.4	%
Over 80 % through 90 %		2,497		297		2,794		16.3
Over 90 % through 100 %		1,536		276		1,812		10.6
Over 100 %		2,409		629		3,038		17.7
No LTV/CLTV available		310		28		338		2.0
Total	$	15,216	$	1,903	$	17,119		100.0	%

Within the consumer finance loans, at September 30, 2012, approximately $1.7 billion of residential mortgages were to customers that may be defined as sub-prime borrowers based on credit scores

from independent agencies at loan origination, compared with $1.9 billion at December 31, 2011. In addition to residential mortgages, at September 30, 2012, $.4 billion of the consumer finance home equity and second mortgage loans were to customers that may be defined as sub-prime borrowers, compared with $.5 billion at December 31, 2011. The total amount of consumer lending segment residential mortgage, home equity and second mortgage loans to customers that may be defined as sub-prime borrowers represented only .6 percent of total assets at September 30, 2012, compared with .7 percent at December 31, 2011. The Company considers sub-prime loans to be those made to borrowers with a risk of default significantly higher than those approved for prime lending programs, as reflected in credit scores obtained from independent agencies at loan origination, in addition to other credit underwriting criteria. Sub-prime portfolios include only loans originated according to the Company’s underwriting programs specifically designed to serve customers with weakened credit histories. The sub-prime designation indicators have been and will continue to be subject to re-evaluation over time as borrower characteristics, payment performance and economic conditions change. The sub-prime loans originated during the periods from June 2009 to September 2012 are with borrowers who met the Company’s program guidelines and have a credit score that generally is at or below a threshold of 620 to 650 depending on the program. Sub-prime loans originated during periods prior to June 2009 were based upon program level guidelines without regard to credit score.

The following table provides further information on the LTVs of residential mortgages, specifically for the consumer finance loans, at September 30, 2012:

(Dollars in Millions)	Interest Only		Amortizing		Total		Percent of Total
Sub-Prime Borrowers
Less than or equal to 80%	$	2	$	607	$	609		4.5	%
Over 80% through 90%		2		241		243		1.7
Over 90% through 100%		3		262		265		2.0
Over 100%		7		554		561		4.1
Total	$	14	$	1,664	$	1,678		12.3	%
Other Borrowers
Less than or equal to 80%	$	847	$	6,331	$	7,178		52.6	%
Over 80% through 90%		221		2,096		2,317		17.0
Over 90% through 100%		180		655		835		6.1
Over 100%		476		1,160		1,636		12.0
No LTV available		–		1		1		–
Total	$	1,724	$	10,243	$	11,967		87.7	%
Total Consumer Finance	$	1,738	$	11,907	$	13,645		100.0	%

12 U. S. Bancorp

The following table provides further information on the LTVs of home equity and second mortgages, specifically for the consumer finance loans at September 30, 2012:

(Dollars in Millions)	Lines		Loans		Total		Percent of Total
Sub-Prime Borrowers
Less than or equal to 80%	$	43	$	34	$	77		3.5	%
Over 80% through 90%		19		25		44		1.9
Over 90% through 100%		17		45		62		2.8
Over 100%		42		162		204		9.2
No LTV/CLTV available		–		1		1		.1
Total	$	121	$	267	$	388		17.5	%
Other Borrowers
Less than or equal to 80%	$	808	$	33	$	841		37.9	%
Over 80% through 90%		287		23		310		14.0
Over 90% through 100%		181		25		206		9.3
Over 100%		381		89		470		21.2
No LTV/CLTV available		3		–		3		.1
Total	$	1,660	$	170	$	1,830		82.5	%
Total Consumer Finance	$	1,781	$	437	$	2,218		100.0	%

Covered loans included $1.3 billion in loans with negative-amortization payment options at September 30, 2012, compared with $1.5 billion at December 31, 2011. Other than covered loans, the Company does not have any residential mortgages with payment schedules that would cause balances to increase over time.

Home equity and second mortgages were $17.1 billion at September 30, 2012, compared with $18.1 billion at December 31, 2011, and included $5.0 billion of home equity lines in a first lien position and $12.1 billion of home equity and second mortgage loans and lines in a junior lien position. Loans and lines in a junior lien position at September 30, 2012, included approximately $3.7 billion of loans and lines for which

the Company also serviced the related first lien loan, and approximately $8.4 billion where the Company did not service the related first lien loan. The Company was able to determine the status of the related first liens using information the Company has as the servicer of the first lien, information it received from its primary regulator on loans serviced by other large servicers or information reported on customer credit bureau files. The Company also evaluates other indicators of credit risk for these junior lien loans and lines including delinquency, estimated average CLTV ratios and weighted-average credit scores in making its assessment of credit risk, related loss estimates and determining the allowance for credit losses.

The following table provides a summary of delinquency statistics and other credit quality indicators for the Company’s junior lien positions at September 30, 2012:

	Junior Liens Behind
(Dollars in Millions)	Company Owned or Serviced First Lien			Third Party First Lien			Total
Total	$	3,715		$	8,349		$	12,064
Percent 30–89 days past due		1.03	%		1.34	%		1.25	%
Percent 90 days or more past due		.33	%		.29	%		.30	%
Weighted-average CLTV		90	%		89	%		89	%
Weighted-average credit score		749			746			747

See the Analysis and Determination of the Allowance for Credit Losses section for additional information on how the Company determines the allowance for credit losses for loans in a junior lien position.

U. S. Bancorp 13

Table 5 Delinquent Loan Ratios as a Percent of Ending Loan Balances

90 days or more past due excluding nonperforming loans	September 30, 2012			December 31, 2011
Commercial
Commercial		.07	%		.09	%
Lease financing		.02			–
Total commercial		.06			.08
Commercial Real Estate
Commercial mortgages		.02			.02
Construction and development		.10			.13
Total commercial real estate		.03			.04
Residential Mortgages (a)		.72			.98
Credit Card		1.18			1.36
Other Retail
Retail leasing		.02			.02
Other		.23			.43
Total other retail (b)		.20			.38
Total loans, excluding covered loans		.31			.43
Covered Loans		5.61			6.15
Total loans		.61	%		.84	%

90 days or more past due including nonperforming loans	September 30, 2012			December 31, 2011
Commercial		.31	%		.63	%
Commercial real estate		1.75			2.55
Residential mortgages (a)		2.52			2.73
Credit card		2.18			2.65
Other retail (b)		.64			.52
Total loans, excluding covered loans		1.24			1.54
Covered loans		9.30			12.42
Total loans		1.69	%		2.30	%

(a) Delinquent loan ratios exclude $3.0 billion at September 30, 2012, and $2.6 billion at December 31, 2011, of loans purchased from GNMA mortgage pools whose repayments are primarily insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. Including these loans, the ratio of residential mortgages 90 days or more past due including all nonperforming loans was 9.64 percent at September 30, 2012, and 9.84 percent at December 31, 2011.

(b) Delinquent loan ratios exclude student loans that are guaranteed by the federal government. Including these loans, the ratio of total other retail loans 90 days or more past due including all nonperforming loans was 1.09 percent at September 30, 2012, and .99 percent at December 31, 2011.

Loan Delinquencies Trends in delinquency ratios are an indicator, among other considerations, of credit risk within the Company’s loan portfolios. The Company measures delinquencies, both including and excluding nonperforming loans, to enable comparability with other companies. Accruing loans 90 days or more past due totaled $1.3 billion ($644 million excluding covered loans) at September 30, 2012, compared with $1.8 billion ($843 million excluding covered loans) at December 31, 2011. These balances exclude loans purchased from GNMA mortgage pools whose repayments are primarily insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. The $199 million (23.6 percent) decrease, excluding covered loans,

reflected improvement in residential mortgages, credit card and other retail loan portfolios during the first nine months of 2012. These loans are not included in nonperforming assets and continue to accrue interest because they are adequately secured by collateral, are in the process of collection and are reasonably expected to result in repayment or restoration to current status, or are managed in homogeneous portfolios with specified charge-off timeframes adhering to regulatory guidelines. The ratio of accruing loans 90 days or more past due to total loans was .61 percent (.31 percent excluding covered loans) at September 30, 2012, compared with ..84 percent (.43 percent excluding covered loans) at December 31, 2011.

14 U. S. Bancorp

The following table provides summary delinquency information for residential mortgages, credit card and other retail loans included in the consumer lending segment:

	Amount				As a Percent of Ending Loan Balances
(Dollars in Millions)	September 30, 2012		December 31, 2011		September 30, 2012			December 31, 2011
Residential Mortgages (a)
30-89 days	$	393	$	404		.93	%		1.09	%
90 days or more		301		364		.72			.98
Nonperforming		757		650		1.81			1.75
Total	$	1,451	$	1,418		3.46	%		3.82	%
Credit Card
30-89 days	$	230	$	238		1.41	%		1.37	%
90 days or more		194		236		1.18			1.36
Nonperforming		163		224		.99			1.29
Total	$	587	$	698		3.58	%		4.02	%
Other Retail
Retail Leasing
30-89 days	$	9	$	10		.17	%		.19	%
90 days or more		1		1		.02			.02
Nonperforming		1		–		.02			–
Total	$	11	$	11		.21	%		.21	%
Home Equity and Second Mortgages
30-89 days	$	140	$	162		.81	%		.90	%
90 days or more		54		133		.32			.73
Nonperforming		179		40		1.05			.22
Total	$	373	$	335		2.18	%		1.85	%
Other (b)
30-89 days	$	151	$	168		.59	%		.68	%
90 days or more		42		50		.16			.20
Nonperforming		30		27		.12			.11
Total	$	223	$	245		.87	%		.99	%

(a) Excludes $3.0 billion and $2.6 billion at September 30, 2012, and December 31, 2011, respectively, of loans purchased from GNMA mortgage pools that are 90 days or more past due that continue to accrue interest.

(b) Includes revolving credit, installment, automobile and student loans.

The following table provides information on delinquent and nonperforming consumer lending segment loans as a percent of ending loan balances, by channel:

	Consumer Finance						Other Consumer Lending
	September 30, 2012			December 31, 2011			September 30, 2012			December 31, 2011
Residential Mortgages (a)
30-89 days		1.83	%		1.87	%		.51	%		.67	%
90 days or more		1.19			1.71			.49			.59
Nonperforming		3.10			2.50			1.18			1.35
Total		6.12	%		6.08	%		2.18	%		2.61	%
Credit Card
30-89 days		–	%		–	%		1.41	%		1.37	%
90 days or more		–			–			1.18			1.36
Nonperforming		–			–			.99			1.29
Total		–	%		–	%		3.58	%		4.02	%
Other Retail
Retail Leasing
30-89 days		–	%		–	%		.17	%		.19	%
90 days or more		–			–			.02			.02
Nonperforming		–			–			.02			–
Total		–	%		–	%		.21	%		.21	%
Home Equity and Second Mortgages
30-89 days		1.98	%		2.01	%		.64	%		.73	%
90 days or more		.59			1.42			.28			.63
Nonperforming		2.03			.21			.90			.22
Total		4.60	%		3.64	%		1.82	%		1.58	%
Other (b)
30-89 days		6.27	%		4.92	%		.52	%		.60	%
90 days or more		1.25			.90			.15			.19
Nonperforming		–			–			.12			.11
Total		7.52	%		5.82	%		.79	%		.90	%

(a) Excludes loans purchased from GNMA mortgage pools that are 90 days or more past due that continue to accrue interest.

(b) Includes revolving credit, installment, automobile and student loans.

U. S. Bancorp 15

Within the consumer finance loans at September 30, 2012, approximately $353 million of the delinquent residential mortgages and $64 million of the delinquent home equity and other retail loans were to customers defined as sub-prime, compared with $363 million and $63 million, respectively, at December 31, 2011.

The following table provides summary delinquency information for covered loans:

	Amount				As a Percent of Ending Loan Balances
(Dollars in Millions)	September 30, 2012		December 31, 2011		September 30, 2012			December 31, 2011
30-89 days	$	269	$	362		2.22	%		2.45	%
90 days or more		682		910		5.61			6.15
Nonperforming		449		926		3.69			6.26
Total	$	1,400	$	2,198		11.52	%		14.86	%

Restructured LoansIn certain circumstances, the Company may modify the terms of a loan to maximize the collection of amounts due when a borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term. In most cases the modification is either a concessionary reduction in interest rate, extension of the maturity date or reduction in the principal balance that would otherwise not be considered.

Troubled Debt Restructurings Concessionary modifications are classified as TDRs unless the modification results in only an insignificant delay in the payments to be received. TDRs accrue interest if the borrower complies with the revised terms and conditions and has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles. Loans classified as TDRs are considered impaired loans for reporting and measurement purposes.

The Company continues to work with customers to modify loans for borrowers who are experiencing financial difficulties, including those acquired through FDIC-assisted acquisitions. Many of the Company’s TDRs are determined on a case-by-case basis in connection with ongoing loan collection processes. The modifications vary within each of the Company’s loan classes. Commercial lending segment TDRs generally include extensions of the maturity date and may be accompanied by an increase or decrease to the interest rate. The Company may also work with the borrower to make other changes to the loan to mitigate losses, such as obtaining additional collateral and/or guarantees to support the loan.

The Company has also implemented certain residential mortgage loan restructuring programs that may result in TDRs. The Company participates in the U.S. Department of the Treasury Home Affordable

Modification Program (“HAMP”). HAMP gives qualifying homeowners an opportunity to permanently modify their loan and achieve more affordable monthly payments, with the U.S. Department of the Treasury compensating the Company for a portion of the reduction in monthly amounts due from borrowers participating in this program. The Company also modifies residential mortgage loans under Federal Housing Administration, Department of Veterans Affairs, and other internal programs. Under these programs, the Company provides concessions to qualifying borrowers experiencing financial difficulties. The concessions may include adjustments to interest rates, conversion of adjustable rates to fixed rates, extensions of maturity dates or deferrals of payments, capitalization of accrued interest and/or outstanding advances, or in limited situations, partial forgiveness of loan principal. In most instances, participation in residential mortgage loan restructuring programs requires the customer to complete a short-term trial period. A permanent loan modification is contingent on the customer successfully completing the trial period arrangement and the loan documents are not modified until that time. The Company reports loans in a trial period arrangement as TDRs.

Credit card and other retail loan modifications are generally part of distinct restructuring programs. The Company offers a workout program providing customers modification solutions over a specified time period, generally up to 60 months. The Company also provides modification programs to qualifying customers experiencing a temporary financial hardship in which reductions are made to monthly required minimum payments for up to 12 months.

In accordance with regulatory guidance, the Company considers secured consumer loans that have had debt discharged through bankruptcy where the borrower has not reaffirmed the debt to be TDRs. If the loan amount exceeds the collateral value, the loan is charged down to collateral value and the remaining amount reported as nonperforming.

Modifications to loans in the covered segment are similar in nature to that described above for non-covered loans, and the evaluation and determination of TDR status is similar, except that acquired loans restructured after acquisition are not considered TDRs for purposes of the Company’s accounting and disclosure if the loans evidenced credit deterioration as of the acquisition date and are accounted for in pools. Losses associated with modifications on covered loans, including the economic impact of interest rate reductions, are generally eligible for reimbursement under the loss sharing agreements.

16 U. S. Bancorp

The following table provides a summary of TDRs by loan class, including the delinquency status for TDRs that continue to accrue interest and TDRs included in nonperforming assets:

			As a Percent of Performing TDRs
At September 30, 2012 (Dollars in Millions)	Performing TDRs		30-89 Days Past Due			90 Days or More Past Due			Nonperforming TDRs			Total TDRs
Commercial	$	230		4.3	%		1.5	%	$	76	(a)	$	306
Commercial real estate		583		.8			–			222	(b)		805
Residential mortgages		2,076		6.8			5.1			326			2,402	(d)
Credit card		300		10.4			6.8			162	(c)		462
Other retail		198		8.4			3.6			71	(c)		269	(e)
TDRs, excluding GNMA and covered loans		3,387		6.0			4.0			857			4,244
Loans purchased from GNMA mortgage pools		1,631		9.9			48.1			–			1,631	(f)
Covered loans		371		3.6			10.6			121			492
Total	$	5,389		7.0	%		17.8	%	$	978		$	6,367

(a) Primarily represents loans less than six months from the modification date that have not met the performance period required to return to accrual status (generally six months) and small business credit cards with a modified rate equal to 0 percent.

(b) Primarily represents loans less than six months from the modification date that have not met the performance period required to return to accrual status (generally six months).

(c) Primarily represents loans with a modified rate equal to 0 percent.

(d) Includes $205 million of residential mortgage loans to borrowers that have had debt discharged through bankruptcy and $64 million in trial period arrangements.

(e) Includes $81 million of home equity and second mortgage loans to borrowers that have had debt discharged through bankruptcy and $2 million in trial period arrangements.

(f) Includes $153 million of Federal Housing Administration and Department of Veterans Affairs residential mortgage loans to borrowers that have had debt discharged through bankruptcy and $326 million in trial period arrangements.

Short-term Modifications The Company makes short-term modifications that it does not consider to be TDRs, in limited circumstances, to assist borrowers experiencing temporary hardships. Consumer lending programs include payment reductions, deferrals of up to three past due payments, and the ability to return to current status if the borrower makes required payments. The Company may also make short-term modifications to commercial lending loans, with the most common modification being an extension of the maturity date of three months or less. Such extensions generally are used when the maturity date is imminent and the borrower is experiencing some level of financial stress, but the Company believes the borrower will pay all contractual amounts owed. Short-term modifications were not material at September 30, 2012.

Nonperforming Assets The level of nonperforming assets represents another indicator of the potential for future credit losses. Nonperforming assets include nonaccrual loans, restructured loans not performing in accordance with modified terms and not accruing interest, restructured loans that have not met the performance period required to return to accrual status, other real estate owned and other nonperforming assets owned by the Company. Interest payments collected from assets on nonaccrual status are typically applied against the principal balance and not recorded as income.

At September 30, 2012, total nonperforming assets were $2.8 billion, compared with $3.8 billion at December 31, 2011. Excluding covered assets, nonperforming assets were $2.2 billion at September 30, 2012, compared with $2.6 billion at December 31, 2011. The $386 million (15.0 percent) decrease in nonperforming assets, excluding covered assets, was

primarily driven by reductions in nonperforming construction and development loans, as the Company continued to reduce exposure to these problem assets, as well as improvement in other commercial loan portfolios, partially offset by increases in nonperforming residential mortgages and other retail loans. These increases were principally the result of approximately $109 million of loans placed on nonaccrual status due to regulatory clarification in the treatment of residential mortgage and other consumer loans to borrowers who have had debt discharged through bankruptcy but continue to make payments on their loans, and the inclusion, beginning in the second quarter of 2012, of 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 on nonaccrual status, as nonperforming loans. These changes did not have a material impact on the Company’s allowance for credit losses. Nonperforming covered assets at September 30, 2012, were $647 million, compared with $1.2 billion at December 31, 2011. These assets are covered by loss sharing agreements with the FDIC that substantially reduce the risk of credit losses to the Company. The ratio of total nonperforming assets to total loans and other real estate was 1.30 percent (1.06 percent excluding covered assets) at September 30, 2012, compared with 1.79 percent (1.32 percent excluding covered assets) at December 31, 2011. The Company expects total nonperforming assets to trend lower in the fourth quarter of 2012.

Other real estate owned, excluding covered assets, was $259 million at September 30, 2012, compared with $404 million at December 31, 2011, and was related to foreclosed properties that previously secured loan balances.

U. S. Bancorp 17

Table 6 Nonperforming Assets (a)

(Dollars in Millions)	September 30, 2012			December 31, 2011
Commercial
Commercial	$	133		$	280
Lease financing		19			32
Total commercial		152			312
Commercial Real Estate
Commercial mortgages		392			354
Construction and development		239			545
Total commercial real estate		631			899
Residential Mortgages (b)		757			650
Credit Card		163			224
Other Retail
Retail leasing		1			—
Other		209			67
Total other retail		210			67
Total nonperforming loans, excluding covered loans		1,913			2,152
Covered Loans		449			926
Total nonperforming loans		2,362			3,078
Other Real Estate (c)(d)		259			404
Covered Other Real Estate (d)		198			274
Other Assets		16			18
Total nonperforming assets	$	2,835		$	3,774
Total nonperforming assets, excluding covered assets	$	2,188		$	2,574
Excluding covered assets:
Accruing loans 90 days or more past due (b)	$	644		$	843
Nonperforming loans to total loans		.93	%		1.10	%
Nonperforming assets to total loans plus other real estate (c)		1.06	%		1.32	%
Including covered assets:
Accruing loans 90 days or more past due (b)	$	1,326		$	1,753
Nonperforming loans to total loans		1.08	%		1.47	%
Nonperforming assets to total loans plus other real estate (c)		1.30	%		1.79	%

Changes in Nonperforming Assets

(Dollars in Millions)	Commercial and Commercial Real Estate			Credit Card, Other Retail and Residential Mortgages (f)			Covered Assets			Total
Balance December 31, 2011	$	1,475		$	1,099		$	1,200		$	3,774
Additions to nonperforming assets
New nonaccrual loans and foreclosed properties		710			898			209			1,817
Advances on loans		36			–			–			36
Total additions		746			898			209			1,853
Reductions in nonperforming assets
Paydowns, payoffs		(609	)		(242	)		(529	)		(1,380	)
Net sales		(229	)		(111	)		(189	)		(529	)
Return to performing status		(38	)		(90	)		(35	)		(163	)
Charge-offs (e)		(414	)		(297	)		(9	)		(720	)
Total reductions		(1,290	)		(740	)		(762	)		(2,792	)
Net additions to (reductions in) nonperforming assets		(544	)		158			(553	)		(939	)
Balance September 30, 2012	$	931		$	1,257		$	647		$	2,835

(a) Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due.

(b) Excludes $3.0 billion and $2.6 billion at September 30, 2012, and December 31, 2011, respectively, of loans purchased from GNMA mortgage pools that are 90 days or more past due that continue to accrue interest, as their repayments are primarily insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.

(c) Foreclosed GNMA loans of $596 million and $692 million at September 30, 2012, and December 31, 2011, respectively, continue to accrue interest and are recorded as other assets and excluded from nonperforming assets because they are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.

(d) Includes equity investments in entities whose principal assets are other real estate owned.

(e) Charge-offs exclude actions for certain card products and loan sales that were not classified as nonperforming at the time the charge-off occurred.

(f) Residential mortgage information excludes changes related to residential mortgages serviced by others.

18 U. S. Bancorp

The following table provides an analysis of other real estate owned, excluding covered assets, as a percent of their related loan balances, including geographical location detail for residential (residential mortgage, home equity and second mortgage) and commercial (commercial and commercial real estate) loan balances:

	Amount				As a Percent of Ending Loan Balances
(Dollars in Millions)	September 30, 2012		December 31, 2011		September 30, 2012			December 31, 2011
Residential
Minnesota	$	13	$	22		.22	%		.39	%
Illinois		12		10		.35			.31
Missouri		8		7		.29			.26
California		7		16		.08			.22
Wisconsin		5		6		.23			.29
All other states		74		90		.20			.26
Total residential		119		151		.20			.27
Commercial
California		25		26		.16			.18
Nevada		21		44		1.70			3.13
Ohio		13		18		.27			.38
Missouri		12		5		.28			.12
Arizona		10		16		.84			1.41
All other states		59		144		.08			.22
Total commercial		140		253		.14			.27
Total	$	259	$	404		.13	%		.21	%

Analysis of Loan Net Charge-Offs Total loan net charge-offs were $538 million for the third quarter and $1.6 billion for the first nine months of 2012, compared with $669 million and $2.2 billion for the same periods of 2011. Net charge-offs for the third quarter and first nine months of 2012, included $54 million of incremental

charge-offs due to clarification of the regulatory guidance related to residential mortgage and other consumer loans to borrowers who have had debt discharged through bankruptcy but continue to make payments on their loans. The ratio of total loan net charge-offs to average loans outstanding on an annualized basis for the third quarter and first nine months of 2012 was .99 percent and 1.02 percent, respectively, compared with 1.31 percent and 1.49 percent for the same periods of 2011. The year-over-year decreases in total net charge-offs were due to improvement in most loan portfolios, as economic conditions continue to slowly improve. Given current economic conditions, the Company expects the level of net charge-offs to be lower in the fourth quarter of 2012.

Commercial and commercial real estate loan net charge-offs for the third quarter of 2012 were $91 million (.37 percent of average loans outstanding on an annualized basis), compared with $224 million (1.01 percent of average loans outstanding on an annualized basis) for the third quarter of 2011. Commercial and commercial real estate loan net charge-offs for the first nine months of 2012 were $372 million (.52 percent of average loans outstanding on an annualized basis), compared with $748 million (1.17 percent of average loans outstanding on an annualized basis) for the first nine months of 2011. The decreases reflected the impact of efforts to resolve and reduce exposure to problem assets in the Company’s commercial real estate portfolios and improvement in the other commercial portfolios due to the stabilizing economy.

Table 7 Net Charge-offs as a Percent of Average Loans Outstanding

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Commercial
Commercial		.41	%		.77	%		.48	%		.90	%
Lease financing		.50			.61			.71			.81
Total commercial		.42			.75			.50			.89
Commercial Real Estate
Commercial mortgages		.26			.93			.45			.81
Construction and development		.33			3.43			1.05			4.60
Total commercial real estate		.27			1.39			.55			1.56
Residential Mortgages		1.17			1.42			1.16			1.51
Credit Card (a)		4.01			4.40			4.05			5.35
Other Retail
Retail leasing		–			(.08	)		.03			–
Home equity and second mortgages		2.04			1.59			1.71			1.66
Other		1.06			1.11			.95			1.20
Total other retail		1.30			1.16			1.13			1.25
Total loans, excluding covered loans		1.04			1.42			1.09			1.62
Covered Loans		.06			.08			.03			.08
Total loans		.99	%		1.31	%		1.02	%		1.49	%

(a) Net charge-off as a percent of average loans outstanding, excluding portfolio purchases where the acquired loans were recorded at fair value at the purchase date, were 4.17 percent and 4.54 percent for the three months ended September 30, 2012 and 2011, respectively, and 4.21 percent and 5.53 percent for the nine months ended September 30, 2012 and 2011, respectively.

U. S. Bancorp 19

Residential mortgage loan net charge-offs for the third quarter of 2012 were $121 million (1.17 percent of average loans outstanding on an annualized basis), compared with $122 million (1.42 percent of average loans outstanding on an annualized basis) for the third quarter of 2011. Third quarter 2012 residential mortgage loan net charge-offs included $22 million of incremental charge-offs related to regulatory clarification on bankruptcy loans. Residential mortgage loan net charge-offs for the first nine months of 2012 were $342 million (1.16 percent of average loans outstanding on an annualized basis), compared with $370 million (1.51 percent of average loans outstanding on an annualized basis) for the first nine months of 2011. Credit card loan net charge-offs for the third quarter of 2012 were $167 million (4.01 percent of average loans outstanding on an annualized basis), compared with $178 million (4.40 percent of average loans outstanding on an annualized basis) for the third quarter of 2011. Credit card loan net charge-offs for the first nine months of 2012 were $506 million (4.05 percent of average loans outstanding on an annualized basis), compared with $641 million (5.35 percent of average loans outstanding on an

annualized basis) for the first nine months of 2011. Other retail loan net charge-offs for the third quarter of 2012 were $157 million (1.30 percent of average loans outstanding on an annualized basis), compared with $142 million (1.16 percent of average loans outstanding on an annualized basis) for the third quarter of 2011. Third quarter other retail loan net charge-offs included $32 million of incremental charge-offs related to regulatory clarification on bankruptcy loans. Other retail loan net charge-offs for the first nine months of 2012 were $406 million (1.13 percent of average loans outstanding on an annualized basis), compared with $452 million (1.25 percent of average loans outstanding on an annualized basis) for the first nine months of 2011. Total residential mortgage, credit card and other retail loan net charge-offs for the third quarter and first nine months of 2012, increased $3 million (.7 percent) and decreased $209 million (14.3 percent), respectively, compared with the same periods of 2011, reflecting the current year incremental charge-offs in the residential mortgages and other retail portfolios related to regulatory clarification on bankruptcy loans, offset by the impact of more stable economic conditions.

The following table provides an analysis of net charge-offs as a percent of average loans outstanding by channel:

	Three Months Ended September 30,										Nine Months Ended September 30,
	Average Loans				Percent of Average Loans						Average Loans				Percent of Average Loans
(Dollars in Millions)	2012		2011		2012			2011			2012		2011		2012			2011
Consumer Finance
Residential mortgages	$	13,527	$	12,397		2.71	%		2.59	%	$	13,303	$	12,127		2.49	%		2.87	%
Home equity and second mortgages		2,250		2,442		5.48			3.57			2,304		2,476		4.35			4.32
Other		333		501		4.78			3.96			376		536		3.91			2.99
Other Consumer Lending
Residential mortgages	$	27,442	$	21,629		.42	%		.75	%	$	26,025	$	20,727		.48	%		.71	%
Home equity and second mortgages		15,079		16,068		1.53			1.28			15,315		16,172		1.32			1.25
Other		25,073		24,272		1.02			1.05			24,778		24,118		.91			1.16
Total Company
Residential mortgages	$	40,969	$	34,026		1.17	%		1.42	%	$	39,328	$	32,854		1.16	%		1.51	%
Home equity and second mortgages		17,329		18,510		2.04			1.59			17,619		18,648		1.71			1.66
Other (a)		25,406		24,773		1.06			1.11			25,154		24,654		.95			1.20

(a) Includes revolving credit, installment, automobile and student loans

The following table provides further information on net charge-offs as a percent of average loans outstanding for the consumer finance loans:

	Three Months Ended September 30,										Nine Months Ended September 30,
	Average Loans				Percent of Average Loans						Average Loans				Percent of Average Loans
(Dollars in Millions)	2012		2011		2012			2011			2012		2011		2012			2011
Residential mortgages
Sub-prime borrowers	$	1,699	$	1,940		7.49	%		6.14	%	$	1,757	$	2,009		6.61	%		6.12	%
Other borrowers		11,828		10,457		2.02			1.93			11,546		10,118		1.86			2.22
Total	$	13,527	$	12,397		2.71	%		2.59	%	$	13,303	$	12,127		2.49	%		2.87	%
Home equity and second mortgages
Sub-prime borrowers	$	398	$	480		11.00	%		8.27	%	$	417	$	503		8.65	%		9.30	%
Other borrowers		1,852		1,962		4.30			2.43			1,887		1,973		3.40			3.05
Total	$	2,250	$	2,442		5.48	%		3.57	%	$	2,304	$	2,476		4.35	%		4.32	%

20 U. S. Bancorp

Analysis and Determination of the Allowance for Credit Losses The allowance for credit losses reserves for probable and estimable losses incurred in the Company’s loan and lease portfolio and includes certain amounts that do not represent loss exposure to the Company because those losses are recoverable under loss sharing agreements with the FDIC. The allowance for credit losses is increased through provisions charged to operating earnings and reduced by net charge-offs. Management evaluates the allowance each quarter to ensure it appropriately reserves for incurred losses.

The allowance recorded for loans in the commercial lending segment is based on reviews of individual credit relationships and considers the migration analysis of commercial lending segment loans and actual loss experience. The Company currently uses an 11-year period of historical losses in considering actual loss experience. This timeframe and the results of the analysis are evaluated quarterly to determine the appropriateness. The allowance recorded for impaired loans greater than $5 million in the commercial lending segment is based on an individual loan analysis utilizing expected cash flows discounted using the original effective interest rate, the observable market price, or the fair value of the collateral for collateral-dependent loans. The allowance recorded for all other commercial lending segment loans is determined on a homogenous pool basis and includes consideration of product mix, risk characteristics of the portfolio, bankruptcy experience, and historical losses, adjusted for current trends.

The allowance recorded for purchased impaired and TDR loans in the consumer lending segment is determined on a homogenous pool basis utilizing expected cash flows discounted using the original effective interest rate of the pool. The allowance for collateral-dependent loans in the consumer lending segment is determined based on the fair value of the collateral. The allowance recorded for all other consumer lending segment loans is determined on a homogenous pool basis and includes consideration of product mix, risk characteristics of the portfolio, bankruptcy experience, delinquency status and historical losses, adjusted for current trends. Credit card and other retail loans 90 days or more past due are generally not placed on nonaccrual status because of the relatively short period of time to charge-off and, therefore, are excluded from nonperforming loans and measures that include nonperforming loans as part of the calculation.

When evaluating the appropriateness of the allowance for credit losses for any loans and lines in a junior lien position, the Company considers the delinquency and modification status of the first lien. At September 30, 2012, the Company serviced the first lien on 31 percent of

the home equity loans and lines in a junior lien position. The Company also considers information received from its primary regulator on the status of the first liens that are serviced by other large servicers in the industry and the status of first lien mortgage accounts reported on customer credit bureau files. Regardless of whether or not the Company services the first lien, an assessment is made of economic conditions, problem loans, recent loss experience and other factors in determining the allowance for credit losses. Based on the available information, the Company estimated $541 million or 3.2 percent of the total home equity portfolio at September 30, 2012, represented junior liens where the first lien was delinquent or modified.

The Company uses historical loss experience on the loans and lines in a junior lien position where the first lien is serviced by the Company or can be identified in credit bureau data to establish loss estimates for junior lien loans and lines the Company services when they are current, but the first lien is delinquent or modified. Historically, the number of junior lien defaults in any period has been a small percentage of the total portfolio (for example, only 1.5 percent for the twelve months ended September 30, 2012), and the long-term average loss rate on the small percentage of loans that default has been approximately 80 percent. In periods of economic stress such as the current environment, the Company has experienced loss severity rates in excess of 90 percent for junior liens that default. In addition, the Company obtains updated credit scores on its home equity portfolio each quarter and in some cases more frequently, and uses this information to qualitatively supplement its loss estimation methods. Credit score distributions for the portfolio are monitored monthly and any changes in the distribution are one of the factors considered in assessing the Company’s loss estimates.

The allowance for covered segment loans is evaluated each quarter in a manner similar to that described for non-covered loans, and represents any decreases in expected cash flows on those loans after the acquisition date. The provision for credit losses for covered segment loans considers the indemnification provided by the FDIC.

In addition, the evaluation of the appropriate allowance for credit losses for purchased non-impaired loans acquired after January 1, 2009, in the various loan segments considers credit discounts recorded as a part of the initial determination of the fair value of the loans. For these loans, no allowance for credit losses is recorded at the purchase date. Credit discounts representing the principal losses expected over the life of the loans are a component of the initial fair value. Subsequent to the purchase date, the methods utilized to estimate the required allowance for credit losses for

U. S. Bancorp 21

these loans is similar to originated loans; however, the Company records a provision for credit losses only when the required allowance, net of any expected reimbursement under any loss sharing agreements with the FDIC, exceeds any remaining credit discounts.

The evaluation of the appropriate allowance for credit losses for purchased impaired loans in the various loan segments considers the expected cash flows to be collected from the borrower. These loans are initially recorded at fair value and therefore no allowance for credit losses is recorded at the purchase date.

Subsequent to the purchase date, the expected cash flows of purchased loans are subject to evaluation. Decreases in the present value of expected cash flows are recognized by recording an allowance for credit losses with the related provision for credit losses reduced for the amount reimbursable by the FDIC, where applicable. If the expected cash flows on the purchased loans increase such that a previously recorded impairment allowance can be reversed, the Company records a reduction in the allowance with a related reduction in losses reimbursable by the FDIC, where applicable. Increases in expected cash flows of purchased loans and decreases in expected cash flows of the FDIC indemnification assets, when there are no previous impairment allowances, are considered together and recognized over the remaining life of the loans. Refer to Note 3 for further information.

The Company’s methodology for determining the appropriate allowance for credit losses for all the loan segments also considers the imprecision inherent in the methodologies used. As a result, in addition to the amounts determined under the methodologies described above, management also considers the potential impact of other qualitative factors which include, but are not limited to, economic factors; geographic and other concentration risks; delinquency and nonaccrual trends; current business conditions; changes in lending policy, underwriting standards, internal review and other relevant business practices; and the regulatory environment. The consideration of these items results in adjustments to allowance amounts included in the Company’s allowance for credit losses for each of the above loan segments.

Refer to “Management’s Discussion and Analysis — Analysis and Determination of the Allowance for Credit Losses” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, for further discussion on the analysis and determination of the allowance for credit losses.

At September 30, 2012, the allowance for credit losses was $4.8 billion (2.19 percent of total loans and 2.26 percent of loans excluding covered loans),

compared with an allowance of $5.0 billion (2.39 percent of total loans and 2.52 percent of loans excluding covered loans) at December 31, 2011. The ratio of the allowance for credit losses to nonperforming loans was 202 percent (244 percent excluding covered loans) at September 30, 2012, compared with 163 percent (228 percent excluding covered loans) at December 31, 2011. The ratio of the allowance for credit losses to annualized loan net charge-offs was 223 percent at September 30, 2012, compared with 176 percent of full year 2011 net charge-offs at December 31, 2011, as net charge-offs continue to decline due to stabilizing economic conditions.

Residual Value Risk Management The Company manages its risk to changes in the residual value of leased assets through disciplined residual valuation setting at the inception of a lease, diversification of its leased assets, regular residual asset valuation reviews and monitoring of residual value gains or losses upon the disposition of assets. As of September 30, 2012, no significant change in the amount of residual values or concentration of the portfolios had occurred since December 31, 2011. Refer to “Management’s Discussion and Analysis — Residual Value Risk Management” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, for further discussion on residual value risk management.

Operational Risk Management The Company manages operational risk through a risk management framework and its internal control processes. Within this framework, the Risk Management Committee of the Company’s Board of Directors provides oversight and assesses the most significant operational risks facing the Company within its business lines. Under the guidance of the Risk Management Committee, enterprise risk management personnel establish policies and interact with business lines to monitor significant operating risks on a regular basis. Business lines have direct and primary responsibility and accountability for identifying, controlling, and monitoring operational risks embedded in their business activities. An operational risk that has been recently increasing for large financial institutions is information technology risk such as instances of cyber attacks or security breaches of the networks, systems or devices that the Company’s customers use to access the Company’s products and services. In addition, enterprise risk management is responsible for establishing a culture of compliance and compliance program standards and policies, and performing risk assessments on the business lines’ adherence to laws, rules, regulations and internal policies and procedures. The Consumer Financial

22 U. S. Bancorp

Table 8 Summary of Allowance for Credit Losses

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	4,864		$	5,308		$	5,014		$	5,531
Charge-Offs
Commercial
Commercial		75			108			243			348
Lease financing		15			18			53			64
Total commercial		90			126			296			412
Commercial real estate
Commercial mortgages		33			70			123			185
Construction and development		14			61			83			261
Total commercial real estate		47			131			206			446
Residential mortgages		127			124			357			380
Credit card		186			203			585			712
Other retail
Retail leasing		3			2			7			8
Home equity and second mortgages		96			78			245			245
Other		88			95			251			298
Total other retail		187			175			503			551
Covered loans (a)		2			3			4			10
Total charge-offs		639			762			1,951			2,511
Recoveries
Commercial
Commercial		16			18			50			50
Lease financing		8			9			23			28
Total commercial		24			27			73			78
Commercial real estate
Commercial mortgages		13			2			21			13
Construction and development		9			4			36			19
Total commercial real estate		22			6			57			32
Residential mortgages		6			2			15			10
Credit card		19			25			79			71
Other retail
Retail leasing		3			3			6			8
Home equity and second mortgages		7			4			19			14
Other		20			26			72			77
Total other retail		30			33			97			99
Covered loans (a)		–			–			1			–
Total recoveries		101			93			322			290
Net Charge-Offs
Commercial
Commercial		59			90			193			298
Lease financing		7			9			30			36
Total commercial		66			99			223			334
Commercial real estate
Commercial mortgages		20			68			102			172
Construction and development		5			57			47			242
Total commercial real estate		25			125			149			414
Residential mortgages		121			122			342			370
Credit card		167			178			506			641
Other retail
Retail leasing		–			(1	)		1			–
Home equity and second mortgages		89			74			226			231
Other		68			69			179			221
Total other retail		157			142			406			452
Covered loans (a)		2			3			3			10
Total net charge-offs		538			669			1,629			2,221
Provision for credit losses		488			519			1,439			1,846
Net change for credit losses to be reimbursed by the FDIC		(10	)		32			(20	)		34
Other changes		(33	)		–			(33	)		–
Balance at end of period	$	4,771		$	5,190		$	4,771		$	5,190
Components
Allowance for loan losses, excluding losses to be reimbursed by the FDIC	$	4,426		$	4,823
Allowance for credit losses to be reimbursed by the FDIC		55			127
Liability for unfunded credit commitments		290			240
Total allowance for credit losses	$	4,771		$	5,190
Allowance for Credit Losses as a Percentage of
Period-end loans, excluding covered loans		2.26	%		2.66	%
Nonperforming loans, excluding covered loans		244			196
Nonperforming and accruing loans 90 days or more past due, excluding covered loans		182			149
Nonperforming assets, excluding covered assets		213			166
Annualized net charge-offs, excluding covered loans		219			190
Period-end loans		2.19	%		2.53	%
Nonperforming loans		202			145
Nonperforming and accruing loans 90 days or more past due		129			100
Nonperforming assets		168			120
Annualized net charge-offs		223			196

Note: At September 30, 2012 and 2011, $1.8 billion and $1.9 billion, respectively, of the total allowance for credit losses related to incurred losses on credit card and other retail loans.

(a) Relates to covered loan charge-offs and recoveries not reimbursable by the FDIC.

U. S. Bancorp 23

Protection Bureau has increasingly become active in its oversight of business practices relating to various consumer financial products, increasing enforcement risk in this area and resulting in fines and penalties against certain of the Company’s competitors. Refer to “Management’s Discussion and Analysis — Operational Risk Management” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, for further discussion on operational risk management.

Interest Rate Risk Management In the banking industry, changes in interest rates are a significant risk that can impact earnings, market valuations and the safety and soundness of an entity. To minimize the volatility of net interest income and the market value of assets and liabilities, the Company manages its exposure to changes in interest rates through asset and liability management activities within guidelines established by its Asset Liability Committee (“ALCO”) and approved by the Board of Directors. The ALCO has the responsibility for approving and ensuring compliance with the ALCO management policies, including interest rate risk exposure. The Company uses net interest income simulation analysis and market value of equity modeling for measuring and analyzing consolidated interest rate risk.

Net Interest Income Simulation Analysis Management estimates the impact on net interest income of changes in market interest rates under a number of scenarios, including gradual shifts, immediate and sustained parallel shifts, and flattening or steepening of the yield curve. The table on the following page summarizes the projected impact to net interest income over the next 12 months of various potential interest rate changes. The ALCO policy limits the estimated change in net interest income in a gradual 200 basis point (“bps”) rate change scenario to a 4.0 percent decline of forecasted net interest income over the next 12 months. At September 30, 2012, and December 31, 2011, the Company was within policy. Refer to “Management’s Discussion and Analysis — Net Interest Income Simulation Analysis” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, for further discussion on net interest income simulation analysis.

Market Value of Equity Modeling The Company also manages interest rate sensitivity by utilizing market value of equity modeling, which measures the degree to which the market values of the Company’s assets and liabilities and off-balance sheet instruments will change given a change in interest rates. Management measures

the impact of changes in market interest rates under a number of scenarios, including immediate and sustained parallel shifts, and flattening or steepening of the yield curve. The ALCO policy limits the change in market value of equity in a 200 bps parallel rate shock to a 15.0 percent decline. A 200 bps increase would have resulted in a 2.6 percent decrease in the market value of equity at September 30, 2012, compared with a 2.0 percent decrease at December 31, 2011. A 200 bps decrease, where possible given current rates, would have resulted in a 5.6 percent decrease in the market value of equity at September 30, 2012, compared with a 6.4 percent decrease at December 31, 2011. Refer to “Management’s Discussion and Analysis — Market Value of Equity Modeling” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, for further discussion on market value of equity modeling.

Use of Derivatives to Manage Interest Rate and Other Risks To reduce the sensitivity of earnings to interest rate, prepayment, credit, price and foreign currency fluctuations (“asset and liability management positions”), the Company enters into derivative transactions. The Company uses derivatives for asset and liability management purposes primarily in the following ways:

• To convert fixed-rate debt from fixed-rate payments to floating-rate payments;

• To convert the cash flows associated with floating-rate loans and debt from floating-rate payments to fixed-rate payments;

• To mitigate changes in value of the Company’s mortgage origination pipeline, funded mortgage loans held for sale and MSRs; and

• To mitigate remeasurement volatility of foreign currency denominated balances.

To manage these risks, the Company may enter into exchange-traded and over-the-counter derivative contracts, including interest rate swaps, swaptions, futures, forwards and options. In addition, the Company enters into interest rate and foreign exchange derivative contracts to support the business requirements of its customers (“customer-related positions”). The Company minimizes the market and liquidity risks of customer-related positions by entering into similar offsetting positions with broker-dealers. The Company does not utilize derivatives for speculative purposes.

The Company does not designate all of the derivatives that it enters into for risk management purposes as accounting hedges because of the inefficiency of applying the accounting requirements and

24 U. S. Bancorp

Sensitivity of Net Interest Income

September 30, 2012

December 31, 2011

Down 50 bps Immediate

Up 50 bps Immediate

Down 200 bps Gradual

Up 200 bps Gradual

Down 50 bps Immediate

Up 50 bps Immediate

Down 200 bps Gradual

Up 200 bps Gradual

Net interest income

*

1.54

%

*

2.06

%

*

1.57

%

*

1.92

%

* Given the current level of interest rates, a downward rate scenario can not be computed.

may instead elect fair value accounting for the related hedged items. In particular, the Company enters into interest rate swaps, forward commitments to buy to-be-announced securities (“TBAs”), U.S. Treasury futures and options on U.S. Treasury futures to mitigate fluctuations in the value of its MSRs, but does not designate those derivatives as accounting hedges.

Additionally, the Company uses forward commitments to sell TBAs and other commitments to sell residential mortgage loans at specified prices to economically hedge the interest rate risk in its residential mortgage loan production activities. At September 30, 2012, the Company had $20.4 billion of forward commitments to sell, hedging $9.8 billion of mortgage loans held for sale and $17.3 billion of unfunded mortgage loan commitments. The forward commitments to sell and the unfunded mortgage loan commitments on loans intended to be sold are considered derivatives under the accounting guidance related to accounting for derivative instruments and hedging activities. The Company has elected the fair value option for the mortgage loans held for sale.

Derivatives are subject to credit risk associated with counterparties to the contracts. Credit risk associated with derivatives is measured by the Company based on the probability of counterparty default. The Company manages the credit risk of its derivative positions by diversifying its positions among various counterparties, by entering into master netting agreements, and, where possible, by requiring collateral agreements. The Company may also transfer counterparty credit risk related to interest rate swaps to third parties through the use of risk participation agreements.

For additional information on derivatives and hedging activities, refer to Note 10 in the Notes to Consolidated Financial Statements.

Market Risk Management In addition to interest rate risk, the Company is exposed to other forms of market risk, principally related to trading activities which support customers’ strategies to manage their own foreign currency, interest rate risk and funding activities. The Company’s Market Risk Committee (“MRC”), underneath the ALCO, oversees market risk

management. The MRC monitors and reviews the Company’s trading positions and establishes policies for market risk management, including exposure limits for each portfolio. The Company uses a Value at Risk (“VaR”) approach to measure general market risk. Theoretically, VaR represents the statistical risk of loss the Company has to adverse market movements over a one-day time horizon. The Company uses the Historical Simulation method to calculate VaR for its trading businesses measured at the ninety-ninth percentile using a one-year look-back period for distributions derived from past market data. The market factors used in the calculations include those pertinent to market risks inherent in the underlying trading portfolios, principally those that affect its investment grade bond trading business, foreign currency transaction business, client derivatives business, loan trading business and municipal securities business. On average, the Company expects the one-day VaR to be exceeded two to three times per year in each business. The Company monitors the effectiveness of its risk programs by back-testing the performance of its VaR models, regularly updating the historical data used by the VaR models and stress testing. If the Company were to experience market losses in excess of the estimated VaR more often than expected, the VaR models and associated assumptions would be analyzed and adjusted. The Company stress tests its market risk measurements to provide management with perspectives on market events that may not be captured by its VaR models, including worst case historical market movement combinations that have not necessarily occurred on the same date.

The average, high and low VaR amounts for the Company’s trading positions for the nine months ended September 30, 2012, were $2 million, $3 million and $1 million, respectively, compared with $2 million, $4 million and $1 million, respectively, for the nine months ended September 30, 2011.

The Company also measures the market risk of its hedging activities related to MSRs and residential mortgage loans held for sale using the Historical Simulation method. The VaRs are measured at the ninety-ninth percentile and employ factors pertinent to the market risks inherent in the valuation of the assets

U. S. Bancorp 25

and hedges. A three-year look-back period is used to obtain past market data. The Company monitors the effectiveness of the models through back-testing, updating the data and regular validations. The average, high and low VaR amounts for the MSRs and related hedges for the nine months ended September 30, 2012, were $4 million, $8 million and $2 million, respectively, compared with $8 million, $14 million and $3 million, respectively, for the nine months ended September 30, 2011. The average, high and low VaR amounts for residential mortgage loans held for sale and related hedges for the nine months ended September 30, 2012, were $2 million, $7 million and $1 million, respectively, compared with $3 million, $7 million and $2 million, respectively, for the nine months ended September 30, 2011.

Liquidity Risk Management The Company’s liquidity risk management process is designed to identify, measure, and manage the Company’s funding and liquidity risk to meet its daily funding needs and to address expected and unexpected changes in its funding requirements. The Company engages in various activities to manage its liquidity risk. These include diversifying its funding sources, stress testing, and holding readily-marketable assets which can be used as a source of liquidity if needed. In addition, the Company’s profitable operations, sound credit quality and strong capital position have enabled it to develop a large and reliable base of core deposit funding within its market areas and in domestic and global capital markets.

The Risk Management Committee of the Company’s Board of Directors oversees the Company’s liquidity risk management process and approves the Company’s liquidity policy and reviews its contingency funding plan. The ALCO reviews and approves the Company’s liquidity policies and guidelines, and regularly assesses the Company’s ability to meet funding requirements arising from adverse company-specific or market events.

The Company regularly projects its funding needs under various stress scenarios and maintains contingency plans consistent with the Company’s access to diversified sources of contingent funding. The Company maintains a substantial level of total available liquidity in the form of on-balance sheet and off-balance sheet funding sources. These include cash at the Federal Reserve, unencumbered liquid assets, and capacity to borrow at the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Discount Window. At September 30, 2012, the fair value of unencumbered available-for-sale and held-to-maturity investment securities totaled $57.3 billion, compared with $48.7 billion at December 31,

2011. Refer to Table 4 and “Balance Sheet Analysis” for further information on investment securities maturities and trends. Asset liquidity is further enhanced by the Company’s ability to pledge loans to access secured borrowing facilities through the FHLB and Federal Reserve Bank. At September 30, 2012, the Company could have borrowed an additional $66.0 billion at the FHLB and Federal Reserve Bank based on collateral available for additional borrowings.

The Company’s diversified deposit base provides a sizeable source of relatively stable and low-cost funding, while reducing the Company’s reliance on the wholesale markets. Total deposits were $244.2 billion at September 30, 2012, compared with $230.9 billion at December 31, 2011, reflecting organic growth in core deposits and acquired balances. Refer to “Balance Sheet Analysis” for further information on the Company’s deposits.

Additional funding is provided by long-term debt and short-term borrowings. Long-term debt was $26.3 billion at September 30, 2012, and is an important funding source because of its multi-year borrowing structure. Short-term borrowings were $27.9 billion at September 30, 2012, and supplement the Company’s other funding sources. Refer to “Balance Sheet Analysis” for further information on the Company’s long-term debt and short-term borrowings.

In addition to assessing liquidity risk on a consolidated basis, the Company monitors the parent company liquidity and maintains sufficient funding to meet expected parent company obligations, without access to the wholesale funding markets or dividends from subsidiaries, for 12 months when forecasted payments of common stock dividends are included and 24 months assuming dividends were reduced to zero. The parent company currently has available funds on its balance sheet considerably greater than the amounts required to satisfy these conditions.

Refer to “Management’s Discussion and Analysis — Liquidity Risk Management” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, for further discussion on liquidity risk management.

At September 30, 2012, parent company long-term debt outstanding was $12.8 billion, compared with $14.6 billion at December 31, 2011. The $1.8 billion decrease was primarily due to $2.7 billion of medium-term note maturities and $2.7 billion of redemptions of junior subordinated debentures, partially offset by issuances of $1.3 billion of subordinated debt and $2.3 billion of medium-term notes. As of September 30, 2012, there was no parent company debt scheduled to mature in the remainder of 2012.

26 U. S. Bancorp

Federal banking laws regulate the amount of dividends that may be paid by banking subsidiaries without prior approval. The amount of dividends available to the parent company from its banking subsidiaries after meeting the regulatory capital requirements for well-capitalized banks was approximately $8.3 billion at September 30, 2012.

European Exposures Certain European countries have experienced severe credit deterioration. The Company does not hold sovereign debt of any European country, but may have indirect exposure to sovereign debt through its investments in, and transactions with, European banks. At September 30, 2012, the Company had investments in perpetual preferred stock issued by European banks with an amortized cost totaling $99 million and unrealized losses totaling $10 million, compared with an amortized cost totaling $169 million and unrealized losses totaling $48 million, at December 31, 2011. The Company also transacts with various European banks as counterparties to interest rate swaps and foreign currency transactions for its hedging and customer-related activities, however none of these banks are domiciled in the countries experiencing the most significant credit deterioration. These derivative transactions are subject to master netting and collateral support agreements which significantly limit the Company’s exposure to loss as they generally require daily posting of collateral. At September 30, 2012, the Company was in a net payable position to each of these European banks.

The Company has not bought or sold credit protection on the debt of any European country or any company domiciled in Europe, nor does it provide retail lending services in Europe. While the Company does not offer commercial lending services in Europe, it does provide financing to domestic multinational corporations that generate revenue from customers in European countries and provides a limited number of corporate credit cards to their European subsidiaries. While an economic downturn in Europe could have a negative impact on these customers’ revenues, it is unlikely that any effect on the overall credit worthiness of these multinational corporations would be material to the Company.

The Company provides merchant processing and corporate trust services in Europe and through banking affiliations in Europe. Operating cash for these businesses are deposited on a short-term basis with certain European banks. However, exposure is mitigated by the Company placing deposits at multiple banks and managing the amounts on deposit at any bank based on institution-specific deposit limits. At September 30, 2012,

the Company had an aggregate amount on deposit with European banks of approximately $400 million.

The money market funds managed by an affiliate of the Company do not have any investments in European sovereign debt. Other than investments in banks in the countries of Sweden, Switzerland, Norway, the Netherlands and the United Kingdom, those funds do not have any unsecured investments in banks domiciled in the Eurozone.

Off-Balance Sheet Arrangements Off-balance sheet arrangements include any contractual arrangements to which an unconsolidated entity is a party, under which the Company has an obligation to provide credit or liquidity enhancements or market risk support. In the ordinary course of business, the Company enters into an array of commitments to extend credit, letters of credit and various forms of guarantees that may be considered off-balance sheet arrangements. Refer to Note 12 of the Notes to Consolidated Financial Statements for further information on these arrangements. The Company has not utilized private label asset securitizations as a source of funding. Off-balance sheet arrangements also include any obligation related to a variable interest held in an unconsolidated entity that provides financing, liquidity, credit enhancement or market risk support. Refer to Note 4 of the Notes to Consolidated Financial Statements for further information related to the Company’s interests in variable interest entities.

Capital Management The Company is committed to managing capital to maintain strong protection for depositors and creditors and for maximum shareholder benefit. The Company also manages its capital to exceed regulatory capital requirements for well-capitalized bank holding companies. These requirements follow the Capital Accord of the Basel Committee on Banking Supervision (“Basel I”). Table 9 provides a summary of regulatory capital ratios defined by banking regulators under the FDIC Improvement Act prompt corrective action provisions applicable to all banks, as of September 30, 2012, and December 31, 2011. All regulatory ratios exceeded regulatory “well-capitalized” requirements. In 2010, the Basel Committee on Banking Supervision issued Basel III, a global regulatory framework, proposed to enhance international capital standards. In June 2012, U.S. banking regulators proposed regulatory enhancements to the regulatory capital requirements for U.S. banks, which implement aspects of Basel III and the Dodd-Frank Act, such as redefining the regulatory capital elements and minimum capital ratios, introducing regulatory capital buffers above those minimums, revising the rules for calculating

U. S. Bancorp 27

risk-weighted assets and introducing a new Tier 1 common equity ratio. The Company continues to evaluate these proposals, but does not expect their impact to be material to the financial statements.

Total U.S. Bancorp shareholders’ equity was $38.7 billion at September 30, 2012, compared with $34.0 billion at December 31, 2011. The increase was primarily the result of corporate earnings, the issuance of $2.2 billion of non-cumulative perpetual preferred stock to replace certain junior subordinated debentures, due to proposed rule changes for securities that qualify as Tier 1 capital, and changes in unrealized gains and losses on investment securities included in other comprehensive income, partially offset by dividends and common share repurchases. Refer to “Management’s Discussion and Analysis — Capital Management” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, for further discussion on capital management.

The Company believes certain capital ratios in addition to regulatory capital ratios defined by banking regulators under the FDIC Improvement Act prompt corrective action provisions are useful in evaluating its capital adequacy. The Company’s Tier 1 common equity (using Basel I definition) and tangible common equity, as a percent of risk-weighted assets, were 9.0 percent and 8.8 percent, respectively, at September 30, 2012, compared with 8.6 percent and 8.1 percent, respectively, at December 31, 2011. The Company’s tangible common equity divided by tangible assets was 7.2 percent at September 30, 2012, compared with 6.6 percent at December 31, 2011. Additionally, the Company’s approximate Tier 1 common equity to risk-weighted assets ratio using proposed rules for the Basel III standardized approach released June 2012, was 8.2 percent at September 30, 2012. Refer to “Non-GAAP Financial Measures” for further information regarding the calculation of these ratios.

On March 13, 2012, the Company increased its dividend rate per common share by 56 percent, from $.125 per quarter to $.195 per quarter.

On March 13, 2012, the Company announced its Board of Directors had approved an authorization to

repurchase 100 million shares of common stock through March 31, 2013. All shares repurchased during the third quarter of 2012 were repurchased under this authorization.

The following table provides a detailed analysis of all shares repurchased by the Company during the third quarter of 2012:

Time Period	Total Number of Shares Purchased as Part of the Program		Average Price Paid per Share		Maximum Number of Shares that May Yet Be Purchased Under the Program
July		9,243	$	33.17		84,005,493
August		3,625,978		33.36		80,379,515
September		13,487,082		34.07		66,892,433
Total		17,122,303	$	33.92		66,892,433

LINE OF BUSINESS FINANCIAL REVIEW

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.

Basis for Financial Presentation Business line results are derived from the Company’s business unit profitability reporting systems by specifically attributing managed balance sheet assets, deposits and other liabilities and their related income or expense. Refer to “Management’s Discussion and Analysis — Line of Business Financial Review” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, for further discussion on the business lines’ basis for financial presentation.

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

Table 9 Regulatory Capital Ratios

(Dollars in Millions)	September 30, 2012			December 31, 2011
Tier 1 capital	$	30,766		$	29,173
As a percent of risk-weighted assets		10.9	%		10.8	%
As a percent of adjusted quarterly average assets (leverage ratio)		9.2	%		9.1	%
Total risk-based capital	$	37,559		$	36,067
As a percent of risk-weighted assets		13.3	%		13.3	%

28 U. S. Bancorp

changes were made and, accordingly, 2011 results were restated and presented on a comparable basis.

Wholesale Banking and Commercial Real Estate 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 $326 million of the Company’s net income in the third quarter and $984 million in the first nine months of 2012, or increases of $22 million (7.2 percent) and $203 million (26.0 percent), respectively, compared with the same periods of 2011. The increase for the third quarter of 2012 over the third quarter of 2011 was primarily driven by lower provision for credit losses and lower noninterest expense, partially offset by lower total net revenue. The increase for the first nine months of 2012 over the same period of 2011 was primarily driven by lower provision for credit losses, partially offset by lower total net revenue and higher noninterest expense.

Total net revenue decreased $39 million (4.5 percent) in the third quarter and $19 million (.8 percent) in the first nine months of 2012, compared with the same periods of 2011. Net interest income, on a taxable-equivalent basis, decreased $18 million (3.3 percent) in the third quarter and $6 million (.4 percent) in the first nine months of 2012, compared with the same periods of 2011. The decreases reflected the net impact of lower rates on loans and the impact of lower rates on the margin benefit from deposits, partially offset by higher average loan and deposit balances. Noninterest income decreased $21 million (6.6 percent) in the third quarter of 2012, compared with the same period of 2011, primarily due to lower commercial products revenue, principally lower syndication and other loan fees, commercial leasing revenue and standby letters of credit fees, partially offset by an increase in high-grade bond underwriting fees. In addition, equity investment revenue was lower in the third quarter of 2012, compared with the third quarter of 2011. Noninterest income decreased $13 million (1.4 percent) in the first nine months of 2012, compared with the same period of 2011, primarily due to lower commercial products revenue, partially offset by higher equity investment revenue.

Noninterest expense decreased $7 million (2.2 percent) in the third quarter of 2012, compared with the third quarter of 2011, primarily due to lower

costs related to other real estate owned. Noninterest expense increased $6 million (.6 percent) in the first nine months of 2012, compared with the same period of 2011, largely due to higher compensation and employee benefits expense, partially offset by lower costs related to other real estate owned. The provision for credit losses decreased $65 million in the third quarter and $353 million (99.2 percent) in the first nine months of 2012, compared with the same periods of 2011, due to lower net charge-offs and reductions in the reserve allocation. Nonperforming assets were $600 million at September 30, 2012, $728 million at June 30, 2012, and $1.2 billion at September 30, 2011. Nonperforming assets as a percentage of period-end loans were .90 percent at September 30, 2012, 1.10 percent at June 30, 2012, and 2.01 percent at September 30, 2011. Refer to the “Corporate Risk Profile” section for further information on factors impacting the credit quality of the loan portfolios.

Consumer and Small Business Banking 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 $326 million of the Company’s net income in the third quarter and $1.1 billion in the first nine months of 2012, or increases of $105 million (47.5 percent) and $537 million, respectively, compared with the same periods of 2011. The increase in the third quarter of 2012 over the third quarter of 2011 was due to higher total net revenue, partially offset by increases in the provision for credit losses and noninterest expense. The increase in the first nine months of 2012 over the first nine months of 2011 was due to higher total net revenue and lower provision for credit losses, partially offset by an increase in noninterest expense.

Within Consumer and Small Business Banking, the retail banking division contributed $81 million of the total net income in the third quarter and $385 million in the first nine months of 2012, or a decrease of $39 million (32.5 percent) and an increase of $182 million (89.7 percent), respectively, from the same periods of 2011. Mortgage banking contributed $245 million and $675 million of Consumer and Small Business Banking’s net income in the third quarter and first nine months of 2012, respectively, or increases of $144 million and $355 million, respectively, from the same periods of 2011.

U. S. Bancorp 29

Table 10 Line of Business Financial Performance

	Wholesale Banking and Commercial Real Estate								Consumer and Small Business Banking
Three Months Ended September 30 (Dollars in Millions)	2012		2011			Percent Change			2012		2011			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	526	$	544			(3.3	)%	$	1,191	$	1,153			3.3	%
Noninterest income		296		317			(6.6	)		931		707			31.7
Securities gains (losses), net		–		–			–			–		–			–
Total net revenue		822		861			(4.5	)		2,122		1,860			14.1
Noninterest expense		306		313			(2.2	)		1,251		1,164			7.5
Other intangibles		4		4			–			13		19			(31.6	)
Total noninterest expense		310		317			(2.2	)		1,264		1,183			6.8
Income before provision and income taxes		512		544			(5.9	)		858		677			26.7
Provision for credit losses		–		65			*			346		330			4.8
Income before income taxes		512		479			6.9			512		347			47.6
Income taxes and taxable-equivalent adjustment		186		174			6.9			186		126			47.6
Net income		326		305			6.9			326		221			47.5
Net (income) loss attributable to noncontrolling interests		–		(1	)		*			–		–			–
Net income attributable to U.S. Bancorp	$	326	$	304			7.2		$	326	$	221			47.5
Average Balance Sheet
Commercial	$	46,210	$	38,020			21.5	%	$	8,398	$	7,332			14.5	%
Commercial real estate		19,681		19,224			2.4			16,208		15,656			3.5
Residential mortgages		54		65			(16.9	)		40,526		33,561			20.8
Credit card		–		–			–			–		–			–
Other retail		7		4			75.0			45,656		46,000			(.7	)
Total loans, excluding covered loans		65,952		57,313			15.1			110,788		102,549			8.0
Covered loans		806		1,320			(38.9	)		7,396		8,266			(10.5	)
Total loans		66,758		58,633			13.9			118,184		110,815			6.6
Goodwill		1,604		1,604			–			3,515		3,515			–
Other intangible assets		34		50			(32.0	)		1,764		1,946			(9.4	)
Assets		72,668		64,594			12.5			135,828		123,960			9.6
Noninterest-bearing deposits		31,025		27,848			11.4			21,127		17,852			18.3
Interest checking		7,890		10,974			(28.1	)		30,051		27,048			11.1
Savings products		10,320		9,351			10.4			43,723		40,762			7.3
Time deposits		21,202		14,732			43.9			23,673		24,500			(3.4	)
Total deposits		70,437		62,905			12.0			118,574		110,162			7.6
Total U.S. Bancorp shareholders’ equity		6,383		5,604			13.9			11,562		9,327			24.0
	Wholesale Banking and Commercial Real Estate								Consumer and Small Business Banking
Nine Months Ended September 30 (Dollars in Millions)	2012		2011			Percent Change			2012		2011			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,580	$	1,586			(.4	)%	$	3,551	$	3,412			4.1	%
Noninterest income		923		936			(1.4	)		2,701		1,995			35.4
Securities gains (losses), net		–		–			–			–		–			–
Total net revenue		2,503		2,522			(.8	)		6,252		5,407			15.6
Noninterest expense		941		935			.6			3,673		3,430			7.1
Other intangibles		12		12			–			39		57			(31.6	)
Total noninterest expense		953		947			.6			3,712		3,487			6.5
Income before provision and income taxes		1,550		1,575			(1.6	)		2,540		1,920			32.3
Provision for credit losses		3		356			(99.2	)		875		1,097			(20.2	)
Income before income taxes		1,547		1,219			26.9			1,665		823			*
Income taxes and taxable-equivalent adjustment		563		443			27.1			605		299			*
Net income		984		776			26.8			1,060		524			*
Net (income) loss attributable to noncontrolling interests		–		5			*			–		(1	)		*
Net income attributable to U.S. Bancorp	$	984	$	781			26.0		$	1,060	$	523			*
Average Balance Sheet
Commercial	$	44,376	$	36,406			21.9	%	$	8,127	$	7,243			12.2	%
Commercial real estate		19,614		19,271			1.8			16,070		15,462			3.9
Residential mortgages		60		68			(11.8	)		38,883		32,391			20.0
Credit card		–		–			–			–		–			–
Other retail		5		6			(16.7	)		45,604		45,691			(.2	)
Total loans, excluding covered loans		64,055		55,751			14.9			108,684		100,787			7.8
Covered loans		1,003		1,589			(36.9	)		7,642		8,520			(10.3	)
Total loans		65,058		57,340			13.5			116,326		109,307			6.4
Goodwill		1,604		1,604			–			3,515		3,521			(.2	)
Other intangible assets		38		55			(30.9	)		1,784		2,138			(16.6	)
Assets		70,895		63,218			12.1			133,108		122,942			8.3
Noninterest-bearing deposits		30,630		23,749			29.0			19,774		17,649			12.0
Interest checking		10,608		13,024			(18.6	)		29,660		26,228			13.1
Savings products		8,918		9,555			(6.7	)		43,106		40,290			7.0
Time deposits		17,210		14,845			15.9			24,097		24,478			(1.6	)
Total deposits		67,366		61,173			10.1			116,637		108,645			7.4
Total U.S. Bancorp shareholders’ equity		6,327		5,533			14.4			11,147		9,277			20.2

* Not meaningful.

