10-Q

  ³

Form 10-Q/September 30, 2013                                  

                                

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, 2013

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, 2013 1,826,304,944 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	33
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	23
d) Operational Risk Management	23
e) Interest Rate Risk Management	23
f) Market Risk Management	24
g) Liquidity Risk Management	25
h) Capital Management	27
3) Line of Business Financial Review	28
4) Financial Statements (Item 1)	36
Part II — Other Information
1) Legal Proceedings (Item 1)	82
2) Risk Factors (Item 1A)	82
3) Unregistered Sales of Equity Securities and Use of Proceeds (Item 2)	82
4) Exhibits (Item 6)	82
5) Signature	83
6) Exhibits	84

“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 hereof. 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 recently enacted and future legislation and regulation. U.S. Bancorp’s results could also be adversely affected by 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, 2012, 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. However, factors other than these also could adversely affect U.S. Bancorp’s results, and the reader should not consider these factors to be a complete set of all potential risks or uncertainties. Forward-looking statements speak only as of the date hereof, 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)	2013			2012			Percent Change			2013			2012			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis) (a)	$	2,714		$	2,783			(2.5	)%	$	8,095		$	8,186			(1.1	)%
Noninterest income		2,180			2,395			(9.0	)		6,610			7,008			(5.7	)
Securities gains (losses), net		(3	)		1			*			8			(18	)		*
Total net revenue		4,891			5,179			(5.6	)		14,713			15,176			(3.1	)
Noninterest expense		2,565			2,609			(1.7	)		7,592			7,770			(2.3	)
Provision for credit losses		298			488			(38.9	)		1,063			1,439			(26.1	)
Income before taxes		2,028			2,082			(2.6	)		6,058			5,967			1.5
Taxable-equivalent adjustment		56			57			(1.8	)		168			168			–
Applicable income taxes		542			593			(8.6	)		1,629			1,684			(3.3	)
Net income		1,430			1,432			(.1	)		4,261			4,115			3.5
Net (income) loss attributable to noncontrolling interests		38			42			(9.5	)		119			112			6.3
Net income attributable to U.S. Bancorp	$	1,468		$	1,474			(.4	)	$	4,380		$	4,227			3.6
Net income applicable to U.S. Bancorp common shareholders	$	1,400		$	1,404			(.3	)	$	4,163		$	4,034			3.2
Per Common Share
Earnings per share	$	.76		$	.74			2.7	%	$	2.26		$	2.13			6.1	%
Diluted earnings per share		.76			.74			2.7			2.25			2.12			6.1
Dividends declared per share		.230			.195			17.9			.655			.585			12.0
Book value per share		19.31			18.03			7.1
Market value per share		36.58			34.30			6.6
Average common shares outstanding		1,832			1,886			(2.9	)		1,844			1,892			(2.5	)
Average diluted common shares outstanding		1,843			1,897			(2.8	)		1,854			1,901			(2.5	)
Financial Ratios
Return on average assets		1.65	%		1.70	%					1.67	%		1.66	%
Return on average common equity		15.8			16.5						16.0			16.4
Net interest margin (taxable-equivalent basis) (a)		3.43			3.59						3.45			3.59
Efficiency ratio (b)		52.4			50.4						51.6			51.1
Net charge-offs as a percent of average loans outstanding		.57			.99						.68			1.02
Average Balances
Loans	$	229,362		$	216,928			5.7	%	$	225,682		$	213,731			5.6	%
Loans held for sale		4,965			8,432			(41.1	)		6,659			7,557			(11.9	)
Investment securities (c)		74,988			72,454			3.5			74,303			72,371			2.7
Earning assets		315,060			308,959			2.0			313,663			304,269			3.1
Assets		352,161			345,653			1.9			351,048			340,807			3.0
Noninterest-bearing deposits		68,264			68,127			.2			67,183			65,423			2.7
Deposits		252,368			239,281			5.5			248,284			232,978			6.6
Short-term borrowings		27,495			27,843			(1.2	)		27,736			28,942			(4.2	)
Long-term debt		19,226			27,112			(29.1	)		21,968			29,388			(25.2	)
Total U.S. Bancorp shareholders’ equity		39,936			38,619			3.4			39,675			37,105			6.9
	September 30,     2013			December 31, 2012
Period End Balances
Loans	$	231,379		$	223,329			3.6	%
Investment securities		76,211			74,528			2.3
Assets		360,681			353,855			1.9
Deposits		261,716			249,183			5.0
Long-term debt		18,750			25,516			(26.5	)
Total U.S. Bancorp shareholders’ equity		40,132			38,998			2.9
Asset Quality
Nonperforming assets	$	2,212		$	2,671			(17.2	)
Allowance for credit losses		4,578			4,733			(3.3	)
Allowance for credit losses as a percentage of period-end loans		1.98	%		2.12	%
Capital Ratios
Tier 1 capital		11.2	%		10.8	%
Total risk-based capital		13.3			13.1
Leverage		9.6			9.2
Tangible common equity to tangible assets (d)		7.4			7.2
Tangible common equity to risk-weighted assets using Basel I definition (d)		8.9			8.6
Tier 1 common equity to risk-weighted assets using Basel I definition (d)		9.3			9.0
Common equity tier 1 to risk-weighted assets estimated using the Basel III capital regulations released by the Federal Reserve Board in July 2013 (d)		8.6			–
Common equity tier 1 to risk-weighted assets approximated using proposed rules for the Basel III standardized approach released June 2012 (d)		–			8.1

* 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 beginning on page 33.

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 2013, or $.76 per diluted common share, compared with $1.5 billion, or $.74 per diluted common share for the third quarter of 2012. Return on average assets and return on average common equity were 1.65 percent and 15.8 percent, respectively, for the third quarter of 2013, compared with 1.70 percent and 16.5 percent, respectively, for the third quarter of 2012. The provision for credit losses was $30 million lower than net charge-offs for the third quarter of 2013, compared with $50 million lower than net charge-offs for the third quarter of 2012.

Total net revenue, on a taxable-equivalent basis, for the third quarter of 2013 was $288 million (5.6 percent) lower than the third quarter of 2012, reflecting a 2.5 percent decrease in net interest income and a 9.1 percent decrease in noninterest income. The decrease in net interest income from a year ago was the result of an increase in average earning assets, offset by a decrease in the net interest margin. Noninterest income decreased from a year ago, primarily due to lower mortgage banking revenue.

Noninterest expense in the third quarter of 2013 was $44 million (1.7 percent) lower than the third quarter of 2012, primarily due to a reduction in mortgage servicing review-related professional services expense and lower compensation expense, partially offset by higher employee benefits expense.

The provision for credit losses for the third quarter of 2013 of $298 million was $190 million (38.9 percent) lower than the third quarter of 2012. Net charge-offs in the third quarter of 2013 were $328 million, compared with $538 million in the third quarter of 2012. 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.

Net income attributable to U.S. Bancorp for the first nine months of 2013 was $4.4 billion, or $2.25 per

diluted common share, compared with $4.2 billion, or $2.12 per diluted common share for the first nine months of 2012. Return on average assets and return on average common equity were 1.67 percent and 16.0 percent, respectively, for the first nine months of 2013, compared with 1.66 percent and 16.4 percent, respectively, for the first nine months of 2012. The provision for credit losses was $90 million lower than net charge-offs for the first nine months of 2013, compared with $190 million lower than net charge-offs for the first nine months of 2012.

Total net revenue, on a taxable-equivalent basis, for the first nine months of 2013 was $463 million (3.1 percent) lower than the first nine months of 2012, reflecting a 1.1 percent decrease in net interest income and a 5.3 percent decrease in noninterest income. The decrease in net interest income from the prior year was the result of an increase in average earning assets, offset by a decrease in the net interest margin. Noninterest income decreased from the prior year, primarily due to lower mortgage banking revenue and other revenue, partially offset by increases in trust and investment management fees, payments-related revenue and investment products fees, and a favorable change in net securities gains (losses).

Noninterest expense for the first nine months of 2013 was $178 million (2.3 percent) lower than the first nine months of 2012, reflecting lower professional services expense, the impact of a 2012 accrual for the Company’s portion of an indemnification obligation associated with Visa Inc. litigation matters (“Visa accrual”) and decreases in insurance-related costs and other expenses, partially offset by higher employee benefits expense.

The provision for credit losses of $1.1 billion for the first nine months of 2013 was $376 million (26.1 percent) lower than the first nine months of 2012. Net charge-offs in the first nine months of 2013 were $1.2 billion, compared with $1.6 billion in the first nine months of 2012. 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.

U. S. Bancorp 3

STATEMENT OF INCOME ANALYSIS

Net Interest Income Net interest income, on a taxable-equivalent basis, was $2.7 billion in the third quarter and $8.1 billion in the first nine months of 2013, representing decreases of $69 million (2.5 percent) and $91 million (1.1 percent), respectively, compared with the same periods of 2012. The decreases were the result of lower net interest margin, partially offset by higher average earning assets. The net interest margin in the third quarter and first nine months of 2013 was 3.43 percent and 3.45 percent, respectively, compared with 3.59 percent in both the third quarter and first nine months of 2012. The decreases in the net interest margin primarily reflected lower rates on investment securities and loans, partially offset by lower rates on deposits and a reduction in higher cost long-term debt. Average earning assets increased $6.1 billion (2.0 percent) in the third quarter and $9.4 billion (3.1 percent) in the first nine months of 2013, compared with the same periods of 2012, driven by increases in loans and investment securities, partially offset by decreases in loans held for sale and in other earning assets, primarily due to the deconsolidation of certain consolidated variable interest entities (“VIEs”) in the second quarter of 2013. 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 2013 were $12.4 billion (5.7 percent) and $12.0 billion (5.6 percent) higher, respectively, than the same periods of 2012, driven by growth in residential mortgages, commercial loans and commercial real estate loans. These increases were driven by higher demand for loans from new and existing customers. The increases were partially offset by declines in other retail loans and loans covered by loss sharing agreements with the Federal Deposit Insurance Corporation (“FDIC”). Average loans acquired in FDIC-assisted transactions that are covered by loss sharing agreements with the

FDIC (“covered” loans) decreased $2.9 billion (22.7 percent) in the third quarter and $3.2 billion (23.8 percent) in the first nine months of 2013, compared with the same periods of 2012, respectively.

Average investment securities in the third quarter and first nine months of 2013 were $2.5 billion (3.5 percent) and $1.9 billion (2.7 percent) higher, respectively, than the same periods of 2012, primarily due to purchases of U.S. government agency-backed securities, net of prepayments and maturities.

Average total deposits for the third quarter and first nine months of 2013 were $13.1 billion (5.5 percent) and $15.3 billion (6.6 percent) higher, respectively, than the same periods of 2012. Average noninterest-bearing deposits for the third quarter of 2013 were relatively stable with an increase of $137 million (.2 percent) over the third quarter of 2012. Average noninterest-bearing deposits for the first nine months of 2013 were $1.8 billion (2.7 percent) higher than the same period of 2012, driven by growth in Consumer and Small Business Banking balances. Average total savings deposits for the third quarter and first nine months of 2013 were $15.8 billion (13.1 percent) and $14.1 billion (11.7 percent) higher, respectively, than the same periods of 2012, the result of growth in Consumer and Small Business Banking, Wholesale and Commercial Real Estate, and corporate trust balances. Average time certificates of deposit less than $100,000 for the third quarter and first nine months of 2013 were $1.9 billion (13.0 percent) and $1.6 billion (11.0 percent) lower, respectively, than the same periods of 2012, due to maturities. Average time deposits greater than $100,000 were $1.0 billion (2.8 percent) lower in the third quarter and $1.1 billion (3.3 percent) higher in the first nine months of 2013, compared with the same periods of 2012, respectively. Time deposits greater than $100,000 are managed as an alternative to other funding sources such as wholesale borrowing, based largely on relative pricing.

4 U. S. Bancorp

Table 2 Noninterest Income

	Three Months Ended September 30,								Nine Months Ended September 30,
(Dollars in Millions)	2013			2012		Percent Change			2013		2012			Percent Change
Credit and debit card revenue	$	244		$	213		14.6	%	$	702	$	650			8.0	%
Corporate payment products revenue		192			201		(4.5	)		540		566			(4.6	)
Merchant processing services		371			345		7.5			1,091		1,041			4.8
ATM processing services		83			87		(4.6	)		248		263			(5.7	)
Trust and investment management fees		280			265		5.7			842		779			8.1
Deposit service charges		180			174		3.4			493		483			2.1
Treasury management fees		134			135		(.7	)		408		411			(.7	)
Commercial products revenue		207			225		(8.0	)		616		652			(5.5	)
Mortgage banking revenue		328			519		(36.8	)		1,125		1,461			(23.0	)
Investment products fees		46			38		21.1			133		111			19.8
Securities gains (losses), net		(3	)		1		*			8		(18	)		*
Other		115			193		(40.4	)		412		591			(30.3	)
Total noninterest income	$	2,177		$	2,396		(9.1	)%	$	6,618	$	6,990			(5.3	)%

* Not meaningful.

Provision for Credit Losses The provision for credit losses for the third quarter and first nine months of 2013 decreased $190 million (38.9 percent) and $376 million (26.1 percent), respectively, from the same periods of 2012. Net charge-offs decreased $210 million (39.0 percent) and $476 million (29.2 percent) in the third quarter and first nine months of 2013, respectively, compared with the same periods of 2012, principally due to improvement in the commercial, commercial real estate, residential mortgages and home equity and second mortgages portfolios. The provision for credit losses was lower than net charge-offs by $30 million in the third quarter and $90 million in the first nine months of 2013, compared with $50 million in the third quarter and $190 million in the first nine months of 2012. 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 was $2.2 billion in the third quarter and $6.6 billion in the first nine months of 2013, reflecting decreases of $219 million (9.1 percent) and $372 million (5.3 percent), respectively, compared with the same periods of 2012. The decreases from a year ago were principally due to lower mortgage banking revenue due to lower origination and sales revenue, partially offset by higher servicing income and favorable changes in the valuation of mortgage servicing rights (“MSRs”), net of hedging

activities. Growth in several fee categories partially offset the decline in mortgage banking revenue. Credit and debit card revenue increased over the prior year due to higher transaction volumes, including the impact of business expansion. Merchant processing services revenue was higher as a result of higher volumes and an increase in fee-based product revenue. Trust and investment management fees increased, reflecting improved market conditions and business expansion, while investment products fees increased due to higher sales volumes and fees. In addition, net securities gains (losses) for the first nine months of 2013 reflected a favorable variance, as compared with the same period of the prior year, as the Company recognized impairment on certain money center bank securities during the second quarter of 2012 following rating agency downgrades. Offsetting these positive variances were declines in corporate payment products revenue due to lower government-related transactions, and ATM processing services revenue due to lower volumes. Commercial products revenue was also lower, primarily driven by lower standby letters of credit fees and capital markets revenue. Other income also declined in the third quarter and first nine months of 2013, compared with the same periods of the prior year. The decline in the third quarter of 2013 was principally the result of a gain on the sale of a credit card portfolio in the third quarter 2012. The decline in the first nine months of 2013 was driven by the third quarter 2012 gain on the sale of a credit card portfolio, and lower retail lease and equity investment revenue.

U. S. Bancorp 5

Table 3 Noninterest Expense

	Three Months Ended September 30,									Nine Months Ended September 30,
(Dollars in Millions)	2013			2012			Percent Change			2013			2012			Percent Change
Compensation	$	1,088		$	1,109			(1.9	)%	$	3,268		$	3,237			1.0	%
Employee benefits		278			225			23.6			865			714			21.1
Net occupancy and equipment		240			233			3.0			709			683			3.8
Professional services		94			144			(34.7	)		263			364			(27.7	)
Marketing and business development		85			96			(11.5	)		254			285			(10.9	)
Technology and communications		214			205			4.4			639			607			5.3
Postage, printing and supplies		76			75			1.3			230			226			1.8
Other intangibles		55			67			(17.9	)		167			208			(19.7	)
Other		435			455			(4.4	)		1,197			1,446			(17.2	)
Total noninterest expense	$	2,565		$	2,609			(1.7	)%	$	7,592		$	7,770			(2.3	)%
Efficiency ratio (a)		52.4	%		50.4	%					51.6	%		51.1	%

(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 $7.6 billion in the first nine months of 2013, reflecting decreases of $44 million (1.7 percent) and $178 million (2.3 percent), respectively, compared with the same periods of 2012. The decreases in noninterest expense from a year ago were primarily due to reductions in professional services and other expense. Professional services expense was lower due to reductions in mortgage servicing review-related costs. Other expense decreased due to reductions in litigation-related expenses and lower costs related to other real estate owned and FDIC insurance expense, partially offset by higher costs related to investments in affordable housing and other tax-advantaged projects. Other expense for the first nine months of 2013 was also lower than the same period of the prior year due to lower insurance-related costs and the 2012 Visa accrual. In addition, marketing and business development expense decreased due to the timing of marketing programs, while other intangibles expense decreased due to the reduction or completion of the amortization of certain intangibles. Compensation expense decreased in the third quarter of 2013, compared with the same period of the prior year, primarily as a result of lower incentive expense. Compensation expense increased in first nine months of 2013, compared with the same period of the prior year, primarily attributable to the growth in staffing for business initiatives and business expansion, and merit increases, partially offset by lower incentive expense. Employee benefits expense increased in the third quarter and first nine months of 2013, compared with the same periods of the prior year, principally due to higher pension and medical costs and staffing levels. In addition, net occupancy and equipment expense was higher due to business initiatives and higher rent expense and maintenance costs, while technology and communications expense increased due to business expansion and technology projects.

Income Tax Expense The provision for income taxes was $542 million (an effective rate of 27.5 percent) for the third quarter and $1.6 billion (an effective rate of 27.7 percent) for the first nine months of 2013, compared with $593 million (an effective rate of 29.3 percent) and $1.7 billion (an effective rate of 29.0 percent) for the same periods of 2012. For further information on income taxes, refer to Note 10 of the Notes to Consolidated Financial Statements.

BALANCE SHEET ANALYSIS

Loans The Company’s loan portfolio was $231.4 billion at September 30, 2013, compared with $223.3 billion at December 31, 2012, an increase of $8.1 billion (3.6 percent). The increase was driven primarily by increases in residential mortgages, commercial loans and commercial real estate loans, partially offset by lower credit card, other retail and covered loans.

Residential mortgages held in the loan portfolio increased $6.2 billion (14.0 percent) at September 30, 2013, compared with December 31, 2012, reflecting origination and refinancing activity due to the low interest rate environment during the period. Residential mortgages originated and placed in the Company’s loan portfolio are primarily well-secured jumbo mortgages and branch-originated first lien home equity loans 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 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.

6 U. S. Bancorp

Commercial loans and commercial real estate loans increased $2.7 billion (4.1 percent) and $1.7 billion (4.7 percent), respectively, at September 30, 2013, compared with December 31, 2012, reflecting higher demand from new and existing customers.

Credit card loans were essentially unchanged at September 30, 2013, compared with December 31, 2012. Other retail loans, which include retail leasing, home equity and second mortgages and other retail loans, decreased $598 million (1.3 percent) at September 30, 2013, compared with December 31, 2012. The decrease was primarily driven by lower home equity and second mortgages and student loan balances, partially offset by higher auto, retail leasing and installment loans.

Loans Held for Sale Loans held for sale, consisting primarily of residential mortgages to be sold in the secondary market, were $3.9 billion at September 30, 2013, compared with $8.0 billion at December 31, 2012. The decrease in loans held for sale was principally due to lower residential mortgage loan originations during the third quarter of 2013, as compared with the fourth quarter of 2012.

Most of the residential mortgage loans the Company originates or purchases 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.

Investment Securities Investment securities totaled $76.2 billion at September 30, 2013, compared with $74.5 billion at December 31, 2012. The $1.7 billion (2.3 percent) increase primarily reflected $2.8 billion of net investment purchases, partially offset by a $1.0 billion unfavorable change in net unrealized gains (losses) on available-for-sale investment securities. Held-to-maturity securities were $36.9 billion at September 30, 2013, compared with $34.4 billion at December 31, 2012, primarily reflecting net purchases of U.S government agency-backed securities.

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, 2013, the Company’s net unrealized gains on available-for-sale securities were $67 million, compared with $1.1 billion at December 31, 2012. The unfavorable change in net unrealized gains was primarily due to decreases in the fair value of agency mortgage-backed and state and political securities as a result of increases in interest rates. Gross unrealized losses on available-for-sale securities totaled $624 million at September 30, 2013, compared with $147 million at December 31, 2012.

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 unrealized loss, expected cash flows of underlying assets, any government or agency guarantees and market conditions. At September 30, 2013, 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 $3 million and $13 million of impairment charges in earnings during the third quarter and first nine months of 2013, respectively, on non-agency mortgage-backed securities. These impairment charges were due to changes in expected cash flows, primarily resulting from changes in voluntary prepayment and default assumptions in the underlying mortgage pools. Further adverse changes in market conditions may result in additional impairment charges in future periods. Refer to Notes 2 and 13 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, 2013 (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	$	578	$	578		.2		.95	%	$	2,112	$	2,120		.4		.98	%
Maturing after one year through five years		48		51		3.1		3.39			80		81		1.7		1.36
Maturing after five years through ten years		740		703		8.9		2.11			1,116		1,056		8.7		1.99
Maturing after ten years		201		189		12.1		1.84			60		60		11.4		1.77
Total	$	1,567	$	1,521		5.9		1.69	%	$	3,368	$	3,317		3.4		1.34	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	482	$	486		.7		1.98	%	$	23	$	23		.6		2.13	%
Maturing after one year through five years		16,679		16,697		3.8		2.17			23,127		23,060		3.6		2.17
Maturing after five years through ten years		11,086		11,126		5.9		1.90			9,496		9,331		5.6		1.75
Maturing after ten years		1,874		1,883		12.8		1.23			734		746		12.2		1.27
Total	$	30,121	$	30,192		5.1		2.01	%	$	33,380	$	33,160		4.3		2.03	%
Asset-Backed Securities (a)
Maturing in one year or less	$	–	$	–		–		7.65	%	$	–	$	–		.3		.41	%
Maturing after one year through five years		56		62		2.7		2.58			11		14		3.6		.85
Maturing after five years through ten years		562		573		6.8		2.66			5		5		6.7		.90
Maturing after ten years		–		–		17.8		5.19			2		10		21.3		.77
Total	$	618	$	635		6.4		2.66	%	$	18	$	29		6.3		.85	%
Obligations of State and Political Subdivisions (b) (c)
Maturing in one year or less	$	62	$	63		.5		6.16	%	$	–	$	–		.5		7.31	%
Maturing after one year through five years		4,810		4,930		2.9		6.73			3		3		2.2		9.29
Maturing after five years through ten years		486		477		7.0		5.81			2		2		7.4		7.74
Maturing after ten years		374		350		20.2		6.14			12		12		14.0		5.34
Total	$	5,732	$	5,820		4.3		6.61	%	$	17	$	17		11.2		6.24	%
Other Debt Securities
Maturing in one year or less	$	6	$	6		.4		1.16	%	$	4	$	4		.6		1.46	%
Maturing after one year through five years		–		–		–		–			91		91		2.3		1.15
Maturing after five years through ten years		–		–		–		–			26		14		7.1		1.01
Maturing after ten years		734		642		21.8		2.73			–		–		–		–
Total	$	740	$	648		21.6		2.71	%	$	121	$	109		3.3		1.13	%
Other Investments	$	462	$	491		14.0		2.12	%	$	–	$	–		–		–	%
Total investment securities (d)	$	39,240	$	39,307		5.5		2.70	%	$	36,904	$	36,632		4.2		1.97	%

(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 4.1 years at December 31, 2012, with a corresponding weighted-average yield of 2.93 percent. The weighted-average maturity of the held-to-maturity investment securities was 3.3 years at December 31, 2012, with a corresponding weighted-average yield of 1.94 percent. The increases in the weighted-average maturities from December 31, 2012 to September 30, 2013 related to the impact of higher interest rates on anticipated prepayments on mortgage-backed securities.

(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, 2013					December 31, 2012
(Dollars in Millions)	Amortized Cost		Percent of Total			Amortized Cost		Percent of Total
U.S. Treasury and agencies	$	4,935		6.5	%	$	4,365		5.9	%
Mortgage-backed securities		63,501		83.4			61,019		83.1
Asset-backed securities		636		.8			637		.9
Obligations of state and political subdivisions		5,749		7.6			6,079		8.3
Other debt securities and investments		1,323		1.7			1,329		1.8
Total investment securities	$	76,144		100.0	%	$	73,429		100.0	%

8 U. S. Bancorp

Deposits Total deposits were $261.7 billion at September 30, 2013, compared with $249.2 billion December 31, 2012, the result of increases in time deposits greater than $100,000, money market deposits and savings deposits, partially offset by decreases in time certificates less than $100,000, noninterest bearing deposits and interest checking balances. Time deposits greater than $100,000 increased $7.5 billion (25.8 percent) at September 30, 2013, compared with December 31, 2012. Time deposits greater than $100,000 are managed as an alternative to other funding sources such as wholesale borrowing, based largely on relative pricing. Money market balances increased $8.1 billion (15.9 percent) primarily due to higher Wholesale Banking and Commercial Real Estate and Wealth Management and Securities Services balances. Savings account balances increased $1.3 billion (4.1 percent), primarily due to continued strong participation in a savings product offered by Consumer and Small Business Banking. Time certificates less than $100,000 decreased $1.6 billion (11.4 percent) at September 30, 2013, compared with December 31, 2012, primarily due to maturities. Noninterest-bearing deposits decreased $1.8 billion (2.5 percent), primarily due to a decrease in Wealth Management and Securities Services balances, partially offset by higher Wholesale Banking and Commercial Real Estate and Consumer and

Small Business Banking balances. Interest checking balances decreased $927 million (1.8 percent) primarily due to lower broker-dealer balances, partially offset by higher Wholesale Banking and Commercial Real Estate and corporate trust 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 $26.1 billion at September 30, 2013, compared with $26.3 billion at December 31, 2012. The $.2 billion (.7 percent) decrease in short-term borrowings was primarily due to lower repurchase agreement and federal funds purchased balances, partially offset by an increase in commercial paper and other short-term borrowings. Long-term debt was $18.8 billion at September 30, 2013, compared with $25.5 billion at December 31, 2012. The $6.7 billion (26.5 percent) decrease was primarily due to a $4.5 billion decrease in long-term debt related to the deconsolidation of certain consolidated VIEs and $2.4 billion of medium-term note maturities. 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 repricing 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, 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, 2012, 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 and consumer bankruptcy filings. The Risk Management Committee of the Company’s Board of

Directors oversees the Company’s credit risk management process.

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 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 individual refreshed LTV ratios are considered in the determination of the appropriate allowance for credit losses. However, the underwriting criteria the Company employs consider the relevant income and credit characteristics of the borrower, such that the collateral is not considered 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, 2012, 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 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

10 U. S. Bancorp

covered loans. The commercial lending segment includes loans and leases made to small business, middle market, large corporate, commercial real estate, financial institution, non-profit 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, 2013, 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. Each distinct underwriting and origination activity manages unique credit risk characteristics and the Company prices its loan production commensurate with the differing risk profiles.