30 U. S. Bancorp

Wealth Management and Securities Services							Payment Services									Treasury and Corporate Support									Consolidated Company
2012		2011		Percent Change			2012			2011			Percent Change			2012			2011			Percent Change			2012			2011			Percent Change
$	86	$	89		(3.4	)%	$	382		$	335			14.0	%	$	598		$	503			18.9	%	$	2,783		$	2,624			6.1	%
	283		254		11.4			851			854			(.4	)		34			48			(29.2	)		2,395			2,180			9.9
	–		–		–			–			–			–			1			(9	)		*			1			(9	)		*
	369		343		7.6			1,233			1,189			3.7			633			542			16.8			5,179			4,795			8.0
	289		267		8.2			451			449			.4			245			208			17.8			2,542			2,401			5.9
	10		9		11.1			40			43			(7.0	)		–			–			–			67			75			(10.7	)
	299		276		8.3			491			492			(.2	)		245			208			17.8			2,609			2,476			5.4
	70		67		4.5			742			697			6.5			388			334			16.2			2,570			2,319			10.8
	4		2		*			135			125			8.0			3			(3	)		*			488			519			(6.0	)
	66		65		1.5			607			572			6.1			385			337			14.2			2,082			1,800			15.7
	24		24		–			221			208			6.3			33			16			*			650			548			18.6
	42		41		2.4			386			364			6.0			352			321			9.7			1,432			1,252			14.4
	–		–		–			(10	)		(10	)		–			52			32			62.5			42			21			*
$	42	$	41		2.4		$	376		$	354			6.2		$	404		$	353			14.4		$	1,474		$	1,273			15.8
$	1,398	$	1,069		30.8	%	$	6,062		$	5,828			4.0	%	$	124		$	95			30.5	%	$	62,192		$	52,344			18.8	%
	599		567		5.6			–			–			–			142			122			16.4			36,630			35,569			3.0
	384		392		(2.0	)		–			–			–			5			8			(37.5	)		40,969			34,026			20.4
	–		–		–			16,551			16,057			3.1			–			–			–			16,551			16,057			3.1
	1,526		1,490		2.4			802			885			(9.4	)		–			1			*			47,991			48,380			(.8	)
	3,907		3,518		11.1			23,415			22,770			2.8			271			226			19.9			204,333			186,376			9.6
	11		12		(8.3	)		5			5			–			4,377			6,190			(29.3	)		12,595			15,793			(20.2	)
	3,918		3,530		11.0			23,420			22,775			2.8			4,648			6,416			(27.6	)		216,928			202,169			7.3
	1,469		1,463		.4			2,346			2,367			(.9	)		–			–			–			8,934			8,949			(.2	)
	165		179		(7.8	)		646			775			(16.6	)		4			5			(20.0	)		2,613			2,955			(11.6	)
	6,698		5,976		12.1			29,522			28,235			4.6			100,937			98,816			2.1			345,653			321,581			7.5
	14,856		11,801		25.9			623			653			(4.6	)		496			452			9.7			68,127			58,606			16.2
	3,919		2,835		38.2			1,346			184			*			1			1			–			43,207			41,042			5.3
	23,051		21,314		8.1			40			31			29.0			139			207			(32.9	)		77,273			71,665			7.8
	5,459		4,787		14.0			–			–			–			340			37			*			50,674			44,056			15.0
	47,285		40,737		16.1			2,009			868			*			976			697			40.0			239,281			215,369			11.1
	2,241		2,075		8.0			5,654			5,276			7.2			12,779			10,805			18.3			38,619			33,087			16.7
Wealth Management and Securities Services							Payment Services									Treasury and Corporate Support									Consolidated Company
2012		2011		Percent Change			2012			2011			Percent Change			2012			2011			Percent Change			2012			2011			Percent Change
$	263	$	259		1.5	%	$	1,154		$	995			16.0	%	$	1,638		$	1,423			15.1	%	$	8,186		$	7,675			6.7	%
	828		793		4.4			2,399			2,443			(1.8	)		157			184			(14.7	)		7,008			6,351			10.3
	–		–		–			–			–			–			(18	)		(22	)		18.2			(18	)		(22	)		18.2
	1,091		1,052		3.7			3,553			3,438			3.3			1,777			1,585			12.1			15,176			14,004			8.4
	856		802		6.7			1,344			1,306			2.9			748			517			44.7			7,562			6,990			8.2
	30		27		11.1			127			129			(1.6	)		–			–			–			208			225			(7.6	)
	886		829		6.9			1,471			1,435			2.5			748			517			44.7			7,770			7,215			7.7
	205		223		(8.1	)		2,082			2,003			3.9			1,029			1,068			(3.7	)		7,406			6,789			9.1
	6		3		*			548			377			45.4			7			13			(46.2	)		1,439			1,846			(22.0	)
	199		220		(9.5	)		1,534			1,626			(5.7	)		1,022			1,055			(3.1	)		5,967			4,943			20.7
	72		81		(11.1	)		558			591			(5.6	)		54			69			(21.7	)		1,852			1,483			24.9
	127		139		(8.6	)		976			1,035			(5.7	)		968			986			(1.8	)		4,115			3,460			18.9
	–		–		–			(30	)		(29	)		(3.4	)		142			87			63.2			112			62			80.6
$	127	$	139		(8.6	)	$	946		$	1,006			(6.0	)	$	1,110		$	1,073			3.4		$	4,227		$	3,522			20.0
$	1,267	$	1,069		18.5	%	$	5,904		$	5,561			6.2	%	$	116		$	104			11.5	%	$	59,790		$	50,383			18.7	%
	582		575		1.2			–			–			–			123			109			12.8			36,389			35,417			2.7
	379		385		(1.6	)		–			–			–			6			10			(40.0	)		39,328			32,854			19.7
	–		–		–			16,675			16,022			4.1			–			–			–			16,675			16,022			4.1
	1,513		1,547		(2.2	)		817			909			(10.1	)		1			1			–			47,940			48,154			(.4	)
	3,741		3,576		4.6			23,396			22,492			4.0			246			224			9.8			200,122			182,830			9.5
	12		12		–			5			4			25.0			4,947			6,578			(24.8	)		13,609			16,703			(18.5	)
	3,753		3,588		4.6			23,401			22,496			4.0			5,193			6,802			(23.7	)		213,731			199,533			7.1
	1,468		1,463		.3			2,349			2,365			(.7	)		–			–			–			8,936			8,953			(.2	)
	172		188		(8.5	)		717			806			(11.0	)		4			5			(20.0	)		2,715			3,192			(14.9	)
	6,454		6,018		7.2			29,685			27,679			7.2			100,665			94,222			6.8			340,807			314,079			8.5
	13,899		8,176		70.2			638			684			(6.7	)		482			300			60.7			65,423			50,558			29.4
	3,924		2,908		34.9			1,329			174			*			1			1			–			45,522			42,335			7.5
	23,163		21,329		8.6			37			29			27.6			136			192			(29.2	)		75,360			71,395			5.6
	4,888		5,919		(17.4	)		–			–			–			478			205			*			46,673			45,447			2.7
	45,874		38,332		19.7			2,004			887			*			1,097			698			57.2			232,978			209,735			11.1
	2,223		2,078		7.0			5,681			5,272			7.8			11,727			9,539			22.9			37,105			31,699			17.1

U. S. Bancorp 31

Total net revenue increased $262 million (14.1 percent) in the third quarter and $845 million (15.6 percent) in the first nine months of 2012, compared with the same periods of 2011. Net interest income, on a taxable-equivalent basis, increased $38 million (3.3 percent) in the third quarter and $139 million (4.1 percent) in the first nine months of 2012, compared with the same periods of 2011. The year-over-year increases in net interest income were due to higher average loan and deposit balances, partially offset by lower loan rates and the impact of lower rates on the margin benefit from deposits. Noninterest income increased $224 million (31.7 percent) in the third quarter and $706 million (35.4 percent) in the first nine months of 2012, compared with the same periods of 2011, primarily the result of strong mortgage origination and sales revenue. These increases were partially offset by decreases in ATM processing services revenue as a result of the change in presentation of the surcharge revenue passed through to others.

Noninterest expense increased $81 million (6.8 percent) in the third quarter and $225 million (6.5 percent) in the first nine months of 2012, compared with the same periods of 2011. The increases reflected higher compensation and employee benefits expense, higher mortgage servicing review-related costs and higher net shared services costs, partially offset by lower net occupancy and equipment expense due to the presentation change to ATM surcharge revenue passed through to others, and lower other intangibles expense.

The provision for credit losses increased $16 million (4.8 percent) in the third quarter and decreased $222 million (20.2 percent) in the first nine months of 2012, compared with the same periods of 2011, reflecting incremental bankruptcy-related charge-offs in the third quarter of 2012, changes in the reserve allocation and lower other net charge-offs. As a percentage of average loans outstanding on an annualized basis, net charge-offs decreased to .99 percent in the third quarter of 2012, compared with 1.16 percent in the third quarter of 2011. Nonperforming assets were $1.4 billion at September 30, 2012, $1.3 billion at June 30, 2012, and $1.6 billion at September 30, 2011. Nonperforming assets as a percentage of period-end loans were 1.17 percent at September 30, 2012, 1.12 percent at June 30, 2012, and 1.41 percent at September 30, 2011. Refer to the “Corporate Risk Profile” section for further information on factors impacting the credit quality of the loan portfolios.

Wealth Management and Securities Services 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 $42 million of the Company’s net income in the third quarter and $127 million in the first nine months of 2012, or an increase of $1 million (2.4 percent) and a decrease of $12 million (8.6 percent), respectively, compared with the same periods of 2011. The changes from the prior year were primarily due to higher noninterest income, offset by higher noninterest expense.

Total net revenue increased $26 million (7.6 percent) in the third quarter and $39 million (3.7 percent) in the first nine months of 2012, compared with the same periods of 2011. Net interest income, on a taxable-equivalent basis, was relatively flat for both the third quarter and first nine months of 2012, compared with the same periods of 2011. Noninterest income increased $29 million (11.4 percent) in the third quarter and $35 million (4.4 percent) in the first nine months of 2012, compared with the same periods of 2011, primarily due to the impact of improved market conditions, business expansion and an increase in investment products fees and commissions. Noninterest expense increased $23 million (8.3 percent) in the third quarter and $57 million (6.9 percent) in the first nine months of 2012, compared with the same periods of 2011. The increases in noninterest expense were primarily due to higher compensation and employee benefits expense, partially offset by reductions in acquisition integration costs.

Payment Services 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 $376 million and $946 million of the Company’s net income in the third quarter and first nine months of 2012, respectively, or an increase of $22 million (6.2 percent) and a decrease of $60 million (6.0 percent), respectively, compared with the same periods of 2011. The changes from the prior year were primarily due to higher total net revenue, offset by increases in the provision for credit losses.

Total net revenue increased $44 million (3.7 percent) in the third quarter and $115 million (3.3 percent) in the first nine months of 2012, compared with the same periods of 2011. Net interest income, on a taxable-equivalent basis, increased $47 million

32 U. S. Bancorp

(14.0 percent) in the third quarter and $159 million (16.0 percent) in the first nine months of 2012, compared with the same periods of 2011, primarily due to higher average loan balances and loan yields, including the credit card balance transfer fees presentation change. Noninterest income decreased $3 million (.4 percent) in the third quarter and $44 million (1.8 percent) in the first nine months of 2012, compared with the same periods of 2011. 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 the inclusion of credit card balance transfer fees in interest income beginning in the first quarter or 2012. These negative variances were partially offset by higher transaction volumes. The decreases in credit and debit card revenue were partially offset by higher merchant processing services revenue, primarily due to increased transaction volumes, and higher other revenue due to the impact of the gain on the credit card portfolio sale in the third quarter of 2012.

Noninterest expense was essentially flat in the third quarter and increased $36 million (2.5 percent) in the first nine months of 2012, compared with the same periods of 2011. The increase for in the first nine months of 2012, compared with the same period of the prior year, was primarily due to higher compensation, employee benefits and net shared services expense. The provision for credit losses increased $10 million (8.0 percent) in the third quarter and $171 million (45.4 percent) in the first nine months of 2012, compared with the same periods of 2011, due to a change in the reserve allocation, partially offset by lower net charge-offs. In addition, the provision for credit losses for the first nine months of 2012 reflected lower reserve releases compared with the same period of the prior year. As a percentage of average loans outstanding, net charge-offs were 3.43 percent in the third quarter of 2012, compared with 3.78 percent in the third quarter of 2011.

Treasury and Corporate Support 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 $404 million in the third quarter and $1.1 billion in the first nine months of 2012, compared with $353 million and $1.1 billion in the same periods of 2011, respectively.

Total net revenue increased $91 million (16.8 percent) in the third quarter and $192 million (12.1 percent) in the first nine months of 2012, compared with the same periods of 2011. Net interest income, on a taxable-equivalent basis, increased $95 million (18.9 percent) in the third quarter and $215 million (15.1 percent) in the first nine months of 2012, compared with the same periods of 2011, reflecting lower long-term funding rates, as well as the impact of wholesale funding decisions, growth in the investment securities portfolio and the Company’s asset/liability position. Noninterest income decreased $4 million (10.3 percent) in the third quarter of 2012, compared with the third quarter of 2011, principally due to the equity-method investment charge recorded in the third quarter of 2012, partially offset by higher commercial products revenue and a favorable change in net securities gains (losses). Noninterest income decreased $23 million (14.2 percent) in the first nine months of 2012, compared with the first nine months of 2011, principally due to the first quarter of 2011 gains related to the acquisition of FCB and the Company’s investment in Visa Inc. and the third quarter of 2012 equity-method investment charge, partially offset by higher commercial products revenue.

Noninterest expense increased $37 million (17.8 percent) in the third quarter and $231 million (44.7 percent) in the first nine months of 2012, compared with the same periods of 2011, principally due to litigation and insurance-related matters, and increased compensation and employee benefits expense, partially offset by lower net shared services expense. In addition, noninterest expense for the first nine months of 2012 increased over the same period of the prior year due to the second quarter Visa accrual.

Income taxes are assessed to each line of business at a managerial tax rate of 36.4 percent with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in Treasury and Corporate Support.

U. S. Bancorp 33

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 principles (“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 report in their entirety, and not to rely on any single financial measure.

The following table shows the Company’s calculation of these Non-GAAP financial measures:

(Dollars in Millions)	September 30, 2012			December 31, 2011
Total equity	$	39,825		$	34,971
Preferred stock		(4,769	)		(2,606	)
Noncontrolling interests		(1,164	)		(993	)
Goodwill (net of deferred tax liability)		(8,194	)		(8,239	)
Intangible assets, other than mortgage servicing rights		(980	)		(1,217	)
Tangible common equity (a)		24,718			21,916
Tier 1 capital, determined in accordance with prescribed regulatory requirements using Basel I definition		30,766			29,173
Trust preferred securities		–			(2,675	)
Preferred stock		(4,769	)		(2,606	)
Noncontrolling interests, less preferred stock not eligible for Tier 1 capital		(685	)		(687	)
Tier 1 common equity using Basel I definition (b)		25,312			23,205
Tangible common equity (as calculated above)					21,916
Adjustments (1)					450
Tier 1 common equity using Basel III proposals published prior to June 2012 (c)					22,366
Tangible common equity (as calculated above)		24,718
Adjustments (2)		157
Tier 1 common equity approximated using proposed rules for the Basel III standardized approach released June 2012 (d)		24,875
Total assets		352,253			340,122
Goodwill (net of deferred tax liability)		(8,194	)		(8,239	)
Intangible assets, other than mortgage servicing rights		(980	)		(1,217	)
Tangible assets (e)		343,079			330,666
Risk-weighted assets, determined in accordance with prescribed regulatory requirements using Basel I definition (f)		282,033			271,333
Risk-weighted assets using Basel III proposals published prior to June 2012 (g)		–			274,351
Risk-weighted assets, determined in accordance with prescribed regulatory requirements using Basel I definition		282,033
Adjustments (3)		22,167
Risk-weighted assets approximated using proposed rules for the Basel III standardized approach released June 2012 (h)		304,200			–
Ratios
Tangible common equity to tangible assets (a)/(e)		7.2	%		6.6	%
Tangible common equity to risk-weighted assets using Basel I definition (a)/(f)		8.8			8.1
Tier 1 common equity to risk-weighted assets using Basel I definition (b)/(f)		9.0			8.6
Tier 1 common equity to risk-weighted assets using Basel III proposals published prior to June 2012 (c)/(g)		–			8.2
Tier 1 common equity to risk-weighted assets approximated using proposed rules for the Basel III standardized approach released June 2012 (d)/(h)		8.2			–

(1) Principally net losses on cash flow hedges included in accumulated other comprehensive income.

(2) Includes net losses on cash flow hedges included in accumulated other comprehensive income, unrealized losses on securities transferred from available-for-sale to held-to-maturity included in accumulated other comprehensive income and disallowed mortgage servicing rights.

(3) Includes higher risk-weighting for residential mortgages, unfunded loan commitments, investment securities and purchased mortgage servicing rights, and other adjustments.

34 U. S. Bancorp

CRITICAL ACCOUNTING POLICIES

The accounting and reporting policies of the Company comply with accounting principles generally accepted in the United States and conform to general practices within the banking industry. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. The Company’s financial position and results of operations can be affected by these estimates and assumptions, which are integral to understanding the Company’s financial statements. Critical accounting policies are those policies management believes are the most important to the portrayal of the Company’s financial condition and results, and require management to make estimates that are difficult, subjective or complex. Most accounting policies are not considered by management to be critical accounting policies. Those policies considered to be critical accounting policies relate to the allowance for credit losses, fair value estimates, purchased loans and related indemnification assets, MSRs, goodwill and other intangibles and income taxes. Management has discussed the development and the selection of critical accounting policies with the Company’s Audit Committee. These accounting policies are discussed in detail in “Management’s Discussion and Analysis — Critical Accounting Policies” and the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

CONTROLS AND PROCEDURES

Under the supervision and with the participation of the Company’s management, including its principal executive officer and principal financial officer, the Company has evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)). Based upon this evaluation, the principal executive officer and principal financial officer have concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective.

During the most recently completed fiscal quarter, there was no change made in the Company’s internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

U. S. Bancorp 35

U.S. Bancorp

Consolidated Balance Sheet

(Dollars in Millions)	September 30, 2012			December 31, 2011
	(Unaudited)
Assets
Cash and due from banks	$	9,382		$	13,962
Investment securities
Held-to-maturity (fair value $35,226 and $19,216, respectively; including $1,146 and $155 pledged as collateral, respectively) (a)		34,509			18,877
Available-for-sale ($2,217 and $6,831 pledged as collateral, respectively) (a)		39,636			51,937
Loans held for sale (included $9,815 and $6,925 of mortgage loans carried at fair value, respectively)		9,879			7,156
Loans
Commercial		62,910			56,648
Commercial real estate		36,813			35,851
Residential mortgages		41,902			37,082
Credit card		16,402			17,360
Other retail		47,965			48,107
Total loans, excluding covered loans		205,992			195,048
Covered loans		12,158			14,787
Total loans		218,150			209,835
Less allowance for loan losses		(4,481	)		(4,753	)
Net loans		213,669			205,082
Premises and equipment		2,650			2,657
Goodwill		8,943			8,927
Other intangible assets		2,533			2,736
Other assets		31,052			28,788
Total assets	$	352,253		$	340,122
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing	$	72,982		$	68,579
Interest-bearing		136,583			134,757
Time deposits greater than $100,000		34,667			27,549
Total deposits		244,232			230,885
Short-term borrowings		27,853			30,468
Long-term debt		26,264			31,953
Other liabilities		14,079			11,845
Total liabilities		312,428			305,151
Shareholders’ equity
Preferred stock		4,769			2,606
Common stock, par value $0.01 a share—authorized: 4,000,000,000 shares; issued: 9/30/12 and 12/31/11—2,125,725,742 shares		21			21
Capital surplus		8,186			8,238
Retained earnings		33,730			30,785
Less cost of common stock in treasury: 9/30/12—245,650,205 shares; 12/31/11—215,904,019 shares		(7,442	)		(6,472	)
Accumulated other comprehensive income (loss)		(603	)		(1,200	)
Total U.S. Bancorp shareholders’ equity		38,661			33,978
Noncontrolling interests		1,164			993
Total equity		39,825			34,971
Total liabilities and equity	$	352,253		$	340,122

(a) Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.

See Notes to Consolidated Financial Statements.

36 U. S. Bancorp

U.S. Bancorp

Consolidated Statement of Income

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars and Shares in Millions, Except Per Share Data) (Unaudited)	2012			2011			2012			2011
Interest Income
Loans	$	2,650		$	2,621		$	7,919		$	7,736
Loans held for sale		76			42			208			139
Investment securities		438			470			1,376			1,357
Other interest income		63			67			184			187
Total interest income		3,227			3,200			9,687			9,419
Interest Expense
Deposits		172			202			530			646
Short-term borrowings		103			143			353			407
Long-term debt		226			289			786			860
Total interest expense		501			634			1,669			1,913
Net interest income		2,726			2,566			8,018			7,506
Provision for credit losses		488			519			1,439			1,846
Net interest income after provision for credit losses		2,238			2,047			6,579			5,660
Noninterest Income
Credit and debit card revenue		213			289			650			842
Corporate payment products revenue		201			203			566			563
Merchant processing services		345			338			1,041			977
ATM processing services		87			115			263			341
Trust and investment management fees		265			241			779			755
Deposit service charges		174			183			483			488
Treasury management fees		135			137			411			418
Commercial products revenue		225			212			652			621
Mortgage banking revenue		519			245			1,461			683
Investment products fees and commissions		38			31			111			98
Securities gains (losses), net
Realized gains (losses), net		16			–			46			2
Total other-than-temporary impairment		(13	)		(11	)		(61	)		(41	)
Portion of other-than-temporary impairment recognized in other comprehensive income		(2	)		2			(3	)		17
Total securities gains (losses), net		1			(9	)		(18	)		(22	)
Other		193			186			591			565
Total noninterest income		2,396			2,171			6,990			6,329
Noninterest Expense
Compensation		1,109			1,021			3,237			2,984
Employee benefits		225			203			714			643
Net occupancy and equipment		233			252			683			750
Professional services		144			100			364			252
Marketing and business development		96			102			285			257
Technology and communications		205			189			607			563
Postage, printing and supplies		75			76			226			226
Other intangibles		67			75			208			225
Other		455			458			1,446			1,315
Total noninterest expense		2,609			2,476			7,770			7,215
Income before income taxes		2,025			1,742			5,799			4,774
Applicable income taxes		593			490			1,684			1,314
Net income		1,432			1,252			4,115			3,460
Net (income) loss attributable to noncontrolling interests		42			21			112			62
Net income attributable to U.S. Bancorp	$	1,474		$	1,273		$	4,227		$	3,522
Net income applicable to U.S. Bancorp common shareholders	$	1,404		$	1,237		$	4,034		$	3,407
Earnings per common share	$	.74		$	.65		$	2.13		$	1.78
Diluted earnings per common share	$	.74		$	.64		$	2.12		$	1.77
Dividends declared per common share	$	.195		$	.125		$	.585		$	.375
Average common shares outstanding		1,886			1,915			1,892			1,918
Average diluted common shares outstanding		1,897			1,922			1,901			1,926

See Notes to Consolidated Financial Statements.

U. S. Bancorp 37

U.S. Bancorp

Consolidated Statement of Comprehensive Income

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions) (Unaudited)	2012			2011			2012			2011
Net income	$	1,432		$	1,252		$	4,115		$	3,460
Other comprehensive income (loss)
Changes in unrealized gains and losses on securities available-for-sale		300			181			738			958
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		2			(2	)		3			(17	)
Amortization of unrealized gains on securities transferred from available-for-sale to held-to-maturity		(21	)		–			(28	)		–
Changes in unrealized gains (losses) on derivative hedges		(30	)		(196	)		(68	)		(323	)
Foreign currency translation		26			1			34			(16	)
Reclassification to earnings of realized gains and losses		90			92			288			270
Income taxes related to other comprehensive income		(140	)		(29	)		(370	)		(333	)
Total other comprehensive income (loss)		227			47			597			539
Comprehensive income		1,659			1,299			4,712			3,999
Comprehensive (income) loss attributable to noncontrolling interests		42			21			112			62
Comprehensive income attributable to U.S. Bancorp	$	1,701		$	1,320		$	4,824		$	4,061

See Notes to Consolidated Financial Statements.

38 U. S. Bancorp

U.S. Bancorp

Consolidated Statement of Shareholders’ Equity

	U.S. Bancorp Shareholders
(Dollars and Shares in Millions) (Unaudited)	Common Shares Outstanding			Preferred Stock		Common Stock		Capital Surplus			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Total U.S. Bancorp Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance December 31, 2010		1,921		$	1,930	$	21	$	8,294		$	27,005		$	(6,262	)	$	(1,469	)	$	29,519		$	803		$	30,322
Change in accounting principle												(2	)								(2	)					(2	)
Net income (loss)												3,522									3,522			(62	)		3,460
Other comprehensive income (loss)																		539			539						539
Preferred stock dividends												(99	)								(99	)					(99	)
Common stock dividends												(722	)								(722	)					(722	)
Issuance of preferred stock					676																676						676
Issuance of common and treasury stock		8							(121	)					252						131						131
Purchase of treasury stock		(16	)												(409	)					(409	)					(409	)
Distributions to noncontrolling interests																					–			(57	)		(57	)
Net other changes in noncontrolling interests																					–			296			296
Stock option and restricted stock grants									75												75						75
Balance September 30, 2011		1,913		$	2,606	$	21	$	8,248		$	29,704		$	(6,419	)	$	(930	)	$	33,230		$	980		$	34,210
Balance December 31, 2011		1,910		$	2,606	$	21	$	8,238		$	30,785		$	(6,472	)	$	(1,200	)	$	33,978		$	993		$	34,971
Net income (loss)												4,227									4,227			(112	)		4,115
Other comprehensive income (loss)																		597			597						597
Preferred stock dividends												(174	)								(174	)					(174	)
Common stock dividends												(1,108	)								(1,108	)					(1,108	)
Issuance of preferred stock					2,163																2,163						2,163
Issuance of common and treasury stock		16							(111	)					495						384						384
Purchase of treasury stock		(46	)												(1,465	)					(1,465	)					(1,465	)
Distributions to noncontrolling interests																					–			(60	)		(60	)
Net other changes in noncontrolling interests																					–			343			343
Stock option and restricted stock grants									59												59						59
Balance September 30, 2012		1,880		$	4,769	$	21	$	8,186		$	33,730		$	(7,442	)	$	(603	)	$	38,661		$	1,164		$	39,825

See Notes to Consolidated Financial Statements.

U. S. Bancorp 39

U.S. Bancorp

Consolidated Statement of Cash Flows

(Dollars in Millions) (Unaudited)	Nine Months Ended September 30,
	2012			2011
Operating Activities
Net income attributable to U.S. Bancorp	$	4,227		$	3,522
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses		1,439			1,846
Depreciation and amortization of premises and equipment		212			196
Amortization of intangibles		208			225
Provision for deferred income taxes		29			250
(Gain) loss on sale of loans held for sale		(1,982	)		(469	)
(Gain) loss on sale of securities and other assets		(198	)		(13	)
Loans originated for sale in the secondary market, net of repayments		(60,331	)		(29,840	)
Proceeds from sales of loans held for sale		59,052			33,091
Other, net		1,219			(53	)
Net cash provided by operating activities		3,875			8,755
Investing Activities
Proceeds from sales of available-for-sale investment securities		1,753			926
Proceeds from maturities of held-to-maturity investment securities		4,005			714
Proceeds from maturities of available-for-sale investment securities		11,664			7,872
Purchases of held-to-maturity investment securities		(8,003	)		(15,192	)
Purchases of available-for-sale investment securities		(12,065	)		(8,399	)
Net increase in loans outstanding		(9,518	)		(8,458	)
Proceeds from sales of loans		1,614			454
Purchases of loans		(2,139	)		(1,750	)
Acquisitions, net of cash acquired		94			650
Other, net		(668	)		(1,006	)
Net cash used in investing activities		(13,263	)		(24,189	)
Financing Activities
Net increase in deposits		13,099			16,593
Net decrease in short-term borrowings		(2,616	)		(644	)
Proceeds from issuance of long-term debt		4,553			2,002
Principal payments or redemption of long-term debt		(10,271	)		(3,048	)
Proceeds from issuance of preferred stock		2,163			676
Proceeds from issuance of common stock		342			125
Repurchase of common stock		(1,343	)		(383	)
Cash dividends paid on preferred stock		(139	)		(88	)
Cash dividends paid on common stock		(980	)		(578	)
Net cash provided by financing activities		4,808			14,655
Change in cash and due from banks		(4,580	)		(779	)
Cash and due from banks at beginning of period		13,962			14,487
Cash and due from banks at end of period	$	9,382		$	13,708

See Notes to Consolidated Financial Statements.

40 U. S. Bancorp

Notes to Consolidated Financial Statements

(Unaudited)

Note 1 Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with accounting principles generally accepted in the United States. In the opinion of management of U.S. Bancorp (the “Company”), all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. Certain amounts in prior periods have been reclassified to conform to the current presentation.

Accounting policies for the lines of business are generally the same as those used in preparation of the consolidated financial statements with respect to activities specifically attributable to each business line. However, the preparation of business line results requires management to establish methodologies to allocate funding costs, expenses and other financial elements to each line of business. Table 10 “Line of Business Financial Performance” included in Management’s Discussion and Analysis provides details of segment results. This information is incorporated by reference into these Notes to Consolidated Financial Statements.

U. S. Bancorp 41

Note 2 Investment Securities

The amortized cost, other-than-temporary impairment recorded in other comprehensive income (loss), gross unrealized holding gains and losses, and fair value of held-to-maturity and available-for-sale investment securities were as follows:

	September 30, 2012												December 31, 2011
					Unrealized Losses												Unrealized Losses
(Dollars in Millions)	Amortized Cost		Unrealized Gains		Other-than- Temporary (e)			Other (f)			Fair Value		Amortized Cost		Unrealized Gains		Other-than- Temporary (e)			Other (f)			Fair Value
Held-to-maturity (a)
U.S. Treasury and agencies	$	2,557	$	26	$	–		$	–		$	2,583	$	2,560	$	35	$	–		$	–		$	2,595
Mortgage-backed securities
Residential
Agency		31,773		700		–			(3	)		32,470		16,085		333		–			(3	)		16,415
Non-agency non-prime (d)		1		–		–			–			1		2		–		–			–			2
Commercial non-agency		3		–		–			–			3		4		–		–			(2	)		2
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		9		16		–			–			25		52		13		–			(2	)		63
Other		19		2		(4	)		(2	)		15		23		1		(6	)		(1	)		17
Obligations of state and political subdivisions		21		1		–			–			22		23		1		–			(1	)		23
Obligations of foreign governments		7		–		–			–			7		7		–		–			–			7
Other debt securities		119		–		–			(19	)		100		121		–		–			(29	)		92
Total held-to-maturity	$	34,509	$	745	$	(4	)	$	(24	)	$	35,226	$	18,877	$	383	$	(6	)	$	(38	)	$	19,216
Available-for-sale (b)
U.S. Treasury and agencies	$	728	$	15	$	–		$	–		$	743	$	1,045	$	13	$	–		$	(1	)	$	1,057
Mortgage-backed securities
Residential
Agency		28,494		874		–			(6	)		29,362		39,337		981		–			(4	)		40,314
Non-agency
Prime (c)		679		–		(38	)		(10	)		631		911		5		(63	)		(50	)		803
Non-prime (d)		388		1		(48	)		(1	)		340		1,047		9		(247	)		(7	)		802
Commercial
Agency		193		9		–			–			202		133		7		–			–			140
Non-agency		–		–		–			–			–		42		2		–			(2	)		42
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		33		9		–			–			42		180		31		(3	)		(2	)		206
Other		585		14		–			(1	)		598		694		16		(5	)		(24	)		681
Obligations of state and political subdivisions		6,085		372		–			–			6,457		6,394		167		–			(22	)		6,539
Obligations of foreign governments		6		–		–			–			6		6		–		–			–			6
Corporate debt securities		813		2		–			(106	)		709		1,000		1		–			(174	)		827
Perpetual preferred securities		268		29		–			(19	)		278		379		25		–			(86	)		318
Other investments		248		20		–			–			268		188		15		–			(1	)		202
Total available-for-sale	$	38,520	$	1,345	$	(86	)	$	(143	)	$	39,636	$	51,356	$	1,272	$	(318	)	$	(373	)	$	51,937

(a) Held-to-maturity investment securities are carried at historical cost or at fair value at the time of transfer from the available-for-sale to held-to-maturity category, adjusted for amortization of premiums and accretion of discounts and credit-related other-than-temporary impairment.

(b) Available-for-sale investment securities are carried at fair value with unrealized net gains or losses reported within accumulated other comprehensive income (loss) in shareholders’ equity.

(c) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads). When the Company determines the designation, prime securities typically have a weighted average credit score of 725 or higher and a loan-to-value of 80 percent or lower; however, other pool characteristics may result in designations that deviate from these credit score and loan-to-value thresholds.

(d) Includes all securities not meeting the conditions to be designated as prime.

(e) Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired.

(f) Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired.

During the second quarter of 2012, the Company transferred $11.7 billion of available-for-sale agency mortgage-backed investment securities to the held-to-maturity category, reflecting the Company’s intent to hold those securities to maturity.

The weighted-average maturity of the available-for-sale investment securities was 4.0 years at September 30, 2012, compared with 5.2 years at December 31, 2011. The corresponding weighted-average yields were 3.04 percent and 3.19 percent, respectively. The weighted-average maturity of the held-to-maturity investment securities was 3.1 years at September 30, 2012, and 3.9 years at December 31, 2011. The corresponding weighted-average yields were 2.06 percent and 2.21 percent, respectively.

For amortized cost, fair value and yield by maturity date of held-to-maturity and available-for-sale investment securities outstanding at September 30, 2012, refer to Table 4 included in Management’s Discussion and Analysis which is incorporated by reference into these Notes to Consolidated Financial Statements.

Investment securities with a fair value of $16.5 billion at September 30, 2012, and $20.7 billion at December 31, 2011, were pledged to secure public, private and trust deposits, repurchase agreements and for other purposes required by contractual obligation or law. Included in these amounts were securities where the Company and certain counterparties have agreements granting the counterparties the right to sell or pledge the securities. Investment securities delivered under these types of arrangements had a fair value of $3.4 billion at September 30, 2012, and $7.0 billion at December 31, 2011.

42 U. S. Bancorp

The following table provides information about the amount of interest income from taxable and non-taxable investment securities:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in Millions)	2012		2011		2012		2011
Taxable	$	369	$	394	$	1,166	$	1,127
Non-taxable		69		76		210		230
Total interest income from investment securities	$	438	$	470	$	1,376	$	1,357

The following table provides information about the amount of gross gains and losses realized through the sales of available-for-sale investment securities:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Realized gains	$	115		$	4		$	145		$	6
Realized losses		(99	)		(4	)		(99	)		(4	)
Net realized gains (losses)	$	16		$	–		$	46		$	2
Income tax (benefit) on net realized gains (losses)	$	7		$	–		$	18		$	1

In 2007, the Company purchased certain structured investment securities (“SIVs”) from certain money market funds managed by an affiliate of the Company. Subsequent to the initial purchase, the Company exchanged its interest in the SIVs for a pro-rata portion of the underlying investment securities according to the applicable restructuring agreements. The SIVs and the investment securities received are collectively referred to as “SIV-related securities”. During the third quarter of 2012, the Company sold essentially all of the SIV-related securities.

Some of the SIV-related securities evidenced credit deterioration at the time of acquisition by the Company. All investment securities with evidence of credit deterioration at acquisition have been subsequently sold by the Company as of September 30, 2012. Changes in the accretable balance for these investment securities were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	93		$	117		$	100		$	139
Accretion		(3	)		(4	)		(11	)		(13	)
Disposals		(90	)		–			(90	)		–
Other (a)		–			(6	)		1			(19	)
Balance at end of period	$	–		$	107		$	–		$	107

(a) Primarily represents changes in projected future cash flows related to variable rates on certain investment securities.

The Company conducts a regular assessment of its investment securities with unrealized losses to determine whether investment securities are other-than-temporarily impaired considering, among other factors, the nature of the investment securities, credit ratings or financial condition of the issuer, the extent and duration of the unrealized loss, expected cash flows of underlying collateral, market conditions and whether the Company intends to sell or it is more likely than not the Company will be required to sell the investment securities.

The following tables summarize other-than-temporary impairment by investment category:

	2012										2011
Three Months Ended September 30 (Dollars in Millions)		Losses Recorded in Earnings			Other Gains (Losses) (c)			Total			Losses Recorded in Earnings			Other Gains (Losses) (c)			Total
Available-for-sale
Mortgage-backed securities
Non-agency residential
Prime (a)		$	(5	)	$	(3	)	$	(8	)	$	–		$	–		$	–
Non-prime (b)			(10	)		5			(5	)		(6	)		(4	)		(10	)
Other asset-backed securities			–			–			–			(3	)		2			(1	)
Total available-for-sale		$	(15	)	$	2		$	(13	)	$	(9	)	$	(2	)	$	(11	)

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

(c) Losses represent the non-credit portion of other-than-temporary impairment recorded in other comprehensive income for investment securities determined to be other-than-temporarily impaired during the period. Gains represent recoveries in the fair value of securities that have or previously had non-credit other-than-temporary impairment.

U. S. Bancorp 43

	2012									2011
Nine Months Ended September 30 (Dollars in Millions)	Losses Recorded in Earnings			Other Gains (Losses) (c)			Total			Losses Recorded in Earnings			Other Gains (Losses) (c)			Total
Available-for-sale
Mortgage-backed securities
Non-agency residential
Prime (a)	$	(8	)	$	(12	)	$	(20	)	$	(2	)	$	(3	)	$	(5	)
Non-prime (b)		(27	)		15			(12	)		(18	)		(16	)		(34	)
Commercial non-agency		(1	)		(1	)		(2	)		–			–			–
Other asset-backed securities		(1	)		1			–			(4	)		2			(2	)
Perpetual preferred securities		(27	)		–			(27	)		–			–			–
Total available-for-sale	$	(64	)	$	3		$	(61	)	$	(24	)	$	(17	)	$	(41	)

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

(c) Losses represent the non-credit portion of other-than-temporary impairment recorded in other comprehensive income for investment securities determined to be other-than-temporarily impaired during the period. Gains represent recoveries in the fair value of securities that have or previously had non-credit other-than-temporary impairment.

The Company determined the other-than-temporary impairment recorded in earnings for debt securities not intended to be sold by estimating the future cash flows of each individual investment security, using market information where available, and discounting the cash flows at the original effective rate of the investment security. Other-than-temporary impairment recorded in other comprehensive income (loss) was measured as the difference between that discounted amount and the fair value of each investment security. For perpetual preferred securities determined to be other-than-temporarily impaired, the Company recorded a loss in earnings for the entire difference between the securities’ fair value and their amortized cost.

The following table includes the ranges for principal assumptions used for those available-for-sale non-agency mortgage-backed securities determined to be other-than-temporarily impaired:

	Prime (a)									Non-Prime (b)
	Minimum			Maximum			Average			Minimum			Maximum			Average
September 30, 2012
Estimated lifetime prepayment rates		7	%		18	%		14	%		3	%		10	%		6	%
Lifetime probability of default rates		2			4			3			2			10			6
Lifetime loss severity rates		25			50			40			20			60			51
December 31, 2011
Estimated lifetime prepayment rates		4	%		15	%		14	%		2	%		11	%		6	%
Lifetime probability of default rates		2			9			3			1			20			5
Lifetime loss severity rates		40			50			46			8			70			52

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

Changes in the credit losses on debt securities (excludes perpetual preferred securities) are summarized as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	277		$	319		$	298		$	358
Additions to credit losses due to other-than-temporary impairments
Credit losses on securities not previously considered other-than-temporarily impaired		2			1			5			3
Decreases in expected cash flows on securities for which other-than-temporary impairment was previously recognized		13			8			32			21
Total other-than-temporary impairment on debt securities		15			9			37			24
Other changes in credit losses
Increases in expected cash flows		–			(3	)		(14	)		(20	)
Realized losses (a)		(4	)		(19	)		(33	)		(55	)
Credit losses on security sales and securities expected to be sold		(142	)		–			(142	)		(1	)
Balance at end of period	$	146		$	306		$	146		$	306

(a) Primarily represents principal losses allocated to mortgage and asset-backed securities in the Company’s portfolio under the terms of the securitization transaction documents.

44 U. S. Bancorp

At September 30, 2012, certain investment securities had a fair value below amortized cost. The following table shows the gross unrealized losses and fair value of the Company’s investment securities with unrealized losses, aggregated by investment category and length of time the individual investment securities have been in continuous unrealized loss positions, at September 30, 2012:

	Less Than 12 Months					12 Months or Greater					Total
(Dollars in Millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Held-to-maturity
Mortgage-backed securities
Residential
Agency	$	1,563	$	(3	)	$	7	$	–		$	1,570	$	(3	)
Non-agency non-prime (a)(c)		–		–			1		–			1		–
Commercial non-agency		–		–			3		–			3		–
Other asset-backed securities		1		–			11		(6	)		12		(6	)
Obligations of state and political subdivisions		–		–			5		–			5		–
Other debt securities		–		–			99		(19	)		99		(19	)
Total held-to-maturity	$	1,564	$	(3	)	$	126	$	(25	)	$	1,690	$	(28	)
Available-for-sale
U.S. Treasury and agencies	$	10	$	–		$	–	$	–		$	10	$	–
Mortgage-backed securities
Residential
Agency		3,005		(6	)		153		–			3,158		(6	)
Non-agency (a)
Prime (b)		–		–			625		(48	)		625		(48	)
Non-prime (c)		–		–			311		(49	)		311		(49	)
Other asset-backed securities		–		–			2		(1	)		2		(1	)
Obligations of state and political subdivisions		89		–			4		–			93		–
Obligations of foreign governments		6		–			–		–			6		–
Corporate debt securities		–		–			624		(106	)		624		(106	)
Perpetual preferred securities		22		–			140		(19	)		162		(19	)
Other investments		–		–			3		–			3		–
Total available-for-sale	$	3,132	$	(6	)	$	1,862	$	(223	)	$	4,994	$	(229	)

(a) The Company has $97 million of unrealized losses on residential non-agency mortgage-backed securities. Credit-related other-than-temporary impairment on these securities may occur if there is further deterioration in the underlying collateral pool performance. Borrower defaults may increase if current economic conditions persist or worsen. Additionally, further deterioration in home prices may increase the severity of projected losses.

(b) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(c) Includes all securities not meeting the conditions to be designated as prime.

The Company does not consider these unrealized losses to be credit-related. These unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. A substantial portion of investment securities that have unrealized losses are either corporate debt or mortgage-backed securities issued with high investment grade credit ratings. In general, the issuers of the investment securities are contractually prohibited from prepayment at less than par, and the Company did not pay significant purchase premiums for these investment securities. At September 30, 2012, the Company had no plans to sell investment securities with unrealized losses, and believes it is more likely than not it would not be required to sell such investment securities before recovery of their amortized cost.

U. S. Bancorp 45

Note 3 Loans and Allowance for Credit Losses

The composition of the loan portfolio, disaggregated by class and underlying specific portfolio type, was as follows:

	September 30, 2012					December 31, 2011
(Dollars in Millions)	Amount		Percent of Total			Amount		Percent of Total
Commercial
Commercial	$	57,415		26.3	%	$	50,734		24.2	%
Lease financing		5,495		2.5			5,914		2.8
Total commercial		62,910		28.8			56,648		27.0
Commercial real estate
Commercial mortgages		30,831		14.1			29,664		14.1
Construction and development		5,982		2.8			6,187		3.0
Total commercial real estate		36,813		16.9			35,851		17.1
Residential mortgages
Residential mortgages		31,504		14.4			28,669		13.7
Home equity loans, first liens		10,398		4.8			8,413		4.0
Total residential mortgages		41,902		19.2			37,082		17.7
Credit card		16,402		7.5			17,360		8.3
Other retail
Retail leasing		5,332		2.4			5,118		2.4
Home equity and second mortgages		17,119		7.9			18,131		8.6
Revolving credit		3,320		1.5			3,344		1.6
Installment		5,474		2.5			5,348		2.6
Automobile		12,431		5.7			11,508		5.5
Student		4,289		2.0			4,658		2.2
Total other retail		47,965		22.0			48,107		22.9
Total loans, excluding covered loans		205,992		94.4			195,048		93.0
Covered loans		12,158		5.6			14,787		7.0
Total loans	$	218,150		100.0	%	$	209,835		100.0	%

The Company had loans of $73.2 billion at September 30, 2012, and $67.0 billion at December 31, 2011, pledged at the Federal Home Loan Bank (“FHLB”), and loans of $47.2 billion at September 30, 2012, and $47.2 billion at December 31, 2011, pledged at the Federal Reserve Bank.

Originated loans are reported at the principal amount outstanding, net of unearned interest and deferred fees and costs. Net unearned interest and deferred fees and costs amounted to $.8 billion at September 30, 2012, and $1.1 billion at December 31, 2011. All purchased loans and related indemnification assets are recorded at fair value at the date of purchase. The Company evaluates purchased loans for impairment at the date of purchase in accordance with applicable authoritative accounting guidance. Purchased loans with evidence of credit deterioration since origination for which it is probable that all contractually required payments will not be collected are considered “purchased impaired loans.” All other purchased loans are considered “purchased nonimpaired loans.”

On the acquisition date, the estimate of the contractually required payments receivable for all purchased impaired loans acquired in the first quarter 2012 acquisition of BankEast, a subsidiary of BankEast Corporation, from the Federal Deposit Insurance Corporation (“FDIC”) was $63 million, the cash flows expected to be collected was $41 million including interest, and the estimated fair value of the loans was $28 million. These amounts were determined based upon the estimated remaining life of the underlying loans, which includes the effects of estimated prepayments. For the purchased nonimpaired loans acquired in the BankEast transaction, the estimate as of the acquisition date of the contractually required payments receivable was $135 million, the contractual cash flows not expected to be collected was $22 million, and the estimated fair value of the loans was $96 million. The BankEast transaction did not include a loss sharing agreement.

46 U. S. Bancorp

Changes in the accretable balance for all purchased impaired loans, including those acquired in the BankEast transaction, were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	2,431		$	3,015		$	2,619		$	2,890
Purchases		–			–			13			100
Accretion		(109	)		(110	)		(337	)		(337	)
Disposals		(37	)		(43	)		(135	)		(47	)
Reclassifications (to)/from nonaccretable difference (a)		58			(170	)		191			117
Other		(14	)		(7	)		(22	)		(38	)
Balance at end of period	$	2,329		$	2,685		$	2,329		$	2,685

(a) Primarily relates to changes in expected credit performance.

Allowance for Credit Losses The allowance for credit losses reserves for probable and estimable losses incurred in the Company’s loan and lease portfolio and includes certain amounts that do not represent loss exposure to the Company because those losses are recoverable under loss sharing agreements with the FDIC. The allowance for credit losses is increased through provisions charged to operating earnings and reduced by net charge-offs. Management evaluates the allowance each quarter to ensure it appropriately reserves for incurred losses.

The allowance recorded for loans in the commercial lending segment is based on reviews of individual credit relationships and considers the migration analysis of commercial lending segment loans and actual loss experience. The Company currently uses an 11-year period of historical losses in considering actual loss experience. This timeframe and the results of the analysis are evaluated quarterly to determine the appropriateness. The allowance recorded for impaired loans greater than $5 million in the commercial lending segment is based on an individual loan analysis utilizing expected cash flows discounted using the original effective interest rate, the observable market price, or the fair value of the collateral for collateral-dependent loans. The allowance recorded for all other commercial lending segment loans is determined on a homogenous pool basis and includes consideration of product mix, risk characteristics of the portfolio, bankruptcy experience, and historical losses, adjusted for current trends. The Company also considers the impacts of any loan modifications made to commercial lending segment loans and any subsequent payment defaults to its expectations of cash flows, principal balance, and current expectations about the borrower’s ability to pay in determining the allowance for credit losses.

The allowance recorded for purchased impaired and Troubled Debt Restructuring (“TDR”) loans in the consumer lending segment is determined on a homogenous pool basis utilizing expected cash flows discounted using the original effective interest rate of the pool. The allowance for collateral-dependent loans in the consumer lending segment is determined based on the fair value of the collateral. The allowance recorded for all other consumer lending segment loans is determined on a homogenous pool basis and includes consideration of product mix, risk characteristics of the portfolio, bankruptcy experience, delinquency status and historical losses, adjusted for current trends. The Company also considers any modifications made to consumer lending segment loans including the impacts of any subsequent payment defaults since modification in determining the allowance for credit losses, such as borrower’s ability to pay under the restructured terms, and the timing and amount of payments.

Covered assets represent loans and other assets acquired from the FDIC, subject to loss sharing agreements, and include expected reimbursements from the FDIC. The allowance for covered segment loans is evaluated each quarter in a manner similar to that described for non-covered loans and represents any decreases in expected cash flows of those loans after the acquisition date. The provision for credit losses for covered segment loans considers the indemnification provided by the FDIC.

In addition, subsequent payment defaults on loan modifications considered TDRs are considered in the underlying factors used in the determination of the appropriateness of the allowance for credit losses. For each loan segment, the Company estimates future loan charge-offs through a variety of analysis, trends and underlying assumptions. With respect to the commercial lending segment, TDRs may be collectively evaluated for impairment where observed performance history, including defaults, is a primary driver of the loss allocation. For commercial TDRs individually evaluated for impairment, attributes of the borrower are the primary factors in determining the allowance for credit losses. However, incorporation of loss history is factored into the allowance methodology applied to this category of loans. With respect to the consumer lending segment, performance of the portfolio, including defaults on TDRs, is considered when estimating future cash flows.

U. S. Bancorp 47

The Company’s methodology for determining the appropriate allowance for credit losses for all the loan segments also considers the imprecision inherent in the methodologies used. As a result, in addition to the amounts determined under the methodologies described above, management also considers the potential impact of other qualitative factors which include, but are not limited to, economic factors; geographic and other concentration risks; delinquency and nonaccrual trends; current business conditions; changes in lending policy, underwriting standards, internal review and other relevant business practices; and the regulatory environment. The consideration of these items results in adjustments to allowance amounts included in the Company’s allowance for credit losses for each of the above loan segments.

The Company also assesses the credit risk associated with off-balance sheet loan commitments, letters of credit, and derivatives. Credit risk associated with derivatives is reflected in the fair values recorded for those positions. The liability for off-balance sheet credit exposure related to loan commitments and other credit guarantees is included in other liabilities. Because business processes and credit risks associated with unfunded credit commitments are essentially the same as for loans, the Company utilizes similar processes to estimate its liability for unfunded credit commitments.

Activity in the allowance for credit losses by portfolio class was as follows:

Three Months Ended September 30 (Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans, Excluding Covered Loans			Covered Loans			Total Loans
2012
Balance at beginning of period	$	1,037		$	941		$	939		$	996		$	828		$	4,741		$	123		$	4,864
Add
Provision for credit losses		63			(22	)		143			119			185			488			–			488
Deduct
Loans charged off		90			47			127			186			187			637			2			639
Less recoveries of loans charged off		(24	)		(22	)		(6	)		(19	)		(30	)		(101	)		–			(101	)
Net loans charged off		66			25			121			167			157			536			2			538
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			(10	)		(10	)
Other changes		–			–			–			(33	)		–			(33	)		–			(33	)
Balance at end of period	$	1,034		$	894		$	961		$	915		$	856		$	4,660		$	111		$	4,771
2011
Balance at beginning of period	$	1,109		$	1,258		$	841		$	1,140		$	843		$	5,191		$	117		$	5,308
Add
Provision for credit losses		15			88			168			106			131			508			11			519
Deduct
Loans charged off		126			131			124			203			175			759			3			762
Less recoveries of loans charged off		(27	)		(6	)		(2	)		(25	)		(33	)		(93	)		–			(93	)
Net loans charged off		99			125			122			178			142			666			3			669
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			32			32
Balance at end of period	$	1,025		$	1,221		$	887		$	1,068		$	832		$	5,033		$	157		$	5,190

Nine Months Ended September 30 (Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans, Excluding Covered Loans			Covered Loans			Total Loans
2012
Balance at beginning of period	$	1,010		$	1,154		$	927		$	992		$	831		$	4,914		$	100		$	5,014
Add
Provision for credit losses		247			(111	)		376			462			431			1,405			34			1,439
Deduct
Loans charged off		296			206			357			585			503			1,947			4			1,951
Less recoveries of loans charged off		(73	)		(57	)		(15	)		(79	)		(97	)		(321	)		(1	)		(322	)
Net loans charged off		223			149			342			506			406			1,626			3			1,629
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			(20	)		(20	)
Other change		–			–			–			(33	)		–			(33	)		–			(33	)
Balance at end of period	$	1,034		$	894		$	961		$	915		$	856		$	4,660		$	111		$	4,771
2011
Balance at beginning of period	$	1,104		$	1,291		$	820		$	1,395		$	807		$	5,417		$	114		$	5,531
Add
Provision for credit losses		255			344			437			314			477			1,827			19			1,846
Deduct
Loans charged off		412			446			380			712			551			2,501			10			2,511
Less recoveries of loans charged off		(78	)		(32	)		(10	)		(71	)		(99	)		(290	)		–			(290	)
Net loans charged off		334			414			370			641			452			2,211			10			2,221
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			34			34
Balance at end of period	$	1,025		$	1,221		$	887		$	1,068		$	832		$	5,033		$	157		$	5,190

48 U. S. Bancorp

Additional detail of the allowance for credit losses by portfolio class was as follows:

(Dollars in Millions)	Commercial		Commercial Real Estate		Residential Mortgages		Credit Card		Other Retail		Total Loans, Excluding Covered Loans		Covered Loans		Total Loans
Allowance balance at September 30, 2012 related to
Loans individually evaluated for impairment (a)	$	6	$	33	$	–	$	–	$	–	$	39	$	–	$	39
TDRs collectively evaluated for impairment		31		28		464		167		59		749		1		750
Other loans collectively evaluated for impairment		997		828		497		748		797		3,867		21		3,888
Loans acquired with deteriorated credit quality		–		5		–		–		–		5		89		94
Total allowance for credit losses	$	1,034	$	894	$	961	$	915	$	856	$	4,660	$	111	$	4,771
Allowance balance at December 31, 2011 related to
Loans individually evaluated for impairment (a)	$	16	$	61	$	1	$	–	$	–	$	78	$	2	$	80
TDRs collectively evaluated for impairment		40		33		490		219		57		839		–		839
Other loans collectively evaluated for impairment		954		1,057		436		773		774		3,994		22		4,016
Loans acquired with deteriorated credit quality		–		3		–		–		–		3		76		79
Total allowance for credit losses	$	1,010	$	1,154	$	927	$	992	$	831	$	4,914	$	100	$	5,014

(a) Represents the allowance for credit losses related to loans greater than $5 million classified as nonperforming or TDRs.

Additional detail of loan balances by portfolio class was as follows:

(Dollars in Millions)	Commercial		Commercial Real Estate		Residential Mortgages		Credit Card		Other Retail		Total Loans, Excluding Covered Loans		Covered Loans (b)		Total Loans
September 30, 2012
Loans individually evaluated for impairment (a)	$	132	$	612	$	–	$	–	$	–	$	744	$	73	$	817
TDRs collectively evaluated for impairment		179		383		4,033		462		269		5,326		137		5,463
Other loans collectively evaluated for impairment		62,594		35,699		37,863		15,940		47,696		199,792		6,564		206,356
Loans acquired with deteriorated credit quality		5		119		6		–		–		130		5,384		5,514
Total loans	$	62,910	$	36,813	$	41,902	$	16,402	$	47,965	$	205,992	$	12,158	$	218,150
December 31, 2011
Loans individually evaluated for impairment (a)	$	222	$	812	$	6	$	–	$	–	$	1,040	$	204	$	1,244
TDRs collectively evaluated for impairment		277		331		3,430		584		148		4,770		113		4,883
Other loans collectively evaluated for impairment		56,138		34,574		33,642		16,776		47,959		189,089		8,616		197,705
Loans acquired with deteriorated credit quality		11		134		4		–		–		149		5,854		6,003
Total loans	$	56,648	$	35,851	$	37,082	$	17,360	$	48,107	$	195,048	$	14,787	$	209,835

(a) Represents loans greater than $5 million classified as nonperforming or TDRs.

(b) Includes expected reimbursements from the FDIC under loss sharing agreements.

Credit Quality The quality of the Company’s loan portfolios is assessed as a function of net credit losses, levels of nonperforming assets and delinquencies, and credit quality ratings as defined by the Company.

For all loan classes, loans are considered past due based on the number of days delinquent except for monthly amortizing loans which are classified delinquent based upon the number of contractually required payments not made (for example, two missed payments is considered 30 days delinquent).

Commercial lending segment loans are generally placed on nonaccrual status when the collection of principal and interest has become 90 days past due or is otherwise considered doubtful. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Commercial lending segment loans are generally fully or partially charged down to the fair value of the collateral securing the loan, less costs to sell, when the loan is considered uncollectible.

Consumer lending segment loans are generally charged-off at a specific number of days or payments past due. Residential mortgages and other retail loans secured by 1-4 family properties are generally charged down to the fair market value of the collateral securing the loan, less costs to sell, at 180 days past due, and placed on nonaccrual status in instances where a partial charge-off occurs unless the loan is well secured and in the process of collection. Loans and lines in a junior lien position secured by 1-4 family properties are placed on nonaccrual status at 120 days past due or when behind a first lien that has become 180 days or greater past due or placed on nonaccrual status. Any secured consumer lending segment loan whose borrower has had debt discharged through bankruptcy, for which the loan amount exceeds the fair value of the collateral, is charged down to the fair value of the related collateral and the remaining balance is placed on nonaccrual status. Credit card loans continue to accrue interest until the account is charged off. Credit cards are charged off at 180 days past due. Other retail loans not secured by 1-4 family properties are charged-off at 120 days past due; and revolving consumer lines are charged off at 180 days past due. Similar to credit cards, other retail loans are generally not placed on nonaccrual status because of the relative short period of time to charge-off. Certain retail customers having financial difficulties may have the terms of their credit card and other loan agreements modified to require only principal payments and, as such, are reported as nonaccrual.

U. S. Bancorp 49

For all loan classes, interest payments received on nonaccrual loans are generally recorded as a reduction to the loan carrying amount. Interest payments are generally recorded as reductions to a loan’s carrying amount while a loan is on nonaccrual and are recognized as interest income upon payoff of the loan. Interest income may be recognized for interest payments if the remaining carrying amount of the loan is believed to be collectible. In certain circumstances, loans in any class may be restored to accrual status, such as when none of the principal and interest is past due and prospects for future payment are no longer in doubt; or the loan becomes well secured and is in the process of collection. Loans where there has been a partial charge-off may be returned to accrual status if all principal and interest (including amounts previously charged-off) is expected to be collected and the loan is current.

Covered loans not considered to be purchased impaired are evaluated for delinquency, nonaccrual status and charge-off consistent with the class of loan they would be included in had the loss share coverage not been in place. Generally, purchased impaired loans are considered accruing loans. However, the timing and amount of future cash flows for some loans is not reasonably estimable. Those loans are classified as nonaccrual loans and interest income is not recognized until the timing and amount of the future cash flows can be reasonably estimated.

The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to accrue interest, and those that are nonperforming:

	Accruing
(Dollars in Millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Nonperforming		Total
September 30, 2012
Commercial	$	62,502	$	216	$	40	$	152	$	62,910
Commercial real estate		36,105		65		12		631		36,813
Residential mortgages (a)		40,451		393		301		757		41,902
Credit card		15,815		230		194		163		16,402
Other retail		47,358		300		97		210		47,965
Total loans, excluding covered loans		202,231		1,204		644		1,913		205,992
Covered loans		10,758		269		682		449		12,158
Total loans	$	212,989	$	1,473	$	1,326	$	2,362	$	218,150
December 31, 2011
Commercial	$	55,991	$	300	$	45	$	312	$	56,648
Commercial real estate		34,800		138		14		899		35,851
Residential mortgages (a)		35,664		404		364		650		37,082
Credit card		16,662		238		236		224		17,360
Other retail		47,516		340		184		67		48,107
Total loans, excluding covered loans		190,633		1,420		843		2,152		195,048
Covered loans		12,589		362		910		926		14,787
Total loans	$	203,222	$	1,782	$	1,753	$	3,078	$	209,835

(a) At September 30, 2012, $462 million of loans 30 – 89 days past due and $3.0 billion of loans 90 days or more past due purchased from Government National Mortgage Association (“GNMA”) mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs, were classified as current, compared with $545 million and $2.6 billion at December 31, 2011, respectively.

The Company classifies its loan portfolios using internal credit quality ratings on a quarterly basis. These ratings include: pass, special mention and classified, and are an important part of the Company’s overall credit risk management process and evaluation of the allowance for credit losses. Loans with a pass rating represent those not classified on the Company’s rating scale for problem credits, as minimal credit risk has been identified. Special mention loans are those that have a potential weakness deserving management’s close attention. Classified loans are those where a well-defined weakness has been identified that may put full collection of contractual cash flows at risk. It is possible that others, given the same information, may reach different reasonable conclusions regarding the credit quality rating classification of specific loans.

50 U. S. Bancorp

The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating:

			Criticized
(Dollars in Millions)	Pass		Special Mention		Classified (a)		Total Criticized		Total
September 30, 2012
Commercial	$	60,403	$	1,265	$	1,242	$	2,507	$	62,910
Commercial real estate		33,326		785		2,702		3,487		36,813
Residential mortgages (b)		40,666		24		1,212		1,236		41,902
Credit card		16,046		–		356		356		16,402
Other retail		47,522		43		400		443		47,965
Total loans, excluding covered loans		197,963		2,117		5,912		8,029		205,992
Covered loans		11,544		96		518		614		12,158
Total loans	$	209,507	$	2,213	$	6,430	$	8,643	$	218,150
Total outstanding commitments	$	431,162	$	3,725	$	7,276	$	11,001	$	442,163
December 31, 2011
Commercial	$	54,003	$	1,047	$	1,598	$	2,645	$	56,648
Commercial real estate		30,733		793		4,325		5,118		35,851
Residential mortgages (b)		35,814		19		1,249		1,268		37,082
Credit card		16,910		–		450		450		17,360
Other retail		47,665		24		418		442		48,107
Total loans, excluding covered loans		185,125		1,883		8,040		9,923		195,048
Covered loans		13,966		187		634		821		14,787
Total loans	$	199,091	$	2,070	$	8,674	$	10,744	$	209,835
Total outstanding commitments	$	410,457	$	3,418	$	9,690	$	13,108	$	423,565

(a) Classified rating on consumer loans primarily based on delinquency status.

(b) At September 30, 2012, $3.0 billion of GNMA loans 90 days or more past due and $2.2 billion of restructured GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs were classified with a pass rating, compared with $2.6 billion and $2.0 billion at December 31, 2011, respectively.

For all loan classes, a loan is considered to be impaired when, based on current events or information, it is probable the Company will be unable to collect all amounts due per the contractual terms of the loan agreement. Impaired loans include all nonaccrual and TDR loans. For all loan classes, interest income on TDR loans is recognized under the modified terms and conditions if the borrower has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles. Interest income is not recognized on other impaired loans until the loan is paid off.

Factors used by the Company in determining whether all principal and interest payments due on commercial and commercial real estate loans will be collected and therefore whether those loans are impaired include, but are not limited to, the financial condition of the borrower, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on industry, geographic location and certain financial ratios. The evaluation of impairment on residential mortgages, credit card and other retail loans is primarily driven by delinquency status of individual loans or whether a loan has been modified. Individual covered loans, whose future losses are covered by loss sharing agreements with the FDIC that substantially reduce the risk of credit losses to the Company, are evaluated for impairment and accounted for in a manner consistent with the class of loan they would have been included in had the loss sharing coverage not been in place.

U. S. Bancorp 51

A summary of impaired loans by portfolio class was as follows:

(Dollars in Millions)	Period-end Recorded Investment (a)		Unpaid Principal Balance		Valuation Allowance		Commitments to Lend Additional Funds
September 30, 2012
Commercial	$	382	$	1,341	$	40	$	23
Commercial real estate		1,214		2,466		75		5
Residential mortgages		2,833		3,524		437		–
Credit card		463		462		167		–
Other retail		408		455		64		7
Total impaired loans, excluding GNMA and covered loans		5,300		8,248		783		35
Loans purchased from GNMA mortgage pools		1,631		1,631		36		–
Covered loans		820		1,612		18		13
Total	$	7,751	$	11,491	$	837	$	48
December 31, 2011
Commercial	$	657	$	1,437	$	62	$	68
Commercial real estate		1,436		2,503		124		25
Residential mortgages		2,652		3,193		482		2
Credit card		584		584		219		–
Other retail		188		197		57		–
Total impaired loans, excluding GNMA and covered loans		5,517		7,914		944		95
Loans purchased from GNMA mortgage pools		1,265		1,265		18		–
Covered loans		1,170		1,642		43		49
Total	$	7,952	$	10,821	$	1,005	$	144

(a) Substantially all loans classified as impaired at September 30, 2012 and December 31, 2011, had an associated allowance for credit losses.

Additional information on impaired loans follows:

	2012				2011
(Dollars in Millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Three months ended September 30
Commercial	$	413	$	6	$	536	$	4
Commercial real estate		1,250		12		1,558		6
Residential mortgages		2,752		31		2,573		24
Credit card		495		6		492		4
Other retail		354		3		165		1
Total impaired loans, excluding GNMA and covered loans		5,264		58		5,324		39
Loans purchased from GNMA mortgage pools		1,492		20		710		10
Covered loans		883		7		1,145		7
Total	$	7,639	$	85	$	7,179	$	56
Nine months ended September 30
Commercial	$	496	$	11	$	529	$	7
Commercial real estate		1,371		29		1,519		10
Residential mortgages		2,692		87		2,540		74
Credit card		529		22		471		10
Other retail		259		7		160		3
Total impaired loans, excluding GNMA and covered loans		5,347		156		5,219		104
Loans purchased from GNMA mortgage pools		1,363		51		433		19
Covered loans		1,042		20		584		34
Total	$	7,752	$	227	$	6,236	$	157

Troubled Debt Restructurings In certain circumstances, the Company may modify the terms of a loan to maximize the collection of amounts due when a borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term. Concessionary modifications are classified as TDRs unless the modification results in only an insignificant delay in payments to be received. The Company recognizes interest on TDRs if the borrower complies with the revised terms and conditions as agreed upon with the Company and has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles. To the extent a previous restructuring was insignificant, the Company considers the cumulative effect of past restructurings related to the receivable when determining whether a current restructuring is a TDR. Loans classified as TDRs are considered impaired loans for reporting and measurement purposes.

52 U. S. Bancorp

The following table provides a summary of loans modified as TDRs during the periods presented, by portfolio class:

	2012						2011
(Dollars in Millions)	Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance		Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance
Three months ended September 30
Commercial		1,754	$	54	$	58		1,137	$	89	$	74
Commercial real estate		63		91		80		115		124		115
Residential mortgages		2,717		344		336		748		155		156
Credit card		14,137		52		67		14,942		78		77
Other retail		6,231		159		156		956		15		16
Total loans, excluding GNMA and covered loans		24,902		700		697		17,898		461		438
Loans purchased from GNMA mortgage pools		4,859		660		589		2,110		291		312
Covered loans		73		49		46		67		148		133
Total loans		29,834	$	1,409	$	1,332		20,075	$	900	$	883
Nine months ended September 30
Commercial		4,081	$	215	$	195		3,984	$	337	$	310
Commercial real estate		245		416		390		380		906		896
Residential mortgages		3,788		529		517		2,571		515		512
Credit card		39,040		189		203		41,610		239		238
Other retail		8,028		194		191		3,020		55		55
Total loans, excluding GNMA and covered loans		55,182		1,543		1,496		51,565		2,052		2,011
Loans purchased from GNMA mortgage pools		8,436		1,116		1,087		6,042		813		871
Covered loans		166		246		234		233		456		430
Total loans		63,784	$	2,905	$	2,817		57,840	$	3,321	$	3,312

Residential mortgages, home equity and second mortgages, and loans purchased from GNMA mortgage pools TDRs in the table above include trial period arrangements offered to customers during the periods presented. The post-modification balances for these loans reflect the current outstanding balance until a permanent modification is made. In addition, the post-modification balances typically include capitalization of unpaid accrued interest and/or fees under the various modification programs. At September 30, 2012, 250 residential mortgages, 29 home equity and second mortgage loans and 2,180 loans purchased from GNMA mortgage pools with outstanding balances of $43 million, $2 million and $263 million, respectively, were in a trial period and have estimated post-modification balances of $44 million, $2 million, and $271 million, respectively, assuming permanent modification occurs at the end of the trial period.

Many of the Company’s TDRs are determined on a case-by-case basis in connection with ongoing loan collection processes. However, the Company has also implemented certain restructuring programs that may result in TDRs.

For the commercial lending segment, modifications generally result in the Company working with borrowers on a case-by-case basis. Commercial and commercial real estate modifications generally include extensions of the maturity date and may be accompanied by an increase or decrease to the interest rate, which may not be deemed a market rate of interest. In addition, the Company may work with the borrower in identifying other changes that mitigate loss to the Company, which may include additional collateral or guarantees to support the loan. To a lesser extent, the Company may waive contractual principal. The Company classifies these concessions as TDRs to the extent the Company determines that the borrower is experiencing financial difficulty.

Modifications for the consumer lending segment are generally part of programs the Company has initiated. The Company participates in the U.S. Department of Treasury Home Affordable Modification Program (“HAMP”). HAMP gives qualifying homeowners an opportunity to permanently modify residential mortgage loans and achieve more affordable monthly payments, with the U.S. Department of Treasury compensating the Company for a portion of the reduction in monthly amounts due from borrowers participating in this program. The Company also modifies residential mortgage loans under Federal Housing Administration, Department of Veterans Affairs, or other internal programs. Under these programs, the Company provides concessions to qualifying borrowers experiencing financial difficulties. The concessions may include adjustments to interest rates, conversion of adjustable rates to fixed rates, extension of maturity dates or deferrals of payments, capitalization of accrued interest and/or outstanding advances, or in limited situations, partial forgiveness of loan principal. In most instances, participation in residential mortgage loan restructuring programs requires the customer to complete a short-term trial period. A permanent loan modification is contingent on the customer successfully completing the trial period arrangement and the loan documents are not modified until that time. The Company reports loans in a trial period arrangement as TDRs.

U. S. Bancorp 53

Credit card and other retail loan modifications are generally part of two distinct restructuring programs. The Company offers workout programs providing customers experiencing financial difficulty with modifications whereby balances may be amortized up to 60 months, and generally include waiver of fees and reduced interest rates. The Company also provides modification programs to qualifying customers experiencing a temporary financial hardship in which reductions are made to monthly required minimum payments for up to 12 months. Balances related to these programs are generally frozen, however, accounts may be reopened upon successful exit of the program, in which account privileges may be restored. In addition, the Company considers secured loans to consumer borrowers that have debt discharged through bankruptcy where the borrower has not reaffirmed the debt to be TDRs.

Modifications to loans in the covered segment are similar in nature to that described above for non-covered loans, and the evaluation and determination of TDR status is similar, except that acquired loans restructured after acquisition are not considered TDRs for purposes of the Company’s accounting and disclosure if the loans evidenced credit deterioration as of the acquisition date and are accounted for in pools. Losses associated with the modification on covered loans, including the economic impact of interest rate reductions, are generally eligible for reimbursement under loss sharing agreements with the FDIC.

The following table provides a summary of TDR loans that defaulted (fully or partially charged-off or became 90 days or more past due) during the periods presented that were modified as TDRs within 12 months previous to default.

	2012				2011
(Dollars in Millions)	Number of Loans		Amount Defaulted		Number of Loans		Amount Defaulted
Three months ended September 30
Commercial		195	$	2		245	$	13
Commercial real estate		13		12		29		32
Residential mortgages		116		30		96		20
Credit card		2,536		14		1,803		9
Other retail		189		4		141		2
Total loans, excluding GNMA and covered loans		3,049		62		2,314		76
Loans purchased from GNMA mortgage pools		248		34		222		31
Covered loans		8		3		–		–
Total loans		3,305	$	99		2,536	$	107
Nine months ended September 30
Commercial		652	$	33		513	$	23
Commercial real estate		96		176		37		37
Residential mortgages		427		64		536		112
Credit card		7,452		42		5,366		27
Other retail		531		8		397		9
Total loans, excluding GNMA and covered loans		9,158		323		6,849		208
Loans purchased from GNMA mortgage pools		731		106		475		66
Covered loans		49		90		–		–
Total loans		9,938	$	519		7,324	$	274

In addition to the defaults in the table above, during the three months ended September 30, 2012, the Company had 309 residential mortgage loans, home equity and second mortgage loans, and loans purchased from GNMA mortgage pools with aggregate outstanding balances of $50 million where borrowers did not successfully complete the trial period arrangement and therefore are no longer eligible for a permanent modification under the applicable modification program.

Covered assets represent loans and other assets acquired from the FDIC, subject to loss sharing agreements, and include expected reimbursements from the FDIC. The carrying amount of the covered assets consisted of purchased impaired loans, purchased nonimpaired loans, and other assets as shown in the following table:

	September 30, 2012								December 31, 2011
(Dollars in Millions)	Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total		Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total
Commercial loans	$	15	$	144	$	–	$	159	$	68	$	137	$	–	$	205
Commercial real estate loans		1,519		3,104		–		4,623		1,956		4,037		–		5,993
Residential mortgage loans		3,850		1,184		–		5,034		3,830		1,360		–		5,190
Credit card loans		–		5		–		5		–		6		–		6
Other retail loans		–		798		–		798		–		867		–		867
Losses reimbursable by the FDIC (a)		–		–		1,539		1,539		–		–		2,526		2,526
Covered loans		5,384		5,235		1,539		12,158		5,854		6,407		2,526		14,787
Foreclosed real estate		–		–		198		198		–		–		274		274
Total covered assets	$	5,384	$	5,235	$	1,737	$	12,356	$	5,854	$	6,407	$	2,800	$	15,061

(a) Relates to loss sharing agreements with remaining terms from 2 to 7 years.

54 U. S. Bancorp

In October 2012, the Financial Accounting Standards Board issued accounting guidance, effective January 1, 2013, applicable to indemnification assets related to FDIC loss-sharing agreements. The guidance requires any reduction in the FDIC indemnification assets resulting from increases in expected cash flows of the covered assets, when there are no previous valuation allowances to reverse, to be amortized over the shorter of the remaining contractual term of the indemnification agreements or the remaining life of the covered assets. Currently, the Company amortizes these changes over the expected life of the covered assets. The Company is currently assessing the impact that this guidance will have on its financial statements.

At September 30, 2012, $93 million of the purchased impaired loans included in covered loans were classified as nonperforming assets, compared with $189 million at December 31, 2011, because the expected cash flows are primarily based on the liquidation of underlying collateral and the timing and amount of the cash flows could not be reasonably estimated. Interest income is recognized on other purchased impaired loans through accretion of the difference between the carrying amount of those loans and their expected cash flows. The initial determination of the fair value of the purchased loans includes the impact of expected credit losses and, therefore, no allowance for credit losses is recorded at the purchase date. To the extent credit deterioration occurs after the date of acquisition, the Company records an allowance for credit losses.

Net gains on the sale of loans of $419 million and $74 million for the three months ended September 30, 2012 and 2011, respectively, and $998 million and $340 million for the nine months ended September 30, 2012 and 2011, respectively, were included in noninterest income, primarily in mortgage banking revenue.

Note 4 Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities

The Company sells financial assets in the normal course of business. The majority of the Company’s financial asset sales are residential mortgage loan sales primarily to government-sponsored enterprises (“GSEs”) through established programs, the sale or syndication of tax-advantaged investments, commercial loan sales through participation agreements, and other individual or portfolio loan and securities sales. In accordance with the accounting guidance for asset transfers, the Company considers any ongoing involvement with transferred assets in determining whether the assets can be derecognized from the balance sheet. For loans sold under participation agreements, the Company also considers the terms of the loan participation agreement and whether they meet the definition of a participating interest and thus qualify for derecognition. With the exception of servicing and certain performance-based guarantees, the Company’s continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses. The guarantees provided to certain third-parties in connection with the sale or syndication of certain assets, primarily loan portfolios and tax-advantaged investments, are further discussed in Note 12. When the Company sells financial assets, it may retain servicing rights and/or other interests in the transferred financial assets. The gain or loss on sale depends on the previous carrying amount of the transferred financial assets and the consideration received and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests that continue to be held by the Company are initially recognized at fair value. For further information on mortgage servicing rights (“MSRs”), refer to Note 5. On a limited basis, the Company may acquire and package high-grade corporate bonds for select corporate customers, in which the Company generally has no continuing involvement with these transactions. Additionally, the Company is an authorized Government National Mortgage Association (“GNMA”) issuer and issues GNMA securities on a regular basis. The Company has no other asset securitizations or similar asset-backed financing arrangements that are off-balance sheet.

The Company is involved in various entities that are considered to be variable interest entities (“VIEs”). The Company’s investments in VIEs primarily represent private investment funds or partnerships that make equity investments, provide debt financing or support community-based investments that may enable the Company to ensure regulatory compliance with the Community Reinvestment Act. In addition, the Company sponsors entities to which it transfers tax-advantaged investments. The Company’s investments in these entities are designed to generate a return primarily through the realization of federal and state income tax credits over specified time periods. The Company realized federal and state income tax credits related to these investments of $227 million and $191 million for the three months ended September 30, 2012 and 2011, respectively, and $581 million and $510 million for the nine months ended September 30, 2012 and 2011, respectively. The Company amortizes its investments in these entities as the tax credits are realized. Amortization expense is recorded in tax expense for investments meeting certain characteristics, and in other noninterest expense for other investments. Amortization expense recorded in tax expense was

U. S. Bancorp 55

$123 million and $60 million, and in other noninterest expense was $140 million and $144 million for the three months ended September 30, 2012 and 2011, respectively. Amortization expense recorded in tax expense was $316 million and $175 million, and in other noninterest expense was $361 million and $386 million for the nine months ended September 30, 2012 and 2011, respectively.

At September 30, 2012, approximately $6.7 billion of the Company’s assets and $4.8 billion of its liabilities included on the consolidated balance sheet were related to community development and tax-advantaged investment VIEs which the Company has consolidated, compared with $5.6 billion and $4.0 billion, respectively, at December 31, 2011. The majority of the assets of these consolidated VIEs are reported in other assets, and the liabilities are reported in long-term debt. The assets of a particular VIE are the primary source of funds to settle its obligations. The creditors of the VIEs do not have recourse to the general credit of the Company. The Company’s exposure to the consolidated VIEs is generally limited to the carrying value of its variable interests plus any related tax credits previously recognized or sold to others.

In addition, the Company sponsors a conduit to which it previously transferred high-grade investment securities. The Company consolidates the conduit because of its ability to manage the activities of the conduit. At September 30, 2012, $151 million of the held-to-maturity investment securities on the Company’s consolidated balance sheet related to the conduit, compared with $202 million at December 31, 2011.

The Company also sponsors a municipal bond securities tender option bond program. The Company controls the activities of the program’s entities, is entitled to the residual returns and provides credit, liquidity and remarketing arrangements to the program. As a result, the Company has consolidated the program’s entities. At September 30, 2012, $5.3 billion of available-for-sale securities and $5.0 billion of short-term borrowings on the consolidated balance sheet were related to the tender option bond program, compared with $5.4 billion of available-for-sale securities and $5.3 billion of short-term borrowings at December 31, 2011.

The Company is not required to consolidate VIEs in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary. In such cases, the Company does not have both the power to direct the entities’ most significant activities and the obligation to absorb losses or right to receive benefits that could potentially be significant to the VIEs. The Company’s investments in these unconsolidated VIEs generally are carried in other assets on the consolidated balance sheet. The Company’s investments in unconsolidated VIEs at September 30, 2012, ranged from less than $1 million to $44 million, with an aggregate amount of approximately $1.7 billion, net of $1.1 billion of liabilities recorded primarily for unfunded capital commitments of the Company to specific project sponsors. The Company’s investments in unconsolidated VIEs at December 31, 2011, ranged from less than $1 million to $37 million, with an aggregate amount of $1.8 billion, net of liabilities of $965 million for unfunded capital commitments. While the Company believes potential losses from these investments are remote, the Company’s maximum exposure to loss from these unconsolidated VIEs was approximately $5.0 billion at September 30, 2012, compared with $4.8 billion at December 31, 2011. The maximum exposure to loss was primarily related to community development tax-advantaged investments and included $1.7 billion at September 30, 2012, and $1.8 billion at December 31, 2011, recorded on the Company’s consolidated balance sheet and $3.2 billion at September 30, 2012, and $3.0 billion at December 31, 2011, of previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. The remaining amounts related to investments in private investment funds and partnerships for which the maximum exposure to loss included amounts recorded on the consolidated balance sheet and any unfunded commitments. The maximum exposure was determined by assuming a scenario where the separate investments within the individual private funds were to become worthless, and the community-based business and housing projects and related tax credits completely failed and did not meet certain government compliance requirements.

56 U. S. Bancorp

Note 5 Mortgage Servicing Rights

The Company serviced $211.3 billion of residential mortgage loans for others at September 30, 2012, and $191.1 billion at December 31, 2011. The net impact included in mortgage banking revenue of fair value changes of MSRs and derivatives used to economically hedge MSRs were net gains of $10 million and $7 million for the three months ended September 30, 2012 and 2011, respectively, and net gains of $72 million and $151 million for the nine months ended September 30, 2012 and 2011, respectively. Loan servicing fees, not including valuation changes, included in mortgage banking revenue, were $181 million and $166 million for the three months ended September 30, 2012 and 2011, respectively, and $526 million and $483 million for the nine months ended September 30, 2012 and 2011, respectively.

Changes in fair value of capitalized MSRs are summarized as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	1,594		$	1,989		$	1,519		$	1,837
Rights purchased		10			5			39			16
Rights capitalized		224			101			700			416
Changes in fair value of MSRs
Due to fluctuations in market interest rates (a)		(123	)		(534	)		(298	)		(569	)
Due to revised assumptions or models (b)		(2	)		2			(19	)		27
Other changes in fair value (c)		(150	)		(97	)		(388	)		(261	)
Balance at end of period	$	1,553		$	1,466		$	1,553		$	1,466

(a) Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits.

(b) Includes changes in MSR value not caused by changes in market interest rates, such as changes in cost to service, ancillary income, and discount rate, as well as the impact of any model changes.

(c) Primarily represents changes due to realization of expected cash flows over time (decay).

The estimated sensitivity to changes in interest rates of the fair value of the MSRs portfolio and the related derivative instruments was as follows:

	September 30, 2012																		December 31, 2011
(Dollars in Millions)	Down 100 bps			Down 50 bps			Down 25 bps			Up 25 bps			Up 50 bps			Up 100 bps			Down 100 bps			Down 50 bps			Down 25 bps			Up 25 bps			Up 50 bps			Up 100 bps
MSR portfolio	$	(262	)	$	(162	)	$	(94	)	$	109		$	231		$	483		$	(305	)	$	(183	)	$	(98	)	$	107		$	223		$	460
Derivative instrument hedges		405			208			105			(105	)		(210	)		(422	)		378			204			104			(107	)		(217	)		(445	)
Net sensitivity	$	143		$	46		$	11		$	4		$	21		$	61		$	73		$	21		$	6		$	—		$	6		$	15

The fair value of MSRs and their sensitivity to changes in interest rates is influenced by the mix of the servicing portfolio and characteristics of each segment of the portfolio. The Company’s servicing portfolio consists of the distinct portfolios of government-insured mortgages, conventional mortgages and Mortgage Revenue Bond Programs (“MRBP”). The servicing portfolios are predominantly comprised of fixed-rate agency loans with limited adjustable-rate or jumbo mortgage loans. The MRBP division specializes in servicing loans made under state and local housing authority programs. These programs provide mortgages to low-income and moderate-income borrowers and are generally government-insured programs with a favorable rate subsidy, down payment and/or closing cost assistance.

A summary of the Company’s MSRs and related characteristics by portfolio was as follows:

	September 30, 2012												December 31, 2011
(Dollars in Millions)	MRBP			Government			Conventional (b)			Total			MRBP			Government			Conventional (b)			Total
Servicing portfolio	$	13,939		$	38,162		$	159,162		$	211,263		$	13,357		$	32,567		$	145,158		$	191,082
Fair market value	$	154		$	304		$	1,095		$	1,553		$	155		$	290		$	1,074		$	1,519
Value (bps) (a)		110			80			69			74			116			89			74			79
Weighted-average servicing fees (bps)		40			34			30			31			40			36			29			31
Multiple (value/servicing fees)		2.75			2.35			2.30			2.39			2.90			2.47			2.55			2.55
Weighted-average note rate		5.24	%		4.69	%		4.63	%		4.68	%		5.50	%		5.08	%		4.97	%		5.03	%
Weighted-average age (in years)		4.2			2.4			2.5			2.6			4.2			2.5			2.8			2.8
Weighted-average expected prepayment (constant prepayment rate)		13.1	%		21.6	%		23.1	%		22.2	%		12.9	%		21.1	%		22.1	%		21.3	%
Weighted-average expected life (in years)		6.2			4.0			3.5			3.8			6.4			4.0			3.8			4.0
Weighted-average discount rate		12.1	%		11.4	%		10.0	%		10.4	%		12.1	%		11.3	%		10.0	%		10.4	%

(a) Value is calculated as fair market value divided by the servicing portfolio.

(b) Represents loans sold primarily to GSEs.

U. S. Bancorp 57

Note 6 Preferred Stock

At September 30, 2012 and December 31, 2011, the Company had authority to issue 50 million shares of preferred stock. The number of shares issued and outstanding and the carrying amount of each outstanding series of the Company’s preferred stock was as follows:

	September 30, 2012								December 31, 2011
(Dollars in Millions)	Shares Issued and Outstanding		Liquidation Preference		Discount		Carrying Amount		Shares Issued and Outstanding		Liquidation Preference		Discount		Carrying Amount
Series A		12,510	$	1,251	$	145	$	1,106		12,510	$	1,251	$	145	$	1,106
Series B		40,000		1,000		—		1,000		40,000		1,000		—		1,000
Series D		20,000		500		—		500		20,000		500		—		500
Series F		44,000		1,100		12		1,088		—		—		—		—
Series G		43,400		1,085		10		1,075		—		—		—		—
Total preferred stock (a)		159,910	$	4,936	$	167	$	4,769		72,510	$	2,751	$	145	$	2,606

(a) The par value of all shares issued and outstanding at September 30, 2012 and December 31, 2011, was $1.00 per share.

On January 23, 2012, the Company issued depositary shares representing an ownership interest in 44,000 shares of Series F Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the “Series F Preferred Stock”), and on April 20, 2012, the Company issued depositary shares representing an ownership interest in 43,400 shares of Series G Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the “Series G Preferred Stock”). The Series F Preferred Stock and Series G Preferred Stock have no stated maturity and will not be subject to any sinking fund or other obligation of the Company. Dividends, if declared, will accrue and be payable quarterly, in arrears, at a rate per annum equal to 6.50 percent from the date of issuance to, but excluding, January 15, 2022, and thereafter at a floating rate per annum equal to three-month LIBOR plus 4.468 percent for the Series F Preferred Stock, and 6.00 percent from the date of issuance to, but excluding, April 15, 2017, and thereafter at a floating rate per annum equal to three-month LIBOR plus 4.86125 percent for the Series G Preferred Stock. Both series are redeemable at the Company’s option, in whole or in part, on or after January 15, 2022, for the Series F Preferred Stock and April 15, 2017, for the Series G Preferred Stock. Both series are redeemable at the Company’s option, in whole, but not in part, prior to January 15, 2022, for the Series F Preferred Stock and prior to April 15, 2017, for the Series G Preferred Stock, within 90 days following an official administrative or judicial decision, amendment to, or change in the laws or regulations that would not allow the Company to treat the full liquidation value of the Series F Preferred Stock or Series G Preferred Stock, respectively, as Tier 1 capital for purposes of the capital adequacy guidelines of the Federal Reserve.

For further information on preferred stock, refer to Note 15 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

Note 7 Earnings Per Share

The components of earnings per share were:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars and Shares in Millions, Except Per Share Data)	2012			2011			2012			2011
Net income attributable to U.S. Bancorp	$	1,474		$	1,273		$	4,227		$	3,522
Preferred dividends		(64	)		(30	)		(174	)		(99	)
Earnings allocated to participating stock awards		(6	)		(6	)		(19	)		(16	)
Net income applicable to U.S. Bancorp common shareholders	$	1,404		$	1,237		$	4,034		$	3,407
Average common shares outstanding		1,886			1,915			1,892			1,918
Net effect of the exercise and assumed purchase of stock awards and conversion of outstanding convertible notes		11			7			9			8
Average diluted common shares outstanding		1,897			1,922			1,901			1,926
Earnings per common share	$	.74		$	.65		$	2.13		$	1.78
Diluted earnings per common share	$	.74		$	.64		$	2.12		$	1.77

Options and warrants outstanding at September 30, 2012 to purchase 10 million and 22 million common shares for the three months and nine months ended September 30, 2012, respectively, and outstanding at September 30, 2011 to purchase 60 million and 54 million common shares for the three months and nine months ended September 30, 2011,

58 U. S. Bancorp

respectively, were not included in the computation of diluted earnings per share because they were antidilutive. Convertible senior debentures that could potentially be converted into shares of the Company’s common stock pursuant to specified formulas, were not included in the computation of dilutive earnings per share because they were antidilutive.

Note 8 Employee Benefits

The components of net periodic benefit cost for the Company’s retirement plans were:

	Three Months Ended September 30,												Nine Months Ended September 30,
	Pension Plans						Postretirement Welfare Plan						Pension Plans						Postretirement Welfare Plan
(Dollars in Millions)	2012			2011			2012			2011			2012			2011			2012			2011
Service cost	$	33		$	30		$	2		$	1		$	97		$	89		$	4		$	3
Interest cost		42			42			1			3			126			126			5			7
Expected return on plan assets		(48	)		(52	)		(1	)		(1	)		(143	)		(155	)		(2	)		(3	)
Prior service cost (credit) and transition obligation (asset) amortization		(2	)		(2	)		—			—			(4	)		(7	)		—			—
Actuarial loss (gain) amortization		41			31			(1	)		(2	)		121			94			(5	)		(5	)
Net periodic benefit cost	$	66		$	49		$	1		$	1		$	197		$	147		$	2		$	2

Note 9 Income Taxes

The components of income tax expense were:

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in Millions)	2012		2011			2012		2011
Federal
Current	$	461	$	450		$	1,416	$	907
Deferred		50		(41	)		26		232
Federal income tax		511		409			1,442		1,139
State
Current		77		85			239		157
Deferred		5		(4	)		3		18
State income tax		82		81			242		175
Total income tax provision	$	593	$	490		$	1,684	$	1,314

A reconciliation of expected income tax expense at the federal statutory rate of 35 percent to the Company’s applicable income tax expense follows:

	Three Months Ended September 30,						Nine Months Ended   September 30,
(Dollars in Millions)	2012			2011			2012			2011
Tax at statutory rate	$	709		$	610		$	2,030		$	1,671
State income tax, at statutory rates, net of federal tax benefit		53			53			157			114
Tax effect of
Tax credits, net of related expenses		(120	)		(124	)		(322	)		(319	)
Tax-exempt income		(55	)		(57	)		(165	)		(170	)
Noncontrolling interests		15			8			39			22
Other items		(9	)		—			(55	)		(4	)
Applicable income taxes	$	593		$	490		$	1,684		$	1,314

The Company’s income tax returns are subject to review and examination by federal, state, local and foreign government authorities. On an ongoing basis, numerous federal, state, local and foreign examinations are in progress and cover multiple tax years. As of September 30, 2012, the federal taxing authority has completed its examination of the Company through the fiscal year ended December 31, 2008. The years open to examination by foreign, state and local government authorities vary by jurisdiction.

The Company’s net deferred tax liability was $1.6 billion at September 30, 2012, and $1.1 billion at December 31, 2011.

U. S. Bancorp 59

Note 10 Derivative Instruments

The Company recognizes all derivatives in the consolidated balance sheet at fair value in other assets or in other liabilities. On the date the Company enters into a derivative contract, the derivative is designated as either a hedge of the fair value of a recognized asset or liability (“fair value hedge”); a hedge of a forecasted transaction or the variability of cash flows to be paid related to a recognized asset or liability (“cash flow hedge”); a hedge of the volatility of an investment in foreign operations driven by changes in foreign currency exchange rates (“net investment hedge”); or a designation is not made as it is a customer-related transaction, an economic hedge for asset/liability risk management purposes or another stand-alone derivative created through the Company’s operations (“free-standing derivative”).

The following table provides information on the fair value of the Company’s derivative positions:

	September 30, 2012						December 31, 2011
(Dollars in Millions)	Asset Derivatives			Liability Derivatives			Asset Derivatives			Liability Derivatives
Total fair value of derivative positions	$	2,176		$	2,640		$	1,913		$	2,554
Netting (a)		(354	)		(1,687	)		(294	)		(1,889	)
Total	$	1,822		$	953		$	1,619		$	665

(a) Represents netting of derivative asset and liability balances, and related collateral, with the same counterparty subject to master netting agreements. At September 30, 2012, the amount of cash and money market investments collateral posted by counterparties that was netted against derivative assets was $89 million and the amount of cash collateral posted by the Company that was netted against derivative liabilities was $1.4 billion, compared with $88 million and $1.7 billion, respectively, at December 31, 2011.

Of the Company’s $65.5 billion of total notional amount of asset and liability management positions at September 30, 2012, $12.0 billion was designated as a fair value, cash flow or net investment hedge. When a derivative is designated as a fair value, cash flow or net investment hedge, the Company performs an assessment, at inception and, at a minimum, quarterly thereafter, to determine the effectiveness of the derivative in offsetting changes in the value or cash flows of the hedged item(s).

Fair Value Hedges These derivatives are primarily interest rate swaps that hedge the change in fair value related to interest rate changes of underlying fixed-rate debt and junior subordinated debentures. Changes in the fair value of derivatives designated as fair value hedges, and changes in the fair value of the hedged items, are recorded in earnings. All fair value hedges were highly effective for the nine months ended September 30, 2012, and the change in fair value attributed to hedge ineffectiveness was not material.

Cash Flow Hedges These derivatives are interest rate swaps that are hedges of the forecasted cash flows from the underlying variable-rate loans and debt. Changes in the fair value of derivatives designated as cash flow hedges are recorded in other comprehensive income (loss) until the cash flows of the hedged items are realized. If a derivative designated as a cash flow hedge is terminated or ceases to be highly effective, the gain or loss in other comprehensive income (loss) is amortized to earnings over the period the forecasted hedged transactions impact earnings. If a hedged forecasted transaction is no longer probable, hedge accounting is ceased and any gain or loss included in other comprehensive income (loss) is reported in earnings immediately, unless the forecasted transaction is at least reasonably possible of occurring, whereby the amounts within other comprehensive income (loss) remain. At September 30, 2012, the Company had $433 million (net-of-tax) of realized and unrealized losses on derivatives classified as cash flow hedges recorded in other comprehensive income (loss), compared with $489 million (net-of-tax) at December 31, 2011. The estimated amount to be reclassified from other comprehensive income (loss) into earnings during the remainder of 2012 and the next 12 months are losses of $33 million (net-of-tax) and $132 million (net-of-tax), respectively. This amount includes gains and losses related to hedges that were terminated early for which the forecasted transactions are still probable. All cash flow hedges were highly effective for the nine months ended September 30, 2012, and the change in fair value attributed to hedge ineffectiveness was not material.

Net Investment Hedges The Company uses forward commitments to sell specified amounts of certain foreign currencies and non-derivative debt instruments to hedge the volatility of its investment in foreign operations driven by fluctuations in foreign currency exchange rates. The ineffectiveness on all net investment hedges was not material for the nine months ended September 30, 2012. There were no derivatives designated as net investment hedges at September 30, 2012. At September 30, 2012, the carrying amount of non-derivative debt instruments designated as net investment hedges was $719 million. There were no non-derivative debt instruments designated as net investment hedges at December 31, 2011.

60 U. S. Bancorp

Other Derivative Positions The Company enters into free-standing derivatives to mitigate interest rate risk and for other risk management purposes. These derivatives include forward commitments to sell to-be-announced securities (“TBAs”) and other commitments to sell residential mortgage loans, which are used to economically hedge the interest rate risk related to residential mortgage loans held for sale and unfunded mortgage loan commitments. The Company also enters into interest rate swaps, forward commitments to buy TBAs, U.S. Treasury futures and options on U.S. Treasury futures to economically hedge the change in the fair value of the Company’s MSRs. The Company also enters into foreign currency forwards to economically hedge remeasurement gains and losses the Company recognizes on foreign currency denominated assets and liabilities. In addition, the Company acts as a seller and buyer of interest rate derivatives and foreign exchange contracts for its customers. To mitigate the market and liquidity risk associated with these customer derivatives, the Company enters into similar offsetting positions with broker-dealers. The Company also has derivative contracts that are created through its operations, including commitments to originate mortgage loans held for sale and certain derivative financial guarantee contracts.

For additional information on the Company’s purpose for entering into derivative transactions and its overall risk management strategies, refer to “Management Discussion and Analysis — Use of Derivatives to Manage Interest Rate and Other Risks” which is incorporated by reference into these Notes to Consolidated Financial Statements.

The following table summarizes the asset and liability management derivative positions of the Company:

	Asset Derivatives						Liability Derivatives
(Dollars in Millions)	Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years		Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years
September 30, 2012
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	500	$	30		3.34	$	–	$	–		–
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		–		–		–		4,468		771		3.96
Receive fixed/pay floating swaps		7,000		51		2.10		–		–		–
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		15,159		311		.08		107		1		.04
Sell		2,720		7		.14		17,673		389		.08
Options
Purchased		2,250		–		.07		–		–		–
Written		6,097		204		.12		8		1		.19
Receive fixed/pay floating swaps		3,975		45		10.23		–		–		–
Foreign exchange forward contracts		1,125		7		.02		1,446		5		.03
Equity contracts		32		–		.53		33		1		2.72
Credit contracts		909		3		4.45		2,005		10		3.28
December 31, 2011
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps		500		27		4.09		–		–		–
Foreign exchange cross-currency swaps		688		17		5.17		432		23		5.17
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		–		–		–		4,788		803		4.03
Receive fixed/pay floating swaps		750		–		2.75		6,250		6		2.86
Net investment hedges
Foreign exchange forward contracts		708		4		.08		–		–		–
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		14,270		150		.07		29		–		.12
Sell		231		1		.15		14,415		134		.11
Options
Purchased		1,250		–		.07		–		–		–
Written		4,421		80		.10		11		1		.13
Receive fixed/pay floating swaps		2,625		9		10.21		–		–		–
Foreign exchange forward contracts		307		1		.08		1,414		11		.08
Equity contracts		54		1		1.05		10		–		.64
Credit contracts		800		7		3.71		1,600		8		3.59

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The following table summarizes the customer-related derivative positions of the Company:

	Asset Derivatives						Liability Derivatives
(Dollars in Millions)	Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years		Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years
September 30, 2012
Interest rate contracts
Receive fixed/pay floating swaps	$	17,262	$	1,186		4.74	$	359	$	8		16.45
Pay fixed/receive floating swaps		280		8		19.79		17,433		1,148		4.76
Options
Purchased		3,014		15		5.34		28		–		4.67
Written		202		–		.73		2,839		15		5.66
Foreign exchange rate contracts
Forwards, spots and swaps (a)		11,038		301		.36		10,799		283		.45
Options
Purchased		346		8		.65		–		–		–
Written		–		–		–		346		8		.65
December 31, 2011
Interest rate contracts
Receive fixed/pay floating swaps		16,230		1,216		4.98		523		1		2.52
Pay fixed/receive floating swaps		99		–		1.81		16,206		1,182		5.10
Options
Purchased		2,660		26		6.11		–		–		–
Written		–		–		–		2,660		26		6.11
Foreign exchange rate contracts
Forwards, spots and swaps (a)		7,936		369		.54		7,731		354		.54
Options
Purchased		127		5		.41		–		–		–
Written		–		–		–		127		5		.41

(a) Reflects the net of long and short positions.

The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax):

	Three Months Ended September 30,												Nine Months Ended September 30,
	Gains (Losses) Recognized in Other Comprehensive Income (Loss)						Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings						Gains (Losses) Recognized in Other Comprehensive Income (Loss)						Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)	2012			2011			2012			2011			2012			2011			2012			2011
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts (a)	$	(19	)	$	(120	)	$	(33	)	$	(34	)	$	(42	)	$	(199	)	$	(98	)	$	(103	)
Net investment hedges
Foreign exchange forward contracts		–			(57	)		–			–			(6	)		(104	)		–			–
Non-derivative debt instruments		(11	)		–			–			–			26			–			–			–

Note: Ineffectiveness on cash flow and net investment hedges was not material for the three and nine months ended September 30, 2012 and 2011.

(a) Gains (Losses) reclassified from other comprehensive income (loss) into interest income on loans and interest expense on long-term debt.

62 U. S. Bancorp

The table below shows the gains (losses) recognized in earnings for fair value hedges, other economic hedges and the customer-related positions:

	Location of Gains (Losses) Recognized in Earnings		Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)			2012			2011			2012			2011
Asset and Liability Management Positions
Fair value hedges (a)
Interest rate contracts		Other noninterest income	$	2		$	1		$	5		$	25
Foreign exchange cross-currency swaps		Other noninterest income		–			(111	)		42			(13	)
Other economic hedges
Interest rate contracts
Futures and forwards		Mortgage banking revenue		(44	)		17			67			(7	)
Purchased and written options		Mortgage banking revenue		290			181			689			323
Receive fixed/pay floating swaps		Mortgage banking revenue		48			377			186			479
Pay fixed/receive floating swaps		Mortgage banking revenue		–			4			–			4
Foreign exchange forward contracts		Commercial products revenue		(25	)		(48	)		(62	)		(66	)
Equity contracts		Compensation expense		1			1			2			2
Credit contracts		Other noninterest income/expense		(2	)		4			(8	)		2
Customer-Related Positions
Interest rate contracts
Receive fixed/pay floating swaps		Other noninterest income		(16	)		366			(10	)		352
Pay fixed/receive floating swaps		Other noninterest income		19			(376	)		15			(365	)
Foreign exchange rate contracts
Forwards, spots and swaps		Commercial products revenue		13			14			36			41

(a) Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were $(2) million and zero for the three months ended September 30, 2012, respectively, and $(3) million and $117 million for the three months ended September 30, 2011, respectively. Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were $(5) million and $(44) million for the nine months ended September 30, 2012, respectively, and $(27) million and $20 million for the nine months ended September 30, 2011, respectively. The ineffective portion was immaterial for the three and nine months ended September 30, 2012 and 2011.

Derivatives are subject to credit risk associated with counterparties to the derivative contracts. The Company measures that credit risk using a credit valuation adjustment and includes it within the fair value of the derivative. The Company manages counterparty credit risk through diversification of its derivative positions among various counterparties, by entering into master netting agreements and, where possible, by requiring collateral agreements. A master netting agreement allows two counterparties, who have multiple derivative contracts with each other, the ability to net settle amounts under all contracts, including any related collateral posted, through a single payment and in a single currency. Collateral agreements require the counterparty to post, on a daily basis, collateral (typically cash or money market investments) equal to the Company’s net derivative receivable. For highly-rated counterparties, the agreements may include minimum dollar posting thresholds, but allow for the Company to call for immediate, full collateral coverage when credit-rating thresholds are triggered by counterparties.

The Company’s collateral agreements are bilateral and, therefore, contain provisions that require collateralization of the Company’s net liability derivative positions. Required collateral coverage is based on certain net liability thresholds and contingent upon the Company’s credit rating from two of the nationally recognized statistical rating organizations. If the Company’s credit rating were to fall below credit ratings thresholds established in the collateral agreements, the counterparties to the derivatives could request immediate full collateral coverage for derivatives in net liability positions. The aggregate fair value of all derivatives under collateral agreements that were in a net liability position at September 30, 2012, was $1.7 billion. At September 30, 2012, the Company had $1.4 billion of cash posted as collateral against this net liability position.

Note 11 Fair Values of Assets and Liabilities

The Company uses fair value measurements for the initial recording of certain assets and liabilities, periodic remeasurement of certain assets and liabilities, and disclosures. Derivatives, trading and available-for-sale investment securities, certain mortgage loans held for sale (“MLHFS”) and MSRs are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as loans held for sale, loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-fair value accounting or impairment write-downs of individual assets.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market

U. S. Bancorp 63

participants on the measurement date. A fair value measurement reflects all of the assumptions that market participants would use in pricing the asset or liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset, and the risk of nonperformance.

The Company groups its assets and liabilities measured at fair value into a three-level hierarchy for valuation techniques used to measure financial assets and financial liabilities at fair value. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are:

• Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 1 includes U.S. Treasury and exchange-traded instruments.

• Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 includes debt securities that are traded less frequently than exchange-traded instruments and which are typically valued using third party pricing services; derivative contracts and other assets and liabilities, including securities, whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data; and MLHFS whose values are determined using quoted prices for similar assets or pricing models with inputs that are observable in the market or can be corroborated by observable market data.

• Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category includes MSRs, certain debt securities and certain derivative contracts.

When the Company changes its valuation inputs for measuring financial assets and financial liabilities at fair value, either due to changes in current market conditions or other factors, it may need to transfer those assets or liabilities to another level in the hierarchy based on the new inputs used. The Company recognizes these transfers at the end of the reporting period that the transfers occur. During the nine months ended September 30, 2012 and 2011, there were no transfers of financial assets or financial liabilities between the hierarchy levels.

The Company has processes and controls in place to increase the reliability of estimates it makes in determining fair value measurements. Items quoted on an exchange are verified to the quoted price. Items provided by a third party pricing service are subject to price verification procedures as discussed in more detail in the specific valuation discussions provided in the section that follows. For fair value measurements modeled internally, the Company’s valuation models are subject to the Company’s Model Risk Governance Policy and Program, as maintained by the Company’s credit administration department. The purpose of model validation is to assess the accuracy of the models’ input, processing, and reporting components. All models are required to be independently reviewed and approved prior to being placed in use, and are subject to formal change control procedures. Under the Company’s Model Risk Governance Policy, models are required to be reviewed at least annually to ensure they are operating as intended. Inputs into the models are market observable inputs whenever available. When market observable inputs are not available, the inputs are developed based upon analysis of historical experience and evaluation of other relevant market data. Significant unobservable model inputs are subject to review by senior management in corporate functions, who are independent from the modeling. Significant unobservable model inputs are also compared to actual results, typically on a quarterly basis. Significant Level 3 fair value measurements are also subject to corporate-level review and are benchmarked to market transactions or other market data, when available. Additional discussion of processes and controls are provided in the valuation methodologies section that follows.

The following section describes the valuation methodologies used by the Company to measure financial assets and liabilities at fair value and for estimating fair value for financial instruments not recorded at fair value as required under disclosure guidance related to the fair value of financial instruments. In addition, the following section includes an indication of the level of the fair value hierarchy in which the assets or liabilities are classified. Where appropriate, the description includes information about the valuation models and key inputs to those models. During the nine months ended September 30, 2012 and 2011, there were no significant changes to the valuation techniques used by the Company to measure fair value.

Cash and Due From Banks The carrying value of cash and due from banks approximate fair value and are classified within Level 1. Fair value is provided for disclosure purposes only.

64 U. S. Bancorp

Federal Funds Sold and Securities Purchased Under Resale Agreements The carrying value of federal funds sold and securities purchased under resale agreements approximate fair value because of the relatively short time between the origination of the instrument and its expected realization and are classified within Level 2. Fair value is provided for disclosure purposes only.

Investment Securities When quoted market prices for identical securities are available in an active market, these prices are used to determine fair value and these securities are classified within Level 1 of the fair value hierarchy. Level 1 investment securities are predominantly U.S. Treasury securities.

For other securities, quoted market prices may not be readily available for the specific securities. When possible, the Company determines fair value based on market observable information, including quoted market prices for similar securities, inactive transaction prices, and broker quotes. These securities are classified within Level 2 of the fair value hierarchy. Level 2 valuations are generally provided by a third party pricing service. The Company reviews the valuation methodologies utilized by the pricing service and, on a quarterly basis, reviews the security level prices provided by the pricing service against management’s expectation of fair value, based on changes in various benchmarks and market knowledge from recent trading activity. Additionally, each quarter, the Company validates the fair value provided by the pricing services by comparing them to recent observable market trades (where available), broker provided quotes, or other independent secondary pricing sources. Prices obtained from the pricing service are adjusted if they are found to be inconsistent with observable market data. Level 2 investment securities are predominantly agency mortgage-backed securities, certain other asset-backed securities, municipal securities, corporate debt securities, agency debt securities and perpetual preferred securities.

The fair value of securities for which there are no market trades, or where trading is inactive as compared to normal market activity, are classified within Level 3 of the fair value hierarchy. The Company determines the fair value of these securities using a discounted cash flow methodology and incorporating observable market information, where available. These valuations are modeled by a unit within the Company’s treasury department, which is separate from the portfolio management function. The valuations use assumptions regarding housing prices, interest rates and borrower performance. Inputs are refined and updated at least quarterly to reflect market developments and actual performance. The primary valuation drivers of these securities are the prepayment rates, default rates and default severities associated with the underlying collateral, as well as the discount rate used to calculate the present value of the projected cash flows. Level 3 fair values, including the assumptions used, are subject to review by senior management in corporate functions, who are independent from the modeling. The fair value measurements are also compared to fair values provided by third party pricing services, where available. Securities classified within Level 3 include non-agency mortgage-backed securities, non-agency commercial mortgage-backed securities, certain asset-backed securities, certain collateralized debt obligations and collateralized loan obligations, certain corporate debt securities and SIV-related securities.

Certain Mortgage Loans Held For Sale MLHFS measured at fair value, for which an active secondary market and readily available market prices exist, are initially valued at the transaction price and are subsequently valued by comparison to instruments with similar collateral and risk profiles. MLHFS are classified within Level 2. Included in mortgage banking revenue was a $241 million net gain and a $98 million net gain for the three months ended September 30, 2012 and 2011, respectively, and a $501 million net gain and a $38 million net loss for the nine months ended September 30, 2012 and 2011, respectively, from the changes to fair value of these MLHFS under fair value option accounting guidance. Changes in fair value due to instrument specific credit risk were immaterial. Interest income for MLHFS is measured based on contractual interest rates and reported as interest income in the Consolidated Statement of Income. Electing to measure MLHFS at fair value reduces certain timing differences and better matches changes in fair value of these assets with changes in the value of the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting.

Loans The loan portfolio includes adjustable and fixed-rate loans, the fair value of which was estimated using discounted cash flow analyses and other valuation techniques. The expected cash flows of loans considered historical prepayment experiences and estimated credit losses and were discounted using current rates offered to borrowers of similar credit characteristics. Generally, loan fair values reflect Level 3 information. Fair value is provided for disclosure purposes only, with the exception of impaired collateral-based loans that are measured at fair value on a non-recurring basis utilizing the underlying collateral fair value.

U. S. Bancorp 65

Mortgage Servicing Rights MSRs are valued using a discounted cash flow methodology and third party prices, if available. Accordingly, MSRs are classified within Level 3. The Company determines fair value by estimating the present value of the asset’s future cash flows using prepayment rates, discount rates, and other assumptions. The MSR valuations, as well as the assumptions used, are developed by the mortgage banking division and are subject to review by senior management in corporate functions, who are independent from the modeling. The MSR valuations and assumptions are validated through comparison to trade information and industry surveys when available, and are also compared to independent third party valuations each quarter. Risks inherent in MSR valuation include higher than expected prepayment rates and/or delayed receipt of cash flows. There is minimal market activity for MSRs, therefore the determination of fair value requires significant management judgment. Refer to Note 5 for further information on MSR valuation assumptions.

Derivatives The majority of derivatives held by the Company are executed over-the-counter and are valued using standard cash flow, Black-Derman-Toy and Monte Carlo valuation techniques. The models incorporate inputs, depending on the type of derivative, including interest rate curves, foreign exchange rates and volatility. In addition, all derivative values incorporate an assessment of the risk of counterparty nonperformance, measured based on the Company’s evaluation of credit risk as well as external assessments of credit risk, where available. The Company monitors and manages its nonperformance risk by considering its ability to net derivative positions under master netting agreements, as well as collateral received or provided under collateral support agreements. Accordingly, the Company has elected to measure the fair value of derivatives, at a counterparty level, on a net basis. The majority of the derivatives are classified within Level 2 of the fair value hierarchy, as the significant inputs to the models, including nonperformance risk, are observable. However, certain derivative transactions are with counterparties where risk of nonperformance cannot be observed in the market, and therefore the credit valuation adjustments result in these derivatives being classified within Level 3 of the fair value hierarchy. The credit valuation adjustments for nonperformance risk are determined by the Company’s treasury department using credit assumptions provided by credit administration. The credit assumptions are compared to actual results quarterly and are recalibrated as appropriate.

The Company also has commitments to sell, purchase and originate mortgage loans that meet the accounting requirements of a derivative. These mortgage loan commitments are valued by pricing models that include market observable and unobservable inputs, which result in the commitments being classified within Level 3 of the fair value hierarchy. The unobservable inputs include the percentage of commitments that actually become a closed loan and the MSR value that is inherent in the underlying loan value, both of which are developed by the Company’s mortgage banking division. The closed loan percentages for the mortgage loan commitments are monitored on an on-going basis, as these percentages are also used for the Company’s economic hedging activities. The inherent MSR value for the commitments are generated by the same models used for the Company’s MSRs and thus are subject to the same processes and controls as described for the MSRs above.

Other Financial Instruments Other financial instruments include cost method equity investments and community development and tax-advantaged related assets and liabilities. The majority of the Company’s cost method equity investments are in Federal Home Loan Bank and Federal Reserve Bank stock, whose carrying amounts approximate their fair value and are classified within Level 2. Investments in private equity and other limited partnership funds are estimated using fund provided net asset values. These equity investments are classified within Level 3. Fair value is provided for disclosure purposes only.

Community development and tax-advantaged investments generate a return primarily through the realization of federal and state income tax credits, with a duration typically equal to the period that the tax credits are realized. Asset balances primarily represent the assets of the underlying community development and tax-advantaged entities the Company consolidated per applicable authoritative accounting guidance. Liabilities of the underlying consolidated entities were included in long-term debt. The carrying value of the asset balances are a reasonable estimate of fair value and are classified within Level 3. Refer to Note 4 for further information on community development and tax-advantaged related assets and liabilities. Fair value is provided for disclosure purposes only.

Deposit Liabilities The fair value of demand deposits, savings accounts and certain money market deposits is equal to the amount payable on demand. The fair value of fixed-rate certificates of deposit was estimated by discounting the contractual cash flow using current market rates. Deposit liabilities are classified within Level 2. Fair value is provided for disclosure purposes only.

66 U. S. Bancorp

Short-term Borrowings Federal funds purchased, securities sold under agreements to repurchase, commercial paper and other short-term funds borrowed have floating rates or short-term maturities. The fair value of short-term borrowings was determined by discounting contractual cash flows using current market rates. Short-term borrowings are classified within Level 2. Fair value is provided for disclosure purposes only.

Long-term Debt The fair value for most long-term debt was determined by discounting contractual cash flows using current market rates. Junior subordinated debt instruments were valued using market quotes. Long-term debt is classified within Level 2. Fair value is provided for disclosure purposes only.

Loan Commitments, Letters of Credit and Guarantees The fair value of commitments, letters of credit and guarantees represents the estimated costs to terminate or otherwise settle the obligations with a third party. Other loan commitments, letters of credit and guarantees are not actively traded, and the Company estimates their fair value based on the related amount of unamortized deferred commitment fees adjusted for the probable losses for these arrangements. These arrangements are classified within Level 3. Fair value is provided for disclosure purposes only.

Significant Unobservable Inputs of Level 3 Assets and Liabilities

The following section provides information on the significant inputs used by the Company to determine the fair value measurements of Level 3 assets and liabilities recorded at fair value on the consolidated balance sheet. In addition, the following section includes a discussion of the sensitivity of the fair value measurements to changes in the significant inputs and a description of any interrelationships between these inputs for Level 3 assets and liabilities recorded at fair value on a recurring basis. The discussion below excludes nonrecurring fair value measurements of collateral value used for impairment measures for loans and other real estate owned. These valuations utilize third party appraisal or broker price opinions, and are classified as Level 3 due to the significant judgment involved.

Available-For-Sale Investment Securities The significant unobservable inputs used in the fair value measurement of the Company’s modeled Level 3 available-for-sale investment securities are prepayment rates, probability of default and loss severities associated with the underlying collateral, as well as the discount margin used to calculate the present value of the projected cash flows. The majority of the Company’s Level 3 securities were acquired at discounts. Increases in prepayment rates will typically result in higher fair values, as increased prepayment rates accelerate the receipt of expected cash flows and reduce exposure to credit losses. Increases in the probability of default and loss severities will result in lower fair values, as these increases reduce expected cash flows. Discount margin is the Company’s estimate of the current market spread above the respective benchmark rate. Higher discount margin will result in lower fair values, as it reduces the present value of the expected cash flows.

Prepayment rates generally move in the opposite direction of market interest rates. In the current environment, an increase in the probability of default will generally be accompanied with an increase in loss severity, as both are impacted by underlying collateral values. Discount margins are influenced by market expectations about the security’s collateral performance, and therefore may directionally move with probability and severity of default; however, discount margins are also impacted by broader market forces, such as competing investment yields, sector liquidity, economic news, and other macroeconomic factors.

U. S. Bancorp 67

The following table shows the significant valuation assumption ranges for Level 3 available-for-sale investment securities at September 30, 2012:

	Minimum			Maximum			Average
Residential Prime Non-Agency Mortgage-Backed Securities (a)
Estimated lifetime prepayment rates		6	%		20	%		13	%
Lifetime probability of default rates		–			5			3
Lifetime loss severity rates		25			80			42
Discount margin		3			7			5
Residential Non-Prime Non-Agency Mortgage-Backed Securities (b)
Estimated lifetime prepayment rates		2	%		10	%		6	%
Lifetime probability of default rates		3			10			6
Lifetime loss severity rates		20			70			53
Discount margin		3			9			6
Other Asset-Backed Securities
Estimated lifetime prepayment rates		6	%		6	%		6	%
Lifetime probability of default rates		4			4			4
Lifetime loss severity rates		40			40			40
Discount margin		18			18			18

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

Mortgage Servicing Rights The significant unobservable inputs used in the fair value measurement of the Company’s MSRs are expected prepayments and the discount rate used to calculate the present value of the projected cash flows. Significant increases in either of these inputs in isolation would result in a significantly lower fair value measurement. Significant decreases in either of these inputs in isolation would result in a significantly higher fair value measurement. There is no direct interrelationship between prepayments and discount rate. Prepayment rates generally move in the opposite direction of market interest rates. Discount rates are generally impacted by changes in market return requirements.

The following table shows the significant valuation assumption ranges for MSRs at September 30, 2012:

	Minimum			Maximum			Average
Expected prepayment		14	%		35	%		22	%
Discount rate		10			14			10

Derivatives The Company has two distinct Level 3 derivative portfolios: (i) the Company’s commitments to sell, purchase and originate mortgage loans that meet the requirements of a derivative, and (ii) the Company’s asset/liability and customer-related derivatives that are Level 3 due to unobservable inputs related to measurement of risk of nonperformance by the counterparty.

The significant unobservable inputs used in the fair value measurement of the Company’s derivative commitments to sell, purchase and originate mortgage loans are the percentage of commitments that actually become a closed loan and the MSR value that is inherent in the underlying loan value. A significant increase in the rate of loans that close would result in a larger derivative asset or liability. A significant increase in the inherent MSR value would result in an increase in the derivative asset or a reduction in the derivative liability. Expected loan close rates and the inherent MSR values are directly impacted by changes in market rates and will generally move in the same direction as interest rates.

The following table shows the significant valuation assumption ranges for the Company’s derivative commitments to sell, purchase and originate mortgage loans at September 30, 2012:

	Minimum			Maximum			Average
Expected loan close rate		9	%		100	%		73	%
Inherent MSR value (basis points per loan)		10			195			99

The significant unobservable input used in the fair value measurement of certain of the Company’s asset/liability and customer-related derivatives is the credit valuation adjustment related to the risk of counterparty nonperformance. A significant increase in the credit valuation adjustment would result in a lower fair value measurement. A significant decrease in the credit valuation adjustment would result in a higher fair value measurement. The credit valuation adjustment is impacted by changes in the Company’s assessment of the counterparty’s credit position. At September 30, 2012, the minimum, maximum and average credit valuation adjustment as a percentage of the derivative contract fair value prior to adjustment was 0 percent, 97 percent and 6 percent, respectively.

68 U. S. Bancorp

The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis:

(Dollars in Millions)	Level 1		Level 2		Level 3		Netting			Total
September 30, 2012
Available-for-sale securities
U.S. Treasury and agencies	$	504	$	239	$	–	$	–		$	743
Mortgage-backed securities
Residential
Agency		–		29,362		–		–			29,362
Non-agency
Prime (a)		–		–		631		–			631
Non-prime (b)		–		–		340		–			340
Commercial
Agency		–		202		–		–			202
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		–		42		–		–			42
Other		–		582		16		–			598
Obligations of state and political subdivisions		–		6,457		–		–			6,457
Obligations of foreign governments		–		6		–		–			6
Corporate debt securities		–		700		9		–			709
Perpetual preferred securities		–		278		–		–			278
Other investments		256		12		–		–			268
Total available-for-sale		760		37,880		996		–			39,636
Mortgage loans held for sale		–		9,815		–		–			9,815
Mortgage servicing rights		–		–		1,553		–			1,553
Derivative assets		–		637		1,539		(354	)		1,822
Other assets		179		554		–		–			733
Total	$	939	$	48,886	$	4,088	$	(354	)	$	53,559
Derivative liabilities	$	–	$	2,591	$	49	$	(1,687	)	$	953
Other liabilities		39		553		–		–			592
Total	$	39	$	3,144	$	49	$	(1,687	)	$	1,545
December 31, 2011
Available-for-sale securities
U.S. Treasury and agencies	$	562	$	495	$	–	$	–		$	1,057
Mortgage-backed securities
Residential
Agency		–		40,314		–		–			40,314
Non-agency
Prime (a)		–		–		803		–			803
Non-prime (b)		–		–		802		–			802
Commercial
Agency		–		140		–		–			140
Non-agency		–		–		42		–			42
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		–		86		120		–			206
Other		–		564		117		–			681
Obligations of state and political subdivisions		–		6,539		–		–			6,539
Obligations of foreign governments		–		6		–		–			6
Corporate debt securities		–		818		9		–			827
Perpetual preferred securities		–		318		–		–			318
Other investments		193		9		–		–			202
Total available-for-sale		755		49,289		1,893		–			51,937
Mortgage loans held for sale		–		6,925		–		–			6,925
Mortgage servicing rights		–		–		1,519		–			1,519
Derivative assets		–		632		1,281		(294	)		1,619
Other assets		146		467		–		–			613
Total	$	901	$	57,313	$	4,693	$	(294	)	$	62,613
Derivative liabilities	$	–	$	2,501	$	53	$	(1,889	)	$	665
Other liabilities		75		538		–		–			613
Total	$	75	$	3,039	$	53	$	(1,889	)	$	1,278

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

U. S. Bancorp 69

The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended September 30:

(Dollars in Millions)	Beginning of Period Balance		Net Gains (Losses) Included in Net Income			Net Gains (Losses) Included in Other Comprehensive Income (Loss)			Purchases		Sales			Principal Payments			Issuances			Settlements			End of Period Balance		Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period
2012
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	713	$	(4	)	$	23		$	–	$	(61	)	$	(40	)	$	–		$	–		$	631	$	26
Non-prime (b)		796		(8	)		132			–		(562	)		(18	)		–			–			340		23
Commercial non-agency		37		–			2			–		(39	)		–			–			–			–		–
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		102		2			(7	)		–		(96	)		(1	)		–			–			–		–
Other		112		1			(4	)		3		(93	)		(3	)		–			–			16		2
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		1,769		(9	)(c)		146	(f)		3		(851	)		(62	)		–			–			996		51
Mortgage servicing rights		1,594		(275	)(d)		–			10		–			–			224	(g)		–			1,553		(275	)(d)
Net derivative assets and liabilities		1,360		843	(e)		–			1		(1	)		–			–			(713	)		1,490		(557	)(h)
2011
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	896	$	1		$	(2	)	$	–	$	–		$	(36	)	$	–		$	–		$	859	$	(2	)
Non-prime (b)		895		(2	)		(5	)		–		–			(31	)		–			–			857		(5	)
Commercial non-agency		50		1			(1	)		–		(4	)		(1	)		–			–			45		–
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		133		3			(2	)		–		–			(9	)		–			–			125		(2	)
Other		129		1			(4	)		–		–			(6	)		–			–			120		(4	)
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		2,112		4	(i)		(14	)(f)		–		(4	)		(83	)		–			–			2,015		(13	)
Mortgage servicing rights		1,989		(629	)(d)		–			5		–			–			101	(g)		–			1,466		(629	)(d)
Net derivative assets and liabilities		836		836	(j)		–			–		(2	)		–			–			(340	)		1,330		77	(k)

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

(c) Approximately $(15) million included in securities gains (losses) and $6 million included in interest income.

(d) Included in mortgage banking revenue.

(e) Approximately $124 million included in other noninterest income and $719 million included in mortgage banking revenue.

(f) Included in changes in unrealized gains and losses on securities available-for-sale.

(g) Represents MSRs capitalized during the period.

(h) Approximately $7 million included in other noninterest income and $(564) million included in mortgage banking revenue.

(i) Approximately $(9) million included in other securities gains (losses) and $13 million included in interest income.

(j) Approximately $445 million included in other noninterest income and $391 million included in mortgage banking revenue.

(k) Approximately $317 million included in other noninterest income and $(240) million included in mortgage banking revenue.

70 U. S. Bancorp

The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30:

(Dollars in Millions)	Beginning of Period Balance		Net Gains (Losses) Included in Net Income			Net Gains (Losses) Included in Other Comprehensive Income (Loss)			Purchases		Sales			Principal Payments			Issuances			Settlements			End of Period Balance		Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period
2012
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	803	$	(5	)	$	60		$	–	$	(109	)	$	(118	)	$	–		$	–		$	631	$	58
Non-prime (b)		802		(18	)		197			–		(562	)		(79	)		–			–			340		52
Commercial non-agency		42		1			–			–		(39	)		(4	)		–			–			–		–
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		120		12			(8	)		–		(103	)		(21	)		–			–			–		–
Other		117		7			–			3		(93	)		(18	)		–			–			16		2
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		1,893		(3	)(c)		249	(f)		3		(906	)		(240	)		–			–			996		112
Mortgage servicing rights		1,519		(705	)(d)		–			39		–			–			700	(g)		–			1,553		(705	)(d)
Net derivative assets and liabilities		1,228		2,050	(e)		–			1		(3)			–			–			(1,786	)		1,490		(1,407	)(h)
2011
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	1,103	$	4		$	22		$	–	$	(115	)	$	(155	)	$	–		$	–		$	859	$	14
Non-prime (b)		947		(4	)		27			–		(12	)		(101	)		–			–			857		26
Commercial non-agency		50		2			(1	)		–		(4	)		(2	)		–			–			45		–
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		135		10			6			–		–			(26	)		–			–			125		7
Other		133		8			(2	)		–		–			(19	)		–			–			120		(2	)
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		2,377		20	(i)		52	(f)		–		(131	)		(303	)		–			–			2,015		45
Mortgage servicing rights		1,837		(803	)(d)		–			16		–			–			416	(g)		–			1,466		(803	)(d)
Net derivative assets and liabilities		851		1,252	(j)		–			–		(5	)		–			–			(768	)		1,330		(92	)(k)

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

(c) Approximately $(37) million included in securities gains (losses) and $34 million included in interest income.

(d) Included in mortgage banking revenue.

(e) Approximately $344 million included in other noninterest income and $1.7 billion included in mortgage banking revenue.

(f) Included in changes in unrealized gains and losses on securities available-for-sale.

(g) Represents MSRs capitalized during the period.

(h) Approximately $6 million included in other noninterest income and $1.4 billion included in mortgage banking revenue.

(i) Approximately $(24) million included in securities gains (losses) and $44 million included in interest income.

(j) Approximately $672 million included in other noninterest income and $580 million included in mortgage banking revenue.

(k) Approximately $303 million included in other noninterest income and $(395) million included in mortgage banking revenue.

U. S. Bancorp 71

The Company is also required periodically to measure certain other financial assets at fair value on a nonrecurring basis. These measurements of fair value usually result from the application of lower-of-cost-or-fair value accounting or write-downs of individual assets.

The following table summarizes the adjusted carrying values and the level of valuation assumptions for assets measured at fair value on a nonrecurring basis:

	September 30, 2012								December 31, 2011
(Dollars in Millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Loans (a)	$	–	$	–	$	138	$	138	$	–	$	–	$	168	$	168
Other assets (b)		–		–		204		204		–		–		310		310

(a) Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off.

(b) Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition.

The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or portfolios:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in Millions)	2012		2011		2012		2011
Loans (a)	$	12	$	32	$	51	$	153
Other assets (b)		42		81		129		230

(a) Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off.

(b) Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.

Fair Value Option

The following table summarizes the differences between the aggregate fair value carrying amount of MLHFS for which the fair value option has been elected and the aggregate unpaid principal amount that the Company is contractually obligated to receive at maturity:

	September 30, 2012							December 31, 2011
(Dollars in Millions)	Fair Value Carrying Amount		Aggregate Unpaid Principal		Carrying Amount Over (Under) Unpaid Principal			Fair Value Carrying Amount		Aggregate Unpaid Principal		Carrying Amount Over (Under) Unpaid Principal
Total loans	$	9,815	$	9,215	$	600		$	6,925	$	6,635	$	290
Nonaccrual loans		8		13		(5	)		10		15		(5	)
Loans 90 days or more past due		2		3		(1	)		3		4		(1	)

Disclosures about Fair Value of Financial Instruments

The following table summarizes the estimated fair value for financial instruments as of September 30, 2012 and December 31, 2011, and includes financial instruments that are not accounted for at fair value. In accordance with disclosure guidance related to fair values of financial instruments, the Company did not include assets and liabilities that are not financial instruments, such as the value of goodwill, long-term relationships with deposit, credit card, merchant processing and trust customers, other purchased intangibles, premises and equipment, deferred taxes and other liabilities. Additionally, in accordance with the disclosure guidance, insurance contracts and investments accounted for under the equity method are excluded.

72 U. S. Bancorp

The estimated fair values of the Company’s financial instruments are shown in the table below:

	September 30, 2012										December 31, 2011
	Carrying Amount		Fair Value								Carrying Amount		Fair Value
(Dollars in Millions)			Level 1		Level 2		Level 3		Total
Financial Assets
Cash and due from banks	$	9,382	$	9,382	$	–	$	–	$	9,382	$	13,962	$	13,962
Federal funds sold and securities purchased under resale agreements		166		–		166		–		166		64		64
Investment securities held-to-maturity		34,509		2,441		32,719		66		35,226		18,877		19,216
Mortgages held for sale (a)		–		–		–		–		–		3		3
Other loans held for sale		64		–		–		64		64		228		228
Loans		213,669		–		–		216,105		216,105		205,082		206,646
Other financial instruments		6,991		–		1,246		5,771		7,017		6,095		6,140
Financial Liabilities
Deposits		244,232		–		244,690		–		244,690		230,885		231,184
Short-term borrowings		27,853		–		27,885		–		27,885		30,468		30,448
Long-term debt		26,264		–		27,264		–		27,264		31,953		32,664

(a) Balance excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected.

The fair value of unfunded commitments, standby letters of credit and other guarantees is approximately equal to their carrying value. The carrying value of unfunded commitments and standby letters of credit was $393 million and $381 million at September 30, 2012 and December 31, 2011, respectively. The carrying value of other guarantees was $423 million and $359 million at September 30, 2012 and December 31, 2011, respectively.

Note 12 Guarantees and Contingent Liabilities

Visa Restructuring and Card Association Litigation The Company’s payment services business issues and acquires credit and debit card transactions through the Visa U.S.A. Inc. card association or its affiliates (collectively “Visa”). In 2007, Visa completed a restructuring and issued shares of Visa Inc. common stock to its financial institution members in contemplation of its initial public offering (“IPO”) completed in the first quarter of 2008 (the “Visa Reorganization”). As a part of the Visa Reorganization, the Company received its proportionate number of shares of Visa Inc. common stock, which were subsequently converted to Class B shares of Visa Inc. (“Class B shares”). Visa U.S.A. Inc. (“Visa U.S.A.”) and MasterCard International (collectively, the “Card Associations”), are defendants in antitrust lawsuits challenging the practices of the Card Associations (the “Visa Litigation”). Visa U.S.A. member banks have a contingent obligation to indemnify Visa Inc. under the Visa U.S.A. bylaws (which were modified at the time of the restructuring in October 2007) for potential losses arising from the Visa Litigation. The indemnification by the Visa U.S.A. member banks has no specific maximum amount.

Using proceeds from its IPO and through reductions to the conversion ratio applicable to the Class B shares held by Visa U.S.A. member banks, Visa Inc. has funded an escrow account for the benefit of member financial institutions to fund their indemnification obligations associated with the Visa Litigation. The receivable related to the escrow account is classified in other liabilities as a direct offset to the related Visa Litigation contingent liability. On July 13, 2012, Visa signed a memorandum of understanding to enter into a settlement agreement to resolve class action claims associated with the multi-district interchange litigation (the “MOU agreement”), the largest of the remaining Visa Litigation matters. The MOU agreement has not yet been approved by the court, is not yet binding, and may be challenged by some class members. At September 30, 2012, the carrying amount of the Company’s liability related to the Visa Litigation matters, net of its share of the escrow fundings, was $65 million and included the Company’s estimate of its share of the temporary reduction in interchange rates specified in the MOU agreement. The remaining Class B shares held by the Company will be eligible for conversion to Class A shares, and thereby become marketable, upon settlement of the Visa Litigation. These shares are excluded from the Company’s financial instruments disclosures included in Note 11.

U. S. Bancorp 73

The following table is a summary of other guarantees and contingent liabilities of the Company at September 30, 2012:

(Dollars in Millions)	Collateral Held		Carrying Amount		Maximum Potential Future Payments
Standby letters of credit	$	—	$	81	$	18,323
Third-party borrowing arrangements		—		—		299
Securities lending indemnifications		8,982		—		8,737
Asset sales		—		305		2,710	(a)
Merchant processing		772		80		81,280
Contingent consideration arrangements		—		3		6
Tender option bond program guarantee		5,329		—		5,047
Minimum revenue guarantees		—		17		31
Other		—		18		3,436

(a) The maximum potential future payments do not include loan sales where the Company provides standard representation and warranties to the buyer against losses related to loan underwriting documentation defects that may have existed at the time of sale that generally are identified after the occurrence of a triggering event such as delinquency. For these types of loan sales, the maximum potential future payments is generally the unpaid principal balance of loans sold measured at the end of the current reporting period. Actual losses will be significantly less than the maximum exposure, as only a fraction of loans sold will have a representation and warranty breach, and any losses on repurchase would generally be mitigated by any collateral held against the loans.

Merchant Processing The Company, through its subsidiaries, provides merchant processing services. Under the rules of credit card associations, a merchant processor retains a contingent liability for credit card transactions processed. This contingent liability arises in the event of a billing dispute between the merchant and a cardholder that is ultimately resolved in the cardholder’s favor. In this situation, the transaction is “charged-back” to the merchant and the disputed amount is credited or otherwise refunded to the cardholder. If the Company is unable to collect this amount from the merchant, it bears the loss for the amount of the refund paid to the cardholder.

The Company currently processes card transactions in the United States, Canada and Europe for airline companies. In the event of liquidation of these merchants, the Company could become financially liable for refunding tickets purchased through the credit card associations under the charge-back provisions. Charge-back risk related to these merchants is evaluated in a manner similar to credit risk assessments and, as such, merchant processing contracts contain various provisions to protect the Company in the event of default. At September 30, 2012, the value of airline tickets purchased to be delivered at a future date was $5.9 billion. The Company held collateral of $610 million in escrow deposits, letters of credit and indemnities from financial institutions, and liens on various assets.

Asset Sales The Company regularly sells loans to GSEs as part of its mortgage banking activities. The Company provides customary representation and warranties to the GSEs in conjunction with these sales. These representations and warranties generally require the Company to repurchase assets if it is subsequently determined that a loan did not meet specified criteria, such as a documentation deficiency or rescission of mortgage insurance. If the Company is unable to cure or refute a repurchase request, the Company is generally obligated to repurchase the loan or otherwise reimburse the counterparty for losses. At September 30, 2012, the Company had reserved $220 million for potential losses from representation and warranty obligations, compared with $160 million at December 31, 2011. The $60 million increase was primarily the result of the GSEs increasing the number of loans selected for repurchase review. The Company’s reserve reflects management’s best estimate of losses for representation and warranty obligations. The Company’s reserving methodology uses current information about investor repurchase requests, and assumptions about defect rate, concur rate, repurchase mix, and loss severity, based upon the Company’s most recent loss trends. The Company also considers qualitative factors that may result in anticipated losses differing from historical loss trends, such as loan vintage, underwriting characteristics and macroeconomic trends.

The following table is a rollforward of the Company’s representation and warranty reserve:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	216		$	173		$	160		$	180
Net realized losses		(32	)		(31	)		(88	)		(106	)
Additions to reserve		36			20			148			88
Balance at end of period	$	220		$	162		$	220		$	162

As of September 30, 2012 and December 31, 2011, the Company had $118 million and $105 million, respectively, of unresolved representation and warranty claims from the GSEs. The Company does not have a significant amount of unresolved claims from investors other than the GSEs.

74 U. S. Bancorp

Checking Account Overdraft Fee Litigation The Company is a defendant in three separate cases primarily challenging the Company’s daily ordering of debit transactions posted to customer checking accounts for the period from 2003 to 2010. On July 2, 2012, the Company reached a settlement in principle with the lead plaintiffs for these cases, subject to final documentation and court approvals. The settlement will provide for a payment by the Company of $55 million, which was previously accrued, in exchange for a release of claims asserted against the Company in these matters.

Mortgage-Related Actions and Investigations During the second quarter of 2011, the Company and its two primary banking subsidiaries entered into Consent Orders with U.S. federal banking regulators regarding the Company’s residential mortgage servicing and foreclosure processes. The banking regulators have notified the Company of civil money penalties related to the Consent Orders; however, these penalties are not significant.

Other federal and state governmental authorities have reached a settlement agreement with five major financial institutions regarding their mortgage origination, servicing, and foreclosure activities. Those governmental authorities contacted other financial institutions, including the Company, to discuss their potential participation in a settlement. The Company has not agreed to any settlement at this point; however, if a settlement were reached it would likely include an agreement to comply with specified servicing standards, and settlement payments to governmental authorities as well as a monetary commitment that could be satisfied under various loan modification programs (in addition to the programs the Company already has in place). The Company has accrued $130 million with respect to these and related matters.

The Company is currently subject to other investigations and examinations by government agencies concerning mortgage-related practices, including those related to Federal Housing Administration insured residential home loans.

Other The Company is subject to various other litigation, investigations and legal and administrative cases and proceedings that arise in the ordinary course of its businesses. Due to their complex nature, it may be years before some matters are resolved. While it is impossible to ascertain the ultimate resolution or range of financial liability with respect to these contingent matters, the Company believes that the aggregate amount of such liabilities will not have a material adverse effect on the financial condition, results of operations or cash flows of the Company.

For additional information on the nature of the Company’s guarantees and contingent liabilities, refer to Note 22 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

Note 13 Subsequent Events

The Company has evaluated the impact of events that have occurred subsequent to September 30, 2012 through the date the consolidated financial statements were filed with the United States Securities and Exchange Commission. Based on this evaluation, the Company has determined none of these events were required to be recognized or disclosed in the consolidated financial statements and related notes.

U. S. Bancorp 75

U.S. Bancorp

Consolidated Daily Average Balance Sheet and Related Yields and Rates (a)

	For the Three Months Ended September 30,
	2012								2011
(Dollars in Millions) (Unaudited)	Average Balances			Interest		Yields and Rates			Average Balances			Interest		Yields and Rates			% Change Average Balances
Assets
Investment securities	$	72,454		$	475		2.62	%	$	66,252		$	511		3.08	%		9.4	%
Loans held for sale		8,432			76		3.59			3,946			42		4.17			*
Loans (b)
Commercial		62,192			546		3.50			52,344			521		3.96			18.8
Commercial real estate		36,630			413		4.49			35,569			414		4.62			3.0
Residential mortgages		40,969			464		4.52			34,026			408		4.79			20.4
Credit card		16,551			425		10.22			16,057			389		9.60			3.1
Other retail		47,991			621		5.15			48,380			671		5.51			(.8	)
Total loans, excluding covered loans		204,333			2,469		4.81			186,376			2,403		5.12			9.6
Covered loans		12,595			201		6.36			15,793			235		5.91			(20.2	)
Total loans		216,928			2,670		4.90			202,169			2,638		5.19			7.3
Other earning assets		11,145			63		2.24			13,902			67		1.92			(19.8	)
Total earning assets		308,959			3,284		4.24			286,269			3,258		4.53			7.9
Allowance for loan losses		(4,584	)							(5,079	)							9.7
Unrealized gain (loss) on investment securities		1,184								470								*
Other assets		40,094								39,921								.4
Total assets	$	345,653							$	321,581								7.5
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits	$	68,127							$	58,606								16.2	%
Interest-bearing deposits
Interest checking		43,207			8		.07			41,042			14		.14			5.3
Money market savings		47,530			18		.15			44,623			16		.14			6.5
Savings accounts		29,743			17		.22			27,042			26		.38			10.0
Time certificates of deposit less than $100,000		14,362			60		1.67			15,251			74		1.92			(5.8	)
Time deposits greater than $100,000		36,312			69		.76			28,805			72		.99			26.1
Total interest-bearing deposits		171,154			172		.40			156,763			202		.51			9.2
Short-term borrowings		27,843			103		1.49			30,597			143		1.86			(9.0	)
Long-term debt		27,112			226		3.33			31,609			289		3.64			(14.2	)
Total interest-bearing liabilities		226,109			501		.88			218,969			634		1.15			3.3
Other liabilities		11,624								9,961								16.7
Shareholders’ equity
Preferred equity		4,769								2,606								83.0
Common equity		33,850								30,481								11.1
Total U.S. Bancorp shareholders’ equity		38,619								33,087								16.7
Noncontrolling interests		1,174								958								22.5
Total equity		39,793								34,045								16.9
Total liabilities and equity	$	345,653							$	321,581								7.5
Net interest income				$	2,783							$	2,624
Gross interest margin							3.36	%							3.38	%
Gross interest margin without taxable-equivalent increments							3.29	%							3.30	%
Percent of Earning Assets
Interest income							4.24	%							4.53	%
Interest expense							.65								.88
Net interest margin							3.59	%							3.65	%
Net interest margin without taxable-equivalent increments							3.52	%							3.57	%

* Not meaningful

(a) Interest and rates are presented on a fully taxable-equivalent basis utilizing a tax rate of 35 percent.

(b) Interest income and rates on loans include loan fees. Nonaccrual loans are included in average loan balances.