Residential mortgages are originated through the Company’s branches, loan production offices and a wholesale network of originators. The Company may retain residential mortgage loans it originates on its balance sheet or sell the loans into the secondary market while retaining the servicing rights and customer relationships. Utilizing the secondary markets enables the Company to effectively reduce its credit and other asset/liability risks. 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 borrower type at September 30, 2013:

Residential mortgages (Dollars in Millions)	Interest Only		Amortizing		Total		Percent of Total
Prime Borrowers
Less than or equal to 80%	$	2,157	$	34,410	$	36,567		86.6	%
Over 80% through 90%		384		2,356		2,740		6.5
Over 90% through 100%		329		994		1,323		3.1
Over 100%		511		984		1,495		3.6
No LTV available		–		84		84		.2
Total	$	3,381	$	38,828	$	42,209		100.0	%
Sub-Prime Borrowers
Less than or equal to 80%	$	2	$	637	$	639		44.6	%
Over 80% through 90%		2		234		236		16.5
Over 90% through 100%		3		213		216		15.1
Over 100%		5		337		342		23.8
No LTV available		–		–		–		–
Total	$	12	$	1,421	$	1,433		100.0	%
Other Borrowers
Less than or equal to 80%	$	11	$	425	$	436		48.1	%
Over 80% through 90%		2		206		208		22.9
Over 90% through 100%		1		78		79		8.7
Over 100%		2		182		184		20.3
No LTV available		–		–		–		–
Total	$	16	$	891	$	907		100.0	%
Loans Purchased From GNMA Mortgage Pools (a)	$	–	$	5,621	$	5,621		100.0	%
Total
Less than or equal to 80%	$	2,170	$	35,472	$	37,642		75.0	%
Over 80% through 90%		388		2,796		3,184		6.4
Over 90% through 100%		333		1,285		1,618		3.2
Over 100%		518		1,503		2,021		4.0
No LTV available		–		84		84		.2
Loans purchased from GNMA mortgage pools (a)		–		5,621		5,621		11.2
Total	$	3,409	$	46,761	$	50,170		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
Prime Borrowers
Less than or equal to 80%	$	8,857	$	567	$	9,424		63.8	%
Over 80% through 90%		2,070		253		2,323		15.7
Over 90% through 100%		1,069		151		1,220		8.3
Over 100%		1,291		267		1,558		10.5
No LTV/CLTV available		237		16		253		1.7
Total	$	13,524	$	1,254	$	14,778		100.0	%
Sub-Prime Borrowers
Less than or equal to 80%	$	44	$	30	$	74		24.2	%
Over 80% through 90%		16		26		42		13.7
Over 90% through 100%		13		38		51		16.7
Over 100%		28		111		139		45.4
No LTV/CLTV available		–		–		–		–
Total	$	101	$	205	$	306		100.0	%
Other Borrowers
Less than or equal to 80%	$	346	$	8	$	354		77.0	%
Over 80% through 90%		62		5		67		14.6
Over 90% through 100%		16		2		18		3.9
Over 100%		15		4		19		4.1
No LTV/CLTV available		2		–		2		.4
Total	$	441	$	19	$	460		100.0	%
Total
Less than or equal to 80%	$	9,247	$	605	$	9,852		63.4	%
Over 80% through 90%		2,148		284		2,432		15.7
Over 90% through 100%		1,098		191		1,289		8.3
Over 100%		1,334		382		1,716		11.0
No LTV/CLTV available		239		16		255		1.6
Total	$	14,066	$	1,478	$	15,544		100.0	%

At September 30, 2013, approximately $1.4 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 $1.6 billion at December 31, 2012. In addition to residential mortgages, at September 30, 2013, $.3 billion of home equity and second mortgage loans were to customers that may be defined as sub-prime borrowers, compared with $.4 billion at December 31, 2012. 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 .5 percent of total assets at September 30, 2013, compared with .6 percent at December 31, 2012. 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 periods from June 2009 and after 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 at loan origination 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.

Covered loans included $1.0 billion in loans with negative-amortization payment options at September 30, 2013, compared with $1.3 billion at December 31, 2012. 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 $15.5 billion at September 30, 2013, compared with $16.7 billion at December 31, 2012, and included $4.8 billion of home equity lines in a first lien position and $10.7 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, 2013, included approximately $3.8 billion of loans and lines for which the Company also serviced the related first lien loan, and approximately $6.9 billion where the Company did not service the related first lien loan. The Company was able

12 U. S. Bancorp

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

90 days or more past due excluding nonperforming loans	September 30, 2013			December 31, 2012
Commercial
Commercial		.08	%		.10	%
Lease financing		–			–
Total commercial		.07			.09
Commercial Real Estate
Commercial mortgages		.02			.02
Construction and development		.03			.02
Total commercial real estate		.02			.02
Residential Mortgages (a)		.53			.64
Credit Card		1.11			1.27
Other Retail
Retail leasing		.02			.02
Other		.18			.22
Total other retail (b)		.16			.20
Total loans, excluding covered loans		.27			.31
Covered Loans		5.47			5.86
Total loans		.48	%		.59	%

90 days or more past due including nonperforming loans	September 30, 2013			December 31, 2012
Commercial		.24	%		.27	%
Commercial real estate		.94			1.50
Residential mortgages (a)		1.99			2.14
Credit card		1.66			2.12
Other retail (b)		.60			.66
Total loans, excluding covered loans		.94			1.11
Covered loans		7.13			9.28
Total loans		1.20	%		1.52	%

(a) Delinquent loan ratios exclude $3.5 billion at September 30, 2013, and $3.2 billion at December 31, 2012, 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 9.05 percent at September 30, 2013, and 9.45 percent at December 31, 2012.

(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 ..96 percent at September 30, 2013, and 1.08 percent at December 31, 2012.

to determine the status of the related first liens using information the Company has as the servicer of the first lien 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 updated 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, 2013:

	Junior Liens Behind
(Dollars in Millions)	Company Owned or Serviced First Lien			Third Party First Lien			Total
Total	$	3,804		$	6,884		$	10,688
Percent 30–89 days past due		.51	%		.76	%		.67	%
Percent 90 days or more past due		.13	%		.15	%		.14	%
Weighted-average CLTV		79	%		77	%		77	%
Weighted-average credit score		747			741			743

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

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 $1.1 billion ($591 million excluding covered loans) at September 30, 2013, compared with $1.3 billion ($660 million excluding covered loans) at December 31, 2012. The $69 million (10.5 percent) decrease, excluding covered loans, reflected improvement in residential mortgages, credit card and other retail loan portfolios during the first nine months of 2013. These balances exclude loans purchased from Government National Mortgage Association (“GNMA”) mortgage pools whose repayments are

primarily insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. Accruing loans 90 days or more past due 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 .48 percent (.27 percent excluding covered loans) at September 30, 2013, compared with ..59 percent (.31 percent excluding covered loans) at December 31, 2012.

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, 2013		December 31, 2012		September 30, 2013			December 31, 2012
Residential Mortgages (a)
30-89 days	$	350	$	348		.70	%		.79	%
90 days or more		268		281		.53			.64
Nonperforming		732		661		1.46			1.50
Total	$	1,350	$	1,290		2.69	%		2.93	%
Credit Card
30-89 days	$	212	$	227		1.25	%		1.33	%
90 days or more		190		217		1.11			1.27
Nonperforming		94		146		.55			.85
Total	$	496	$	590		2.91	%		3.45	%
Other Retail
Retail Leasing
30-89 days	$	9	$	12		.15	%		.22	%
90 days or more		1		1		.02			.02
Nonperforming		1		1		.02			.02
Total	$	11	$	14		.19	%		.26	%
Home Equity and Second Mortgages
30-89 days	$	101	$	126		.65	%		.76	%
90 days or more		39		51		.25			.30
Nonperforming		179		189		1.15			1.13
Total	$	319	$	366		2.05	%		2.19	%
Other (b)
30-89 days	$	124	$	152		.48	%		.59	%
90 days or more		36		44		.14			.17
Nonperforming		26		27		.10			.11
Total	$	186	$	223		.72	%		.87	%

(a) Excludes $399 million of loans 30-89 days past due and $3.5 billion of loans 90 days or more past due at September 30, 2013, purchased from GNMA mortgage pools that continue to accrue interest, compared with $441 million and $3.2 billion at December 31, 2012, respectively.

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

14 U. S. Bancorp

The following tables provide further information on residential mortgages and home equity and second mortgages as a percent of ending loan balances by borrower type:

Residential mortgages (a)	September 30, 2013			December 31, 2012
Prime Borrowers
30-89 days		.56	%		.65	%
90 days or more		.46			.58
Nonperforming		1.30			1.36
Total		2.32	%		2.59	%
Sub-Prime Borrowers
30-89 days		6.91	%		6.41	%
90 days or more		4.47			3.89
Nonperforming		11.72			9.60
Total		23.10	%		19.90	%
Other Borrowers
30-89 days		1.43	%		.97	%
90 days or more		1.21			.97
Nonperforming		1.77			1.83
Total		4.41	%		3.77	%

(a) Excludes delinquent and nonperforming information on loans purchased from GNMA mortgage pools as their repayments are primarily insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.

Home equity and second mortgages	September 30, 2013			December 31, 2012
Prime Borrowers
30-89 days		.56	%		.64	%
90 days or more		.24			.28
Nonperforming		1.04			1.03
Total		1.84	%		1.95	%
Sub-Prime Borrowers
30-89 days		3.92	%		4.92	%
90 days or more		.65			1.36
Nonperforming		5.23			4.10
Total		9.80	%		10.38	%
Other Borrowers
30-89 days		1.52	%		1.41	%
90 days or more		.22			.47
Nonperforming		1.96			2.35
Total		3.70	%		4.23	%

The following table provides summary delinquency information for covered loans:

	Amount				As a Percent of Ending Loan Balances
(Dollars in Millions)	September 30, 2013		December 31, 2012		September 30, 2013			December 31, 2012
30-89 days	$	142	$	359		1.51	%		3.18	%
90 days or more		514		663		5.47			5.86
Nonperforming		156		386		1.66			3.41
Total	$	812	$	1,408		8.64	%		12.45	%

Restructured Loans 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. 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.

U. S. Bancorp 15

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 its own 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 is 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.

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, 2013 (Dollars in Millions)	Performing TDRs		30-89 Days Past Due			90 Days or More Past Due			Nonperforming TDRs			Total TDRs
Commercial	$	259		2.2	%		1.2	%	$	71	(a)	$	330
Commercial real estate		365		3.0			–			173	(b)		538
Residential mortgages		2,030		6.6			5.8			412			2,442	(d)
Credit card		241		8.5			5.6			94	(c)		335
Other retail		202		6.7			2.4			79	(c)		281	(e)
TDRs, excluding GNMA and covered loans		3,097		5.9			4.5			829			3,926
Loans purchased from GNMA mortgage pools		1,915		7.0			57.7			–			1,915	(f)
Covered loans		347		.7			9.7			66			413
Total	$	5,359		6.0	%		23.9	%	$	895		$	6,254

(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 $280 million of residential mortgage loans to borrowers that have had debt discharged through bankruptcy and $92 million in trial period arrangements.

(e) Includes $152 million of other retail loans to borrowers that have had debt discharged through bankruptcy and $2 million in trial period arrangements.

(f) Includes $376 million of Federal Housing Administration and Department of Veterans Affairs residential mortgage loans to borrowers that have had debt discharged through bankruptcy and $494 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 the required payments. The Company may also make short-term modifications to commercial lending loans, with the most common modification being an extension of the

16 U. S. Bancorp

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, 2013.

Table 6 Nonperforming Assets (a)

(Dollars in Millions)	September 30, 2013			December 31, 2012
Commercial
Commercial	$	104		$	107
Lease financing		12			16
Total commercial		116			123
Commercial Real Estate
Commercial mortgages		210			308
Construction and development		146			238
Total commercial real estate		356			546
Residential Mortgages (b)		732			661
Credit Card		94			146
Other Retail
Retail leasing		1			1
Other		205			216
Total other retail		206			217
Total nonperforming loans, excluding covered loans		1,504			1,693
Covered Loans		156			386
Total nonperforming loans		1,660			2,079
Other Real Estate (c)(d)		366			381
Covered Other Real Estate (d)		176			197
Other Assets		10			14
Total nonperforming assets	$	2,212		$	2,671
Total nonperforming assets, excluding covered assets	$	1,880		$	2,088
Excluding covered assets
Accruing loans 90 days or more past due (b)	$	591		$	660
Nonperforming loans to total loans		.68	%		.80	%
Nonperforming assets to total loans plus other real estate (c)		.85	%		.98	%
Including covered assets
Accruing loans 90 days or more past due (b)	$	1,105		$	1,323
Nonperforming loans to total loans		.72	%		.93	%
Nonperforming assets to total loans plus other real estate (c)		.95	%		1.19	%

Changes in Nonperforming Assets

(Dollars in Millions)	Commercial and Commercial Real Estate			Credit Card, Other Retail and Residential Mortgages			Covered Assets			Total
Balance December 31, 2012	$	780		$	1,308		$	583		$	2,671
Additions to nonperforming assets
New nonaccrual loans and foreclosed properties		303			813			122			1,238
Advances on loans		28			–			–			28
Total additions		331			813			122			1,266
Reductions in nonperforming assets
Paydowns, payoffs		(194	)		(231	)		(200	)		(625	)
Net sales		(156	)		(121	)		(166	)		(443	)
Return to performing status		(21	)		(136	)		(7	)		(164	)
Charge-offs (e)		(191	)		(302	)		–			(493	)
Total reductions		(562	)		(790	)		(373	)		(1,725	)
Net additions to (reductions in) nonperforming assets		(231	)		23			(251	)		(459	)
Balance September 30, 2013	$	549		$	1,331		$	332		$	2,212

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

(b) Excludes $3.5 billion and $3.2 billion at September 30, 2013, and December 31, 2012, 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 $487 million and $548 million at September 30, 2013, and December 31, 2012, 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.

U. S. Bancorp 17

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. However, interest income may be recognized for interest payments if the remaining carrying amount of the loan is believed to be collectible.

At September 30, 2013, total nonperforming assets were $2.2 billion, compared with $2.7 billion at December 31, 2012. Excluding covered assets, nonperforming assets were $1.9 billion at September 30, 2013, compared with $2.1 billion at December 31, 2012. The $208 million (10.0 percent) decrease in nonperforming assets, excluding covered assets, was primarily driven by reductions in the commercial mortgage and construction and development portfolios, as well as credit card loans. Nonperforming covered assets at September 30, 2013, were $332 million, compared with $583 million at December 31, 2012. 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 .95 percent (.85 percent excluding covered assets) at September 30, 2013, compared with 1.19 percent (.98 percent excluding covered assets) at December 31, 2012. The Company expects total nonperforming assets to remain relatively stable in the fourth quarter of 2013.

Other real estate owned, excluding covered assets, was $366 million at September 30, 2013, compared with $381 million at December 31, 2012, and was related to foreclosed properties that previously secured loan balances. Other real estate owned includes properties vacated by the borrower and maintained by the Company, regardless of whether title in the property has been transferred to the Company. These balances exclude foreclosed GNMA loans whose repayments are primarily insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.

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, 2013		December 31, 2012		September 30, 2013			December 31, 2012
Residential
Florida	$	19	$	14		1.17	%		1.55	%
Washington		17		14		.43			.38
Minnesota		17		20		.27			.34
California		17		16		.15			.18
Ohio		15		13		.46			.51
All other states		199		191		.51			.49
Total residential		284		268		.43			.44
Commercial
Missouri		14		17		.29			.37
Wisconsin		11		3		.22			.06
Arizona		9		10		.60			.83
California		8		8		.05			.05
Washington		6		7		.09			.11
All other states		34		68		.05			.10
Total commercial		82		113		.08			.11
Total	$	366	$	381		.16	%		.18	%

Analysis of Loan Net Charge-Offs Total loan net charge-offs were $328 million for the third quarter and $1.2 billion for the first nine months of 2013, compared with $538 million and $1.6 billion for the same periods of 2012. 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 2013 was .57 percent and .68 percent, respectively, compared with .99 percent and 1.02 percent for the same periods of 2012. The year-over-year decreases in total net charge-offs primarily reflected improvement in the commercial, commercial real estate, residential mortgages and home equity and second mortgages portfolios, as economic conditions continue to slowly improve. Given current economic conditions, the Company expects the level of net charge-offs to be relatively stable in the fourth quarter of 2013.

Commercial and commercial real estate loan net charge-offs for the third quarter of 2013 were $5 million (.02 percent of average loans outstanding on an annualized basis), compared with $91 million (.37 percent of average loans outstanding on an annualized basis) for the third quarter of 2012.

18 U. S. Bancorp

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Commercial
Commercial		.11	%		.41	%		.18	%		.48	%
Lease financing		(.53	)		.50			–			.71
Total commercial		.06			.42			.17			.50
Commercial Real Estate
Commercial mortgages		.03			.26			.11			.45
Construction and development		(.46	)		.33			(.59	)		1.05
Total commercial real estate		(.06	)		.27			(.01	)		.55
Residential Mortgages		.46			1.17			.63			1.16
Credit Card (a)		3.75			4.01			3.96			4.05
Other Retail
Retail leasing		.07			–			.02			.03
Home equity and second mortgages		1.09			2.04			1.45			1.71
Other		.83			1.06			.81			.95
Total other retail		.83			1.30			.94			1.13
Total loans, excluding covered loans		.58			1.04			.70			1.09
Covered Loans		.33			.06			.36			.03
Total loans		.57	%		.99	%		.68	%		1.02	%

(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 3.75 percent and 4.17 percent for the three months ended September 30, 2013 and 2012, respectively, and 3.99 percent and 4.21 percent for the nine months ended September 30, 2013 and 2012, respectively.

Commercial and commercial real estate loan net charge-offs for the first nine months of 2013 were $80 million (.10 percent of average loans outstanding on an annualized basis), compared with $372 million (.52 percent of average loans outstanding on an annualized basis) for the first nine months of 2012. The decreases reflected the impact of more stable economic conditions and a higher level of recoveries.

Residential mortgage loan net charge-offs for the third quarter of 2013 were $57 million (.46 percent of average loans outstanding on an annualized basis), compared with $121 million (1.17 percent of average loans outstanding on an annualized basis) for the third quarter of 2012. Residential mortgage loan net charge-offs for the first nine months of 2013 were $223 million (.63 percent of average loans outstanding on an annualized basis), compared with $342 million (1.16 percent of average loans outstanding on an annualized basis) for the first nine months of 2012. Credit card loan net charge-offs for the third quarter of 2013 were $160 million (3.75 percent of average loans outstanding on an annualized basis), compared with $167 million (4.01 percent of average loans outstanding on an annualized basis) for the third quarter of 2012. Credit card loan net charge-offs for the first nine months of 2013 were $493 million (3.96 percent of average loans

outstanding on an annualized basis), compared with $506 million (4.05 percent of average loans outstanding on an annualized basis) for the first nine months of 2012. Other retail loan net charge-offs for the third quarter of 2013 were $98 million (.83 percent of average loans outstanding on an annualized basis), compared with $157 million (1.30 percent of average loans outstanding on an annualized basis) for the third quarter of 2012. Other retail loan net charge-offs for the first nine months of 2013 were $329 million (.94 percent of average loans outstanding on an annualized basis), compared with $406 million (1.13 percent of average loans outstanding on an annualized basis) for the first nine months of 2012. The year-over-year decreases in total residential mortgage, credit card and other retail loan net charge-offs reflected the impact of more stable economic conditions.

U. S. Bancorp 19

The following table provides an analysis of net charge-offs as a percent of average loans outstanding for residential mortgages and home equity and second mortgages by borrower type:

	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)	2013		2012		2013			2012			2013		2012		2013			2012
Residential Mortgages
Prime borrowers	$	41,224	$	33,501		.40	%		.99	%	$	39,187	$	31,894		.55	%		1.02	%
Sub-prime borrowers		1,450		1,699		3.28			7.49			1,500		1,757		4.90			6.61
Other borrowers		903		765		.88			2.60			875		724		1.07			2.03
Loans purchased from GNMA mortgage pools (a)		5,562		5,004		.07			.08			5,493		4,953		.02			.03
Total	$	49,139	$	40,969		.46	%		1.17	%	$	47,055	$	39,328		.63	%		1.16	%
Home Equity and Second Mortgages
Prime borrowers	$	14,885	$	16,507		.99	%		1.83	%	$	15,248	$	16,780		1.29	%		1.52	%
Sub-prime borrowers		312		398		6.36			11.00			333		417		8.03			8.65
Other borrowers		451		424		.88			1.88			440		422		2.13			2.54
Total	$	15,648	$	17,329		1.09	%		2.04	%	$	16,021	$	17,619		1.45	%		1.71	%

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

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. In the migration analysis applied to risk rated loan portfolios, the Company currently uses a 12-year period of historical losses in considering actual loss experience, because it believes that period best reflects the losses incurred in the portfolio. This timeframe and the results of the analysis are evaluated quarterly to determine if they are appropriate. 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 of the loan, or the fair value of the collateral for collateral-dependent loans, rather than the migration analysis. 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, portfolio growth and historical losses, adjusted for current trends.

The allowance recorded for TDR loans and purchased impaired 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, or the prior quarter effective rate, respectively. The allowance for collateral-dependent loans in the consumer lending segment is determined based on the fair value of the collateral less costs to sell. 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, refreshed LTV ratios when possible, portfolio growth 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, 2013, the Company serviced the first lien on 36 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 $434 million or 2.8 percent of the total home equity portfolio at September 30, 2013, represented junior

20 U. S. Bancorp

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 12 months ended September 30, 2013), and the long-term average loss rate on the small percentage of loans that default has been approximately 80 percent. 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 the covered loan segment 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 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 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, when there are no reversals of previous impairment allowances, are recognized over the remaining life of the loans and resulting decreases in expected cash flows of the FDIC indemnification assets are amortized over the shorter of the remaining contractual term of the indemnification agreements or the remaining life of the loans. Refer to Note 3 of the Notes to Consolidated Financial Statements, for more 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, 2012, for further discussion on the analysis and determination of the allowance for credit losses.

At September 30, 2013, the allowance for credit losses was $4.6 billion (1.98 percent of total loans and 1.99 percent of loans excluding covered loans), compared with an allowance of $4.7 billion (2.12 percent of total loans and 2.15 percent of loans excluding covered loans) at December 31, 2012. The decrease reflected continued overall improvement in economic conditions affecting incurred losses, partially offset by growth in the loan portfolios. The ratio of the allowance for credit losses to nonperforming loans was 276 percent (294 percent excluding covered loans) at September 30, 2013, compared with 228 percent (269 percent excluding covered loans) at December 31, 2012, due to the

U. S. Bancorp 21

Table 8 Summary of Allowance for Credit Losses

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2013			2012			2013			2012
Balance at beginning of period	$	4,612		$	4,864		$	4,733		$	5,014
Charge-Offs
Commercial
Commercial		57			75			157			243
Lease financing		8			15			27			53
Total commercial		65			90			184			296
Commercial real estate
Commercial mortgages		14			33			57			123
Construction and development		3			14			19			83
Total commercial real estate		17			47			76			206
Residential mortgages		62			127			243			357
Credit card		175			186			559			585
Other retail
Retail leasing		1			3			4			7
Home equity and second mortgages		51			96			195			245
Other		70			88			213			251
Total other retail		122			187			412			503
Covered loans (a)		9			2			31			4
Total charge-offs		450			639			1,505			1,951
Recoveries
Commercial
Commercial		39			16			73			50
Lease financing		15			8			27			23
Total commercial		54			24			100			73
Commercial real estate
Commercial mortgages		12			13			32			21
Construction and development		11			9			48			36
Total commercial real estate		23			22			80			57
Residential mortgages		5			6			20			15
Credit card		15			19			66			79
Other retail
Retail leasing		–			3			3			6
Home equity and second mortgages		8			7			21			19
Other		16			20			59			72
Total other retail		24			30			83			97
Covered loans (a)		1			–			3			1
Total recoveries		122			101			352			322
Net Charge-Offs
Commercial
Commercial		18			59			84			193
Lease financing		(7	)		7			–			30
Total commercial		11			66			84			223
Commercial real estate
Commercial mortgages		2			20			25			102
Construction and development		(8	)		5			(29	)		47
Total commercial real estate		(6	)		25			(4	)		149
Residential mortgages		57			121			223			342
Credit card		160			167			493			506
Other retail
Retail leasing		1			–			1			1
Home equity and second mortgages		43			89			174			226
Other		54			68			154			179
Total other retail		98			157			329			406
Covered loans (a)		8			2			28			3
Total net charge-offs		328			538			1,153			1,629
Provision for credit losses		298			488			1,063			1,439
Other changes (b)		(4	)		(43	)		(65	)		(53	)
Balance at end of period (c)	$	4,578		$	4,771		$	4,578		$	4,771
Components
Allowance for loan losses	$	4,258		$	4,481
Liability for unfunded credit commitments		320			290
Total allowance for credit losses	$	4,578		$	4,771
Allowance for Credit Losses as a Percentage of
Period-end loans, excluding covered loans		1.99	%		2.26	%
Nonperforming loans, excluding covered loans		294			244
Nonperforming and accruing loans 90 days or more past due, excluding covered loans		211			182
Nonperforming assets, excluding covered assets		235			213
Annualized net charge-offs, excluding covered loans		348			219
Period-end loans		1.98	%		2.19	%
Nonperforming loans		276			202
Nonperforming and accruing loans 90 days or more past due		166			129
Nonperforming assets		207			168
Annualized net charge-offs		352			223

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

(b) Includes net changes in credit losses to be reimbursed by the FDIC and for the three and nine months ended September 30, 2013, reductions in the allowance for covered loans where the reversal of a previously recorded allowance was offset by an associated decrease in the indemnification asset.

(c) At September 30, 2013 and 2012, $1.7 billion and $1.8 billion, respectively, of the total allowance for credit losses related to incurred losses on credit card and other retail loans.

22 U. S. Bancorp

continued improvement in the commercial, commercial real estate and credit card portfolios. The ratio of the allowance for credit losses to annualized loan net charge-offs was 352 percent at September 30, 2013, compared with 226 percent of full year 2012 net charge-offs at December 31, 2012, 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, 2013, no significant change in the amount of residual values or concentration of the portfolios had occurred since December 31, 2012. 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, 2012, 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. 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. 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, 2012, 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 below 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, 2013 and December 31, 2012, 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, 2012, 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 4.5 percent decrease in the market value of equity at September 30, 2013, compared with a 2.5 percent decrease at December 31, 2012. A

Sensitivity of Net Interest Income

September 30, 2013

December 31, 2012

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

*

1.12%

*

1.45%

*

1.42%

*

1.90%

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

U. S. Bancorp 23

200 bps decrease, where possible given current rates, would have resulted in a 2.2 percent decrease in the market value of equity at September 30, 2013, compared with a 5.3 percent decrease at December 31, 2012. 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, 2012, 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;

• To mitigate remeasurement volatility of foreign currency denominated balances; and

• To mitigate the volatility of the Company’s investment in foreign operations driven by fluctuations in foreign currency exchange rates.

To manage these risks, the Company may enter into exchange-traded, centrally cleared 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 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, 2013, the Company had $6.2 billion of forward commitments to sell, hedging $3.1 billion of mortgage loans held for sale and $4.2 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 arrangements, and, where possible by requiring collateral arrangements. The Company may also transfer counterparty credit risk related to interest rate swaps to third parties through the use of risk participation agreements. In addition, effective in 2013, certain interest rate swaps and credit contracts are required to be centrally cleared through clearing houses to further mitigate counterparty credit risk.

For additional information on derivatives and hedging activities, refer to Notes 11 and 12 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”), within the framework of 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

24 U. S. Bancorp

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 by actual losses two to three times per year for its trading businesses. 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 average, high, low and period-end VaR amounts for the Company’s trading positions were as follows:

Nine Months Ended September 30 (Dollars in Millions)	2013		2012
Average	$	1	$	2
High		3		3
Low		1		1
Period-end		2		1

The Company did not experience any actual trading losses for its combined trading businesses that exceeded VaR by more than a negligible amount during the first nine months of 2013. 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 Company calculates Stressed VaR using the same underlying methodology and model as VaR, except that a historical continuous one-year look-back period is utilized that reflects a period of significant financial stress appropriate to the Company’s trading portfolio. The period selected by the Company includes the significant market volatility of the last four months of 2008. The average, high, low and period-end Stressed VaR amounts for the Company’s trading positions for the nine months ended September 30, 2013 were $4 million, $8 million, $2 million, and $4 million, respectively.

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 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, 2013,

were $3 million, $6 million and $1 million, respectively, compared with $4 million, $8 million and $2 million, respectively, for the nine months ended September 30, 2012. The average, high and low VaR amounts for residential mortgage loans held for sale and related hedges for the nine months ended September 30, 2013, were $2 million, $4 million and less than $1 million, respectively, compared with $2 million, $7 million and $1 million, respectively, for the nine months ended September 30, 2012.

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 activities 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, approves the Company’s liquidity policy and reviews the contingency funding plan. The ALCO reviews and approves the Company’s liquidity policy 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 Bank, unencumbered liquid assets, and capacity to borrow at the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank’s Discount Window. At September 30, 2013, the fair value of unencumbered available-for-sale and held-to-maturity investment securities totaled $60.0 billion, compared with $54.1 billion at December 31, 2012. 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

U. S. Bancorp 25

September 30, 2013, the Company could have borrowed an additional $67.2 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 $261.7 billion at September 30, 2013, compared with $249.2 billion at December 31, 2012. 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 $18.8 billion at September 30, 2013, and is an important funding source because of its multi-year borrowing structure. Short-term borrowings were $26.1 billion at September 30, 2013, 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’s 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 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, 2012, for further discussion on liquidity risk management.

At September 30, 2013, parent company long-term debt outstanding was $10.4 billion, compared with $12.8 billion at December 31, 2012. The $2.4 billion decrease was due to medium-term note maturities during the first nine months of 2013. As of September 30, 2013, there was $500 million of parent company debt scheduled to mature in the remainder of 2013.

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 subsidiary after meeting the regulatory capital requirements for well-capitalized banks was approximately $7.2 billion at September 30, 2013.

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, 2013, the Company had investments in perpetual preferred stock issued by European banks with an amortized cost totaling $70 million and unrealized losses totaling $10 million, unchanged from December 31, 2012. The Company also transacts with various European banks as counterparties to interest rate, mortgage-related and foreign currency derivatives for its hedging and customer-related activities; however, none of these banks are domiciled in the countries experiencing the most significant credit deterioration. These derivatives are subject to master netting arrangements. In addition, interest rate and foreign currency derivative transactions are subject to collateral arrangements which significantly limit the Company’s exposure to loss as they generally require daily posting of collateral. At September 30, 2013, the Company was in a net payable position to each of these European banks.