76 U. S. Bancorp

U.S. Bancorp

Consolidated Daily Average Balance Sheet and Related Yields and Rates (a)

	For the Nine Months Ended September 30,
	2012								2011
(Dollars in Millions) (Unaudited)	Average Balances			Interest		Yields and Rates			Average Balances			Interest		Yields and Rates			% Change Average Balances
Assets
Investment securities	$	72,371		$	1,487		2.74	%	$	61,907		$	1,479		3.19	%		16.9	%
Loans held for sale		7,557			208		3.67			4,382			139		4.22			72.5
Loans (b)
Commercial		59,790			1,620		3.62			50,383			1,539		4.08			18.7
Commercial real estate		36,389			1,228		4.51			35,417			1,210		4.57			2.7
Residential mortgages		39,328			1,357		4.60			32,854			1,201		4.88			19.7
Credit card		16,675			1,267		10.15			16,022			1,141		9.52			4.1
Other retail		47,940			1,873		5.22			48,154			1,992		5.53			(.4	)
Total loans, excluding covered loans		200,122			7,345		4.90			182,830			7,083		5.18			9.5
Covered loans		13,609			633		6.21			16,703			704		5.63			(18.5	)
Total loans		213,731			7,978		4.98			199,533			7,787		5.22			7.1
Other earning assets		10,610			185		2.32			13,483			187		1.85			(21.3	)
Total earning assets		304,269			9,858		4.33			279,305			9,592		4.59			8.9
Allowance for loan losses		(4,677	)							(5,275	)							11.3
Unrealized gain (loss) on investment securities		1,000								137								*
Other assets		40,215								39,912								.8
Total assets	$	340,807							$	314,079								8.5
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits	$	65,423							$	50,558								29.4	%
Interest-bearing deposits
Interest checking		45,522			37		.11			42,335			50		.16			7.5
Money market savings		45,977			44		.13			45,091			62		.18			2.0
Savings accounts		29,383			53		.24			26,304			89		.45			11.7
Time certificates of deposit less than $100,000		14,695			191		1.73			15,294			219		1.92			(3.9	)
Time deposits greater than $100,000		31,978			205		.86			30,153			226		1.00			6.1
Total interest-bearing deposits		167,555			530		.42			159,177			646		.54			5.3
Short-term borrowings		28,942			356		1.65			30,597			411		1.80			(5.4	)
Long-term debt		29,388			786		3.57			31,786			860		3.62			(7.5	)
Total interest-bearing liabilities		225,885			1,672		.99			221,560			1,917		1.16			2.0
Other liabilities		11,305								9,377								20.6
Shareholders’ equity
Preferred equity		4,250								2,349								80.9
Common equity		32,855								29,350								11.9
Total U.S. Bancorp shareholders’ equity		37,105								31,699								17.1
Noncontrolling interests		1,089								885								23.1
Total equity		38,194								32,584								17.2
Total liabilities and equity	$	340,807							$	314,079								8.5
Net interest income				$	8,186							$	7,675
Gross interest margin							3.34	%							3.43	%
Gross interest margin without taxable-equivalent increments							3.27	%							3.35	%
Percent of Earning Assets
Interest income							4.33	%							4.59	%
Interest expense							.74								.92
Net interest margin							3.59	%							3.67	%
Net interest margin without taxable-equivalent increments							3.52	%							3.59	%

* Not meaningful

(a) Interest and rates are presented on a fully taxable-equivalent basis utilizing a tax rate of 35 percent.

(b) Interest income and rates on loans include loan fees. Nonaccrual loans are included in average loan balances.

U. S. Bancorp 77

Part II — Other Information

Item 1A. Risk Factors — There are a number of factors that may adversely affect the Company’s business, financial results or stock price. Refer to “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, for discussion of these risks.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds — Refer to the “Capital Management” section within Management’s Discussion and Analysis in Part I for information regarding shares repurchased by the Company during the third quarter of 2012.

Item 6. Exhibits

10.1	Form of 2012 Restricted Stock Award Agreement under U.S Bancorp Amended and Restated 2007 Stock Incentive Plan
12	Computation of Ratio of Earnings to Fixed Charges
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. section 1350 as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002
101	Financial statements from the Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2012, formatted in Extensible Business Reporting Language: (i) the Consolidated Balance Sheet, (ii) the Consolidated Statement of Income, (iii) the Consolidated Statement of Comprehensive Income, (iv) the Consolidated Statement of Shareholders’ Equity, (v) the Consolidated Statement of Cash Flows and (vi) the Notes to Consolidated Financial Statements.

78 U. S. Bancorp

SIGNATURE

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, thereunto duly authorized.

	U.S. BANCORP
	By:	/S/    CRAIG E. GIFFORD
		Craig E. Gifford
		Controller
DATE: November 5, 2012		(Principal Accounting Officer and Duly Authorized Officer)

U. S. Bancorp 79

Exhibit 12

Computation of Ratio of Earnings to Fixed Charges

(Dollars in Millions)	Three Months Ended September 30, 2012		Nine Months Ended September 30, 2012
Earnings
1. Net income attributable to U.S. Bancorp	$	1,474	$	4,227
2. Applicable income taxes, including expense related to unrecognized tax positions		593		1,684
3. Net income attributable to U.S. Bancorp before income taxes (1 + 2)	$	2,067	$	5,911
4. Fixed charges:
a. Interest expense excluding interest on deposits*	$	329	$	1,139
b. Portion of rents representative of interest and amortization of debt expense		25		77
c. Fixed charges excluding interest on deposits (4a + 4b)		354		1,216
d. Interest on deposits		172		530
e. Fixed charges including interest on deposits (4c + 4d)	$	526	$	1,746
5. Amortization of interest capitalized	$	–	$	–
6. Earnings excluding interest on deposits (3 + 4c + 5)		2,421		7,127
7. Earnings including interest on deposits (3 + 4e + 5)		2,593		7,657
8. Fixed charges excluding interest on deposits (4c)		354		1,216
9. Fixed charges including interest on deposits (4e)		526		1,746
Ratio of Earnings to Fixed Charges
10. Excluding interest on deposits (line 6/line 8)		6.84		5.86
11. Including interest on deposits (line 7/line 9)		4.93		4.39

* Excludes interest expense related to unrecognized tax positions

80 U. S. Bancorp

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, Richard K. Davis, certify that:

(1) I have reviewed this Quarterly Report on Form 10-Q of U.S. Bancorp;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/S/    RICHARD K. DAVIS

Richard K. Davis

Chief Executive Officer

Dated: November 5, 2012

U. S. Bancorp 81

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, Andrew Cecere, certify that:

(1) I have reviewed this Quarterly Report on Form 10-Q of U.S. Bancorp;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/S/    ANDREW CECERE

Andrew Cecere

Chief Financial Officer

Dated: November 5, 2012

82 U. S. Bancorp

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Chief Executive Officer and Chief Financial Officer of U.S. Bancorp, a Delaware corporation (the “Company”), do hereby certify that:

(1) The Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/    RICHARD K. DAVIS	/S/    ANDREW CECERE
Richard K. Davis	Andrew Cecere
Chief Executive Officer	Chief Financial Officer

Dated: November 5, 2012

U. S. Bancorp 83

First Class

U.S. Postage

PAID

Permit No. 2440

Minneapolis, MN    

Corporate Information

Executive Offices

U.S. Bancorp

800 Nicollet Mall

Minneapolis, MN 55402

Common Stock Transfer Agent and Registrar

Computershare Investor Services acts as our transfer agent and registrar, dividend paying agent and dividend reinvestment plan administrator, and maintains all shareholder records for the corporation. Inquiries related to shareholder records, stock transfers, changes of ownership, lost stock certificates, changes of address and dividend payment should be directed to the transfer agent at:

Computershare Investor Services

P.O. Box 358015

Pittsburgh, PA 15252-8015

Phone: 888-778-1311 or 201-680-6578 (international calls)

Internet: bnymellon.com/shareowner

For Registered or Certified Mail:

Computershare Investor Services

500 Ross St., 6th Floor

Pittsburgh, PA 15219

Telephone representatives are available weekdays from 8:00 a.m. to 6:00 p.m. Central Time, and automated support is available 24 hours a day, 7 days a week. Specific information about your account is available on Computershare’s internet site by clicking on the Investor ServiceDirect^® link.

Independent Auditor

Ernst & Young LLP serves as the independent auditor for

U.S. Bancorp’s financial statements.

Common Stock Listing and Trading

U.S. Bancorp common stock is listed and traded on the New York Stock Exchange under the ticker symbol USB.

Dividends and Reinvestment Plan

U.S. Bancorp currently pays quarterly dividends on our common stock on or about the 15th day of January, April, July and October, subject to approval by our Board of Directors. U.S. Bancorp shareholders can choose to participate in a plan that provides automatic reinvestment of dividends and/or optional cash purchase of additional shares of U.S. Bancorp common stock. For more information, please contact our transfer agent, Computershare Investor Services.

Investor Relations Contacts

Judith T. Murphy

Executive Vice President, Corporate Investor and Public Relations

judith.murphy@usbank.com

Phone: 612-303-0783 or 866-775-9668

Financial Information

U.S. Bancorp news and financial results are available through our website and by mail.

Website For information about U.S. Bancorp, including news, financial results, annual reports and other documents filed with the Securities and Exchange Commission, access our home page on the internet at usbank.com, click on About U.S. Bank.

Mail At your request, we will mail to you our quarterly earnings, news releases, quarterly financial data reported on Form 10-Q and additional copies of our annual reports. Please contact:

U.S. Bancorp Investor Relations

800 Nicollet Mall

Minneapolis, MN 55402

investorrelations@usbank.com

Phone: 866-775-9668

Media Requests

Thomas J. Joyce

Senior Vice President, Corporate Public Relations

thomas.joyce@usbank.com

Phone: 612-303-3167

Privacy

U.S. Bancorp is committed to respecting the privacy of our customers and safeguarding the financial and personal information provided to us. To learn more about the U.S. Bancorp commitment to protecting privacy, visit usbank.com and click on Privacy Pledge.

Code of Ethics

U.S. Bancorp places the highest importance on honesty and integrity. Each year, every U.S. Bancorp employee certifies compliance with the letter and spirit of our Code of Ethics and Business Conduct, the guiding ethical standards of our organization. For details about our Code of Ethics and Business Conduct, visit usbank.com and click on About U.S. Bank.

Diversity

U.S. Bancorp and our subsidiaries are committed to developing and maintaining a workplace that reflects the diversity of the communities we serve. We support a work environment where individual differences are valued and respected and where each individual who shares the fundamental values of the Company has an opportunity to contribute and grow based on individual merit.

Equal Employment Opportunity/Affirmative Action

U.S. Bancorp and our subsidiaries are committed to providing Equal Employment Opportunity to all employees and applicants for employment. In keeping with this commitment, employment decisions are made based upon performance, skill and abilities, not race, color, religion, national origin or ancestry, gender, age, disability, veteran status, sexual orientation or any other factors protected by law. The corporation complies with municipal, state and federal fair employment laws, including regulations applying to federal contractors.

U.S. Bancorp, including each of our subsidiaries, is an Equal Opportunity Employer committed to creating a diverse workforce.

U.S. Bancorp Member FDIC

This report has been produced on recycled paper.

EX-10.1

EXHIBIT 10.1

NOTE: Restricted stock awards made to employees (“Participants”) of U.S. Bancorp (the “Company”) on and after January 1, 2012 will have the terms and conditions set forth in each Participant’s award summary (the “Award Summary”), which can be accessed on the Morgan Stanley Smith Barney Benefit Access Website at www.benefitaccess.com (or the website of any other stock plan administrator selected by the Company in the future). The Award Summary may be viewed at any time on this Website, and the Award Summary may also be printed out. In addition to the individual terms and conditions set forth in the Award Summary, each restricted stock award will have the terms and conditions set forth in the form of Restricted Stock Award Agreement below. As a condition of each restricted stock award, Participant accepts the terms and conditions of the Award Summary and the Restricted Stock Award Agreement.

U.S. BANCORP

RESTRICTED STOCK AWARD AGREEMENT

THIS AGREEMENT sets forth the terms and conditions of a restricted stock award of Common Stock (the “Common Stock”), par value $0.01 per share, of the Company granted to each Participant by the Company pursuant to its Amended and Restated 2007 Stock Incentive Plan, which was approved by shareholders on April 20, 2010 (the “Plan”).

The Company and Participant agree as follows:

1. Award

Subject to the terms and conditions of this Agreement, the Company grants to Participant a restricted stock award of the number of shares of the Company’s Common Stock (the “Shares”) set forth in Participant’s Award Summary. The date of grant of such award (the “Grant Date”) is also set forth in Participant’s Award Summary.

2. Vesting

(a) Subject to the terms and conditions of this Agreement, the Shares shall vest as set forth in Participant’s Award Summary.

(b) Notwithstanding the vesting provision contained in Section 2(a) above, but subject to the other terms and conditions of this Agreement, if Participant has been continuously employed by the Company or any Affiliate of the Company until the date of a Qualifying Termination (as defined below), immediately upon such Qualifying Termination, Participant shall be vested in all of the Shares granted in this Agreement. For purposes of this Agreement, the following terms shall have the following definitions:

(i) “Affiliate” shall be defined as defined in Rule 12b-2 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

(ii) “Announcement Date” shall mean the date of the public announcement of the transaction, event or course of action that results in a Change in Control.

(iii) “Cause” shall mean (A) the continued failure by Participant to substantially perform Participant’s duties with the Company or any Affiliate (other than any such failure resulting from Participant’s Disability (as defined in Section 5(b)), after a demand for substantial performance is delivered to Participant that specifically identifies the manner in which the Company believes that Participant has not substantially performed Participant’s duties, and Participant has failed to resume substantial performance of Participant’s duties on a continuous basis, (B) gross and willful misconduct during the course of employment (regardless of whether the misconduct occurs on the Company’s premises), including, without limitation, theft, assault, battery, malicious destruction of property, arson, sabotage, embezzlement, harassment, acts or omissions which violate the Company’s rules or policies (such as breaches of confidentiality), or other conduct which demonstrates a willful or reckless disregard of the interests of the Company or its Affiliates or (C) Participant’s conviction of a crime (including, without limitation, a misdemeanor offense) which impairs Participant’s ability substantially to perform Participant’s duties with the Company.

(iv) “Change in Control” shall mean any of the following occurring after the date of this Agreement:

(A) The acquisition by any Person (as defined in Section 2(b)(vi)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 35% or more of either (1) the then

outstanding shares of Common Stock (the “Outstanding Company Common Stock”) or (2) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this clause (A), the following acquisitions shall not constitute a Change in Control: (i) any acquisition directly from the Company, (ii) any acquisition by the Company, (iii) any acquisition by a subsidiary of the Company or any employee benefit plan (or related trust) sponsored or maintained by the Company or a subsidiary of the Company (a “Company Entity”) or (iv) any acquisition by any corporation pursuant to a transaction which complies with clause (i), (ii) or (iii) of this clause (A); or

(B) Individuals who, as of the Grant Date, constitute the Company’s Board of Directors (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors (except as a result of the death, retirement or disability of one or more members of the Incumbent Board); provided, however, that any individual becoming a director subsequent to the date of this Agreement whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, (1) any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Incumbent Board, (2) any director designated by or on behalf of a Person who has entered into an agreement with the Company (or which is contemplating entering into an agreement) to effect a Business Combination (as defined in Section 2(b)(iv)(C)) with one or more entities that are not Company Entities or (3) any director who serves in connection with the act of the Board of Directors of increasing the number of directors and filling vacancies in connection with, or in contemplation of, any such Business Combination; or

(C) Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case, unless, following such Business Combination, (1) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock or the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (2) no Person (excluding any Company Entity or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 35% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination and (3) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board of Directors, providing for such Business Combination; or

(D) Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company.

(v) “Notice of Termination” shall mean a written notice which sets forth the date of termination of Participant’s employment.

(vi) “Person” shall be defined as defined in Sections 13(d)(3) and 14(d)(2) of the Exchange Act.

(vii) “Qualifying Termination” shall mean a termination of Participant’s employment with the Company or its Affiliates by the Company for any reason other than Cause within 12 months following a Change in Control;

provided, however, that any such termination shall not be a Qualifying Termination if Participant has been notified in writing more than 30 days prior to the Announcement Date that Participant’s employment with the Company is not expected to continue for more than 12 months following the date of such notification; provided that such exclusion from Qualifying Termination shall only apply if Participant’s employment with the Company is terminated within such 12 month period; and provided, further, that any such termination shall not be a Qualifying Termination if Participant has announced in writing, prior to the date the Company provides Notice of Termination to Participant, the intention to terminate employment, subject to the condition that any such termination by the Company prior to Participant’s stated termination date shall be deemed to be termination by Participant on such stated date unless termination by the Company is for Participant’s gross and willful misconduct.

(c) Notwithstanding the provisions contained in Section 2(a) and Section 2(b) of this Agreement, if an accounting firm selected by the Company determines that the vesting of all or any of the Shares, when added to any other payment or benefit received or to be received by Participant in connection with a “change in control” of the Company, as determined pursuant to Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) (collectively, the “Total Payments”), would not be deductible (in whole or in part) solely as a result of Section 280G of the Code or would be subject to the excise tax provided for in Section 4999 of the Code (the imposition of Section 280G or 4999 of the Code, collectively, the “Tax Penalty”), then the vesting of all or any of the Shares shall not be accelerated, and no such vesting shall take place, until all of the Total Payments are deductible and not subject to the excise tax provided for in Section 4999 of the Code or until the vesting of none of the Shares is accelerated; provided, however, that Participant may, at Participant’s election and subject to such terms and conditions as the Company may establish, choose to have the Shares vest and instead have the Company reduce other payments or benefits otherwise to be received by Participant in connection with the change in control or other transaction giving rise to the acceleration of the vesting of the Shares until none of the Total Payments are subject to the Tax Penalty. Notwithstanding the foregoing, Participant shall not be permitted to elect to reduce other payments in order to permit accelerated vesting of the these Shares if: (i) such other payments are subject to Code Section 409A; and (ii) such reduction would result in an impermissible deferral or a substitution pursuant to Treasury Regulations 1.409A-3(f), or would violate any other provisions under Code Section 409A.

(i) In the event that it is subsequently determined that some or all of Participant’s Total Payments are not deductible solely as a result of Section 280G of the Code or are subject to the excise tax provided for in Section 4999 of the Code, the difference between the Total Payments and three times Participant’s “base amount” (as that term is defined in Section 280G of the Code) shall be treated, to the extent permitted by applicable law, as a loan by the Company, payable on demand by the Company, with interest at a rate equal to 120% of the applicable federal rate determined under Section 1274(d) of the Code, compounded semiannually.

(ii) For purposes of this Section 2(c), all computations and determinations under the Code shall be determined by the Company with the assistance of the accounting firm selected by the Company.

3. Special Vesting Condition

(a) Vesting condition. Notwithstanding the provisions of Participant’s Award Summary, if it shall be determined at any time subsequent to the Grant Date that Participant has, during the year in which the Grant Date occurs (the “Grant Year”), (i) failed to comply with Company policies and procedures, including the Code of Ethics and Business Conduct, (ii) violated any law or regulation, (iii) engaged in negligent or willful misconduct, or (iv) engaged in activity resulting in a significant or material Sarbanes-Oxley control deficiency, and such failure, violation, misconduct or activity (A) demonstrates an inadequate sensitivity to the inherent risks of Participant’s business line or functional area, and (B) results in, or is reasonably likely to result in, a material adverse impact (whether financial or reputational) on the Company or Participant’s business line or functional area, all or part of the Shares that have not yet become vested at the time of such determination may be cancelled and thus would not vest on the dates indicated in the Award Summary. “Inadequate sensitivity” to risk is demonstrated by imprudent activities that subject the Company to risk outcomes in future periods, including risks that may

not be apparent at the time the activities are undertaken. The manner in which such determination is made, and the extent of any such cancellation of the unvested Shares, shall be in accordance with the provisions of Section 3(b) below.

(b) Procedures. Prior to each anniversary of the Grant Date (until the all of the Shares have become vested, or have otherwise been cancelled or forfeited), Participant’s manager shall take the following steps: (i) the manager will determine whether any of the events described in clauses (i) through (iv) in paragraph (a) above have occurred; (ii) in the event one or more such events have occurred, the manager will determine whether such event has the effect described in subclause (B) in paragraph (a) above; and (iii) if the manager has determined that such event has the effect described in subclause (B) in paragraph (a) above, the manager will further determine whether Participant’s actions were of the nature described in subclause (A) of paragraph (a) above. In making this latter determination, the manager will look to all relevant factors, including Participant’s position and authority, and Participant’s performance against company and business line policies (for example, credit, market and operational risk policies, as applicable) the Company’s Code of Ethics and Business Conduct, and applicable regulatory, legal and compliance guidelines and audit findings. In making such determination, the manager will use a written risk scorecard, in the form developed for this purpose and as revised from time to time. In the event the manager determines that all of the conditions in clauses (b)(i),(ii) and (iii) of this subsection 3(b) exist, the manager shall then determine the number, if any, of any unvested Shares that is recommended to become ineligible to become vested and to be cancelled. If the manager recommends cancellation of any of the unvested Shares, the recommendation will be reviewed by the Incentive Review Committee. Any determination of the Incentive Review Committee shall be deemed conclusive and final and not subject to review or challenge by Participant. If the Incentive Review Committee determines that any unvested Shares will be ineligible to become vested and that such Shares shall be cancelled, Participant will no longer have any rights relating to the Shares, including the right to vote the Shares and the right to receive cash dividends. The normal vesting date in the year of such determination (as set forth in the Award Summary) shall be suspended until the conclusion of these procedures.

4. Restriction on Transfer

Until the Shares vest pursuant to Section 2 or 5 of this Agreement, none of the Shares may be pledged, alienated, attached or otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance shall be void and unenforceable against the Company. No attempt to transfer the Shares, whether voluntary or involuntary, by operation of law or otherwise, shall vest the purported transferee with any interest or right in or with respect to the Shares.

5. Forfeiture; Early Vesting

(a) If Participant ceases to be an employee of the Company or any Affiliate prior to vesting of the Shares pursuant to Section 2(a) or Section 2(b), all of Participant’s rights to all of the unvested Shares shall be immediately and irrevocably forfeited, except that if Participant ceases to be an employee by reason of death or Disability prior to the vesting of Shares under Section 2(a) or Section 2(b), Participant or his or her estate shall become immediately vested, as of the date of death or the date of termination of employment due to Disability, in all previously unvested Shares; provided however, that in the case of a termination due to Disability, accelerated vesting shall occur only if Participant has at all times following termination of employment, complied with the terms of such Confidentiality and Nonsolicitation Agreement. Upon forfeiture, Participant will no longer have any rights relating to the Shares, including the right to vote the Shares and the right to receive cash dividends.

(b) For purposes of this Agreement, “Disability” means leaving active employment and qualifying for and receiving disability benefits under the Company’s long-term disability programs as in effect from time to time.

6. Issuance and Custody of Shares

(a) The Company shall cause the Shares to be evidenced in book entry form on the books and records of its shareholders maintained by the Company and its stock transfer agent. The Participant shall not have access to any unvested Shares. Such Shares are subject to forfeiture, are not transferable and remain subject to the restrictions, terms and conditions contained in the Plan and this Agreement.

(b) After any Shares vest pursuant to Section 2 or 5 of this Agreement, the Company shall promptly release the restriction on the Shares and authorize the stock transfer agent to issue them to Participant or Participant’s legal representatives, beneficiaries or heirs, as the case may be.

7. Securities Law Compliance

The delivery of all or any of the Shares shall only be effective at such time that the issuance of such Shares will not violate any state or federal securities or other laws. The Company is under no obligation to effect any registration of the Shares under the Securities Act of 1933 or to effect any state registration or qualification of the Shares. The Company may, in its sole discretion, delay the delivery of the Shares or place restrictive legends on such Shares in order to ensure that the issuance of any Shares will be in compliance with federal or state securities laws and the rules of the New York Stock Exchange or any other exchange upon which the Company’s Common Stock is traded.

8. Distributions and Adjustments

(a) In the event that any dividend or other distribution (whether in the form of cash, shares of Common Stock, or other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Common Stock or other securities of the Company or other similar corporate transaction or event affecting the Shares would be reasonably likely to result in the diminution or enlargement of any of the benefits or potential benefits intended to be made available pursuant to this Agreement (including, without limitation, the benefits or potential benefits of provisions relating to the vesting of the Shares and any “change in control” provision), the committee of the Board of Directors administering the Plan (the “Committee”) shall, in order to prevent such diminution or enlargement of any such benefits or potential benefits, make adjustments to the award, including adjustments in the number and type of Shares that Participant would have received; provided, however, that the number of shares covered by the award shall always be a whole number.

(b) Any additional shares of Common Stock, any other securities of the Company and any other property (except for cash dividends) distributed with respect to the Shares prior to the date the Shares vest shall be subject to the same restrictions, terms and conditions as the Shares. Any cash dividends payable with respect to the Shares shall be distributed to Participant at the same time cash dividends are distributed to shareholders of the Company generally.

(c) Any additional shares of Common Stock, any securities and any other property (except for cash dividends) distributed with respect to the Shares prior to the date such Shares vest shall be promptly deposited with the Secretary or a custodian designated by the Secretary to be held in custody in accordance with Section 6(a) hereof.

9. Income Tax Withholding

In order to comply with all applicable federal or state income tax laws or regulations, the Company may take such action as it deems appropriate to ensure that all applicable federal or state payroll, withholding, income or other taxes, which are the sole and absolute responsibility of Participant, are withheld or collected from Participant. Participant may satisfy any applicable tax withholding obligations arising from the receipt of, or lapse of restrictions relating to, the Shares by check payable to the Company. In addition, Participant may, at Participant’s election, satisfy such obligations by electing to have the Company withhold a portion of the Shares otherwise to be delivered with a Fair Market Value (as such term is defined in the Plan) equal to the amount of such taxes. The election must be made on or before the date that the amount of tax to be withheld is determined.

10. Miscellaneous

(a) This Agreement is issued pursuant to the Plan and is subject to its terms. The Plan is available for inspection during business hours at the principal office of the Company. In addition, the Plan may be viewed on the U.S. Bancorp Intranet Website in the Human Resources, Compensation section of such website.

(b) This Agreement shall not confer on Participant any right with respect to continuance of employment with the Company or any Affiliate, nor will it interfere in any way with the right of the Company or any Affiliate to terminate such employment at any time.

(c) Until the Shares shall have been issued to Participant as provided in this Agreement, Participant shall have the rights to receive cash dividends and vote the Shares, but shall have no other rights of a shareholder with respect to the Shares. Participant shall have all of the rights of a shareholder with respect to the Shares after issuance thereof.

11. Venue

Any claim or action brought with respect to this Award shall be brought in a federal or state court located in Minneapolis, Minnesota.

2012 Form of Restricted Stock Award Agreement for employees who have previously executed a confidentiality and nonsolicitation agreement.

EX-12

Exhibit 12

Computation of Ratio of Earnings to Fixed Charges

(Dollars in Millions)	Three Months Ended September 30, 2012		Nine Months Ended September 30, 2012
Earnings
1. Net income attributable to U.S. Bancorp	$	1,474	$	4,227
2. Applicable income taxes, including expense related to unrecognized tax positions		593		1,684
3. Net income attributable to U.S. Bancorp before income taxes (1 + 2)	$	2,067	$	5,911
4. Fixed charges:
a. Interest expense excluding interest on deposits*	$	329	$	1,139
b. Portion of rents representative of interest and amortization of debt expense		25		77
c. Fixed charges excluding interest on deposits (4a + 4b)		354		1,216
d. Interest on deposits		172		530
e. Fixed charges including interest on deposits (4c + 4d)	$	526	$	1,746
5. Amortization of interest capitalized	$	–	$	–
6. Earnings excluding interest on deposits (3 + 4c + 5)		2,421		7,127
7. Earnings including interest on deposits (3 + 4e + 5)		2,593		7,657
8. Fixed charges excluding interest on deposits (4c)		354		1,216
9. Fixed charges including interest on deposits (4e)		526		1,746
Ratio of Earnings to Fixed Charges
10. Excluding interest on deposits (line 6/line 8)		6.84		5.86
11. Including interest on deposits (line 7/line 9)		4.93		4.39

* Excludes interest expense related to unrecognized tax positions

80 U. S. Bancorp

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, Richard K. Davis, certify that:

(1) I have reviewed this Quarterly Report on Form 10-Q of U.S. Bancorp;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/S/    RICHARD K. DAVIS

Richard K. Davis

Chief Executive Officer

Dated: November 5, 2012

U. S. Bancorp 81

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, Andrew Cecere, certify that:

(1) I have reviewed this Quarterly Report on Form 10-Q of U.S. Bancorp;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/S/    ANDREW CECERE

Andrew Cecere

Chief Financial Officer

Dated: November 5, 2012

82 U. S. Bancorp

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Chief Executive Officer and Chief Financial Officer of U.S. Bancorp, a Delaware corporation (the “Company”), do hereby certify that:

(1) The Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/    RICHARD K. DAVIS	/S/    ANDREW CECERE
Richard K. Davis	Andrew Cecere
Chief Executive Officer	Chief Financial Officer

Dated: November 5, 2012

U. S. Bancorp 83

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Amount of Interest Income from Taxable and Non-Taxable Investment Securities (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Taxable	$ 369	$ 394	$ 1,166	$ 1,127
Non-taxable	69	76	210	230
Total interest income from investment securities	$ 438	$ 470	$ 1,376	$ 1,357

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Additional Information on Impaired Loans (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	$ 7,639	$ 7,179	$ 7,752	$ 6,236
Interest Income Recognized	85	56	227	157
Commercial Loan
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	413	536	496	529
Interest Income Recognized	6	4	11	7
Commercial Real Estate
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	1,250	1,558	1,371	1,519
Interest Income Recognized	12	6	29	10
Residential Mortgage
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	2,752	2,573	2,692	2,540
Interest Income Recognized	31	24	87	74
Credit Card
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	495	492	529	471
Interest Income Recognized	6	4	22	10
Other Retail
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	354	165	259	160
Interest Income Recognized	3	1	7	3
Total loans, excluding GNMA and covered loans
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	5,264	5,324	5,347	5,219
Interest Income Recognized	58	39	156	104
Loans purchased from GNMA
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	1,492	710	1,363	433
Interest Income Recognized	20	10	51	19
Covered loans
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	883	1,145	1,042	584
Interest Income Recognized	$ 7	$ 7	$ 20	$ 34

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Changes in Accretable Balance for Purchased Impaired Loans (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2012		Sep. 30, 2011		Sep. 30, 2012		Sep. 30, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	$ 2,431		$ 3,015		$ 2,619		$ 2,890
Purchases					13		100
Accretion	(109)		(110)		(337)		(337)
Disposals	(37)		(43)		(135)		(47)
Reclassifications (to)/from nonaccretable difference (a)	58	[1]	(170)	[1]	191	[1]	117	[1]
Other	(14)		(7)		(22)		(38)
Balance at end of period	$ 2,329		$ 2,685		$ 2,329		$ 2,685

[1] Primarily relates to changes in expected credit performance.

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Reconciliation of Expected Income Tax Expense at Federal Statutory Rate of 35% to Company's Applicable Income Tax Expense (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Tax at statutory rate	$ 709	$ 610	$ 2,030	$ 1,671
State income tax, at statutory rates, net of federal tax benefit	53	53	157	114
Tax effect of
Tax credits, net of related expenses	(120)	(124)	(322)	(319)
Tax-exempt income	(55)	(57)	(165)	(170)
Noncontrolling interests	15	8	39	22
Other items	(9)		(55)	(4)
Applicable income taxes	$ 593	$ 490	$ 1,684	$ 1,314

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Loans Modified as TDRs (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012 SecurityLoan	Sep. 30, 2011 SecurityLoan	Sep. 30, 2012 SecurityLoan	Sep. 30, 2011 SecurityLoan
Financing Receivable, Modifications [Line Items]
Number of Loans	29,834	20,075	63,784	57,840
Pre-Modification Outstanding Loan Balance	$ 1,409	$ 900	$ 2,905	$ 3,321
Post-Modification Outstanding Loan Balance	1,332	883	2,817	3,312
Commercial Loan
Financing Receivable, Modifications [Line Items]
Number of Loans	1,754	1,137	4,081	3,984
Pre-Modification Outstanding Loan Balance	54	89	215	337
Post-Modification Outstanding Loan Balance	58	74	195	310
Commercial Real Estate
Financing Receivable, Modifications [Line Items]
Number of Loans	63	115	245	380
Pre-Modification Outstanding Loan Balance	91	124	416	906
Post-Modification Outstanding Loan Balance	80	115	390	896
Residential Mortgage
Financing Receivable, Modifications [Line Items]
Number of Loans	2,717	748	3,788	2,571
Pre-Modification Outstanding Loan Balance	344	155	529	515
Post-Modification Outstanding Loan Balance	336	156	517	512
Credit Card
Financing Receivable, Modifications [Line Items]
Number of Loans	14,137	14,942	39,040	41,610
Pre-Modification Outstanding Loan Balance	52	78	189	239
Post-Modification Outstanding Loan Balance	67	77	203	238
Other Retail
Financing Receivable, Modifications [Line Items]
Number of Loans	6,231	956	8,028	3,020
Pre-Modification Outstanding Loan Balance	159	15	194	55
Post-Modification Outstanding Loan Balance	156	16	191	55
Total loans, excluding GNMA and covered loans
Financing Receivable, Modifications [Line Items]
Number of Loans	24,902	17,898	55,182	51,565
Pre-Modification Outstanding Loan Balance	700	461	1,543	2,052
Post-Modification Outstanding Loan Balance	697	438	1,496	2,011
Loans purchased from GNMA
Financing Receivable, Modifications [Line Items]
Number of Loans	4,859	2,110	8,436	6,042
Pre-Modification Outstanding Loan Balance	660	291	1,116	813
Post-Modification Outstanding Loan Balance	589	312	1,087	871
Covered loans
Financing Receivable, Modifications [Line Items]
Number of Loans	73	67	166	233
Pre-Modification Outstanding Loan Balance	49	148	246	456
Post-Modification Outstanding Loan Balance	$ 46	$ 133	$ 234	$ 430

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Valuation Assumption Ranges for MSRs (Detail)	Sep. 30, 2012	Dec. 31, 2011
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Expected prepayment	22.20%	21.30%
Discount rate	10.40%	10.40%
Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Expected prepayment	14.00%
Discount rate	10.00%
Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Expected prepayment	35.00%
Discount rate	14.00%
Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Expected prepayment	22.00%
Discount rate	10.00%

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Composition of Loan Portfolio (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
Commercial	$ 57,415	$ 50,734
Lease financing	5,495	5,914
Total commercial	62,910	56,648
Commercial real estate
Commercial mortgages	30,831	29,664
Construction and development	5,982	6,187
Total commercial real estate	36,813	35,851
Residential mortgages	31,504	28,669
Home equity loans, first liens	10,398	8,413
Total residential mortgages	41,902	37,082
Credit card	16,402	17,360
Retail leasing	5,332	5,118
Home equity and second mortgages	17,119	18,131
Revolving credit	3,320	3,344
Installment	5,474	5,348
Automobile	12,431	11,508
Student	4,289	4,658
Total other retail	47,965	48,107
Total loans, excluding covered loans	205,992	195,048
Covered loans	12,158	14,787
Total loans	$ 218,150	$ 209,835
Commercial, Percentage	26.30%	24.20%
Lease financing, Percentage	2.50%	2.80%
Total commercial, Percentage	28.80%	27.00%
Commercial mortgages, Percentage	14.10%	14.10%
Construction and development, Percentage	2.80%	3.00%
Total commercial real estate, Percentage	16.90%	17.10%
Residential mortgages, Percentage	14.40%	13.70%
Home equity loans, first liens, Percentage	4.80%	4.00%
Total residential mortgages, Percentage	19.20%	17.70%
Credit card, Percentage	7.50%	8.30%
Retail leasing, Percentage	2.40%	2.40%
Home equity and second mortgages, Percentage	7.90%	8.60%
Revolving Credit, Percentage	1.50%	1.60%
Installment, Percentage	2.50%	2.60%
Automobile, Percentage	5.70%	5.50%
Student, Percentage	2.00%	2.20%
Total other retail, Percentage	22.00%	22.90%
Total loans, excluding covered loans, Percentage	94.40%	93.00%
Covered loans, Percentage	5.60%	7.00%
Total loans, Percentage	100.00%	100.00%

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Investment Securities (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2012 Y		Dec. 31, 2011
Investment Securities [Line Items]
Held-to-maturity securities, total, weighted average yield	2.06%	[1],[2]
Held-to-maturity securities, total, amortized cost	$ 34,509	[2],[3]	$ 18,877	[3]
Total investment securities amortized cost	73,029		70,233
Total investment securities, percentage	100.00%		100.00%
Held-to-maturity securities, total, weighted average maturity in years	3.1
Available-for-sale securities, total, weighted average yield	3.04%	[1],[2]
Fair Value	35,226	[2],[3]	19,216	[3]
Held-to-maturity securities, total, fair value	35,226		19,216
Available-for-sale securities, total, weighted average maturity in years	4.0	[2]
Available-for-sale securities, total, fair value	39,636	[2]
Available-for-sale securities, total, amortized cost	38,520	[2]
U.S. Treasury and Agencies
Investment Securities [Line Items]
Held-to-maturity securities, maturing in one year or less, weighted average yield	0.61%	[1]
Held-to-maturity securities, maturing after one year through five years, weighted average yield	1.00%	[1]
Held-to-maturity securities, maturing after ten years, weighted average yield	1.96%	[1]
Held-to-maturity securities, total, weighted average yield	1.01%	[1]
Held-to-maturity securities, maturing in one year or less, weighted average maturity years	0.3
Total investment securities amortized cost	3,285		3,605
Held-to-maturity securities, maturing after one year through five years, weighted average maturity in years	1.4
Available-for-sale securities, maturing in one year or less, weighted average yield	2.57%	[1]
Total investment securities, percentage	4.50%		5.10%
Available for sale securities, maturing after one year through five years weighted average yield	0.84%	[1]
Held-to-maturity securities, maturing after ten years, weighted average maturity in years	12.4
Available-for-sale securities, maturing after five years through ten years, weighted average yield	3.11%	[1]
Held-to-maturity securities, total, weighted average maturity in years	1.7
Available-for-sale securities, maturing after ten years, weighted average yield	2.89%	[1]
Held-to-maturity securities, maturities within one year, fair value	50
Available-for-sale securities, total, weighted average yield	1.51%	[1]
Held to maturity securities, maturities after one year through five years, fair value	2,473
Held-to-maturity securities, maturities after ten years, fair value	60
Fair Value	2,583
Held-to-maturity securities, maturities within one year, amortized cost	50
Held-to-maturity securities, maturities after one year through five years, amortized cost	2,447
Held-to-maturity securities, maturities after ten years, amortized cost	60
Held-to-maturity securities, total, amortized cost	2,557
Available-for-sale securities, maturing in one year or less, weighted average maturity in years	0.5
Available-for-sale securities, maturing after one year through five years, weighted average maturity in years	1.3
Available-for-sale securities, maturing after five years through ten years, weighted average maturity in years	7.5
Available-for-sale securities, maturing after ten years, weighted average maturity in years	10.9
Available-for-sale securities, total, weighted average maturity in years	2.6
Available-for-sale, securities maturing within one year, fair value	73
Available-for-sale, securities maturing after one through five year, fair value	501
Available-for-sale, securities maturing after five through ten year, fair value	158
Available-for-sale, securities maturing after ten years, fair value	11
Available-for-sale securities, total, fair value	743
Available-for-sale, securities maturing within one year, amortized cost	72
Available-for-sale, securities maturing after one through five year, amortized cost	497
Available-for-sale, securities maturing after five through ten year, amortized cost	149
Available-for-sale, securities maturing after ten years, amortized cost	10
Available-for-sale securities, total, amortized cost	728
Mortgage-Backed Securities
Investment Securities [Line Items]
Held-to-maturity securities, maturing in one year or less, weighted average yield	1.52%	[1],[4]
Held-to-maturity securities, maturing after one year through five years, weighted average yield	2.17%	[1],[4]
Held-to-maturity securities, maturing after five year through ten years, weighted average yield	1.50%	[1],[4]
Held-to-maturity securities, maturing after ten years, weighted average yield	1.22%	[1],[4]
Held-to-maturity securities, total, weighted average yield	2.14%	[1],[3]
Held-to-maturity securities, maturing in one year or less, weighted average maturity years	0.7	[4]
Total investment securities amortized cost	61,531		57,561
Held-to-maturity securities, maturing after one year through five years, weighted average maturity in years	3.1	[4]
Available-for-sale securities, maturing in one year or less, weighted average yield	1.58%	[1],[4]
Total investment securities, percentage	84.20%		82.00%
Held to maturity securities, maturing after five year through ten years, weighted average maturity in years	7.4	[4]
Available for sale securities, maturing after one year through five years weighted average yield	2.46%	[1],[4]
Held-to-maturity securities, maturing after ten years, weighted average maturity in years	10.4	[4]
Available-for-sale securities, maturing after five years through ten years, weighted average yield	2.26%	[1],[4]
Held-to-maturity securities, total, weighted average maturity in years	3.2	[4]
Available-for-sale securities, maturing after ten years, weighted average yield	1.49%	[1],[4]
Held-to-maturity securities, maturities within one year, fair value	396	[4]
Available-for-sale securities, total, weighted average yield	2.34%	[1],[4]
Held to maturity securities, maturities after one year through five years, fair value	31,260	[4]
Held-to-maturity securities, maturities after five year through ten years, fair value	758	[4]
Held-to-maturity securities, maturities after ten years, fair value	60	[4]
Fair Value	32,474	[4]
Held-to-maturity securities, maturities within one year, amortized cost	395	[4]
Held-to-maturity securities, maturities after one year through five years, amortized cost	30,583	[4]
Held-to-maturity securities, maturities after five years through ten years, amortized cost	740	[4]
Held-to-maturity securities, maturities after ten years, amortized cost	59	[4]
Held-to-maturity securities, total, amortized cost	31,777	[4]
Available-for-sale securities, maturing in one year or less, weighted average maturity in years	0.6	[4]
Available-for-sale securities, maturing after one year through five years, weighted average maturity in years	3.0	[4]
Available-for-sale securities, maturing after five years through ten years, weighted average maturity in years	6.4	[4]
Available-for-sale securities, maturing after ten years, weighted average maturity in years	12.5	[4]
Available-for-sale securities, total, weighted average maturity in years	3.2	[4]
Available-for-sale, securities maturing within one year, fair value	3,315	[4]
Available-for-sale, securities maturing after one through five year, fair value	23,876	[4]
Available-for-sale, securities maturing after five through ten year, fair value	3,045	[4]
Available-for-sale, securities maturing after ten years, fair value	299	[4]
Available-for-sale securities, total, fair value	30,535	[4]
Available-for-sale, securities maturing within one year, amortized cost	3,312	[4]
Available-for-sale, securities maturing after one through five year, amortized cost	23,074	[4]
Available-for-sale, securities maturing after five through ten year, amortized cost	3,074	[4]
Available-for-sale, securities maturing after ten years, amortized cost	294	[4]
Available-for-sale securities, total, amortized cost	29,754	[4]
Asset-Backed Securities
Investment Securities [Line Items]
Held-to-maturity securities, maturing in one year or less, weighted average yield	1.22%	[1],[4]
Held-to-maturity securities, maturing after one year through five years, weighted average yield	0.65%	[1],[4]
Held-to-maturity securities, maturing after five year through ten years, weighted average yield	0.73%	[1],[4]
Held-to-maturity securities, maturing after ten years, weighted average yield	0.86%	[1],[4]
Held-to-maturity securities, total, weighted average yield	0.75%	[1],[4]
Held-to-maturity securities, maturing in one year or less, weighted average maturity years	0.5	[4]
Total investment securities amortized cost	646		949
Held-to-maturity securities, maturing after one year through five years, weighted average maturity in years	3.5	[4]
Available-for-sale securities, maturing in one year or less, weighted average yield	0.24%	[1],[4]
Total investment securities, percentage	0.90%		1.40%
Held to maturity securities, maturing after five year through ten years, weighted average maturity in years	6.6	[4]
Available for sale securities, maturing after one year through five years weighted average yield	6.36%	[1],[4]
Held-to-maturity securities, maturing after ten years, weighted average maturity in years	22.6	[4]
Available-for-sale securities, maturing after five years through ten years, weighted average yield	2.48%	[1],[4]
Held-to-maturity securities, total, weighted average maturity in years	10.5	[4]
Available-for-sale securities, maturing after ten years, weighted average yield	5.88%	[1],[4]
Held-to-maturity securities, maturities within one year, fair value	4	[4]
Available-for-sale securities, total, weighted average yield	2.68%	[1],[4]
Held to maturity securities, maturities after one year through five years, fair value	9	[4]
Held-to-maturity securities, maturities after five year through ten years, fair value	9	[4]
Held-to-maturity securities, maturities after ten years, fair value	18	[4]
Fair Value	40	[4]
Held-to-maturity securities, maturities after one year through five years, amortized cost	11	[4]
Held-to-maturity securities, maturities after five years through ten years, amortized cost	8	[4]
Held-to-maturity securities, maturities after ten years, amortized cost	9	[4]
Held-to-maturity securities, total, amortized cost	28	[4]
Available-for-sale securities, maturing after one year through five years, weighted average maturity in years	3.2	[4]
Available-for-sale securities, maturing after five years through ten years, weighted average maturity in years	7.6	[4]
Available-for-sale securities, maturing after ten years, weighted average maturity in years	18.8	[4]
Available-for-sale securities, total, weighted average maturity in years	7.3	[4]
Available-for-sale, securities maturing within one year, fair value	9	[4]
Available-for-sale, securities maturing after one through five year, fair value	46	[4]
Available-for-sale, securities maturing after five through ten year, fair value	585	[4]
Available-for-sale securities, total, fair value	640	[4]
Available-for-sale, securities maturing within one year, amortized cost	8	[4]
Available-for-sale, securities maturing after one through five year, amortized cost	36	[4]
Available-for-sale, securities maturing after five through ten year, amortized cost	574	[4]
Available-for-sale securities, total, amortized cost	618	[4]
Obligations of state and political subdivisions
Investment Securities [Line Items]
Held-to-maturity securities, maturing in one year or less, weighted average yield	8.16%	[1],[5],[6]
Held-to-maturity securities, maturing after one year through five years, weighted average yield	7.31%	[1],[5],[6]
Held-to-maturity securities, maturing after five year through ten years, weighted average yield	7.79%	[1],[5],[6]
Held-to-maturity securities, maturing after ten years, weighted average yield	5.42%	[1],[5],[6]
Held-to-maturity securities, total, weighted average yield	6.13%	[1],[5],[6]
Held-to-maturity securities, maturing in one year or less, weighted average maturity years	0.7	[5],[6]
Total investment securities amortized cost	6,106		6,417
Held-to-maturity securities, maturing after one year through five years, weighted average maturity in years	3.2	[5],[6]
Available-for-sale securities, maturing in one year or less, weighted average yield	2.65%	[1],[5],[6]
Total investment securities, percentage	8.40%		9.10%
Held to maturity securities, maturing after five year through ten years, weighted average maturity in years	7.9	[5],[6]
Available for sale securities, maturing after one year through five years weighted average yield	6.79%	[1],[5],[6]
Held-to-maturity securities, maturing after ten years, weighted average maturity in years	14.6	[5],[6]
Available-for-sale securities, maturing after five years through ten years, weighted average yield	6.20%	[1],[5],[6]
Held-to-maturity securities, total, weighted average maturity in years	10.9	[5],[6]
Available-for-sale securities, maturing after ten years, weighted average yield	15.83%	[1],[5],[6]
Available-for-sale securities, total, weighted average yield	6.68%	[1],[5],[6]
Held to maturity securities, maturities after one year through five years, fair value	6	[5],[6]
Held-to-maturity securities, maturities after five year through ten years, fair value	2	[5],[6]
Held-to-maturity securities, maturities after ten years, fair value	14	[5],[6]
Fair Value	22	[5],[6]
Held-to-maturity securities, maturities after one year through five years, amortized cost	6	[5],[6]
Held-to-maturity securities, maturities after five years through ten years, amortized cost	1	[5],[6]
Held-to-maturity securities, maturities after ten years, amortized cost	14	[5],[6]
Held-to-maturity securities, total, amortized cost	21	[5],[6]
Available-for-sale securities, maturing in one year or less, weighted average maturity in years	0.1	[5],[6]
Available-for-sale securities, maturing after one year through five years, weighted average maturity in years	3.8	[5],[6]
Available-for-sale securities, maturing after five years through ten years, weighted average maturity in years	7.1	[5],[6]
Available-for-sale securities, maturing after ten years, weighted average maturity in years	17.2	[5],[6]
Available-for-sale securities, total, weighted average maturity in years	4.2	[5],[6]
Available-for-sale, securities maturing within one year, fair value	82	[5],[6]
Available-for-sale, securities maturing after one through five year, fair value	5,550	[5],[6]
Available-for-sale, securities maturing after five through ten year, fair value	812	[5],[6]
Available-for-sale, securities maturing after ten years, fair value	13	[5],[6]
Available-for-sale securities, total, fair value	6,457	[5],[6]
Available-for-sale, securities maturing within one year, amortized cost	81	[5],[6]
Available-for-sale, securities maturing after one through five year, amortized cost	5,226	[5],[6]
Available-for-sale, securities maturing after five through ten year, amortized cost	765	[5],[6]
Available-for-sale, securities maturing after ten years, amortized cost	13	[5],[6]
Available-for-sale securities, total, amortized cost	6,085	[5],[6]
Other debt securities and obligations of foreign government
Investment Securities [Line Items]
Held-to-maturity securities, maturing in one year or less, weighted average yield	1.14%	[1]
Held-to-maturity securities, maturing after one year through five years, weighted average yield	1.30%	[1]
Held-to-maturity securities, maturing after five year through ten years, weighted average yield	1.18%	[1]
Held-to-maturity securities, total, weighted average yield	1.27%	[1]
Held-to-maturity securities, maturing in one year or less, weighted average maturity years	0.5
Total investment securities amortized cost	1,461		1,701
Held-to-maturity securities, maturing after one year through five years, weighted average maturity in years	3.5
Available-for-sale securities, maturing in one year or less, weighted average yield	1.00%	[1]
Total investment securities, percentage	2.00%		2.40%
Held to maturity securities, maturing after five year through ten years, weighted average maturity in years	8.1
Held-to-maturity securities, total, weighted average maturity in years	4.4
Available-for-sale securities, maturing after ten years, weighted average yield	3.21%	[1]
Held-to-maturity securities, maturities within one year, fair value	2
Available-for-sale securities, total, weighted average yield	3.19%	[1]
Held to maturity securities, maturities after one year through five years, fair value	91
Held-to-maturity securities, maturities after five year through ten years, fair value	14
Fair Value	107
Held-to-maturity securities, maturities within one year, amortized cost	3
Held-to-maturity securities, maturities after one year through five years, amortized cost	94
Held-to-maturity securities, maturities after five years through ten years, amortized cost	29
Held-to-maturity securities, total, amortized cost	126
Available-for-sale securities, maturing in one year or less, weighted average maturity in years	0.2
Available-for-sale securities, maturing after ten years, weighted average maturity in years	25.3
Available-for-sale securities, total, weighted average maturity in years	25.1
Available-for-sale, securities maturing within one year, fair value	6
Available-for-sale, securities maturing after ten years, fair value	709
Available-for-sale securities, total, fair value	715
Available-for-sale, securities maturing within one year, amortized cost	6
Available-for-sale, securities maturing after ten years, amortized cost	813
Available-for-sale securities, total, amortized cost	819
Other Investments Including Perpetual Preferred Securities
Investment Securities [Line Items]
Available-for-sale securities, total, weighted average yield	2.97%	[1]
Held-to-maturity securities, total, fair value
Available-for-sale securities, total, weighted average maturity in years	15.8
Available-for-sale securities, total, fair value	546
Available-for-sale securities, total, amortized cost	$ 516

[1] Average yields are presented on a fully-taxable equivalent basis under a tax rate of 35 percent. Yields on available-for-sale and held-to-maturity investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity.

[2] The weighted-average maturity of the available-for-sale investment securities was 5.2 years at December 31, 2011, with a corresponding weighted-average yield of 3.19 percent. The weighted-average maturity of the held-to-maturity investment securities was 3.9 years at December 31, 2011, with a corresponding weighted-average yield of 2.21 percent.

[3] Held-to-maturity investment securities are carried at historical cost or at fair value at the time of transfer from the available-for-sale to held-to-maturity category, adjusted for amortization of premiums and accretion of discounts and credit-related other-than-temporary impairment.

[4] Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities anticipating future prepayments.

[5] Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, yield to maturity if purchased at par or a discount.

[6] Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and contractual maturity for securities with a fair value equal to or below par.

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Valuation Assumption Ranges for Derivative Commitments (Detail)	Sep. 30, 2012 BasisPoint
Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Expected loan close rate	9.00%
Inherent MSR value (basis points per loan)	10
Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Expected loan close rate	100.00%
Inherent MSR value (basis points per loan)	195
Average
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Expected loan close rate	73.00%
Inherent MSR value (basis points per loan)	99

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Customer-Related Derivative Positions of Company (Detail) (Customer-Related Positions, USD $) In Millions, unless otherwise specified	Sep. 30, 2012 Y		Dec. 31, 2011 Y
Interest rate contracts | Receive fixed/pay floating swaps
Derivative [Line Items]
Notional Value, Assets	$ 17,262		$ 16,230
Fair Value, Assets	1,186		1,216
Derivative Asset Average Remaining Maturity Period	4.74		4.98
Notional Value, Liabilities	359		523
Fair Value, Liabilities	8		1
Derivative Liability Average Remaining Maturity Period	16.45		2.52
Interest rate contracts | Pay fixed/receive floating swaps
Derivative [Line Items]
Notional Value, Assets	280		99
Fair Value, Assets	8
Derivative Asset Average Remaining Maturity Period	19.79		1.81
Notional Value, Liabilities	17,433		16,206
Fair Value, Liabilities	1,148		1,182
Derivative Liability Average Remaining Maturity Period	4.76		5.10
Interest rate contracts | Purchased options
Derivative [Line Items]
Notional Value, Assets	3,014		2,660
Fair Value, Assets	15		26
Derivative Asset Average Remaining Maturity Period	5.34		6.11
Notional Value, Liabilities	28
Derivative Liability Average Remaining Maturity Period	4.67
Interest rate contracts | Written options
Derivative [Line Items]
Notional Value, Assets	202
Derivative Asset Average Remaining Maturity Period	0.73
Notional Value, Liabilities	2,839		2,660
Fair Value, Liabilities	15		26
Derivative Liability Average Remaining Maturity Period	5.66		6.11
Foreign exchange contract | Purchased options
Derivative [Line Items]
Notional Value, Assets	346		127
Fair Value, Assets	8		5
Derivative Asset Average Remaining Maturity Period	0.65		0.41
Foreign exchange contract | Written options
Derivative [Line Items]
Notional Value, Liabilities	346		127
Fair Value, Liabilities	8		5
Derivative Liability Average Remaining Maturity Period	0.65		0.41
Foreign exchange contract | Forwards, spots and swaps
Derivative [Line Items]
Notional Value, Assets	11,038	[1]	7,936	[1]
Fair Value, Assets	301	[1]	369	[1]
Derivative Asset Average Remaining Maturity Period	0.36	[1]	0.54	[1]
Notional Value, Liabilities	10,799	[1]	7,731	[1]
Fair Value, Liabilities	$ 283	[1]	$ 354	[1]
Derivative Liability Average Remaining Maturity Period	0.45	[1]	0.54	[1]

[1] Reflects the net of long and short positions.

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Carrying Amount of Covered Assets (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012		Dec. 31, 2011
Covered Assets [Line Items]
Purchased Impaired Loans	$ 5,384		$ 5,854
Purchased Non-impaired Loans	5,235		6,407
Other Assets	1,737		2,800
Total	12,356		15,061
Commercial
Covered Assets [Line Items]
Purchased Impaired Loans	15		68
Purchased Non-impaired Loans	144		137
Total	159		205
Commercial Real Estate
Covered Assets [Line Items]
Purchased Impaired Loans	1,519		1,956
Purchased Non-impaired Loans	3,104		4,037
Total	4,623		5,993
Residential Mortgages
Covered Assets [Line Items]
Purchased Impaired Loans	3,850		3,830
Purchased Non-impaired Loans	1,184		1,360
Total	5,034		5,190
Credit Card
Covered Assets [Line Items]
Purchased Non-impaired Loans	5		6
Total	5		6
Other Retail
Covered Assets [Line Items]
Purchased Non-impaired Loans	798		867
Total	798		867
Losses reimbursable by FDIC
Covered Assets [Line Items]
Other Assets	1,539	[1]	2,526	[1]
Total	1,539	[1]	2,526	[1]
Covered Loans
Covered Assets [Line Items]
Purchased Impaired Loans	5,384		5,854
Purchased Non-impaired Loans	5,235		6,407
Other Assets	1,539		2,526
Total	12,158		14,787
Foreclosed real estate
Covered Assets [Line Items]
Other Assets	198		274
Total	$ 198		$ 274

[1] Relates to loss sharing agreements with remaining terms from 2 to 7 years.

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Fair Values of Assets and Liabilities - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Fair value measurement transfers from one level to another			$ 0	$ 0
Mortgage loans held for sale measured at fair value gain losses	241	98	501	(38)
Assumed minimum credit valuation adjustment as percentage of underlying fair value of underlying derivative contracts			0.00%
Assumed maximum credit valuation adjustment as percentage of underlying fair value of underlying derivative contracts			97.00%
Assumed average credit valuation adjustment as percentage of underlying fair value of underlying derivative contracts			6.00%
Net gains and losses on available for sale securities included in securities gains (losses)	(15)	(9)	(37)	(24)
Net gains and losses on available for sale securities included in interest income	6	13	34	44
Net gains and losses on net derivative assets and liabilities included in mortgage banking revenue	719	391	1,700	580
Net gains and losses on net derivative assets and liabilities included in noninterest income	124	445	344	672
Net change in net derivative assets and liabilities in unrealized gains (losses) included in noninterest income	7	317	6	303
Net change in net derivative assets and liabilities in unrealized gains (losses) included in mortgage banking revenue	(564)	(240)	1,400	(395)
Carrying value of unfunded commitments and standby letters of credit	393		393		381
Carrying value of other guarantees	$ 423		$ 423		$ 359

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Guarantees and Contingent Liabilities - Additional Information (Detail) (USD $)	9 Months Ended
	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Dec. 31, 2010
Liability related to remaining Visa Litigation, carrying amount	$ 65,000,000
Value of airline tickets purchased to deliver at a future date	5,900,000,000
Company held collateral in escrow deposits, letters of credit and indemnities from financial institutions, and liens on various assets	610,000,000
Representation and warranty reserve	220,000,000	216,000,000	160,000,000	162,000,000	173,000,000	180,000,000
Increase in representation and warranty reserve primarily due to an increase in the number of loans selected for repurchase review	60,000,000
Unresolved representation and warranty claims	118,000,000		105,000,000
Settlement amount by the Company in exchange for a release of claims	55,000,000
Accrual of potential settlement related to mortgage activities	$ 130,000,000

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Changes in Fair Value for All Assets and Liabilities Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level 3) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended				9 Months Ended				3 Months Ended				9 Months Ended				3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended	9 Months Ended							3 Months Ended				9 Months Ended				3 Months Ended				9 Months Ended				3 Months Ended				9 Months Ended				3 Months Ended	9 Months Ended
	Sep. 30, 2012 Residential non-agency prime		Sep. 30, 2011 Residential non-agency prime		Sep. 30, 2012 Residential non-agency prime		Sep. 30, 2011 Residential non-agency prime		Sep. 30, 2012 Residential non-agency non-prime		Sep. 30, 2011 Residential non-agency non-prime		Sep. 30, 2012 Residential non-agency non-prime		Sep. 30, 2011 Residential non-agency non-prime		Sep. 30, 2012 Commercial Non-Agency Mortgage-Backed Securities	Sep. 30, 2011 Commercial Non-Agency Mortgage-Backed Securities	Sep. 30, 2012 Commercial Non-Agency Mortgage-Backed Securities	Sep. 30, 2011 Commercial Non-Agency Mortgage-Backed Securities	Sep. 30, 2012 Collateralized Loan Obligations	Sep. 30, 2011 Collateralized Loan Obligations	Sep. 30, 2012 Collateralized Loan Obligations	Sep. 30, 2011 Collateralized Loan Obligations	Sep. 30, 2012 Asset Backed Securities Other	Sep. 30, 2012 Asset Backed Securities Other	Sep. 30, 2012 Corporate debt securities	Jun. 30, 2012 Corporate debt securities	Dec. 31, 2011 Corporate debt securities	Sep. 30, 2011 Corporate debt securities	Jun. 30, 2011 Corporate debt securities	Dec. 31, 2010 Corporate debt securities	Sep. 30, 2012 Available-for-sale Securities		Sep. 30, 2011 Available-for-sale Securities		Sep. 30, 2012 Available-for-sale Securities		Sep. 30, 2011 Available-for-sale Securities		Sep. 30, 2012 Mortgage servicing rights		Sep. 30, 2011 Mortgage servicing rights		Sep. 30, 2012 Mortgage servicing rights		Sep. 30, 2011 Mortgage servicing rights		Sep. 30, 2012 Net derivative assets and liabilities		Sep. 30, 2011 Net derivative assets and liabilities		Sep. 30, 2012 Net derivative assets and liabilities		Sep. 30, 2011 Net derivative assets and liabilities		Sep. 30, 2011 Other asset-backed securities	Sep. 30, 2011 Other asset-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning of Period Balance	$ 713	[1]	$ 896	[1]	$ 803	[1]	$ 1,103	[1]	$ 796	[2]	$ 895	[2]	$ 802	[2]	$ 947	[2]	$ 37	$ 50	$ 42	$ 50	$ 102	$ 133	$ 120	$ 135	$ 112	$ 117	$ 9	$ 9	$ 9	$ 9	$ 9	$ 9	$ 1,769		$ 2,112		$ 1,893		$ 2,377		$ 1,594		$ 1,989		$ 1,519		$ 1,837		$ 1,360		$ 836		$ 1,228		$ 851		$ 129	$ 133
Net Gains (Losses) Included in Net Income	(4)	[1]	1	[1]	(5)	[1]	4	[1]	(8)	[2]	(2)	[2]	(18)	[2]	(4)	[2]		1	1	2	2	3	12	10	1	7							(9)	[3]	4	[4]	(3)	[5]	20	[6]	(275)	[7]	(629)	[7]	(705)	[7]	(803)	[7]	843	[8]	836	[9]	2,050	[10]	1,252	[11]	1	8
Net Gains (Losses) Included in Other Comprehensive Income (Loss)	23	[1]	(2)	[1]	60	[1]	22	[1]	132	[2]	(5)	[2]	197	[2]	27	[2]	2	(1)		(1)	(7)	(2)	(8)	6	(4)								146	[12]	(14)	[12]	249	[12]	52	[12]																	(4)	(2)
Purchases																									3	3							3				3				10		5		39		16		1				1
Sales	(61)	[1]			(109)	[1]	(115)	[1]	(562)	[2]			(562)	[2]	(12)	[2]	(39)	(4)	(39)	(4)	(96)		(103)		(93)	(93)							(851)		(4)		(906)		(131)										(1)		(2)		(3)		(5)
Principal Payments	(40)	[1]	(36)	[1]	(118)	[1]	(155)	[1]	(18)	[2]	(31)	[2]	(79)	[2]	(101)	[2]		(1)	(4)	(2)	(1)	(9)	(21)	(26)	(3)	(18)							(62)		(83)		(240)		(303)																		(6)	(19)
Issuances																																									224	[13]	101	[13]	700	[13]	416	[13]
Settlements																																																	(713)		(340)		(1,786)		(768)
End of Period Balance	631	[1]	859	[1]	631	[1]	859	[1]	340	[2]	857	[2]	340	[2]	857	[2]		45		45		125		125	16	16	9	9	9	9	9	9	996		2,015		996		2,015		1,553		1,466		1,553		1,466		1,490		1,330		1,490		1,330		120	120
Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period	$ 26	[1]	$ (2)	[1]	$ 58	[1]	$ 14	[1]	$ 23	[2]	$ (5)	[2]	$ 52	[2]	$ 26	[2]						$ (2)		$ 7	$ 2	$ 2							$ 51		$ (13)		$ 112		$ 45		$ (275)	[7]	$ (629)	[7]	$ (705)	[7]	$ (803)	[7]	$ (557)	[14]	$ 77	[15]	$ (1,407)	[16]	$ (92)	[17]	$ (4)	$ (2)

[1] Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

[2] Includes all securities not meeting the conditions to be designated as prime.

[3] Approximately $(15) million included in securities gains (losses) and $6 million included in interest income.

[4] Approximately $(9) million included in other securities gains (losses) and $13 million included in interest income.

[5] Approximately $(37) million included in securities gains (losses) and $34 million included in interest income.

[6] Approximately $(24) million included in securities gains (losses) and $44 million included in interest income.

[7] Included in mortgage banking revenue.

[8] Approximately $124 million included in other noninterest income and $719 million included in mortgage banking revenue.

[9] Approximately $445 million included in other noninterest income and $391 million included in mortgage banking revenue.

[10] Approximately $344 million included in other noninterest income and $1.7 billion included in mortgage banking revenue.

[11] Approximately $672 million included in other noninterest income and $580 million included in mortgage banking revenue.

[12] Included in changes in unrealized gains and losses on securities available-for-sale.

[13] Represents MSRs capitalized during the period.

[14] Approximately $7 million included in other noninterest income and $(564) million included in mortgage banking revenue.

[15] Approximately $317 million included in other noninterest income and $(240) million included in mortgage banking revenue.

[16] Approximately $6 million included in other noninterest income and $1.4 billion included in mortgage banking revenue.

[17] Approximately $303 million included in other noninterest income and $(395) million included in mortgage banking revenue.

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Summary of Other Guarantees and Contingent Liabilities (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012		Dec. 31, 2011
Guarantor Obligations [Line Items]
Carrying Amount	$ 423		$ 359
Standby letters of credit
Guarantor Obligations [Line Items]
Carrying Amount	81
Maximum Potential Future Payments	18,323
Third-party borrowing arrangements
Guarantor Obligations [Line Items]
Maximum Potential Future Payments	299
Securities lending indemnifications
Guarantor Obligations [Line Items]
Collateral Held	8,982
Maximum Potential Future Payments	8,737
Asset sales
Guarantor Obligations [Line Items]
Carrying Amount	305	[1]
Maximum Potential Future Payments	2,710	[1]
Merchant processing
Guarantor Obligations [Line Items]
Collateral Held	772
Carrying Amount	80
Maximum Potential Future Payments	81,280
Contingent consideration arrangements
Guarantor Obligations [Line Items]
Carrying Amount	3
Maximum Potential Future Payments	6
Tender option bond program guarantee
Guarantor Obligations [Line Items]
Collateral Held	5,329
Maximum Potential Future Payments	5,047
Minimum revenue guarantees
Guarantor Obligations [Line Items]
Carrying Amount	17
Maximum Potential Future Payments	31
Other
Guarantor Obligations [Line Items]
Carrying Amount	18
Maximum Potential Future Payments	$ 3,436

[1] The maximum potential future payments do not include loan sales where the Company provides standard representation and warranties to the buyer against losses related to loan underwriting documentation defects that may have existed at the time of sale that generally are identified after the occurrence of a triggering event such as delinquency. For these types of loan sales, the maximum potential future payments is generally the unpaid principal balance of loans sold measured at the end of the current reporting period. Actual losses will be significantly less than the maximum exposure, as only a fraction of loans sold will have a representation and warranty breach, and any losses on repurchase would generally be mitigated by any collateral held against the loans.

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Valuation Assumption Ranges for Level 3 Available-for-Sale Investment Securities (Detail)	Sep. 30, 2012
Minimum | Residential Prime Non-Agency Mortgage-Backed Securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated lifetime prepayment rates	6.00%	[1]
Lifetime loss severity rates	25.00%	[1]
Discount margin	3.00%	[1]
Minimum | Residential Non-Prime Non-Agency Mortgage-Backed Securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated lifetime prepayment rates	2.00%	[2]
Lifetime probability of default rates	3.00%	[2]
Lifetime loss severity rates	20.00%	[2]
Discount margin	3.00%	[2]
Minimum | Other asset-backed securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated lifetime prepayment rates	6.00%
Lifetime probability of default rates	4.00%
Lifetime loss severity rates	40.00%
Discount margin	18.00%
Maximum | Residential Prime Non-Agency Mortgage-Backed Securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated lifetime prepayment rates	20.00%	[1]
Lifetime probability of default rates	5.00%	[1]
Lifetime loss severity rates	80.00%	[1]
Discount margin	7.00%	[1]
Maximum | Residential Non-Prime Non-Agency Mortgage-Backed Securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated lifetime prepayment rates	10.00%	[2]
Lifetime probability of default rates	10.00%	[2]
Lifetime loss severity rates	70.00%	[2]
Discount margin	9.00%	[2]
Maximum | Other asset-backed securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated lifetime prepayment rates	6.00%
Lifetime probability of default rates	4.00%
Lifetime loss severity rates	40.00%
Discount margin	18.00%
Average | Residential Prime Non-Agency Mortgage-Backed Securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated lifetime prepayment rates	13.00%	[1]
Lifetime probability of default rates	3.00%	[1]
Lifetime loss severity rates	42.00%	[1]
Discount margin	5.00%	[1]
Average | Residential Non-Prime Non-Agency Mortgage-Backed Securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated lifetime prepayment rates	6.00%	[2]
Lifetime probability of default rates	6.00%	[2]
Lifetime loss severity rates	53.00%	[2]
Discount margin	6.00%	[2]
Average | Other asset-backed securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated lifetime prepayment rates	6.00%
Lifetime probability of default rates	4.00%
Lifetime loss severity rates	40.00%
Discount margin	18.00%

[1] Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

[2] Includes all securities not meeting the conditions to be designated as prime.

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Derivative Position of Company (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012		Dec. 31, 2011
Derivative Financial Instruments, Assets
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value	$ 2,176		$ 1,913
Netting	(354)	[1]	(294)	[1]
Total	1,822		1,619
Derivative Financial Instruments, Liabilities
Derivatives, Fair Value [Line Items]
Fair Value, Liabilities	2,640		2,554
Netting	(1,687)	[1]	(1,889)	[1]
Derivative Liabilities	$ 953		$ 665

[1] Represents netting of derivative asset and liability balances, and related collateral, with the same counterparty subject to master netting agreements. At September 30, 2012, the amount of cash and money market investments collateral posted by counterparties that was netted against derivative assets was $89 million and the amount of cash collateral posted by the Company that was netted against derivative liabilities was $1.4 billion, compared with $88 million and $1.7 billion, respectively, at December 31, 2011.

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Mortgage Servicing Rights (Tables)

9 Months Ended

Sep. 30, 2012

Changes in Fair Value of Capitalized MSRs

Changes in fair value of capitalized MSRs are summarized as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	1,594		$	1,989		$	1,519		$	1,837
Rights purchased		10			5			39			16
Rights capitalized		224			101			700			416
Changes in fair value of MSRs
Due to fluctuations in market interest rates (a)		(123	)		(534	)		(298	)		(569	)
Due to revised assumptions or models (b)		(2	)		2			(19	)		27
Other changes in fair value (c)		(150	)		(97	)		(388	)		(261	)
Balance at end of period	$	1,553		$	1,466		$	1,553		$	1,466

(a) Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits.

(b) Includes changes in MSR value not caused by changes in market interest rates, such as changes in cost to service, ancillary income, and discount rate, as well as the impact of any model changes.

(c) Primarily represents changes due to realization of expected cash flows over time (decay).

Sensitivity to Changes in Interest Rates to Fair Value of MSR's Portfolio and Related Derivative Instruments

The estimated sensitivity to changes in interest rates of the fair value of the MSRs portfolio and the related derivative instruments was as follows:

	September 30, 2012																		December 31, 2011
(Dollars in Millions)	Down 100 bps			Down 50 bps			Down 25 bps			Up 25 bps			Up 50 bps			Up 100 bps			Down 100 bps			Down 50 bps			Down 25 bps			Up 25 bps			Up 50 bps			Up 100 bps
MSR portfolio	$	(262	)	$	(162	)	$	(94	)	$	109		$	231		$	483		$	(305	)	$	(183	)	$	(98	)	$	107		$	223		$	460
Derivative instrument hedges		405			208			105			(105	)		(210	)		(422	)		378			204			104			(107	)		(217	)		(445	)
Net sensitivity	$	143		$	46		$	11		$	4		$	21		$	61		$	73		$	21		$	6		$	—		$	6		$	15

MSRs and Related Characteristics by Portfolio

A summary of the Company’s MSRs and related characteristics by portfolio was as follows:

	September 30, 2012												December 31, 2011
(Dollars in Millions)	MRBP			Government			Conventional (b)			Total			MRBP			Government			Conventional (b)			Total
Servicing portfolio	$	13,939		$	38,162		$	159,162		$	211,263		$	13,357		$	32,567		$	145,158		$	191,082
Fair market value	$	154		$	304		$	1,095		$	1,553		$	155		$	290		$	1,074		$	1,519
Value (bps) (a)		110			80			69			74			116			89			74			79
Weighted-average servicing fees (bps)		40			34			30			31			40			36			29			31
Multiple (value/servicing fees)		2.75			2.35			2.30			2.39			2.90			2.47			2.55			2.55
Weighted-average note rate		5.24	%		4.69	%		4.63	%		4.68	%		5.50	%		5.08	%		4.97	%		5.03	%
Weighted-average age (in years)		4.2			2.4			2.5			2.6			4.2			2.5			2.8			2.8
Weighted-average expected prepayment (constant prepayment rate)		13.1	%		21.6	%		23.1	%		22.2	%		12.9	%		21.1	%		22.1	%		21.3	%
Weighted-average expected life (in years)		6.2			4.0			3.5			3.8			6.4			4.0			3.8			4.0
Weighted-average discount rate		12.1	%		11.4	%		10.0	%		10.4	%		12.1	%		11.3	%		10.0	%		10.4	%

(a) Value is calculated as fair market value divided by the servicing portfolio.

(b) Represents loans sold primarily to GSEs.

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Additional Detail of Allowance for Credit Losses and Related Loan Balances by Portfolio Type (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012		Jun. 30, 2012	Dec. 31, 2011		Sep. 30, 2011	Jun. 30, 2011	Dec. 31, 2010
Allowance balance at December 31, 2011 related to
Loans individually evaluated for impairment	$ 39	[1]		$ 80	[1]
TDRs collectively evaluated for impairment	750			839
Other loans collectively evaluated for impairment	3,888			4,016
Loans acquired with deteriorated credit quality	94			79
Total allowance for credit losses	4,771		4,864	5,014		5,190	5,308	5,531
Loan balance at end of year:
Loans individually evaluated for impairment	817	[2]		1,244	[2]
TDRs collectively evaluated for impairment	5,463			4,883
Other loans collectively evaluated for impairment	206,356			197,705
Loans acquired with deteriorated credit quality	5,514			6,003
Total loans	218,150			209,835
Commercial
Allowance balance at December 31, 2011 related to
Loans individually evaluated for impairment	6	[1]		16	[1]
TDRs collectively evaluated for impairment	31			40
Other loans collectively evaluated for impairment	997			954
Total allowance for credit losses	1,034		1,037	1,010		1,025	1,109	1,104
Loan balance at end of year:
Loans individually evaluated for impairment	132	[2]		222	[2]
TDRs collectively evaluated for impairment	179			277
Other loans collectively evaluated for impairment	62,594			56,138
Loans acquired with deteriorated credit quality	5			11
Total loans	62,910			56,648
Commercial Real Estate
Allowance balance at December 31, 2011 related to
Loans individually evaluated for impairment	33	[1]		61	[1]
TDRs collectively evaluated for impairment	28			33
Other loans collectively evaluated for impairment	828			1,057
Loans acquired with deteriorated credit quality	5			3
Total allowance for credit losses	894		941	1,154		1,221	1,258	1,291
Loan balance at end of year:
Loans individually evaluated for impairment	612	[2]		812	[2]
TDRs collectively evaluated for impairment	383			331
Other loans collectively evaluated for impairment	35,699			34,574
Loans acquired with deteriorated credit quality	119			134
Total loans	36,813			35,851
Residential Mortgages
Allowance balance at December 31, 2011 related to
Loans individually evaluated for impairment				1	[1]
TDRs collectively evaluated for impairment	464			490
Other loans collectively evaluated for impairment	497			436
Total allowance for credit losses	961		939	927		887	841	820
Loan balance at end of year:
Loans individually evaluated for impairment				6	[2]
TDRs collectively evaluated for impairment	4,033			3,430
Other loans collectively evaluated for impairment	37,863			33,642
Loans acquired with deteriorated credit quality	6			4
Total loans	41,902			37,082
Credit Card
Allowance balance at December 31, 2011 related to
TDRs collectively evaluated for impairment	167			219
Other loans collectively evaluated for impairment	748			773
Total allowance for credit losses	915		996	992		1,068	1,140	1,395
Loan balance at end of year:
TDRs collectively evaluated for impairment	462			584
Other loans collectively evaluated for impairment	15,940			16,776
Total loans	16,402			17,360
Other Retail
Allowance balance at December 31, 2011 related to
TDRs collectively evaluated for impairment	59			57
Other loans collectively evaluated for impairment	797			774
Total allowance for credit losses	856		828	831		832	843	807
Loan balance at end of year:
TDRs collectively evaluated for impairment	269			148
Other loans collectively evaluated for impairment	47,696			47,959
Total loans	47,965			48,107
Total Loans, Excluding Covered Loans
Allowance balance at December 31, 2011 related to
Loans individually evaluated for impairment	39	[1]		78	[1]
TDRs collectively evaluated for impairment	749			839
Other loans collectively evaluated for impairment	3,867			3,994
Loans acquired with deteriorated credit quality	5			3
Total allowance for credit losses	4,660		4,741	4,914		5,033	5,191	5,417
Loan balance at end of year:
Loans individually evaluated for impairment	744	[2]		1,040	[2]
TDRs collectively evaluated for impairment	5,326			4,770
Other loans collectively evaluated for impairment	199,792			189,089
Loans acquired with deteriorated credit quality	130			149
Total loans	205,992			195,048
Covered Loans
Allowance balance at December 31, 2011 related to
Loans individually evaluated for impairment				2	[1]
TDRs collectively evaluated for impairment	1
Other loans collectively evaluated for impairment	21			22
Loans acquired with deteriorated credit quality	89			76
Total allowance for credit losses	111		123	100		157	117	114
Loan balance at end of year:
Loans individually evaluated for impairment	73	[2],[3]		204	[2],[3]
TDRs collectively evaluated for impairment	137	[3]		113	[3]
Other loans collectively evaluated for impairment	6,564	[3]		8,616	[3]
Loans acquired with deteriorated credit quality	5,384	[3]		5,854	[3]
Total loans	$ 12,158	[3]		$ 14,787	[3]

[1] Represents the allowance for credit losses related to loans greater than $5 million classified as nonperforming or TDRs.

[2] Represents loans greater than $5 million classified as nonperforming or TDRs.

[3] Includes expected reimbursements from the FDIC under loss sharing agreements.

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Summary of Other than Temporary Impairment by Investment Category (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2012		Sep. 30, 2011		Sep. 30, 2012		Sep. 30, 2011
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Other Gains (losses)	$ (2)		$ 2		$ (3)		$ 17
Available-for-sale Securities
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Losses Recorded in Earnings	(15)		(9)		(64)		(24)
Other Gains (losses)	2	[1]	(2)	[1]	3	[1]	(17)	[1]
Total Available for sale other-than-temporary impairment	(13)		(11)		(61)		(41)
Residential non-agency prime | Available-for-sale Securities
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Losses Recorded in Earnings	(5)	[2]			(8)	[2]	(2)	[2]
Other Gains (losses)	(3)	[1],[2]			(12)	[1],[2]	(3)	[1],[2]
Total Available for sale other-than-temporary impairment	(8)	[2]			(20)	[2]	(5)	[2]
Residential non-agency non-prime | Available-for-sale Securities
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Losses Recorded in Earnings	(10)	[3]	(6)	[3]	(27)	[3]	(18)	[3]
Other Gains (losses)	5	[1],[3]	(4)	[1],[3]	15	[1],[3]	(16)	[1],[3]
Total Available for sale other-than-temporary impairment	(5)	[3]	(10)	[3]	(12)	[3]	(34)	[3]
Other asset-backed securities | Available-for-sale Securities
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Losses Recorded in Earnings			(3)		(1)		(4)
Other Gains (losses)			2	[1]	1	[1]	2	[1]
Total Available for sale other-than-temporary impairment			(1)				(2)
Commercial Mortgage-Backed Securities | Non-agency | Available-for-sale Securities
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Losses Recorded in Earnings					(1)
Other Gains (losses)					(1)	[1]
Total Available for sale other-than-temporary impairment					(2)
Perpetual preferred securities | Available-for-sale Securities
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Losses Recorded in Earnings					(27)
Total Available for sale other-than-temporary impairment					$ (27)

[1] Losses represent the non-credit portion of other-than-temporary impairment recorded in other comprehensive income for investment securities determined to be other-than-temporarily impaired during the period. Gains represent recoveries in the fair value of securities that have or previously had non-credit other-than-temporary impairment.

[2] Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

[3] Includes all securities not meeting the conditions to be designated as prime.

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Summary of Gains (Losses) Recognized in Earnings for Fair Value Hedges, Other Economic Hedges and Customer-Related Positions (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2012		Sep. 30, 2011		Sep. 30, 2012		Sep. 30, 2011
Interest rate contracts | Other noninterest income expense | Fair value hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	$ 2	[1]	$ 1	[1]	$ 5	[1]	$ 25	[1]
Foreign exchange cross-currency swaps | Other noninterest income expense | Fair value hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings			(111)	[1]	42	[1]	(13)	[1]
Futures and forwards interest rate contract | Mortgage banking revenue | Other economic hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	(44)		17		67		(7)
Purchased and written options interest rate contract | Mortgage banking revenue | Other economic hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	290		181		689		323
Receive fixed pay floating swaps interest rate contract | Other noninterest income expense
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	(16)		366		(10)		352
Receive fixed pay floating swaps interest rate contract | Mortgage banking revenue | Other economic hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	48		377		186		479
Pay fixed receive floating swaps interest rate contracts | Other noninterest income expense
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	19		(376)		15		(365)
Pay fixed receive floating swaps interest rate contracts | Mortgage banking revenue | Other economic hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings			4				4
Foreign exchange forward contracts | Commercial products revenue | Other economic hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	(25)		(48)		(62)		(66)
Equity contracts | Compensation expense | Other economic hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	1		1		2		2
Credit contracts | Other noninterest income expense | Other economic hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	(2)		4		(8)		2
Forwards spots and swaps foreign exchange contract | Commercial products revenue
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	$ 13		$ 14		$ 36		$ 41

[1] Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were $(2) million and zero for the three months ended September 30, 2012, respectively, and $(3) million and $117 million for the three months ended September 30, 2011, respectively. Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were $(5) million and $(44) million for the nine months ended September 30, 2012, respectively, and $(27) million and $20 million for the nine months ended September 30, 2011, respectively. The ineffective portion was immaterial for the three and nine months ended September 30, 2012 and 2011.

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Investment Securities Held To Maturities (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012		Dec. 31, 2011
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 34,509	[1],[2]	$ 18,877	[1]
Unrealized Gains	745	[1]	383	[1]
Unrealized Losses Other-than-Temporary	(4)	[1],[3]	(6)	[1],[3]
Unrealized Losses Other	(24)	[1],[3]	(38)	[1],[4]
Fair Value	35,226	[1],[2]	19,216	[1]
U.S. Treasury and Agencies
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	2,557	[1]	2,560	[1]
Unrealized Gains	26	[1]	35	[1]
Fair Value	2,583	[1]	2,595	[1]
Collateralized debt/loan obligation asset-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	9	[1]	52	[1]
Unrealized Gains	16	[1]	13	[1]
Unrealized Losses Other			(2)	[1],[4]
Fair Value	25	[1]	63	[1]
Asset Backed Securities Other
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	19	[1]	23	[1]
Unrealized Gains	2	[1]	1	[1]
Unrealized Losses Other-than-Temporary	(4)	[1],[3]	(6)	[1],[3]
Unrealized Losses Other	(2)	[1],[3]	(1)	[1],[4]
Fair Value	15	[1]	17	[1]
Obligations of state and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	21	[1]	23	[1]
Unrealized Gains	1	[1]	1	[1]
Unrealized Losses Other			(1)	[1],[4]
Fair Value	22	[1]	23	[1]
Obligations of Foreign Governments
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	7	[1]	7	[1]
Fair Value	7	[1]	7	[1]
Other debt securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	119	[1]	121	[1]
Unrealized Losses Other	(19)	[1],[3]	(29)	[1],[4]
Fair Value	100	[1]	92	[1]
Residential Agency | Residential
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	31,773	[1]	16,085	[1]
Unrealized Gains	700	[1]	333	[1]
Unrealized Losses Other	(3)	[1],[3]	(3)	[1],[4]
Fair Value	32,470	[1]	16,415	[1]
Residential non-agency non-prime | Residential
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1	[1],[5]	2	[1],[5]
Fair Value	1	[1],[5]	2	[1],[5]
Non-agency | Commercial Mortgage-Backed Securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	3	[1]	4	[1]
Unrealized Losses Other			(2)	[1],[4]
Fair Value	$ 3	[1]	$ 2	[1]

[1] Held-to-maturity investment securities are carried at historical cost or at fair value at the time of transfer from the available-for-sale to held-to-maturity category, adjusted for amortization of premiums and accretion of discounts and credit-related other-than-temporary impairment.

[2] The weighted-average maturity of the available-for-sale investment securities was 5.2 years at December 31, 2011, with a corresponding weighted-average yield of 3.19 percent. The weighted-average maturity of the held-to-maturity investment securities was 3.9 years at December 31, 2011, with a corresponding weighted-average yield of 2.21 percent.

[3] Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired.

[4] Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired.

[5] Includes all securities not meeting the conditions to be designated as prime.

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Summary of Loans by Portfolio Type and Company's Internal Credit Quality Rating (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended		12 Months Ended
	Sep. 30, 2012		Dec. 31, 2011
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 218,150		$ 209,835
Total outstanding commitments	442,163		423,565
Commercial Loan
Financing Receivable, Recorded Investment [Line Items]
Total loans	62,910		56,648
Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total loans	36,813		35,851
Residential Mortgage
Financing Receivable, Recorded Investment [Line Items]
Total loans	41,902	[1]	37,082	[1]
Credit Card
Financing Receivable, Recorded Investment [Line Items]
Total loans	16,402		17,360
Other Retail
Financing Receivable, Recorded Investment [Line Items]
Total loans	47,965		48,107
Total Loans, Excluding Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Total loans	205,992		195,048
Covered loans
Financing Receivable, Recorded Investment [Line Items]
Total loans	12,158		14,787
Pass Internal Credit Rating
Financing Receivable, Recorded Investment [Line Items]
Total loans	209,507		199,091
Total outstanding commitments	431,162		410,457
Pass Internal Credit Rating | Commercial Loan
Financing Receivable, Recorded Investment [Line Items]
Total loans	60,403		54,003
Pass Internal Credit Rating | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total loans	33,326		30,733
Pass Internal Credit Rating | Residential Mortgage
Financing Receivable, Recorded Investment [Line Items]
Total loans	40,666	[1]	35,814	[1]
Pass Internal Credit Rating | Credit Card
Financing Receivable, Recorded Investment [Line Items]
Total loans	16,046		16,910
Pass Internal Credit Rating | Other Retail
Financing Receivable, Recorded Investment [Line Items]
Total loans	47,522		47,665
Pass Internal Credit Rating | Total Loans, Excluding Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Total loans	197,963		185,125
Pass Internal Credit Rating | Covered loans
Financing Receivable, Recorded Investment [Line Items]
Total loans	11,544		13,966
Special Mention Criticized Internal Credit Rating
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,213		2,070
Total outstanding commitments	3,725		3,418
Special Mention Criticized Internal Credit Rating | Commercial Loan
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,265		1,047
Special Mention Criticized Internal Credit Rating | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total loans	785		793
Special Mention Criticized Internal Credit Rating | Residential Mortgage
Financing Receivable, Recorded Investment [Line Items]
Total loans	24	[1]	19	[1]
Special Mention Criticized Internal Credit Rating | Other Retail
Financing Receivable, Recorded Investment [Line Items]
Total loans	43		24
Special Mention Criticized Internal Credit Rating | Total Loans, Excluding Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,117		1,883
Special Mention Criticized Internal Credit Rating | Covered loans
Financing Receivable, Recorded Investment [Line Items]
Total loans	96		187
Classified Criticized
Financing Receivable, Recorded Investment [Line Items]
Total loans	6,430	[2]	8,674	[2]
Total outstanding commitments	7,276	[2]	9,690	[2]
Classified Criticized | Commercial Loan
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,242	[2]	1,598	[2]
Classified Criticized | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,702	[2]	4,325	[2]
Classified Criticized | Residential Mortgage
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,212	[1],[2]	1,249	[1],[2]
Classified Criticized | Credit Card
Financing Receivable, Recorded Investment [Line Items]
Total loans	356	[2]	450	[2]
Classified Criticized | Other Retail
Financing Receivable, Recorded Investment [Line Items]
Total loans	400	[2]	418	[2]
Classified Criticized | Total Loans, Excluding Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Total loans	5,912	[2]	8,040	[2]
Classified Criticized | Covered loans
Financing Receivable, Recorded Investment [Line Items]
Total loans	518	[2]	634	[2]
Total Criticized
Financing Receivable, Recorded Investment [Line Items]
Total loans	8,643		10,744
Total outstanding commitments	11,001		13,108
Total Criticized | Commercial Loan
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,507		2,645
Total Criticized | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total loans	3,487		5,118
Total Criticized | Residential Mortgage
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,236	[1]	1,268	[1]
Total Criticized | Credit Card
Financing Receivable, Recorded Investment [Line Items]
Total loans	356		450
Total Criticized | Other Retail
Financing Receivable, Recorded Investment [Line Items]
Total loans	443		442
Total Criticized | Total Loans, Excluding Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Total loans	8,029		9,923
Total Criticized | Covered loans
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 614		$ 821

[1] At September 30, 2012, $3.0 billion of GNMA loans 90 days or more past due and $2.2 billion of restructured GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs were classified with a pass rating, compared with $2.6 billion and $2.0 billion at December 31, 2011, respectively.

[2] Classified rating on consumer loans primarily based on delinquency status.

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Components of Net Periodic Benefit Cost (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 33	$ 30	$ 97	$ 89
Interest cost	42	42	126	126
Expected return on plan assets	(48)	(52)	(143)	(155)
Prior service cost (credit) and transition obligation (asset) amortization	(2)	(2)	(4)	(7)
Actuarial loss (gain) amortization	41	31	121	94
Net periodic benefit cost	66	49	197	147
Postretirement Welfare Plan
Defined Benefit Plan Disclosure [Line Items]
Service cost	2	1	4	3
Interest cost	1	3	5	7
Expected return on plan assets	(1)	(1)	(2)	(3)
Actuarial loss (gain) amortization	(1)	(2)	(5)	(5)
Net periodic benefit cost	$ 1	$ 1	$ 2	$ 2

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Sensitivity to Changes in Interest Rates to Fair Value of MSRs Portfolio and Related Derivative Instruments (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Down Scenario | MSR portfolio
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Net fair value 100 basis points	$ (262)	$ (305)
Net fair value 50 basis points	(162)	(183)
Net fair value 25 basis points	(94)	(98)
Down Scenario | Derivative instrument hedges
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Net fair value 100 basis points	405	378
Net fair value 50 basis points	208	204
Net fair value 25 basis points	105	104
Down Scenario | Net sensitivity
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Net fair value 100 basis points	143	73
Net fair value 50 basis points	46	21
Net fair value 25 basis points	11	6
Up Scenario | MSR portfolio
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Net fair value 100 basis points	483	460
Net fair value 50 basis points	231	223
Net fair value 25 basis points	109	107
Up Scenario | Derivative instrument hedges
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Net fair value 100 basis points	(422)	(445)
Net fair value 50 basis points	(210)	(217)
Net fair value 25 basis points	(105)	(107)
Up Scenario | Net sensitivity
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Net fair value 100 basis points	61	15
Net fair value 50 basis points	21	6
Net fair value 25 basis points	$ 4

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Loans and Allowance for Credit Losses - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Mar. 31, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans pledged at the Federal Home Loan Bank ("FHLB")	$ 73,200,000,000		$ 73,200,000,000			$ 67,000,000,000
Loans pledged at the Federal Reserve Bank	47,200,000,000		47,200,000,000			47,200,000,000
Unearned interest and deferred fees and costs on loans	800,000,000		800,000,000			1,100,000,000
Fair value of impaired loans acquired in BankEast transaction					28,000,000
Receivables of impaired loans acquired in BankEast transaction					63,000,000
Cash Receivables of impaired loans acquired in BankEast transaction to be collected with interest					41,000,000
Fair value of non-impaired loans acquired in BankEast transaction					96,000,000
Receivables of Non-Impaired Loans Acquired in BankEast transaction					135,000,000
Cash Receivables of non-impaired loans acquired in BankEast transaction not expected to be collected					22,000,000
Period for capturing full economic cycle in evaluation			11 years
Minimum amount of loans for which allowance recorded for impaired purposes			5,000,000
Period of accruing loans related nonperforming assets and related ratios			90 days
Extension included in Commercial Real Estate Modifications			up to 12 Months
Outstanding balance of loans where trial period was unsuccessful and no longer eligible for a permanent modification	50,000,000
Purchased impaired loans nonperforming assets	93,000,000		93,000,000			189,000,000
Net gains on the sale of loan	419,000,000	74,000,000	998,000,000	340,000,000
Government National Mortgage Association
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans 30-89 days past due purchased from Government National Mortgage Association mortgage pools whose payments are insured by the Federal Housing Administration and classified as current	462,000,000		462,000,000			545,000,000
Loans 90 days or more past due purchased from Government National Mortgage Association mortgage pools whose payments are insured by the Federal Housing Administration and classified as current	3,000,000,000		3,000,000,000			2,600,000,000
Number of residential mortgage loans, home equity and second mortgage loans, and GNMA loans where trial period arrangement was unsuccessful	309
Government National Mortgage Association | Trouble Debt Restructure
Financing Receivable, Recorded Investment, Past Due [Line Items]
Restructured GNMA loans that are classified with a pass rating	2,200,000,000		2,200,000,000			2,000,000,000
Loans 90 days or more past due purchased from Government National Mortgage Association mortgage pools whose payments are insured by the Federal Housing Administration and classified as current	3,000,000,000		3,000,000,000			2,600,000,000
Residential Mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans in trial period	250		250
Outstanding balance of loans in trial period	43,000,000		43,000,000
Estimated post-modification balance of loans in trial period	44,000,000		44,000,000
Home Equity and Second Mortgages
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans in trial period	29		29
Outstanding balance of loans in trial period	2,000,000		2,000,000
Estimated post-modification balance of loans in trial period	2,000,000		2,000,000
Loans purchased from GNMA
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans in trial period	2,180		2,180
Outstanding balance of loans in trial period	263,000,000		263,000,000
Estimated post-modification balance of loans in trial period	$ 271,000,000		$ 271,000,000

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Investment Securities

9 Months Ended

Sep. 30, 2012

Investment Securities

Note 2 Investment Securities

The amortized cost, other-than-temporary impairment recorded in other comprehensive income (loss), gross unrealized holding gains and losses, and fair value of held-to-maturity and available-for-sale investment securities were as follows:

	September 30, 2012												December 31, 2011
					Unrealized Losses												Unrealized Losses
(Dollars in Millions)	Amortized Cost		Unrealized Gains		Other-than- Temporary (e)			Other (f)			Fair Value		Amortized Cost		Unrealized Gains		Other-than- Temporary (e)			Other (f)			Fair Value
Held-to-maturity (a)
U.S. Treasury and agencies	$	2,557	$	26	$	–		$	–		$	2,583	$	2,560	$	35	$	–		$	–		$	2,595
Mortgage-backed securities
Residential
Agency		31,773		700		–			(3	)		32,470		16,085		333		–			(3	)		16,415
Non-agency non-prime (d)		1		–		–			–			1		2		–		–			–			2
Commercial non-agency		3		–		–			–			3		4		–		–			(2	)		2
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		9		16		–			–			25		52		13		–			(2	)		63
Other		19		2		(4	)		(2	)		15		23		1		(6	)		(1	)		17
Obligations of state and political subdivisions		21		1		–			–			22		23		1		–			(1	)		23
Obligations of foreign governments		7		–		–			–			7		7		–		–			–			7
Other debt securities		119		–		–			(19	)		100		121		–		–			(29	)		92
Total held-to-maturity	$	34,509	$	745	$	(4	)	$	(24	)	$	35,226	$	18,877	$	383	$	(6	)	$	(38	)	$	19,216
Available-for-sale (b)
U.S. Treasury and agencies	$	728	$	15	$	–		$	–		$	743	$	1,045	$	13	$	–		$	(1	)	$	1,057
Mortgage-backed securities
Residential
Agency		28,494		874		–			(6	)		29,362		39,337		981		–			(4	)		40,314
Non-agency
Prime (c)		679		–		(38	)		(10	)		631		911		5		(63	)		(50	)		803
Non-prime (d)		388		1		(48	)		(1	)		340		1,047		9		(247	)		(7	)		802
Commercial
Agency		193		9		–			–			202		133		7		–			–			140
Non-agency		–		–		–			–			–		42		2		–			(2	)		42
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		33		9		–			–			42		180		31		(3	)		(2	)		206
Other		585		14		–			(1	)		598		694		16		(5	)		(24	)		681
Obligations of state and political subdivisions		6,085		372		–			–			6,457		6,394		167		–			(22	)		6,539
Obligations of foreign governments		6		–		–			–			6		6		–		–			–			6
Corporate debt securities		813		2		–			(106	)		709		1,000		1		–			(174	)		827
Perpetual preferred securities		268		29		–			(19	)		278		379		25		–			(86	)		318
Other investments		248		20		–			–			268		188		15		–			(1	)		202
Total available-for-sale	$	38,520	$	1,345	$	(86	)	$	(143	)	$	39,636	$	51,356	$	1,272	$	(318	)	$	(373	)	$	51,937

(a) Held-to-maturity investment securities are carried at historical cost or at fair value at the time of transfer from the available-for-sale to held-to-maturity category, adjusted for amortization of premiums and accretion of discounts and credit-related other-than-temporary impairment.

(b) Available-for-sale investment securities are carried at fair value with unrealized net gains or losses reported within accumulated other comprehensive income (loss) in shareholders’ equity.

(c) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads). When the Company determines the designation, prime securities typically have a weighted average credit score of 725 or higher and a loan-to-value of 80 percent or lower; however, other pool characteristics may result in designations that deviate from these credit score and loan-to-value thresholds.

(d) Includes all securities not meeting the conditions to be designated as prime.

(e) Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired.

(f) Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired.

During the second quarter of 2012, the Company transferred $11.7 billion of available-for-sale agency mortgage-backed investment securities to the held-to-maturity category, reflecting the Company’s intent to hold those securities to maturity.

The weighted-average maturity of the available-for-sale investment securities was 4.0 years at September 30, 2012, compared with 5.2 years at December 31, 2011. The corresponding weighted-average yields were 3.04 percent and 3.19 percent, respectively. The weighted-average maturity of the held-to-maturity investment securities was 3.1 years at September 30, 2012, and 3.9 years at December 31, 2011. The corresponding weighted-average yields were 2.06 percent and 2.21 percent, respectively.

For amortized cost, fair value and yield by maturity date of held-to-maturity and available-for-sale investment securities outstanding at September 30, 2012, refer to Table 4 included in Management’s Discussion and Analysis which is incorporated by reference into these Notes to Consolidated Financial Statements.

Investment securities with a fair value of $16.5 billion at September 30, 2012, and $20.7 billion at December 31, 2011, were pledged to secure public, private and trust deposits, repurchase agreements and for other purposes required by contractual obligation or law. Included in these amounts were securities where the Company and certain counterparties have agreements granting the counterparties the right to sell or pledge the securities. Investment securities delivered under these types of arrangements had a fair value of $3.4 billion at September 30, 2012, and $7.0 billion at December 31, 2011.

The following table provides information about the amount of interest income from taxable and non-taxable investment securities:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in Millions)	2012		2011		2012		2011
Taxable	$	369	$	394	$	1,166	$	1,127
Non-taxable		69		76		210		230
Total interest income from investment securities	$	438	$	470	$	1,376	$	1,357

The following table provides information about the amount of gross gains and losses realized through the sales of available-for-sale investment securities:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Realized gains	$	115		$	4		$	145		$	6
Realized losses		(99	)		(4	)		(99	)		(4	)
Net realized gains (losses)	$	16		$	–		$	46		$	2
Income tax (benefit) on net realized gains (losses)	$	7		$	–		$	18		$	1

In 2007, the Company purchased certain structured investment securities (“SIVs”) from certain money market funds managed by an affiliate of the Company. Subsequent to the initial purchase, the Company exchanged its interest in the SIVs for a pro-rata portion of the underlying investment securities according to the applicable restructuring agreements. The SIVs and the investment securities received are collectively referred to as “SIV-related securities”. During the third quarter of 2012, the Company sold essentially all of the SIV-related securities.

Some of the SIV-related securities evidenced credit deterioration at the time of acquisition by the Company. All investment securities with evidence of credit deterioration at acquisition have been subsequently sold by the Company as of September 30, 2012. Changes in the accretable balance for these investment securities were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	93		$	117		$	100		$	139
Accretion		(3	)		(4	)		(11	)		(13	)
Disposals		(90	)		–			(90	)		–
Other (a)		–			(6	)		1			(19	)
Balance at end of period	$	–		$	107		$	–		$	107

(a) Primarily represents changes in projected future cash flows related to variable rates on certain investment securities.

The Company conducts a regular assessment of its investment securities with unrealized losses to determine whether investment securities are other-than-temporarily impaired considering, among other factors, the nature of the investment securities, credit ratings or financial condition of the issuer, the extent and duration of the unrealized loss, expected cash flows of underlying collateral, market conditions and whether the Company intends to sell or it is more likely than not the Company will be required to sell the investment securities.

The following tables summarize other-than-temporary impairment by investment category:

	2012										2011
Three Months Ended September 30 (Dollars in Millions)		Losses Recorded in Earnings			Other Gains (Losses) (c)			Total			Losses Recorded in Earnings			Other Gains (Losses) (c)			Total
Available-for-sale
Mortgage-backed securities
Non-agency residential
Prime (a)		$	(5	)	$	(3	)	$	(8	)	$	–		$	–		$	–
Non-prime (b)			(10	)		5			(5	)		(6	)		(4	)		(10	)
Other asset-backed securities			–			–			–			(3	)		2			(1	)
Total available-for-sale		$	(15	)	$	2		$	(13	)	$	(9	)	$	(2	)	$	(11	)

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

(c) Losses represent the non-credit portion of other-than-temporary impairment recorded in other comprehensive income for investment securities determined to be other-than-temporarily impaired during the period. Gains represent recoveries in the fair value of securities that have or previously had non-credit other-than-temporary impairment.

	2012									2011
Nine Months Ended September 30 (Dollars in Millions)	Losses Recorded in Earnings			Other Gains (Losses) (c)			Total			Losses Recorded in Earnings			Other Gains (Losses) (c)			Total
Available-for-sale
Mortgage-backed securities
Non-agency residential
Prime (a)	$	(8	)	$	(12	)	$	(20	)	$	(2	)	$	(3	)	$	(5	)
Non-prime (b)		(27	)		15			(12	)		(18	)		(16	)		(34	)
Commercial non-agency		(1	)		(1	)		(2	)		–			–			–
Other asset-backed securities		(1	)		1			–			(4	)		2			(2	)
Perpetual preferred securities		(27	)		–			(27	)		–			–			–
Total available-for-sale	$	(64	)	$	3		$	(61	)	$	(24	)	$	(17	)	$	(41	)

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

(c) Losses represent the non-credit portion of other-than-temporary impairment recorded in other comprehensive income for investment securities determined to be other-than-temporarily impaired during the period. Gains represent recoveries in the fair value of securities that have or previously had non-credit other-than-temporary impairment.

The Company determined the other-than-temporary impairment recorded in earnings for debt securities not intended to be sold by estimating the future cash flows of each individual investment security, using market information where available, and discounting the cash flows at the original effective rate of the investment security. Other-than-temporary impairment recorded in other comprehensive income (loss) was measured as the difference between that discounted amount and the fair value of each investment security. For perpetual preferred securities determined to be other-than-temporarily impaired, the Company recorded a loss in earnings for the entire difference between the securities’ fair value and their amortized cost.

The following table includes the ranges for principal assumptions used for those available-for-sale non-agency mortgage-backed securities determined to be other-than-temporarily impaired:

	Prime (a)									Non-Prime (b)
	Minimum			Maximum			Average			Minimum			Maximum			Average
September 30, 2012
Estimated lifetime prepayment rates		7	%		18	%		14	%		3	%		10	%		6	%
Lifetime probability of default rates		2			4			3			2			10			6
Lifetime loss severity rates		25			50			40			20			60			51
December 31, 2011
Estimated lifetime prepayment rates		4	%		15	%		14	%		2	%		11	%		6	%
Lifetime probability of default rates		2			9			3			1			20			5
Lifetime loss severity rates		40			50			46			8			70			52

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

Changes in the credit losses on debt securities (excludes perpetual preferred securities) are summarized as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	277		$	319		$	298		$	358
Additions to credit losses due to other-than-temporary impairments
Credit losses on securities not previously considered other-than-temporarily impaired		2			1			5			3
Decreases in expected cash flows on securities for which other-than-temporary impairment was previously recognized		13			8			32			21
Total other-than-temporary impairment on debt securities		15			9			37			24
Other changes in credit losses
Increases in expected cash flows		–			(3	)		(14	)		(20	)
Realized losses (a)		(4	)		(19	)		(33	)		(55	)
Credit losses on security sales and securities expected to be sold		(142	)		–			(142	)		(1	)
Balance at end of period	$	146		$	306		$	146		$	306

(a) Primarily represents principal losses allocated to mortgage and asset-backed securities in the Company’s portfolio under the terms of the securitization transaction documents.

At September 30, 2012, certain investment securities had a fair value below amortized cost. The following table shows the gross unrealized losses and fair value of the Company’s investment securities with unrealized losses, aggregated by investment category and length of time the individual investment securities have been in continuous unrealized loss positions, at September 30, 2012:

	Less Than 12 Months					12 Months or Greater					Total
(Dollars in Millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Held-to-maturity
Mortgage-backed securities
Residential
Agency	$	1,563	$	(3	)	$	7	$	–		$	1,570	$	(3	)
Non-agency non-prime (a)(c)		–		–			1		–			1		–
Commercial non-agency		–		–			3		–			3		–
Other asset-backed securities		1		–			11		(6	)		12		(6	)
Obligations of state and political subdivisions		–		–			5		–			5		–
Other debt securities		–		–			99		(19	)		99		(19	)
Total held-to-maturity	$	1,564	$	(3	)	$	126	$	(25	)	$	1,690	$	(28	)
Available-for-sale
U.S. Treasury and agencies	$	10	$	–		$	–	$	–		$	10	$	–
Mortgage-backed securities
Residential
Agency		3,005		(6	)		153		–			3,158		(6	)
Non-agency (a)
Prime (b)		–		–			625		(48	)		625		(48	)
Non-prime (c)		–		–			311		(49	)		311		(49	)
Other asset-backed securities		–		–			2		(1	)		2		(1	)
Obligations of state and political subdivisions		89		–			4		–			93		–
Obligations of foreign governments		6		–			–		–			6		–
Corporate debt securities		–		–			624		(106	)		624		(106	)
Perpetual preferred securities		22		–			140		(19	)		162		(19	)
Other investments		–		–			3		–			3		–
Total available-for-sale	$	3,132	$	(6	)	$	1,862	$	(223	)	$	4,994	$	(229	)

(a) The Company has $97 million of unrealized losses on residential non-agency mortgage-backed securities. Credit-related other-than-temporary impairment on these securities may occur if there is further deterioration in the underlying collateral pool performance. Borrower defaults may increase if current economic conditions persist or worsen. Additionally, further deterioration in home prices may increase the severity of projected losses.

(b) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(c) Includes all securities not meeting the conditions to be designated as prime.

The Company does not consider these unrealized losses to be credit-related. These unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. A substantial portion of investment securities that have unrealized losses are either corporate debt or mortgage-backed securities issued with high investment grade credit ratings. In general, the issuers of the investment securities are contractually prohibited from prepayment at less than par, and the Company did not pay significant purchase premiums for these investment securities. At September 30, 2012, the Company had no plans to sell investment securities with unrealized losses, and believes it is more likely than not it would not be required to sell such investment securities before recovery of their amortized cost.

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MSRs and Related Characteristics by Portfolio (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012 BasisPoint Y Multiple		Jun. 30, 2012	Dec. 31, 2011 BasisPoint Multiple Y		Sep. 30, 2011	Jun. 30, 2011	Dec. 31, 2010
Servicing Assets at Fair Value [Line Items]
Servicing portfolio	$ 211,263			$ 191,082
Fair market value	1,553		1,594	1,519		1,466	1,989	1,837
Value (bps)	74	[1]		79	[1]
Weighted-average servicing fees (bps)	31			31
Multiple (value/servicing fees)	2.39			2.55
Weighted-average note rate	4.68%			5.03%
Weighted-average age (in years)	2.6			2.8
Weighted-average expected prepayment (constant prepayment rate)	22.20%			21.30%
Weighted-average expected life (in years)	3.8			4.0
Weighted-average discount rate	10.40%			10.40%
MRBP
Servicing Assets at Fair Value [Line Items]
Servicing portfolio	13,939			13,357
Fair market value	154			155
Value (bps)	110	[1]		116	[1]
Weighted-average servicing fees (bps)	40			40
Multiple (value/servicing fees)	2.75			2.90
Weighted-average note rate	5.24%			5.50%
Weighted-average age (in years)	4.2			4.2
Weighted-average expected prepayment (constant prepayment rate)	13.10%			12.90%
Weighted-average expected life (in years)	6.2			6.4
Weighted-average discount rate	12.10%			12.10%
Government
Servicing Assets at Fair Value [Line Items]
Servicing portfolio	38,162			32,567
Fair market value	304			290
Value (bps)	80	[1]		89	[1]
Weighted-average servicing fees (bps)	34			36
Multiple (value/servicing fees)	2.35			2.47
Weighted-average note rate	4.69%			5.08%
Weighted-average age (in years)	2.4			2.5
Weighted-average expected prepayment (constant prepayment rate)	21.60%			21.10%
Weighted-average expected life (in years)	4.0			4.0
Weighted-average discount rate	11.40%			11.30%
Conventional
Servicing Assets at Fair Value [Line Items]
Servicing portfolio	159,162	[2]		145,158	[2]
Fair market value	$ 1,095	[2]		$ 1,074	[2]
Value (bps)	69	[1],[2]		74	[1],[2]
Weighted-average servicing fees (bps)	30	[2]		29	[2]
Multiple (value/servicing fees)	2.30	[2]		2.55	[2]
Weighted-average note rate	4.63%	[2]		4.97%	[2]
Weighted-average age (in years)	2.5	[2]		2.8	[2]
Weighted-average expected prepayment (constant prepayment rate)	23.10%	[2]		22.10%	[2]
Weighted-average expected life (in years)	3.5	[2]		3.8	[2]
Weighted-average discount rate	10.00%	[2]		10.00%	[2]

[1] Value is calculated as fair market value divided by the servicing portfolio.

[2] Represents loans sold primarily to GSEs.

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Summary of Ranges Used in Valuation of Non-Agency Mortgage-Backed Securities Other Than Temporarily Impaired (Detail)	Sep. 30, 2012		Dec. 31, 2011
Prime Minimum
Principal Valuation Assumptions Debt Securities Other Than Temporarily Impaired [Line Items]
Estimated lifetime prepayment rates	7.00%		4.00%
Lifetime probability of default rates	2.00%		2.00%
Lifetime loss severity rates	25.00%		40.00%
Prime Maximum
Principal Valuation Assumptions Debt Securities Other Than Temporarily Impaired [Line Items]
Estimated lifetime prepayment rates	18.00%	[1]	15.00%	[1]
Lifetime probability of default rates	4.00%	[1]	9.00%	[1]
Lifetime loss severity rates	50.00%	[1]	50.00%	[1]
Prime Average
Principal Valuation Assumptions Debt Securities Other Than Temporarily Impaired [Line Items]
Estimated lifetime prepayment rates	14.00%		14.00%
Lifetime probability of default rates	3.00%		3.00%
Lifetime loss severity rates	40.00%		46.00%
Non-Prime Minimum
Principal Valuation Assumptions Debt Securities Other Than Temporarily Impaired [Line Items]
Estimated lifetime prepayment rates	3.00%		2.00%
Lifetime probability of default rates	2.00%		1.00%
Lifetime loss severity rates	20.00%		8.00%
Non-Prime Maximum
Principal Valuation Assumptions Debt Securities Other Than Temporarily Impaired [Line Items]
Estimated lifetime prepayment rates	10.00%	[2]	11.00%	[2]
Lifetime probability of default rates	10.00%	[2]	20.00%	[2]
Lifetime loss severity rates	60.00%	[2]	70.00%	[2]
Non-Prime Average
Principal Valuation Assumptions Debt Securities Other Than Temporarily Impaired [Line Items]
Estimated lifetime prepayment rates	6.00%		6.00%
Lifetime probability of default rates	6.00%		5.00%
Lifetime loss severity rates	51.00%		52.00%

[1] Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

[2] Includes all securities not meeting the conditions to be designated as prime.

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2012

Components of Income Tax Expense

The components of income tax expense were:

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in Millions)	2012		2011			2012		2011
Federal
Current	$	461	$	450		$	1,416	$	907
Deferred		50		(41	)		26		232
Federal income tax		511		409			1,442		1,139
State
Current		77		85			239		157
Deferred		5		(4	)		3		18
State income tax		82		81			242		175
Total income tax provision	$	593	$	490		$	1,684	$	1,314

Reconciliation of Expected Income Tax Expense at Federal Statutory Rate of 35% to Company's Applicable Income Tax Expense

A reconciliation of expected income tax expense at the federal statutory rate of 35 percent to the Company’s applicable income tax expense follows:

	Three Months Ended September 30,						Nine Months Ended   September 30,
(Dollars in Millions)	2012			2011			2012			2011
Tax at statutory rate	$	709		$	610		$	2,030		$	1,671
State income tax, at statutory rates, net of federal tax benefit		53			53			157			114
Tax effect of
Tax credits, net of related expenses		(120	)		(124	)		(322	)		(319	)
Tax-exempt income		(55	)		(57	)		(165	)		(170	)
Noncontrolling interests		15			8			39			22
Other items		(9	)		—			(55	)		(4	)
Applicable income taxes	$	593		$	490		$	1,684		$	1,314

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Employee Benefits (Tables)

9 Months Ended

Sep. 30, 2012

Components of Net Periodic Benefit Cost

The components of net periodic benefit cost for the Company’s retirement plans were:

	Three Months Ended September 30,												Nine Months Ended September 30,
	Pension Plans						Postretirement Welfare Plan						Pension Plans						Postretirement Welfare Plan
(Dollars in Millions)	2012			2011			2012			2011			2012			2011			2012			2011
Service cost	$	33		$	30		$	2		$	1		$	97		$	89		$	4		$	3
Interest cost		42			42			1			3			126			126			5			7
Expected return on plan assets		(48	)		(52	)		(1	)		(1	)		(143	)		(155	)		(2	)		(3	)
Prior service cost (credit) and transition obligation (asset) amortization		(2	)		(2	)		—			—			(4	)		(7	)		—			—
Actuarial loss (gain) amortization		41			31			(1	)		(2	)		121			94			(5	)		(5	)
Net periodic benefit cost	$	66		$	49		$	1		$	1		$	197		$	147		$	2		$	2

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Loans Modified as TDRs have Subsequently been Fully or Partially Charged-Off (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012 SecurityLoan	Sep. 30, 2011 SecurityLoan	Sep. 30, 2012 SecurityLoan	Sep. 30, 2011 SecurityLoan
Financing Receivable, Modifications [Line Items]
Number of Loans	3,305	2,536	9,938	7,324
Amount Defaulted	$ 99	$ 107	$ 519	$ 274
Commercial Loan
Financing Receivable, Modifications [Line Items]
Number of Loans	195	245	652	513
Amount Defaulted	2	13	33	23
Commercial Real Estate
Financing Receivable, Modifications [Line Items]
Number of Loans	13	29	96	37
Amount Defaulted	12	32	176	37
Residential Mortgage
Financing Receivable, Modifications [Line Items]
Number of Loans	116	96	427	536
Amount Defaulted	30	20	64	112
Credit Card
Financing Receivable, Modifications [Line Items]
Number of Loans	2,536	1,803	7,452	5,366
Amount Defaulted	14	9	42	27
Other Retail
Financing Receivable, Modifications [Line Items]
Number of Loans	189	141	531	397
Amount Defaulted	4	2	8	9
Total loans, excluding GNMA and covered loans
Financing Receivable, Modifications [Line Items]
Number of Loans	3,049	2,314	9,158	6,849
Amount Defaulted	62	76	323	208
Loans purchased from GNMA
Financing Receivable, Modifications [Line Items]
Number of Loans	248	222	731	475
Amount Defaulted	34	31	106	66
Covered loans
Financing Receivable, Modifications [Line Items]
Number of Loans	8		49
Amount Defaulted	$ 3		$ 90

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Changes in Credit Losses on Debt Securities Excluding Perpetual Preferred Securities (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2012		Sep. 30, 2011		Sep. 30, 2012		Sep. 30, 2011
Balance at beginning of period	$ 277		$ 319		$ 298		$ 358
Credit losses on securities not previously considered other-than-temporarily impaired	2		1		5		3
Decreases in expected cash flows on securities for which other-than-temporary impairment was previously recognized	13		8		32		21
Total other-than-temporary impairment on debt securities	15		9		37		24
Increases in expected cash flows			(3)		(14)		(20)
Realized losses	(4)	[1]	(19)	[1]	(33)	[1]	(55)	[1]
Credit losses on security sales and securities expected to be sold	(142)				(142)		(1)
Balance at end of period	$ 146		$ 306		$ 146		$ 306

[1] Primarily represents principal losses allocated to mortgage and asset-backed securities in the Company's portfolio under the terms of the securitization transaction documents.

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Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Derivative Position of Company

The following table provides information on the fair value of the Company’s derivative positions:

	September 30, 2012						December 31, 2011
(Dollars in Millions)	Asset Derivatives			Liability Derivatives			Asset Derivatives			Liability Derivatives
Total fair value of derivative positions	$	2,176		$	2,640		$	1,913		$	2,554
Netting (a)		(354	)		(1,687	)		(294	)		(1,889	)
Total	$	1,822		$	953		$	1,619		$	665

(a) Represents netting of derivative asset and liability balances, and related collateral, with the same counterparty subject to master netting agreements. At September 30, 2012, the amount of cash and money market investments collateral posted by counterparties that was netted against derivative assets was $89 million and the amount of cash collateral posted by the Company that was netted against derivative liabilities was $1.4 billion, compared with $88 million and $1.7 billion, respectively, at December 31, 2011.

Asset and Liability Management Derivative Positions of Company

The following table summarizes the asset and liability management derivative positions of the Company:

	Asset Derivatives						Liability Derivatives
(Dollars in Millions)	Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years		Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years
September 30, 2012
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	500	$	30		3.34	$	–	$	–		–
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		–		–		–		4,468		771		3.96
Receive fixed/pay floating swaps		7,000		51		2.10		–		–		–
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		15,159		311		.08		107		1		.04
Sell		2,720		7		.14		17,673		389		.08
Options
Purchased		2,250		–		.07		–		–		–
Written		6,097		204		.12		8		1		.19
Receive fixed/pay floating swaps		3,975		45		10.23		–		–		–
Foreign exchange forward contracts		1,125		7		.02		1,446		5		.03
Equity contracts		32		–		.53		33		1		2.72
Credit contracts		909		3		4.45		2,005		10		3.28
December 31, 2011
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps		500		27		4.09		–		–		–
Foreign exchange cross-currency swaps		688		17		5.17		432		23		5.17
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		–		–		–		4,788		803		4.03
Receive fixed/pay floating swaps		750		–		2.75		6,250		6		2.86
Net investment hedges
Foreign exchange forward contracts		708		4		.08		–		–		–
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		14,270		150		.07		29		–		.12
Sell		231		1		.15		14,415		134		.11
Options
Purchased		1,250		–		.07		–		–		–
Written		4,421		80		.10		11		1		.13
Receive fixed/pay floating swaps		2,625		9		10.21		–		–		–
Foreign exchange forward contracts		307		1		.08		1,414		11		.08
Equity contracts		54		1		1.05		10		–		.64
Credit contracts		800		7		3.71		1,600		8		3.59

Customer-Related Derivative Positions of Company

The following table summarizes the customer-related derivative positions of the Company:

	Asset Derivatives						Liability Derivatives
(Dollars in Millions)	Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years		Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years
September 30, 2012
Interest rate contracts
Receive fixed/pay floating swaps	$	17,262	$	1,186		4.74	$	359	$	8		16.45
Pay fixed/receive floating swaps		280		8		19.79		17,433		1,148		4.76
Options
Purchased		3,014		15		5.34		28		–		4.67
Written		202		–		.73		2,839		15		5.66
Foreign exchange rate contracts
Forwards, spots and swaps (a)		11,038		301		.36		10,799		283		.45
Options
Purchased		346		8		.65		–		–		–
Written		–		–		–		346		8		.65
December 31, 2011
Interest rate contracts
Receive fixed/pay floating swaps		16,230		1,216		4.98		523		1		2.52
Pay fixed/receive floating swaps		99		–		1.81		16,206		1,182		5.10
Options
Purchased		2,660		26		6.11		–		–		–
Written		–		–		–		2,660		26		6.11
Foreign exchange rate contracts
Forwards, spots and swaps (a)		7,936		369		.54		7,731		354		.54
Options
Purchased		127		5		.41		–		–		–
Written		–		–		–		127		5		.41

(a) Reflects the net of long and short positions.

Summary of Effective Portion of Gains (Losses) Recognized in Other Comprehensive Income (Loss) and Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings

The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax):

	Three Months Ended September 30,												Nine Months Ended September 30,
	Gains (Losses) Recognized in Other Comprehensive Income (Loss)						Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings						Gains (Losses) Recognized in Other Comprehensive Income (Loss)						Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)	2012			2011			2012			2011			2012			2011			2012			2011
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts (a)	$	(19	)	$	(120	)	$	(33	)	$	(34	)	$	(42	)	$	(199	)	$	(98	)	$	(103	)
Net investment hedges
Foreign exchange forward contracts		–			(57	)		–			–			(6	)		(104	)		–			–
Non-derivative debt instruments		(11	)		–			–			–			26			–			–			–

Note: Ineffectiveness on cash flow and net investment hedges was not material for the three and nine months ended September 30, 2012 and 2011.

(a) Gains (Losses) reclassified from other comprehensive income (loss) into interest income on loans and interest expense on long-term debt.

Summary of Gains (Losses) Recognized in Earnings for Fair Value Hedges, Other Economic Hedges and Customer-Related Positions

The table below shows the gains (losses) recognized in earnings for fair value hedges, other economic hedges and the customer-related positions:

	Location of Gains (Losses) Recognized in Earnings		Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)			2012			2011			2012			2011
Asset and Liability Management Positions
Fair value hedges (a)
Interest rate contracts		Other noninterest income	$	2		$	1		$	5		$	25
Foreign exchange cross-currency swaps		Other noninterest income		–			(111	)		42			(13	)
Other economic hedges
Interest rate contracts
Futures and forwards		Mortgage banking revenue		(44	)		17			67			(7	)
Purchased and written options		Mortgage banking revenue		290			181			689			323
Receive fixed/pay floating swaps		Mortgage banking revenue		48			377			186			479
Pay fixed/receive floating swaps		Mortgage banking revenue		–			4			–			4
Foreign exchange forward contracts		Commercial products revenue		(25	)		(48	)		(62	)		(66	)
Equity contracts		Compensation expense		1			1			2			2
Credit contracts		Other noninterest income/expense		(2	)		4			(8	)		2
Customer-Related Positions
Interest rate contracts
Receive fixed/pay floating swaps		Other noninterest income		(16	)		366			(10	)		352
Pay fixed/receive floating swaps		Other noninterest income		19			(376	)		15			(365	)
Foreign exchange rate contracts
Forwards, spots and swaps		Commercial products revenue		13			14			36			41

(a) Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were $(2) million and zero for the three months ended September 30, 2012, respectively, and $(3) million and $117 million for the three months ended September 30, 2011, respectively. Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were $(5) million and $(44) million for the nine months ended September 30, 2012, respectively, and $(27) million and $20 million for the nine months ended September 30, 2011, respectively. The ineffective portion was immaterial for the three and nine months ended September 30, 2012 and 2011.

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Fair Values of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2012

Valuation Assumption Ranges for Level 3 Available-for-Sale Investment Securities

The following table shows the significant valuation assumption ranges for Level 3 available-for-sale investment securities at September 30, 2012:

	Minimum			Maximum			Average
Residential Prime Non-Agency Mortgage-Backed Securities (a)
Estimated lifetime prepayment rates		6	%		20	%		13	%
Lifetime probability of default rates		–			5			3
Lifetime loss severity rates		25			80			42
Discount margin		3			7			5
Residential Non-Prime Non-Agency Mortgage-Backed Securities (b)
Estimated lifetime prepayment rates		2	%		10	%		6	%
Lifetime probability of default rates		3			10			6
Lifetime loss severity rates		20			70			53
Discount margin		3			9			6
Other Asset-Backed Securities
Estimated lifetime prepayment rates		6	%		6	%		6	%
Lifetime probability of default rates		4			4			4
Lifetime loss severity rates		40			40			40
Discount margin		18			18			18

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

Valuation Assumption Ranges for MSRs

The following table shows the significant valuation assumption ranges for MSRs at September 30, 2012:

	Minimum			Maximum			Average
Expected prepayment		14	%		35	%		22	%
Discount rate		10			14			10

Valuation Assumption Ranges for Derivative Commitments

The following table shows the significant valuation assumption ranges for the Company’s derivative commitments to sell, purchase and originate mortgage loans at September 30, 2012:

	Minimum			Maximum			Average
Expected loan close rate		9	%		100	%		73	%
Inherent MSR value (basis points per loan)		10			195			99

Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis:

(Dollars in Millions)	Level 1		Level 2		Level 3		Netting			Total
September 30, 2012
Available-for-sale securities
U.S. Treasury and agencies	$	504	$	239	$	–	$	–		$	743
Mortgage-backed securities
Residential
Agency		–		29,362		–		–			29,362
Non-agency
Prime (a)		–		–		631		–			631
Non-prime (b)		–		–		340		–			340
Commercial
Agency		–		202		–		–			202
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		–		42		–		–			42
Other		–		582		16		–			598
Obligations of state and political subdivisions		–		6,457		–		–			6,457
Obligations of foreign governments		–		6		–		–			6
Corporate debt securities		–		700		9		–			709
Perpetual preferred securities		–		278		–		–			278
Other investments		256		12		–		–			268
Total available-for-sale		760		37,880		996		–			39,636
Mortgage loans held for sale		–		9,815		–		–			9,815
Mortgage servicing rights		–		–		1,553		–			1,553
Derivative assets		–		637		1,539		(354	)		1,822
Other assets		179		554		–		–			733
Total	$	939	$	48,886	$	4,088	$	(354	)	$	53,559
Derivative liabilities	$	–	$	2,591	$	49	$	(1,687	)	$	953
Other liabilities		39		553		–		–			592
Total	$	39	$	3,144	$	49	$	(1,687	)	$	1,545
December 31, 2011
Available-for-sale securities
U.S. Treasury and agencies	$	562	$	495	$	–	$	–		$	1,057
Mortgage-backed securities
Residential
Agency		–		40,314		–		–			40,314
Non-agency
Prime (a)		–		–		803		–			803
Non-prime (b)		–		–		802		–			802
Commercial
Agency		–		140		–		–			140
Non-agency		–		–		42		–			42
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		–		86		120		–			206
Other		–		564		117		–			681
Obligations of state and political subdivisions		–		6,539		–		–			6,539
Obligations of foreign governments		–		6		–		–			6
Corporate debt securities		–		818		9		–			827
Perpetual preferred securities		–		318		–		–			318
Other investments		193		9		–		–			202
Total available-for-sale		755		49,289		1,893		–			51,937
Mortgage loans held for sale		–		6,925		–		–			6,925
Mortgage servicing rights		–		–		1,519		–			1,519
Derivative assets		–		632		1,281		(294	)		1,619
Other assets		146		467		–		–			613
Total	$	901	$	57,313	$	4,693	$	(294	)	$	62,613
Derivative liabilities	$	–	$	2,501	$	53	$	(1,889	)	$	665
Other liabilities		75		538		–		–			613
Total	$	75	$	3,039	$	53	$	(1,889	)	$	1,278

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

Changes in Fair Value for All Assets and Liabilities Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level 3)

The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended September 30:

(Dollars in Millions)	Beginning of Period Balance		Net Gains (Losses) Included in Net Income			Net Gains (Losses) Included in Other Comprehensive Income (Loss)			Purchases		Sales			Principal Payments			Issuances			Settlements			End of Period Balance		Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period
2012
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	713	$	(4	)	$	23		$	–	$	(61	)	$	(40	)	$	–		$	–		$	631	$	26
Non-prime (b)		796		(8	)		132			–		(562	)		(18	)		–			–			340		23
Commercial non-agency		37		–			2			–		(39	)		–			–			–			–		–
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		102		2			(7	)		–		(96	)		(1	)		–			–			–		–
Other		112		1			(4	)		3		(93	)		(3	)		–			–			16		2
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		1,769		(9	)(c)		146	(f)		3		(851	)		(62	)		–			–			996		51
Mortgage servicing rights		1,594		(275	)(d)		–			10		–			–			224	(g)		–			1,553		(275	)(d)
Net derivative assets and liabilities		1,360		843	(e)		–			1		(1	)		–			–			(713	)		1,490		(557	)(h)
2011
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	896	$	1		$	(2	)	$	–	$	–		$	(36	)	$	–		$	–		$	859	$	(2	)
Non-prime (b)		895		(2	)		(5	)		–		–			(31	)		–			–			857		(5	)
Commercial non-agency		50		1			(1	)		–		(4	)		(1	)		–			–			45		–
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		133		3			(2	)		–		–			(9	)		–			–			125		(2	)
Other		129		1			(4	)		–		–			(6	)		–			–			120		(4	)
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		2,112		4	(i)		(14	)(f)		–		(4	)		(83	)		–			–			2,015		(13	)
Mortgage servicing rights		1,989		(629	)(d)		–			5		–			–			101	(g)		–			1,466		(629	)(d)
Net derivative assets and liabilities		836		836	(j)		–			–		(2	)		–			–			(340	)		1,330		77	(k)

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

(c) Approximately $(15) million included in securities gains (losses) and $6 million included in interest income.

(d) Included in mortgage banking revenue.

(e) Approximately $124 million included in other noninterest income and $719 million included in mortgage banking revenue.

(f) Included in changes in unrealized gains and losses on securities available-for-sale.

(g) Represents MSRs capitalized during the period.

(h) Approximately $7 million included in other noninterest income and $(564) million included in mortgage banking revenue.

(i) Approximately $(9) million included in other securities gains (losses) and $13 million included in interest income.

(j) Approximately $445 million included in other noninterest income and $391 million included in mortgage banking revenue.

(k) Approximately $317 million included in other noninterest income and $(240) million included in mortgage banking revenue.

The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30:

(Dollars in Millions)	Beginning of Period Balance		Net Gains (Losses) Included in Net Income			Net Gains (Losses) Included in Other Comprehensive Income (Loss)			Purchases		Sales			Principal Payments			Issuances			Settlements			End of Period Balance		Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period
2012
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	803	$	(5	)	$	60		$	–	$	(109	)	$	(118	)	$	–		$	–		$	631	$	58
Non-prime (b)		802		(18	)		197			–		(562	)		(79	)		–			–			340		52
Commercial non-agency		42		1			–			–		(39	)		(4	)		–			–			–		–
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		120		12			(8	)		–		(103	)		(21	)		–			–			–		–
Other		117		7			–			3		(93	)		(18	)		–			–			16		2
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		1,893		(3	)(c)		249	(f)		3		(906	)		(240	)		–			–			996		112
Mortgage servicing rights		1,519		(705	)(d)		–			39		–			–			700	(g)		–			1,553		(705	)(d)
Net derivative assets and liabilities		1,228		2,050	(e)		–			1		(3)			–			–			(1,786	)		1,490		(1,407	)(h)
2011
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	1,103	$	4		$	22		$	–	$	(115	)	$	(155	)	$	–		$	–		$	859	$	14
Non-prime (b)		947		(4	)		27			–		(12	)		(101	)		–			–			857		26
Commercial non-agency		50		2			(1	)		–		(4	)		(2	)		–			–			45		–
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		135		10			6			–		–			(26	)		–			–			125		7
Other		133		8			(2	)		–		–			(19	)		–			–			120		(2	)
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		2,377		20	(i)		52	(f)		–		(131	)		(303	)		–			–			2,015		45
Mortgage servicing rights		1,837		(803	)(d)		–			16		–			–			416	(g)		–			1,466		(803	)(d)
Net derivative assets and liabilities		851		1,252	(j)		–			–		(5	)		–			–			(768	)		1,330		(92	)(k)

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

(c) Approximately $(37) million included in securities gains (losses) and $34 million included in interest income.

(d) Included in mortgage banking revenue.

(e) Approximately $344 million included in other noninterest income and $1.7 billion included in mortgage banking revenue.

(f) Included in changes in unrealized gains and losses on securities available-for-sale.

(g) Represents MSRs capitalized during the period.

(h) Approximately $6 million included in other noninterest income and $1.4 billion included in mortgage banking revenue.

(i) Approximately $(24) million included in securities gains (losses) and $44 million included in interest income.

(j) Approximately $672 million included in other noninterest income and $580 million included in mortgage banking revenue.

(k) Approximately $303 million included in other noninterest income and $(395) million included in mortgage banking revenue.

Adjusted Carrying Values for Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes the adjusted carrying values and the level of valuation assumptions for assets measured at fair value on a nonrecurring basis:

	September 30, 2012								December 31, 2011
(Dollars in Millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Loans (a)	$	–	$	–	$	138	$	138	$	–	$	–	$	168	$	168
Other assets (b)		–		–		204		204		–		–		310		310

(a) Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off.

(b) Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition.

Losses Recognized Related to Nonrecurring Fair Value Measurements of Individual Assets or Portfolios

The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or portfolios:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in Millions)	2012		2011		2012		2011
Loans (a)	$	12	$	32	$	51	$	153
Other assets (b)		42		81		129		230

(a) Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off.

(b) Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.

Differences between Aggregate Fair Value, Carrying Amount of MLHFS and Aggregate Unpaid Principal Amount

The following table summarizes the differences between the aggregate fair value carrying amount of MLHFS for which the fair value option has been elected and the aggregate unpaid principal amount that the Company is contractually obligated to receive at maturity:

	September 30, 2012							December 31, 2011
(Dollars in Millions)	Fair Value Carrying Amount		Aggregate Unpaid Principal		Carrying Amount Over (Under) Unpaid Principal			Fair Value Carrying Amount		Aggregate Unpaid Principal		Carrying Amount Over (Under) Unpaid Principal
Total loans	$	9,815	$	9,215	$	600		$	6,925	$	6,635	$	290
Nonaccrual loans		8		13		(5	)		10		15		(5	)
Loans 90 days or more past due		2		3		(1	)		3		4		(1	)

Estimated Fair Values of Financial Instruments

The estimated fair values of the Company’s financial instruments are shown in the table below:

	September 30, 2012										December 31, 2011
	Carrying Amount		Fair Value								Carrying Amount		Fair Value
(Dollars in Millions)			Level 1		Level 2		Level 3		Total
Financial Assets
Cash and due from banks	$	9,382	$	9,382	$	–	$	–	$	9,382	$	13,962	$	13,962
Federal funds sold and securities purchased under resale agreements		166		–		166		–		166		64		64
Investment securities held-to-maturity		34,509		2,441		32,719		66		35,226		18,877		19,216
Mortgages held for sale (a)		–		–		–		–		–		3		3
Other loans held for sale		64		–		–		64		64		228		228
Loans		213,669		–		–		216,105		216,105		205,082		206,646
Other financial instruments		6,991		–		1,246		5,771		7,017		6,095		6,140
Financial Liabilities
Deposits		244,232		–		244,690		–		244,690		230,885		231,184
Short-term borrowings		27,853		–		27,885		–		27,885		30,468		30,448
Long-term debt		26,264		–		27,264		–		27,264		31,953		32,664

(a) Balance excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected.

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Basis of Presentation

9 Months Ended

Sep. 30, 2012

Basis of Presentation

Note 1 Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with accounting principles generally accepted in the United States. In the opinion of management of U.S. Bancorp (the “Company”), all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. Certain amounts in prior periods have been reclassified to conform to the current presentation.

Accounting policies for the lines of business are generally the same as those used in preparation of the consolidated financial statements with respect to activities specifically attributable to each business line. However, the preparation of business line results requires management to establish methodologies to allocate funding costs, expenses and other financial elements to each line of business. Table 10 “Line of Business Financial Performance” included in Management’s Discussion and Analysis provides details of segment results. This information is incorporated by reference into these Notes to Consolidated Financial Statements.

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Guarantees and Contingent Liabilities (Tables)

9 Months Ended

Sep. 30, 2012

Summary of Other Guarantees and Contingent Liabilities

The following table is a summary of other guarantees and contingent liabilities of the Company at September 30, 2012:

(Dollars in Millions)	Collateral Held		Carrying Amount		Maximum Potential Future Payments
Standby letters of credit	$	—	$	81	$	18,323
Third-party borrowing arrangements		—		—		299
Securities lending indemnifications		8,982		—		8,737
Asset sales		—		305		2,710	(a)
Merchant processing		772		80		81,280
Contingent consideration arrangements		—		3		6
Tender option bond program guarantee		5,329		—		5,047
Minimum revenue guarantees		—		17		31
Other		—		18		3,436

(a) The maximum potential future payments do not include loan sales where the Company provides standard representation and warranties to the buyer against losses related to loan underwriting documentation defects that may have existed at the time of sale that generally are identified after the occurrence of a triggering event such as delinquency. For these types of loan sales, the maximum potential future payments is generally the unpaid principal balance of loans sold measured at the end of the current reporting period. Actual losses will be significantly less than the maximum exposure, as only a fraction of loans sold will have a representation and warranty breach, and any losses on repurchase would generally be mitigated by any collateral held against the loans.

Company's Representation and Warranty Reserve

The following table is a rollforward of the Company’s representation and warranty reserve:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	216		$	173		$	160		$	180
Net realized losses		(32	)		(31	)		(88	)		(106	)
Additions to reserve		36			20			148			88
Balance at end of period	$	220		$	162		$	220		$	162

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Losses Recognized Related to Nonrecurring Fair Value Measurements of Individual Assets or Portfolios (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2012		Sep. 30, 2011		Sep. 30, 2012		Sep. 30, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans	$ 12	[1]	$ 32	[1]	$ 51	[1]	$ 153	[1]
Other assets	$ 42	[2]	$ 81	[2]	$ 129	[2]	$ 230	[2]

[1] Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off.

[2] Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.

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Amount of Gross Gains and Losses Realized through Sales of Available for Sale Investment Securities (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Realized gains	$ 115	$ 4	$ 145	$ 6
Realized losses	(99)	(4)	(99)	(4)
Net realized gains (losses)	16		46	2
Income tax (benefit) on net realized gains (losses)	$ 7		$ 18	$ 1

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Summary of Impaired Loans by Portfolio Class (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012		Dec. 31, 2011
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment (a)	$ 7,751	[1]	$ 7,952	[1]
Unpaid Principal Balance	11,491		10,821
Valuation Allowance	837		1,005
Commitments to Lend Additional Funds	48		144
Commercial Loan
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment (a)	382	[1]	657	[1]
Unpaid Principal Balance	1,341		1,437
Valuation Allowance	40		62
Commitments to Lend Additional Funds	23		68
Commercial Real Estate
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment (a)	1,214	[1]	1,436	[1]
Unpaid Principal Balance	2,466		2,503
Valuation Allowance	75		124
Commitments to Lend Additional Funds	5		25
Residential Mortgage
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment (a)	2,833	[1]	2,652	[1]
Unpaid Principal Balance	3,524		3,193
Valuation Allowance	437		482
Commitments to Lend Additional Funds			2
Credit Card
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment (a)	463	[1]	584	[1]
Unpaid Principal Balance	462		584
Valuation Allowance	167		219
Other Retail
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment (a)	408	[1]	188	[1]
Unpaid Principal Balance	455		197
Valuation Allowance	64		57
Commitments to Lend Additional Funds	7
Total loans, excluding GNMA and covered loans
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment (a)	5,300	[1]	5,517	[1]
Unpaid Principal Balance	8,248		7,914
Valuation Allowance	783		944
Commitments to Lend Additional Funds	35		95
Loans purchased from GNMA
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment (a)	1,631	[1]	1,265	[1]
Unpaid Principal Balance	1,631		1,265
Valuation Allowance	36		18
Covered loans
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment (a)	820	[1]	1,170	[1]
Unpaid Principal Balance	1,612		1,642
Valuation Allowance	18		43
Commitments to Lend Additional Funds	$ 13		$ 49

[1] Substantially all loans classified as impaired at September 30, 2012 and December 31, 2011, had an associated allowance for credit losses.