26 U. S. Bancorp

Table 9 Regulatory Capital Ratios

(Dollars in Millions)	September 30, 2013			December 31, 2012
Tier 1 capital	$	32,707		$	31,203
As a percent of risk-weighted assets		11.2	%		10.8	%
As a percent of adjusted quarterly average assets (leverage ratio)		9.6	%		9.2	%
Total risk-based capital	$	38,873		$	37,780
As a percent of risk-weighted assets		13.3	%		13.1	%

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 either directly or through banking affiliations in Europe. Operating cash for these businesses is 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, 2013, the Company had an aggregate amount on deposit with European banks of $347 million.

The money market funds managed by a subsidiary of the Company do not have any investments in European sovereign debt. Other than investments in banks in the countries of the Netherlands, France and Germany, 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 14 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 VIEs.

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, in effect at September 30, 2013 and December 31, 2012. 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 risk-weighted assets and introducing a new Tier 1 common equity ratio. In July 2013, certain U.S. banking regulators approved final regulatory capital rule enhancements, effective for the Company beginning January 1, 2014, that are largely consistent with the June 2012 proposals. The Company continues to evaluate these rules, but does not expect their impact to be material to the financial statements.

Total U.S. Bancorp shareholders’ equity was $40.1 billion at September 30, 2013, compared with $39.0 billion at December 31, 2012. The increase was primarily the result of corporate earnings, partially offset by dividends, common share repurchases and changes in unrealized gains and losses on available-for-sale investment securities included in other comprehensive

U. S. Bancorp 27

income. 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, 2012, 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 9.3 percent and 8.9 percent, respectively, at September 30, 2013, compared with 9.0 percent and 8.6 percent, respectively, at December 31, 2012. The Company’s tangible common equity divided by tangible assets was 7.4 percent at September 30, 2013, compared with 7.2 percent at December 31, 2012. The Company’s estimated common equity tier 1 to risk-weighted assets ratio using the Basel III capital regulations released by the Federal Reserve Board in July 2013, was 8.6 percent at September 30, 2013. Refer to “Non-GAAP Financial Measures” for further information regarding the calculation of these ratios.

On March 14, 2013, the Company announced its Board of Directors had approved a one-year authorization to repurchase up to $2.25 billion of its common stock, from April 1, 2013 through March 31, 2014.

The following table provides a detailed analysis of all shares purchased by the Company or any affiliated purchaser during the third quarter of 2013:

Period (Dollars in Millions)	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Program (a)		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program
July		8,880,368	$	37.23		8,880,368	$	1,309
August		5,939,665		37.03		5,939,665		1,089
September		2,935,731		36.91		2,935,731		981
Total		17,755,764	$	37.11		17,755,764	$	981

(a) All shares were purchased under the stock repurchase program announced on March 14, 2013.

On June 18, 2013, the Company announced its Board of Directors had approved an 18 percent increase in the Company’s dividend rate per common share, from $.195 per quarter to $.23 per quarter.

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. The allowance for credit losses and related provision expense are allocated to the lines of business based on the related loan balances managed. 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, 2012, 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 2013, certain organization and methodology changes were made and, accordingly, 2012 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, international trade services and other financial services to middle market, large corporate, commercial real estate, financial institution, non-profit and public sector clients. Wholesale Banking and Commercial Real Estate contributed $333 million of the Company’s net income in the third quarter and $991 million in the first nine months of 2013, or increases of $7 million (2.1 percent) and $6 million (.6 percent), respectively, compared with the same periods of 2012. The increases were driven by a lower provision for credit losses and a decrease in noninterest expense, partially offset by lower net revenue.

Net revenue decreased $34 million (4.1 percent) in the third quarter and $138 million (5.5 percent) in the first nine months of 2013, compared with the same

28 U. S. Bancorp

periods of 2012. Net interest income, on a taxable-equivalent basis, decreased $2 million (.4 percent) in the third quarter and $27 million (1.7 percent) in the first nine months of 2013, compared with the same periods of 2012. The decreases were primarily driven by 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 and higher loan fees. Noninterest income decreased $32 million (10.7 percent) in the third quarter and $111 million (11.9 percent) in the first nine months of 2013, compared with the same periods of 2012, driven by lower commercial products revenue, primarily due to lower standby letters of credit and other loan-related fees and capital markets revenue.

Noninterest expense decreased $7 million (2.2 percent) in the third quarter and $24 million (2.5 percent) in the first nine months of 2013, compared with the same periods of 2012, primarily due to lower compensation and employee benefits costs, driven by a reduction in incentives expense. In addition, noninterest expense for the first nine months of 2013 was lower than the same period of the prior year due to lower costs related to other real estate owned and FDIC insurance expense. The provision for credit losses decreased $38 million in the third quarter and $123 million in the first nine months of 2013, compared with the same periods of 2012, due to lower net charge-offs, partially offset by lower reserve releases. Nonperforming assets were $351 million at September 30, 2013, $406 million at June 30, 2013, and $600 million at September 30, 2012. Nonperforming assets as a percentage of period-end loans were .48 percent at September 30, 2013, ..56 percent at June 30, 2013, and .90 percent at September 30, 2012. 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, such as mobile phones and tablet computers. It encompasses community banking,

metropolitan banking, in-store banking, small business banking, consumer lending, mortgage banking, workplace banking, student banking and 24-hour banking. Consumer and Small Business Banking contributed $343 million of the Company’s net income in the third quarter and $1.0 billion in the first nine months of 2013, or an increase of $9 million (2.7 percent) and a decrease of $89 million (8.1 percent), respectively, compared with the same periods of 2012, reflecting the net impact of lower net revenue, offset by decreases in the provision for credit losses and noninterest expense.

Within Consumer and Small Business Banking, the retail banking division contributed $190 million of the total net income in the third quarter and $459 million in the first nine months of 2013, or increases of $104 million and $54 million (13.3 percent), respectively, from the same periods of 2012. Mortgage banking contributed $153 million and $546 million of Consumer and Small Business Banking’s net income in the third quarter and first nine months of 2013, respectively, or decreases of $95 million (38.3 percent) and $143 million (20.8 percent), respectively, from the same periods of 2012.

Net revenue decreased $263 million (12.4 percent) and $552 million (8.8 percent) in the third quarter and first nine months of 2013, respectively, compared with the same periods of 2012. Net interest income, on a taxable-equivalent basis, decreased $52 million (4.4 percent) in the third quarter and $128 million (3.6 percent) in the first nine months of 2013, compared with the same periods of 2012. The decreases in net interest income were primarily due to lower loan rates, the impact of lower rates on the margin benefit from deposits and lower average loans held-for-sale balances, partially offset by higher average loan and deposit balances. Noninterest income decreased $211 million (22.7 percent) in the third quarter and $424 million (15.7 percent) in the first nine months of 2013, compared with the same periods of 2012, primarily the result of lower mortgage origination and sales revenue and retail lease revenue, partially offset by higher servicing income and favorable changes in the valuation of MSRs, net of hedging activities.

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)	2013			2012		Percent Change			2013		2012		Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	526		$	528		(.4	)%	$	1,141	$	1,193		(4.4	)%
Noninterest income		267			299		(10.7	)		719		930		(22.7	)
Securities gains (losses), net		–			–		–			–		–		–
Total net revenue		793			827		(4.1	)		1,860		2,123		(12.4	)
Noninterest expense		305			310		(1.6	)		1,150		1,236		(7.0	)
Other intangibles		2			4		(50.0	)		10		13		(23.1	)
Total noninterest expense		307			314		(2.2	)		1,160		1,249		(7.1	)
Income before provision and income taxes		486			513		(5.3	)		700		874		(19.9	)
Provision for credit losses		(38	)		–		*			160		349		(54.2	)
Income before income taxes		524			513		2.1			540		525		2.9
Income taxes and taxable-equivalent adjustment		191			187		2.1			197		191		3.1
Net income		333			326		2.1			343		334		2.7
Net (income) loss attributable to noncontrolling interests		–			–		–			–		–		–
Net income attributable to U.S. Bancorp	$	333		$	326		2.1		$	343	$	334		2.7
Average Balance Sheet
Commercial	$	51,409		$	46,131		11.4	%	$	8,475	$	8,423		.6	%
Commercial real estate		20,663			19,661		5.1			17,084		16,203		5.4
Residential mortgages		24			54		(55.6	)		48,131		40,530		18.8
Credit card		–			–		–			–		–		–
Other retail		6			7		(14.3	)		44,728		45,653		(2.0	)
Total loans, excluding covered loans		72,102			65,853		9.5			118,418		110,809		6.9
Covered loans		340			813		(58.2	)		6,434		7,384		(12.9	)
Total loans		72,442			66,666		8.7			124,852		118,193		5.6
Goodwill		1,604			1,604		–			3,515		3,515		–
Other intangible assets		24			34		(29.4	)		2,650		1,764		50.2
Assets		78,785			72,579		8.6			139,539		135,715		2.8
Noninterest-bearing deposits		30,925			31,167		(.8	)		22,460		20,981		7.0
Interest checking		10,038			7,897		27.1			32,971		30,020		9.8
Savings products		15,103			10,358		45.8			46,483		43,647		6.5
Time deposits		22,376			21,247		5.3			20,716		23,624		(12.3	)
Total deposits		78,442			70,669		11.0			122,630		118,272		3.7
Total U.S. Bancorp shareholders’ equity		7,434			6,378		16.6			12,154		11,551		5.2

	Wholesale Banking and Commercial Real Estate								Consumer and Small Business Banking
Nine Months Ended September 30 (Dollars in Millions)	2013			2012		Percent Change			2013		2012		Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,557		$	1,584		(1.7	)%	$	3,427	$	3,555		(3.6	)%
Noninterest income		819			930		(11.9	)		2,276		2,700		(15.7	)
Securities gains (losses), net		–			–		–			–		–		–
Total net revenue		2,376			2,514		(5.5	)		5,703		6,255		(8.8	)
Noninterest expense		932			950		(1.9	)		3,514		3,618		(2.9	)
Other intangibles		6			12		(50.0	)		30		39		(23.1	)
Total noninterest expense		938			962		(2.5	)		3,544		3,657		(3.1	)
Income before provision and income taxes		1,438			1,552		(7.3	)		2,159		2,598		(16.9	)
Provision for credit losses		(120	)		3		*			578		878		(34.2	)
Income before income taxes		1,558			1,549		.6			1,581		1,720		(8.1	)
Income taxes and taxable-equivalent adjustment		567			564		.5			576		626		(8.0	)
Net income		991			985		.6			1,005		1,094		(8.1	)
Net (income) loss attributable to noncontrolling interests		–			–		–			–		–		–
Net income attributable to U.S. Bancorp	$	991		$	985		.6		$	1,005	$	1,094		(8.1	)
Average Balance Sheet
Commercial	$	50,331		$	44,296		13.6	%	$	8,468	$	8,123		4.2	%
Commercial real estate		20,305			19,594		3.6			16,806		16,065		4.6
Residential mortgages		28			61		(54.1	)		46,251		38,884		18.9
Credit card		–			–		–			–		–		–
Other retail		9			5		80.0			44,737		45,602		(1.9	)
Total loans, excluding covered loans		70,673			63,956		10.5			116,262		108,674		7.0
Covered loans		394			1,010		(61.0	)		6,690		7,629		(12.3	)
Total loans		71,067			64,966		9.4			122,952		116,303		5.7
Goodwill		1,604			1,604		–			3,515		3,515		–
Other intangible assets		26			38		(31.6	)		2,293		1,784		28.5
Assets		77,479			70,806		9.4			139,027		132,973		4.6
Noninterest-bearing deposits		30,407			30,762		(1.2	)		21,843		19,638		11.2
Interest checking		10,385			10,621		(2.2	)		32,801		29,621		10.7
Savings products		13,354			8,962		49.0			46,061		43,022		7.1
Time deposits		18,459			17,255		7.0			21,590		24,047		(10.2	)
Total deposits		72,605			67,600		7.4			122,295		116,328		5.1
Total U.S. Bancorp shareholders’ equity		7,331			6,325		15.9			12,062		11,135		8.3

* Not meaningful

30 U. S. Bancorp

Wealth Management and Securities Services							Payment Services									Treasury and Corporate Support								Consolidated Company
2013		2012		Percent Change			2013			2012			Percent Change			2013			2012		Percent Change			2013			2012		Percent Change
$	85	$	87		(2.3	)%	$	393		$	382			2.9	%	$	569		$	593		(4.0	)%	$	2,714		$	2,783		(2.5	)%
	305		282		8.2			822			854			(3.7	)		67			30		*			2,180			2,395		(9.0	)
	–		–		–			–			–			–			(3	)		1		*			(3	)		1		*
	390		369		5.7			1,215			1,236			(1.7	)		633			624		1.4			4,891			5,179		(5.6	)
	322		288		11.8			493			452			9.1			240			256		(6.3	)		2,510			2,542		(1.3	)
	9		10		(10.0	)		34			40			(15.0	)		–			–		–			55			67		(17.9	)
	331		298		11.1			527			492			7.1			240			256		(6.3	)		2,565			2,609		(1.7	)
	59		71		(16.9	)		688			744			(7.5	)		393			368		6.8			2,326			2,570		(9.5	)
	6		4		50.0			172			135			27.4			(2	)		–		*			298			488		(38.9	)
	53		67		(20.9	)		516			609			(15.3	)		395			368		7.3			2,028			2,082		(2.6	)
	19		24		(20.8	)		188			222			(15.3	)		3			26		(88.5	)		598			650		(8.0	)
	34		43		(20.9	)		328			387			(15.2	)		392			342		14.6			1,430			1,432		(.1	)
	–		–		–			(10	)		(10	)		–			48			52		(7.7	)		38			42		(9.5	)
$	34	$	43		(20.9	)	$	318		$	377			(15.6	)	$	440		$	394		11.7		$	1,468		$	1,474		(.4	)
$	1,774	$	1,361		30.3	%	$	6,191		$	6,062			2.1	%	$	215		$	215		–	%	$	68,064		$	62,192		9.4	%
	653		624		4.6			–			–			–			101			142		(28.9	)		38,501			36,630		5.1
	983		384		*			–			–			–			1			1		–			49,139			40,969		19.9
	–		–		–			16,931			16,551			2.3			–			–		–			16,931			16,551		2.3
	1,531		1,529		.1			729			802			(9.1	)		–			–		–			46,994			47,991		(2.1	)
	4,941		3,898		26.8			23,851			23,415			1.9			317			358		(11.5	)		219,629			204,333		7.5
	17		11		54.5			5			5			–			2,937			4,382		(33.0	)		9,733			12,595		(22.7	)
	4,958		3,909		26.8			23,856			23,420			1.9			3,254			4,740		(31.4	)		229,362			216,928		5.7
	1,533		1,469		4.4			2,509			2,346			6.9			–			–		–			9,161			8,934		2.5
	166		165		.6			557			646			(13.8	)		2			4		(50.0	)		3,399			2,613		30.1
	7,749		6,688		15.9			30,123			29,517			2.1			95,965			101,154		(5.1	)		352,161			345,653		1.9
	13,510		14,862		(9.1	)		714			623			14.6			655			494		32.6			68,264			68,127		.2
	4,770		3,943		21.0			455			1,346			(66.2	)		1			1		–			48,235			43,207		11.6
	26,339		23,089		14.1			60			40			50.0			80			139		(42.4	)		88,065			77,273		14.0
	4,170		5,463		(23.7	)		–			–			–			542			340		59.4			47,804			50,674		(5.7	)
	48,789		47,357		3.0			1,229			2,009			(38.8	)		1,278			974		31.2			252,368			239,281		5.5
	2,398		2,240		7.1			6,102			5,667			7.7			11,848			12,783		(7.3	)		39,936			38,619		3.4

Wealth Management and Securities Services							Payment Services									Treasury and Corporate Support								Consolidated Company
2013		2012		Percent Change			2013			2012			Percent Change			2013		2012			Percent Change			2013		2012			Percent Change
$	267	$	264		1.1	%	$	1,168		$	1,154			1.2	%	$	1,676	$	1,629			2.9	%	$	8,095	$	8,186			(1.1	)%
	910		827		10.0			2,397			2,402			(.2	)		208		149			39.6			6,610		7,008			(5.7	)
	–		–		–			–			–			–			8		(18	)		*			8		(18	)		*
	1,177		1,091		7.9			3,565			3,556			.3			1,892		1,760			7.5			14,713		15,176			(3.1	)
	962		854		12.6			1,454			1,344			8.2			563		796			(29.3	)		7,425		7,562			(1.8	)
	27		30		(10.0	)		104			127			(18.1	)		–		–			–			167		208			(19.7	)
	989		884		11.9			1,558			1,471			5.9			563		796			(29.3	)		7,592		7,770			(2.3	)
	188		207		(9.2	)		2,007			2,085			(3.7	)		1,329		964			37.9			7,121		7,406			(3.8	)
	7		5		40.0			553			548			.9			45		5			*			1,063		1,439			(26.1	)
	181		202		(10.4	)		1,454			1,537			(5.4	)		1,284		959			33.9			6,058		5,967			1.5
	65		73		(11.0	)		529			560			(5.5	)		60		29			*			1,797		1,852			(3.0	)
	116		129		(10.1	)		925			977			(5.3	)		1,224		930			31.6			4,261		4,115			3.5
	–		–		–			(29	)		(30	)		3.3			148		142			4.2			119		112			6.3
$	116	$	129		(10.1	)	$	896		$	947			(5.4	)	$	1,372	$	1,072			28.0		$	4,380	$	4,227			3.6
$	1,687	$	1,264		33.5	%	$	6,030		$	5,904			2.1	%	$	203	$	203			–	%	$	66,719	$	59,790			11.6	%
	654		607		7.7			–			–			–			107		123			(13.0	)		37,872		36,389			4.1
	775		379		*			–			–			–			1		4			(75.0	)		47,055		39,328			19.6
	–		–		–			16,627			16,675			(.3	)		–		–			–			16,627		16,675			(.3	)
	1,544		1,516		1.8			744			817			(8.9	)		–		–			–			47,034		47,940			(1.9	)
	4,660		3,766		23.7			23,401			23,396			–			311		330			(5.8	)		215,307		200,122			7.6
	14		12		16.7			5			5			–			3,272		4,953			(33.9	)		10,375		13,609			(23.8	)
	4,674		3,778		23.7			23,406			23,401			–			3,583		5,283			(32.2	)		225,682		213,731			5.6
	1,529		1,468		4.2			2,509			2,349			6.8			–		–			–			9,157		8,936			2.5
	174		172		1.2			584			717			(18.5	)		2		4			(50.0	)		3,079		2,715			13.4
	7,513		6,477		16.0			29,659			29,684			(.1	)		97,370		100,867			(3.5	)		351,048		340,807			3.0
	13,807		13,904		(.7	)		694			638			8.8			432		481			(10.2	)		67,183		65,423			2.7
	4,716		3,950		19.4			444			1,329			(66.6	)		1		1			–			48,347		45,522			6.2
	27,081		23,203		16.7			54			37			45.9			85		136			(37.5	)		86,635		75,360			15.0
	5,228		4,892		6.9			–			–			–			842		479			75.8			46,119		46,673			(1.2	)
	50,832		45,949		10.6			1,192			2,004			(40.5	)		1,360		1,097			24.0			248,284		232,978			6.6
	2,375		2,223		6.8			6,033			5,698			5.9			11,874		11,724			1.3			39,675		37,105			6.9

U. S. Bancorp 31

Noninterest expense decreased $89 million (7.1 percent) in the third quarter and $113 million (3.1 percent) in the first nine months of 2013, compared with the same periods of 2012. The decreases reflected reductions in mortgage servicing review-related costs, compensation and employee benefits expense, costs related to other intangibles expense and other real estate owned, partially offset by higher net shared services costs.

The provision for credit losses decreased $189 million (54.2 percent) in the third quarter and $300 million (34.2 percent) in the first nine months of 2013, compared with the same periods of 2012, due to lower net charge-offs and a favorable change in the reserve allocation. As a percentage of average loans outstanding on an annualized basis, net charge-offs decreased to .52 percent in the third quarter of 2013, compared with .99 percent in the third quarter of 2012. Nonperforming assets were $1.4 billion at September 30, 2013, June 30, 2013 and September 30, 2012. Nonperforming assets as a percentage of period-end loans were 1.14 percent at September 30, 2013, 1.13 percent at June 30, 2013, and 1.16 percent at September 30, 2012. 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 $34 million of the Company’s net income in the third quarter and $116 million in the first nine months of 2013, or decreases of $9 million (20.9 percent) and $13 million (10.1 percent), respectively, compared with the same periods of 2012, reflecting the impact of higher noninterest expense, partially offset by higher net revenue.

Net revenue increased $21 million (5.7 percent) in the third quarter and $86 million (7.9 percent) in the first nine months of 2013, compared with the same periods of 2012. Net interest income, on a taxable-equivalent basis, decreased $2 million (2.3 percent) in the third quarter and increased $3 million (1.1 percent) in the first nine months of 2013, compared with the same periods of 2012, reflecting the net impact of higher average loan and deposit balances, offset by lower rates on the margin benefit of deposits. Noninterest income increased $23 million (8.2 percent) in the third quarter and $83 million (10.0 percent) in the first nine months

of 2013, compared with the same periods of 2012, due to the impact of improved market conditions, business expansion and higher investment products fees. Noninterest expense increased $33 million (11.1 percent) in the third quarter and $105 million (11.9 percent) in the first nine months of 2013, compared with the same periods of 2012. The increases in noninterest expense were primarily due to higher total compensation and employee benefits expense, and an increase in net shared services costs, including the impact of business expansion and higher litigation-related 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 $318 million and $896 million of the Company’s net income in the third quarter and first nine months of 2013, respectively, or decreases of $59 million (15.6 percent) and $51 million (5.4 percent), respectively, compared with the same periods of 2012. The decrease in the third quarter of 2013 from the third quarter of 2012 was driven by higher noninterest expense and provision for credit losses and lower net revenue. The decrease for the first nine months of 2013 from the same period of 2012 was driven by higher noninterest expense and provision for credit losses, partially offset by higher net revenue.

Net revenue decreased $21 million (1.7 percent) in the third quarter and increased $9 million (.3 percent) in the first nine months of 2013, compared with the same periods of 2012. Net interest income, on a taxable-equivalent basis, increased $11 million (2.9 percent) in the third quarter and $14 million (1.2 percent) in the first nine months of 2013, compared with the same periods of 2012, primarily due to higher average loan balances, improved loan rates and lower rebate costs on the Company’s government card program. Noninterest income decreased $32 million (3.7 percent) in the third quarter and $5 million (.2 percent) in the first nine months of 2013, compared with the same periods of 2012, due to the impact of the gain on a credit card portfolio sale in the third quarter of 2012 and lower corporate payment products revenue due to a reduction in government-related transactions, partially offset by higher credit and debit card revenue, primarily due to higher volumes and business expansion. Merchant processing services revenue was also higher over the prior year due to higher volumes and fee-based product revenue.

Noninterest expense increased $35 million (7.1 percent) in the third quarter and $87 million (5.9 percent) in the first nine months of 2013, compared with the same periods of 2012, primarily due to higher

32 U. S. Bancorp

total compensation and employee benefits expense, technology and communications expense and net shared services expense, including the impact of business expansion, partially offset by reductions in other intangibles expense. The provision for credit losses increased $37 million (27.4 percent) in the third quarter and $5 million (.9 percent) in the first nine months of 2013, compared with the same periods of 2012, principally due to lower reserve releases, partially offset by lower net charge-offs. As a percentage of average loans outstanding, net charge-offs were 3.16 percent in the third quarter of 2013, compared with 3.43 percent in the third quarter of 2012.

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, interest rate risk management, the net effect of transfer pricing related to average balances, income taxes not allocated to business lines, including most tax-advantaged investments, 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 $440 million in the third quarter and $1.4 billion in the first nine months of 2013, compared with $394 million and $1.1 billion in the same periods of 2012, respectively.

Net revenue increased $9 million (1.4 percent) in the third quarter and $132 million (7.5 percent) in the first nine months of 2013, compared with the same periods of 2012. Net interest income, on a taxable-equivalent basis, decreased $24 million (4.0 percent) in the third quarter and increased $47 million (2.9 percent) in the first nine months of 2013, compared with the same periods of 2012, reflecting the net impact of lower rates on loans and investment securities, offset by lower long-term funding costs. Noninterest income increased $33 million in the third quarter and $85 million (64.9 percent) in the first nine months of 2013, compared with the same periods of 2012, primarily due to higher commercial products revenue. In addition, noninterest income for the third quarter of 2013 was higher than the third quarter of 2012 due to increased equity investment revenue. Noninterest income for the first nine months of 2013 was also higher than the same period of the prior year due to a favorable change in net securities gains (losses) as the Company recognized impairments on a number of securities in the second quarter of 2012.

Noninterest expense decreased $16 million (6.3 percent) in the third quarter and $233 million (29.3

percent) in the first nine months of 2013, compared with the same periods of 2012, principally reflecting a reduction in litigation-related costs and net shared services expense. These decreases were partially offset by increases in total compensation and employee benefits expense and higher costs related to investments in affordable housing and other tax-advantaged projects. In addition, noninterest expense for the first nine months of 2013 was lower than the same period of the prior year due to the prior year Visa accrual and lower insurance-related costs.

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.

NON-GAAP FINANCIAL MEASURES

In addition to capital ratios defined by banking regulators under the FDIC Improvement Act prompt corrective action provisions that are currently effective, 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,

• Common equity tier 1 to risk-weighted assets estimated using the Basel III capital regulations released by the Federal Reserve Board in July 2013, and for additional information,

• Common equity tier 1 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 the currently effective capital ratios defined by 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 are not currently effective or defined in federal banking regulations. As a result, these measures disclosed by the Company may be considered non-GAAP financial measures.

U. S. Bancorp 33

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, 2013			December 31, 2012
Total equity	$	41,552		$	40,267
Preferred stock		(4,756	)		(4,769	)
Noncontrolling interests		(1,420	)		(1,269	)
Goodwill (net of deferred tax liability)		(8,319	)		(8,351	)
Intangible assets, other than mortgage servicing rights		(878	)		(1,006	)
Tangible common equity (a)		26,179			24,872
Tier 1 capital, determined in accordance with prescribed regulatory requirements using Basel I definition		32,707			31,203
Preferred stock		(4,756	)		(4,769	)
Noncontrolling interests, less preferred stock not eligible for Tier 1 capital		(686	)		(685	)
Tier 1 common equity using Basel I definition (b)		27,265			25,749
Tangible common equity (as calculated above)		26,179
Adjustments (1)		258
Common equity tier 1 estimated using the Basel III capital regulations released by the Federal Reserve Board in July 2013 (c)		26,437
Tangible common equity (as calculated above)					24,872
Adjustments (2)					126
Common equity tier 1 approximated using proposed rules for the Basel III standardized approach released June 2012 (d)					24,998
Total assets		360,681			353,855
Goodwill (net of deferred tax liability)		(8,319	)		(8,351	)
Intangible assets, other than mortgage servicing rights		(878	)		(1,006	)
Tangible assets (e)		351,484			344,498
Risk-weighted assets, determined in accordance with prescribed regulatory requirements using Basel I definition (f)		293,155
Adjustments (3)		13,473
Risk-weighted assets estimated using the Basel III capital regulations released by the Federal Reserve Board in July 2013 (g)		306,628
Risk-weighted assets, determined in accordance with prescribed regulatory requirements using Basel I definition (f)					287,611
Adjustments (4)					21,233
Risk-weighted assets approximated using proposed rules for the Basel III standardized approach released June 2012 (h)					308,844
Ratios
Tangible common equity to tangible assets (a)/(e)		7.4	%		7.2	%
Tangible common equity to risk-weighted assets using Basel I definition (a)/(f)		8.9			8.6
Tier 1 common equity to risk-weighted assets using Basel I definition (b)/(f)		9.3			9.0
Common equity tier 1 to risk-weighted assets estimated using the Basel III capital regulations released by the Federal Reserve Board in July 2013 (c)/(g)		8.6			–
Common equity tier 1 to risk-weighted assets approximated using proposed rules for the Basel III standardized approach released June 2012 (d)/(h)		–			8.1

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

(4) Includes higher risk-weighting for residential mortgages, unfunded loan commitments, investment securities and 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, 2012.

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, 2013			December 31, 2012
	(Unaudited)
Assets
Cash and due from banks	$	11,615		$	8,252
Investment securities
Held-to-maturity (fair value $36,632 and $34,952, respectively; including $937 and $1,482 at fair value pledged as collateral, respectively) (a)		36,904			34,389
Available-for-sale ($1,105 and $2,042 pledged as collateral, respectively) (a)		39,307			40,139
Loans held for sale (including $3,844 and $7,957 of mortgage loans carried at fair value, respectively)		3,858			7,976
Loans
Commercial		68,958			66,223
Commercial real estate		38,678			36,953
Residential mortgages		50,170			44,018
Credit card		17,063			17,115
Other retail		47,114			47,712
Total loans, excluding covered loans		221,983			212,021
Covered loans		9,396			11,308
Total loans		231,379			223,329
Less allowance for loan losses		(4,258	)		(4,424	)
Net loans		227,121			218,905
Premises and equipment		2,608			2,670
Goodwill		9,173			9,143
Other intangible assets		3,455			2,706
Other assets (including $168 and $47 of trading securities at fair value pledged as collateral, respectively) (a)		26,640			29,675
Total assets	$	360,681		$	353,855
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing	$	72,333		$	74,172
Interest-bearing		152,861			145,972
Time deposits greater than $100,000		36,522			29,039
Total deposits		261,716			249,183
Short-term borrowings		26,128			26,302
Long-term debt		18,750			25,516
Other liabilities		12,535			12,587
Total liabilities		319,129			313,588
Shareholders’ equity
Preferred stock		4,756			4,769
Common stock, par value $0.01 a share—authorized: 4,000,000,000 shares; issued: 9/30/13 and 12/31/12 —2,125,725,742 shares		21			21
Capital surplus		8,188			8,201
Retained earnings		37,692			34,720
Less cost of common stock in treasury: 9/30/13—294,069,246 shares; 12/31/12 —256,294,227 shares		(9,174	)		(7,790	)
Accumulated other comprehensive income (loss)		(1,351	)		(923	)
Total U.S. Bancorp shareholders’ equity		40,132			38,998
Noncontrolling interests		1,420			1,269
Total equity		41,552			40,267
Total liabilities and equity	$	360,681		$	353,855

(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)	2013			2012			2013			2012
Interest Income
Loans	$	2,568		$	2,650		$	7,682		$	7,919
Loans held for sale		46			76			172			208
Investment securities		420			438			1,222			1,376
Other interest income		34			63			141			184
Total interest income		3,068			3,227			9,217			9,687
Interest Expense
Deposits		134			172			433			530
Short-term borrowings		98			103			270			353
Long-term debt		178			226			587			786
Total interest expense		410			501			1,290			1,669
Net interest income		2,658			2,726			7,927			8,018
Provision for credit losses		298			488			1,063			1,439
Net interest income after provision for credit losses		2,360			2,238			6,864			6,579
Noninterest Income
Credit and debit card revenue		244			213			702			650
Corporate payment products revenue		192			201			540			566
Merchant processing services		371			345			1,091			1,041
ATM processing services		83			87			248			263
Trust and investment management fees		280			265			842			779
Deposit service charges		180			174			493			483
Treasury management fees		134			135			408			411
Commercial products revenue		207			225			616			652
Mortgage banking revenue		328			519			1,125			1,461
Investment products fees		46			38			133			111
Securities gains (losses), net
Realized gains (losses), net		–			16			21			46
Total other-than-temporary impairment		(2	)		(13	)		(5	)		(61	)
Portion of other-than-temporary impairment recognized in other comprehensive income		(1	)		(2	)		(8	)		(3	)
Total securities gains (losses), net		(3	)		1			8			(18	)
Other		115			193			412			591
Total noninterest income		2,177			2,396			6,618			6,990
Noninterest Expense
Compensation		1,088			1,109			3,268			3,237
Employee benefits		278			225			865			714
Net occupancy and equipment		240			233			709			683
Professional services		94			144			263			364
Marketing and business development		85			96			254			285
Technology and communications		214			205			639			607
Postage, printing and supplies		76			75			230			226
Other intangibles		55			67			167			208
Other		435			455			1,197			1,446
Total noninterest expense		2,565			2,609			7,592			7,770
Income before income taxes		1,972			2,025			5,890			5,799
Applicable income taxes		542			593			1,629			1,684
Net income		1,430			1,432			4,261			4,115
Net (income) loss attributable to noncontrolling interests		38			42			119			112
Net income attributable to U.S. Bancorp	$	1,468		$	1,474		$	4,380		$	4,227
Net income applicable to U.S. Bancorp common shareholders	$	1,400		$	1,404		$	4,163		$	4,034
Earnings per common share	$	.76		$	.74		$	2.26		$	2.13
Diluted earnings per common share	$	.76		$	.74		$	2.25		$	2.12
Dividends declared per common share	$	.230		$	.195		$	.655		$	.585
Average common shares outstanding		1,832			1,886			1,844			1,892
Average diluted common shares outstanding		1,843			1,897			1,854			1,901

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)	2013			2012			2013			2012
Net income	$	1,430		$	1,432		$	4,261		$	4,115
Other Comprehensive Income (Loss)
Changes in unrealized gains and losses on securities available-for-sale		(237	)		300			(1,032	)		738
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		1			2			8			3
Changes in unrealized gains and losses on derivative hedges		(17	)		(30	)		33			(68	)
Foreign currency translation		13			26			(20	)		34
Changes in unrealized gains and losses on retirement plans		38			–			37			–
Reclassification to earnings of realized gains and losses		99			69			270			260
Income taxes related to other comprehensive income		40			(140	)		276			(370	)
Total other comprehensive income (loss)		(63	)		227			(428	)		597
Comprehensive income		1,367			1,659			3,833			4,712
Comprehensive (income) loss attributable to noncontrolling interests		38			42			119			112
Comprehensive income attributable to U.S. Bancorp	$	1,405		$	1,701		$	3,952		$	4,824

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, 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
Balance December 31, 2012		1,869		$	4,769		$	21	$	8,201		$	34,720		$	(7,790	)	$	(923	)	$	38,998		$	1,269		$	40,267
Net income (loss)													4,380									4,380			(119	)		4,261
Other comprehensive income (loss)																			(428	)		(428	)					(428	)
Redemption of preferred stock					(500	)				8			(8	)								(500	)					(500	)
Preferred stock dividends													(189	)								(189	)					(189	)
Common stock dividends													(1,211	)								(1,211	)					(1,211	)
Issuance of preferred stock					487																	487						487
Issuance of common and treasury stock		15								(114	)					459						345						345
Purchase of treasury stock		(52	)													(1,843	)					(1,843	)					(1,843	)
Distributions to noncontrolling interests																						–			(45	)		(45	)
Net other changes in noncontrolling interests																						–			315			315
Stock option and restricted stock grants										93												93						93
Balance September 30, 2013		1,832		$	4,756		$	21	$	8,188		$	37,692		$	(9,174	)	$	(1,351	)	$	40,132		$	1,420		$	41,552

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,
	2013			2012
Operating Activities
Net income attributable to U.S. Bancorp	$	4,380		$	4,227
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses		1,063			1,439
Depreciation and amortization of premises and equipment		222			212
Amortization of intangibles		167			208
Provision for deferred income taxes		(38	)		29
(Gain) loss on sale of loans held for sale		(864	)		(1,982	)
(Gain) loss on sale of securities and other assets		(42	)		(198	)
Loans originated for sale in the secondary market, net of repayments		(49,411	)		(60,331	)
Proceeds from sales of loans held for sale		53,845			59,052
Other, net		(665	)		1,219
Net cash provided by operating activities		8,657			3,875
Investing Activities
Proceeds from sales of available-for-sale investment securities		766			1,753
Proceeds from maturities of held-to-maturity investment securities		6,854			4,005
Proceeds from maturities of available-for-sale investment securities		8,395			11,664
Purchases of held-to-maturity investment securities		(9,439	)		(8,003	)
Purchases of available-for-sale investment securities		(9,381	)		(12,065	)
Net increase in loans outstanding		(8,495	)		(9,518	)
Proceeds from sales of loans		620			1,614
Purchases of loans		(1,883	)		(2,139	)
Acquisitions, net of cash acquired		–			94
Other, net		(100	)		(668	)
Net cash used in investing activities		(12,663	)		(13,263	)
Financing Activities
Net increase in deposits		12,533			13,099
Net decrease in short-term borrowings		(174	)		(2,616	)
Proceeds from issuance of long-term debt		198			4,553
Principal payments or redemption of long-term debt		(2,380	)		(10,271	)
Proceeds from issuance of preferred stock		487			2,163
Proceeds from issuance of common stock		331			342
Redemption of preferred stock		(500	)		–
Repurchase of common stock		(1,779	)		(1,343	)
Cash dividends paid on preferred stock		(193	)		(139	)
Cash dividends paid on common stock		(1,154	)		(980	)
Net cash provided by financing activities		7,369			4,808
Change in cash and due from banks		3,363			(4,580	)
Cash and due from banks at beginning of period		8,252			13,962
Cash and due from banks at end of period	$	11,615		$	9,382

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, 2012. 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, 2013												December 31, 2012
					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	$	3,368	$	9	$	–		$	(60	)	$	3,317	$	3,154	$	27	$	–		$	–		$	3,181
Mortgage-backed securities
Residential
Agency		33,378		234		–			(454	)		33,158		31,064		545		–			(6	)		31,603
Non-agency non-prime (d)		1		–		–			–			1		1		–		–			–			1
Commercial non-agency		1		–		–			–			1		2		–		–			–			2
Asset-backed securities
Collateralized debt obligations/ Collateralized loan obligations		2		9		–			–			11		7		15		–			–			22
Other		16		4		(1	)		(1	)		18		19		2		(3	)		(1	)		17
Obligations of state and political subdivisions		17		–		–			–			17		20		1		–			–			21
Obligations of foreign governments		7		–		–			–			7		7		–		–			–			7
Other debt securities		114		–		–			(12	)		102		115		–		–			(17	)		98
Total held-to-maturity	$	36,904	$	256	$	(1	)	$	(527	)	$	36,632	$	34,389	$	590	$	(3	)	$	(24	)	$	34,952
Available-for-sale (b)
U.S. Treasury and agencies	$	1,567	$	5	$	–		$	(51	)	$	1,521	$	1,211	$	16	$	–		$	(1	)	$	1,226
Mortgage-backed securities
Residential
Agency		29,136		476		–			(392	)		29,220		28,754		746		–			(5	)		29,495
Non-agency
Prime (c)		513		2		(10	)		(5	)		500		641		3		(16	)		(4	)		624
Non-prime (d)		307		3		(6	)		(1	)		303		372		4		(20	)		(1	)		355
Commercial agency		165		4		–			–			169		185		8		–			–			193
Asset-backed securities
Collateralized debt obligations/ Collateralized loan obligations		20		5		–			–			25		32		10		–			–			42
Other		598		13		–			(1	)		610		579		14		–			(1	)		592
Obligations of state and political subdivisions		5,732		134		–			(46	)		5,820		6,059		396		–			–			6,455
Obligations of foreign governments		6		–		–			–			6		6		–		–			–			6
Corporate debt securities		734		–		–			(92	)		642		814		2		–			(85	)		731
Perpetual preferred securities		205		24		–			(20	)		209		205		27		–			(14	)		218
Other investments		257		25		–			–			282		182		20		–			–			202
Total available-for-sale	$	39,240	$	691	$	(16	)	$	(608	)	$	39,307	$	39,040	$	1,246	$	(36	)	$	(111	)	$	40,139

(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.

The weighted-average maturity of the available-for-sale investment securities was 5.5 years at September 30, 2013, compared with 4.1 years at December 31, 2012. The corresponding weighted-average yields were 2.70 percent and 2.93 percent, respectively. The weighted-average maturity of the held-to-maturity investment securities was 4.2 years at September 30, 2013, and 3.3 years at December 31, 2012. The corresponding weighted-average yields were 1.97 percent and 1.94 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, 2013, 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 $15.5 billion at September 30, 2013, and $20.1 billion at December 31, 2012, 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 $2.0 billion at September 30, 2013, and $3.5 billion at December 31, 2012.

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)	2013		2012		2013		2012
Taxable	$	357	$	369	$	1,029	$	1,166
Non-taxable		63		69		193		210
Total interest income from investment securities	$	420	$	438	$	1,222	$	1,376

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)	2013		2012			2013		2012
Realized gains	$	–	$	115		$	21	$	145
Realized losses		–		(99	)		–		(99	)
Net realized gains (losses)	$	–	$	16		$	21	$	46
Income tax (benefit) on net realized gains (losses)	$	–	$	7		$	8	$	18

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, the existence of any government or agency guarantees, 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:

	2013									2012
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)		$	(1	)	$	–	$	(1	)	$	(5	)	$	(3	)	$	(8	)
Non-prime (b)			(2	)		1		(1	)		(10	)		5			(5	)
Total available-for-sale		$	(3	)	$	1	$	(2	)	$	(15	)	$	2		$	(13	)

(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 (loss) for investment securities determined to be other-than-temporarily impaired during the period. Gains represent recoveries in the fair value of securities that had non-credit other-than-temporary impairment during the period.

	2013									2012
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)		$	(5	)	$	2	$	(3	)	$	(8	)	$	(12	)	$	(20	)
Non-prime (b)			(8	)		6		(2	)		(27	)		15			(12	)
Commercial non-agency			–			–		–			(1	)		(1	)		(2	)
Other asset-backed securities			–			–		–			(1	)		1			–
Perpetual preferred securities			–			–		–			(27	)		–			(27	)
Total available-for-sale		$	(13	)	$	8	$	(5	)	$	(64	)	$	3		$	(61	)

(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 (loss) for investment securities determined to be other-than-temporarily impaired during the period. Gains represent recoveries in the fair value of securities that had non-credit other-than-temporary impairment during the period.

U. S. Bancorp 43

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, 2013
Estimated lifetime prepayment rates		12	%		18	%		13	%		4	%		10	%		6	%
Lifetime probability of default rates		3			5			4			5			10			7
Lifetime loss severity rates		25			50			48			15			60			51
December 31, 2012
Estimated lifetime prepayment rates		6	%		22	%		14	%		3	%		10	%		6	%
Lifetime probability of default rates		3			6			4			3			10			7
Lifetime loss severity rates		40			50			47			45			65			56

(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 (excluding perpetual preferred securities) are summarized as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2013			2012			2013			2012
Balance at beginning of period	$	124		$	277		$	134		$	298
Additions to Credit Losses Due to Other-than-temporary Impairments
Credit losses on securities not previously considered other-than-temporarily impaired		–			2			–			5
Decreases in expected cash flows on securities for which other-than-temporary impairment was previously recognized		3			13			13			32
Total other-than-temporary impairment on debt securities		3			15			13			37
Other Changes in Credit Losses
Increases in expected cash flows		(1	)		–			(2	)		(14	)
Realized losses (a)		(4	)		(4	)		(18	)		(33	)
Credit losses on security sales and securities expected to be sold		–			(142	)		(5	)		(142	)
Balance at end of period	$	122		$	146		$	122		$	146

(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, 2013, 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, 2013:

	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
U.S. Treasury and agencies	$	1,056	$	(60	)	$	–	$	–		$	1,056	$	(60	)
Mortgage-backed securities
Residential agency		20,034		(452	)		85		(2	)		20,119		(454	)
Commercial non-agency		1		–			–		–			1		–
Other asset-backed securities		–		–			10		(2	)		10		(2	)
Obligations of state and political subdivisions		8		–			–		–			8		–
Other debt securities		–		–			13		(12	)		13		(12	)
Total held-to-maturity	$	21,099	$	(512	)	$	108	$	(16	)	$	21,207	$	(528	)
Available-for-sale
U.S. Treasury and agencies	$	853	$	(51	)	$	–	$	–		$	853	$	(51	)
Mortgage-backed securities
Residential
Agency		13,540		(389	)		343		(3	)		13,883		(392	)
Non-agency (a)
Prime (b)		137		(2	)		206		(13	)		343		(15	)
Non-prime (c)		128		(2	)		81		(5	)		209		(7	)
Commercial agency		61		–			–		–			61		–
Other asset-backed securities		25		(1	)		3		–			28		(1	)
Obligations of state and political subdivisions		1,382		(46	)		10		–			1,392		(46	)
Corporate debt securities		214		(5	)		420		(87	)		634		(92	)
Perpetual preferred securities		–		–			112		(20	)		112		(20	)
Total available-for-sale	$	16,340	$	(496	)	$	1,175	$	(128	)	$	17,515	$	(624	)

(a) The Company has $22 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 economic conditions worsen. Additionally, 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 issued with high investment grade credit ratings or agency mortgage-backed securities. 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, 2013, 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, 2013					December 31, 2012
(Dollars in Millions)	Amount		Percent of Total			Amount		Percent of Total
Commercial
Commercial	$	63,696		27.5	%	$	60,742		27.2	%
Lease financing		5,262		2.3			5,481		2.5
Total commercial		68,958		29.8			66,223		29.7
Commercial Real Estate
Commercial mortgages		31,467		13.6			31,005		13.9
Construction and development		7,211		3.1			5,948		2.6
Total commercial real estate		38,678		16.7			36,953		16.5
Residential Mortgages
Residential mortgages		36,484		15.8			32,648		14.6
Home equity loans, first liens		13,686		5.9			11,370		5.1
Total residential mortgages		50,170		21.7			44,018		19.7
Credit Card		17,063		7.4			17,115		7.7
Other Retail
Retail leasing		5,761		2.5			5,419		2.4
Home equity and second mortgages		15,544		6.7			16,726		7.5
Revolving credit		3,289		1.4			3,332		1.5
Installment		5,717		2.4			5,463		2.4
Automobile		13,130		5.7			12,593		5.6
Student		3,673		1.6			4,179		1.9
Total other retail		47,114		20.3			47,712		21.3
Total loans, excluding covered loans		221,983		95.9			212,021		94.9
Covered Loans		9,396		4.1			11,308		5.1
Total loans	$	231,379		100.0	%	$	223,329		100.0	%

The Company had loans of $75.3 billion at September 30, 2013, and $74.1 billion at December 31, 2012, pledged at the Federal Home Loan Bank (“FHLB”), and loans of $51.6 billion at September 30, 2013, and $48.6 billion at December 31, 2012, 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 $539 million at September 30, 2013, and $753 million at December 31, 2012. 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.”

Changes in the accretable balance for purchased impaired loans were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2013			2012			2013			2012
Balance at beginning of period	$	1,802		$	2,431		$	1,709		$	2,619
Purchases		–			–			–			13
Accretion		(119	)		(109	)		(380	)		(337	)
Disposals		(51	)		(37	)		(120	)		(135	)
Reclassifications (to)/from nonaccretable difference (a)		119			58			177			191
Other (b)		–			(14	)		365			(22	)
Balance at end of period	$	1,751		$	2,329		$	1,751		$	2,329

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

(b) The amount for the nine months ended September 30, 2013, primarily represents the reclassification of unamortized decreases in the FDIC asset (which are now presented as a separate component within the covered assets table on page 55), partially offset by the impact of changes in expectations about retaining covered single-family loans beyond the term of the indemnification agreements.

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 Federal Deposit Insurance Corporation (“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.

46 U. S. Bancorp

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. In the migration analysis applied to risk rated loan portfolios, the Company currently uses a 12-year period of historical losses in considering actual loss experience, because it believes that period best reflects the losses incurred in the portfolio. This timeframe and the results of the analysis are evaluated quarterly to determine if they are appropriate. 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 of the loan, or the fair value of the collateral for collateral-dependent loans, rather than the migration analysis. 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, portfolio growth 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 Troubled Debt Restructuring (“TDR”) loans and purchased impaired 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, or the prior quarter effective rate, respectively. The allowance for collateral-dependent loans in the consumer lending segment is determined based on the fair value of the collateral less costs to sell. 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, refreshed loan-to-value ratios when possible, portfolio growth 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 the borrower’s ability to pay under the restructured terms, and the timing and amount of payments.

The allowance for the covered loan segment 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 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.

U. S. Bancorp 47

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
2013
Balance at beginning of period	$	1,023		$	777		$	921		$	874		$	838		$	4,433		$	179		$	4,612
Add
Provision for credit losses		19			(22	)		70			151			84			302			(4	)		298
Deduct
Loans charged off		65			17			62			175			122			441			9			450
Less recoveries of loans charged off		(54	)		(23	)		(5	)		(15	)		(24	)		(121	)		(1	)		(122	)
Net loans charged off		11			(6	)		57			160			98			320			8			328
Other changes (a)		–			–			–			–			–			–			(4	)		(4	)
Balance at end of period	$	1,031		$	761		$	934		$	865		$	824		$	4,415		$	163		$	4,578
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
Other changes (a)		–			–			–			(33	)		–			(33	)		(10	)		(43	)
Balance at end of period	$	1,034		$	894		$	961		$	915		$	856		$	4,660		$	111		$	4,771

(a) Includes net changes in credit losses to be reimbursed by the FDIC and for the three months ended September 30, 2013, reductions in the allowance for covered loans where the reversal of a previously recorded allowance was offset by an associated decrease in the indemnification asset.

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
2013
Balance at beginning of period	$	1,051		$	857		$	935		$	863		$	848		$	4,554		$	179		$	4,733
Add
Provision for credit losses		64			(100	)		222			495			305			986			77			1,063
Deduct
Loans charged off		184			76			243			559			412			1,474			31			1,505
Less recoveries of loans charged off		(100	)		(80	)		(20	)		(66	)		(83	)		(349	)		(3	)		(352	)
Net loans charged off		84			(4	)		223			493			329			1,125			28			1,153
Other changes (a)		–			–			–			–			–			–			(65	)		(65	)
Balance at end of period	$	1,031		$	761		$	934		$	865		$	824		$	4,415		$	163		$	4,578
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
Other changes (a)		–			–			–			(33	)		–			(33	)		(20	)		(53	)
Balance at end of period	$	1,034		$	894		$	961		$	915		$	856		$	4,660		$	111		$	4,771

(a) Includes net changes in credit losses to be reimbursed by the FDIC and for the nine months ended September 30, 2013, reductions in the allowance for covered loans where the reversal of a previously recorded allowance was offset by an associated decrease in the indemnification asset.

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, 2013 Related to
Loans individually evaluated for impairment (a)	$	9	$	7	$	–	$	–	$	–	$	16	$	–	$	16
TDRs collectively evaluated for impairment		21		21		341		101		83		567		5		572
Other loans collectively evaluated for impairment		1,001		719		593		764		741		3,818		10		3,828
Loans acquired with deteriorated credit quality		–		14		–		–		–		14		148		162
Total allowance for credit losses	$	1,031	$	761	$	934	$	865	$	824	$	4,415	$	163	$	4,578
Allowance Balance at December 31, 2012 Related to
Loans individually evaluated for impairment (a)	$	10	$	30	$	–	$	–	$	–	$	40	$	–	$	40
TDRs collectively evaluated for impairment		28		29		446		153		97		753		1		754
Other loans collectively evaluated for impairment		1,013		791		489		710		751		3,754		17		3,771
Loans acquired with deteriorated credit quality		–		7		–		–		–		7		161		168
Total allowance for credit losses	$	1,051	$	857	$	935	$	863	$	848	$	4,554	$	179	$	4,733

(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, 2013
Loans individually evaluated for impairment (a)	$	171	$	253	$	–	$	–	$	–	$	424	$	48	$	472
TDRs collectively evaluated for impairment		171		360		4,357		335		281		5,504		100		5,604
Other loans collectively evaluated for impairment		68,615		37,979		45,812		16,728		46,833		215,967		5,172		221,139
Loans acquired with deteriorated credit quality		1		86		1		–		–		88		4,076		4,164
Total loans	$	68,958	$	38,678	$	50,170	$	17,063	$	47,114	$	221,983	$	9,396	$	231,379
December 31, 2012
Loans individually evaluated for impairment (a)	$	171	$	510	$	–	$	–	$	–	$	681	$	48	$	729
TDRs collectively evaluated for impairment		185		391		4,199		442		313		5,530		145		5,675
Other loans collectively evaluated for impairment		65,863		35,952		39,813		16,673		47,399		205,700		5,814		211,514
Loans acquired with deteriorated credit quality		4		100		6		–		–		110		5,301		5,411
Total loans	$	66,223	$	36,953	$	44,018	$	17,115	$	47,712	$	212,021	$	11,308	$	223,329

(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). When a loan is placed on nonaccrual status, unpaid accrued interest is reversed.

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. 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 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 a loan has demonstrated sustained repayment performance or no amounts are 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, 2013
Commercial	$	68,573	$	219	$	50	$	116	$	68,958
Commercial real estate		38,253		62		7		356		38,678
Residential mortgages (a)		48,820		350		268		732		50,170
Credit card		16,567		212		190		94		17,063
Other retail		46,598		234		76		206		47,114
Total loans, excluding covered loans		218,811		1,077		591		1,504		221,983
Covered loans		8,584		142		514		156		9,396
Total loans	$	227,395	$	1,219	$	1,105	$	1,660	$	231,379
December 31, 2012
Commercial	$	65,701	$	341	$	58	$	123	$	66,223
Commercial real estate		36,241		158		8		546		36,953
Residential mortgages (a)		42,728		348		281		661		44,018
Credit card		16,525		227		217		146		17,115
Other retail		47,109		290		96		217		47,712
Total loans, excluding covered loans		208,304		1,364		660		1,693		212,021
Covered loans		9,900		359		663		386		11,308
Total loans	$	218,204	$	1,723	$	1,323	$	2,079	$	223,329

(a) At September 30, 2013, $399 million of loans 30–89 days past due and $3.5 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 $441 million and $3.2 billion at December 31, 2012, 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, 2013
Commercial	$	66,791	$	1,103	$	1,064	$	2,167	$	68,958
Commercial real estate		36,796		578		1,304		1,882		38,678
Residential mortgages (b)		49,052		6		1,112		1,118		50,170
Credit card		16,779		–		284		284		17,063
Other retail		46,744		34		336		370		47,114
Total loans, excluding covered loans		216,162		1,721		4,100		5,821		221,983
Covered loans		9,061		39		296		335		9,396
Total loans	$	225,223	$	1,760	$	4,396	$	6,156	$	231,379
Total outstanding commitments	$	460,484	$	3,124	$	5,055	$	8,179	$	468,663
December 31, 2012
Commercial	$	63,906	$	1,114	$	1,203	$	2,317	$	66,223
Commercial real estate		34,096		621		2,236		2,857		36,953
Residential mortgages (b)		42,897		18		1,103		1,121		44,018
Credit card		16,752		–		363		363		17,115
Other retail		47,294		36		382		418		47,712
Total loans, excluding covered loans		204,945		1,789		5,287		7,076		212,021
Covered loans		10,786		61		461		522		11,308
Total loans	$	215,731	$	1,850	$	5,748	$	7,598	$	223,329
Total outstanding commitments	$	442,047	$	3,231	$	6,563	$	9,794	$	451,841

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

(b) At September 30, 2013, $3.5 billion of GNMA loans 90 days or more past due and $1.9 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 $3.2 billion and $2.4 billion at December 31, 2012, 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 generally not recognized on other impaired loans until the loan is paid off. However, interest income may be recognized for interest payments if the remaining carrying amount of the loan is believed to be collectible.

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 loans and other retail loans is primarily driven by delinquency status of individual loans or whether a loan has been modified, and considers any government guarantee where applicable. 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, 2013
Commercial	$	375	$	857	$	38	$	25
Commercial real estate		721		1,570		36		14
Residential mortgages		2,762		3,404		323		2
Credit card		335		335		101		–
Other retail		408		609		86		3
Total impaired loans, excluding GNMA and covered loans		4,601		6,775		584		44
Loans purchased from GNMA mortgage pools		1,915		1,915		29		–
Covered loans		503		1,186		34		7
Total	$	7,019	$	9,876	$	647	$	51
December 31, 2012
Commercial	$	404	$	1,200	$	40	$	39
Commercial real estate		1,077		2,251		70		4
Residential mortgages		2,748		3,341		415		–
Credit card		442		442		153		–
Other retail		443		486		101		3
Total impaired loans, excluding GNMA and covered loans		5,114		7,720		779		46
Loans purchased from GNMA mortgage pools		1,778		1,778		39		–
Covered loans		767		1,584		20		12
Total	$	7,659	$	11,082	$	838	$	58

(a) Substantially all loans classified as impaired at September 30, 2013 and December 31, 2012, had an associated allowance for credit losses.