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Asset and Liability Management Derivative Positions of Company (Detail) (Asset And Liability Management Positions [Member], USD $) In Millions, unless otherwise specified	Sep. 30, 2012 Y	Dec. 31, 2011 Y
Fair value hedges | Interest rate contracts | Receive fixed/pay floating swaps
Derivative [Line Items]
Notional Value, Assets	$ 500	$ 500
Fair Value, Assets	30	27
Derivative Asset Average Remaining Maturity Period	3.34	4.09
Fair value hedges | Foreign exchange cross-currency swaps
Derivative [Line Items]
Notional Value, Assets		688
Fair Value, Assets		17
Derivative Asset Average Remaining Maturity Period		5.17
Notional Value, Liabilities		432
Fair Value, Liabilities		23
Derivative Liability Average Remaining Maturity Period		5.17
Cash flow hedges | Interest rate contracts | Receive fixed/pay floating swaps
Derivative [Line Items]
Notional Value, Assets	7,000	750
Fair Value, Assets	51
Derivative Asset Average Remaining Maturity Period	2.10	2.75
Notional Value, Liabilities		6,250
Fair Value, Liabilities		6
Derivative Liability Average Remaining Maturity Period		2.86
Cash flow hedges | Interest rate contracts | Pay fixed/receive floating swaps
Derivative [Line Items]
Notional Value, Liabilities	4,468	4,788
Fair Value, Liabilities	771	803
Derivative Liability Average Remaining Maturity Period	3.96	4.03
Other economic hedges | Interest rate contracts | Receive fixed/pay floating swaps
Derivative [Line Items]
Notional Value, Assets	3,975	2,625
Fair Value, Assets	45	9
Derivative Asset Average Remaining Maturity Period	10.23	10.21
Other economic hedges | Interest rate contracts | Futures and forwards buy
Derivative [Line Items]
Notional Value, Assets	15,159	14,270
Fair Value, Assets	311	150
Derivative Asset Average Remaining Maturity Period	0.08	0.07
Notional Value, Liabilities	107	29
Fair Value, Liabilities	1
Derivative Liability Average Remaining Maturity Period	0.04	0.12
Other economic hedges | Interest rate contracts | Futures and forwards sell
Derivative [Line Items]
Notional Value, Assets	2,720	231
Fair Value, Assets	7	1
Derivative Asset Average Remaining Maturity Period	0.14	0.15
Notional Value, Liabilities	17,673	14,415
Fair Value, Liabilities	389	134
Derivative Liability Average Remaining Maturity Period	0.08	0.11
Other economic hedges | Interest rate contracts | Purchased options
Derivative [Line Items]
Notional Value, Assets	2,250	1,250
Derivative Asset Average Remaining Maturity Period	0.07	0.07
Other economic hedges | Interest rate contracts | Written options
Derivative [Line Items]
Notional Value, Assets	6,097	4,421
Fair Value, Assets	204	80
Derivative Asset Average Remaining Maturity Period	0.12	0.10
Notional Value, Liabilities	8	11
Fair Value, Liabilities	1	1
Derivative Liability Average Remaining Maturity Period	0.19	0.13
Other economic hedges | Foreign exchange forward contracts
Derivative [Line Items]
Notional Value, Assets	1,125	307
Fair Value, Assets	7	1
Derivative Asset Average Remaining Maturity Period	0.02	0.08
Notional Value, Liabilities	1,446	1,414
Fair Value, Liabilities	5	11
Derivative Liability Average Remaining Maturity Period	0.03	0.08
Other economic hedges | Equity contracts
Derivative [Line Items]
Notional Value, Assets	32	54
Fair Value, Assets		1
Derivative Asset Average Remaining Maturity Period	0.53	1.05
Notional Value, Liabilities	33	10
Fair Value, Liabilities	1
Derivative Liability Average Remaining Maturity Period	2.72	0.64
Other economic hedges | Credit contracts
Derivative [Line Items]
Notional Value, Assets	909	800
Fair Value, Assets	3	7
Derivative Asset Average Remaining Maturity Period	4.45	3.71
Notional Value, Liabilities	2,005	1,600
Fair Value, Liabilities	10	8
Derivative Liability Average Remaining Maturity Period	3.28	3.59
Net investment hedges | Foreign exchange forward contracts
Derivative [Line Items]
Notional Value, Assets		708
Fair Value, Assets		$ 4
Derivative Asset Average Remaining Maturity Period		0.08

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Consolidated Balance Sheet (USD $) In Millions, unless otherwise specified	Sep. 30, 2012		Dec. 31, 2011
Assets
Cash and due from banks	$ 9,382		$ 13,962
Investment securities
Held-to-maturity (fair value $35,226 and $19,216, respectively; including $1,146 and $155 pledged as collateral, respectively) (a)	34,509	[1]	18,877	[1]
Available-for-sale ($2,217 and $6,831 pledged as collateral, respectively) (a)	39,636	[1],[2]	51,937	[1],[2]
Loans held for sale (included $9,815 and $6,925 of mortgage loans carried at fair value, respectively)	9,879		7,156
Loans
Commercial	62,910		56,648
Commercial real estate	36,813		35,851
Residential mortgages	41,902		37,082
Credit card	16,402		17,360
Other retail	47,965		48,107
Total loans, excluding covered loans	205,992		195,048
Covered loans	12,158		14,787
Total loans	218,150		209,835
Less allowance for loan losses	(4,481)		(4,753)
Net loans	213,669		205,082
Premises and equipment	2,650		2,657
Goodwill	8,943		8,927
Other intangible assets	2,533		2,736
Other assets	31,052		28,788
Total assets	352,253		340,122
Deposits
Noninterest-bearing	72,982		68,579
Interest-bearing	136,583		134,757
Time deposits greater than $100,000	34,667		27,549
Total deposits	244,232		230,885
Short-term borrowings	27,853		30,468
Long-term debt	26,264		31,953
Other liabilities	14,079		11,845
Total liabilities	312,428		305,151
Shareholders' equity
Preferred stock	4,769	[3]	2,606	[3]
Common stock, par value $0.01 a share-authorized: 4,000,000,000 shares; issued: 9/30/12 and 12/31/11-2,125,725,742 shares	21		21
Capital surplus	8,186		8,238
Retained earnings	33,730		30,785
Less cost of common stock in treasury: 9/30/12-245,650,205 shares; 12/31/11-215,904,019 shares	(7,442)		(6,472)
Accumulated other comprehensive income (loss)	(603)		(1,200)
Total U.S. Bancorp shareholders' equity	38,661		33,978
Noncontrolling interests	1,164		993
Total equity	39,825		34,971
Total liabilities and equity	$ 352,253		$ 340,122

[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.

[2] Available-for-sale investment securities are carried at fair value with unrealized net gains or losses reported within accumulated other comprehensive income (loss) in shareholders' equity.

[3] The par value of all shares issued and outstanding at September 30, 2012 and December 31, 2011, was $1.00 per share.

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Gross Unrealized Losses and Fair Value of the Company's Investments Securities with Unrealized Losses (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012
Schedule of Available-for-sale Securities [Line Items]
Fair Value Less Than 12 Months	$ 1,564
Unrealized Losses Less Than 12 Months	(3)
Fair Value 12 Months or Greater	126
Unrealized Losses 12 Months or Greater	(25)
Fair Value Total	1,690
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	(28)
Fair Value Less Than 12 Months	3,132
Unrealized Losses Less Than 12 Months	(6)
Fair Value 12 Months or Greater	1,862
Unrealized Losses 12 Months or Greater	(223)
Fair Value Total	4,994
Unrealized Losses Total	(229)
Asset Backed Securities Other
Schedule of Available-for-sale Securities [Line Items]
Fair Value Less Than 12 Months	1
Fair Value 12 Months or Greater	11
Unrealized Losses 12 Months or Greater	(6)
Fair Value Total	12
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	(6)
Fair Value 12 Months or Greater	2
Unrealized Losses 12 Months or Greater	(1)
Fair Value Total	2
Unrealized Losses Total	(1)
Obligations of state and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Fair Value 12 Months or Greater	5
Fair Value Total	5
Fair Value Less Than 12 Months	89
Fair Value 12 Months or Greater	4
Fair Value Total	93
Other Investments
Schedule of Available-for-sale Securities [Line Items]
Fair Value 12 Months or Greater	99
Unrealized Losses 12 Months or Greater	(19)
Fair Value Total	99
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	(19)
U.S. Treasury and Agencies
Schedule of Available-for-sale Securities [Line Items]
Fair Value Less Than 12 Months	10
Fair Value Total	10
Obligations of Foreign Governments
Schedule of Available-for-sale Securities [Line Items]
Fair Value Less Than 12 Months	6
Fair Value Total	6
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Fair Value 12 Months or Greater	624
Unrealized Losses 12 Months or Greater	(106)
Fair Value Total	624
Unrealized Losses Total	(106)
Perpetual preferred securities
Schedule of Available-for-sale Securities [Line Items]
Fair Value Less Than 12 Months	22
Fair Value 12 Months or Greater	140
Unrealized Losses 12 Months or Greater	(19)
Fair Value Total	162
Unrealized Losses Total	(19)
Other Investment Securities
Schedule of Available-for-sale Securities [Line Items]
Fair Value 12 Months or Greater	3
Fair Value Total	3
Residential Agency | Residential
Schedule of Available-for-sale Securities [Line Items]
Fair Value Less Than 12 Months	1,563
Unrealized Losses Less Than 12 Months	(3)
Fair Value 12 Months or Greater	7
Fair Value Total	1,570
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	(3)
Fair Value Less Than 12 Months	3,005
Unrealized Losses Less Than 12 Months	(6)
Fair Value 12 Months or Greater	153
Fair Value Total	3,158
Unrealized Losses Total	(6)
Residential non-agency non-prime | Residential
Schedule of Available-for-sale Securities [Line Items]
Fair Value 12 Months or Greater	1	[1]
Fair Value Total	1	[1]
Fair Value 12 Months or Greater	311	[2]
Unrealized Losses 12 Months or Greater	(49)	[2]
Fair Value Total	311	[2]
Unrealized Losses Total	(49)	[2]
Non-agency | Commercial Mortgage-Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Fair Value 12 Months or Greater	3
Fair Value Total	3
Residential non-agency prime | Residential
Schedule of Available-for-sale Securities [Line Items]
Fair Value 12 Months or Greater	625	[3]
Unrealized Losses 12 Months or Greater	(48)	[3]
Fair Value Total	625	[3]
Unrealized Losses Total	$ (48)	[3]

[1] The Company has $97 million of unrealized losses on residential non-agency mortgage-backed securities. Credit-related other-than-temporary impairment on these securities may occur if there is further deterioration in the underlying collateral pool performance. Borrower defaults may increase if current economic conditions persist or worsen. Additionally, further deterioration in home prices may increase the severity of projected losses.

[2] Includes all securities not meeting the conditions to be designated as prime.

[3] Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

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Consolidated Statement of Shareholders' Equity (Unaudited) (USD $) In Millions	Total	Common Stock	Preferred Stock	Capital Surplus	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total U.S. Bancorp Shareholders' Equity	Noncontrolling Interests
Beginning Balance at Dec. 31, 2010	$ 30,322	$ 21	$ 1,930	$ 8,294	$ 27,005	$ (6,262)	$ (1,469)	$ 29,519	$ 803
Shares, Beginning Balance at Dec. 31, 2010		1,921
Change in accounting principle	(2)				(2)			(2)
Net income (loss)	3,460				3,522			3,522	(62)
Other comprehensive income (loss)	539						539	539
Preferred stock dividends	(99)				(99)			(99)
Common stock dividends	(722)				(722)			(722)
Issuance of preferred stock	676		676					676
Issuance of common and treasury stock	131			(121)		252		131
Issuance of common and treasury stock, shares		8
Purchase of treasury stock	(409)					(409)		(409)
Purchase of treasury stock, shares		(16)
Distributions to noncontrolling interests	(57)								(57)
Net other changes in noncontrolling interests	296								296
Stock option and restricted stock grants	75			75				75
Ending Balance at Sep. 30, 2011	34,210	21	2,606	8,248	29,704	(6,419)	(930)	33,230	980
Shares, Ending Balance at Sep. 30, 2011		1,913
Beginning Balance at Dec. 31, 2011	34,971	21	2,606	8,238	30,785	(6,472)	(1,200)	33,978	993
Shares, Beginning Balance at Dec. 31, 2011		1,910
Net income (loss)	4,115				4,227			4,227	(112)
Other comprehensive income (loss)	597						597	597
Preferred stock dividends	(174)				(174)			(174)
Common stock dividends	(1,108)				(1,108)			(1,108)
Issuance of preferred stock	2,163		2,163					2,163
Issuance of common and treasury stock	384			(111)		495		384
Issuance of common and treasury stock, shares		16
Purchase of treasury stock	(1,465)					(1,465)		(1,465)
Purchase of treasury stock, shares		(46)
Distributions to noncontrolling interests	(60)								(60)
Net other changes in noncontrolling interests	343								343
Stock option and restricted stock grants	59			59				59
Ending Balance at Sep. 30, 2012	$ 39,825	$ 21	$ 4,769	$ 8,186	$ 33,730	$ (7,442)	$ (603)	$ 38,661	$ 1,164
Shares, Ending Balance at Sep. 30, 2012		1,880

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Mortgage Servicing Rights - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Servicing Assets at Fair Value [Line Items]
Company serviced residential mortgage loan for others	$ 211,300,000,000		$ 211,300,000,000		$ 191,100,000,000
Gain/Loss on the fair value of mortgage servicing rights and fair value changes of derivatives used to offset MSR	10,000,000	7,000,000	72,000,000	151,000,000
Loan servicing fees	$ 181,000,000	$ 166,000,000	$ 526,000,000	$ 483,000,000

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Derivative Instruments - Additional Information (Detail) (USD $)	9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2012 Interest rate contracts	Sep. 30, 2011 Interest rate contracts	Sep. 30, 2012 Interest rate contracts	Sep. 30, 2011 Interest rate contracts	Sep. 30, 2012 Foreign exchange contract	Sep. 30, 2011 Foreign exchange contract	Sep. 30, 2012 Foreign exchange contract	Sep. 30, 2011 Foreign exchange contract
Derivative [Line Items]
Forward commitments to sell mortgage loans	$ 20,400,000,000
Hedged mortgage loans held for sale	9,800,000,000
Unfunded mortgage loan commitments	17,300,000,000
Collateral posted by counterparties netted against derivative assets	89,000,000	88,000,000
Cash collateral posted by the Company netted against derivative liabilities	1,400,000,000	1,700,000,000
Total notional value of asset and liability management derivative positions	65,500,000,000
Notional amount of asset and liability management derivative positions designated as fair value or cash flow or net investment hedge	12,000,000,000
Realized and unrealized losses on derivatives classified as cash flow hedges recorded in other comprehensive income (loss)	433,000,000	489,000,000
Estimated loss to be reclassified from other comprehensive income (loss) into earnings during the remainder of the year	33,000,000
Estimated loss to be reclassified from other comprehensive income (loss) into earnings for next 12 months	132,000,000
Carrying amount of non-derivative debt instruments designated as net investment hedges	719,000,000
Gain losses on items hedged by fair value hedges			(2,000,000)	(3,000,000)	(5,000,000)	(27,000,000)	0	117,000,000	(44,000,000)	20,000,000
Fair value of derivatives under collateral agreements in a net liability position	1,700,000,000
Collateral posted by company netted against net liability position	$ 1,400,000,000

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Components of Earnings per Share (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net income attributable to U.S. Bancorp	$ 1,474	$ 1,273	$ 4,227	$ 3,522
Preferred dividends	(64)	(30)	(174)	(99)
Earnings allocated to participating stock awards	(6)	(6)	(19)	(16)
Net income applicable to U.S. Bancorp common shareholders	$ 1,404	$ 1,237	$ 4,034	$ 3,407
Average common shares outstanding	1,886	1,915	1,892	1,918
Net effect of the exercise and assumed purchase of stock awards and conversion of outstanding convertible notes	11	7	9	8
Average diluted common shares outstanding	1,897	1,922	1,901	1,926
Earnings per common share	$ 0.74	$ 0.65	$ 2.13	$ 1.78
Diluted earnings per common share	$ 0.74	$ 0.64	$ 2.12	$ 1.77

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Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2012

Line of Business Financial Performance

Table 10 Line of Business Financial Performance

	Wholesale Banking and Commercial Real Estate								Consumer and Small Business Banking
Three Months Ended September 30 (Dollars in Millions)	2012		2011			Percent Change			2012		2011			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	526	$	544			(3.3	)%	$	1,191	$	1,153			3.3	%
Noninterest income		296		317			(6.6	)		931		707			31.7
Securities gains (losses), net		–		–			–			–		–			–
Total net revenue		822		861			(4.5	)		2,122		1,860			14.1
Noninterest expense		306		313			(2.2	)		1,251		1,164			7.5
Other intangibles		4		4			–			13		19			(31.6	)
Total noninterest expense		310		317			(2.2	)		1,264		1,183			6.8
Income before provision and income taxes		512		544			(5.9	)		858		677			26.7
Provision for credit losses		–		65			*			346		330			4.8
Income before income taxes		512		479			6.9			512		347			47.6
Income taxes and taxable-equivalent adjustment		186		174			6.9			186		126			47.6
Net income		326		305			6.9			326		221			47.5
Net (income) loss attributable to noncontrolling interests		–		(1	)		*			–		–			–
Net income attributable to U.S. Bancorp	$	326	$	304			7.2		$	326	$	221			47.5
Average Balance Sheet
Commercial	$	46,210	$	38,020			21.5	%	$	8,398	$	7,332			14.5	%
Commercial real estate		19,681		19,224			2.4			16,208		15,656			3.5
Residential mortgages		54		65			(16.9	)		40,526		33,561			20.8
Credit card		–		–			–			–		–			–
Other retail		7		4			75.0			45,656		46,000			(.7	)
Total loans, excluding covered loans		65,952		57,313			15.1			110,788		102,549			8.0
Covered loans		806		1,320			(38.9	)		7,396		8,266			(10.5	)
Total loans		66,758		58,633			13.9			118,184		110,815			6.6
Goodwill		1,604		1,604			–			3,515		3,515			–
Other intangible assets		34		50			(32.0	)		1,764		1,946			(9.4	)
Assets		72,668		64,594			12.5			135,828		123,960			9.6
Noninterest-bearing deposits		31,025		27,848			11.4			21,127		17,852			18.3
Interest checking		7,890		10,974			(28.1	)		30,051		27,048			11.1
Savings products		10,320		9,351			10.4			43,723		40,762			7.3
Time deposits		21,202		14,732			43.9			23,673		24,500			(3.4	)
Total deposits		70,437		62,905			12.0			118,574		110,162			7.6
Total U.S. Bancorp shareholders’ equity		6,383		5,604			13.9			11,562		9,327			24.0
	Wholesale Banking and Commercial Real Estate								Consumer and Small Business Banking
Nine Months Ended September 30 (Dollars in Millions)	2012		2011			Percent Change			2012		2011			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,580	$	1,586			(.4	)%	$	3,551	$	3,412			4.1	%
Noninterest income		923		936			(1.4	)		2,701		1,995			35.4
Securities gains (losses), net		–		–			–			–		–			–
Total net revenue		2,503		2,522			(.8	)		6,252		5,407			15.6
Noninterest expense		941		935			.6			3,673		3,430			7.1
Other intangibles		12		12			–			39		57			(31.6	)
Total noninterest expense		953		947			.6			3,712		3,487			6.5
Income before provision and income taxes		1,550		1,575			(1.6	)		2,540		1,920			32.3
Provision for credit losses		3		356			(99.2	)		875		1,097			(20.2	)
Income before income taxes		1,547		1,219			26.9			1,665		823			*
Income taxes and taxable-equivalent adjustment		563		443			27.1			605		299			*
Net income		984		776			26.8			1,060		524			*
Net (income) loss attributable to noncontrolling interests		–		5			*			–		(1	)		*
Net income attributable to U.S. Bancorp	$	984	$	781			26.0		$	1,060	$	523			*
Average Balance Sheet
Commercial	$	44,376	$	36,406			21.9	%	$	8,127	$	7,243			12.2	%
Commercial real estate		19,614		19,271			1.8			16,070		15,462			3.9
Residential mortgages		60		68			(11.8	)		38,883		32,391			20.0
Credit card		–		–			–			–		–			–
Other retail		5		6			(16.7	)		45,604		45,691			(.2	)
Total loans, excluding covered loans		64,055		55,751			14.9			108,684		100,787			7.8
Covered loans		1,003		1,589			(36.9	)		7,642		8,520			(10.3	)
Total loans		65,058		57,340			13.5			116,326		109,307			6.4
Goodwill		1,604		1,604			–			3,515		3,521			(.2	)
Other intangible assets		38		55			(30.9	)		1,784		2,138			(16.6	)
Assets		70,895		63,218			12.1			133,108		122,942			8.3
Noninterest-bearing deposits		30,630		23,749			29.0			19,774		17,649			12.0
Interest checking		10,608		13,024			(18.6	)		29,660		26,228			13.1
Savings products		8,918		9,555			(6.7	)		43,106		40,290			7.0
Time deposits		17,210		14,845			15.9			24,097		24,478			(1.6	)
Total deposits		67,366		61,173			10.1			116,637		108,645			7.4
Total U.S. Bancorp shareholders’ equity		6,327		5,533			14.4			11,147		9,277			20.2

* Not meaningful.

Wealth Management and Securities Services							Payment Services									Treasury and Corporate Support									Consolidated Company
2012		2011		Percent Change			2012			2011			Percent Change			2012			2011			Percent Change			2012			2011			Percent Change
$	86	$	89		(3.4	)%	$	382		$	335			14.0	%	$	598		$	503			18.9	%	$	2,783		$	2,624			6.1	%
	283		254		11.4			851			854			(.4	)		34			48			(29.2	)		2,395			2,180			9.9
	–		–		–			–			–			–			1			(9	)		*			1			(9	)		*
	369		343		7.6			1,233			1,189			3.7			633			542			16.8			5,179			4,795			8.0
	289		267		8.2			451			449			.4			245			208			17.8			2,542			2,401			5.9
	10		9		11.1			40			43			(7.0	)		–			–			–			67			75			(10.7	)
	299		276		8.3			491			492			(.2	)		245			208			17.8			2,609			2,476			5.4
	70		67		4.5			742			697			6.5			388			334			16.2			2,570			2,319			10.8
	4		2		*			135			125			8.0			3			(3	)		*			488			519			(6.0	)
	66		65		1.5			607			572			6.1			385			337			14.2			2,082			1,800			15.7
	24		24		–			221			208			6.3			33			16			*			650			548			18.6
	42		41		2.4			386			364			6.0			352			321			9.7			1,432			1,252			14.4
	–		–		–			(10	)		(10	)		–			52			32			62.5			42			21			*
$	42	$	41		2.4		$	376		$	354			6.2		$	404		$	353			14.4		$	1,474		$	1,273			15.8
$	1,398	$	1,069		30.8	%	$	6,062		$	5,828			4.0	%	$	124		$	95			30.5	%	$	62,192		$	52,344			18.8	%
	599		567		5.6			–			–			–			142			122			16.4			36,630			35,569			3.0
	384		392		(2.0	)		–			–			–			5			8			(37.5	)		40,969			34,026			20.4
	–		–		–			16,551			16,057			3.1			–			–			–			16,551			16,057			3.1
	1,526		1,490		2.4			802			885			(9.4	)		–			1			*			47,991			48,380			(.8	)
	3,907		3,518		11.1			23,415			22,770			2.8			271			226			19.9			204,333			186,376			9.6
	11		12		(8.3	)		5			5			–			4,377			6,190			(29.3	)		12,595			15,793			(20.2	)
	3,918		3,530		11.0			23,420			22,775			2.8			4,648			6,416			(27.6	)		216,928			202,169			7.3
	1,469		1,463		.4			2,346			2,367			(.9	)		–			–			–			8,934			8,949			(.2	)
	165		179		(7.8	)		646			775			(16.6	)		4			5			(20.0	)		2,613			2,955			(11.6	)
	6,698		5,976		12.1			29,522			28,235			4.6			100,937			98,816			2.1			345,653			321,581			7.5
	14,856		11,801		25.9			623			653			(4.6	)		496			452			9.7			68,127			58,606			16.2
	3,919		2,835		38.2			1,346			184			*			1			1			–			43,207			41,042			5.3
	23,051		21,314		8.1			40			31			29.0			139			207			(32.9	)		77,273			71,665			7.8
	5,459		4,787		14.0			–			–			–			340			37			*			50,674			44,056			15.0
	47,285		40,737		16.1			2,009			868			*			976			697			40.0			239,281			215,369			11.1
	2,241		2,075		8.0			5,654			5,276			7.2			12,779			10,805			18.3			38,619			33,087			16.7
Wealth Management and Securities Services							Payment Services									Treasury and Corporate Support									Consolidated Company
2012		2011		Percent Change			2012			2011			Percent Change			2012			2011			Percent Change			2012			2011			Percent Change
$	263	$	259		1.5	%	$	1,154		$	995			16.0	%	$	1,638		$	1,423			15.1	%	$	8,186		$	7,675			6.7	%
	828		793		4.4			2,399			2,443			(1.8	)		157			184			(14.7	)		7,008			6,351			10.3
	–		–		–			–			–			–			(18	)		(22	)		18.2			(18	)		(22	)		18.2
	1,091		1,052		3.7			3,553			3,438			3.3			1,777			1,585			12.1			15,176			14,004			8.4
	856		802		6.7			1,344			1,306			2.9			748			517			44.7			7,562			6,990			8.2
	30		27		11.1			127			129			(1.6	)		–			–			–			208			225			(7.6	)
	886		829		6.9			1,471			1,435			2.5			748			517			44.7			7,770			7,215			7.7
	205		223		(8.1	)		2,082			2,003			3.9			1,029			1,068			(3.7	)		7,406			6,789			9.1
	6		3		*			548			377			45.4			7			13			(46.2	)		1,439			1,846			(22.0	)
	199		220		(9.5	)		1,534			1,626			(5.7	)		1,022			1,055			(3.1	)		5,967			4,943			20.7
	72		81		(11.1	)		558			591			(5.6	)		54			69			(21.7	)		1,852			1,483			24.9
	127		139		(8.6	)		976			1,035			(5.7	)		968			986			(1.8	)		4,115			3,460			18.9
	–		–		–			(30	)		(29	)		(3.4	)		142			87			63.2			112			62			80.6
$	127	$	139		(8.6	)	$	946		$	1,006			(6.0	)	$	1,110		$	1,073			3.4		$	4,227		$	3,522			20.0
$	1,267	$	1,069		18.5	%	$	5,904		$	5,561			6.2	%	$	116		$	104			11.5	%	$	59,790		$	50,383			18.7	%
	582		575		1.2			–			–			–			123			109			12.8			36,389			35,417			2.7
	379		385		(1.6	)		–			–			–			6			10			(40.0	)		39,328			32,854			19.7
	–		–		–			16,675			16,022			4.1			–			–			–			16,675			16,022			4.1
	1,513		1,547		(2.2	)		817			909			(10.1	)		1			1			–			47,940			48,154			(.4	)
	3,741		3,576		4.6			23,396			22,492			4.0			246			224			9.8			200,122			182,830			9.5
	12		12		–			5			4			25.0			4,947			6,578			(24.8	)		13,609			16,703			(18.5	)
	3,753		3,588		4.6			23,401			22,496			4.0			5,193			6,802			(23.7	)		213,731			199,533			7.1
	1,468		1,463		.3			2,349			2,365			(.7	)		–			–			–			8,936			8,953			(.2	)
	172		188		(8.5	)		717			806			(11.0	)		4			5			(20.0	)		2,715			3,192			(14.9	)
	6,454		6,018		7.2			29,685			27,679			7.2			100,665			94,222			6.8			340,807			314,079			8.5
	13,899		8,176		70.2			638			684			(6.7	)		482			300			60.7			65,423			50,558			29.4
	3,924		2,908		34.9			1,329			174			*			1			1			–			45,522			42,335			7.5
	23,163		21,329		8.6			37			29			27.6			136			192			(29.2	)		75,360			71,395			5.6
	4,888		5,919		(17.4	)		–			–			–			478			205			*			46,673			45,447			2.7
	45,874		38,332		19.7			2,004			887			*			1,097			698			57.2			232,978			209,735			11.1
	2,223		2,078		7.0			5,681			5,272			7.8			11,727			9,539			22.9			37,105			31,699			17.1

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Line of Business Financial Performance (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Condensed Income Statement
Securities gains (losses), net	$ 1	$ (9)	$ (18)	$ (22)
Other intangibles	67	75	208	225
Total noninterest expense	2,609	2,476	7,770	7,215
Provision for credit losses	488	519	1,439	1,846
Income before income taxes	2,025	1,742	5,799	4,774
Net income	1,432	1,252	4,115	3,460
Net (income) loss attributable to noncontrolling interests	42	21	112	62
Net income attributable to U.S. Bancorp	1,474	1,273	4,227	3,522
Wholesale Banking and Commercial Real Estate
Condensed Income Statement
Net interest income (taxable-equivalent basis), Percent change	(3.30%)		(0.40%)
Net interest income (taxable-equivalent basis)	526	544	1,580	1,586
Noninterest income, Percent change	(6.60%)		(1.40%)
Noninterest income	296	317	923	936
Total net revenue, Percent change	(4.50%)		(0.80%)
Total net revenue	822	861	2,503	2,522
Noninterest expense, Percent change	(2.20%)		0.60%
Noninterest expense	306	313	941	935
Other intangibles	4	4	12	12
Total noninterest expense, Percent change	(2.20%)		0.60%
Total noninterest expense	310	317	953	947
Income before provision and income taxes, Percent change	(5.90%)		(1.60%)
Income before provision and income taxes	512	544	1,550	1,575
Provision for credit losses, Percent change			(99.20%)
Provision for credit losses		65	3	356
Income before income taxes, Percent change	6.90%		26.90%
Income before income taxes	512	479	1,547	1,219
Income taxes and taxable-equivalent adjustment, Percent change	6.90%		27.10%
Income taxes and taxable-equivalent adjustment	186	174	563	443
Net income, Percent change	6.90%		26.80%
Net income	326	305	984	776
Net (income) loss attributable to noncontrolling interests		(1)		5
Net income attributable to U.S. Bancorp, Percent change	7.20%		26.00%
Net income attributable to U.S. Bancorp	326	304	984	781
Average Balance Sheet
Commercial, Percent change	21.50%		21.90%
Commercial	46,210	38,020	44,376	36,406
Commercial real estate, Percent change	2.40%		1.80%
Commercial real estate	19,681	19,224	19,614	19,271
Residential mortgages, Percent change	(16.90%)		(11.80%)
Residential mortgages	54	65	60	68
Other retail, Percent change	75.00%		(16.70%)
Other retail	7	4	5	6
Total loans, excluding covered loans, Percent change	15.10%		14.90%
Total loans, excluding covered loans	65,952	57,313	64,055	55,751
Covered loans, Percent change	(38.90%)		(36.90%)
Covered loans	806	1,320	1,003	1,589
Total loans, Percent change	13.90%		13.50%
Total loans	66,758	58,633	65,058	57,340
Other intangible assets, Percent change	(32.00%)		(30.90%)
Assets, Percent change	12.50%		12.10%
Noninterest-bearing deposits, Percent change	11.40%		29.00%
Interest checking, Percent change	(28.10%)		(18.60%)
Savings products, Percent change	10.40%		(6.70%)
Time deposits, Percent change	43.90%		15.90%
Total deposits, Percent change	12.00%		10.10%
Total U.S. Bancorp shareholders' equity, Percent change	13.90%		14.40%
Goodwill	1,604	1,604	1,604	1,604
Other intangible assets	34	50	38	55
Assets	72,668	64,594	70,895	63,218
Noninterest-bearing deposits	31,025	27,848	30,630	23,749
Interest checking	7,890	10,974	10,608	13,024
Savings products	10,320	9,351	8,918	9,555
Time deposits	21,202	14,732	17,210	14,845
Total deposits	70,437	62,905	67,366	61,173
Total U.S. Bancorp shareholders' equity	6,383	5,604	6,327	5,533
Consumer and Small Business Banking
Condensed Income Statement
Net interest income (taxable-equivalent basis), Percent change	3.30%		4.10%
Net interest income (taxable-equivalent basis)	1,191	1,153	3,551	3,412
Noninterest income, Percent change	31.70%		35.40%
Noninterest income	931	707	2,701	1,995
Total net revenue, Percent change	14.10%		15.60%
Total net revenue	2,122	1,860	6,252	5,407
Noninterest expense, Percent change	7.50%		7.10%
Noninterest expense	1,251	1,164	3,673	3,430
Other intangibles, Percent change	(31.60%)		(31.60%)
Other intangibles	13	19	39	57
Total noninterest expense, Percent change	6.80%		6.50%
Total noninterest expense	1,264	1,183	3,712	3,487
Income before provision and income taxes, Percent change	26.70%		32.30%
Income before provision and income taxes	858	677	2,540	1,920
Provision for credit losses, Percent change	4.80%		(20.20%)
Provision for credit losses	346	330	875	1,097
Income before income taxes, Percent change	47.60%
Income before income taxes	512	347	1,665	823
Income taxes and taxable-equivalent adjustment, Percent change	47.60%
Income taxes and taxable-equivalent adjustment	186	126	605	299
Net income, Percent change	47.50%
Net income	326	221	1,060	524
Net (income) loss attributable to noncontrolling interests				(1)
Net income attributable to U.S. Bancorp, Percent change	47.50%
Net income attributable to U.S. Bancorp	326	221	1,060	523
Average Balance Sheet
Commercial, Percent change	14.50%		12.20%
Commercial	8,398	7,332	8,127	7,243
Commercial real estate, Percent change	3.50%		3.90%
Commercial real estate	16,208	15,656	16,070	15,462
Residential mortgages, Percent change	20.80%		20.00%
Residential mortgages	40,526	33,561	38,883	32,391
Other retail, Percent change	(0.70%)		(0.20%)
Other retail	45,656	46,000	45,604	45,691
Total loans, excluding covered loans, Percent change	8.00%		7.80%
Total loans, excluding covered loans	110,788	102,549	108,684	100,787
Covered loans, Percent change	(10.50%)		(10.30%)
Covered loans	7,396	8,266	7,642	8,520
Total loans, Percent change	6.60%		6.40%
Total loans	118,184	110,815	116,326	109,307
Goodwill, Percent change			(0.20%)
Other intangible assets, Percent change	(9.40%)		(16.60%)
Assets, Percent change	9.60%		8.30%
Noninterest-bearing deposits, Percent change	18.30%		12.00%
Interest checking, Percent change	11.10%		13.10%
Savings products, Percent change	7.30%		7.00%
Time deposits, Percent change	(3.40%)		(1.60%)
Total deposits, Percent change	7.60%		7.40%
Total U.S. Bancorp shareholders' equity, Percent change	24.00%		20.20%
Goodwill	3,515	3,515	3,515	3,521
Other intangible assets	1,764	1,946	1,784	2,138
Assets	135,828	123,960	133,108	122,942
Noninterest-bearing deposits	21,127	17,852	19,774	17,649
Interest checking	30,051	27,048	29,660	26,228
Savings products	43,723	40,762	43,106	40,290
Time deposits	23,673	24,500	24,097	24,478
Total deposits	118,574	110,162	116,637	108,645
Total U.S. Bancorp shareholders' equity	11,562	9,327	11,147	9,277
Wealth Management and Securities Services
Condensed Income Statement
Net interest income (taxable-equivalent basis), Percent change	(3.40%)		1.50%
Net interest income (taxable-equivalent basis)	86	89	263	259
Noninterest income, Percent change	11.40%		4.40%
Noninterest income	283	254	828	793
Total net revenue, Percent change	7.60%		3.70%
Total net revenue	369	343	1,091	1,052
Noninterest expense, Percent change	8.20%		6.70%
Noninterest expense	289	267	856	802
Other intangibles, Percent change	11.10%		11.10%
Other intangibles	10	9	30	27
Total noninterest expense, Percent change	8.30%		6.90%
Total noninterest expense	299	276	886	829
Income before provision and income taxes, Percent change	4.50%		(8.10%)
Income before provision and income taxes	70	67	205	223
Provision for credit losses	4	2	6	3
Income before income taxes, Percent change	1.50%		(9.50%)
Income before income taxes	66	65	199	220
Income taxes and taxable-equivalent adjustment, Percent change			(11.10%)
Income taxes and taxable-equivalent adjustment	24	24	72	81
Net income, Percent change	2.40%		(8.60%)
Net income	42	41	127	139
Net income attributable to U.S. Bancorp, Percent change	2.40%		(8.60%)
Net income attributable to U.S. Bancorp	42	41	127	139
Average Balance Sheet
Commercial, Percent change	30.80%		18.50%
Commercial	1,398	1,069	1,267	1,069
Commercial real estate, Percent change	5.60%		1.20%
Commercial real estate	599	567	582	575
Residential mortgages, Percent change	(2.00%)		(1.60%)
Residential mortgages	384	392	379	385
Other retail, Percent change	2.40%		(2.20%)
Other retail	1,526	1,490	1,513	1,547
Total loans, excluding covered loans, Percent change	11.10%		4.60%
Total loans, excluding covered loans	3,907	3,518	3,741	3,576
Covered loans, Percent change	(8.30%)
Covered loans	11	12	12	12
Total loans, Percent change	11.00%		4.60%
Total loans	3,918	3,530	3,753	3,588
Goodwill, Percent change	0.40%		0.30%
Other intangible assets, Percent change	(7.80%)		(8.50%)
Assets, Percent change	12.10%		7.20%
Noninterest-bearing deposits, Percent change	25.90%		70.20%
Interest checking, Percent change	38.20%		34.90%
Savings products, Percent change	8.10%		8.60%
Time deposits, Percent change	14.00%		(17.40%)
Total deposits, Percent change	16.10%		19.70%
Total U.S. Bancorp shareholders' equity, Percent change	8.00%		7.00%
Goodwill	1,469	1,463	1,468	1,463
Other intangible assets	165	179	172	188
Assets	6,698	5,976	6,454	6,018
Noninterest-bearing deposits	14,856	11,801	13,899	8,176
Interest checking	3,919	2,835	3,924	2,908
Savings products	23,051	21,314	23,163	21,329
Time deposits	5,459	4,787	4,888	5,919
Total deposits	47,285	40,737	45,874	38,332
Total U.S. Bancorp shareholders' equity	2,241	2,075	2,223	2,078
Payment Services
Condensed Income Statement
Net interest income (taxable-equivalent basis), Percent change	14.00%		16.00%
Net interest income (taxable-equivalent basis)	382	335	1,154	995
Noninterest income, Percent change	(0.40%)		(1.80%)
Noninterest income	851	854	2,399	2,443
Total net revenue, Percent change	3.70%		3.30%
Total net revenue	1,233	1,189	3,553	3,438
Noninterest expense, Percent change	0.40%		2.90%
Noninterest expense	451	449	1,344	1,306
Other intangibles, Percent change	(7.00%)		(1.60%)
Other intangibles	40	43	127	129
Total noninterest expense, Percent change	(0.20%)		2.50%
Total noninterest expense	491	492	1,471	1,435
Income before provision and income taxes, Percent change	6.50%		3.90%
Income before provision and income taxes	742	697	2,082	2,003
Provision for credit losses, Percent change	8.00%		45.40%
Provision for credit losses	135	125	548	377
Income before income taxes, Percent change	6.10%		(5.70%)
Income before income taxes	607	572	1,534	1,626
Income taxes and taxable-equivalent adjustment, Percent change	6.30%		(5.60%)
Income taxes and taxable-equivalent adjustment	221	208	558	591
Net income, Percent change	6.00%		(5.70%)
Net income	386	364	976	1,035
Net (income) loss attributable to noncontrolling interests, Percent change			(3.40%)
Net (income) loss attributable to noncontrolling interests	(10)	(10)	(30)	(29)
Net income attributable to U.S. Bancorp, Percent change	6.20%		(6.00%)
Net income attributable to U.S. Bancorp	376	354	946	1,006
Average Balance Sheet
Commercial, Percent change	4.00%		6.20%
Commercial	6,062	5,828	5,904	5,561
Credit card, Percent change	3.10%		4.10%
Credit card	16,551	16,057	16,675	16,022
Other retail, Percent change	(9.40%)		(10.10%)
Other retail	802	885	817	909
Total loans, excluding covered loans, Percent change	2.80%		4.00%
Total loans, excluding covered loans	23,415	22,770	23,396	22,492
Covered loans, Percent change			25.00%
Covered loans	5	5	5	4
Total loans, Percent change	2.80%		4.00%
Total loans	23,420	22,775	23,401	22,496
Goodwill, Percent change	(0.90%)		(0.70%)
Other intangible assets, Percent change	(16.60%)		(11.00%)
Assets, Percent change	4.60%		7.20%
Noninterest-bearing deposits, Percent change	(4.60%)		(6.70%)
Savings products, Percent change	29.00%		27.60%
Total U.S. Bancorp shareholders' equity, Percent change	7.20%		7.80%
Goodwill	2,346	2,367	2,349	2,365
Other intangible assets	646	775	717	806
Assets	29,522	28,235	29,685	27,679
Noninterest-bearing deposits	623	653	638	684
Interest checking	1,346	184	1,329	174
Savings products	40	31	37	29
Total deposits	2,009	868	2,004	887
Total U.S. Bancorp shareholders' equity	5,654	5,276	5,681	5,272
Treasury and Corporate Support
Condensed Income Statement
Net interest income (taxable-equivalent basis), Percent change	18.90%		15.10%
Net interest income (taxable-equivalent basis)	598	503	1,638	1,423
Noninterest income, Percent change	(29.20%)		(14.70%)
Noninterest income	34	48	157	184
Securities gains (losses), net, Percent change			18.20%
Securities gains (losses), net	1	(9)	(18)	(22)
Total net revenue, Percent change	16.80%		12.10%
Total net revenue	633	542	1,777	1,585
Noninterest expense, Percent change	17.80%		44.70%
Noninterest expense	245	208	748	517
Total noninterest expense, Percent change	17.80%		44.70%
Total noninterest expense	245	208	748	517
Income before provision and income taxes, Percent change	16.20%		(3.70%)
Income before provision and income taxes	388	334	1,029	1,068
Provision for credit losses, Percent change			(46.20%)
Provision for credit losses	3	(3)	7	13
Income before income taxes, Percent change	14.20%		(3.10%)
Income before income taxes	385	337	1,022	1,055
Income taxes and taxable-equivalent adjustment, Percent change			(21.70%)
Income taxes and taxable-equivalent adjustment	33	16	54	69
Net income, Percent change	9.70%		(1.80%)
Net income	352	321	968	986
Net (income) loss attributable to noncontrolling interests, Percent change	62.50%		63.20%
Net (income) loss attributable to noncontrolling interests	52	32	142	87
Net income attributable to U.S. Bancorp, Percent change	14.40%		3.40%
Net income attributable to U.S. Bancorp	404	353	1,110	1,073
Average Balance Sheet
Commercial, Percent change	30.50%		11.50%
Commercial	124	95	116	104
Commercial real estate, Percent change	16.40%		12.80%
Commercial real estate	142	122	123	109
Residential mortgages, Percent change	(37.50%)		(40.00%)
Residential mortgages	5	8	6	10
Other retail		1	1	1
Total loans, excluding covered loans, Percent change	19.90%		9.80%
Total loans, excluding covered loans	271	226	246	224
Covered loans, Percent change	(29.30%)		(24.80%)
Covered loans	4,377	6,190	4,947	6,578
Total loans, Percent change	(27.60%)		(23.70%)
Total loans	4,648	6,416	5,193	6,802
Other intangible assets, Percent change	(20.00%)		(20.00%)
Assets, Percent change	2.10%		6.80%
Noninterest-bearing deposits, Percent change	9.70%		60.70%
Savings products, Percent change	(32.90%)		(29.20%)
Total deposits, Percent change	40.00%		57.20%
Total U.S. Bancorp shareholders' equity, Percent change	18.30%		22.90%
Other intangible assets	4	5	4	5
Assets	100,937	98,816	100,665	94,222
Noninterest-bearing deposits	496	452	482	300
Interest checking	1	1	1	1
Savings products	139	207	136	192
Time deposits	340	37	478	205
Total deposits	976	697	1,097	698
Total U.S. Bancorp shareholders' equity	12,779	10,805	11,727	9,539
Consolidated Company
Condensed Income Statement
Net interest income (taxable-equivalent basis), Percent change	6.10%		6.70%
Net interest income (taxable-equivalent basis)	2,783	2,624	8,186	7,675
Noninterest income, Percent change	9.90%		10.30%
Noninterest income	2,395	2,180	7,008	6,351
Securities gains (losses), net, Percent change			18.20%
Securities gains (losses), net	1	(9)	(18)	(22)
Total net revenue, Percent change	8.00%		8.40%
Total net revenue	5,179	4,795	15,176	14,004
Noninterest expense, Percent change	5.90%		8.20%
Noninterest expense	2,542	2,401	7,562	6,990
Other intangibles, Percent change	(10.70%)		(7.60%)
Other intangibles	67	75	208	225
Total noninterest expense, Percent change	5.40%		7.70%
Total noninterest expense	2,609	2,476	7,770	7,215
Income before provision and income taxes, Percent change	10.80%		9.10%
Income before provision and income taxes	2,570	2,319	7,406	6,789
Provision for credit losses, Percent change	(6.00%)		(22.00%)
Provision for credit losses	488	519	1,439	1,846
Income before income taxes, Percent change	15.70%		20.70%
Income before income taxes	2,082	1,800	5,967	4,943
Income taxes and taxable-equivalent adjustment, Percent change	18.60%		24.90%
Income taxes and taxable-equivalent adjustment	650	548	1,852	1,483
Net income, Percent change	14.40%		18.90%
Net income	1,432	1,252	4,115	3,460
Net (income) loss attributable to noncontrolling interests, Percent change			80.60%
Net (income) loss attributable to noncontrolling interests	42	21	112	62
Net income attributable to U.S. Bancorp, Percent change	15.80%		20.00%
Net income attributable to U.S. Bancorp	1,474	1,273	4,227	3,522
Average Balance Sheet
Commercial, Percent change	18.80%		18.70%
Commercial	62,192	52,344	59,790	50,383
Commercial real estate, Percent change	3.00%		2.70%
Commercial real estate	36,630	35,569	36,389	35,417
Residential mortgages, Percent change	20.40%		19.70%
Residential mortgages	40,969	34,026	39,328	32,854
Credit card, Percent change	3.10%		4.10%
Credit card	16,551	16,057	16,675	16,022
Other retail, Percent change	(0.80%)		(0.40%)
Other retail	47,991	48,380	47,940	48,154
Total loans, excluding covered loans, Percent change	9.60%		9.50%
Total loans, excluding covered loans	204,333	186,376	200,122	182,830
Covered loans, Percent change	(20.20%)		(18.50%)
Covered loans	12,595	15,793	13,609	16,703
Total loans, Percent change	7.30%		7.10%
Total loans	216,928	202,169	213,731	199,533
Goodwill, Percent change	(0.20%)		(0.20%)
Other intangible assets, Percent change	(11.60%)		(14.90%)
Assets, Percent change	7.50%		8.50%
Noninterest-bearing deposits, Percent change	16.20%		29.40%
Interest checking, Percent change	5.30%		7.50%
Savings products, Percent change	7.80%		5.60%
Time deposits, Percent change	15.00%		2.70%
Total deposits, Percent change	11.10%		11.10%
Total U.S. Bancorp shareholders' equity, Percent change	16.70%		17.10%
Goodwill	8,934	8,949	8,936	8,953
Other intangible assets	2,613	2,955	2,715	3,192
Assets	345,653	321,581	340,807	314,079
Noninterest-bearing deposits	68,127	58,606	65,423	50,558
Interest checking	43,207	41,042	45,522	42,335
Savings products	77,273	71,665	75,360	71,395
Time deposits	50,674	44,056	46,673	45,447
Total deposits	239,281	215,369	232,978	209,735
Total U.S. Bancorp shareholders' equity	$ 38,619	$ 33,087	$ 37,105	$ 31,699

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Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2012

Composition of Loan Portfolio

The composition of the loan portfolio, disaggregated by class and underlying specific portfolio type, was as follows:

	September 30, 2012					December 31, 2011
(Dollars in Millions)	Amount		Percent of Total			Amount		Percent of Total
Commercial
Commercial	$	57,415		26.3	%	$	50,734		24.2	%
Lease financing		5,495		2.5			5,914		2.8
Total commercial		62,910		28.8			56,648		27.0
Commercial real estate
Commercial mortgages		30,831		14.1			29,664		14.1
Construction and development		5,982		2.8			6,187		3.0
Total commercial real estate		36,813		16.9			35,851		17.1
Residential mortgages
Residential mortgages		31,504		14.4			28,669		13.7
Home equity loans, first liens		10,398		4.8			8,413		4.0
Total residential mortgages		41,902		19.2			37,082		17.7
Credit card		16,402		7.5			17,360		8.3
Other retail
Retail leasing		5,332		2.4			5,118		2.4
Home equity and second mortgages		17,119		7.9			18,131		8.6
Revolving credit		3,320		1.5			3,344		1.6
Installment		5,474		2.5			5,348		2.6
Automobile		12,431		5.7			11,508		5.5
Student		4,289		2.0			4,658		2.2
Total other retail		47,965		22.0			48,107		22.9
Total loans, excluding covered loans		205,992		94.4			195,048		93.0
Covered loans		12,158		5.6			14,787		7.0
Total loans	$	218,150		100.0	%	$	209,835		100.0	%

Changes in Accretable Balance for Purchased Impaired Loans

Changes in the accretable balance for all purchased impaired loans, including those acquired in the BankEast transaction, were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	2,431		$	3,015		$	2,619		$	2,890
Purchases		–			–			13			100
Accretion		(109	)		(110	)		(337	)		(337	)
Disposals		(37	)		(43	)		(135	)		(47	)
Reclassifications (to)/from nonaccretable difference (a)		58			(170	)		191			117
Other		(14	)		(7	)		(22	)		(38	)
Balance at end of period	$	2,329		$	2,685		$	2,329		$	2,685

(a) Primarily relates to changes in expected credit performance.

Activity in Allowance for Credit Losses

Activity in the allowance for credit losses by portfolio class was as follows:

Three Months Ended September 30 (Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans, Excluding Covered Loans			Covered Loans			Total Loans
2012
Balance at beginning of period	$	1,037		$	941		$	939		$	996		$	828		$	4,741		$	123		$	4,864
Add
Provision for credit losses		63			(22	)		143			119			185			488			–			488
Deduct
Loans charged off		90			47			127			186			187			637			2			639
Less recoveries of loans charged off		(24	)		(22	)		(6	)		(19	)		(30	)		(101	)		–			(101	)
Net loans charged off		66			25			121			167			157			536			2			538
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			(10	)		(10	)
Other changes		–			–			–			(33	)		–			(33	)		–			(33	)
Balance at end of period	$	1,034		$	894		$	961		$	915		$	856		$	4,660		$	111		$	4,771
2011
Balance at beginning of period	$	1,109		$	1,258		$	841		$	1,140		$	843		$	5,191		$	117		$	5,308
Add
Provision for credit losses		15			88			168			106			131			508			11			519
Deduct
Loans charged off		126			131			124			203			175			759			3			762
Less recoveries of loans charged off		(27	)		(6	)		(2	)		(25	)		(33	)		(93	)		–			(93	)
Net loans charged off		99			125			122			178			142			666			3			669
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			32			32
Balance at end of period	$	1,025		$	1,221		$	887		$	1,068		$	832		$	5,033		$	157		$	5,190

Nine Months Ended September 30 (Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans, Excluding Covered Loans			Covered Loans			Total Loans
2012
Balance at beginning of period	$	1,010		$	1,154		$	927		$	992		$	831		$	4,914		$	100		$	5,014
Add
Provision for credit losses		247			(111	)		376			462			431			1,405			34			1,439
Deduct
Loans charged off		296			206			357			585			503			1,947			4			1,951
Less recoveries of loans charged off		(73	)		(57	)		(15	)		(79	)		(97	)		(321	)		(1	)		(322	)
Net loans charged off		223			149			342			506			406			1,626			3			1,629
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			(20	)		(20	)
Other change		–			–			–			(33	)		–			(33	)		–			(33	)
Balance at end of period	$	1,034		$	894		$	961		$	915		$	856		$	4,660		$	111		$	4,771
2011
Balance at beginning of period	$	1,104		$	1,291		$	820		$	1,395		$	807		$	5,417		$	114		$	5,531
Add
Provision for credit losses		255			344			437			314			477			1,827			19			1,846
Deduct
Loans charged off		412			446			380			712			551			2,501			10			2,511
Less recoveries of loans charged off		(78	)		(32	)		(10	)		(71	)		(99	)		(290	)		–			(290	)
Net loans charged off		334			414			370			641			452			2,211			10			2,221
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			34			34
Balance at end of period	$	1,025		$	1,221		$	887		$	1,068		$	832		$	5,033		$	157		$	5,190

Additional Detail of Allowance for Credit Losses and Related Loan Balances by Portfolio Type

Additional detail of the allowance for credit losses by portfolio class was as follows:

(Dollars in Millions)	Commercial		Commercial Real Estate		Residential Mortgages		Credit Card		Other Retail		Total Loans, Excluding Covered Loans		Covered Loans		Total Loans
Allowance balance at September 30, 2012 related to
Loans individually evaluated for impairment (a)	$	6	$	33	$	–	$	–	$	–	$	39	$	–	$	39
TDRs collectively evaluated for impairment		31		28		464		167		59		749		1		750
Other loans collectively evaluated for impairment		997		828		497		748		797		3,867		21		3,888
Loans acquired with deteriorated credit quality		–		5		–		–		–		5		89		94
Total allowance for credit losses	$	1,034	$	894	$	961	$	915	$	856	$	4,660	$	111	$	4,771
Allowance balance at December 31, 2011 related to
Loans individually evaluated for impairment (a)	$	16	$	61	$	1	$	–	$	–	$	78	$	2	$	80
TDRs collectively evaluated for impairment		40		33		490		219		57		839		–		839
Other loans collectively evaluated for impairment		954		1,057		436		773		774		3,994		22		4,016
Loans acquired with deteriorated credit quality		–		3		–		–		–		3		76		79
Total allowance for credit losses	$	1,010	$	1,154	$	927	$	992	$	831	$	4,914	$	100	$	5,014

(a) Represents the allowance for credit losses related to loans greater than $5 million classified as nonperforming or TDRs.

Additional detail of loan balances by portfolio class was as follows:

(Dollars in Millions)	Commercial		Commercial Real Estate		Residential Mortgages		Credit Card		Other Retail		Total Loans, Excluding Covered Loans		Covered Loans (b)		Total Loans
September 30, 2012
Loans individually evaluated for impairment (a)	$	132	$	612	$	–	$	–	$	–	$	744	$	73	$	817
TDRs collectively evaluated for impairment		179		383		4,033		462		269		5,326		137		5,463
Other loans collectively evaluated for impairment		62,594		35,699		37,863		15,940		47,696		199,792		6,564		206,356
Loans acquired with deteriorated credit quality		5		119		6		–		–		130		5,384		5,514
Total loans	$	62,910	$	36,813	$	41,902	$	16,402	$	47,965	$	205,992	$	12,158	$	218,150
December 31, 2011
Loans individually evaluated for impairment (a)	$	222	$	812	$	6	$	–	$	–	$	1,040	$	204	$	1,244
TDRs collectively evaluated for impairment		277		331		3,430		584		148		4,770		113		4,883
Other loans collectively evaluated for impairment		56,138		34,574		33,642		16,776		47,959		189,089		8,616		197,705
Loans acquired with deteriorated credit quality		11		134		4		–		–		149		5,854		6,003
Total loans	$	56,648	$	35,851	$	37,082	$	17,360	$	48,107	$	195,048	$	14,787	$	209,835

(a) Represents loans greater than $5 million classified as nonperforming or TDRs.

(b) Includes expected reimbursements from the FDIC under loss sharing agreements.

Summary of Loans by Portfolio Type

The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to accrue interest, and those that are nonperforming:

	Accruing
(Dollars in Millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Nonperforming		Total
September 30, 2012
Commercial	$	62,502	$	216	$	40	$	152	$	62,910
Commercial real estate		36,105		65		12		631		36,813
Residential mortgages (a)		40,451		393		301		757		41,902
Credit card		15,815		230		194		163		16,402
Other retail		47,358		300		97		210		47,965
Total loans, excluding covered loans		202,231		1,204		644		1,913		205,992
Covered loans		10,758		269		682		449		12,158
Total loans	$	212,989	$	1,473	$	1,326	$	2,362	$	218,150
December 31, 2011
Commercial	$	55,991	$	300	$	45	$	312	$	56,648
Commercial real estate		34,800		138		14		899		35,851
Residential mortgages (a)		35,664		404		364		650		37,082
Credit card		16,662		238		236		224		17,360
Other retail		47,516		340		184		67		48,107
Total loans, excluding covered loans		190,633		1,420		843		2,152		195,048
Covered loans		12,589		362		910		926		14,787
Total loans	$	203,222	$	1,782	$	1,753	$	3,078	$	209,835

(a) At September 30, 2012, $462 million of loans 30 – 89 days past due and $3.0 billion of loans 90 days or more past due purchased from Government National Mortgage Association (“GNMA”) mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs, were classified as current, compared with $545 million and $2.6 billion at December 31, 2011, respectively.

Summary of Loans by Portfolio Type and Company's Internal Credit Quality Rating

The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating:

			Criticized
(Dollars in Millions)	Pass		Special Mention		Classified (a)		Total Criticized		Total
September 30, 2012
Commercial	$	60,403	$	1,265	$	1,242	$	2,507	$	62,910
Commercial real estate		33,326		785		2,702		3,487		36,813
Residential mortgages (b)		40,666		24		1,212		1,236		41,902
Credit card		16,046		–		356		356		16,402
Other retail		47,522		43		400		443		47,965
Total loans, excluding covered loans		197,963		2,117		5,912		8,029		205,992
Covered loans		11,544		96		518		614		12,158
Total loans	$	209,507	$	2,213	$	6,430	$	8,643	$	218,150
Total outstanding commitments	$	431,162	$	3,725	$	7,276	$	11,001	$	442,163
December 31, 2011
Commercial	$	54,003	$	1,047	$	1,598	$	2,645	$	56,648
Commercial real estate		30,733		793		4,325		5,118		35,851
Residential mortgages (b)		35,814		19		1,249		1,268		37,082
Credit card		16,910		–		450		450		17,360
Other retail		47,665		24		418		442		48,107
Total loans, excluding covered loans		185,125		1,883		8,040		9,923		195,048
Covered loans		13,966		187		634		821		14,787
Total loans	$	199,091	$	2,070	$	8,674	$	10,744	$	209,835
Total outstanding commitments	$	410,457	$	3,418	$	9,690	$	13,108	$	423,565

(a) Classified rating on consumer loans primarily based on delinquency status.

(b) At September 30, 2012, $3.0 billion of GNMA loans 90 days or more past due and $2.2 billion of restructured GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs were classified with a pass rating, compared with $2.6 billion and $2.0 billion at December 31, 2011, respectively.

Summary of Impaired Loans by Portfolio Class

A summary of impaired loans by portfolio class was as follows:

(Dollars in Millions)	Period-end Recorded Investment (a)		Unpaid Principal Balance		Valuation Allowance		Commitments to Lend Additional Funds
September 30, 2012
Commercial	$	382	$	1,341	$	40	$	23
Commercial real estate		1,214		2,466		75		5
Residential mortgages		2,833		3,524		437		–
Credit card		463		462		167		–
Other retail		408		455		64		7
Total impaired loans, excluding GNMA and covered loans		5,300		8,248		783		35
Loans purchased from GNMA mortgage pools		1,631		1,631		36		–
Covered loans		820		1,612		18		13
Total	$	7,751	$	11,491	$	837	$	48
December 31, 2011
Commercial	$	657	$	1,437	$	62	$	68
Commercial real estate		1,436		2,503		124		25
Residential mortgages		2,652		3,193		482		2
Credit card		584		584		219		–
Other retail		188		197		57		–
Total impaired loans, excluding GNMA and covered loans		5,517		7,914		944		95
Loans purchased from GNMA mortgage pools		1,265		1,265		18		–
Covered loans		1,170		1,642		43		49
Total	$	7,952	$	10,821	$	1,005	$	144

(a) Substantially all loans classified as impaired at September 30, 2012 and December 31, 2011, had an associated allowance for credit losses.

Additional Information on Impaired Loans

Additional information on impaired loans follows:

	2012				2011
(Dollars in Millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Three months ended September 30
Commercial	$	413	$	6	$	536	$	4
Commercial real estate		1,250		12		1,558		6
Residential mortgages		2,752		31		2,573		24
Credit card		495		6		492		4
Other retail		354		3		165		1
Total impaired loans, excluding GNMA and covered loans		5,264		58		5,324		39
Loans purchased from GNMA mortgage pools		1,492		20		710		10
Covered loans		883		7		1,145		7
Total	$	7,639	$	85	$	7,179	$	56
Nine months ended September 30
Commercial	$	496	$	11	$	529	$	7
Commercial real estate		1,371		29		1,519		10
Residential mortgages		2,692		87		2,540		74
Credit card		529		22		471		10
Other retail		259		7		160		3
Total impaired loans, excluding GNMA and covered loans		5,347		156		5,219		104
Loans purchased from GNMA mortgage pools		1,363		51		433		19
Covered loans		1,042		20		584		34
Total	$	7,752	$	227	$	6,236	$	157

Loans Modified as TDRs

The following table provides a summary of loans modified as TDRs during the periods presented, by portfolio class:

	2012						2011
(Dollars in Millions)	Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance		Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance
Three months ended September 30
Commercial		1,754	$	54	$	58		1,137	$	89	$	74
Commercial real estate		63		91		80		115		124		115
Residential mortgages		2,717		344		336		748		155		156
Credit card		14,137		52		67		14,942		78		77
Other retail		6,231		159		156		956		15		16
Total loans, excluding GNMA and covered loans		24,902		700		697		17,898		461		438
Loans purchased from GNMA mortgage pools		4,859		660		589		2,110		291		312
Covered loans		73		49		46		67		148		133
Total loans		29,834	$	1,409	$	1,332		20,075	$	900	$	883
Nine months ended September 30
Commercial		4,081	$	215	$	195		3,984	$	337	$	310
Commercial real estate		245		416		390		380		906		896
Residential mortgages		3,788		529		517		2,571		515		512
Credit card		39,040		189		203		41,610		239		238
Other retail		8,028		194		191		3,020		55		55
Total loans, excluding GNMA and covered loans		55,182		1,543		1,496		51,565		2,052		2,011
Loans purchased from GNMA mortgage pools		8,436		1,116		1,087		6,042		813		871
Covered loans		166		246		234		233		456		430
Total loans		63,784	$	2,905	$	2,817		57,840	$	3,321	$	3,312

Loans Modified as TDRs have Subsequently been Fully or Partially Charged-Off

The following table provides a summary of TDR loans that defaulted (fully or partially charged-off or became 90 days or more past due) during the periods presented that were modified as TDRs within 12 months previous to default.

	2012				2011
(Dollars in Millions)	Number of Loans		Amount Defaulted		Number of Loans		Amount Defaulted
Three months ended September 30
Commercial		195	$	2		245	$	13
Commercial real estate		13		12		29		32
Residential mortgages		116		30		96		20
Credit card		2,536		14		1,803		9
Other retail		189		4		141		2
Total loans, excluding GNMA and covered loans		3,049		62		2,314		76
Loans purchased from GNMA mortgage pools		248		34		222		31
Covered loans		8		3		–		–
Total loans		3,305	$	99		2,536	$	107
Nine months ended September 30
Commercial		652	$	33		513	$	23
Commercial real estate		96		176		37		37
Residential mortgages		427		64		536		112
Credit card		7,452		42		5,366		27
Other retail		531		8		397		9
Total loans, excluding GNMA and covered loans		9,158		323		6,849		208
Loans purchased from GNMA mortgage pools		731		106		475		66
Covered loans		49		90		–		–
Total loans		9,938	$	519		7,324	$	274

Carrying Amount of Covered Assets

Covered assets represent loans and other assets acquired from the FDIC, subject to loss sharing agreements, and include expected reimbursements from the FDIC. The carrying amount of the covered assets consisted of purchased impaired loans, purchased nonimpaired loans, and other assets as shown in the following table:

	September 30, 2012								December 31, 2011
(Dollars in Millions)	Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total		Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total
Commercial loans	$	15	$	144	$	–	$	159	$	68	$	137	$	–	$	205
Commercial real estate loans		1,519		3,104		–		4,623		1,956		4,037		–		5,993
Residential mortgage loans		3,850		1,184		–		5,034		3,830		1,360		–		5,190
Credit card loans		–		5		–		5		–		6		–		6
Other retail loans		–		798		–		798		–		867		–		867
Losses reimbursable by the FDIC (a)		–		–		1,539		1,539		–		–		2,526		2,526
Covered loans		5,384		5,235		1,539		12,158		5,854		6,407		2,526		14,787
Foreclosed real estate		–		–		198		198		–		–		274		274
Total covered assets	$	5,384	$	5,235	$	1,737	$	12,356	$	5,854	$	6,407	$	2,800	$	15,061

(a) Relates to loss sharing agreements with remaining terms from 2 to 7 years.

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Components of Income Tax Expense (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Federal
Current	$ 461	$ 450	$ 1,416	$ 907
Deferred	50	(41)	26	232
Federal income tax	511	409	1,442	1,139
State
Current	77	85	239	157
Deferred	5	(4)	3	18
State income tax	82	81	242	175
Applicable income taxes	$ 593	$ 490	$ 1,684	$ 1,314

XML

Consolidated Statement of Cash Flows (Unaudited) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Operating Activities
Net income attributable to U.S. Bancorp	$ 4,227	$ 3,522
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses	1,439	1,846
Depreciation and amortization of premises and equipment	212	196
Amortization of intangibles	208	225
Provision for deferred income taxes	29	250
(Gain) loss on sale of loans held for sale	(1,982)	(469)
(Gain) loss on sale of securities and other assets	(198)	(13)
Loans originated for sale in the secondary market, net of repayments	(60,331)	(29,840)
Proceeds from sales of loans held for sale	59,052	33,091
Other, net	1,219	(53)
Net cash provided by operating activities	3,875	8,755
Investing Activities
Proceeds from sales of available-for-sale investment securities	1,753	926
Proceeds from maturities of held-to-maturity investment securities	4,005	714
Proceeds from maturities of available-for-sale investment securities	11,664	7,872
Purchases of held-to-maturity investment securities	(8,003)	(15,192)
Purchases of available-for-sale investment securities	(12,065)	(8,399)
Net increase in loans outstanding	(9,518)	(8,458)
Proceeds from sales of loans	1,614	454
Purchases of loans	(2,139)	(1,750)
Acquisitions, net of cash acquired	94	650
Other, net	(668)	(1,006)
Net cash used in investing activities	(13,263)	(24,189)
Financing Activities
Net increase in deposits	13,099	16,593
Net decrease in short-term borrowings	(2,616)	(644)
Proceeds from issuance of long-term debt	4,553	2,002
Principal payments or redemption of long-term debt	(10,271)	(3,048)
Proceeds from issuance of preferred stock	2,163	676
Proceeds from issuance of common stock	342	125
Repurchase of common stock	(1,343)	(383)
Cash dividends paid on preferred stock	(139)	(88)
Cash dividends paid on common stock	(980)	(578)
Net cash provided by financing activities	4,808	14,655
Change in cash and due from banks	(4,580)	(779)
Cash and due from banks at beginning of period	13,962	14,487
Cash and due from banks at end of period	$ 9,382	$ 13,708

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Consolidated Balance Sheet (Parenthetical) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Held-to-maturity securities, fair value	$ 35,226,000,000	$ 19,216,000,000
Held-to-maturity securities, pledged as collateral	1,146,000,000	155,000,000
Available-for-sale securities, pledged as collateral	2,217,000,000	6,831,000,000
Mortgage loans, carried at fair value	9,815,000,000	6,925,000,000
Time deposits	$ 100,000	$ 100,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized (actual number of shares)	4,000,000,000	4,000,000,000
Common stock, shares issued (actual number of shares)	2,125,725,742	2,125,725,742
Treasury stock, shares (actual number of shares)	245,650,205	215,904,019

XML

Derivative Instruments

9 Months Ended

Sep. 30, 2012

Derivative Instruments

Note 10 Derivative Instruments

The Company recognizes all derivatives in the consolidated balance sheet at fair value in other assets or in other liabilities. On the date the Company enters into a derivative contract, the derivative is designated as either a hedge of the fair value of a recognized asset or liability (“fair value hedge”); a hedge of a forecasted transaction or the variability of cash flows to be paid related to a recognized asset or liability (“cash flow hedge”); a hedge of the volatility of an investment in foreign operations driven by changes in foreign currency exchange rates (“net investment hedge”); or a designation is not made as it is a customer-related transaction, an economic hedge for asset/liability risk management purposes or another stand-alone derivative created through the Company’s operations (“free-standing derivative”).

The following table provides information on the fair value of the Company’s derivative positions:

	September 30, 2012						December 31, 2011
(Dollars in Millions)	Asset Derivatives			Liability Derivatives			Asset Derivatives			Liability Derivatives
Total fair value of derivative positions	$	2,176		$	2,640		$	1,913		$	2,554
Netting (a)		(354	)		(1,687	)		(294	)		(1,889	)
Total	$	1,822		$	953		$	1,619		$	665

(a) Represents netting of derivative asset and liability balances, and related collateral, with the same counterparty subject to master netting agreements. At September 30, 2012, the amount of cash and money market investments collateral posted by counterparties that was netted against derivative assets was $89 million and the amount of cash collateral posted by the Company that was netted against derivative liabilities was $1.4 billion, compared with $88 million and $1.7 billion, respectively, at December 31, 2011.

Of the Company’s $65.5 billion of total notional amount of asset and liability management positions at September 30, 2012, $12.0 billion was designated as a fair value, cash flow or net investment hedge. When a derivative is designated as a fair value, cash flow or net investment hedge, the Company performs an assessment, at inception and, at a minimum, quarterly thereafter, to determine the effectiveness of the derivative in offsetting changes in the value or cash flows of the hedged item(s).