Additional information on impaired loans follows:

	2013				2012
(Dollars in Millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Three Months Ended September 30
Commercial	$	380	$	5	$	413	$	6
Commercial real estate		819		6		1,250		12
Residential mortgages		2,765		32		2,752		31
Credit card		347		3		495		6
Other retail		417		7		354		3
Total impaired loans, excluding GNMA and covered loans		4,728		53		5,264		58
Loans purchased from GNMA mortgage pools		1,883		22		1,492		20
Covered loans		519		6		883		7
Total	$	7,130	$	81	$	7,639	$	85
Nine Months Ended September 30
Commercial	$	384	$	24	$	496	$	11
Commercial real estate		950		27		1,371		29
Residential mortgages		2,744		99		2,692		87
Credit card		380		12		529		22
Other retail		431		19		259		7
Total impaired loans, excluding GNMA and covered loans		4,889		181		5,347		156
Loans purchased from GNMA mortgage pools		1,869		68		1,363		51
Covered loans		588		21		1,042		20
Total	$	7,346	$	270	$	7,752	$	227

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 by portfolio class:

	2013						2012
(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		551	$	62	$	60		1,754	$	54	$	58
Commercial real estate		48		76		73		63		91		80
Residential mortgages		338		42		42		2,717		344		336
Credit card		6,447		39		38		14,137		52		67
Other retail		847		21		21		6,231		159		156
Total loans, excluding GNMA and covered loans		8,231		240		234		24,902		700		697
Loans purchased from GNMA mortgage pools		2,315		300		284		4,859		660		589
Covered loans		38		19		11		73		49		46
Total loans		10,584	$	559	$	529		29,834	$	1,409	$	1,332
Nine Months Ended September 30
Commercial		1,962	$	150	$	140		4,081	$	215	$	195
Commercial real estate		147		193		186		245		416		390
Residential mortgages		1,575		214		210		3,788		529		517
Credit card		20,147		122		122		39,040		189		203
Other retail		3,519		86		85		8,028		194		191
Total loans, excluding GNMA and covered loans		27,350		765		743		55,182		1,543		1,496
Loans purchased from GNMA mortgage pools		6,450		822		782		8,436		1,116		1,087
Covered loans		109		85		64		166		246		234
Total loans		33,909	$	1,672	$	1,589		63,784	$	2,905	$	2,817

Residential mortgages, home equity and second mortgages, and loans purchased from Government National Mortgage Association (“GNMA”) mortgage pools 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. For those loans modified as TDRs during the third quarter of 2013, at September 30, 2013, 142 residential mortgages, 5 home equity and second mortgage loans and 1,905 loans purchased from GNMA mortgage pools with outstanding balances of $18 million, less than $1 million and $247 million, respectively, were in a trial period and have estimated post-modification balances of $16 million, less than $1 million and $231 million, respectively, assuming permanent modification occurs at the end of the trial period.

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

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 its own 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:

	2013				2012
(Dollars in Millions)	Number of Loans		Amount Defaulted		Number of Loans		Amount Defaulted
Three Months Ended September 30
Commercial		143	$	37		195	$	2
Commercial real estate		30		18		13		12
Residential mortgages		303		41		116		30
Credit card		1,485		8		2,536		14
Other retail		278		10		189		4
Total loans, excluding GNMA and covered loans		2,239		114		3,049		62
Loans purchased from GNMA mortgage pools		492		69		248		34
Covered loans		24		25		8		3
Total loans		2,755	$	208		3,305	$	99
Nine Months Ended September 30
Commercial		483	$	42		652	$	33
Commercial real estate		72		90		96		176
Residential mortgages		673		100		427		64
Credit card		5,109		29		7,452		42
Other retail		1,164		53		531		8
Total loans, excluding GNMA and covered loans		7,501		314		9,158		323
Loans purchased from GNMA mortgage pools		4,795		615		731		106
Covered loans		49		37		49		90
Total loans		12,345	$	966		9,938	$	519

In addition to the defaults in the table above, during the three and nine months ended September 30, 2013, the Company had a total of 135 and 441 of residential mortgage loans, home equity and second mortgage loans and loans purchased from GNMA mortgage pools with aggregate outstanding balances of $18 million and $59 million, respectively, 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.

54 U. S. Bancorp

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, 2013								December 31, 2012
(Dollars in Millions)	Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total		Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total
Commercial loans	$	–	$	109	$	–	$	109	$	–	$	143	$	–	$	143
Commercial real estate loans		973		1,803		–		2,776		1,323		2,695		–		4,018
Residential mortgage loans		3,103		935		–		4,038		3,978		1,109		–		5,087
Credit card loans		–		5		–		5		–		5		–		5
Other retail loans		–		683		–		683		–		775		–		775
Losses reimbursable by the FDIC (a)		–		–		820		820		–		–		1,280		1,280
Unamortized changes in FDIC asset (b)		–		–		965		965		–		–		–		–
Covered loans		4,076		3,535		1,785		9,396		5,301		4,727		1,280		11,308
Foreclosed real estate		–		–		176		176		–		–		197		197
Total covered assets	$	4,076	$	3,535	$	1,961	$	9,572	$	5,301	$	4,727	$	1,477	$	11,505

(a) Relates to loss sharing agreements with remaining terms up to six years.

(b) Represents decreases in expected reimbursements by the FDIC as a result of decreases in expected losses on the covered loans. These amounts are amortized as a reduction in interest income on covered loans over the shorter of the expected life of the respective covered loans or the remaining contractual term of the indemnification agreements. These amounts were presented within the separate loan categories prior to January 1, 2013.

The Company adopted new indemnification asset accounting guidance effective January 1, 2013 applicable to FDIC loss-sharing agreements. The guidance requires any reduction in expected cash flows from the FDIC resulting from increases in expected cash flows from 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. Prior to adoption of this guidance, such increases in expected cash flows of purchased loans and decreases in expected cash flows of the FDIC indemnification assets were considered together and recognized over the remaining life of the loans. The adoption of this guidance did not materially affect the Company’s financial statements.

At September 30, 2013, $9 million of the purchased impaired loans included in covered loans were classified as nonperforming assets, compared with $82 million at December 31, 2012, 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.

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 14. 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

U. S. Bancorp 55

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 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 or provide debt financing promoting the development of affordable housing, community development and renewable energy sources. Some of these investments support the Company’s 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 $441 million and $227 million for the three months ended September 30, 2013, and 2012, respectively, and $981 million and $581 million for the nine months ended September 30, 2013 and 2012, respectively. These tax credits are recognized as a reduction of tax expense or, for certain investments, as a reduction to the related investment asset. The Company also recognized, in its Consolidated Statement of Income, $292 million and $263 million of costs related to these investments for the three months ended September 30, 2013 and 2012, respectively, of which $132 million and $123 million, respectively, was included in tax expense and the remainder was included in noninterest expense. The Company recognized $931 million and $677 million of costs related to these investments for the nine months ended September 30, 2013 and 2012, respectively, of which $512 million and $316 million, respectively, was included in tax expense and the remainder was included in noninterest expense.

During 2013, the Company transferred its control over the most significant activities of certain consolidated community development and tax-advantaged investment VIEs to a third party manager. The third party manager also has provided a guarantee to these VIEs related to the occurrence of certain tax credit recapture events and, therefore, has an obligation to absorb certain losses that could potentially be significant to the VIEs. Previously, the Company consolidated these VIEs because it had a controlling financial interest in the entities. After the transfer of control to the third party manager, the Company no longer had a controlling financial interest and deconsolidated the VIEs. The deconsolidation resulted in a decrease in both assets and liabilities, primarily other assets and long-term debt, respectively, of approximately $4.6 billion. The deconsolidation and remeasurement of the Company’s investment in these unconsolidated VIEs to fair value did not materially impact the Company’s Consolidated Statement of Income. The total amount of the Company’s investment in the VIEs was $1.0 billion at September 30, 2013 and is reported in other assets.

At September 30, 2013, approximately $1.8 billion of the Company’s assets and $434 million 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 $7.1 billion and $5.2 billion, respectively, at December 31, 2012. 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 with a guarantee.

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, 2013, $134 million of the held-to-maturity investment securities on the Company’s Consolidated Balance Sheet are related to the conduit, compared with $144 million at December 31, 2012.

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, 2013, $4.8 billion of available-for-sale securities and $4.7 billion of short-term borrowings on the Consolidated Balance Sheet were related to the tender option bond program, compared with $5.3 billion of available-for-sale securities and $5.0 billion of short-term borrowings at December 31, 2012.

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 the right to receive benefits that could potentially be

56 U. S. Bancorp

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, 2013 ranged from less than $1 million to $40 million, with an aggregate amount of $2.7 billion, net of $1.9 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, 2012, ranged from less than $1 million to $58 million, with an aggregate amount of $1.9 billion, net of liabilities of $1.3 billion recorded primarily 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 $7.2 billion at September 30, 2013 and $5.2 billion at December 31, 2012. The maximum exposure to loss was primarily related to community development tax-advantaged investments and included $2.6 billion at September 30, 2013 and $1.8 billion at December 31, 2012, on the Company’s Consolidated Balance Sheet, and $4.5 billion at September 30, 2013 and $3.3 billion at December 31, 2012, 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 become worthless, and the community-based business and housing projects and related tax credits completely fail and do not meet certain government compliance requirements.

Note 5 Mortgage Servicing Rights

The Company serviced $226.7 billion of residential mortgage loans for others at September 30, 2013, and $215.6 billion at December 31, 2012. 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 $108 million and $10 million for the three months ended September 30, 2013 and 2012, respectively, and net gains of $163 million and $72 million for the nine months ended September 30, 2013 and 2012, respectively. Loan servicing fees, not including valuation changes, included in mortgage banking revenue, were $192 million and $181 million for the three months ended September 30, 2013 and 2012, respectively, and $566 million and $526 million for the nine months ended September 30, 2013 and 2012, 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)	2013			2012			2013			2012
Balance at beginning of period	$	2,377		$	1,594		$	1,700		$	1,519
Rights purchased		2			10			7			39
Rights capitalized		187			224			674			700
Changes in fair value of MSRs
Due to fluctuations in market interest rates (a)		71			(123	)		503			(298	)
Due to revised assumptions or models (b)		42			(2	)		33			(19	)
Other changes in fair value (c)		(102	)		(150	)		(340	)		(388	)
Balance at end of period	$	2,577		$	1,553		$	2,577		$	1,553

(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, 2013																		December 31, 2012
(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	$	(494	)	$	(223	)	$	(107	)	$	92		$	173		$	324		$	(370	)	$	(217	)	$	(118	)	$	126		$	249		$	480
Derivative instrument hedges		427			211			102			(93	)		(174	)		(317	)		473			249			124			(121	)		(243	)		(486	)
Net sensitivity	$	(67	)	$	(12	)	$	(5	)	$	(1	)	$	(1	)	$	7		$	103		$	32		$	6		$	5		$	6		$	(6	)

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-

U. S. Bancorp 57

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, 2013												December 31, 2012
(Dollars in Millions)	MRBP			Government			Conventional (b)			Total			MRBP			Government			Conventional (b)			Total
Servicing portfolio	$	15,088		$	41,192		$	170,447		$	226,727		$	14,143		$	39,048		$	162,446		$	215,637
Fair value	$	171		$	474		$	1,932		$	2,577		$	154		$	314		$	1,232		$	1,700
Value (bps) (a)		113			115			113			114			109			80			76			79
Weighted-average servicing fees (bps)		39			32			29			30			40			33			30			31
Multiple (value/servicing fees)		2.90			3.59			3.90			3.80			2.73			2.42			2.53			2.55
Weighted-average note rate		4.76	%		4.26	%		4.19	%		4.24	%		5.13	%		4.57	%		4.48	%		4.54	%
Weighted-average age (in years)		4.0			2.5			2.4			2.5			4.2			2.4			2.5			2.6
Weighted-average expected prepayment (constant prepayment rate)		13.1	%		12.6	%		12.2	%		12.3	%		13.2	%		21.2	%		20.4	%		20.1	%
Weighted-average expected life (in years)		6.3			6.5			6.8			6.7			6.1			4.2			4.1			4.2
Weighted-average discount rate		12.0	%		11.2	%		9.8	%		10.2	%		12.1	%		11.4	%		10.0	%		10.4	%

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

(b) Represents loans sold primarily to GSEs.

Note 6 Preferred Stock

At September 30, 2013 and December 31, 2012, 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, 2013								December 31, 2012
(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
Series F		44,000		1,100		12		1,088		44,000		1,100		12		1,088
Series G		43,400		1,085		10		1,075		43,400		1,085		10		1,075
Series H		20,000		500		13		487		–		–		–		–
Total preferred stock (a)		159,910	$	4,936	$	180	$	4,756		159,910	$	4,936	$	167	$	4,769

(a) The par value of all shares issued and outstanding at September 30, 2013 and December 31, 2012, was $1.00 per share.

On May 2, 2013, the Company issued depositary shares representing an ownership interest in 20,000 shares of Series H Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the “Series H Preferred Stock”). The Series H Preferred Stock has 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 5.15 percent. The Series H Preferred Stock is redeemable at the Company’s option, in whole or in part, on or after July 15, 2018. The Series H Preferred stock is redeemable at the Company’s option, in whole, but not in part, prior to July 15, 2018 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 H Preferred Stock as Tier 1 capital for purposes of the capital adequacy guidelines of the Federal Reserve. In conjunction with the issuance of the Series H Preferred Stock, the Company redeemed at par value all shares of its Series D Non-Cumulative Perpetual Preferred Stock on June 3, 2013. The Company included an $8 million loss in its computation of earnings per diluted common share for the first nine months of 2013, which represents the stock issuance costs recorded in capital surplus upon the issuance of the Series D Non-Cumulative Perpetual Preferred Stock that were reclassified to retained earnings on the redemption date.

For further information on preferred stock, refer to Note 14 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

58 U. S. Bancorp

Note 7 Accumulated Other Comprehensive Income (Loss)

Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to accumulated other comprehensive income (loss). The reconciliation of the transactions affecting accumulated other comprehensive income (loss) included in shareholders’ equity is as follows:

Three Months Ended September 30 (Dollars in Millions)	Unrealized Gains (Losses) on Securities Available-For-Sale			Unrealized Gains (Losses) on Securities Transferred From Available-For- Sale to Held-To- Maturity			Unrealized Gains (Losses) on Derivative Hedges			Unrealized Gains (Losses) on Retirement Plans			Foreign Currency Translation			Total
2013
Balance at beginning of period	$	185		$	84		$	(313	)	$	(1,184	)	$	(60	)	$	(1,288	)
Changes in unrealized gains and losses		(237	)		–			(17	)		38			–			(216	)
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		1			–			–			–			–			1
Foreign currency translation adjustment		–			–			–			–			13			13
Reclassification to earnings of realized gains and losses		3			(13	)		47			62			–			99
Applicable income taxes		89			5			(11	)		(38	)		(5	)		40
Balance at end of period	$	41		$	76		$	(294	)	$	(1,122	)	$	(52	)	$	(1,351	)
2012
Balance at beginning of period	$	504		$	134		$	(447	)	$	(977	)	$	(44	)	$	(830	)
Changes in unrealized gains and losses		300			–			(30	)		–			–			270
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		2			–			–			–			–			2
Foreign currency translation adjustment		–			–			–			–			26			26
Reclassification to earnings of realized gains and losses		(1	)		(21	)		53			38			–			69
Applicable income taxes		(115	)		8			(9	)		(14	)		(10	)		(140	)
Balance at end of period	$	690		$	121		$	(433	)	$	(953	)	$	(28	)	$	(603	)

Nine Months Ended September 30 (Dollars in Millions)	Unrealized Gains (Losses) on Securities Available-For-Sale			Unrealized Gains (Losses) on Securities Transferred From Available-For- Sale to Held-To- Maturity			Unrealized Gains (Losses) on Derivative Hedges			Unrealized Gains (Losses) on Retirement Plans			Foreign Currency Translation			Total
2013
Balance at beginning of period	$	679		$	107		$	(404	)	$	(1,265	)	$	(40	)	$	(923	)
Changes in unrealized gains and losses		(1,032	)		–			33			37			–			(962	)
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		8			–			–			–			–			8
Foreign currency translation adjustment		–			–			–			–			(20	)		(20	)
Reclassification to earnings of realized gains and losses		(8	)		(50	)		142			186			–			270
Applicable income taxes		394			19			(65	)		(80	)		8			276
Balance at end of period	$	41		$	76		$	(294	)	$	(1,122	)	$	(52	)	$	(1,351	)
2012
Balance at beginning of period	$	360		$	–		$	(489	)	$	(1,022	)	$	(49	)	$	(1,200	)
Changes in unrealized gains and losses		738			–			(68	)		–			–			670
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		3			–			–			–			–			3
Transfer of securities from available-for-sale to held-to-maturity		(224	)		224			–			–			–			–
Foreign currency translation adjustment		–			–			–			–			34			34
Reclassification to earnings of realized gains and losses		18			(28	)		158			112			–			260
Applicable income taxes		(205	)		(75	)		(34	)		(43	)		(13	)		(370	)
Balance at end of period	$	690		$	121		$	(433	)	$	(953	)	$	(28	)	$	(603	)

U. S. Bancorp 59

Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income and into earnings for the periods presented, is as follows:

	Impact to Net Income
(Dollars in Millions)	Three Months Ended September 30, 2013			Nine Months Ended September 30, 2013			Affected Line Item in the Consolidated Statement of Income
Unrealized gains (losses) on securities available-for-sale
Realized gains (losses) on sale of securities	$	–		$	21		Total securities gains (losses), net
Other-than-temporary impairment recognized in earnings		(3	)		(13	)
		(3	)		8		Total before tax
		1			(3	)	Applicable income taxes
		(2	)		5		Net-of-tax
Unrealized gains (losses) on securities transferred from available-for-sale to held-to-maturity
Amortization of unrealized gains		13			50		Interest income
		(5	)		(19	)	Applicable income taxes
		8			31		Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges		(47	)		(142	)	Net interest income
		18			55		Applicable income taxes
		(29	)		(87	)	Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses), prior service cost (credit) and transition obligation (asset) amortization		(62	)		(186	)	Employee benefits expense
		24			72		Applicable income taxes
		(38	)		(114	)	Net-of-tax
Total impact to net income	$	(61	)	$	(165	)

Note 8 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)	2013			2012			2013			2012
Net income attributable to U.S. Bancorp	$	1,468		$	1,474		$	4,380		$	4,227
Preferred dividends		(61	)		(64	)		(189	)		(174	)
Impact of preferred stock redemption (a)		–			–			(8	)		–
Earnings allocated to participating stock awards		(7	)		(6	)		(20	)		(19	)
Net income applicable to U.S. Bancorp common shareholders	$	1,400		$	1,404		$	4,163		$	4,034
Average common shares outstanding		1,832			1,886			1,844			1,892
Net effect of the exercise and assumed purchase of stock awards		11			11			10			9
Average diluted common shares outstanding		1,843			1,897			1,854			1,901
Earnings per common share	$	.76		$	.74		$	2.26		$	2.13
Diluted earnings per common share	$	.76		$	.74		$	2.25		$	2.12

(a) Represents stock issuance costs originally recorded in capital surplus upon the issuance of the Company’s Series D Non-Cumulative Perpetual Preferred Stock that were reclassified to retained earnings on the redemption date.

Options outstanding at September 30, 2013, to purchase 9 million common shares for the nine months ended September 30, 2013, and 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, were not included in the computation of diluted earnings per share because they were antidilutive. Convertible senior debentures outstanding at September 30, 2012, 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 for both the three months and nine months ended September 30, 2012, because they were antidilutive.

60 U. S. Bancorp

Note 9 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)	2013			2012			2013			2012			2013			2012			2013			2012
Service cost	$	42		$	33		$	1		$	2		$	126		$	97		$	3		$	4
Interest cost		43			42			1			1			128			126			3			5
Expected return on plan assets		(44	)		(48	)		–			(1	)		(132	)		(143	)		(1	)		(2	)
Prior service cost (credit) and transition obligation (asset) amortization		(1	)		(2	)		–			–			(4	)		(4	)		–			–
Actuarial loss (gain) amortization		66			41			(3	)		(1	)		198			121			(8	)		(5	)
Net periodic benefit cost	$	106		$	66		$	(1	)	$	1		$	316		$	197		$	(3	)	$	2

Note 10 Income Taxes

The components of income tax expense were:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in Millions)	2013		2012		2013			2012
Federal
Current	$	390	$	461	$	1,506		$	1,416
Deferred		57		50		(35	)		26
Federal income tax		447		511		1,471			1,442
State
Current		84		77		161			239
Deferred		11		5		(3	)		3
State income tax		95		82		158			242
Total income tax provision	$	542	$	593	$	1,629		$	1,684

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)	2013			2012			2013			2012
Tax at statutory rate	$	690		$	709		$	2,061		$	2,030
State income tax, at statutory rates, net of federal tax benefit		62			53			102			157
Tax effect of
Tax credits, net of related expenses (a)		(176	)		(120	)		(394	)		(322	)
Tax-exempt income		(52	)		(55	)		(159	)		(165	)
Noncontrolling interests		13			15			42			39
Other items		5			(9	)		(23	)		(55	)
Applicable income taxes	$	542		$	593		$	1,629		$	1,684

(a) Excludes tax credits of $209 million for the three and nine months ended September 30, 2013 which were recognized as a reduction to the related investment asset.

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, 2013, the federal taxing authority has completed its examination of the Company through the fiscal year ended December 31, 2010. The years open to examination by foreign, state and local government authorities vary by jurisdiction.

The Company’s net deferred tax liability was $1.2 billion at September 30, 2013, and $1.3 billion at December 31, 2012.

Note 11 Derivative Instruments

In the ordinary course of business, the Company enters into derivative transactions to manage various risks and to accommodate the business requirements of its customers. The Company recognizes all derivatives on 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

U. S. Bancorp 61

hedge”); a hedge of a forecasted transaction or the variability of cash flows to be received or 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”). 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 interest rate swaps the Company uses to hedge the change in fair value related to interest rate changes of its underlying fixed-rate debt. 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, 2013, and the change in fair value attributed to hedge ineffectiveness was not material.

Cash Flow Hedges These derivatives are interest rate swaps the Company uses to hedge the forecasted cash flows from its 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 remain within other comprehensive income (loss). At September 30, 2013, the Company had $294 million (net-of-tax) of realized and unrealized losses on derivatives classified as cash flow hedges recorded in other comprehensive income (loss), compared with $404 million (net-of-tax) at December 31, 2012. The estimated amount to be reclassified from other comprehensive income (loss) into earnings during the remainder of 2013 and the next 12 months are losses of $30 million (net-of-tax) and $116 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, 2013, 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 occasionally 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, 2013. There were no non-derivative debt instruments designated as net investment hedges at September 30, 2013 or December 31, 2012.

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 (“MLHFS”) 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 MLHFS 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.

62 U. S. Bancorp

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, 2013
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	500	$	21		2.34	$	–	$	–		–
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		272		17		9.02		4,288		548		2.71
Receive fixed/pay floating swaps		7,000		31		1.10		–		–		–
Net investment hedges
Foreign exchange forward contracts		–		–		–		925		11		.05
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		4,418		88		.09		34		8		.08
Sell		41		2		.20		6,203		122		.09
Options
Purchased		2,325		–		.07		–		–		–
Written		1,800		34		.09		9		–		.02
Receive fixed/pay floating swaps		3,220		83		10.23		–		–		–
Foreign exchange forward contracts		1,980		4		.02		2,695		6		.02
Equity contracts		8		–		1.72		66		–		1.89
Credit contracts		1,177		4		4.12		2,495		11		4.91
Total	$	22,741	$	284			$	16,715	$	706
December 31, 2012
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	500	$	30		3.09	$	–	$	–		–
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		32		–		9.88		4,528		718		3.79
Receive fixed/pay floating swaps		7,000		45		1.84		–		–		–
Net investment hedges
Foreign exchange forward contracts		758		1		.07		–		–		–
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		11,164		138		.07		2,921		13		.04
Sell		6,299		18		.11		12,223		57		.09
Options
Purchased		2,435		–		.07		–		–		–
Written		4,991		123		.12		4		–		.06
Receive fixed/pay floating swaps		350		1		10.21		3,775		14		10.21
Foreign exchange forward contracts		618		4		.03		1,383		6		.01
Equity contracts		31		–		2.80		27		–		2.46
Credit contracts		1,056		3		4.56		1,947		10		3.11
Total	$	35,234	$	363			$	26,808	$	818

U. S. Bancorp 63

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, 2013
Interest rate contracts
Receive fixed/pay floating swaps	$	13,562	$	736		5.30	$	5,138	$	70		4.98
Pay fixed/receive floating swaps		4,700		76		5.15		14,089		691		5.26
Options
Purchased		3,681		28		4.46		107		1		1.12
Written		107		1		1.12		3,681		28		4.46
Foreign exchange rate contracts
Forwards, spots and swaps		10,392		411		.71		9,688		375		.68
Options
Purchased		367		9		.64		–		–		–
Written		–		–		–		367		9		.64
Total	$	32,809	$	1,261			$	33,070	$	1,174
December 31, 2012
Interest rate contracts
Receive fixed/pay floating swaps	$	16,671	$	1,085		4.78	$	1,090	$	15		9.30
Pay fixed/receive floating swaps		928		14		11.12		16,923		1,042		4.74
Options
Purchased		3,046		16		5.24		28		–		4.42
Written		286		–		.75		2,788		16		5.68
Foreign exchange rate contracts
Forwards, spots and swaps		12,186		322		.43		11,861		286		.44
Options
Purchased		323		6		.55		–		–		–
Written		–		–		–		323		6		.55
Total	$	33,440	$	1,443			$	33,013	$	1,365

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)	2013			2012			2013			2012			2013			2012			2013			2012
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts (a)	$	(11	)	$	(19	)	$	(30	)	$	(33	)	$	22		$	(42	)	$	(88	)	$	(98	)
Net investment hedges
Foreign exchange forward contracts		(29	)		–			–			–			(23	)		(6	)		–			–
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, 2013 and 2012.

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

64 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:

			Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	Location of Gains (Losses) Recognized in Earnings		2013			2012			2013			2012
Asset and Liability Management Positions
Fair value hedges (a)
Interest rate contracts		Other noninterest income	$	–		$	2		$	(7	)	$	5
Foreign exchange cross-currency swaps		Other noninterest income		–			–			–			42
Other economic hedges
Interest rate contracts
Futures and forwards		Mortgage banking revenue		33			(44	)		569			67
Purchased and written options		Mortgage banking revenue		54			290			200			689
Receive fixed/pay floating swaps		Mortgage banking revenue		(5	)		48			(264	)		186
Foreign exchange forward contracts		Commercial products revenue		(16	)		(25	)		18			(62	)
Equity contracts		Compensation expense		–			1			1			2
Credit contracts		Other noninterest income/expense		2			(2	)		1			(8	)
Customer-Related Positions
Interest rate contracts
Receive fixed/pay floating swaps		Other noninterest income		13			(16	)		(288	)		(10	)
Pay fixed/receive floating swaps		Other noninterest income		(10	)		19			298			15
Foreign exchange rate contracts
Forwards, spots and swaps		Commercial products revenue		15			13			36			36

(a) Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were both zero for the three months ended September 30, 2013, and $(2) million and zero for the three months ended September 30, 2012, respectively. Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were $7 million and zero for the nine months ended September 30, 2013, respectively, and $(5) million and $(44) million for the nine months ended September 30, 2012, respectively. The ineffective portion was immaterial for the three and nine months ended September 30, 2013 and 2012.

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 arrangements and, where possible, by requiring collateral arrangements. A master netting arrangement allows two counterparties, who have multiple derivative contracts with each other, the ability to net settle amounts under all contracts, including any related collateral, through a single payment and in a single currency. Collateral arrangements require the counterparty to deliver, on a daily basis, collateral (typically cash or U.S. Treasury and agency securities) equal to the Company’s net derivative receivable. For highly-rated counterparties, the collateral arrangements may include minimum dollar 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 arrangements are predominately 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 arrangements, 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 arrangements that were in a net liability position at September 30, 2013, was $1.1 billion. At September 30, 2013, the Company had $862 million of cash posted as collateral against this net liability position.

Note 12 Netting Arrangements for Certain Financial Instruments

The majority of the Company’s derivative portfolio consists of bilateral over-the-counter trades. However, due to legislative changes effective during the first nine months of 2013, certain interest rate swaps and credit contracts need to be centrally cleared through clearinghouses. In addition, a small portion of the Company’s derivative positions are exchange-traded. These are predominately U.S. Treasury futures or options on U.S. Treasury futures. Of the Company’s $105.3 billion of total notional amount of derivative positions at September 30, 2013, $6.7 billion related to those centrally cleared through clearinghouses and $3.3 billion related to those that were exchange-traded. Irrespective of how derivatives are traded, the Company’s derivative contracts include offsetting rights (referred to as netting arrangements), and depending on expected volume, credit risk, and counterparty preference, collateral maintenance may be required. For all derivatives, fair value is determined daily and, depending on the collateral maintenance requirements, the

U. S. Bancorp 65

Company and a counterparty may receive or deliver collateral, based upon the net fair value of all derivative positions between the Company and the counterparty. Collateral is typically cash, but securities may be allowed under collateral arrangements with certain counterparties. Receivables and payables related to cash collateral are included in other assets and other liabilities on the Consolidated Balance Sheet, along with the related derivative asset and liability fair values. Any securities pledged to counterparties as collateral remain on the Consolidated Balance Sheet. Securities received from counterparties as collateral are not recognized on the Consolidated Balance Sheet, unless the counterparty defaults. Securities used as collateral can be sold, re-pledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party. Refer to Note 11 for further discussion of the Company’s derivatives, including collateral arrangements.

As part of the Company’s treasury and broker-dealer operations, the Company executes transactions that are treated as securities sold under agreements to repurchase or securities purchased under agreements to resell, both of which are accounted for as collateralized financings. Securities sold under agreements to repurchase include repurchase agreements and securities loaned transactions. Securities purchased under agreements to resell include reverse repurchase agreements and securities borrowed transactions. For securities sold under agreements to repurchase, the Company records a liability for the cash received, which is included in short-term borrowings on the Consolidated Balance Sheet. For securities purchased under agreements to resell, the Company records a receivable for the cash paid, which is included in other assets on the Consolidated Balance Sheet.

Securities transferred to counterparties under repurchase agreements and securities loaned transactions continue to be recognized on the Consolidated Balance Sheet, are measured at fair value, and are included in investment securities or other assets. Securities received from counterparties under reverse repurchase agreements and securities borrowed transactions are not recognized on the Consolidated Balance Sheet unless the counterparty defaults. Under all transactions, the fair values of the securities are determined daily, and additional cash is obtained or refunded to counterparties where appropriate. The securities transferred under repurchase and reverse repurchase transactions typically are U.S. Treasury securities or agency mortgage-backed securities. The securities loaned or borrowed are typically high-grade corporate bonds traded by the Company’s broker-dealer. The securities transferred can be sold, repledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party.

The Company executes its derivative, repurchase/reverse repurchase and securities loaned/borrowed transactions under the respective industry standard agreements. These agreements include master netting arrangements that allow for multiple contracts executed with the same counterparty to be viewed as a single arrangement. This allows for net settlement of a single amount on a daily basis. In the event of default, the master netting arrangement provides for close-out netting, which allows all positions with the defaulting counterparty to be terminated and net settled with a single payment amount.

The Company has elected to offset the assets and liabilities under netting arrangements for the balance sheet presentation of the majority of its derivative counterparties, excluding centrally cleared derivative contracts due to current uncertainty about the legal enforceability of netting arrangements with the clearinghouses. The netting occurs at the counterparty level, and includes all assets and liabilities related to the derivative contracts, including those associated with cash collateral received or pledged. The Company has not elected to offset the assets and liabilities under netting arrangements for the balance sheet presentation of repurchase/reverse repurchase and securities loaned/borrowed transactions.

66 U. S. Bancorp

The following tables provide information on the Company’s netting adjustments, and items not offset on the Consolidated Balance Sheet but available for offset in the event of default:

	Gross Recognized Assets		Gross Amounts Offset on the Consolidated Balance Sheet (a)			Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet						Net Amount
(Dollars in Millions)								Financial Instruments (b)			Collateral Received (c)
September 30, 2013
Derivative assets (d)	$	1,362	$	(572	)	$	790	$	(32	)	$	–		$	758
Reverse repurchase agreements		150		–			150		(35	)		(115	)		–
Securities borrowed		527		–			527		(1	)		(510	)		16
Total	$	2,039	$	(572	)	$	1,467	$	(68	)	$	(625	)	$	774
December 31, 2012
Derivative assets (d)	$	1,546	$	(418	)	$	1,128	$	(148	)	$	–		$	980
Reverse repurchase agreements		363		–			363		(44	)		(319	)		–
Securities borrowed		368		–			368		–			(356	)		12
Total	$	2,277	$	(418	)	$	1,859	$	(192	)	$	(675	)	$	992

(a) Includes $75 million and $79 million of cash collateral related payables that were netted against derivative assets at September 30, 2013 and December 31, 2012, respectively.

(b) For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any repurchase agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in the event of counterparty default.

(c) Includes the fair value of securities received by the Company from the counterparty. These securities are not included on the Consolidated Balance Sheet unless the counterparty defaults.

(d) Excludes $183 million and $260 million of derivative assets centrally cleared or otherwise not subject to netting arrangements at September 30, 2013 and December 31, 2012, respectively.

	Gross Recognized Liabilities		Gross Amounts Offset on the Consolidated Balance Sheet (a)			Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet						Net Amount
(Dollars in Millions)								Financial Instruments (b)			Collateral Pledged (c)
September 30, 2013
Derivative liabilities (d)	$	1,825	$	(1,358	)	$	467	$	(32	)	$	–		$	435
Repurchase agreements		1,940		–			1,940		(35	)		(1,905	)		–
Securities loaned		134		–			134		(1	)		(132	)		1
Total	$	3,899	$	(1,358	)	$	2,541	$	(68	)	$	(2,037	)	$	436
December 31, 2012
Derivative liabilities (d)	$	2,178	$	(1,549	)	$	629	$	(148	)	$	–		$	481
Repurchase agreements		3,389		–			3,389		(44	)		(3,345	)		–
Securities loaned		–		–			–		–			–			–
Total	$	5,567	$	(1,549	)	$	4,018	$	(192	)	$	(3,345	)	$	481

(a) Includes $862 million and $1.2 billion of cash collateral related receivables that were netted against derivative liabilities at September 30, 2013 and December 31, 2012, respectively.

(b) For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse repurchase agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be offset in the event of counterparty default.

(c) Includes the fair value of securities pledged by the Company to the counterparty. These securities are included on the Consolidated Balance Sheet unless the Company defaults.

(d) Excludes $55 million and $5 million of derivative liabilities centrally cleared or otherwise not subject to netting arrangements at September 30, 2013 and December 31, 2012, respectively.

Note 13 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 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.

U. S. Bancorp 67

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, 2013 and 2012, 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, 2013 and 2012, 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.

68 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. 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 and certain corporate debt securities.

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 $5 million net loss and a $241 million net gain for the three months ended September 30, 2013 and 2012, respectively, and a $326 million net loss and a $501 million net gain for the nine months ended September 30, 2013 and 2012, 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 on 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 69

Mortgage Servicing Rights MSRs are valued using a discounted cash flow methodology. 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, publicly available data 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 observable market activity for MSRs on comparable portfolios, and, 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 arrangements, as well as collateral received or provided under collateral arrangements. 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 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 assumptions about 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.

70 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. Included in short-term borrowings is the Company’s obligation on securities sold short, which is required to be accounted for at fair value per applicable accounting guidance. Fair value for other short-term borrowings 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. Increases in prepayment rates for Level 3 securities 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 71

The following table shows the significant valuation assumption ranges for Level 3 available-for-sale investment securities at September 30, 2013:

	Minimum			Maximum			Average
Residential Prime Non-Agency Mortgage-Backed Securities (a)
Estimated lifetime prepayment rates		6	%		20	%		13	%
Lifetime probability of default rates		–			7			4
Lifetime loss severity rates		25			65			43
Discount margin		2			6			4
Residential Non-Prime Non-Agency Mortgage-Backed Securities (b)
Estimated lifetime prepayment rates		2	%		10	%		6	%
Lifetime probability of default rates		4			11			7
Lifetime loss severity rates		15			70			54
Discount margin		1			6			3
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		8			8			8

(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, 2013:

	Minimum			Maximum			Average
Expected prepayment		10	%		22	%		12	%
Discount rate		10			13			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, 2013:

	Minimum			Maximum			Average
Expected loan close rate		32	%		100	%		76	%
Inherent MSR value (basis points per loan)		46			219			108

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, 2013, the minimum, maximum and average credit valuation adjustment as a percentage of the derivative contract fair value prior to adjustment was 0 percent, 95 percent and 6 percent, respectively.

72 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, 2013
Available-for-sale securities
U.S. Treasury and agencies	$	463	$	1,058	$	–	$	–		$	1,521
Mortgage-backed securities
Residential
Agency		–		29,220		–		–			29,220
Non-agency
Prime (a)		–		–		500		–			500
Non-prime (b)		–		–		303		–			303
Commercial
Agency		–		169		–		–			169
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		–		25		–		–			25
Other		–		570		40		–			610
Obligations of state and political subdivisions		–		5,820		–		–			5,820
Obligations of foreign governments		–		6		–		–			6
Corporate debt securities		–		633		9		–			642
Perpetual preferred securities		–		209		–		–			209
Other investments		265		17		–		–			282
Total available-for-sale		728		37,727		852		–			39,307
Mortgage loans held for sale		–		3,844		–		–			3,844
Mortgage servicing rights		–		–		2,577		–			2,577
Derivative assets		–		875		670		(572	)		973
Other assets		85		922		–		–			1,007
Total	$	813	$	43,368	$	4,099	$	(572	)	$	47,708
Derivative liabilities	$	–	$	1,827	$	53	$	(1,358	)	$	522
Short-term borrowings (c)		231		533		–		–			764
Total	$	231	$	2,360	$	53	$	(1,358	)	$	1,286
December 31, 2012
Available-for-sale securities
U.S. Treasury and agencies	$	491	$	735	$	–	$	–		$	1,226
Mortgage-backed securities
Residential
Agency		–		29,495		–		–			29,495
Non-agency
Prime (a)		–		–		624		–			624
Non-prime (b)		–		–		355		–			355
Commercial
Agency		–		193		–		–			193
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		–		42		–		–			42
Other		–		577		15		–			592
Obligations of state and political subdivisions		–		6,455		–		–			6,455
Obligations of foreign governments		–		6		–		–			6
Corporate debt securities		–		722		9		–			731
Perpetual preferred securities		–		218		–		–			218
Other investments		187		15		–		–			202
Total available-for-sale		678		38,458		1,003		–			40,139
Mortgage loans held for sale		–		7,957		–		–			7,957
Mortgage servicing rights		–		–		1,700		–			1,700
Derivative assets		–		572		1,234		(418	)		1,388
Other assets		94		386		–		–			480
Total	$	772	$	47,373	$	3,937	$	(418	)	$	51,664
Derivative liabilities	$	–	$	2,128	$	55	$	(1,549	)	$	634
Short-term borrowings (c)		50		351		–		–			401
Total	$	50	$	2,479	$	55	$	(1,549	)	$	1,035

(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) Represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.

U. S. Bancorp 73

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
2013
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	547	$	(2	)	$	(4	)	$	–	$	–		$	(41	)	$	–		$	–		$	500	$	(4	)
Non-prime (b)		319		(3	)		(4	)		–		–			(9	)		–			–			303		(4	)
Asset-backed securities
Other		40		1			(2	)		3		–			(2	)		–			–			40		(2	)
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		915		(4	)(c)		(10	)(f)		3		–			(52	)		–			–			852		(10	)
Mortgage servicing rights		2,377		11	(d)		–			2		–			–			187	(g)		–			2,577		11	(d)
Net derivative assets and liabilities		423		182	(e)		–			–		(2	)		–			–			14			617		62	(h)
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	)(i)		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	(j)		–			1		(1	)		–			–			(713	)		1,490		(557	)(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 $(3) million included in securities gains (losses) and $(1) million included in interest income.

(d) Included in mortgage banking revenue.

(e) Approximately $89 million included in other noninterest income and $93 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 $(28) million included in other noninterest income and $90 million included in mortgage banking revenue.

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

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

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

74 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
2013
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	624	$	(6	)	$	4		$	–	$	–		$	(122	)	$	–		$	–		$	500	$	4
Non-prime (b)		355		(11	)		13			–		(20	)		(34	)		–			–			303		14
Asset-backed securities
Other		15		2			(1	)		28		–			(4	)		–			–			40		(1	)
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		1,003		(15	)(c)		16	(f)		28		(20	)		(160	)		–			–			852		17
Mortgage servicing rights		1,700		196	(d)		–			7		–			–			674	(g)		–			2,577		196	(d)
Net derivative assets and liabilities		1,179		(34	)(e)		–			1		(4	)		–			–			(525	)		617		(565	)(h)
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	)(i)		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	(j)		–			1		(3	)		–			–			(1,786	)		1,490		(1,407	)(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 $(13) million included in securities gains (losses) and $(2) million included in interest income.

(d) Included in mortgage banking revenue.

(e) Approximately $(122) million included in other noninterest income and $88 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 $(301)million included in other noninterest income and $(264) million included in mortgage banking revenue.

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

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

(k) Approximately $6 million included in other noninterest income and $1.4 billion 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 balances of assets measured at fair value on a nonrecurring basis:

	September 30, 2013								December 31, 2012
(Dollars in Millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Loans (a)	$	–	$	–	$	94	$	94	$	–	$	–	$	140	$	140
Other assets (b)		–		–		144		144		–		–		194		194

(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.

U. S. Bancorp 75

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)	2013		2012		2013		2012
Loans (a)	$	22	$	12	$	55	$	51
Other assets (b)		14		42		73		129

(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, 2013							December 31, 2012
(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	$	3,844	$	3,693	$	151		$	7,957	$	7,588	$	369
Nonaccrual loans		10		15		(5	)		8		13		(5	)
Loans 90 days or more past due		1		1		–			2		3		(1	)

Disclosures about Fair Value of Financial Instruments

The following table summarizes the estimated fair value for financial instruments as of September 30, 2013 and December 31, 2012, 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, 2013										December 31, 2012
	Carrying Amount		Fair Value								Carrying Amount		Fair Value
(Dollars in Millions)			Level 1		Level 2		Level 3		Total				Level 1		Level 2		Level 3		Total
Financial Assets
Cash and due from banks	$	11,615	$	11,615	$	–	$	–	$	11,615	$	8,252	$	8,252	$	–	$	–	$	8,252
Federal funds sold and securities purchased under resale agreements		259		–		259		–		259		437		–		437		–		437
Investment securities held-to-maturity		36,904		2,912		33,611		109		36,632		34,389		2,984		31,845		123		34,952
Loans held for sale (a)		14		–		–		14		14		19		–		–		19		19
Loans (b)		227,027		–		–		228,087		228,087		218,765		–		–		220,354		220,354
Other financial instruments		2,149		–		1,166		1,000		2,166		7,367		–		1,228		6,157		7,385
Financial Liabilities
Deposits		261,716		–		261,792		–		261,792		249,183		–		249,594		–		249,594
Short-term borrowings (c)		25,364		–		25,307		–		25,307		25,901		–		25,917		–		25,917
Long-term debt		18,750		–		19,216		–		19,216		25,516		–		26,205		–		26,205

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

(b) Excludes loans measured at fair value on a nonrecurring basis.

(c) Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.

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 $410 million and $415 million at September 30, 2013 and December 31, 2012, respectively. The carrying value of other guarantees was $368 million and $452 million at September 30, 2013 and December 31, 2012, respectively.

76 U. S. Bancorp

Note 14 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 October 19, 2012, Visa signed a settlement agreement to resolve class action claims associated with the multi-district interchange litigation, the largest of the remaining Visa Litigation matters. The settlement has not yet been finally approved by the court, is not yet binding, and has been challenged by some class members. At September 30, 2013, the carrying amount of the Company’s liability related to the Visa Litigation matters, net of its share of the escrow fundings, was $59 million and included the Company’s estimate of its remaining share of the temporary reduction in interchange rates specified in the settlement 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 13.

Other Guarantees and Contingent Liabilities

The following table is a summary of other guarantees and contingent liabilities of the Company at September 30, 2013:

(Dollars in Millions)	Collateral Held		Carrying Amount		Maximum Potential Future Payments
Standby letters of credit	$	–	$	71	$	17,339
Third-party borrowing arrangements		–		–		17
Securities lending indemnifications		5,494		–		5,326
Asset sales		–		267		3,250	(a)
Merchant processing		840		69		86,584
Contingent consideration arrangements		–		14		17
Tender option bond program guarantee		4,762		–		4,711
Minimum revenue guarantees		–		12		12
Other		–		6		553

(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, Europe, Mexico and Brazil through wholly-owned subsidiaries and joint ventures with other financial institutions. In the event a merchant was unable to fulfill product or services subject to delayed delivery, such as airline tickets, 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, 2013, the value of airline

U. S. Bancorp 77

tickets purchased to be delivered at a future date was $6.2 billion. The Company held collateral of $687 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, 2013, the Company had reserved $176 million for potential losses from representation and warranty obligations, compared with $240 million at December 31, 2012. 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)	2013			2012			2013			2012
Balance at beginning of period	$	190		$	216		$	240		$	160
Net realized losses		(13	)		(32	)		(52	)		(88	)
Change in reserve		(1	)		36			(12	)		148
Balance at end of period	$	176		$	220		$	176		$	220

As of September 30, 2013 and December 31, 2012, the Company had $114 million and $131 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.

Litigation and Regulatory Matters The Company is subject to various litigation and regulatory matters that arise in the ordinary course of its business. The Company establishes reserves for such matters when potential losses become probable and can be reasonably estimated. The Company believes the ultimate resolution of existing legal and regulatory matters will not have a material adverse effect on the financial condition, results of operations or cash flows of the Company. However, changes in circumstances or additional information could result in additional accruals or resolution in excess of established accruals, which could adversely affect the Company’s results from operations, potentially materially.

Certain federal and state governmental authorities reached settlement agreements in 2012 and 2013 with other major financial institutions regarding their mortgage origination, servicing, and foreclosure activities. Those governmental authorities have had settlement discussions with other financial institutions, including the Company. The Company has not agreed to any settlement; 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 is currently subject to other investigations and examinations by government agencies and bank regulators concerning mortgage-related practices, including those related to origination practices for Federal Housing Administration insured residential home loans, compliance with underwriting guidelines relating to residential home loans sold to GSEs, and various practices related to lender-placed insurance. The Company is cooperating fully with these examinations and investigations, any of which could lead to administrative or legal proceedings or settlements involving remedies including fines, penalties, restitution or alterations in the Company’s business practices and in additional costs and expenses.

Due to their complex nature, it can be years before litigation and regulatory matters are resolved. For those litigation and regulatory matters where the Company has information to develop an estimate or range of loss, the Company believes the upper end of reasonably possible losses in aggregate, in excess of any reserves established for matters where a loss is considered probable, is approximately $200 million. This estimate is subject to significant judgment and uncertainties and the matters underlying the estimate will change from time to time. Actual results may vary significantly from the current estimates.

For additional information on the nature of the Company’s guarantees and contingent liabilities, refer to Note 21 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

78 U. S. Bancorp

Note 15 Subsequent Events

The Company has evaluated the impact of events that have occurred subsequent to September 30, 2013 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 79

U.S. Bancorp

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

	For the Three Months Ended September 30,
	2013								2012
(Dollars in Millions) (Unaudited)	Average Balances			Interest		Yields and Rates			Average Balances			Interest		Yields and Rates			% Change Average Balances
Assets
Investment securities	$	74,988		$	453		2.42	%	$	72,454		$	475		2.62	%		3.5	%
Loans held for sale		4,965			46		3.77			8,432			76		3.59			(41.1	)
Loans (b)
Commercial		68,064			543		3.17			62,192			546		3.50			9.4
Commercial real estate		38,501			400		4.12			36,630			413		4.49			5.1
Residential mortgages		49,139			495		4.02			40,969			464		4.52			19.9
Credit card		16,931			429		10.06			16,551			425		10.22			2.3
Other retail		46,994			582		4.91			47,991			621		5.15			(2.1	)
Total loans, excluding covered loans		219,629			2,449		4.43			204,333			2,469		4.81			7.5
Covered loans		9,733			143		5.84			12,595			201		6.36			(22.7	)
Total loans		229,362			2,592		4.49			216,928			2,670		4.90			5.7
Other earning assets		5,745			34		2.38			11,145			63		2.24			(48.5	)
Total earning assets		315,060			3,125		3.95			308,959			3,284		4.24			2.0
Allowance for loan losses		(4,322	)							(4,584	)							5.7
Unrealized gain (loss) on investment securities		221								1,184								(81.3	)
Other assets		41,202								40,094								2.8
Total assets	$	352,161							$	345,653								1.9
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits	$	68,264							$	68,127								.2	%
Interest-bearing deposits
Interest checking		48,235			7		.07			43,207			8		.07			11.6
Money market savings		55,982			19		.14			47,530			18		.15			17.8
Savings accounts		32,083			12		.14			29,743			17		.22			7.9
Time certificates of deposit less than $100,000		12,495			44		1.37			14,362			60		1.67			(13.0	)
Time deposits greater than $100,000		35,309			52		.59			36,312			69		.76			(2.8	)
Total interest-bearing deposits		184,104			134		.29			171,154			172		.40			7.6
Short-term borrowings		27,495			99		1.42			27,843			103		1.49			(1.2	)
Long-term debt		19,226			178		3.69			27,112			226		3.33			(29.1	)
Total interest-bearing liabilities		230,825			411		.71			226,109			501		.88			2.1
Other liabilities		11,740								11,624								1.0
Shareholders’ equity
Preferred equity		4,756								4,769								(.3	)
Common equity		35,180								33,850								3.9
Total U.S. Bancorp shareholders’ equity		39,936								38,619								3.4
Noncontrolling interests		1,396								1,174								18.9
Total equity		41,332								39,793								3.9
Total liabilities and equity	$	352,161							$	345,653								1.9
Net interest income				$	2,714							$	2,783
Gross interest margin							3.24	%							3.36	%
Gross interest margin without taxable-equivalent increments							3.17	%							3.29	%
Percent of Earning Assets
Interest income							3.95	%							4.24	%
Interest expense							.52								.65
Net interest margin							3.43	%							3.59	%
Net interest margin without taxable-equivalent increments							3.36	%							3.52	%

(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.

80 U. S. Bancorp

U.S. Bancorp

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

	For the Nine Months Ended September 30,
	2013								2012
(Dollars in Millions) (Unaudited)	Average Balances			Interest		Yields and Rates			Average Balances			Interest		Yields and Rates			% Change Average Balances
Assets
Investment securities	$	74,303		$	1,325		2.38	%	$	72,371		$	1,487		2.74	%		2.7	%
Loans held for sale		6,659			172		3.45			7,557			208		3.67			(11.9	)
Loans (b)
Commercial		66,719			1,626		3.26			59,790			1,620		3.62			11.6
Commercial real estate		37,872			1,188		4.19			36,389			1,228		4.51			4.1
Residential mortgages		47,055			1,452		4.12			39,328			1,357		4.60			19.6
Credit card		16,627			1,256		10.10			16,675			1,267		10.15			(.3	)
Other retail		47,034			1,736		4.93			47,940			1,873		5.22			(1.9	)
Total loans, excluding covered loans		215,307			7,258		4.50			200,122			7,345		4.90			7.6
Covered loans		10,375			492		6.33			13,609			633		6.21			(23.8	)
Total loans		225,682			7,750		4.59			213,731			7,978		4.98			5.6
Other earning assets		7,019			141		2.70			10,610			185		2.32			(33.8	)
Total earning assets		313,663			9,388		4.00			304,269			9,858		4.33			3.1
Allowance for loan losses		(4,403	)							(4,677	)							5.9
Unrealized gain (loss) on investment securities		785								1,000								(21.5	)
Other assets		41,003								40,215								2.0
Total assets	$	351,048							$	340,807								3.0
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits	$	67,183							$	65,423								2.7	%
Interest-bearing deposits
Interest checking		48,347			26		.07			45,522			37		.11			6.2
Money market savings		54,826			54		.13			45,977			44		.13			19.2
Savings accounts		31,809			38		.16			29,383			53		.24			8.3
Time certificates of deposit less than $100,000		13,082			147		1.50			14,695			191		1.73			(11.0	)
Time deposits greater than $100,000		33,037			168		.68			31,978			205		.86			3.3
Total interest-bearing deposits		181,101			433		.32			167,555			530		.42			8.1
Short-term borrowings		27,736			273		1.32			28,942			356		1.65			(4.2	)
Long-term debt		21,968			587		3.57			29,388			786		3.57			(25.2	)
Total interest-bearing liabilities		230,805			1,293		.75			225,885			1,672		.99			2.2
Other liabilities		12,033								11,305								6.4
Shareholders’ equity
Preferred equity		4,820								4,250								13.4
Common equity		34,855								32,855								6.1
Total U.S. Bancorp shareholders’ equity		39,675								37,105								6.9
Noncontrolling interests		1,352								1,089								24.2
Total equity		41,027								38,194								7.4
Total liabilities and equity	$	351,048							$	340,807								3.0
Net interest income				$	8,095							$	8,186
Gross interest margin							3.25	%							3.34	%
Gross interest margin without taxable-equivalent increments							3.18	%							3.27	%
Percent of Earning Assets
Interest income							4.00	%							4.33	%
Interest expense							.55								.74
Net interest margin							3.45	%							3.59	%
Net interest margin without taxable-equivalent increments							3.38	%							3.52	%

(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 81

Part II — Other Information

Item 1. Legal Proceedings — See the information set forth in Note 14 in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Report, which is incorporated herein by reference.

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, 2012, 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 2013.

Item 6. Exhibits

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, 2013, 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.

82 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
Dated: November 1, 2013		(Principal Accounting Officer and Duly Authorized Officer)

U. S. Bancorp 83

EXHIBIT 12

Computation of Ratio of Earnings to Fixed Charges

(Dollars in Millions)	Three Months Ended September 30, 2013		Nine Months Ended September 30, 2013
Earnings
1. Net income attributable to U.S. Bancorp	$	1,468	$	4,380
2. Applicable income taxes, including expense related to unrecognized tax positions		542		1,629
3. Net income attributable to U.S. Bancorp before income taxes (1 + 2)	$	2,010	$	6,009
4. Fixed charges:
a. Interest expense excluding interest on deposits*	$	276	$	857
b. Portion of rents representative of interest and amortization of debt expense		27		81
c. Fixed charges excluding interest on deposits (4a + 4b)	$	303	$	938
d. Interest on deposits		134		433
e. Fixed charges including interest on deposits (4c + 4d)	$	437	$	1,371
5. Amortization of interest capitalized	$	—	$	—
6. Earnings excluding interest on deposits (3 + 4c + 5)		2,313		6,947
7. Earnings including interest on deposits (3 + 4e + 5)		2,447		7,380
8. Fixed charges excluding interest on deposits (4c)		303		938
9. Fixed charges including interest on deposits (4e)		437		1,371
Ratio of Earnings to Fixed Charges
10. Excluding interest on deposits (line 6/line 8)		7.63		7.41
11. Including interest on deposits (line 7/line 9)		5.60		5.38

* Excludes interest expense related to unrecognized tax positions

84 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 1, 2013

U. S. Bancorp 85

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 1, 2013

86 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, 2013 (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 1, 2013

U. S. Bancorp 87

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 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

P.O. Box 43006

Providence, RI 02940-3006

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

Internet: www.computershare.com/investor

Registered or Certified Mail:

Computershare

250 Royall Street

Canton, MA 02021

Telephone representatives are available weekdays from 8:00 a.m. to 6:00 p.m. Central Standard Time, and automated support is available 24 hours a day, 7 days a week. Specific information about your account is available on Computershare’s Investor Centre^TM website.

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 Relations Contact

Sean C. O’Connor, CFA

Senior Vice President, Investor Relations

sean.oconnor@usbank.com

Phone: 612-303-0788 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, Form 10-K 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

At U.S. Bancorp, we value high ethical standards above all else. Our ethical principles – integrity, respect, responsibility and good citizenship – guide everything we do. Demonstrating these principles through our words and actions is how we put the power of US to work for our employees, customers, shareholders and communities. Each year, every employee certifies compliance with the letter and spirit of our Code of Ethics and Business Conduct. For details about our Code of Ethics and Business Conduct, visit usbank.com and click on About U.S. Bank and Working at U.S. Bank.