Fair Value Hedges These derivatives are primarily interest rate swaps that hedge the change in fair value related to interest rate changes of underlying fixed-rate debt and junior subordinated debentures. Changes in the fair value of derivatives designated as fair value hedges, and changes in the fair value of the hedged items, are recorded in earnings. All fair value hedges were highly effective for the nine months ended September 30, 2012, and the change in fair value attributed to hedge ineffectiveness was not material.

Cash Flow Hedges These derivatives are interest rate swaps that are hedges of the forecasted cash flows from the underlying variable-rate loans and debt. Changes in the fair value of derivatives designated as cash flow hedges are recorded in other comprehensive income (loss) until the cash flows of the hedged items are realized. If a derivative designated as a cash flow hedge is terminated or ceases to be highly effective, the gain or loss in other comprehensive income (loss) is amortized to earnings over the period the forecasted hedged transactions impact earnings. If a hedged forecasted transaction is no longer probable, hedge accounting is ceased and any gain or loss included in other comprehensive income (loss) is reported in earnings immediately, unless the forecasted transaction is at least reasonably possible of occurring, whereby the amounts within other comprehensive income (loss) remain. At September 30, 2012, the Company had $433 million (net-of-tax) of realized and unrealized losses on derivatives classified as cash flow hedges recorded in other comprehensive income (loss), compared with $489 million (net-of-tax) at December 31, 2011. The estimated amount to be reclassified from other comprehensive income (loss) into earnings during the remainder of 2012 and the next 12 months are losses of $33 million (net-of-tax) and $132 million (net-of-tax), respectively. This amount includes gains and losses related to hedges that were terminated early for which the forecasted transactions are still probable. All cash flow hedges were highly effective for the nine months ended September 30, 2012, and the change in fair value attributed to hedge ineffectiveness was not material.

Net Investment Hedges The Company uses forward commitments to sell specified amounts of certain foreign currencies and non-derivative debt instruments to hedge the volatility of its investment in foreign operations driven by fluctuations in foreign currency exchange rates. The ineffectiveness on all net investment hedges was not material for the nine months ended September 30, 2012. There were no derivatives designated as net investment hedges at September 30, 2012. At September 30, 2012, the carrying amount of non-derivative debt instruments designated as net investment hedges was $719 million. There were no non-derivative debt instruments designated as net investment hedges at December 31, 2011.

Other Derivative Positions The Company enters into free-standing derivatives to mitigate interest rate risk and for other risk management purposes. These derivatives include forward commitments to sell to-be-announced securities (“TBAs”) and other commitments to sell residential mortgage loans, which are used to economically hedge the interest rate risk related to residential mortgage loans held for sale and unfunded mortgage loan commitments. The Company also enters into interest rate swaps, forward commitments to buy TBAs, U.S. Treasury futures and options on U.S. Treasury futures to economically hedge the change in the fair value of the Company’s MSRs. The Company also enters into foreign currency forwards to economically hedge remeasurement gains and losses the Company recognizes on foreign currency denominated assets and liabilities. In addition, the Company acts as a seller and buyer of interest rate derivatives and foreign exchange contracts for its customers. To mitigate the market and liquidity risk associated with these customer derivatives, the Company enters into similar offsetting positions with broker-dealers. The Company also has derivative contracts that are created through its operations, including commitments to originate mortgage loans held for sale and certain derivative financial guarantee contracts.

For additional information on the Company’s purpose for entering into derivative transactions and its overall risk management strategies, refer to “Management Discussion and Analysis — Use of Derivatives to Manage Interest Rate and Other Risks” which is incorporated by reference into these Notes to Consolidated Financial Statements.

The following table summarizes the asset and liability management derivative positions of the Company:

	Asset Derivatives						Liability Derivatives
(Dollars in Millions)	Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years		Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years
September 30, 2012
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	500	$	30		3.34	$	–	$	–		–
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		–		–		–		4,468		771		3.96
Receive fixed/pay floating swaps		7,000		51		2.10		–		–		–
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		15,159		311		.08		107		1		.04
Sell		2,720		7		.14		17,673		389		.08
Options
Purchased		2,250		–		.07		–		–		–
Written		6,097		204		.12		8		1		.19
Receive fixed/pay floating swaps		3,975		45		10.23		–		–		–
Foreign exchange forward contracts		1,125		7		.02		1,446		5		.03
Equity contracts		32		–		.53		33		1		2.72
Credit contracts		909		3		4.45		2,005		10		3.28
December 31, 2011
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps		500		27		4.09		–		–		–
Foreign exchange cross-currency swaps		688		17		5.17		432		23		5.17
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		–		–		–		4,788		803		4.03
Receive fixed/pay floating swaps		750		–		2.75		6,250		6		2.86
Net investment hedges
Foreign exchange forward contracts		708		4		.08		–		–		–
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		14,270		150		.07		29		–		.12
Sell		231		1		.15		14,415		134		.11
Options
Purchased		1,250		–		.07		–		–		–
Written		4,421		80		.10		11		1		.13
Receive fixed/pay floating swaps		2,625		9		10.21		–		–		–
Foreign exchange forward contracts		307		1		.08		1,414		11		.08
Equity contracts		54		1		1.05		10		–		.64
Credit contracts		800		7		3.71		1,600		8		3.59

The following table summarizes the customer-related derivative positions of the Company:

	Asset Derivatives						Liability Derivatives
(Dollars in Millions)	Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years		Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years
September 30, 2012
Interest rate contracts
Receive fixed/pay floating swaps	$	17,262	$	1,186		4.74	$	359	$	8		16.45
Pay fixed/receive floating swaps		280		8		19.79		17,433		1,148		4.76
Options
Purchased		3,014		15		5.34		28		–		4.67
Written		202		–		.73		2,839		15		5.66
Foreign exchange rate contracts
Forwards, spots and swaps (a)		11,038		301		.36		10,799		283		.45
Options
Purchased		346		8		.65		–		–		–
Written		–		–		–		346		8		.65
December 31, 2011
Interest rate contracts
Receive fixed/pay floating swaps		16,230		1,216		4.98		523		1		2.52
Pay fixed/receive floating swaps		99		–		1.81		16,206		1,182		5.10
Options
Purchased		2,660		26		6.11		–		–		–
Written		–		–		–		2,660		26		6.11
Foreign exchange rate contracts
Forwards, spots and swaps (a)		7,936		369		.54		7,731		354		.54
Options
Purchased		127		5		.41		–		–		–
Written		–		–		–		127		5		.41

(a) Reflects the net of long and short positions.

The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax):

	Three Months Ended September 30,												Nine Months Ended September 30,
	Gains (Losses) Recognized in Other Comprehensive Income (Loss)						Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings						Gains (Losses) Recognized in Other Comprehensive Income (Loss)						Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)	2012			2011			2012			2011			2012			2011			2012			2011
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts (a)	$	(19	)	$	(120	)	$	(33	)	$	(34	)	$	(42	)	$	(199	)	$	(98	)	$	(103	)
Net investment hedges
Foreign exchange forward contracts		–			(57	)		–			–			(6	)		(104	)		–			–
Non-derivative debt instruments		(11	)		–			–			–			26			–			–			–

Note: Ineffectiveness on cash flow and net investment hedges was not material for the three and nine months ended September 30, 2012 and 2011.

(a) Gains (Losses) reclassified from other comprehensive income (loss) into interest income on loans and interest expense on long-term debt.

The table below shows the gains (losses) recognized in earnings for fair value hedges, other economic hedges and the customer-related positions:

	Location of Gains (Losses) Recognized in Earnings		Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)			2012			2011			2012			2011
Asset and Liability Management Positions
Fair value hedges (a)
Interest rate contracts		Other noninterest income	$	2		$	1		$	5		$	25
Foreign exchange cross-currency swaps		Other noninterest income		–			(111	)		42			(13	)
Other economic hedges
Interest rate contracts
Futures and forwards		Mortgage banking revenue		(44	)		17			67			(7	)
Purchased and written options		Mortgage banking revenue		290			181			689			323
Receive fixed/pay floating swaps		Mortgage banking revenue		48			377			186			479
Pay fixed/receive floating swaps		Mortgage banking revenue		–			4			–			4
Foreign exchange forward contracts		Commercial products revenue		(25	)		(48	)		(62	)		(66	)
Equity contracts		Compensation expense		1			1			2			2
Credit contracts		Other noninterest income/expense		(2	)		4			(8	)		2
Customer-Related Positions
Interest rate contracts
Receive fixed/pay floating swaps		Other noninterest income		(16	)		366			(10	)		352
Pay fixed/receive floating swaps		Other noninterest income		19			(376	)		15			(365	)
Foreign exchange rate contracts
Forwards, spots and swaps		Commercial products revenue		13			14			36			41

(a) Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were $(2) million and zero for the three months ended September 30, 2012, respectively, and $(3) million and $117 million for the three months ended September 30, 2011, respectively. Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were $(5) million and $(44) million for the nine months ended September 30, 2012, respectively, and $(27) million and $20 million for the nine months ended September 30, 2011, respectively. The ineffective portion was immaterial for the three and nine months ended September 30, 2012 and 2011.

Derivatives are subject to credit risk associated with counterparties to the derivative contracts. The Company measures that credit risk using a credit valuation adjustment and includes it within the fair value of the derivative. The Company manages counterparty credit risk through diversification of its derivative positions among various counterparties, by entering into master netting agreements and, where possible, by requiring collateral agreements. A master netting agreement allows two counterparties, who have multiple derivative contracts with each other, the ability to net settle amounts under all contracts, including any related collateral posted, through a single payment and in a single currency. Collateral agreements require the counterparty to post, on a daily basis, collateral (typically cash or money market investments) equal to the Company’s net derivative receivable. For highly-rated counterparties, the agreements may include minimum dollar posting thresholds, but allow for the Company to call for immediate, full collateral coverage when credit-rating thresholds are triggered by counterparties.

The Company’s collateral agreements are bilateral and, therefore, contain provisions that require collateralization of the Company’s net liability derivative positions. Required collateral coverage is based on certain net liability thresholds and contingent upon the Company’s credit rating from two of the nationally recognized statistical rating organizations. If the Company’s credit rating were to fall below credit ratings thresholds established in the collateral agreements, the counterparties to the derivatives could request immediate full collateral coverage for derivatives in net liability positions. The aggregate fair value of all derivatives under collateral agreements that were in a net liability position at September 30, 2012, was $1.7 billion. At September 30, 2012, the Company had $1.4 billion of cash posted as collateral against this net liability position.

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2012	Oct. 31, 2012
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Trading Symbol	USB
Entity Registrant Name	US BANCORP \DE\
Entity Central Index Key	0000036104
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,880,370,592

XML

Fair Values of Assets and Liabilities

9 Months Ended

Sep. 30, 2012

Fair Values of Assets and Liabilities

Note 11 Fair Values of Assets and Liabilities

The Company uses fair value measurements for the initial recording of certain assets and liabilities, periodic remeasurement of certain assets and liabilities, and disclosures. Derivatives, trading and available-for-sale investment securities, certain mortgage loans held for sale (“MLHFS”) and MSRs are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as loans held for sale, loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-fair value accounting or impairment write-downs of individual assets.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value measurement reflects all of the assumptions that market participants would use in pricing the asset or liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset, and the risk of nonperformance.

The Company groups its assets and liabilities measured at fair value into a three-level hierarchy for valuation techniques used to measure financial assets and financial liabilities at fair value. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are:

• Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 1 includes U.S. Treasury and exchange-traded instruments.

• Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 includes debt securities that are traded less frequently than exchange-traded instruments and which are typically valued using third party pricing services; derivative contracts and other assets and liabilities, including securities, whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data; and MLHFS whose values are determined using quoted prices for similar assets or pricing models with inputs that are observable in the market or can be corroborated by observable market data.

• Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category includes MSRs, certain debt securities and certain derivative contracts.

When the Company changes its valuation inputs for measuring financial assets and financial liabilities at fair value, either due to changes in current market conditions or other factors, it may need to transfer those assets or liabilities to another level in the hierarchy based on the new inputs used. The Company recognizes these transfers at the end of the reporting period that the transfers occur. During the nine months ended September 30, 2012 and 2011, there were no transfers of financial assets or financial liabilities between the hierarchy levels.

The Company has processes and controls in place to increase the reliability of estimates it makes in determining fair value measurements. Items quoted on an exchange are verified to the quoted price. Items provided by a third party pricing service are subject to price verification procedures as discussed in more detail in the specific valuation discussions provided in the section that follows. For fair value measurements modeled internally, the Company’s valuation models are subject to the Company’s Model Risk Governance Policy and Program, as maintained by the Company’s credit administration department. The purpose of model validation is to assess the accuracy of the models’ input, processing, and reporting components. All models are required to be independently reviewed and approved prior to being placed in use, and are subject to formal change control procedures. Under the Company’s Model Risk Governance Policy, models are required to be reviewed at least annually to ensure they are operating as intended. Inputs into the models are market observable inputs whenever available. When market observable inputs are not available, the inputs are developed based upon analysis of historical experience and evaluation of other relevant market data. Significant unobservable model inputs are subject to review by senior management in corporate functions, who are independent from the modeling. Significant unobservable model inputs are also compared to actual results, typically on a quarterly basis. Significant Level 3 fair value measurements are also subject to corporate-level review and are benchmarked to market transactions or other market data, when available. Additional discussion of processes and controls are provided in the valuation methodologies section that follows.

The following section describes the valuation methodologies used by the Company to measure financial assets and liabilities at fair value and for estimating fair value for financial instruments not recorded at fair value as required under disclosure guidance related to the fair value of financial instruments. In addition, the following section includes an indication of the level of the fair value hierarchy in which the assets or liabilities are classified. Where appropriate, the description includes information about the valuation models and key inputs to those models. During the nine months ended September 30, 2012 and 2011, there were no significant changes to the valuation techniques used by the Company to measure fair value.

Cash and Due From Banks The carrying value of cash and due from banks approximate fair value and are classified within Level 1. Fair value is provided for disclosure purposes only.

Federal Funds Sold and Securities Purchased Under Resale Agreements The carrying value of federal funds sold and securities purchased under resale agreements approximate fair value because of the relatively short time between the origination of the instrument and its expected realization and are classified within Level 2. Fair value is provided for disclosure purposes only.

Investment Securities When quoted market prices for identical securities are available in an active market, these prices are used to determine fair value and these securities are classified within Level 1 of the fair value hierarchy. Level 1 investment securities are predominantly U.S. Treasury securities.

For other securities, quoted market prices may not be readily available for the specific securities. When possible, the Company determines fair value based on market observable information, including quoted market prices for similar securities, inactive transaction prices, and broker quotes. These securities are classified within Level 2 of the fair value hierarchy. Level 2 valuations are generally provided by a third party pricing service. The Company reviews the valuation methodologies utilized by the pricing service and, on a quarterly basis, reviews the security level prices provided by the pricing service against management’s expectation of fair value, based on changes in various benchmarks and market knowledge from recent trading activity. Additionally, each quarter, the Company validates the fair value provided by the pricing services by comparing them to recent observable market trades (where available), broker provided quotes, or other independent secondary pricing sources. Prices obtained from the pricing service are adjusted if they are found to be inconsistent with observable market data. Level 2 investment securities are predominantly agency mortgage-backed securities, certain other asset-backed securities, municipal securities, corporate debt securities, agency debt securities and perpetual preferred securities.

The fair value of securities for which there are no market trades, or where trading is inactive as compared to normal market activity, are classified within Level 3 of the fair value hierarchy. The Company determines the fair value of these securities using a discounted cash flow methodology and incorporating observable market information, where available. These valuations are modeled by a unit within the Company’s treasury department, which is separate from the portfolio management function. The valuations use assumptions regarding housing prices, interest rates and borrower performance. Inputs are refined and updated at least quarterly to reflect market developments and actual performance. The primary valuation drivers of these securities are the prepayment rates, default rates and default severities associated with the underlying collateral, as well as the discount rate used to calculate the present value of the projected cash flows. Level 3 fair values, including the assumptions used, are subject to review by senior management in corporate functions, who are independent from the modeling. The fair value measurements are also compared to fair values provided by third party pricing services, where available. Securities classified within Level 3 include non-agency mortgage-backed securities, non-agency commercial mortgage-backed securities, certain asset-backed securities, certain collateralized debt obligations and collateralized loan obligations, certain corporate debt securities and SIV-related securities.

Certain Mortgage Loans Held For Sale MLHFS measured at fair value, for which an active secondary market and readily available market prices exist, are initially valued at the transaction price and are subsequently valued by comparison to instruments with similar collateral and risk profiles. MLHFS are classified within Level 2. Included in mortgage banking revenue was a $241 million net gain and a $98 million net gain for the three months ended September 30, 2012 and 2011, respectively, and a $501 million net gain and a $38 million net loss for the nine months ended September 30, 2012 and 2011, respectively, from the changes to fair value of these MLHFS under fair value option accounting guidance. Changes in fair value due to instrument specific credit risk were immaterial. Interest income for MLHFS is measured based on contractual interest rates and reported as interest income in the Consolidated Statement of Income. Electing to measure MLHFS at fair value reduces certain timing differences and better matches changes in fair value of these assets with changes in the value of the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting.

Loans The loan portfolio includes adjustable and fixed-rate loans, the fair value of which was estimated using discounted cash flow analyses and other valuation techniques. The expected cash flows of loans considered historical prepayment experiences and estimated credit losses and were discounted using current rates offered to borrowers of similar credit characteristics. Generally, loan fair values reflect Level 3 information. Fair value is provided for disclosure purposes only, with the exception of impaired collateral-based loans that are measured at fair value on a non-recurring basis utilizing the underlying collateral fair value.

Mortgage Servicing Rights MSRs are valued using a discounted cash flow methodology and third party prices, if available. Accordingly, MSRs are classified within Level 3. The Company determines fair value by estimating the present value of the asset’s future cash flows using prepayment rates, discount rates, and other assumptions. The MSR valuations, as well as the assumptions used, are developed by the mortgage banking division and are subject to review by senior management in corporate functions, who are independent from the modeling. The MSR valuations and assumptions are validated through comparison to trade information and industry surveys when available, and are also compared to independent third party valuations each quarter. Risks inherent in MSR valuation include higher than expected prepayment rates and/or delayed receipt of cash flows. There is minimal market activity for MSRs, therefore the determination of fair value requires significant management judgment. Refer to Note 5 for further information on MSR valuation assumptions.

Derivatives The majority of derivatives held by the Company are executed over-the-counter and are valued using standard cash flow, Black-Derman-Toy and Monte Carlo valuation techniques. The models incorporate inputs, depending on the type of derivative, including interest rate curves, foreign exchange rates and volatility. In addition, all derivative values incorporate an assessment of the risk of counterparty nonperformance, measured based on the Company’s evaluation of credit risk as well as external assessments of credit risk, where available. The Company monitors and manages its nonperformance risk by considering its ability to net derivative positions under master netting agreements, as well as collateral received or provided under collateral support agreements. Accordingly, the Company has elected to measure the fair value of derivatives, at a counterparty level, on a net basis. The majority of the derivatives are classified within Level 2 of the fair value hierarchy, as the significant inputs to the models, including nonperformance risk, are observable. However, certain derivative transactions are with counterparties where risk of nonperformance cannot be observed in the market, and therefore the credit valuation adjustments result in these derivatives being classified within Level 3 of the fair value hierarchy. The credit valuation adjustments for nonperformance risk are determined by the Company’s treasury department using credit assumptions provided by credit administration. The credit assumptions are compared to actual results quarterly and are recalibrated as appropriate.

The Company also has commitments to sell, purchase and originate mortgage loans that meet the accounting requirements of a derivative. These mortgage loan commitments are valued by pricing models that include market observable and unobservable inputs, which result in the commitments being classified within Level 3 of the fair value hierarchy. The unobservable inputs include the percentage of commitments that actually become a closed loan and the MSR value that is inherent in the underlying loan value, both of which are developed by the Company’s mortgage banking division. The closed loan percentages for the mortgage loan commitments are monitored on an on-going basis, as these percentages are also used for the Company’s economic hedging activities. The inherent MSR value for the commitments are generated by the same models used for the Company’s MSRs and thus are subject to the same processes and controls as described for the MSRs above.

Other Financial Instruments Other financial instruments include cost method equity investments and community development and tax-advantaged related assets and liabilities. The majority of the Company’s cost method equity investments are in Federal Home Loan Bank and Federal Reserve Bank stock, whose carrying amounts approximate their fair value and are classified within Level 2. Investments in private equity and other limited partnership funds are estimated using fund provided net asset values. These equity investments are classified within Level 3. Fair value is provided for disclosure purposes only.

Community development and tax-advantaged investments generate a return primarily through the realization of federal and state income tax credits, with a duration typically equal to the period that the tax credits are realized. Asset balances primarily represent the assets of the underlying community development and tax-advantaged entities the Company consolidated per applicable authoritative accounting guidance. Liabilities of the underlying consolidated entities were included in long-term debt. The carrying value of the asset balances are a reasonable estimate of fair value and are classified within Level 3. Refer to Note 4 for further information on community development and tax-advantaged related assets and liabilities. Fair value is provided for disclosure purposes only.

Deposit Liabilities The fair value of demand deposits, savings accounts and certain money market deposits is equal to the amount payable on demand. The fair value of fixed-rate certificates of deposit was estimated by discounting the contractual cash flow using current market rates. Deposit liabilities are classified within Level 2. Fair value is provided for disclosure purposes only.

Short-term Borrowings Federal funds purchased, securities sold under agreements to repurchase, commercial paper and other short-term funds borrowed have floating rates or short-term maturities. The fair value of short-term borrowings was determined by discounting contractual cash flows using current market rates. Short-term borrowings are classified within Level 2. Fair value is provided for disclosure purposes only.

Long-term Debt The fair value for most long-term debt was determined by discounting contractual cash flows using current market rates. Junior subordinated debt instruments were valued using market quotes. Long-term debt is classified within Level 2. Fair value is provided for disclosure purposes only.

Loan Commitments, Letters of Credit and Guarantees The fair value of commitments, letters of credit and guarantees represents the estimated costs to terminate or otherwise settle the obligations with a third party. Other loan commitments, letters of credit and guarantees are not actively traded, and the Company estimates their fair value based on the related amount of unamortized deferred commitment fees adjusted for the probable losses for these arrangements. These arrangements are classified within Level 3. Fair value is provided for disclosure purposes only.

Significant Unobservable Inputs of Level 3 Assets and Liabilities

The following section provides information on the significant inputs used by the Company to determine the fair value measurements of Level 3 assets and liabilities recorded at fair value on the consolidated balance sheet. In addition, the following section includes a discussion of the sensitivity of the fair value measurements to changes in the significant inputs and a description of any interrelationships between these inputs for Level 3 assets and liabilities recorded at fair value on a recurring basis. The discussion below excludes nonrecurring fair value measurements of collateral value used for impairment measures for loans and other real estate owned. These valuations utilize third party appraisal or broker price opinions, and are classified as Level 3 due to the significant judgment involved.

Available-For-Sale Investment Securities The significant unobservable inputs used in the fair value measurement of the Company’s modeled Level 3 available-for-sale investment securities are prepayment rates, probability of default and loss severities associated with the underlying collateral, as well as the discount margin used to calculate the present value of the projected cash flows. The majority of the Company’s Level 3 securities were acquired at discounts. Increases in prepayment rates will typically result in higher fair values, as increased prepayment rates accelerate the receipt of expected cash flows and reduce exposure to credit losses. Increases in the probability of default and loss severities will result in lower fair values, as these increases reduce expected cash flows. Discount margin is the Company’s estimate of the current market spread above the respective benchmark rate. Higher discount margin will result in lower fair values, as it reduces the present value of the expected cash flows.

Prepayment rates generally move in the opposite direction of market interest rates. In the current environment, an increase in the probability of default will generally be accompanied with an increase in loss severity, as both are impacted by underlying collateral values. Discount margins are influenced by market expectations about the security’s collateral performance, and therefore may directionally move with probability and severity of default; however, discount margins are also impacted by broader market forces, such as competing investment yields, sector liquidity, economic news, and other macroeconomic factors.

The following table shows the significant valuation assumption ranges for Level 3 available-for-sale investment securities at September 30, 2012:

	Minimum			Maximum			Average
Residential Prime Non-Agency Mortgage-Backed Securities (a)
Estimated lifetime prepayment rates		6	%		20	%		13	%
Lifetime probability of default rates		–			5			3
Lifetime loss severity rates		25			80			42
Discount margin		3			7			5
Residential Non-Prime Non-Agency Mortgage-Backed Securities (b)
Estimated lifetime prepayment rates		2	%		10	%		6	%
Lifetime probability of default rates		3			10			6
Lifetime loss severity rates		20			70			53
Discount margin		3			9			6
Other Asset-Backed Securities
Estimated lifetime prepayment rates		6	%		6	%		6	%
Lifetime probability of default rates		4			4			4
Lifetime loss severity rates		40			40			40
Discount margin		18			18			18

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

Mortgage Servicing Rights The significant unobservable inputs used in the fair value measurement of the Company’s MSRs are expected prepayments and the discount rate used to calculate the present value of the projected cash flows. Significant increases in either of these inputs in isolation would result in a significantly lower fair value measurement. Significant decreases in either of these inputs in isolation would result in a significantly higher fair value measurement. There is no direct interrelationship between prepayments and discount rate. Prepayment rates generally move in the opposite direction of market interest rates. Discount rates are generally impacted by changes in market return requirements.

The following table shows the significant valuation assumption ranges for MSRs at September 30, 2012:

	Minimum			Maximum			Average
Expected prepayment		14	%		35	%		22	%
Discount rate		10			14			10

Derivatives The Company has two distinct Level 3 derivative portfolios: (i) the Company’s commitments to sell, purchase and originate mortgage loans that meet the requirements of a derivative, and (ii) the Company’s asset/liability and customer-related derivatives that are Level 3 due to unobservable inputs related to measurement of risk of nonperformance by the counterparty.

The significant unobservable inputs used in the fair value measurement of the Company’s derivative commitments to sell, purchase and originate mortgage loans are the percentage of commitments that actually become a closed loan and the MSR value that is inherent in the underlying loan value. A significant increase in the rate of loans that close would result in a larger derivative asset or liability. A significant increase in the inherent MSR value would result in an increase in the derivative asset or a reduction in the derivative liability. Expected loan close rates and the inherent MSR values are directly impacted by changes in market rates and will generally move in the same direction as interest rates.

The following table shows the significant valuation assumption ranges for the Company’s derivative commitments to sell, purchase and originate mortgage loans at September 30, 2012:

	Minimum			Maximum			Average
Expected loan close rate		9	%		100	%		73	%
Inherent MSR value (basis points per loan)		10			195			99

The significant unobservable input used in the fair value measurement of certain of the Company’s asset/liability and customer-related derivatives is the credit valuation adjustment related to the risk of counterparty nonperformance. A significant increase in the credit valuation adjustment would result in a lower fair value measurement. A significant decrease in the credit valuation adjustment would result in a higher fair value measurement. The credit valuation adjustment is impacted by changes in the Company’s assessment of the counterparty’s credit position. At September 30, 2012, the minimum, maximum and average credit valuation adjustment as a percentage of the derivative contract fair value prior to adjustment was 0 percent, 97 percent and 6 percent, respectively.

The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis:

(Dollars in Millions)	Level 1		Level 2		Level 3		Netting			Total
September 30, 2012
Available-for-sale securities
U.S. Treasury and agencies	$	504	$	239	$	–	$	–		$	743
Mortgage-backed securities
Residential
Agency		–		29,362		–		–			29,362
Non-agency
Prime (a)		–		–		631		–			631
Non-prime (b)		–		–		340		–			340
Commercial
Agency		–		202		–		–			202
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		–		42		–		–			42
Other		–		582		16		–			598
Obligations of state and political subdivisions		–		6,457		–		–			6,457
Obligations of foreign governments		–		6		–		–			6
Corporate debt securities		–		700		9		–			709
Perpetual preferred securities		–		278		–		–			278
Other investments		256		12		–		–			268
Total available-for-sale		760		37,880		996		–			39,636
Mortgage loans held for sale		–		9,815		–		–			9,815
Mortgage servicing rights		–		–		1,553		–			1,553
Derivative assets		–		637		1,539		(354	)		1,822
Other assets		179		554		–		–			733
Total	$	939	$	48,886	$	4,088	$	(354	)	$	53,559
Derivative liabilities	$	–	$	2,591	$	49	$	(1,687	)	$	953
Other liabilities		39		553		–		–			592
Total	$	39	$	3,144	$	49	$	(1,687	)	$	1,545
December 31, 2011
Available-for-sale securities
U.S. Treasury and agencies	$	562	$	495	$	–	$	–		$	1,057
Mortgage-backed securities
Residential
Agency		–		40,314		–		–			40,314
Non-agency
Prime (a)		–		–		803		–			803
Non-prime (b)		–		–		802		–			802
Commercial
Agency		–		140		–		–			140
Non-agency		–		–		42		–			42
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		–		86		120		–			206
Other		–		564		117		–			681
Obligations of state and political subdivisions		–		6,539		–		–			6,539
Obligations of foreign governments		–		6		–		–			6
Corporate debt securities		–		818		9		–			827
Perpetual preferred securities		–		318		–		–			318
Other investments		193		9		–		–			202
Total available-for-sale		755		49,289		1,893		–			51,937
Mortgage loans held for sale		–		6,925		–		–			6,925
Mortgage servicing rights		–		–		1,519		–			1,519
Derivative assets		–		632		1,281		(294	)		1,619
Other assets		146		467		–		–			613
Total	$	901	$	57,313	$	4,693	$	(294	)	$	62,613
Derivative liabilities	$	–	$	2,501	$	53	$	(1,889	)	$	665
Other liabilities		75		538		–		–			613
Total	$	75	$	3,039	$	53	$	(1,889	)	$	1,278

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended September 30:

(Dollars in Millions)	Beginning of Period Balance		Net Gains (Losses) Included in Net Income			Net Gains (Losses) Included in Other Comprehensive Income (Loss)			Purchases		Sales			Principal Payments			Issuances			Settlements			End of Period Balance		Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period
2012
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	713	$	(4	)	$	23		$	–	$	(61	)	$	(40	)	$	–		$	–		$	631	$	26
Non-prime (b)		796		(8	)		132			–		(562	)		(18	)		–			–			340		23
Commercial non-agency		37		–			2			–		(39	)		–			–			–			–		–
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		102		2			(7	)		–		(96	)		(1	)		–			–			–		–
Other		112		1			(4	)		3		(93	)		(3	)		–			–			16		2
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		1,769		(9	)(c)		146	(f)		3		(851	)		(62	)		–			–			996		51
Mortgage servicing rights		1,594		(275	)(d)		–			10		–			–			224	(g)		–			1,553		(275	)(d)
Net derivative assets and liabilities		1,360		843	(e)		–			1		(1	)		–			–			(713	)		1,490		(557	)(h)
2011
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	896	$	1		$	(2	)	$	–	$	–		$	(36	)	$	–		$	–		$	859	$	(2	)
Non-prime (b)		895		(2	)		(5	)		–		–			(31	)		–			–			857		(5	)
Commercial non-agency		50		1			(1	)		–		(4	)		(1	)		–			–			45		–
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		133		3			(2	)		–		–			(9	)		–			–			125		(2	)
Other		129		1			(4	)		–		–			(6	)		–			–			120		(4	)
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		2,112		4	(i)		(14	)(f)		–		(4	)		(83	)		–			–			2,015		(13	)
Mortgage servicing rights		1,989		(629	)(d)		–			5		–			–			101	(g)		–			1,466		(629	)(d)
Net derivative assets and liabilities		836		836	(j)		–			–		(2	)		–			–			(340	)		1,330		77	(k)

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

(c) Approximately $(15) million included in securities gains (losses) and $6 million included in interest income.

(d) Included in mortgage banking revenue.

(e) Approximately $124 million included in other noninterest income and $719 million included in mortgage banking revenue.

(f) Included in changes in unrealized gains and losses on securities available-for-sale.

(g) Represents MSRs capitalized during the period.

(h) Approximately $7 million included in other noninterest income and $(564) million included in mortgage banking revenue.

(i) Approximately $(9) million included in other securities gains (losses) and $13 million included in interest income.

(j) Approximately $445 million included in other noninterest income and $391 million included in mortgage banking revenue.

(k) Approximately $317 million included in other noninterest income and $(240) million included in mortgage banking revenue.

The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30:

(Dollars in Millions)	Beginning of Period Balance		Net Gains (Losses) Included in Net Income			Net Gains (Losses) Included in Other Comprehensive Income (Loss)			Purchases		Sales			Principal Payments			Issuances			Settlements			End of Period Balance		Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period
2012
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	803	$	(5	)	$	60		$	–	$	(109	)	$	(118	)	$	–		$	–		$	631	$	58
Non-prime (b)		802		(18	)		197			–		(562	)		(79	)		–			–			340		52
Commercial non-agency		42		1			–			–		(39	)		(4	)		–			–			–		–
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		120		12			(8	)		–		(103	)		(21	)		–			–			–		–
Other		117		7			–			3		(93	)		(18	)		–			–			16		2
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		1,893		(3	)(c)		249	(f)		3		(906	)		(240	)		–			–			996		112
Mortgage servicing rights		1,519		(705	)(d)		–			39		–			–			700	(g)		–			1,553		(705	)(d)
Net derivative assets and liabilities		1,228		2,050	(e)		–			1		(3)			–			–			(1,786	)		1,490		(1,407	)(h)
2011
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	1,103	$	4		$	22		$	–	$	(115	)	$	(155	)	$	–		$	–		$	859	$	14
Non-prime (b)		947		(4	)		27			–		(12	)		(101	)		–			–			857		26
Commercial non-agency		50		2			(1	)		–		(4	)		(2	)		–			–			45		–
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		135		10			6			–		–			(26	)		–			–			125		7
Other		133		8			(2	)		–		–			(19	)		–			–			120		(2	)
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		2,377		20	(i)		52	(f)		–		(131	)		(303	)		–			–			2,015		45
Mortgage servicing rights		1,837		(803	)(d)		–			16		–			–			416	(g)		–			1,466		(803	)(d)
Net derivative assets and liabilities		851		1,252	(j)		–			–		(5	)		–			–			(768	)		1,330		(92	)(k)

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

(c) Approximately $(37) million included in securities gains (losses) and $34 million included in interest income.

(d) Included in mortgage banking revenue.

(e) Approximately $344 million included in other noninterest income and $1.7 billion included in mortgage banking revenue.

(f) Included in changes in unrealized gains and losses on securities available-for-sale.

(g) Represents MSRs capitalized during the period.

(h) Approximately $6 million included in other noninterest income and $1.4 billion included in mortgage banking revenue.

(i) Approximately $(24) million included in securities gains (losses) and $44 million included in interest income.

(j) Approximately $672 million included in other noninterest income and $580 million included in mortgage banking revenue.

(k) Approximately $303 million included in other noninterest income and $(395) million included in mortgage banking revenue.

The Company is also required periodically to measure certain other financial assets at fair value on a nonrecurring basis. These measurements of fair value usually result from the application of lower-of-cost-or-fair value accounting or write-downs of individual assets.

The following table summarizes the adjusted carrying values and the level of valuation assumptions for assets measured at fair value on a nonrecurring basis:

	September 30, 2012								December 31, 2011
(Dollars in Millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Loans (a)	$	–	$	–	$	138	$	138	$	–	$	–	$	168	$	168
Other assets (b)		–		–		204		204		–		–		310		310

(a) Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off.

(b) Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition.

The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or portfolios:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in Millions)	2012		2011		2012		2011
Loans (a)	$	12	$	32	$	51	$	153
Other assets (b)		42		81		129		230

(a) Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off.

(b) Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.

Fair Value Option

The following table summarizes the differences between the aggregate fair value carrying amount of MLHFS for which the fair value option has been elected and the aggregate unpaid principal amount that the Company is contractually obligated to receive at maturity:

	September 30, 2012							December 31, 2011
(Dollars in Millions)	Fair Value Carrying Amount		Aggregate Unpaid Principal		Carrying Amount Over (Under) Unpaid Principal			Fair Value Carrying Amount		Aggregate Unpaid Principal		Carrying Amount Over (Under) Unpaid Principal
Total loans	$	9,815	$	9,215	$	600		$	6,925	$	6,635	$	290
Nonaccrual loans		8		13		(5	)		10		15		(5	)
Loans 90 days or more past due		2		3		(1	)		3		4		(1	)

Disclosures about Fair Value of Financial Instruments

The following table summarizes the estimated fair value for financial instruments as of September 30, 2012 and December 31, 2011, and includes financial instruments that are not accounted for at fair value. In accordance with disclosure guidance related to fair values of financial instruments, the Company did not include assets and liabilities that are not financial instruments, such as the value of goodwill, long-term relationships with deposit, credit card, merchant processing and trust customers, other purchased intangibles, premises and equipment, deferred taxes and other liabilities. Additionally, in accordance with the disclosure guidance, insurance contracts and investments accounted for under the equity method are excluded.

The estimated fair values of the Company’s financial instruments are shown in the table below:

	September 30, 2012										December 31, 2011
	Carrying Amount		Fair Value								Carrying Amount		Fair Value
(Dollars in Millions)			Level 1		Level 2		Level 3		Total
Financial Assets
Cash and due from banks	$	9,382	$	9,382	$	–	$	–	$	9,382	$	13,962	$	13,962
Federal funds sold and securities purchased under resale agreements		166		–		166		–		166		64		64
Investment securities held-to-maturity		34,509		2,441		32,719		66		35,226		18,877		19,216
Mortgages held for sale (a)		–		–		–		–		–		3		3
Other loans held for sale		64		–		–		64		64		228		228
Loans		213,669		–		–		216,105		216,105		205,082		206,646
Other financial instruments		6,991		–		1,246		5,771		7,017		6,095		6,140
Financial Liabilities
Deposits		244,232		–		244,690		–		244,690		230,885		231,184
Short-term borrowings		27,853		–		27,885		–		27,885		30,468		30,448
Long-term debt		26,264		–		27,264		–		27,264		31,953		32,664

(a) Balance excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected.

The fair value of unfunded commitments, standby letters of credit and other guarantees is approximately equal to their carrying value. The carrying value of unfunded commitments and standby letters of credit was $393 million and $381 million at September 30, 2012 and December 31, 2011, respectively. The carrying value of other guarantees was $423 million and $359 million at September 30, 2012 and December 31, 2011, respectively.

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Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012		Jun. 30, 2012	Dec. 31, 2011		Sep. 30, 2011	Jun. 30, 2011	Dec. 31, 2010
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights	$ 1,553		$ 1,594	$ 1,519		$ 1,466	$ 1,989	$ 1,837
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	39,636			51,937
Mortgage loans held for sale	9,815			6,925
Mortgage servicing rights	1,553			1,519
Derivative assets	1,822			1,619
Other assets	733			613
Total	53,559			62,613
Derivative liabilities	953			665
Other liabilities	592			613
Total	1,545			1,278
Fair Value, Measurements, Recurring | U.S. Treasury and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	743			1,057
Fair Value, Measurements, Recurring | Commercial Mortgage-backed Agency Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	202			140	[1]
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	6,457			6,539
Fair Value, Measurements, Recurring | Obligations of foreign governments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	6			6
Fair Value, Measurements, Recurring | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	709			827
Fair Value, Measurements, Recurring | Perpetual preferred securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	278			318
Fair Value, Measurements, Recurring | Other investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	268			202
Fair Value, Measurements, Recurring | Residential | Residential Agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	29,362			40,314
Fair Value, Measurements, Recurring | Residential | Residential non-agency prime
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	631	[2]		803
Fair Value, Measurements, Recurring | Residential | Residential non-agency non-prime
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	340	[1]		802	[2]
Fair Value, Measurements, Recurring | Asset-Backed Securities | Collateralized Loan Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	42			206
Fair Value, Measurements, Recurring | Asset-Backed Securities | Asset Backed Securities Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	598			681
Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | Non-agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities				42
Level 1 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	760			755
Other assets	179			146
Total	939			901
Other liabilities	39			75
Total	39			75
Level 1 | Fair Value, Measurements, Recurring | U.S. Treasury and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	504			562
Level 1 | Fair Value, Measurements, Recurring | Other investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	256			193
Level 2 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	37,880			49,289
Mortgage loans held for sale	9,815			6,925
Derivative assets	637			632
Other assets	554			467
Total	48,886			57,313
Derivative liabilities	2,591			2,501
Other liabilities	553			538
Total	3,144			3,039
Level 2 | Fair Value, Measurements, Recurring | U.S. Treasury and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	239			495
Level 2 | Fair Value, Measurements, Recurring | Commercial Mortgage-backed Agency Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	202			140	[1]
Level 2 | Fair Value, Measurements, Recurring | Obligations of state and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	6,457			6,539
Level 2 | Fair Value, Measurements, Recurring | Obligations of foreign governments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	6			6
Level 2 | Fair Value, Measurements, Recurring | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	700			818
Level 2 | Fair Value, Measurements, Recurring | Perpetual preferred securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	278			318
Level 2 | Fair Value, Measurements, Recurring | Other investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	12			9
Level 2 | Fair Value, Measurements, Recurring | Residential | Residential Agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	29,362			40,314
Level 2 | Fair Value, Measurements, Recurring | Asset-Backed Securities | Collateralized Loan Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	42			86
Level 2 | Fair Value, Measurements, Recurring | Asset-Backed Securities | Asset Backed Securities Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	582			564
Level 3 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	996			1,893
Mortgage servicing rights	1,553			1,519
Derivative assets	1,539			1,281
Total	4,088			4,693
Derivative liabilities	49			53
Total	49			53
Level 3 | Fair Value, Measurements, Recurring | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	9			9
Level 3 | Fair Value, Measurements, Recurring | Residential | Residential non-agency prime
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	631	[2]		803
Level 3 | Fair Value, Measurements, Recurring | Residential | Residential non-agency non-prime
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	340	[1]		802	[2]
Level 3 | Fair Value, Measurements, Recurring | Asset-Backed Securities | Collateralized Loan Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities				120
Level 3 | Fair Value, Measurements, Recurring | Asset-Backed Securities | Asset Backed Securities Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	16			117
Level 3 | Fair Value, Measurements, Recurring | Commercial Mortgage-Backed Securities | Non-agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities				42
Netting | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	(354)			(294)
Total	(354)			(294)
Derivative liabilities	(1,687)			(1,889)
Total	$ (1,687)			$ (1,889)

[1] Includes all securities not meeting the conditions to be designated as prime.

[2] Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

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Consolidated Statement of Income (Unaudited) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Interest Income
Loans	$ 2,650	$ 2,621	$ 7,919	$ 7,736
Loans held for sale	76	42	208	139
Investment securities	438	470	1,376	1,357
Other interest income	63	67	184	187
Total interest income	3,227	3,200	9,687	9,419
Interest Expense
Deposits	172	202	530	646
Short-term borrowings	103	143	353	407
Long-term debt	226	289	786	860
Total interest expense	501	634	1,669	1,913
Net interest income	2,726	2,566	8,018	7,506
Provision for credit losses	488	519	1,439	1,846
Net interest income after provision for credit losses	2,238	2,047	6,579	5,660
Noninterest Income
Credit and debit card revenue	213	289	650	842
Corporate payment products revenue	201	203	566	563
Merchant processing services	345	338	1,041	977
ATM processing services	87	115	263	341
Trust and investment management fees	265	241	779	755
Deposit service charges	174	183	483	488
Treasury management fees	135	137	411	418
Commercial products revenue	225	212	652	621
Mortgage banking revenue	519	245	1,461	683
Investment products fees and commissions	38	31	111	98
Securities gains (losses), net
Realized gains (losses), net	16		46	2
Total other-than-temporary impairment	(13)	(11)	(61)	(41)
Portion of other-than-temporary impairment recognized in other comprehensive income	(2)	2	(3)	17
Total securities gains (losses), net	1	(9)	(18)	(22)
Other	193	186	591	565
Total noninterest income	2,396	2,171	6,990	6,329
Noninterest Expense
Compensation	1,109	1,021	3,237	2,984
Employee benefits	225	203	714	643
Net occupancy and equipment	233	252	683	750
Professional services	144	100	364	252
Marketing and business development	96	102	285	257
Technology and communications	205	189	607	563
Postage, printing and supplies	75	76	226	226
Other intangibles	67	75	208	225
Other	455	458	1,446	1,315
Total noninterest expense	2,609	2,476	7,770	7,215
Income before income taxes	2,025	1,742	5,799	4,774
Applicable income taxes	593	490	1,684	1,314
Net income	1,432	1,252	4,115	3,460
Net (income) loss attributable to noncontrolling interests	42	21	112	62
Net income attributable to U.S. Bancorp	1,474	1,273	4,227	3,522
Net income applicable to U.S. Bancorp common shareholders	$ 1,404	$ 1,237	$ 4,034	$ 3,407
Earnings per common share	$ 0.74	$ 0.65	$ 2.13	$ 1.78
Diluted earnings per common share	$ 0.74	$ 0.64	$ 2.12	$ 1.77
Dividends declared per common share	$ 0.195	$ 0.125	$ 0.585	$ 0.375
Average common shares outstanding	1,886	1,915	1,892	1,918
Average diluted common shares outstanding	1,897	1,922	1,901	1,926

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Mortgage Servicing Rights

9 Months Ended

Sep. 30, 2012

Mortgage Servicing Rights

Note 5 Mortgage Servicing Rights

The Company serviced $211.3 billion of residential mortgage loans for others at September 30, 2012, and $191.1 billion at December 31, 2011. The net impact included in mortgage banking revenue of fair value changes of MSRs and derivatives used to economically hedge MSRs were net gains of $10 million and $7 million for the three months ended September 30, 2012 and 2011, respectively, and net gains of $72 million and $151 million for the nine months ended September 30, 2012 and 2011, respectively. Loan servicing fees, not including valuation changes, included in mortgage banking revenue, were $181 million and $166 million for the three months ended September 30, 2012 and 2011, respectively, and $526 million and $483 million for the nine months ended September 30, 2012 and 2011, respectively.

Changes in fair value of capitalized MSRs are summarized as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	1,594		$	1,989		$	1,519		$	1,837
Rights purchased		10			5			39			16
Rights capitalized		224			101			700			416
Changes in fair value of MSRs
Due to fluctuations in market interest rates (a)		(123	)		(534	)		(298	)		(569	)
Due to revised assumptions or models (b)		(2	)		2			(19	)		27
Other changes in fair value (c)		(150	)		(97	)		(388	)		(261	)
Balance at end of period	$	1,553		$	1,466		$	1,553		$	1,466

(a) Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits.

(b) Includes changes in MSR value not caused by changes in market interest rates, such as changes in cost to service, ancillary income, and discount rate, as well as the impact of any model changes.

(c) Primarily represents changes due to realization of expected cash flows over time (decay).

The estimated sensitivity to changes in interest rates of the fair value of the MSRs portfolio and the related derivative instruments was as follows:

	September 30, 2012																		December 31, 2011
(Dollars in Millions)	Down 100 bps			Down 50 bps			Down 25 bps			Up 25 bps			Up 50 bps			Up 100 bps			Down 100 bps			Down 50 bps			Down 25 bps			Up 25 bps			Up 50 bps			Up 100 bps
MSR portfolio	$	(262	)	$	(162	)	$	(94	)	$	109		$	231		$	483		$	(305	)	$	(183	)	$	(98	)	$	107		$	223		$	460
Derivative instrument hedges		405			208			105			(105	)		(210	)		(422	)		378			204			104			(107	)		(217	)		(445	)
Net sensitivity	$	143		$	46		$	11		$	4		$	21		$	61		$	73		$	21		$	6		$	—		$	6		$	15

The fair value of MSRs and their sensitivity to changes in interest rates is influenced by the mix of the servicing portfolio and characteristics of each segment of the portfolio. The Company’s servicing portfolio consists of the distinct portfolios of government-insured mortgages, conventional mortgages and Mortgage Revenue Bond Programs (“MRBP”). The servicing portfolios are predominantly comprised of fixed-rate agency loans with limited adjustable-rate or jumbo mortgage loans. The MRBP division specializes in servicing loans made under state and local housing authority programs. These programs provide mortgages to low-income and moderate-income borrowers and are generally government-insured programs with a favorable rate subsidy, down payment and/or closing cost assistance.

A summary of the Company’s MSRs and related characteristics by portfolio was as follows:

	September 30, 2012												December 31, 2011
(Dollars in Millions)	MRBP			Government			Conventional (b)			Total			MRBP			Government			Conventional (b)			Total
Servicing portfolio	$	13,939		$	38,162		$	159,162		$	211,263		$	13,357		$	32,567		$	145,158		$	191,082
Fair market value	$	154		$	304		$	1,095		$	1,553		$	155		$	290		$	1,074		$	1,519
Value (bps) (a)		110			80			69			74			116			89			74			79
Weighted-average servicing fees (bps)		40			34			30			31			40			36			29			31
Multiple (value/servicing fees)		2.75			2.35			2.30			2.39			2.90			2.47			2.55			2.55
Weighted-average note rate		5.24	%		4.69	%		4.63	%		4.68	%		5.50	%		5.08	%		4.97	%		5.03	%
Weighted-average age (in years)		4.2			2.4			2.5			2.6			4.2			2.5			2.8			2.8
Weighted-average expected prepayment (constant prepayment rate)		13.1	%		21.6	%		23.1	%		22.2	%		12.9	%		21.1	%		22.1	%		21.3	%
Weighted-average expected life (in years)		6.2			4.0			3.5			3.8			6.4			4.0			3.8			4.0
Weighted-average discount rate		12.1	%		11.4	%		10.0	%		10.4	%		12.1	%		11.3	%		10.0	%		10.4	%

(a) Value is calculated as fair market value divided by the servicing portfolio.

(b) Represents loans sold primarily to GSEs.

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Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities

9 Months Ended

Sep. 30, 2012

Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities

Note 4 Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities

The Company sells financial assets in the normal course of business. The majority of the Company’s financial asset sales are residential mortgage loan sales primarily to government-sponsored enterprises (“GSEs”) through established programs, the sale or syndication of tax-advantaged investments, commercial loan sales through participation agreements, and other individual or portfolio loan and securities sales. In accordance with the accounting guidance for asset transfers, the Company considers any ongoing involvement with transferred assets in determining whether the assets can be derecognized from the balance sheet. For loans sold under participation agreements, the Company also considers the terms of the loan participation agreement and whether they meet the definition of a participating interest and thus qualify for derecognition. With the exception of servicing and certain performance-based guarantees, the Company’s continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses. The guarantees provided to certain third-parties in connection with the sale or syndication of certain assets, primarily loan portfolios and tax-advantaged investments, are further discussed in Note 12. When the Company sells financial assets, it may retain servicing rights and/or other interests in the transferred financial assets. The gain or loss on sale depends on the previous carrying amount of the transferred financial assets and the consideration received and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests that continue to be held by the Company are initially recognized at fair value. For further information on mortgage servicing rights (“MSRs”), refer to Note 5. On a limited basis, the Company may acquire and package high-grade corporate bonds for select corporate customers, in which the Company generally has no continuing involvement with these transactions. Additionally, the Company is an authorized Government National Mortgage Association (“GNMA”) issuer and issues GNMA securities on a regular basis. The Company has no other asset securitizations or similar asset-backed financing arrangements that are off-balance sheet.

The Company is involved in various entities that are considered to be variable interest entities (“VIEs”). The Company’s investments in VIEs primarily represent private investment funds or partnerships that make equity investments, provide debt financing or support community-based investments that may enable the Company to ensure regulatory compliance with the Community Reinvestment Act. In addition, the Company sponsors entities to which it transfers tax-advantaged investments. The Company’s investments in these entities are designed to generate a return primarily through the realization of federal and state income tax credits over specified time periods. The Company realized federal and state income tax credits related to these investments of $227 million and $191 million for the three months ended September 30, 2012 and 2011, respectively, and $581 million and $510 million for the nine months ended September 30, 2012 and 2011, respectively. The Company amortizes its investments in these entities as the tax credits are realized. Amortization expense is recorded in tax expense for investments meeting certain characteristics, and in other noninterest expense for other investments. Amortization expense recorded in tax expense was $123 million and $60 million, and in other noninterest expense was $140 million and $144 million for the three months ended September 30, 2012 and 2011, respectively. Amortization expense recorded in tax expense was $316 million and $175 million, and in other noninterest expense was $361 million and $386 million for the nine months ended September 30, 2012 and 2011, respectively.

At September 30, 2012, approximately $6.7 billion of the Company’s assets and $4.8 billion of its liabilities included on the consolidated balance sheet were related to community development and tax-advantaged investment VIEs which the Company has consolidated, compared with $5.6 billion and $4.0 billion, respectively, at December 31, 2011. The majority of the assets of these consolidated VIEs are reported in other assets, and the liabilities are reported in long-term debt. The assets of a particular VIE are the primary source of funds to settle its obligations. The creditors of the VIEs do not have recourse to the general credit of the Company. The Company’s exposure to the consolidated VIEs is generally limited to the carrying value of its variable interests plus any related tax credits previously recognized or sold to others.

In addition, the Company sponsors a conduit to which it previously transferred high-grade investment securities. The Company consolidates the conduit because of its ability to manage the activities of the conduit. At September 30, 2012, $151 million of the held-to-maturity investment securities on the Company’s consolidated balance sheet related to the conduit, compared with $202 million at December 31, 2011.

The Company also sponsors a municipal bond securities tender option bond program. The Company controls the activities of the program’s entities, is entitled to the residual returns and provides credit, liquidity and remarketing arrangements to the program. As a result, the Company has consolidated the program’s entities. At September 30, 2012, $5.3 billion of available-for-sale securities and $5.0 billion of short-term borrowings on the consolidated balance sheet were related to the tender option bond program, compared with $5.4 billion of available-for-sale securities and $5.3 billion of short-term borrowings at December 31, 2011.

The Company is not required to consolidate VIEs in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary. In such cases, the Company does not have both the power to direct the entities’ most significant activities and the obligation to absorb losses or right to receive benefits that could potentially be significant to the VIEs. The Company’s investments in these unconsolidated VIEs generally are carried in other assets on the consolidated balance sheet. The Company’s investments in unconsolidated VIEs at September 30, 2012, ranged from less than $1 million to $44 million, with an aggregate amount of approximately $1.7 billion, net of $1.1 billion of liabilities recorded primarily for unfunded capital commitments of the Company to specific project sponsors. The Company’s investments in unconsolidated VIEs at December 31, 2011, ranged from less than $1 million to $37 million, with an aggregate amount of $1.8 billion, net of liabilities of $965 million for unfunded capital commitments. While the Company believes potential losses from these investments are remote, the Company’s maximum exposure to loss from these unconsolidated VIEs was approximately $5.0 billion at September 30, 2012, compared with $4.8 billion at December 31, 2011. The maximum exposure to loss was primarily related to community development tax-advantaged investments and included $1.7 billion at September 30, 2012, and $1.8 billion at December 31, 2011, recorded on the Company’s consolidated balance sheet and $3.2 billion at September 30, 2012, and $3.0 billion at December 31, 2011, of previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. The remaining amounts related to investments in private investment funds and partnerships for which the maximum exposure to loss included amounts recorded on the consolidated balance sheet and any unfunded commitments. The maximum exposure was determined by assuming a scenario where the separate investments within the individual private funds were to become worthless, and the community-based business and housing projects and related tax credits completely failed and did not meet certain government compliance requirements.

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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2012

Investment Securities

Table 4 Investment Securities

	Available-for-Sale									Held-to-Maturity
At September 30, 2012 (Dollars in Millions)	Amortized Cost		Fair Value		Weighted- Average Maturity in Years		Weighted- Average Yield (e)			Amortized Cost		Fair Value		Weighted- Average Maturity in Years		Weighted- Average Yield (e)
U.S. Treasury and Agencies
Maturing in one year or less	$	72	$	73		.5		2.57	%	$	50	$	50		.3		.61	%
Maturing after one year through five years		497		501		1.3		.84			2,447		2,473		1.4		1.00
Maturing after five years through ten years		149		158		7.5		3.11			–		–		–		–
Maturing after ten years		10		11		10.9		2.89			60		60		12.4		1.96
Total	$	728	$	743		2.6		1.51	%	$	2,557	$	2,583		1.7		1.01	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	3,312	$	3,315		.6		1.58	%	$	395	$	396		.7		1.52	%
Maturing after one year through five years		23,074		23,876		3.0		2.46			30,583		31,260		3.1		2.17
Maturing after five years through ten years		3,074		3,045		6.4		2.26			740		758		7.4		1.50
Maturing after ten years		294		299		12.5		1.49			59		60		10.4		1.22
Total	$	29,754	$	30,535		3.2		2.34	%	$	31,777	$	32,474		3.2		2.14	%
Asset-Backed Securities (a)
Maturing in one year or less	$	8	$	9		–		.24	%	$	–	$	4		.5		1.22	%
Maturing after one year through five years		36		46		3.2		6.36			11		9		3.5		.65
Maturing after five years through ten years		574		585		7.6		2.48			8		9		6.6		.73
Maturing after ten years		–		–		18.8		5.88			9		18		22.6		.86
Total	$	618	$	640		7.3		2.68	%	$	28	$	40		10.5		.75	%
Obligations of State and Political Subdivisions (b) (c)
Maturing in one year or less	$	81	$	82		.1		2.65	%	$	–	$	–		.7		8.16	%
Maturing after one year through five years		5,226		5,550		3.8		6.79			6		6		3.2		7.31
Maturing after five years through ten years		765		812		7.1		6.20			1		2		7.9		7.79
Maturing after ten years		13		13		17.2		15.83			14		14		14.6		5.42
Total	$	6,085	$	6,457		4.2		6.68	%	$	21	$	22		10.9		6.13	%
Other Debt Securities
Maturing in one year or less	$	6	$	6		.2		1.00	%	$	3	$	2		.5		1.14	%
Maturing after one year through five years		–		–		–		–			94		91		3.5		1.30
Maturing after five years through ten years		–		–		–		–			29		14		8.1		1.18
Maturing after ten years		813		709		25.3		3.21			–		–		–		–
Total	$	819	$	715		25.1		3.19	%	$	126	$	107		4.4		1.27	%
Other Investments	$	516	$	546		15.8		2.97	%	$	–	$	–		–		–	%
Total investment securities (d)	$	38,520	$	39,636		4.0		3.04	%	$	34,509	$	35,226		3.1		2.06	%

(a) Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities anticipating future prepayments.

(b) Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, yield to maturity if purchased at par or a discount.

(c) Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and contractual maturity for securities with a fair value equal to or below par.

(d) The weighted-average maturity of the available-for-sale investment securities was 5.2 years at December 31, 2011, with a corresponding weighted-average yield of 3.19 percent. The weighted-average maturity of the held-to-maturity investment securities was 3.9 years at December 31, 2011, with a corresponding weighted-average yield of 2.21 percent.

(e) Average yields are presented on a fully-taxable equivalent basis under a tax rate of 35 percent. Yields on available-for-sale and held-to-maturity investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity. Average yield and maturity calculations exclude equity securities that have no stated yield or maturity.

	September 30, 2012					December 31, 2011
(Dollars in Millions)	Amortized Cost		Percent of Total			Amortized Cost		Percent of Total
U.S. Treasury and agencies	$	3,285		4.5	%	$	3,605		5.1	%
Mortgage-backed securities		61,531		84.2			57,561		82.0
Asset-backed securities		646		.9			949		1.4
Obligations of state and political subdivisions		6,106		8.4			6,417		9.1
Other debt securities and investments		1,461		2.0			1,701		2.4
Total investment securities	$	73,029		100.0	%	$	70,233		100.0	%

Investment Securities Held to Maturity and Available for Sale

The amortized cost, other-than-temporary impairment recorded in other comprehensive income (loss), gross unrealized holding gains and losses, and fair value of held-to-maturity and available-for-sale investment securities were as follows:

	September 30, 2012												December 31, 2011
					Unrealized Losses												Unrealized Losses
(Dollars in Millions)	Amortized Cost		Unrealized Gains		Other-than- Temporary (e)			Other (f)			Fair Value		Amortized Cost		Unrealized Gains		Other-than- Temporary (e)			Other (f)			Fair Value
Held-to-maturity (a)
U.S. Treasury and agencies	$	2,557	$	26	$	–		$	–		$	2,583	$	2,560	$	35	$	–		$	–		$	2,595
Mortgage-backed securities
Residential
Agency		31,773		700		–			(3	)		32,470		16,085		333		–			(3	)		16,415
Non-agency non-prime (d)		1		–		–			–			1		2		–		–			–			2
Commercial non-agency		3		–		–			–			3		4		–		–			(2	)		2
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		9		16		–			–			25		52		13		–			(2	)		63
Other		19		2		(4	)		(2	)		15		23		1		(6	)		(1	)		17
Obligations of state and political subdivisions		21		1		–			–			22		23		1		–			(1	)		23
Obligations of foreign governments		7		–		–			–			7		7		–		–			–			7
Other debt securities		119		–		–			(19	)		100		121		–		–			(29	)		92
Total held-to-maturity	$	34,509	$	745	$	(4	)	$	(24	)	$	35,226	$	18,877	$	383	$	(6	)	$	(38	)	$	19,216
Available-for-sale (b)
U.S. Treasury and agencies	$	728	$	15	$	–		$	–		$	743	$	1,045	$	13	$	–		$	(1	)	$	1,057
Mortgage-backed securities
Residential
Agency		28,494		874		–			(6	)		29,362		39,337		981		–			(4	)		40,314
Non-agency
Prime (c)		679		–		(38	)		(10	)		631		911		5		(63	)		(50	)		803
Non-prime (d)		388		1		(48	)		(1	)		340		1,047		9		(247	)		(7	)		802
Commercial
Agency		193		9		–			–			202		133		7		–			–			140
Non-agency		–		–		–			–			–		42		2		–			(2	)		42
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		33		9		–			–			42		180		31		(3	)		(2	)		206
Other		585		14		–			(1	)		598		694		16		(5	)		(24	)		681
Obligations of state and political subdivisions		6,085		372		–			–			6,457		6,394		167		–			(22	)		6,539
Obligations of foreign governments		6		–		–			–			6		6		–		–			–			6
Corporate debt securities		813		2		–			(106	)		709		1,000		1		–			(174	)		827
Perpetual preferred securities		268		29		–			(19	)		278		379		25		–			(86	)		318
Other investments		248		20		–			–			268		188		15		–			(1	)		202
Total available-for-sale	$	38,520	$	1,345	$	(86	)	$	(143	)	$	39,636	$	51,356	$	1,272	$	(318	)	$	(373	)	$	51,937

(a) Held-to-maturity investment securities are carried at historical cost or at fair value at the time of transfer from the available-for-sale to held-to-maturity category, adjusted for amortization of premiums and accretion of discounts and credit-related other-than-temporary impairment.

(b) Available-for-sale investment securities are carried at fair value with unrealized net gains or losses reported within accumulated other comprehensive income (loss) in shareholders’ equity.

(c) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads). When the Company determines the designation, prime securities typically have a weighted average credit score of 725 or higher and a loan-to-value of 80 percent or lower; however, other pool characteristics may result in designations that deviate from these credit score and loan-to-value thresholds.

(d) Includes all securities not meeting the conditions to be designated as prime.

(e) Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired.

(f) Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired.

Amount of Interest Income from Taxable and Non-Taxable Investment Securities

The following table provides information about the amount of interest income from taxable and non-taxable investment securities:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in Millions)	2012		2011		2012		2011
Taxable	$	369	$	394	$	1,166	$	1,127
Non-taxable		69		76		210		230
Total interest income from investment securities	$	438	$	470	$	1,376	$	1,357

Amount of Gross Gains and Losses Realized through Sales of Available for Sale Investment Securities

The following table provides information about the amount of gross gains and losses realized through the sales of available-for-sale investment securities:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Realized gains	$	115		$	4		$	145		$	6
Realized losses		(99	)		(4	)		(99	)		(4	)
Net realized gains (losses)	$	16		$	–		$	46		$	2
Income tax (benefit) on net realized gains (losses)	$	7		$	–		$	18		$	1

Accretable Balance of Structured Investment Securities and Other Investment Securities

Changes in the accretable balance for these investment securities were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	93		$	117		$	100		$	139
Accretion		(3	)		(4	)		(11	)		(13	)
Disposals		(90	)		–			(90	)		–
Other (a)		–			(6	)		1			(19	)
Balance at end of period	$	–		$	107		$	–		$	107

(a) Primarily represents changes in projected future cash flows related to variable rates on certain investment securities.

Summary of Other than Temporary Impairment by Investment Category

The following tables summarize other-than-temporary impairment by investment category:

	2012										2011
Three Months Ended September 30 (Dollars in Millions)		Losses Recorded in Earnings			Other Gains (Losses) (c)			Total			Losses Recorded in Earnings			Other Gains (Losses) (c)			Total
Available-for-sale
Mortgage-backed securities
Non-agency residential
Prime (a)		$	(5	)	$	(3	)	$	(8	)	$	–		$	–		$	–
Non-prime (b)			(10	)		5			(5	)		(6	)		(4	)		(10	)
Other asset-backed securities			–			–			–			(3	)		2			(1	)
Total available-for-sale		$	(15	)	$	2		$	(13	)	$	(9	)	$	(2	)	$	(11	)

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

(c) Losses represent the non-credit portion of other-than-temporary impairment recorded in other comprehensive income for investment securities determined to be other-than-temporarily impaired during the period. Gains represent recoveries in the fair value of securities that have or previously had non-credit other-than-temporary impairment.

	2012									2011
Nine Months Ended September 30 (Dollars in Millions)	Losses Recorded in Earnings			Other Gains (Losses) (c)			Total			Losses Recorded in Earnings			Other Gains (Losses) (c)			Total
Available-for-sale
Mortgage-backed securities
Non-agency residential
Prime (a)	$	(8	)	$	(12	)	$	(20	)	$	(2	)	$	(3	)	$	(5	)
Non-prime (b)		(27	)		15			(12	)		(18	)		(16	)		(34	)
Commercial non-agency		(1	)		(1	)		(2	)		–			–			–
Other asset-backed securities		(1	)		1			–			(4	)		2			(2	)
Perpetual preferred securities		(27	)		–			(27	)		–			–			–
Total available-for-sale	$	(64	)	$	3		$	(61	)	$	(24	)	$	(17	)	$	(41	)

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

(c) Losses represent the non-credit portion of other-than-temporary impairment recorded in other comprehensive income for investment securities determined to be other-than-temporarily impaired during the period. Gains represent recoveries in the fair value of securities that have or previously had non-credit other-than-temporary impairment.

Summary of Ranges used in Valuation of Non-Agency Mortgage-Backed Securities Other than Temporarily Impaired

The following table includes the ranges for principal assumptions used for those available-for-sale non-agency mortgage-backed securities determined to be other-than-temporarily impaired:

	Prime (a)									Non-Prime (b)
	Minimum			Maximum			Average			Minimum			Maximum			Average
September 30, 2012
Estimated lifetime prepayment rates		7	%		18	%		14	%		3	%		10	%		6	%
Lifetime probability of default rates		2			4			3			2			10			6
Lifetime loss severity rates		25			50			40			20			60			51
December 31, 2011
Estimated lifetime prepayment rates		4	%		15	%		14	%		2	%		11	%		6	%
Lifetime probability of default rates		2			9			3			1			20			5
Lifetime loss severity rates		40			50			46			8			70			52

(a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(b) Includes all securities not meeting the conditions to be designated as prime.

Changes in Credit Losses on Debt Securities Excluding Perpetual Preferred Securities

Changes in the credit losses on debt securities (excludes perpetual preferred securities) are summarized as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	277		$	319		$	298		$	358
Additions to credit losses due to other-than-temporary impairments
Credit losses on securities not previously considered other-than-temporarily impaired		2			1			5			3
Decreases in expected cash flows on securities for which other-than-temporary impairment was previously recognized		13			8			32			21
Total other-than-temporary impairment on debt securities		15			9			37			24
Other changes in credit losses
Increases in expected cash flows		–			(3	)		(14	)		(20	)
Realized losses (a)		(4	)		(19	)		(33	)		(55	)
Credit losses on security sales and securities expected to be sold		(142	)		–			(142	)		(1	)
Balance at end of period	$	146		$	306		$	146		$	306

(a) Primarily represents principal losses allocated to mortgage and asset-backed securities in the Company’s portfolio under the terms of the securitization transaction documents.

Gross Unrealized Losses and Fair Value of Company's Investments with Unrealized Losses

The following table shows the gross unrealized losses and fair value of the Company’s investment securities with unrealized losses, aggregated by investment category and length of time the individual investment securities have been in continuous unrealized loss positions, at September 30, 2012:

	Less Than 12 Months					12 Months or Greater					Total
(Dollars in Millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Held-to-maturity
Mortgage-backed securities
Residential
Agency	$	1,563	$	(3	)	$	7	$	–		$	1,570	$	(3	)
Non-agency non-prime (a)(c)		–		–			1		–			1		–
Commercial non-agency		–		–			3		–			3		–
Other asset-backed securities		1		–			11		(6	)		12		(6	)
Obligations of state and political subdivisions		–		–			5		–			5		–
Other debt securities		–		–			99		(19	)		99		(19	)
Total held-to-maturity	$	1,564	$	(3	)	$	126	$	(25	)	$	1,690	$	(28	)
Available-for-sale
U.S. Treasury and agencies	$	10	$	–		$	–	$	–		$	10	$	–
Mortgage-backed securities
Residential
Agency		3,005		(6	)		153		–			3,158		(6	)
Non-agency (a)
Prime (b)		–		–			625		(48	)		625		(48	)
Non-prime (c)		–		–			311		(49	)		311		(49	)
Other asset-backed securities		–		–			2		(1	)		2		(1	)
Obligations of state and political subdivisions		89		–			4		–			93		–
Obligations of foreign governments		6		–			–		–			6		–
Corporate debt securities		–		–			624		(106	)		624		(106	)
Perpetual preferred securities		22		–			140		(19	)		162		(19	)
Other investments		–		–			3		–			3		–
Total available-for-sale	$	3,132	$	(6	)	$	1,862	$	(223	)	$	4,994	$	(229	)

(a) The Company has $97 million of unrealized losses on residential non-agency mortgage-backed securities. Credit-related other-than-temporary impairment on these securities may occur if there is further deterioration in the underlying collateral pool performance. Borrower defaults may increase if current economic conditions persist or worsen. Additionally, further deterioration in home prices may increase the severity of projected losses.

(b) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads).

(c) Includes all securities not meeting the conditions to be designated as prime.