Diversity and Inclusion

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

Equal Opportunity and 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 on abilities, not race, color, religion, national origin or ancestry, gender, age, disability, veteran status, sexual orientation, marital status, gender identity or expression, genetic information 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-12

EXHIBIT 12

Computation of Ratio of Earnings to Fixed Charges

(Dollars in Millions)	Three Months Ended September 30, 2013		Nine Months Ended September 30, 2013
Earnings
1. Net income attributable to U.S. Bancorp	$	1,468	$	4,380
2. Applicable income taxes, including expense related to unrecognized tax positions		542		1,629
3. Net income attributable to U.S. Bancorp before income taxes (1 + 2)	$	2,010	$	6,009
4. Fixed charges:
a. Interest expense excluding interest on deposits*	$	276	$	857
b. Portion of rents representative of interest and amortization of debt expense		27		81
c. Fixed charges excluding interest on deposits (4a + 4b)	$	303	$	938
d. Interest on deposits		134		433
e. Fixed charges including interest on deposits (4c + 4d)	$	437	$	1,371
5. Amortization of interest capitalized	$	—	$	—
6. Earnings excluding interest on deposits (3 + 4c + 5)		2,313		6,947
7. Earnings including interest on deposits (3 + 4e + 5)		2,447		7,380
8. Fixed charges excluding interest on deposits (4c)		303		938
9. Fixed charges including interest on deposits (4e)		437		1,371
Ratio of Earnings to Fixed Charges
10. Excluding interest on deposits (line 6/line 8)		7.63		7.41
11. Including interest on deposits (line 7/line 9)		5.60		5.38

* Excludes interest expense related to unrecognized tax positions

84 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 1, 2013

U. S. Bancorp 85

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 1, 2013

86 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, 2013 (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 1, 2013

U. S. Bancorp 87

XML

Derivative Instruments - 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) (Asset and Liability Management Positions [Member], USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Cash Flow Hedges [Member] | Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Losses) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	$ (11)	$ (19)	$ 22	$ (42)
Derivative Instruments, Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings	(30)	(33)	(88)	(98)
Net Investment Hedges [Member] | Foreign Exchange Forward Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Losses) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	(29)		(23)	(6)
Derivative Instruments, Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
Net Investment Hedges [Member] | Non-derivative Debt Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Losses) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net		(11)		26
Derivative Instruments, Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings

XML

Earnings Per Share - Components of Earnings Per Share (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings Per Share [Abstract]
Net income attributable to U.S. Bancorp	$ 1,468	$ 1,474	$ 4,380	$ 4,227
Preferred dividends	(61)	(64)	(189)	(174)
Impact of preferred stock redemption			(8)
Earnings allocated to participating stock awards	(7)	(6)	(20)	(19)
Net income applicable to U.S. Bancorp common shareholders	$ 1,400	$ 1,404	$ 4,163	$ 4,034
Average common shares outstanding	1,832	1,886	1,844	1,892
Net effect of the exercise and assumed purchase of stock awards	11	11	10	9
Average diluted common shares outstanding	1,843	1,897	1,854	1,901
Earnings per common share	$ 0.76	$ 0.74	$ 2.26	$ 2.13
Diluted earnings per common share	$ 0.76	$ 0.74	$ 2.25	$ 2.12

XML

Employee Benefits - Components of Net Periodic Benefit Cost (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 42	$ 33	$ 126	$ 97
Interest cost	43	42	128	126
Expected return on plan assets	(44)	(48)	(132)	(143)
Prior service cost (credit) and transition obligation (asset) amortization	(1)	(2)	(4)	(4)
Actuarial loss (gain) amortization	66	41	198	121
Net periodic benefit cost	106	66	316	197
Postretirement Welfare Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	1	2	3	4
Interest cost	1	1	3	5
Expected return on plan assets		(1)	(1)	(2)
Prior service cost (credit) and transition obligation (asset) amortization
Actuarial loss (gain) amortization	(3)	(1)	(8)	(5)
Net periodic benefit cost	$ (1)	$ 1	$ (3)	$ 2

XML

Fair Values of Assets and Liabilities - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended						9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 Standby Letters of Credit and Unfunded Commitments [Member]	Dec. 31, 2012 Standby Letters of Credit and Unfunded Commitments [Member]	Sep. 30, 2013 Other Guarantees [Member]	Dec. 31, 2012 Other Guarantees [Member]	Sep. 30, 2013 Minimum [Member]	Sep. 30, 2013 Maximum [Member]	Sep. 30, 2013 Average [Member]
Fair Value Disclosures [Abstract]
Fair value measurement transfers from one level to another			$ 0	$ 0
Mortgage loans held for sale measured at fair value gain (loss)	(5)	241	(326)	501
Assumed credit valuation adjustment as percentage of underlying fair value of underlying derivative contracts									0.00%	95.00%	6.00%
Carrying value of guarantee obligations					$ 410	$ 415	$ 368	$ 452

XML

Fair Values of Assets and Liabilities - Adjusted Carrying Values for Assets Measured at Fair Value on Nonrecurring Basis (Detail) (Fair Value, Measurements, Nonrecurring [Member], USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans	$ 94	$ 140
Other assets	144	194
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans
Other assets
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans
Other assets
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans	94	140
Other assets	$ 144	$ 194

XML

Income Taxes

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Note 10 Income Taxes

The components of income tax expense were:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in Millions)	2013		2012		2013			2012
Federal
Current	$	390	$	461	$	1,506		$	1,416
Deferred		57		50		(35	)		26
Federal income tax		447		511		1,471			1,442
State
Current		84		77		161			239
Deferred		11		5		(3	)		3
State income tax		95		82		158			242
Total income tax provision	$	542	$	593	$	1,629		$	1,684

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)	2013			2012			2013			2012
Tax at statutory rate	$	690		$	709		$	2,061		$	2,030
State income tax, at statutory rates, net of federal tax benefit		62			53			102			157
Tax effect of
Tax credits, net of related expenses (a)		(176	)		(120	)		(394	)		(322	)
Tax-exempt income		(52	)		(55	)		(159	)		(165	)
Noncontrolling interests		13			15			42			39
Other items		5			(9	)		(23	)		(55	)
Applicable income taxes	$	542		$	593		$	1,629		$	1,684

(a) Excludes tax credits of $209 million for the three and nine months ended September 30, 2013 which were recognized as a reduction to the related investment asset.

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, 2013, the federal taxing authority has completed its examination of the Company through the fiscal year ended December 31, 2010. The years open to examination by foreign, state and local government authorities vary by jurisdiction.

The Company’s net deferred tax liability was $1.2 billion at September 30, 2013, and $1.3 billion at December 31, 2012.

XML

Loans and Allowance for Credit Losses - Changes in Accretable Balance for Purchased Impaired Loans (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Deteriorated Loans Transferred in [Abstract]
Balance at beginning of period	$ 1,802	$ 2,431	$ 1,709	$ 2,619
Purchases				13
Accretion	(119)	(109)	(380)	(337)
Disposals	(51)	(37)	(120)	(135)
Reclassifications (to)/from nonaccretable difference	119	58	177	191
Other		(14)	365	(22)
Balance at end of period	$ 1,751	$ 2,329	$ 1,751	$ 2,329

XML

Consolidated Statement of Income (Unaudited) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Interest Income
Loans	$ 2,568	$ 2,650	$ 7,682	$ 7,919
Loans held for sale	46	76	172	208
Investment securities	420	438	1,222	1,376
Other interest income	34	63	141	184
Total interest income	3,068	3,227	9,217	9,687
Interest Expense
Deposits	134	172	433	530
Short-term borrowings	98	103	270	353
Long-term debt	178	226	587	786
Total interest expense	410	501	1,290	1,669
Net interest income	2,658	2,726	7,927	8,018
Provision for credit losses	298	488	1,063	1,439
Net interest income after provision for credit losses	2,360	2,238	6,864	6,579
Noninterest Income
Credit and debit card revenue	244	213	702	650
Corporate payment products revenue	192	201	540	566
Merchant processing services	371	345	1,091	1,041
ATM processing services	83	87	248	263
Trust and investment management fees	280	265	842	779
Deposit service charges	180	174	493	483
Treasury management fees	134	135	408	411
Commercial products revenue	207	225	616	652
Mortgage banking revenue	328	519	1,125	1,461
Investment products fees	46	38	133	111
Securities gains (losses), net
Realized gains (losses), net		16	21	46
Total other-than-temporary impairment	(2)	(13)	(5)	(61)
Portion of other-than-temporary impairment recognized in other comprehensive income	(1)	(2)	(8)	(3)
Total securities gains (losses), net	(3)	1	8	(18)
Other	115	193	412	591
Total noninterest income	2,177	2,396	6,618	6,990
Noninterest Expense
Compensation	1,088	1,109	3,268	3,237
Employee benefits	278	225	865	714
Net occupancy and equipment	240	233	709	683
Professional services	94	144	263	364
Marketing and business development	85	96	254	285
Technology and communications	214	205	639	607
Postage, printing and supplies	76	75	230	226
Other intangibles	55	67	167	208
Other	435	455	1,197	1,446
Total noninterest expense	2,565	2,609	7,592	7,770
Income before income taxes	1,972	2,025	5,890	5,799
Applicable income taxes	542	593	1,629	1,684
Net income	1,430	1,432	4,261	4,115
Net (income) loss attributable to noncontrolling interests	38	42	119	112
Net income attributable to U.S. Bancorp	1,468	1,474	4,380	4,227
Net income applicable to U.S. Bancorp common shareholders	$ 1,400	$ 1,404	$ 4,163	$ 4,034
Earnings per common share	$ 0.76	$ 0.74	$ 2.26	$ 2.13
Diluted earnings per common share	$ 0.76	$ 0.74	$ 2.25	$ 2.12
Dividends declared per common share	$ 0.230	$ 0.195	$ 0.655	$ 0.585
Average common shares outstanding	1,832	1,886	1,844	1,892
Average diluted common shares outstanding	1,843	1,897	1,854	1,901

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Loans and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

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, 2013					December 31, 2012
(Dollars in Millions)	Amount		Percent of Total			Amount		Percent of Total
Commercial
Commercial	$	63,696		27.5	%	$	60,742		27.2	%
Lease financing		5,262		2.3			5,481		2.5
Total commercial		68,958		29.8			66,223		29.7
Commercial Real Estate
Commercial mortgages		31,467		13.6			31,005		13.9
Construction and development		7,211		3.1			5,948		2.6
Total commercial real estate		38,678		16.7			36,953		16.5
Residential Mortgages
Residential mortgages		36,484		15.8			32,648		14.6
Home equity loans, first liens		13,686		5.9			11,370		5.1
Total residential mortgages		50,170		21.7			44,018		19.7
Credit Card		17,063		7.4			17,115		7.7
Other Retail
Retail leasing		5,761		2.5			5,419		2.4
Home equity and second mortgages		15,544		6.7			16,726		7.5
Revolving credit		3,289		1.4			3,332		1.5
Installment		5,717		2.4			5,463		2.4
Automobile		13,130		5.7			12,593		5.6
Student		3,673		1.6			4,179		1.9
Total other retail		47,114		20.3			47,712		21.3
Total loans, excluding covered loans		221,983		95.9			212,021		94.9
Covered Loans		9,396		4.1			11,308		5.1
Total loans	$	231,379		100.0	%	$	223,329		100.0	%

The Company had loans of $75.3 billion at September 30, 2013, and $74.1 billion at December 31, 2012, pledged at the Federal Home Loan Bank (“FHLB”), and loans of $51.6 billion at September 30, 2013, and $48.6 billion at December 31, 2012, 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 $539 million at September 30, 2013, and $753 million at December 31, 2012. 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.”

Changes in the accretable balance for purchased impaired loans were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2013			2012			2013			2012
Balance at beginning of period	$	1,802		$	2,431		$	1,709		$	2,619
Purchases		–			–			–			13
Accretion		(119	)		(109	)		(380	)		(337	)
Disposals		(51	)		(37	)		(120	)		(135	)
Reclassifications (to)/from nonaccretable difference (a)		119			58			177			191
Other (b)		–			(14	)		365			(22	)
Balance at end of period	$	1,751		$	2,329		$	1,751		$	2,329

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

(b) The amount for the nine months ended September 30, 2013, primarily represents the reclassification of unamortized decreases in the FDIC asset (which are now presented as a separate component within the covered assets table on page 55), partially offset by the impact of changes in expectations about retaining covered single-family loans beyond the term of the indemnification agreements.

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 Federal Deposit Insurance Corporation (“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. In the migration analysis applied to risk rated loan portfolios, the Company currently uses a 12-year period of historical losses in considering actual loss experience, because it believes that period best reflects the losses incurred in the portfolio. This timeframe and the results of the analysis are evaluated quarterly to determine if they are appropriate. 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 of the loan, or the fair value of the collateral for collateral-dependent loans, rather than the migration analysis. 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, portfolio growth 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 Troubled Debt Restructuring (“TDR”) loans and purchased impaired 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, or the prior quarter effective rate, respectively. The allowance for collateral-dependent loans in the consumer lending segment is determined based on the fair value of the collateral less costs to sell. 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, refreshed loan-to-value ratios when possible, portfolio growth 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 the borrower’s ability to pay under the restructured terms, and the timing and amount of payments.

The allowance for the covered loan segment 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 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
2013
Balance at beginning of period	$	1,023		$	777		$	921		$	874		$	838		$	4,433		$	179		$	4,612
Add
Provision for credit losses		19			(22	)		70			151			84			302			(4	)		298
Deduct
Loans charged off		65			17			62			175			122			441			9			450
Less recoveries of loans charged off		(54	)		(23	)		(5	)		(15	)		(24	)		(121	)		(1	)		(122	)
Net loans charged off		11			(6	)		57			160			98			320			8			328
Other changes (a)		–			–			–			–			–			–			(4	)		(4	)
Balance at end of period	$	1,031		$	761		$	934		$	865		$	824		$	4,415		$	163		$	4,578
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
Other changes (a)		–			–			–			(33	)		–			(33	)		(10	)		(43	)
Balance at end of period	$	1,034		$	894		$	961		$	915		$	856		$	4,660		$	111		$	4,771

(a) Includes net changes in credit losses to be reimbursed by the FDIC and for the three months ended September 30, 2013, reductions in the allowance for covered loans where the reversal of a previously recorded allowance was offset by an associated decrease in the indemnification asset.

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
2013
Balance at beginning of period	$	1,051		$	857		$	935		$	863		$	848		$	4,554		$	179		$	4,733
Add
Provision for credit losses		64			(100	)		222			495			305			986			77			1,063
Deduct
Loans charged off		184			76			243			559			412			1,474			31			1,505
Less recoveries of loans charged off		(100	)		(80	)		(20	)		(66	)		(83	)		(349	)		(3	)		(352	)
Net loans charged off		84			(4	)		223			493			329			1,125			28			1,153
Other changes (a)		–			–			–			–			–			–			(65	)		(65	)
Balance at end of period	$	1,031		$	761		$	934		$	865		$	824		$	4,415		$	163		$	4,578
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
Other changes (a)		–			–			–			(33	)		–			(33	)		(20	)		(53	)
Balance at end of period	$	1,034		$	894		$	961		$	915		$	856		$	4,660		$	111		$	4,771

(a) Includes net changes in credit losses to be reimbursed by the FDIC and for the nine months ended September 30, 2013, reductions in the allowance for covered loans where the reversal of a previously recorded allowance was offset by an associated decrease in the indemnification asset.

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, 2013 Related to
Loans individually evaluated for impairment (a)	$	9	$	7	$	–	$	–	$	–	$	16	$	–	$	16
TDRs collectively evaluated for impairment		21		21		341		101		83		567		5		572
Other loans collectively evaluated for impairment		1,001		719		593		764		741		3,818		10		3,828
Loans acquired with deteriorated credit quality		–		14		–		–		–		14		148		162
Total allowance for credit losses	$	1,031	$	761	$	934	$	865	$	824	$	4,415	$	163	$	4,578
Allowance Balance at December 31, 2012 Related to
Loans individually evaluated for impairment (a)	$	10	$	30	$	–	$	–	$	–	$	40	$	–	$	40
TDRs collectively evaluated for impairment		28		29		446		153		97		753		1		754
Other loans collectively evaluated for impairment		1,013		791		489		710		751		3,754		17		3,771
Loans acquired with deteriorated credit quality		–		7		–		–		–		7		161		168
Total allowance for credit losses	$	1,051	$	857	$	935	$	863	$	848	$	4,554	$	179	$	4,733

(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, 2013
Loans individually evaluated for impairment (a)	$	171	$	253	$	–	$	–	$	–	$	424	$	48	$	472
TDRs collectively evaluated for impairment		171		360		4,357		335		281		5,504		100		5,604
Other loans collectively evaluated for impairment		68,615		37,979		45,812		16,728		46,833		215,967		5,172		221,139
Loans acquired with deteriorated credit quality		1		86		1		–		–		88		4,076		4,164
Total loans	$	68,958	$	38,678	$	50,170	$	17,063	$	47,114	$	221,983	$	9,396	$	231,379
December 31, 2012
Loans individually evaluated for impairment (a)	$	171	$	510	$	–	$	–	$	–	$	681	$	48	$	729
TDRs collectively evaluated for impairment		185		391		4,199		442		313		5,530		145		5,675
Other loans collectively evaluated for impairment		65,863		35,952		39,813		16,673		47,399		205,700		5,814		211,514
Loans acquired with deteriorated credit quality		4		100		6		–		–		110		5,301		5,411
Total loans	$	66,223	$	36,953	$	44,018	$	17,115	$	47,712	$	212,021	$	11,308	$	223,329

(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). When a loan is placed on nonaccrual status, unpaid accrued interest is reversed.

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. 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 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 a loan has demonstrated sustained repayment performance or no amounts are 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, 2013
Commercial	$	68,573	$	219	$	50	$	116	$	68,958
Commercial real estate		38,253		62		7		356		38,678
Residential mortgages (a)		48,820		350		268		732		50,170
Credit card		16,567		212		190		94		17,063
Other retail		46,598		234		76		206		47,114
Total loans, excluding covered loans		218,811		1,077		591		1,504		221,983
Covered loans		8,584		142		514		156		9,396
Total loans	$	227,395	$	1,219	$	1,105	$	1,660	$	231,379
December 31, 2012
Commercial	$	65,701	$	341	$	58	$	123	$	66,223
Commercial real estate		36,241		158		8		546		36,953
Residential mortgages (a)		42,728		348		281		661		44,018
Credit card		16,525		227		217		146		17,115
Other retail		47,109		290		96		217		47,712
Total loans, excluding covered loans		208,304		1,364		660		1,693		212,021
Covered loans		9,900		359		663		386		11,308
Total loans	$	218,204	$	1,723	$	1,323	$	2,079	$	223,329

(a) At September 30, 2013, $399 million of loans 30–89 days past due and $3.5 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 $441 million and $3.2 billion at December 31, 2012, 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, 2013
Commercial	$	66,791	$	1,103	$	1,064	$	2,167	$	68,958
Commercial real estate		36,796		578		1,304		1,882		38,678
Residential mortgages (b)		49,052		6		1,112		1,118		50,170
Credit card		16,779		–		284		284		17,063
Other retail		46,744		34		336		370		47,114
Total loans, excluding covered loans		216,162		1,721		4,100		5,821		221,983
Covered loans		9,061		39		296		335		9,396
Total loans	$	225,223	$	1,760	$	4,396	$	6,156	$	231,379
Total outstanding commitments	$	460,484	$	3,124	$	5,055	$	8,179	$	468,663
December 31, 2012
Commercial	$	63,906	$	1,114	$	1,203	$	2,317	$	66,223
Commercial real estate		34,096		621		2,236		2,857		36,953
Residential mortgages (b)		42,897		18		1,103		1,121		44,018
Credit card		16,752		–		363		363		17,115
Other retail		47,294		36		382		418		47,712
Total loans, excluding covered loans		204,945		1,789		5,287		7,076		212,021
Covered loans		10,786		61		461		522		11,308
Total loans	$	215,731	$	1,850	$	5,748	$	7,598	$	223,329
Total outstanding commitments	$	442,047	$	3,231	$	6,563	$	9,794	$	451,841

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

(b) At September 30, 2013, $3.5 billion of GNMA loans 90 days or more past due and $1.9 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 $3.2 billion and $2.4 billion at December 31, 2012, 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 generally not recognized on other impaired loans until the loan is paid off. However, interest income may be recognized for interest payments if the remaining carrying amount of the loan is believed to be collectible.

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 loans and other retail loans is primarily driven by delinquency status of individual loans or whether a loan has been modified, and considers any government guarantee where applicable. 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, 2013
Commercial	$	375	$	857	$	38	$	25
Commercial real estate		721		1,570		36		14
Residential mortgages		2,762		3,404		323		2
Credit card		335		335		101		–
Other retail		408		609		86		3
Total impaired loans, excluding GNMA and covered loans		4,601		6,775		584		44
Loans purchased from GNMA mortgage pools		1,915		1,915		29		–
Covered loans		503		1,186		34		7
Total	$	7,019	$	9,876	$	647	$	51
December 31, 2012
Commercial	$	404	$	1,200	$	40	$	39
Commercial real estate		1,077		2,251		70		4
Residential mortgages		2,748		3,341		415		–
Credit card		442		442		153		–
Other retail		443		486		101		3
Total impaired loans, excluding GNMA and covered loans		5,114		7,720		779		46
Loans purchased from GNMA mortgage pools		1,778		1,778		39		–
Covered loans		767		1,584		20		12
Total	$	7,659	$	11,082	$	838	$	58

(a) Substantially all loans classified as impaired at September 30, 2013 and December 31, 2012, had an associated allowance for credit losses.

Additional information on impaired loans follows:

	2013				2012
(Dollars in Millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Three Months Ended September 30
Commercial	$	380	$	5	$	413	$	6
Commercial real estate		819		6		1,250		12
Residential mortgages		2,765		32		2,752		31
Credit card		347		3		495		6
Other retail		417		7		354		3
Total impaired loans, excluding GNMA and covered loans		4,728		53		5,264		58
Loans purchased from GNMA mortgage pools		1,883		22		1,492		20
Covered loans		519		6		883		7
Total	$	7,130	$	81	$	7,639	$	85
Nine Months Ended September 30
Commercial	$	384	$	24	$	496	$	11
Commercial real estate		950		27		1,371		29
Residential mortgages		2,744		99		2,692		87
Credit card		380		12		529		22
Other retail		431		19		259		7
Total impaired loans, excluding GNMA and covered loans		4,889		181		5,347		156
Loans purchased from GNMA mortgage pools		1,869		68		1,363		51
Covered loans		588		21		1,042		20
Total	$	7,346	$	270	$	7,752	$	227

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 by portfolio class:

	2013						2012
(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		551	$	62	$	60		1,754	$	54	$	58
Commercial real estate		48		76		73		63		91		80
Residential mortgages		338		42		42		2,717		344		336
Credit card		6,447		39		38		14,137		52		67
Other retail		847		21		21		6,231		159		156
Total loans, excluding GNMA and covered loans		8,231		240		234		24,902		700		697
Loans purchased from GNMA mortgage pools		2,315		300		284		4,859		660		589
Covered loans		38		19		11		73		49		46
Total loans		10,584	$	559	$	529		29,834	$	1,409	$	1,332
Nine Months Ended September 30
Commercial		1,962	$	150	$	140		4,081	$	215	$	195
Commercial real estate		147		193		186		245		416		390
Residential mortgages		1,575		214		210		3,788		529		517
Credit card		20,147		122		122		39,040		189		203
Other retail		3,519		86		85		8,028		194		191
Total loans, excluding GNMA and covered loans		27,350		765		743		55,182		1,543		1,496
Loans purchased from GNMA mortgage pools		6,450		822		782		8,436		1,116		1,087
Covered loans		109		85		64		166		246		234
Total loans		33,909	$	1,672	$	1,589		63,784	$	2,905	$	2,817

Residential mortgages, home equity and second mortgages, and loans purchased from Government National Mortgage Association (“GNMA”) mortgage pools 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. For those loans modified as TDRs during the third quarter of 2013, at September 30, 2013, 142 residential mortgages, 5 home equity and second mortgage loans and 1,905 loans purchased from GNMA mortgage pools with outstanding balances of $18 million, less than $1 million and $247 million, respectively, were in a trial period and have estimated post-modification balances of $16 million, less than $1 million and $231 million, respectively, assuming permanent modification occurs at the end of the trial period.

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

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 its own 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:

	2013				2012
(Dollars in Millions)	Number of Loans		Amount Defaulted		Number of Loans		Amount Defaulted
Three Months Ended September 30
Commercial		143	$	37		195	$	2
Commercial real estate		30		18		13		12
Residential mortgages		303		41		116		30
Credit card		1,485		8		2,536		14
Other retail		278		10		189		4
Total loans, excluding GNMA and covered loans		2,239		114		3,049		62
Loans purchased from GNMA mortgage pools		492		69		248		34
Covered loans		24		25		8		3
Total loans		2,755	$	208		3,305	$	99
Nine Months Ended September 30
Commercial		483	$	42		652	$	33
Commercial real estate		72		90		96		176
Residential mortgages		673		100		427		64
Credit card		5,109		29		7,452		42
Other retail		1,164		53		531		8
Total loans, excluding GNMA and covered loans		7,501		314		9,158		323
Loans purchased from GNMA mortgage pools		4,795		615		731		106
Covered loans		49		37		49		90
Total loans		12,345	$	966		9,938	$	519

In addition to the defaults in the table above, during the three and nine months ended September 30, 2013, the Company had a total of 135 and 441 of residential mortgage loans, home equity and second mortgage loans and loans purchased from GNMA mortgage pools with aggregate outstanding balances of $18 million and $59 million, respectively, 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 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, 2013								December 31, 2012
(Dollars in Millions)	Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total		Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total
Commercial loans	$	–	$	109	$	–	$	109	$	–	$	143	$	–	$	143
Commercial real estate loans		973		1,803		–		2,776		1,323		2,695		–		4,018
Residential mortgage loans		3,103		935		–		4,038		3,978		1,109		–		5,087
Credit card loans		–		5		–		5		–		5		–		5
Other retail loans		–		683		–		683		–		775		–		775
Losses reimbursable by the FDIC (a)		–		–		820		820		–		–		1,280		1,280
Unamortized changes in FDIC asset (b)		–		–		965		965		–		–		–		–
Covered loans		4,076		3,535		1,785		9,396		5,301		4,727		1,280		11,308
Foreclosed real estate		–		–		176		176		–		–		197		197
Total covered assets	$	4,076	$	3,535	$	1,961	$	9,572	$	5,301	$	4,727	$	1,477	$	11,505

(a) Relates to loss sharing agreements with remaining terms up to six years.

(b) Represents decreases in expected reimbursements by the FDIC as a result of decreases in expected losses on the covered loans. These amounts are amortized as a reduction in interest income on covered loans over the shorter of the expected life of the respective covered loans or the remaining contractual term of the indemnification agreements. These amounts were presented within the separate loan categories prior to January 1, 2013.

The Company adopted new indemnification asset accounting guidance effective January 1, 2013 applicable to FDIC loss-sharing agreements. The guidance requires any reduction in expected cash flows from the FDIC resulting from increases in expected cash flows from 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. Prior to adoption of this guidance, such increases in expected cash flows of purchased loans and decreases in expected cash flows of the FDIC indemnification assets were considered together and recognized over the remaining life of the loans. The adoption of this guidance did not materially affect the Company’s financial statements.

At September 30, 2013, $9 million of the purchased impaired loans included in covered loans were classified as nonperforming assets, compared with $82 million at December 31, 2012, 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.