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Guarantees and Contingent Liabilities

9 Months Ended

Sep. 30, 2012

Guarantees and Contingent Liabilities

Note 12 Guarantees and Contingent Liabilities

Visa Restructuring and Card Association Litigation The Company’s payment services business issues and acquires credit and debit card transactions through the Visa U.S.A. Inc. card association or its affiliates (collectively “Visa”). In 2007, Visa completed a restructuring and issued shares of Visa Inc. common stock to its financial institution members in contemplation of its initial public offering (“IPO”) completed in the first quarter of 2008 (the “Visa Reorganization”). As a part of the Visa Reorganization, the Company received its proportionate number of shares of Visa Inc. common stock, which were subsequently converted to Class B shares of Visa Inc. (“Class B shares”). Visa U.S.A. Inc. (“Visa U.S.A.”) and MasterCard International (collectively, the “Card Associations”), are defendants in antitrust lawsuits challenging the practices of the Card Associations (the “Visa Litigation”). Visa U.S.A. member banks have a contingent obligation to indemnify Visa Inc. under the Visa U.S.A. bylaws (which were modified at the time of the restructuring in October 2007) for potential losses arising from the Visa Litigation. The indemnification by the Visa U.S.A. member banks has no specific maximum amount.

Using proceeds from its IPO and through reductions to the conversion ratio applicable to the Class B shares held by Visa U.S.A. member banks, Visa Inc. has funded an escrow account for the benefit of member financial institutions to fund their indemnification obligations associated with the Visa Litigation. The receivable related to the escrow account is classified in other liabilities as a direct offset to the related Visa Litigation contingent liability. On July 13, 2012, Visa signed a memorandum of understanding to enter into a settlement agreement to resolve class action claims associated with the multi-district interchange litigation (the “MOU agreement”), the largest of the remaining Visa Litigation matters. The MOU agreement has not yet been approved by the court, is not yet binding, and may be challenged by some class members. At September 30, 2012, the carrying amount of the Company’s liability related to the Visa Litigation matters, net of its share of the escrow fundings, was $65 million and included the Company’s estimate of its share of the temporary reduction in interchange rates specified in the MOU agreement. The remaining Class B shares held by the Company will be eligible for conversion to Class A shares, and thereby become marketable, upon settlement of the Visa Litigation. These shares are excluded from the Company’s financial instruments disclosures included in Note 11.

The following table is a summary of other guarantees and contingent liabilities of the Company at September 30, 2012:

(Dollars in Millions)	Collateral Held		Carrying Amount		Maximum Potential Future Payments
Standby letters of credit	$	—	$	81	$	18,323
Third-party borrowing arrangements		—		—		299
Securities lending indemnifications		8,982		—		8,737
Asset sales		—		305		2,710	(a)
Merchant processing		772		80		81,280
Contingent consideration arrangements		—		3		6
Tender option bond program guarantee		5,329		—		5,047
Minimum revenue guarantees		—		17		31
Other		—		18		3,436

(a) The maximum potential future payments do not include loan sales where the Company provides standard representation and warranties to the buyer against losses related to loan underwriting documentation defects that may have existed at the time of sale that generally are identified after the occurrence of a triggering event such as delinquency. For these types of loan sales, the maximum potential future payments is generally the unpaid principal balance of loans sold measured at the end of the current reporting period. Actual losses will be significantly less than the maximum exposure, as only a fraction of loans sold will have a representation and warranty breach, and any losses on repurchase would generally be mitigated by any collateral held against the loans.

Merchant Processing The Company, through its subsidiaries, provides merchant processing services. Under the rules of credit card associations, a merchant processor retains a contingent liability for credit card transactions processed. This contingent liability arises in the event of a billing dispute between the merchant and a cardholder that is ultimately resolved in the cardholder’s favor. In this situation, the transaction is “charged-back” to the merchant and the disputed amount is credited or otherwise refunded to the cardholder. If the Company is unable to collect this amount from the merchant, it bears the loss for the amount of the refund paid to the cardholder.

The Company currently processes card transactions in the United States, Canada and Europe for airline companies. In the event of liquidation of these merchants, the Company could become financially liable for refunding tickets purchased through the credit card associations under the charge-back provisions. Charge-back risk related to these merchants is evaluated in a manner similar to credit risk assessments and, as such, merchant processing contracts contain various provisions to protect the Company in the event of default. At September 30, 2012, the value of airline tickets purchased to be delivered at a future date was $5.9 billion. The Company held collateral of $610 million in escrow deposits, letters of credit and indemnities from financial institutions, and liens on various assets.

Asset Sales The Company regularly sells loans to GSEs as part of its mortgage banking activities. The Company provides customary representation and warranties to the GSEs in conjunction with these sales. These representations and warranties generally require the Company to repurchase assets if it is subsequently determined that a loan did not meet specified criteria, such as a documentation deficiency or rescission of mortgage insurance. If the Company is unable to cure or refute a repurchase request, the Company is generally obligated to repurchase the loan or otherwise reimburse the counterparty for losses. At September 30, 2012, the Company had reserved $220 million for potential losses from representation and warranty obligations, compared with $160 million at December 31, 2011. The $60 million increase was primarily the result of the GSEs increasing the number of loans selected for repurchase review. The Company’s reserve reflects management’s best estimate of losses for representation and warranty obligations. The Company’s reserving methodology uses current information about investor repurchase requests, and assumptions about defect rate, concur rate, repurchase mix, and loss severity, based upon the Company’s most recent loss trends. The Company also considers qualitative factors that may result in anticipated losses differing from historical loss trends, such as loan vintage, underwriting characteristics and macroeconomic trends.

The following table is a rollforward of the Company’s representation and warranty reserve:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	216		$	173		$	160		$	180
Net realized losses		(32	)		(31	)		(88	)		(106	)
Additions to reserve		36			20			148			88
Balance at end of period	$	220		$	162		$	220		$	162

As of September 30, 2012 and December 31, 2011, the Company had $118 million and $105 million, respectively, of unresolved representation and warranty claims from the GSEs. The Company does not have a significant amount of unresolved claims from investors other than the GSEs.

Checking Account Overdraft Fee Litigation The Company is a defendant in three separate cases primarily challenging the Company’s daily ordering of debit transactions posted to customer checking accounts for the period from 2003 to 2010. On July 2, 2012, the Company reached a settlement in principle with the lead plaintiffs for these cases, subject to final documentation and court approvals. The settlement will provide for a payment by the Company of $55 million, which was previously accrued, in exchange for a release of claims asserted against the Company in these matters.

Mortgage-Related Actions and Investigations During the second quarter of 2011, the Company and its two primary banking subsidiaries entered into Consent Orders with U.S. federal banking regulators regarding the Company’s residential mortgage servicing and foreclosure processes. The banking regulators have notified the Company of civil money penalties related to the Consent Orders; however, these penalties are not significant.

Other federal and state governmental authorities have reached a settlement agreement with five major financial institutions regarding their mortgage origination, servicing, and foreclosure activities. Those governmental authorities contacted other financial institutions, including the Company, to discuss their potential participation in a settlement. The Company has not agreed to any settlement at this point; however, if a settlement were reached it would likely include an agreement to comply with specified servicing standards, and settlement payments to governmental authorities as well as a monetary commitment that could be satisfied under various loan modification programs (in addition to the programs the Company already has in place). The Company has accrued $130 million with respect to these and related matters.

The Company is currently subject to other investigations and examinations by government agencies concerning mortgage-related practices, including those related to Federal Housing Administration insured residential home loans.

Other The Company is subject to various other litigation, investigations and legal and administrative cases and proceedings that arise in the ordinary course of its businesses. Due to their complex nature, it may be years before some matters are resolved. While it is impossible to ascertain the ultimate resolution or range of financial liability with respect to these contingent matters, the Company believes that the aggregate amount of such liabilities will not have a material adverse effect on the financial condition, results of operations or cash flows of the Company.

For additional information on the nature of the Company’s guarantees and contingent liabilities, refer to Note 22 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

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Differences between Aggregate Fair Value, Carrying Amount of MLHFS and Aggregate Unpaid Principal Amount (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Carrying Amount
Fair Value, Option, Quantitative Disclosures [Line Items]
Total loans	$ 9,815	$ 6,925
Nonaccrual loans	8	10
Loans 90 days or more past due	2	3
Aggregate Unpaid Principal
Fair Value, Option, Quantitative Disclosures [Line Items]
Total loans	9,215	6,635
Nonaccrual loans	13	15
Loans 90 days or more past due	3	4
Excess of Carrying Amount Over (Under) Unpaid Principal
Fair Value, Option, Quantitative Disclosures [Line Items]
Total loans	600	290
Nonaccrual loans	(5)	(5)
Loans 90 days or more past due	$ (1)	$ (1)

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Employee Benefits

9 Months Ended

Sep. 30, 2012

Employee Benefits

Note 8 Employee Benefits

The components of net periodic benefit cost for the Company’s retirement plans were:

	Three Months Ended September 30,												Nine Months Ended September 30,
	Pension Plans						Postretirement Welfare Plan						Pension Plans						Postretirement Welfare Plan
(Dollars in Millions)	2012			2011			2012			2011			2012			2011			2012			2011
Service cost	$	33		$	30		$	2		$	1		$	97		$	89		$	4		$	3
Interest cost		42			42			1			3			126			126			5			7
Expected return on plan assets		(48	)		(52	)		(1	)		(1	)		(143	)		(155	)		(2	)		(3	)
Prior service cost (credit) and transition obligation (asset) amortization		(2	)		(2	)		—			—			(4	)		(7	)		—			—
Actuarial loss (gain) amortization		41			31			(1	)		(2	)		121			94			(5	)		(5	)
Net periodic benefit cost	$	66		$	49		$	1		$	1		$	197		$	147		$	2		$	2

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Changes in Fair Value of Capitalized MSRs (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2012		Sep. 30, 2011		Sep. 30, 2012		Sep. 30, 2011
Servicing Assets at Fair Value [Line Items]
Balance at beginning of period	$ 1,594		$ 1,989		$ 1,519		$ 1,837
Rights purchased	10		5		39		16
Rights capitalized	224		101		700		416
Changes in fair value of MSRs
Due to fluctuations in market interest rates	(123)	[1]	(534)	[1]	(298)	[1]	(569)	[1]
Due to revised assumptions or models	(2)	[2]	2	[2]	(19)	[2]	27	[2]
Other changes in fair value	(150)	[3]	(97)	[3]	(388)	[3]	(261)	[3]
Balance at end of period	$ 1,553		$ 1,466		$ 1,553		$ 1,466

[1] Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits.

[2] Includes changes in MSR value not caused by changes in market interest rates, such as changes in cost to service, ancillary income, and discount rate, as well as the impact of any model changes.

[3] Primarily represents changes due to realization of expected cash flows over time (decay).

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Preferred Stock

9 Months Ended

Sep. 30, 2012

Preferred Stock

Note 6 Preferred Stock

At September 30, 2012 and December 31, 2011, the Company had authority to issue 50 million shares of preferred stock. The number of shares issued and outstanding and the carrying amount of each outstanding series of the Company’s preferred stock was as follows:

	September 30, 2012								December 31, 2011
(Dollars in Millions)	Shares Issued and Outstanding		Liquidation Preference		Discount		Carrying Amount		Shares Issued and Outstanding		Liquidation Preference		Discount		Carrying Amount
Series A		12,510	$	1,251	$	145	$	1,106		12,510	$	1,251	$	145	$	1,106
Series B		40,000		1,000		—		1,000		40,000		1,000		—		1,000
Series D		20,000		500		—		500		20,000		500		—		500
Series F		44,000		1,100		12		1,088		—		—		—		—
Series G		43,400		1,085		10		1,075		—		—		—		—
Total preferred stock (a)		159,910	$	4,936	$	167	$	4,769		72,510	$	2,751	$	145	$	2,606

(a) The par value of all shares issued and outstanding at September 30, 2012 and December 31, 2011, was $1.00 per share.

On January 23, 2012, the Company issued depositary shares representing an ownership interest in 44,000 shares of Series F Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the “Series F Preferred Stock”), and on April 20, 2012, the Company issued depositary shares representing an ownership interest in 43,400 shares of Series G Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the “Series G Preferred Stock”). The Series F Preferred Stock and Series G Preferred Stock have no stated maturity and will not be subject to any sinking fund or other obligation of the Company. Dividends, if declared, will accrue and be payable quarterly, in arrears, at a rate per annum equal to 6.50 percent from the date of issuance to, but excluding, January 15, 2022, and thereafter at a floating rate per annum equal to three-month LIBOR plus 4.468 percent for the Series F Preferred Stock, and 6.00 percent from the date of issuance to, but excluding, April 15, 2017, and thereafter at a floating rate per annum equal to three-month LIBOR plus 4.86125 percent for the Series G Preferred Stock. Both series are redeemable at the Company’s option, in whole or in part, on or after January 15, 2022, for the Series F Preferred Stock and April 15, 2017, for the Series G Preferred Stock. Both series are redeemable at the Company’s option, in whole, but not in part, prior to January 15, 2022, for the Series F Preferred Stock and prior to April 15, 2017, for the Series G Preferred Stock, within 90 days following an official administrative or judicial decision, amendment to, or change in the laws or regulations that would not allow the Company to treat the full liquidation value of the Series F Preferred Stock or Series G Preferred Stock, respectively, as Tier 1 capital for purposes of the capital adequacy guidelines of the Federal Reserve.

For further information on preferred stock, refer to Note 15 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

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Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share

Note 7 Earnings Per Share

The components of earnings per share were:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars and Shares in Millions, Except Per Share Data)	2012			2011			2012			2011
Net income attributable to U.S. Bancorp	$	1,474		$	1,273		$	4,227		$	3,522
Preferred dividends		(64	)		(30	)		(174	)		(99	)
Earnings allocated to participating stock awards		(6	)		(6	)		(19	)		(16	)
Net income applicable to U.S. Bancorp common shareholders	$	1,404		$	1,237		$	4,034		$	3,407
Average common shares outstanding		1,886			1,915			1,892			1,918
Net effect of the exercise and assumed purchase of stock awards and conversion of outstanding convertible notes		11			7			9			8
Average diluted common shares outstanding		1,897			1,922			1,901			1,926
Earnings per common share	$	.74		$	.65		$	2.13		$	1.78
Diluted earnings per common share	$	.74		$	.64		$	2.12		$	1.77

Options and warrants outstanding at September 30, 2012 to purchase 10 million and 22 million common shares for the three months and nine months ended September 30, 2012, respectively, and outstanding at September 30, 2011 to purchase 60 million and 54 million common shares for the three months and nine months ended September 30, 2011, respectively, were not included in the computation of diluted earnings per share because they were antidilutive. Convertible senior debentures that could potentially be converted into shares of the Company’s common stock pursuant to specified formulas, were not included in the computation of dilutive earnings per share because they were antidilutive.

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Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes

Note 9 Income Taxes

The components of income tax expense were:

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in Millions)	2012		2011			2012		2011
Federal
Current	$	461	$	450		$	1,416	$	907
Deferred		50		(41	)		26		232
Federal income tax		511		409			1,442		1,139
State
Current		77		85			239		157
Deferred		5		(4	)		3		18
State income tax		82		81			242		175
Total income tax provision	$	593	$	490		$	1,684	$	1,314

A reconciliation of expected income tax expense at the federal statutory rate of 35 percent to the Company’s applicable income tax expense follows:

	Three Months Ended September 30,						Nine Months Ended   September 30,
(Dollars in Millions)	2012			2011			2012			2011
Tax at statutory rate	$	709		$	610		$	2,030		$	1,671
State income tax, at statutory rates, net of federal tax benefit		53			53			157			114
Tax effect of
Tax credits, net of related expenses		(120	)		(124	)		(322	)		(319	)
Tax-exempt income		(55	)		(57	)		(165	)		(170	)
Noncontrolling interests		15			8			39			22
Other items		(9	)		—			(55	)		(4	)
Applicable income taxes	$	593		$	490		$	1,684		$	1,314

The Company’s income tax returns are subject to review and examination by federal, state, local and foreign government authorities. On an ongoing basis, numerous federal, state, local and foreign examinations are in progress and cover multiple tax years. As of September 30, 2012, the federal taxing authority has completed its examination of the Company through the fiscal year ended December 31, 2008. The years open to examination by foreign, state and local government authorities vary by jurisdiction.

The Company’s net deferred tax liability was $1.6 billion at September 30, 2012, and $1.1 billion at December 31, 2011.

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Number of Shares Issued and Outstanding and Carrying Amount of Preferred Stock (Detail) (USD $) In Millions, except Share data, unless otherwise specified	Sep. 30, 2012		Dec. 31, 2011
Class of Stock [Line Items]
Shares Issued and Outstanding	159,910	[1]	72,510	[1]
Liquidation Preference	$ 4,936	[1]	$ 2,751	[1]
Discount	167	[1]	145	[1]
Carrying Amount	4,769	[1]	2,606	[1]
Series A
Class of Stock [Line Items]
Shares Issued and Outstanding	12,510		12,510
Liquidation Preference	1,251		1,251
Discount	145		145
Carrying Amount	1,106		1,106
Series B
Class of Stock [Line Items]
Shares Issued and Outstanding	40,000		40,000
Liquidation Preference	1,000		1,000
Carrying Amount	1,000		1,000
Series D
Class of Stock [Line Items]
Shares Issued and Outstanding	20,000		20,000
Liquidation Preference	500		500
Carrying Amount	500		500
Series F
Class of Stock [Line Items]
Shares Issued and Outstanding	44,000
Liquidation Preference	1,100
Discount	12
Carrying Amount	1,088
Series G
Class of Stock [Line Items]
Shares Issued and Outstanding	43,400
Liquidation Preference	1,085
Discount	10
Carrying Amount	$ 1,075

[1] The par value of all shares issued and outstanding at September 30, 2012 and December 31, 2011, was $1.00 per share.

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Estimated Fair Values of Financial Instruments (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012		Dec. 31, 2011
Financial Assets
Cash and due from banks	$ 9,382		$ 13,962
Investment securities held-to-maturity	34,509	[1]	18,877	[1]
Loans	213,669		205,082
Financial Liabilities
Deposits	244,232		230,885
Short-term borrowings	27,853		30,468
Long-term debt	26,264		31,953
Carrying Amount
Financial Assets
Cash and due from banks	9,382		13,962
Federal funds sold and securities purchased under resale agreements	166		64
Investment securities held-to-maturity	34,509		18,877
Mortgages held for sale			3	[2]
Other loans held for sale	64		228
Loans	213,669		205,082
Other financial instruments	6,991		6,095
Financial Liabilities
Deposits	244,232		230,885
Short-term borrowings	27,853		30,468
Long-term debt	26,264		31,953
Fair Value
Financial Assets
Cash and due from banks	9,382		13,962
Federal funds sold and securities purchased under resale agreements	166		64
Investment securities held-to-maturity	35,226		19,216
Mortgages held for sale			3	[2]
Other loans held for sale	64		228
Loans	216,105		206,646
Other financial instruments	7,017		6,140
Financial Liabilities
Deposits	244,690		231,184
Short-term borrowings	27,885		30,448
Long-term debt	27,264		32,664
Fair Value | Level 1
Financial Assets
Cash and due from banks	9,382
Investment securities held-to-maturity	2,441
Fair Value | Level 2
Financial Assets
Federal funds sold and securities purchased under resale agreements	166
Investment securities held-to-maturity	32,719
Other financial instruments	1,246
Financial Liabilities
Deposits	244,690
Short-term borrowings	27,885
Long-term debt	27,264
Fair Value | Level 3
Financial Assets
Investment securities held-to-maturity	66
Other loans held for sale	64
Loans	216,105
Other financial instruments	$ 5,771

[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.

[2] Balance excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected.

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Earnings Per Share - Additional Information (Detail) (Stock Option) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Stock Option
Options outstanding of common shares	10	60	22	54

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Preferred Stock - Additional Information (Detail) (USD $)			9 Months Ended		9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2012 Series F	Jan. 23, 2012 Series F	Sep. 30, 2012 Series G	Apr. 20, 2012 Series G
Class of Stock [Line Items]
Number of preferred stock, shares authorized	50,000,000	50,000,000
Par value of Preference shares issued and outstanding	$ 1.00	$ 1.00
Preferred Stock, Shares Issued			44,000		43,400
Liquidation preference per share				$ 25,000		$ 25,000
Preferred stock, dividend rate, fixed percentage			6.50%		6.00%
Preferred stock, dividend rate, variable percentage			4.468%		4.86125%
Maximum period to redeem preferred stock			90 days		90 days
Preferred stock, dividend rate, period			Three-month LIBOR plus		Three-month LIBOR plus

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Investment Securities - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2012 Y CreditScore	Sep. 30, 2011	Jun. 30, 2012	Sep. 30, 2012 Y CreditScore	Sep. 30, 2011	Dec. 31, 2011 Y
Federal statutory rate	35.00%	35.00%		35.00%	35.00%
Minimum weighted average credit score of prime securities	725			725
Maximum loan-to-value of prime securities	80.00%			80.00%
Available-for-sale agency mortgage-backed securities transferred to held-to-maturity			$ 11,700,000,000
Weighted-average maturity of the available-for-sale investment securities (in years)	4.0			4.0		5.2
Weighted-average yields of available-for-sale investment securities	3.04%			3.04%		3.19%
Weighted-average maturity of the held-to-maturity investment securities (in years)	3.1			3.1		3.9
Weighted-average yields of held-to-maturity investment securities	2.06%			2.06%		2.21%
Securities pledged	16,500,000,000			16,500,000,000		20,700,000,000
Securities pledged as collateral where counterparty has right to repledge or resell	3,400,000,000			3,400,000,000		7,000,000,000
Available-for-sale and held-to-maturity unrealized losses on residential non-agency mortgage-backed securities				$ 97,000,000

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Summary of Loans by Portfolio Type (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012		Dec. 31, 2011
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 212,989		$ 203,222
30-89 Days Past Due	1,473		1,782
90 Days or More Past Due	1,326		1,753
Nonperforming	2,362		3,078
Total	218,150		209,835
Commercial Loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	62,502		55,991
30-89 Days Past Due	216		300
90 Days or More Past Due	40		45
Nonperforming	152		312
Total	62,910		56,648
Commercial Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	36,105		34,800
30-89 Days Past Due	65		138
90 Days or More Past Due	12		14
Nonperforming	631		899
Total	36,813		35,851
Residential Mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	40,451	[1]	35,664	[1]
30-89 Days Past Due	393	[1]	404	[1]
90 Days or More Past Due	301	[1]	364	[1]
Nonperforming	757	[1]	650	[1]
Total	41,902	[1]	37,082	[1]
Credit Card
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	15,815		16,662
30-89 Days Past Due	230		238
90 Days or More Past Due	194		236
Nonperforming	163		224
Total	16,402		17,360
Other Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	47,358		47,516
30-89 Days Past Due	300		340
90 Days or More Past Due	97		184
Nonperforming	210		67
Total	47,965		48,107
Total Loans, Excluding Covered Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	202,231		190,633
30-89 Days Past Due	1,204		1,420
90 Days or More Past Due	644		843
Nonperforming	1,913		2,152
Total	205,992		195,048
Covered loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	10,758		12,589
30-89 Days Past Due	269		362
90 Days or More Past Due	682		910
Nonperforming	449		926
Total	$ 12,158		$ 14,787

[1] At September 30, 2012, $462 million of loans 30 - 89 days past due and $3.0 billion of loans 90 days or more past due purchased from Government National Mortgage Association ("GNMA") mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs, were classified as current, compared with $545 million and $2.6 billion at December 31, 2011, respectively.

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Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2012

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with accounting principles generally accepted in the United States. In the opinion of management of U.S. Bancorp (the “Company”), all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. Certain amounts in prior periods have been reclassified to conform to the current presentation.

Accounting policies for the lines of business are generally the same as those used in preparation of the consolidated financial statements with respect to activities specifically attributable to each business line. However, the preparation of business line results requires management to establish methodologies to allocate funding costs, expenses and other financial elements to each line of business. Table 10 “Line of Business Financial Performance” included in Management’s Discussion and Analysis provides details of segment results. This information is incorporated by reference into these Notes to Consolidated Financial Statements.

Indemnification Assets Related to FDIC Loss-Sharing Agreements

In October 2012, the Financial Accounting Standards Board issued accounting guidance, effective January 1, 2013, applicable to indemnification assets related to FDIC loss-sharing agreements. The guidance requires any reduction in the FDIC indemnification assets resulting from increases in expected cash flows of the covered assets, when there are no previous valuation allowances to reverse, to be amortized over the shorter of the remaining contractual term of the indemnification agreements or the remaining life of the covered assets. Currently, the Company amortizes these changes over the expected life of the covered assets. The Company is currently assessing the impact that this guidance will have on its financial statements.

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Preferred Stock (Tables)

9 Months Ended

Sep. 30, 2012

Number of Shares Issued and Outstanding and Carrying Amount of Preferred Stock

The number of shares issued and outstanding and the carrying amount of each outstanding series of the Company’s preferred stock was as follows:

	September 30, 2012								December 31, 2011
(Dollars in Millions)	Shares Issued and Outstanding		Liquidation Preference		Discount		Carrying Amount		Shares Issued and Outstanding		Liquidation Preference		Discount		Carrying Amount
Series A		12,510	$	1,251	$	145	$	1,106		12,510	$	1,251	$	145	$	1,106
Series B		40,000		1,000		—		1,000		40,000		1,000		—		1,000
Series D		20,000		500		—		500		20,000		500		—		500
Series F		44,000		1,100		12		1,088		—		—		—		—
Series G		43,400		1,085		10		1,075		—		—		—		—
Total preferred stock (a)		159,910	$	4,936	$	167	$	4,769		72,510	$	2,751	$	145	$	2,606

(a) The par value of all shares issued and outstanding at September 30, 2012 and December 31, 2011, was $1.00 per share.

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Activity in Allowance for Credit Losses (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	$ 4,864	$ 5,308	$ 5,014	$ 5,531
Provision for credit losses	488	519	1,439	1,846
Loans charged off	639	762	1,951	2,511
Less recoveries of loans charged off	(101)	(93)	(322)	(290)
Net loans charged off	538	669	1,629	2,221
Net change for credit losses to be reimbursed by the FDIC	(10)	32	(20)	34
Other changes	(33)		(33)
Balance at end of period	4,771	5,190	4,771	5,190
Commercial
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	1,037	1,109	1,010	1,104
Provision for credit losses	63	15	247	255
Loans charged off	90	126	296	412
Less recoveries of loans charged off	(24)	(27)	(73)	(78)
Net loans charged off	66	99	223	334
Balance at end of period	1,034	1,025	1,034	1,025
Commercial Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	941	1,258	1,154	1,291
Provision for credit losses	(22)	88	(111)	344
Loans charged off	47	131	206	446
Less recoveries of loans charged off	(22)	(6)	(57)	(32)
Net loans charged off	25	125	149	414
Balance at end of period	894	1,221	894	1,221
Residential Mortgages
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	939	841	927	820
Provision for credit losses	143	168	376	437
Loans charged off	127	124	357	380
Less recoveries of loans charged off	(6)	(2)	(15)	(10)
Net loans charged off	121	122	342	370
Balance at end of period	961	887	961	887
Credit Card
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	996	1,140	992	1,395
Provision for credit losses	119	106	462	314
Loans charged off	186	203	585	712
Less recoveries of loans charged off	(19)	(25)	(79)	(71)
Net loans charged off	167	178	506	641
Other changes	(33)		(33)
Balance at end of period	915	1,068	915	1,068
Other Retail
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	828	843	831	807
Provision for credit losses	185	131	431	477
Loans charged off	187	175	503	551
Less recoveries of loans charged off	(30)	(33)	(97)	(99)
Net loans charged off	157	142	406	452
Balance at end of period	856	832	856	832
Total Loans, Excluding Covered Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	4,741	5,191	4,914	5,417
Provision for credit losses	488	508	1,405	1,827
Loans charged off	637	759	1,947	2,501
Less recoveries of loans charged off	(101)	(93)	(321)	(290)
Net loans charged off	536	666	1,626	2,211
Other changes	(33)		(33)
Balance at end of period	4,660	5,033	4,660	5,033
Covered Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	123	117	100	114
Provision for credit losses		11	34	19
Loans charged off	2	3	4	10
Less recoveries of loans charged off			(1)
Net loans charged off	2	3	3	10
Net change for credit losses to be reimbursed by the FDIC	(10)	32	(20)	34
Balance at end of period	$ 111	$ 157	$ 111	$ 157

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Accretable Balance of Structured Investment Securities and Other Investment Securities (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended			9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011		Sep. 30, 2012		Sep. 30, 2011
Changes In Amortized Cost And Accretable Balance Investments [Line Items]
Balance at beginning of period	$ 93	$ 117		$ 100		$ 139
Accretion	(3)	(4)		(11)		(13)
Disposals	(90)			(90)
Other		(6)	[1]	1	[1]	(19)	[1]
Balance at end of period		$ 107				$ 107

[1] Primarily represents changes in projected future cash flows related to variable rates on certain investment securities.

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Consolidated Statement of Comprehensive Income (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net income	$ 1,432	$ 1,252	$ 4,115	$ 3,460
Other comprehensive income (loss)
Changes in unrealized gains and losses on securities available-for-sale	300	181	738	958
Other-than-temporary impairment not recognized in earnings on securities available-for-sale	2	(2)	3	(17)
Amortization of unrealized gains on securities transferred from available-for-sale to held-to-maturity	(21)		(28)
Changes in unrealized gains (losses) on derivative hedges	(30)	(196)	(68)	(323)
Foreign currency translation	26	1	34	(16)
Reclassification to earnings of realized gains and losses	90	92	288	270
Income taxes related to other comprehensive income	(140)	(29)	(370)	(333)
Total other comprehensive income (loss)	227	47	597	539
Comprehensive income	1,659	1,299	4,712	3,999
Comprehensive (income) loss attributable to noncontrolling interests	42	21	112	62
Comprehensive income attributable to U.S. Bancorp	$ 1,701	$ 1,320	$ 4,824	$ 4,061

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Company's Representation and Warranty Reserve (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Representation and Warranty Reserve, Beginning Balance	$ 216	$ 173	$ 160	$ 180
Net realized losses	(32)	(31)	(88)	(106)
Additions to reserve	36	20	148	88
Representation and Warranty Reserve, Ending Balance	$ 220	$ 162	$ 220	$ 162

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Loans and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2012

Loans and Allowance for Credit Losses

Note 3 Loans and Allowance for Credit Losses

The composition of the loan portfolio, disaggregated by class and underlying specific portfolio type, was as follows:

	September 30, 2012					December 31, 2011
(Dollars in Millions)	Amount		Percent of Total			Amount		Percent of Total
Commercial
Commercial	$	57,415		26.3	%	$	50,734		24.2	%
Lease financing		5,495		2.5			5,914		2.8
Total commercial		62,910		28.8			56,648		27.0
Commercial real estate
Commercial mortgages		30,831		14.1			29,664		14.1
Construction and development		5,982		2.8			6,187		3.0
Total commercial real estate		36,813		16.9			35,851		17.1
Residential mortgages
Residential mortgages		31,504		14.4			28,669		13.7
Home equity loans, first liens		10,398		4.8			8,413		4.0
Total residential mortgages		41,902		19.2			37,082		17.7
Credit card		16,402		7.5			17,360		8.3
Other retail
Retail leasing		5,332		2.4			5,118		2.4
Home equity and second mortgages		17,119		7.9			18,131		8.6
Revolving credit		3,320		1.5			3,344		1.6
Installment		5,474		2.5			5,348		2.6
Automobile		12,431		5.7			11,508		5.5
Student		4,289		2.0			4,658		2.2
Total other retail		47,965		22.0			48,107		22.9
Total loans, excluding covered loans		205,992		94.4			195,048		93.0
Covered loans		12,158		5.6			14,787		7.0
Total loans	$	218,150		100.0	%	$	209,835		100.0	%

The Company had loans of $73.2 billion at September 30, 2012, and $67.0 billion at December 31, 2011, pledged at the Federal Home Loan Bank (“FHLB”), and loans of $47.2 billion at September 30, 2012, and $47.2 billion at December 31, 2011, pledged at the Federal Reserve Bank.

Originated loans are reported at the principal amount outstanding, net of unearned interest and deferred fees and costs. Net unearned interest and deferred fees and costs amounted to $.8 billion at September 30, 2012, and $1.1 billion at December 31, 2011. All purchased loans and related indemnification assets are recorded at fair value at the date of purchase. The Company evaluates purchased loans for impairment at the date of purchase in accordance with applicable authoritative accounting guidance. Purchased loans with evidence of credit deterioration since origination for which it is probable that all contractually required payments will not be collected are considered “purchased impaired loans.” All other purchased loans are considered “purchased nonimpaired loans.”

On the acquisition date, the estimate of the contractually required payments receivable for all purchased impaired loans acquired in the first quarter 2012 acquisition of BankEast, a subsidiary of BankEast Corporation, from the Federal Deposit Insurance Corporation (“FDIC”) was $63 million, the cash flows expected to be collected was $41 million including interest, and the estimated fair value of the loans was $28 million. These amounts were determined based upon the estimated remaining life of the underlying loans, which includes the effects of estimated prepayments. For the purchased nonimpaired loans acquired in the BankEast transaction, the estimate as of the acquisition date of the contractually required payments receivable was $135 million, the contractual cash flows not expected to be collected was $22 million, and the estimated fair value of the loans was $96 million. The BankEast transaction did not include a loss sharing agreement.

Changes in the accretable balance for all purchased impaired loans, including those acquired in the BankEast transaction, were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	2,431		$	3,015		$	2,619		$	2,890
Purchases		–			–			13			100
Accretion		(109	)		(110	)		(337	)		(337	)
Disposals		(37	)		(43	)		(135	)		(47	)
Reclassifications (to)/from nonaccretable difference (a)		58			(170	)		191			117
Other		(14	)		(7	)		(22	)		(38	)
Balance at end of period	$	2,329		$	2,685		$	2,329		$	2,685

(a) Primarily relates to changes in expected credit performance.

Allowance for Credit Losses The allowance for credit losses reserves for probable and estimable losses incurred in the Company’s loan and lease portfolio and includes certain amounts that do not represent loss exposure to the Company because those losses are recoverable under loss sharing agreements with the FDIC. The allowance for credit losses is increased through provisions charged to operating earnings and reduced by net charge-offs. Management evaluates the allowance each quarter to ensure it appropriately reserves for incurred losses.

The allowance recorded for loans in the commercial lending segment is based on reviews of individual credit relationships and considers the migration analysis of commercial lending segment loans and actual loss experience. The Company currently uses an 11-year period of historical losses in considering actual loss experience. This timeframe and the results of the analysis are evaluated quarterly to determine the appropriateness. The allowance recorded for impaired loans greater than $5 million in the commercial lending segment is based on an individual loan analysis utilizing expected cash flows discounted using the original effective interest rate, the observable market price, or the fair value of the collateral for collateral-dependent loans. The allowance recorded for all other commercial lending segment loans is determined on a homogenous pool basis and includes consideration of product mix, risk characteristics of the portfolio, bankruptcy experience, and historical losses, adjusted for current trends. The Company also considers the impacts of any loan modifications made to commercial lending segment loans and any subsequent payment defaults to its expectations of cash flows, principal balance, and current expectations about the borrower’s ability to pay in determining the allowance for credit losses.

The allowance recorded for purchased impaired and Troubled Debt Restructuring (“TDR”) loans in the consumer lending segment is determined on a homogenous pool basis utilizing expected cash flows discounted using the original effective interest rate of the pool. The allowance for collateral-dependent loans in the consumer lending segment is determined based on the fair value of the collateral. The allowance recorded for all other consumer lending segment loans is determined on a homogenous pool basis and includes consideration of product mix, risk characteristics of the portfolio, bankruptcy experience, delinquency status and historical losses, adjusted for current trends. The Company also considers any modifications made to consumer lending segment loans including the impacts of any subsequent payment defaults since modification in determining the allowance for credit losses, such as borrower’s ability to pay under the restructured terms, and the timing and amount of payments.

Covered assets represent loans and other assets acquired from the FDIC, subject to loss sharing agreements, and include expected reimbursements from the FDIC. The allowance for covered segment loans is evaluated each quarter in a manner similar to that described for non-covered loans and represents any decreases in expected cash flows of those loans after the acquisition date. The provision for credit losses for covered segment loans considers the indemnification provided by the FDIC.

In addition, subsequent payment defaults on loan modifications considered TDRs are considered in the underlying factors used in the determination of the appropriateness of the allowance for credit losses. For each loan segment, the Company estimates future loan charge-offs through a variety of analysis, trends and underlying assumptions. With respect to the commercial lending segment, TDRs may be collectively evaluated for impairment where observed performance history, including defaults, is a primary driver of the loss allocation. For commercial TDRs individually evaluated for impairment, attributes of the borrower are the primary factors in determining the allowance for credit losses. However, incorporation of loss history is factored into the allowance methodology applied to this category of loans. With respect to the consumer lending segment, performance of the portfolio, including defaults on TDRs, is considered when estimating future cash flows.

The Company’s methodology for determining the appropriate allowance for credit losses for all the loan segments also considers the imprecision inherent in the methodologies used. As a result, in addition to the amounts determined under the methodologies described above, management also considers the potential impact of other qualitative factors which include, but are not limited to, economic factors; geographic and other concentration risks; delinquency and nonaccrual trends; current business conditions; changes in lending policy, underwriting standards, internal review and other relevant business practices; and the regulatory environment. The consideration of these items results in adjustments to allowance amounts included in the Company’s allowance for credit losses for each of the above loan segments.

The Company also assesses the credit risk associated with off-balance sheet loan commitments, letters of credit, and derivatives. Credit risk associated with derivatives is reflected in the fair values recorded for those positions. The liability for off-balance sheet credit exposure related to loan commitments and other credit guarantees is included in other liabilities. Because business processes and credit risks associated with unfunded credit commitments are essentially the same as for loans, the Company utilizes similar processes to estimate its liability for unfunded credit commitments.

Activity in the allowance for credit losses by portfolio class was as follows:

Three Months Ended September 30 (Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans, Excluding Covered Loans			Covered Loans			Total Loans
2012
Balance at beginning of period	$	1,037		$	941		$	939		$	996		$	828		$	4,741		$	123		$	4,864
Add
Provision for credit losses		63			(22	)		143			119			185			488			–			488
Deduct
Loans charged off		90			47			127			186			187			637			2			639
Less recoveries of loans charged off		(24	)		(22	)		(6	)		(19	)		(30	)		(101	)		–			(101	)
Net loans charged off		66			25			121			167			157			536			2			538
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			(10	)		(10	)
Other changes		–			–			–			(33	)		–			(33	)		–			(33	)
Balance at end of period	$	1,034		$	894		$	961		$	915		$	856		$	4,660		$	111		$	4,771
2011
Balance at beginning of period	$	1,109		$	1,258		$	841		$	1,140		$	843		$	5,191		$	117		$	5,308
Add
Provision for credit losses		15			88			168			106			131			508			11			519
Deduct
Loans charged off		126			131			124			203			175			759			3			762
Less recoveries of loans charged off		(27	)		(6	)		(2	)		(25	)		(33	)		(93	)		–			(93	)
Net loans charged off		99			125			122			178			142			666			3			669
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			32			32
Balance at end of period	$	1,025		$	1,221		$	887		$	1,068		$	832		$	5,033		$	157		$	5,190

Nine Months Ended September 30 (Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans, Excluding Covered Loans			Covered Loans			Total Loans
2012
Balance at beginning of period	$	1,010		$	1,154		$	927		$	992		$	831		$	4,914		$	100		$	5,014
Add
Provision for credit losses		247			(111	)		376			462			431			1,405			34			1,439
Deduct
Loans charged off		296			206			357			585			503			1,947			4			1,951
Less recoveries of loans charged off		(73	)		(57	)		(15	)		(79	)		(97	)		(321	)		(1	)		(322	)
Net loans charged off		223			149			342			506			406			1,626			3			1,629
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			(20	)		(20	)
Other change		–			–			–			(33	)		–			(33	)		–			(33	)
Balance at end of period	$	1,034		$	894		$	961		$	915		$	856		$	4,660		$	111		$	4,771
2011
Balance at beginning of period	$	1,104		$	1,291		$	820		$	1,395		$	807		$	5,417		$	114		$	5,531
Add
Provision for credit losses		255			344			437			314			477			1,827			19			1,846
Deduct
Loans charged off		412			446			380			712			551			2,501			10			2,511
Less recoveries of loans charged off		(78	)		(32	)		(10	)		(71	)		(99	)		(290	)		–			(290	)
Net loans charged off		334			414			370			641			452			2,211			10			2,221
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			34			34
Balance at end of period	$	1,025		$	1,221		$	887		$	1,068		$	832		$	5,033		$	157		$	5,190

Additional detail of the allowance for credit losses by portfolio class was as follows:

(Dollars in Millions)	Commercial		Commercial Real Estate		Residential Mortgages		Credit Card		Other Retail		Total Loans, Excluding Covered Loans		Covered Loans		Total Loans
Allowance balance at September 30, 2012 related to
Loans individually evaluated for impairment (a)	$	6	$	33	$	–	$	–	$	–	$	39	$	–	$	39
TDRs collectively evaluated for impairment		31		28		464		167		59		749		1		750
Other loans collectively evaluated for impairment		997		828		497		748		797		3,867		21		3,888
Loans acquired with deteriorated credit quality		–		5		–		–		–		5		89		94
Total allowance for credit losses	$	1,034	$	894	$	961	$	915	$	856	$	4,660	$	111	$	4,771
Allowance balance at December 31, 2011 related to
Loans individually evaluated for impairment (a)	$	16	$	61	$	1	$	–	$	–	$	78	$	2	$	80
TDRs collectively evaluated for impairment		40		33		490		219		57		839		–		839
Other loans collectively evaluated for impairment		954		1,057		436		773		774		3,994		22		4,016
Loans acquired with deteriorated credit quality		–		3		–		–		–		3		76		79
Total allowance for credit losses	$	1,010	$	1,154	$	927	$	992	$	831	$	4,914	$	100	$	5,014

(a) Represents the allowance for credit losses related to loans greater than $5 million classified as nonperforming or TDRs.

Additional detail of loan balances by portfolio class was as follows:

(Dollars in Millions)	Commercial		Commercial Real Estate		Residential Mortgages		Credit Card		Other Retail		Total Loans, Excluding Covered Loans		Covered Loans (b)		Total Loans
September 30, 2012
Loans individually evaluated for impairment (a)	$	132	$	612	$	–	$	–	$	–	$	744	$	73	$	817
TDRs collectively evaluated for impairment		179		383		4,033		462		269		5,326		137		5,463
Other loans collectively evaluated for impairment		62,594		35,699		37,863		15,940		47,696		199,792		6,564		206,356
Loans acquired with deteriorated credit quality		5		119		6		–		–		130		5,384		5,514
Total loans	$	62,910	$	36,813	$	41,902	$	16,402	$	47,965	$	205,992	$	12,158	$	218,150
December 31, 2011
Loans individually evaluated for impairment (a)	$	222	$	812	$	6	$	–	$	–	$	1,040	$	204	$	1,244
TDRs collectively evaluated for impairment		277		331		3,430		584		148		4,770		113		4,883
Other loans collectively evaluated for impairment		56,138		34,574		33,642		16,776		47,959		189,089		8,616		197,705
Loans acquired with deteriorated credit quality		11		134		4		–		–		149		5,854		6,003
Total loans	$	56,648	$	35,851	$	37,082	$	17,360	$	48,107	$	195,048	$	14,787	$	209,835

(a) Represents loans greater than $5 million classified as nonperforming or TDRs.

(b) Includes expected reimbursements from the FDIC under loss sharing agreements.

Credit Quality The quality of the Company’s loan portfolios is assessed as a function of net credit losses, levels of nonperforming assets and delinquencies, and credit quality ratings as defined by the Company.

For all loan classes, loans are considered past due based on the number of days delinquent except for monthly amortizing loans which are classified delinquent based upon the number of contractually required payments not made (for example, two missed payments is considered 30 days delinquent).

Commercial lending segment loans are generally placed on nonaccrual status when the collection of principal and interest has become 90 days past due or is otherwise considered doubtful. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Commercial lending segment loans are generally fully or partially charged down to the fair value of the collateral securing the loan, less costs to sell, when the loan is considered uncollectible.

Consumer lending segment loans are generally charged-off at a specific number of days or payments past due. Residential mortgages and other retail loans secured by 1-4 family properties are generally charged down to the fair market value of the collateral securing the loan, less costs to sell, at 180 days past due, and placed on nonaccrual status in instances where a partial charge-off occurs unless the loan is well secured and in the process of collection. Loans and lines in a junior lien position secured by 1-4 family properties are placed on nonaccrual status at 120 days past due or when behind a first lien that has become 180 days or greater past due or placed on nonaccrual status. Any secured consumer lending segment loan whose borrower has had debt discharged through bankruptcy, for which the loan amount exceeds the fair value of the collateral, is charged down to the fair value of the related collateral and the remaining balance is placed on nonaccrual status. Credit card loans continue to accrue interest until the account is charged off. Credit cards are charged off at 180 days past due. Other retail loans not secured by 1-4 family properties are charged-off at 120 days past due; and revolving consumer lines are charged off at 180 days past due. Similar to credit cards, other retail loans are generally not placed on nonaccrual status because of the relative short period of time to charge-off. Certain retail customers having financial difficulties may have the terms of their credit card and other loan agreements modified to require only principal payments and, as such, are reported as nonaccrual.

For all loan classes, interest payments received on nonaccrual loans are generally recorded as a reduction to the loan carrying amount. Interest payments are generally recorded as reductions to a loan’s carrying amount while a loan is on nonaccrual and are recognized as interest income upon payoff of the loan. Interest income may be recognized for interest payments if the remaining carrying amount of the loan is believed to be collectible. In certain circumstances, loans in any class may be restored to accrual status, such as when none of the principal and interest is past due and prospects for future payment are no longer in doubt; or the loan becomes well secured and is in the process of collection. Loans where there has been a partial charge-off may be returned to accrual status if all principal and interest (including amounts previously charged-off) is expected to be collected and the loan is current.

Covered loans not considered to be purchased impaired are evaluated for delinquency, nonaccrual status and charge-off consistent with the class of loan they would be included in had the loss share coverage not been in place. Generally, purchased impaired loans are considered accruing loans. However, the timing and amount of future cash flows for some loans is not reasonably estimable. Those loans are classified as nonaccrual loans and interest income is not recognized until the timing and amount of the future cash flows can be reasonably estimated.

The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to accrue interest, and those that are nonperforming:

	Accruing
(Dollars in Millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Nonperforming		Total
September 30, 2012
Commercial	$	62,502	$	216	$	40	$	152	$	62,910
Commercial real estate		36,105		65		12		631		36,813
Residential mortgages (a)		40,451		393		301		757		41,902
Credit card		15,815		230		194		163		16,402
Other retail		47,358		300		97		210		47,965
Total loans, excluding covered loans		202,231		1,204		644		1,913		205,992
Covered loans		10,758		269		682		449		12,158
Total loans	$	212,989	$	1,473	$	1,326	$	2,362	$	218,150
December 31, 2011
Commercial	$	55,991	$	300	$	45	$	312	$	56,648
Commercial real estate		34,800		138		14		899		35,851
Residential mortgages (a)		35,664		404		364		650		37,082
Credit card		16,662		238		236		224		17,360
Other retail		47,516		340		184		67		48,107
Total loans, excluding covered loans		190,633		1,420		843		2,152		195,048
Covered loans		12,589		362		910		926		14,787
Total loans	$	203,222	$	1,782	$	1,753	$	3,078	$	209,835

(a) At September 30, 2012, $462 million of loans 30 – 89 days past due and $3.0 billion of loans 90 days or more past due purchased from Government National Mortgage Association (“GNMA”) mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs, were classified as current, compared with $545 million and $2.6 billion at December 31, 2011, respectively.

The Company classifies its loan portfolios using internal credit quality ratings on a quarterly basis. These ratings include: pass, special mention and classified, and are an important part of the Company’s overall credit risk management process and evaluation of the allowance for credit losses. Loans with a pass rating represent those not classified on the Company’s rating scale for problem credits, as minimal credit risk has been identified. Special mention loans are those that have a potential weakness deserving management’s close attention. Classified loans are those where a well-defined weakness has been identified that may put full collection of contractual cash flows at risk. It is possible that others, given the same information, may reach different reasonable conclusions regarding the credit quality rating classification of specific loans.

The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating:

			Criticized
(Dollars in Millions)	Pass		Special Mention		Classified (a)		Total Criticized		Total
September 30, 2012
Commercial	$	60,403	$	1,265	$	1,242	$	2,507	$	62,910
Commercial real estate		33,326		785		2,702		3,487		36,813
Residential mortgages (b)		40,666		24		1,212		1,236		41,902
Credit card		16,046		–		356		356		16,402
Other retail		47,522		43		400		443		47,965
Total loans, excluding covered loans		197,963		2,117		5,912		8,029		205,992
Covered loans		11,544		96		518		614		12,158
Total loans	$	209,507	$	2,213	$	6,430	$	8,643	$	218,150
Total outstanding commitments	$	431,162	$	3,725	$	7,276	$	11,001	$	442,163
December 31, 2011
Commercial	$	54,003	$	1,047	$	1,598	$	2,645	$	56,648
Commercial real estate		30,733		793		4,325		5,118		35,851
Residential mortgages (b)		35,814		19		1,249		1,268		37,082
Credit card		16,910		–		450		450		17,360
Other retail		47,665		24		418		442		48,107
Total loans, excluding covered loans		185,125		1,883		8,040		9,923		195,048
Covered loans		13,966		187		634		821		14,787
Total loans	$	199,091	$	2,070	$	8,674	$	10,744	$	209,835
Total outstanding commitments	$	410,457	$	3,418	$	9,690	$	13,108	$	423,565

(a) Classified rating on consumer loans primarily based on delinquency status.

(b) At September 30, 2012, $3.0 billion of GNMA loans 90 days or more past due and $2.2 billion of restructured GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs were classified with a pass rating, compared with $2.6 billion and $2.0 billion at December 31, 2011, respectively.

For all loan classes, a loan is considered to be impaired when, based on current events or information, it is probable the Company will be unable to collect all amounts due per the contractual terms of the loan agreement. Impaired loans include all nonaccrual and TDR loans. For all loan classes, interest income on TDR loans is recognized under the modified terms and conditions if the borrower has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles. Interest income is not recognized on other impaired loans until the loan is paid off.

Factors used by the Company in determining whether all principal and interest payments due on commercial and commercial real estate loans will be collected and therefore whether those loans are impaired include, but are not limited to, the financial condition of the borrower, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on industry, geographic location and certain financial ratios. The evaluation of impairment on residential mortgages, credit card and other retail loans is primarily driven by delinquency status of individual loans or whether a loan has been modified. Individual covered loans, whose future losses are covered by loss sharing agreements with the FDIC that substantially reduce the risk of credit losses to the Company, are evaluated for impairment and accounted for in a manner consistent with the class of loan they would have been included in had the loss sharing coverage not been in place.

A summary of impaired loans by portfolio class was as follows:

(Dollars in Millions)	Period-end Recorded Investment (a)		Unpaid Principal Balance		Valuation Allowance		Commitments to Lend Additional Funds
September 30, 2012
Commercial	$	382	$	1,341	$	40	$	23
Commercial real estate		1,214		2,466		75		5
Residential mortgages		2,833		3,524		437		–
Credit card		463		462		167		–
Other retail		408		455		64		7
Total impaired loans, excluding GNMA and covered loans		5,300		8,248		783		35
Loans purchased from GNMA mortgage pools		1,631		1,631		36		–
Covered loans		820		1,612		18		13
Total	$	7,751	$	11,491	$	837	$	48
December 31, 2011
Commercial	$	657	$	1,437	$	62	$	68
Commercial real estate		1,436		2,503		124		25
Residential mortgages		2,652		3,193		482		2
Credit card		584		584		219		–
Other retail		188		197		57		–
Total impaired loans, excluding GNMA and covered loans		5,517		7,914		944		95
Loans purchased from GNMA mortgage pools		1,265		1,265		18		–
Covered loans		1,170		1,642		43		49
Total	$	7,952	$	10,821	$	1,005	$	144

(a) Substantially all loans classified as impaired at September 30, 2012 and December 31, 2011, had an associated allowance for credit losses.

Additional information on impaired loans follows:

	2012				2011
(Dollars in Millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Three months ended September 30
Commercial	$	413	$	6	$	536	$	4
Commercial real estate		1,250		12		1,558		6
Residential mortgages		2,752		31		2,573		24
Credit card		495		6		492		4
Other retail		354		3		165		1
Total impaired loans, excluding GNMA and covered loans		5,264		58		5,324		39
Loans purchased from GNMA mortgage pools		1,492		20		710		10
Covered loans		883		7		1,145		7
Total	$	7,639	$	85	$	7,179	$	56
Nine months ended September 30
Commercial	$	496	$	11	$	529	$	7
Commercial real estate		1,371		29		1,519		10
Residential mortgages		2,692		87		2,540		74
Credit card		529		22		471		10
Other retail		259		7		160		3
Total impaired loans, excluding GNMA and covered loans		5,347		156		5,219		104
Loans purchased from GNMA mortgage pools		1,363		51		433		19
Covered loans		1,042		20		584		34
Total	$	7,752	$	227	$	6,236	$	157

Troubled Debt Restructurings In certain circumstances, the Company may modify the terms of a loan to maximize the collection of amounts due when a borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term. Concessionary modifications are classified as TDRs unless the modification results in only an insignificant delay in payments to be received. The Company recognizes interest on TDRs if the borrower complies with the revised terms and conditions as agreed upon with the Company and has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles. To the extent a previous restructuring was insignificant, the Company considers the cumulative effect of past restructurings related to the receivable when determining whether a current restructuring is a TDR. Loans classified as TDRs are considered impaired loans for reporting and measurement purposes.

The following table provides a summary of loans modified as TDRs during the periods presented, by portfolio class:

	2012						2011
(Dollars in Millions)	Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance		Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance
Three months ended September 30
Commercial		1,754	$	54	$	58		1,137	$	89	$	74
Commercial real estate		63		91		80		115		124		115
Residential mortgages		2,717		344		336		748		155		156
Credit card		14,137		52		67		14,942		78		77
Other retail		6,231		159		156		956		15		16
Total loans, excluding GNMA and covered loans		24,902		700		697		17,898		461		438
Loans purchased from GNMA mortgage pools		4,859		660		589		2,110		291		312
Covered loans		73		49		46		67		148		133
Total loans		29,834	$	1,409	$	1,332		20,075	$	900	$	883
Nine months ended September 30
Commercial		4,081	$	215	$	195		3,984	$	337	$	310
Commercial real estate		245		416		390		380		906		896
Residential mortgages		3,788		529		517		2,571		515		512
Credit card		39,040		189		203		41,610		239		238
Other retail		8,028		194		191		3,020		55		55
Total loans, excluding GNMA and covered loans		55,182		1,543		1,496		51,565		2,052		2,011
Loans purchased from GNMA mortgage pools		8,436		1,116		1,087		6,042		813		871
Covered loans		166		246		234		233		456		430
Total loans		63,784	$	2,905	$	2,817		57,840	$	3,321	$	3,312

Residential mortgages, home equity and second mortgages, and loans purchased from GNMA mortgage pools TDRs in the table above include trial period arrangements offered to customers during the periods presented. The post-modification balances for these loans reflect the current outstanding balance until a permanent modification is made. In addition, the post-modification balances typically include capitalization of unpaid accrued interest and/or fees under the various modification programs. At September 30, 2012, 250 residential mortgages, 29 home equity and second mortgage loans and 2,180 loans purchased from GNMA mortgage pools with outstanding balances of $43 million, $2 million and $263 million, respectively, were in a trial period and have estimated post-modification balances of $44 million, $2 million, and $271 million, respectively, assuming permanent modification occurs at the end of the trial period.

Many of the Company’s TDRs are determined on a case-by-case basis in connection with ongoing loan collection processes. However, the Company has also implemented certain restructuring programs that may result in TDRs.

For the commercial lending segment, modifications generally result in the Company working with borrowers on a case-by-case basis. Commercial and commercial real estate modifications generally include extensions of the maturity date and may be accompanied by an increase or decrease to the interest rate, which may not be deemed a market rate of interest. In addition, the Company may work with the borrower in identifying other changes that mitigate loss to the Company, which may include additional collateral or guarantees to support the loan. To a lesser extent, the Company may waive contractual principal. The Company classifies these concessions as TDRs to the extent the Company determines that the borrower is experiencing financial difficulty.

Modifications for the consumer lending segment are generally part of programs the Company has initiated. The Company participates in the U.S. Department of Treasury Home Affordable Modification Program (“HAMP”). HAMP gives qualifying homeowners an opportunity to permanently modify residential mortgage loans and achieve more affordable monthly payments, with the U.S. Department of Treasury compensating the Company for a portion of the reduction in monthly amounts due from borrowers participating in this program. The Company also modifies residential mortgage loans under Federal Housing Administration, Department of Veterans Affairs, or other internal programs. Under these programs, the Company provides concessions to qualifying borrowers experiencing financial difficulties. The concessions may include adjustments to interest rates, conversion of adjustable rates to fixed rates, extension of maturity dates or deferrals of payments, capitalization of accrued interest and/or outstanding advances, or in limited situations, partial forgiveness of loan principal. In most instances, participation in residential mortgage loan restructuring programs requires the customer to complete a short-term trial period. A permanent loan modification is contingent on the customer successfully completing the trial period arrangement and the loan documents are not modified until that time. The Company reports loans in a trial period arrangement as TDRs.

Credit card and other retail loan modifications are generally part of two distinct restructuring programs. The Company offers workout programs providing customers experiencing financial difficulty with modifications whereby balances may be amortized up to 60 months, and generally include waiver of fees and reduced interest rates. The Company also provides modification programs to qualifying customers experiencing a temporary financial hardship in which reductions are made to monthly required minimum payments for up to 12 months. Balances related to these programs are generally frozen, however, accounts may be reopened upon successful exit of the program, in which account privileges may be restored. In addition, the Company considers secured loans to consumer borrowers that have debt discharged through bankruptcy where the borrower has not reaffirmed the debt to be TDRs.

Modifications to loans in the covered segment are similar in nature to that described above for non-covered loans, and the evaluation and determination of TDR status is similar, except that acquired loans restructured after acquisition are not considered TDRs for purposes of the Company’s accounting and disclosure if the loans evidenced credit deterioration as of the acquisition date and are accounted for in pools. Losses associated with the modification on covered loans, including the economic impact of interest rate reductions, are generally eligible for reimbursement under loss sharing agreements with the FDIC.

The following table provides a summary of TDR loans that defaulted (fully or partially charged-off or became 90 days or more past due) during the periods presented that were modified as TDRs within 12 months previous to default.

	2012				2011
(Dollars in Millions)	Number of Loans		Amount Defaulted		Number of Loans		Amount Defaulted
Three months ended September 30
Commercial		195	$	2		245	$	13
Commercial real estate		13		12		29		32
Residential mortgages		116		30		96		20
Credit card		2,536		14		1,803		9
Other retail		189		4		141		2
Total loans, excluding GNMA and covered loans		3,049		62		2,314		76
Loans purchased from GNMA mortgage pools		248		34		222		31
Covered loans		8		3		–		–
Total loans		3,305	$	99		2,536	$	107
Nine months ended September 30
Commercial		652	$	33		513	$	23
Commercial real estate		96		176		37		37
Residential mortgages		427		64		536		112
Credit card		7,452		42		5,366		27
Other retail		531		8		397		9
Total loans, excluding GNMA and covered loans		9,158		323		6,849		208
Loans purchased from GNMA mortgage pools		731		106		475		66
Covered loans		49		90		–		–
Total loans		9,938	$	519		7,324	$	274

In addition to the defaults in the table above, during the three months ended September 30, 2012, the Company had 309 residential mortgage loans, home equity and second mortgage loans, and loans purchased from GNMA mortgage pools with aggregate outstanding balances of $50 million where borrowers did not successfully complete the trial period arrangement and therefore are no longer eligible for a permanent modification under the applicable modification program.

Covered assets represent loans and other assets acquired from the FDIC, subject to loss sharing agreements, and include expected reimbursements from the FDIC. The carrying amount of the covered assets consisted of purchased impaired loans, purchased nonimpaired loans, and other assets as shown in the following table:

	September 30, 2012								December 31, 2011
(Dollars in Millions)	Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total		Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total
Commercial loans	$	15	$	144	$	–	$	159	$	68	$	137	$	–	$	205
Commercial real estate loans		1,519		3,104		–		4,623		1,956		4,037		–		5,993
Residential mortgage loans		3,850		1,184		–		5,034		3,830		1,360		–		5,190
Credit card loans		–		5		–		5		–		6		–		6
Other retail loans		–		798		–		798		–		867		–		867
Losses reimbursable by the FDIC (a)		–		–		1,539		1,539		–		–		2,526		2,526
Covered loans		5,384		5,235		1,539		12,158		5,854		6,407		2,526		14,787
Foreclosed real estate		–		–		198		198		–		–		274		274
Total covered assets	$	5,384	$	5,235	$	1,737	$	12,356	$	5,854	$	6,407	$	2,800	$	15,061

(a) Relates to loss sharing agreements with remaining terms from 2 to 7 years.

In October 2012, the Financial Accounting Standards Board issued accounting guidance, effective January 1, 2013, applicable to indemnification assets related to FDIC loss-sharing agreements. The guidance requires any reduction in the FDIC indemnification assets resulting from increases in expected cash flows of the covered assets, when there are no previous valuation allowances to reverse, to be amortized over the shorter of the remaining contractual term of the indemnification agreements or the remaining life of the covered assets. Currently, the Company amortizes these changes over the expected life of the covered assets. The Company is currently assessing the impact that this guidance will have on its financial statements.

At September 30, 2012, $93 million of the purchased impaired loans included in covered loans were classified as nonperforming assets, compared with $189 million at December 31, 2011, because the expected cash flows are primarily based on the liquidation of underlying collateral and the timing and amount of the cash flows could not be reasonably estimated. Interest income is recognized on other purchased impaired loans through accretion of the difference between the carrying amount of those loans and their expected cash flows. The initial determination of the fair value of the purchased loans includes the impact of expected credit losses and, therefore, no allowance for credit losses is recorded at the purchase date. To the extent credit deterioration occurs after the date of acquisition, the Company records an allowance for credit losses.

Net gains on the sale of loans of $419 million and $74 million for the three months ended September 30, 2012 and 2011, respectively, and $998 million and $340 million for the nine months ended September 30, 2012 and 2011, respectively, were included in noninterest income, primarily in mortgage banking revenue.

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Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Variable Interest Entity [Line Items]
Realized federal and state income tax credits on investments	$ 227,000,000	$ 191,000,000	$ 581,000,000	$ 510,000,000
Amortization expense recorded in tax expense on tax-advantaged investments	123,000,000	60,000,000	316,000,000	175,000,000
Amortization expense recognized in other noninterest expense on tax-advantaged investments	140,000,000	144,000,000	361,000,000	386,000,000
Assets related to community development and tax-advantaged investment entities VIEs	6,700,000,000		6,700,000,000		5,600,000,000
Liabilities related to community development and tax-advantaged investment entities VIEs	4,800,000,000		4,800,000,000		4,000,000,000
Held-to-maturity investment securities related to the conduit, in balance sheet	151,000,000		151,000,000		202,000,000
Available-for-sale securities related to the tender option bond program	5,300,000,000		5,300,000,000		5,400,000,000
Short-term borrowings related to tender option bond program	5,000,000,000		5,000,000,000		5,300,000,000
Investment in an unconsolidated VIE of bottom of range	1,000,000		1,000,000		1,000,000
Investment in an unconsolidated VIE of top of range	44,000,000		44,000,000		37,000,000
Aggregate amount of investments in unconsolidated VIEs	1,700,000,000		1,700,000,000		1,800,000,000
Unfunded capital commitments related to unconsolidated VIEs	1,100,000,000		1,100,000,000		965,000,000
Company's maximum exposure to unconsolidated VIEs, including any tax implications	5,000,000,000		5,000,000,000		4,800,000,000
Company's maximum exposure to loss related to community development tax-advantaged investments	1,700,000,000		1,700,000,000		1,800,000,000
Company's maximum exposure previously recorded tax credits	$ 3,200,000,000		$ 3,200,000,000		$ 3,000,000,000

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Adjusted Carrying Values for Assets Measured at Fair Value on Nonrecurring Basis (Detail) (Fair Value, Measurements, Nonrecurring, USD $) In Millions, unless otherwise specified	Sep. 30, 2012		Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans	$ 138	[1]	$ 168	[1]
Other assets	204	[2]	310	[2]
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans		[1]
Other assets		[2]
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans		[1]
Other assets		[2]
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans	138	[1]	168	[1]
Other assets	$ 204	[2]	$ 310	[2]

[1] Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off.

[2] Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition.

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Income Taxes - Additional Information (Detail) (USD $) In Billions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Federal statutory rate	35.00%	35.00%	35.00%	35.00%
Net deferred tax liability	$ (1.6)		$ (1.6)		$ (1.1)

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2012

Components of Earnings Per Share

The components of earnings per share were:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars and Shares in Millions, Except Per Share Data)	2012			2011			2012			2011
Net income attributable to U.S. Bancorp	$	1,474		$	1,273		$	4,227		$	3,522
Preferred dividends		(64	)		(30	)		(174	)		(99	)
Earnings allocated to participating stock awards		(6	)		(6	)		(19	)		(16	)
Net income applicable to U.S. Bancorp common shareholders	$	1,404		$	1,237		$	4,034		$	3,407
Average common shares outstanding		1,886			1,915			1,892			1,918
Net effect of the exercise and assumed purchase of stock awards and conversion of outstanding convertible notes		11			7			9			8
Average diluted common shares outstanding		1,897			1,922			1,901			1,926
Earnings per common share	$	.74		$	.65		$	2.13		$	1.78
Diluted earnings per common share	$	.74		$	.64		$	2.12		$	1.77

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Summary of Effective Portion of Gains (Losses) Recognized in Other Comprehensive Income (Loss) and Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2012		Sep. 30, 2011		Sep. 30, 2012		Sep. 30, 2011
Cash flow hedges | Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	$ (19)	[1]	$ (120)	[1]	$ (42)	[1]	$ (199)	[1]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(33)	[1]	(34)	[1]	(98)	[1]	(103)	[1]
Net investment hedges | Foreign exchange forward contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net			(57)		(6)		(104)
Net investment hedges | Non-derivative debt instruments
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	$ (11)				$ 26

[1] Gains (Losses) reclassified from other comprehensive income (loss) into interest income on loans and interest expense on long-term debt.

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Investment Securities Available For Sale Securities (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012		Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 38,520	[1]	$ 51,356	[1]
Unrealized Gains	1,345	[1]	1,272	[1]
Unrealized Losses Other-than-Temporary	(86)	[1],[2]	(318)	[1],[2]
Unrealized Losses Other	(143)	[1],[3]	(373)	[1],[3]
Fair Value	39,636	[1],[4]	51,937	[1],[4]
U.S. Treasury and Agencies
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	728	[1]	1,045	[1]
Unrealized Gains	15	[1]	13	[1]
Unrealized Losses Other			(1)	[1],[3]
Fair Value	743	[1]	1,057	[1]
Collateralized debt/loan obligation asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	33	[1]	180	[1]
Unrealized Gains	9	[1]	31	[1]
Unrealized Losses Other-than-Temporary			(3)	[1],[2]
Unrealized Losses Other			(2)	[1],[3]
Fair Value	42	[1]	206	[1]
Asset Backed Securities Other
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	585	[1]	694	[1]
Unrealized Gains	14	[1]	16	[1]
Unrealized Losses Other-than-Temporary			(5)	[1],[2]
Unrealized Losses Other	(1)	[1],[3]	(24)	[1],[3]
Fair Value	598	[1]	681	[1]
Obligations of state and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	6,085	[1]	6,394	[1]
Unrealized Gains	372	[1]	167	[1]
Unrealized Losses Other			(22)	[1],[3]
Fair Value	6,457	[1]	6,539	[1]
Obligations of Foreign Governments
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	6	[1]	6	[1]
Fair Value	6	[1]	6	[1]
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	813	[1]	1,000	[1]
Unrealized Gains	2	[1]	1	[1]
Unrealized Losses Other	(106)	[1],[3]	(174)	[1],[3]
Fair Value	709	[1]	827	[1]
Perpetual preferred securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	268	[1]	379	[1]
Unrealized Gains	29	[1]	25	[1]
Unrealized Losses Other	(19)	[1],[3]	(86)	[1],[3]
Fair Value	278	[1]	318	[1]
Other Investment [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	248	[1]	188	[1]
Unrealized Gains	20	[1]	15	[1]
Unrealized Losses Other			(1)	[1],[3]
Fair Value	268	[1]	202	[1]
Residential Agency | Residential
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	28,494	[1]	39,337	[1]
Unrealized Gains	874	[1]	981	[1]
Unrealized Losses Other	(6)	[1],[3]	(4)	[1],[3]
Fair Value	29,362	[1]	40,314	[1]
Residential non-agency prime | Residential
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	679	[1],[5]	911	[1],[5]
Unrealized Gains			5	[1],[5]
Unrealized Losses Other-than-Temporary	(38)	[1],[2],[5]	(63)	[1],[2],[5]
Unrealized Losses Other	(10)	[1],[3],[5]	(50)	[1],[3],[5]
Fair Value	631	[1],[5]	803	[1],[5]
Residential non-agency non-prime | Residential
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	388	[1],[6]	1,047	[1],[6]
Unrealized Gains	1	[1],[6]	9	[1],[6]
Unrealized Losses Other-than-Temporary	(48)	[1],[2],[6]	(247)	[1],[2],[6]
Unrealized Losses Other	(1)	[1],[3],[6]	(7)	[1],[3],[6]
Fair Value	340	[1],[6]	802	[1],[6]
Commercial Agency | Commercial Mortgage-Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	193	[1]	133	[1]
Unrealized Gains	9	[1]	7	[1]
Fair Value	202	[1]	140	[1]
Non-agency | Commercial Mortgage-Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost			42	[1]
Unrealized Gains			2	[1]
Unrealized Losses Other			(2)	[1],[3]
Fair Value			$ 42	[1]

[1] Available-for-sale investment securities are carried at fair value with unrealized net gains or losses reported within accumulated other comprehensive income (loss) in shareholders' equity.

[2] Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired.

[3] Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired.

[4] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.

[5] Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, loan type, prevalence of low documentation loans) and deal performance (such as pool delinquencies and security market spreads). When the Company determines the designation, prime securities typically have a weighted average credit score of 725 or higher and a loan-to-value of 80 percent or lower; however, other pool characteristics may result in designations that deviate from these credit score and loan-to-value thresholds.

[6] Includes all securities not meeting the conditions to be designated as prime.

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Subsequent Events

9 Months Ended

Sep. 30, 2012

Subsequent Events

Note 13 Subsequent Events

The Company has evaluated the impact of events that have occurred subsequent to September 30, 2012 through the date the consolidated financial statements were filed with the United States Securities and Exchange Commission. Based on this evaluation, the Company has determined none of these events were required to be recognized or disclosed in the consolidated financial statements and related notes.