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Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

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)	2013			2012		Percent Change			2013		2012		Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	526		$	528		(.4	)%	$	1,141	$	1,193		(4.4	)%
Noninterest income		267			299		(10.7	)		719		930		(22.7	)
Securities gains (losses), net		–			–		–			–		–		–
Total net revenue		793			827		(4.1	)		1,860		2,123		(12.4	)
Noninterest expense		305			310		(1.6	)		1,150		1,236		(7.0	)
Other intangibles		2			4		(50.0	)		10		13		(23.1	)
Total noninterest expense		307			314		(2.2	)		1,160		1,249		(7.1	)
Income before provision and income taxes		486			513		(5.3	)		700		874		(19.9	)
Provision for credit losses		(38	)		–		*			160		349		(54.2	)
Income before income taxes		524			513		2.1			540		525		2.9
Income taxes and taxable-equivalent adjustment		191			187		2.1			197		191		3.1
Net income		333			326		2.1			343		334		2.7
Net (income) loss attributable to noncontrolling interests		–			–		–			–		–		–
Net income attributable to U.S. Bancorp	$	333		$	326		2.1		$	343	$	334		2.7
Average Balance Sheet
Commercial	$	51,409		$	46,131		11.4	%	$	8,475	$	8,423		.6	%
Commercial real estate		20,663			19,661		5.1			17,084		16,203		5.4
Residential mortgages		24			54		(55.6	)		48,131		40,530		18.8
Credit card		–			–		–			–		–		–
Other retail		6			7		(14.3	)		44,728		45,653		(2.0	)
Total loans, excluding covered loans		72,102			65,853		9.5			118,418		110,809		6.9
Covered loans		340			813		(58.2	)		6,434		7,384		(12.9	)
Total loans		72,442			66,666		8.7			124,852		118,193		5.6
Goodwill		1,604			1,604		–			3,515		3,515		–
Other intangible assets		24			34		(29.4	)		2,650		1,764		50.2
Assets		78,785			72,579		8.6			139,539		135,715		2.8
Noninterest-bearing deposits		30,925			31,167		(.8	)		22,460		20,981		7.0
Interest checking		10,038			7,897		27.1			32,971		30,020		9.8
Savings products		15,103			10,358		45.8			46,483		43,647		6.5
Time deposits		22,376			21,247		5.3			20,716		23,624		(12.3	)
Total deposits		78,442			70,669		11.0			122,630		118,272		3.7
Total U.S. Bancorp shareholders’ equity		7,434			6,378		16.6			12,154		11,551		5.2

	Wholesale Banking and Commercial Real Estate								Consumer and Small Business Banking
Nine Months Ended September 30 (Dollars in Millions)	2013			2012		Percent Change			2013		2012		Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,557		$	1,584		(1.7	)%	$	3,427	$	3,555		(3.6	)%
Noninterest income		819			930		(11.9	)		2,276		2,700		(15.7	)
Securities gains (losses), net		–			–		–			–		–		–
Total net revenue		2,376			2,514		(5.5	)		5,703		6,255		(8.8	)
Noninterest expense		932			950		(1.9	)		3,514		3,618		(2.9	)
Other intangibles		6			12		(50.0	)		30		39		(23.1	)
Total noninterest expense		938			962		(2.5	)		3,544		3,657		(3.1	)
Income before provision and income taxes		1,438			1,552		(7.3	)		2,159		2,598		(16.9	)
Provision for credit losses		(120	)		3		*			578		878		(34.2	)
Income before income taxes		1,558			1,549		.6			1,581		1,720		(8.1	)
Income taxes and taxable-equivalent adjustment		567			564		.5			576		626		(8.0	)
Net income		991			985		.6			1,005		1,094		(8.1	)
Net (income) loss attributable to noncontrolling interests		–			–		–			–		–		–
Net income attributable to U.S. Bancorp	$	991		$	985		.6		$	1,005	$	1,094		(8.1	)
Average Balance Sheet
Commercial	$	50,331		$	44,296		13.6	%	$	8,468	$	8,123		4.2	%
Commercial real estate		20,305			19,594		3.6			16,806		16,065		4.6
Residential mortgages		28			61		(54.1	)		46,251		38,884		18.9
Credit card		–			–		–			–		–		–
Other retail		9			5		80.0			44,737		45,602		(1.9	)
Total loans, excluding covered loans		70,673			63,956		10.5			116,262		108,674		7.0
Covered loans		394			1,010		(61.0	)		6,690		7,629		(12.3	)
Total loans		71,067			64,966		9.4			122,952		116,303		5.7
Goodwill		1,604			1,604		–			3,515		3,515		–
Other intangible assets		26			38		(31.6	)		2,293		1,784		28.5
Assets		77,479			70,806		9.4			139,027		132,973		4.6
Noninterest-bearing deposits		30,407			30,762		(1.2	)		21,843		19,638		11.2
Interest checking		10,385			10,621		(2.2	)		32,801		29,621		10.7
Savings products		13,354			8,962		49.0			46,061		43,022		7.1
Time deposits		18,459			17,255		7.0			21,590		24,047		(10.2	)
Total deposits		72,605			67,600		7.4			122,295		116,328		5.1
Total U.S. Bancorp shareholders’ equity		7,331			6,325		15.9			12,062		11,135		8.3

* Not meaningful

Wealth Management and Securities Services							Payment Services									Treasury and Corporate Support								Consolidated Company
2013		2012		Percent Change			2013			2012			Percent Change			2013			2012		Percent Change			2013			2012		Percent Change
$	85	$	87		(2.3	)%	$	393		$	382			2.9	%	$	569		$	593		(4.0	)%	$	2,714		$	2,783		(2.5	)%
	305		282		8.2			822			854			(3.7	)		67			30		*			2,180			2,395		(9.0	)
	–		–		–			–			–			–			(3	)		1		*			(3	)		1		*
	390		369		5.7			1,215			1,236			(1.7	)		633			624		1.4			4,891			5,179		(5.6	)
	322		288		11.8			493			452			9.1			240			256		(6.3	)		2,510			2,542		(1.3	)
	9		10		(10.0	)		34			40			(15.0	)		–			–		–			55			67		(17.9	)
	331		298		11.1			527			492			7.1			240			256		(6.3	)		2,565			2,609		(1.7	)
	59		71		(16.9	)		688			744			(7.5	)		393			368		6.8			2,326			2,570		(9.5	)
	6		4		50.0			172			135			27.4			(2	)		–		*			298			488		(38.9	)
	53		67		(20.9	)		516			609			(15.3	)		395			368		7.3			2,028			2,082		(2.6	)
	19		24		(20.8	)		188			222			(15.3	)		3			26		(88.5	)		598			650		(8.0	)
	34		43		(20.9	)		328			387			(15.2	)		392			342		14.6			1,430			1,432		(.1	)
	–		–		–			(10	)		(10	)		–			48			52		(7.7	)		38			42		(9.5	)
$	34	$	43		(20.9	)	$	318		$	377			(15.6	)	$	440		$	394		11.7		$	1,468		$	1,474		(.4	)
$	1,774	$	1,361		30.3	%	$	6,191		$	6,062			2.1	%	$	215		$	215		–	%	$	68,064		$	62,192		9.4	%
	653		624		4.6			–			–			–			101			142		(28.9	)		38,501			36,630		5.1
	983		384		*			–			–			–			1			1		–			49,139			40,969		19.9
	–		–		–			16,931			16,551			2.3			–			–		–			16,931			16,551		2.3
	1,531		1,529		.1			729			802			(9.1	)		–			–		–			46,994			47,991		(2.1	)
	4,941		3,898		26.8			23,851			23,415			1.9			317			358		(11.5	)		219,629			204,333		7.5
	17		11		54.5			5			5			–			2,937			4,382		(33.0	)		9,733			12,595		(22.7	)
	4,958		3,909		26.8			23,856			23,420			1.9			3,254			4,740		(31.4	)		229,362			216,928		5.7
	1,533		1,469		4.4			2,509			2,346			6.9			–			–		–			9,161			8,934		2.5
	166		165		.6			557			646			(13.8	)		2			4		(50.0	)		3,399			2,613		30.1
	7,749		6,688		15.9			30,123			29,517			2.1			95,965			101,154		(5.1	)		352,161			345,653		1.9
	13,510		14,862		(9.1	)		714			623			14.6			655			494		32.6			68,264			68,127		.2
	4,770		3,943		21.0			455			1,346			(66.2	)		1			1		–			48,235			43,207		11.6
	26,339		23,089		14.1			60			40			50.0			80			139		(42.4	)		88,065			77,273		14.0
	4,170		5,463		(23.7	)		–			–			–			542			340		59.4			47,804			50,674		(5.7	)
	48,789		47,357		3.0			1,229			2,009			(38.8	)		1,278			974		31.2			252,368			239,281		5.5
	2,398		2,240		7.1			6,102			5,667			7.7			11,848			12,783		(7.3	)		39,936			38,619		3.4

Wealth Management and Securities Services							Payment Services									Treasury and Corporate Support								Consolidated Company
2013		2012		Percent Change			2013			2012			Percent Change			2013		2012			Percent Change			2013		2012			Percent Change
$	267	$	264		1.1	%	$	1,168		$	1,154			1.2	%	$	1,676	$	1,629			2.9	%	$	8,095	$	8,186			(1.1	)%
	910		827		10.0			2,397			2,402			(.2	)		208		149			39.6			6,610		7,008			(5.7	)
	–		–		–			–			–			–			8		(18	)		*			8		(18	)		*
	1,177		1,091		7.9			3,565			3,556			.3			1,892		1,760			7.5			14,713		15,176			(3.1	)
	962		854		12.6			1,454			1,344			8.2			563		796			(29.3	)		7,425		7,562			(1.8	)
	27		30		(10.0	)		104			127			(18.1	)		–		–			–			167		208			(19.7	)
	989		884		11.9			1,558			1,471			5.9			563		796			(29.3	)		7,592		7,770			(2.3	)
	188		207		(9.2	)		2,007			2,085			(3.7	)		1,329		964			37.9			7,121		7,406			(3.8	)
	7		5		40.0			553			548			.9			45		5			*			1,063		1,439			(26.1	)
	181		202		(10.4	)		1,454			1,537			(5.4	)		1,284		959			33.9			6,058		5,967			1.5
	65		73		(11.0	)		529			560			(5.5	)		60		29			*			1,797		1,852			(3.0	)
	116		129		(10.1	)		925			977			(5.3	)		1,224		930			31.6			4,261		4,115			3.5
	–		–		–			(29	)		(30	)		3.3			148		142			4.2			119		112			6.3
$	116	$	129		(10.1	)	$	896		$	947			(5.4	)	$	1,372	$	1,072			28.0		$	4,380	$	4,227			3.6
$	1,687	$	1,264		33.5	%	$	6,030		$	5,904			2.1	%	$	203	$	203			–	%	$	66,719	$	59,790			11.6	%
	654		607		7.7			–			–			–			107		123			(13.0	)		37,872		36,389			4.1
	775		379		*			–			–			–			1		4			(75.0	)		47,055		39,328			19.6
	–		–		–			16,627			16,675			(.3	)		–		–			–			16,627		16,675			(.3	)
	1,544		1,516		1.8			744			817			(8.9	)		–		–			–			47,034		47,940			(1.9	)
	4,660		3,766		23.7			23,401			23,396			–			311		330			(5.8	)		215,307		200,122			7.6
	14		12		16.7			5			5			–			3,272		4,953			(33.9	)		10,375		13,609			(23.8	)
	4,674		3,778		23.7			23,406			23,401			–			3,583		5,283			(32.2	)		225,682		213,731			5.6
	1,529		1,468		4.2			2,509			2,349			6.8			–		–			–			9,157		8,936			2.5
	174		172		1.2			584			717			(18.5	)		2		4			(50.0	)		3,079		2,715			13.4
	7,513		6,477		16.0			29,659			29,684			(.1	)		97,370		100,867			(3.5	)		351,048		340,807			3.0
	13,807		13,904		(.7	)		694			638			8.8			432		481			(10.2	)		67,183		65,423			2.7
	4,716		3,950		19.4			444			1,329			(66.6	)		1		1			–			48,347		45,522			6.2
	27,081		23,203		16.7			54			37			45.9			85		136			(37.5	)		86,635		75,360			15.0
	5,228		4,892		6.9			–			–			–			842		479			75.8			46,119		46,673			(1.2	)
	50,832		45,949		10.6			1,192			2,004			(40.5	)		1,360		1,097			24.0			248,284		232,978			6.6
	2,375		2,223		6.8			6,033			5,698			5.9			11,874		11,724			1.3			39,675		37,105			6.9

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Mortgage Servicing Rights - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Transfers And Servicing Of Financial Assets [Abstract]
Company serviced residential mortgage loan for others	$ 226,700,000,000		$ 226,700,000,000		$ 215,600,000,000
Gain/Loss on the fair value of mortgage servicing rights and fair value changes of derivatives used to offset MSR	108,000,000	10,000,000	163,000,000	72,000,000
Loan servicing fees	$ 192,000,000	$ 181,000,000	$ 566,000,000	$ 526,000,000

XML

Loans and Allowance for Credit Losses - Summary of Loans by Portfolio Type and Deliquency Status (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 227,395	$ 218,204
Accruing 30-89 Days Past Due	1,219	1,723
90 Days or More Past Due	1,105	1,323
Nonperforming	1,660	2,079
Total loans, excluding covered loans	221,983	212,021
Total loans	231,379	223,329
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	68,573	65,701
Accruing 30-89 Days Past Due	219	341
90 Days or More Past Due	50	58
Nonperforming	116	123
Total loans, excluding covered loans	68,958	66,223
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	38,253	36,241
Accruing 30-89 Days Past Due	62	158
90 Days or More Past Due	7	8
Nonperforming	356	546
Total loans, excluding covered loans	38,678	36,953
Residential Mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	48,820	42,728
Accruing 30-89 Days Past Due	350	348
90 Days or More Past Due	268	281
Nonperforming	732	661
Total loans, excluding covered loans	50,170	44,018
Credit Card [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	16,567	16,525
Accruing 30-89 Days Past Due	212	227
90 Days or More Past Due	190	217
Nonperforming	94	146
Total loans, excluding covered loans	17,063	17,115
Other Retail [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	46,598	47,109
Accruing 30-89 Days Past Due	234	290
90 Days or More Past Due	76	96
Nonperforming	206	217
Total loans, excluding covered loans	47,114	47,712
Total Loans, Excluding Covered Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	218,811	208,304
Accruing 30-89 Days Past Due	1,077	1,364
90 Days or More Past Due	591	660
Nonperforming	1,504	1,693
Total loans, excluding covered loans	221,983	212,021
Covered Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	8,584	9,900
Accruing 30-89 Days Past Due	142	359
90 Days or More Past Due	514	663
Nonperforming	156	386
Total loans	$ 9,396	$ 11,308

XML

Derivative Instruments

9 Months Ended

Sep. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Instruments

Note 11 Derivative Instruments

In the ordinary course of business, the Company enters into derivative transactions to manage various risks and to accommodate the business requirements of its customers. The Company recognizes all derivatives on 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 received or 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”). 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 interest rate swaps the Company uses to hedge the change in fair value related to interest rate changes of its underlying fixed-rate debt. 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, 2013, and the change in fair value attributed to hedge ineffectiveness was not material.

Cash Flow Hedges These derivatives are interest rate swaps the Company uses to hedge the forecasted cash flows from its 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 remain within other comprehensive income (loss). At September 30, 2013, the Company had $294 million (net-of-tax) of realized and unrealized losses on derivatives classified as cash flow hedges recorded in other comprehensive income (loss), compared with $404 million (net-of-tax) at December 31, 2012. The estimated amount to be reclassified from other comprehensive income (loss) into earnings during the remainder of 2013 and the next 12 months are losses of $30 million (net-of-tax) and $116 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, 2013, 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 occasionally 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, 2013. There were no non-derivative debt instruments designated as net investment hedges at September 30, 2013 or December 31, 2012.

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 (“MLHFS”) 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 MLHFS 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, 2013
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	500	$	21		2.34	$	–	$	–		–
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		272		17		9.02		4,288		548		2.71
Receive fixed/pay floating swaps		7,000		31		1.10		–		–		–
Net investment hedges
Foreign exchange forward contracts		–		–		–		925		11		.05
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		4,418		88		.09		34		8		.08
Sell		41		2		.20		6,203		122		.09
Options
Purchased		2,325		–		.07		–		–		–
Written		1,800		34		.09		9		–		.02
Receive fixed/pay floating swaps		3,220		83		10.23		–		–		–
Foreign exchange forward contracts		1,980		4		.02		2,695		6		.02
Equity contracts		8		–		1.72		66		–		1.89
Credit contracts		1,177		4		4.12		2,495		11		4.91
Total	$	22,741	$	284			$	16,715	$	706
December 31, 2012
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	500	$	30		3.09	$	–	$	–		–
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		32		–		9.88		4,528		718		3.79
Receive fixed/pay floating swaps		7,000		45		1.84		–		–		–
Net investment hedges
Foreign exchange forward contracts		758		1		.07		–		–		–
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		11,164		138		.07		2,921		13		.04
Sell		6,299		18		.11		12,223		57		.09
Options
Purchased		2,435		–		.07		–		–		–
Written		4,991		123		.12		4		–		.06
Receive fixed/pay floating swaps		350		1		10.21		3,775		14		10.21
Foreign exchange forward contracts		618		4		.03		1,383		6		.01
Equity contracts		31		–		2.80		27		–		2.46
Credit contracts		1,056		3		4.56		1,947		10		3.11
Total	$	35,234	$	363			$	26,808	$	818

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, 2013
Interest rate contracts
Receive fixed/pay floating swaps	$	13,562	$	736		5.30	$	5,138	$	70		4.98
Pay fixed/receive floating swaps		4,700		76		5.15		14,089		691		5.26
Options
Purchased		3,681		28		4.46		107		1		1.12
Written		107		1		1.12		3,681		28		4.46
Foreign exchange rate contracts
Forwards, spots and swaps		10,392		411		.71		9,688		375		.68
Options
Purchased		367		9		.64		–		–		–
Written		–		–		–		367		9		.64
Total	$	32,809	$	1,261			$	33,070	$	1,174
December 31, 2012
Interest rate contracts
Receive fixed/pay floating swaps	$	16,671	$	1,085		4.78	$	1,090	$	15		9.30
Pay fixed/receive floating swaps		928		14		11.12		16,923		1,042		4.74
Options
Purchased		3,046		16		5.24		28		–		4.42
Written		286		–		.75		2,788		16		5.68
Foreign exchange rate contracts
Forwards, spots and swaps		12,186		322		.43		11,861		286		.44
Options
Purchased		323		6		.55		–		–		–
Written		–		–		–		323		6		.55
Total	$	33,440	$	1,443			$	33,013	$	1,365

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)	2013			2012			2013			2012			2013			2012			2013			2012
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts (a)	$	(11	)	$	(19	)	$	(30	)	$	(33	)	$	22		$	(42	)	$	(88	)	$	(98	)
Net investment hedges
Foreign exchange forward contracts		(29	)		–			–			–			(23	)		(6	)		–			–
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, 2013 and 2012.

(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)			2013			2012			2013			2012
Asset and Liability Management Positions
Fair value hedges (a)
Interest rate contracts		Other noninterest income	$	–		$	2		$	(7	)	$	5
Foreign exchange cross-currency swaps		Other noninterest income		–			–			–			42
Other economic hedges
Interest rate contracts
Futures and forwards		Mortgage banking revenue		33			(44	)		569			67
Purchased and written options		Mortgage banking revenue		54			290			200			689
Receive fixed/pay floating swaps		Mortgage banking revenue		(5	)		48			(264	)		186
Foreign exchange forward contracts		Commercial products revenue		(16	)		(25	)		18			(62	)
Equity contracts		Compensation expense		–			1			1			2
Credit contracts		Other noninterest income/expense		2			(2	)		1			(8	)
Customer-Related Positions
Interest rate contracts
Receive fixed/pay floating swaps		Other noninterest income		13			(16	)		(288	)		(10	)
Pay fixed/receive floating swaps		Other noninterest income		(10	)		19			298			15
Foreign exchange rate contracts
Forwards, spots and swaps		Commercial products revenue		15			13			36			36

(a) Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were both zero for the three months ended September 30, 2013, and $(2) million and zero for the three months ended September 30, 2012, respectively. Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were $7 million and zero for the nine months ended September 30, 2013, respectively, and $(5) million and $(44) million for the nine months ended September 30, 2012, respectively. The ineffective portion was immaterial for the three and nine months ended September 30, 2013 and 2012.

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 arrangements and, where possible, by requiring collateral arrangements. A master netting arrangement allows two counterparties, who have multiple derivative contracts with each other, the ability to net settle amounts under all contracts, including any related collateral, through a single payment and in a single currency. Collateral arrangements require the counterparty to deliver, on a daily basis, collateral (typically cash or U.S. Treasury and agency securities) equal to the Company’s net derivative receivable. For highly-rated counterparties, the collateral arrangements may include minimum dollar 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 arrangements are predominately 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 arrangements, 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 arrangements that were in a net liability position at September 30, 2013, was $1.1 billion. At September 30, 2013, the Company had $862 million of cash posted as collateral against this net liability position.

XML

Derivative Instruments - 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, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Asset and Liability Management Positions [Member] | Interest Rate Contracts [Member] | Other Noninterest Income [Member] | Fair Value Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings		$ 2	$ (7)	$ 5
Asset and Liability Management Positions [Member] | Interest Rate Contracts [Member] | Mortgage Banking Revenue [Member] | Other Economic Hedges [Member] | Futures and Forwards [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	33	(44)	569	67
Asset and Liability Management Positions [Member] | Interest Rate Contracts [Member] | Mortgage Banking Revenue [Member] | Other Economic Hedges [Member] | Options [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	54	290	200	689
Asset and Liability Management Positions [Member] | Interest Rate Contracts [Member] | Mortgage Banking Revenue [Member] | Other Economic Hedges [Member] | Receive Fixed/Pay Floating Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	(5)	48	(264)	186
Asset and Liability Management Positions [Member] | Foreign Exchange Cross-Currency Swaps [Member] | Other Noninterest Income [Member] | Fair Value Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings				42
Asset and Liability Management Positions [Member] | Foreign Exchange Forward Contracts [Member] | Commercial Products Revenue [Member] | Other Economic Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	(16)	(25)	18	(62)
Asset and Liability Management Positions [Member] | Equity Contracts [Member] | Compensation Expense [Member] | Other Economic Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings		1	1	2
Asset and Liability Management Positions [Member] | Credit Contracts [Member] | Other Noninterest Income Expense [Member] | Other Economic Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	2	(2)	1	(8)
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Other Noninterest Income [Member] | Receive Fixed/Pay Floating Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	13	(16)	(288)	(10)
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Other Noninterest Income [Member] | Pay Fixed/Receive Floating Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	(10)	19	298	15
Customer-Related Positions [Member] | Foreign Exchange Contract [Member] | Commercial Products Revenue [Member] | Forwards, Spots and Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	$ 15	$ 13	$ 36	$ 36

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Investment Securities - Changes in Credit Losses on Debt Securities (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Investments Debt And Equity Securities [Abstract]
Balance at beginning of period	$ 124	$ 277	$ 134	$ 298
Credit losses on securities not previously considered other-than-temporarily impaired		2		5
Decreases in expected cash flows on securities for which other-than-temporary impairment was previously recognized	3	13	13	32
Total other-than-temporary impairment on debt securities	3	15	13	37
Increases in expected cash flows	(1)		(2)	(14)
Realized losses	(4)	(4)	(18)	(33)
Credit losses on security sales and securities expected to be sold		(142)	(5)	(142)
Balance at end of period	$ 122	$ 146	$ 122	$ 146

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Income Taxes - Additional Information (Detail) (USD $) In Billions, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Income Taxes Additional Information [Abstract]
Federal statutory rate	35.00%	35.00%
Net deferred tax liability	$ 1.2		$ 1.3

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Loans and Allowance for Credit Losses - Summary of Loans by Portfolio Type and Deliquency Status (Parenthetical) (Detail) (Government National Mortgage Association [Member], USD $)	Sep. 30, 2013	Dec. 31, 2012
Government National Mortgage Association [Member]
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 or guaranteed by the Department of Veterans Affairs, were classified as current	$ 399,000,000	$ 441,000,000
Loans 90 days or more past due purchased from Government National Mortgage Association mortgage pools whose payments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs, were classified as current	$ 3,500,000,000	$ 3,200,000,000

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Investment Securities - Investment Securities (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Amortized Cost And Fair Value Debt Securities [Abstract]
Federal statutory rate	35.00%	35.00%
Weighted-average maturity of available-for-sale investment securities	5 years 6 months		4 years 1 month 6 days
Weighted-average yield of available-for-sale investment securities	2.70%		2.93%
Weighted average maturity of held-to-maturity investment securities	4 years 2 months 12 days		3 years 3 months 18 days
Weighted-average yield of held-to-maturity investment securities	1.97%		1.94%

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Mortgage Servicing Rights (Tables)

9 Months Ended

Sep. 30, 2013

Text Block [Abstract]

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)	2013			2012			2013			2012
Balance at beginning of period	$	2,377		$	1,594		$	1,700		$	1,519
Rights purchased		2			10			7			39
Rights capitalized		187			224			674			700
Changes in fair value of MSRs
Due to fluctuations in market interest rates (a)		71			(123	)		503			(298	)
Due to revised assumptions or models (b)		42			(2	)		33			(19	)
Other changes in fair value (c)		(102	)		(150	)		(340	)		(388	)
Balance at end of period	$	2,577		$	1,553		$	2,577		$	1,553

(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, 2013																		December 31, 2012
(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	$	(494	)	$	(223	)	$	(107	)	$	92		$	173		$	324		$	(370	)	$	(217	)	$	(118	)	$	126		$	249		$	480
Derivative instrument hedges		427			211			102			(93	)		(174	)		(317	)		473			249			124			(121	)		(243	)		(486	)
Net sensitivity	$	(67	)	$	(12	)	$	(5	)	$	(1	)	$	(1	)	$	7		$	103		$	32		$	6		$	5		$	6		$	(6	)

MSRs and Related Characteristics by Portfolio

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

	September 30, 2013												December 31, 2012
(Dollars in Millions)	MRBP			Government			Conventional (b)			Total			MRBP			Government			Conventional (b)			Total
Servicing portfolio	$	15,088		$	41,192		$	170,447		$	226,727		$	14,143		$	39,048		$	162,446		$	215,637
Fair value	$	171		$	474		$	1,932		$	2,577		$	154		$	314		$	1,232		$	1,700
Value (bps) (a)		113			115			113			114			109			80			76			79
Weighted-average servicing fees (bps)		39			32			29			30			40			33			30			31
Multiple (value/servicing fees)		2.90			3.59			3.90			3.80			2.73			2.42			2.53			2.55
Weighted-average note rate		4.76	%		4.26	%		4.19	%		4.24	%		5.13	%		4.57	%		4.48	%		4.54	%
Weighted-average age (in years)		4.0			2.5			2.4			2.5			4.2			2.4			2.5			2.6
Weighted-average expected prepayment (constant prepayment rate)		13.1	%		12.6	%		12.2	%		12.3	%		13.2	%		21.2	%		20.4	%		20.1	%
Weighted-average expected life (in years)		6.3			6.5			6.8			6.7			6.1			4.2			4.1			4.2
Weighted-average discount rate		12.0	%		11.2	%		9.8	%		10.2	%		12.1	%		11.4	%		10.0	%		10.4	%

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

(b) Represents loans sold primarily to GSEs.

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Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Composition of Loan Portfolio

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

	September 30, 2013					December 31, 2012
(Dollars in Millions)	Amount		Percent of Total			Amount		Percent of Total
Commercial
Commercial	$	63,696		27.5	%	$	60,742		27.2	%
Lease financing		5,262		2.3			5,481		2.5
Total commercial		68,958		29.8			66,223		29.7
Commercial Real Estate
Commercial mortgages		31,467		13.6			31,005		13.9
Construction and development		7,211		3.1			5,948		2.6
Total commercial real estate		38,678		16.7			36,953		16.5
Residential Mortgages
Residential mortgages		36,484		15.8			32,648		14.6
Home equity loans, first liens		13,686		5.9			11,370		5.1
Total residential mortgages		50,170		21.7			44,018		19.7
Credit Card		17,063		7.4			17,115		7.7
Other Retail
Retail leasing		5,761		2.5			5,419		2.4
Home equity and second mortgages		15,544		6.7			16,726		7.5
Revolving credit		3,289		1.4			3,332		1.5
Installment		5,717		2.4			5,463		2.4
Automobile		13,130		5.7			12,593		5.6
Student		3,673		1.6			4,179		1.9
Total other retail		47,114		20.3			47,712		21.3
Total loans, excluding covered loans		221,983		95.9			212,021		94.9
Covered Loans		9,396		4.1			11,308		5.1
Total loans	$	231,379		100.0	%	$	223,329		100.0	%

Changes in Accretable Balance for Purchased Impaired Loans

Changes in the accretable balance for purchased impaired loans were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2013			2012			2013			2012
Balance at beginning of period	$	1,802		$	2,431		$	1,709		$	2,619
Purchases		–			–			–			13
Accretion		(119	)		(109	)		(380	)		(337	)
Disposals		(51	)		(37	)		(120	)		(135	)
Reclassifications (to)/from nonaccretable difference (a)		119			58			177			191
Other (b)		–			(14	)		365			(22	)
Balance at end of period	$	1,751		$	2,329		$	1,751		$	2,329

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

(b) The amount for the nine months ended September 30, 2013, primarily represents the reclassification of unamortized decreases in the FDIC asset (which are now presented as a separate component within the covered assets table on page 55), partially offset by the impact of changes in expectations about retaining covered single-family loans beyond the term of the indemnification agreements.

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
2013
Balance at beginning of period	$	1,023		$	777		$	921		$	874		$	838		$	4,433		$	179		$	4,612
Add
Provision for credit losses		19			(22	)		70			151			84			302			(4	)		298
Deduct
Loans charged off		65			17			62			175			122			441			9			450
Less recoveries of loans charged off		(54	)		(23	)		(5	)		(15	)		(24	)		(121	)		(1	)		(122	)
Net loans charged off		11			(6	)		57			160			98			320			8			328
Other changes (a)		–			–			–			–			–			–			(4	)		(4	)
Balance at end of period	$	1,031		$	761		$	934		$	865		$	824		$	4,415		$	163		$	4,578
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
Other changes (a)		–			–			–			(33	)		–			(33	)		(10	)		(43	)
Balance at end of period	$	1,034		$	894		$	961		$	915		$	856		$	4,660		$	111		$	4,771

(a) Includes net changes in credit losses to be reimbursed by the FDIC and for the three months ended September 30, 2013, reductions in the allowance for covered loans where the reversal of a previously recorded allowance was offset by an associated decrease in the indemnification asset.

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
2013
Balance at beginning of period	$	1,051		$	857		$	935		$	863		$	848		$	4,554		$	179		$	4,733
Add
Provision for credit losses		64			(100	)		222			495			305			986			77			1,063
Deduct
Loans charged off		184			76			243			559			412			1,474			31			1,505
Less recoveries of loans charged off		(100	)		(80	)		(20	)		(66	)		(83	)		(349	)		(3	)		(352	)
Net loans charged off		84			(4	)		223			493			329			1,125			28			1,153
Other changes (a)		–			–			–			–			–			–			(65	)		(65	)
Balance at end of period	$	1,031		$	761		$	934		$	865		$	824		$	4,415		$	163		$	4,578
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
Other changes (a)		–			–			–			(33	)		–			(33	)		(20	)		(53	)
Balance at end of period	$	1,034		$	894		$	961		$	915		$	856		$	4,660		$	111		$	4,771

(a) Includes net changes in credit losses to be reimbursed by the FDIC and for the nine months ended September 30, 2013, reductions in the allowance for covered loans where the reversal of a previously recorded allowance was offset by an associated decrease in the indemnification asset.

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, 2013 Related to
Loans individually evaluated for impairment (a)	$	9	$	7	$	–	$	–	$	–	$	16	$	–	$	16
TDRs collectively evaluated for impairment		21		21		341		101		83		567		5		572
Other loans collectively evaluated for impairment		1,001		719		593		764		741		3,818		10		3,828
Loans acquired with deteriorated credit quality		–		14		–		–		–		14		148		162
Total allowance for credit losses	$	1,031	$	761	$	934	$	865	$	824	$	4,415	$	163	$	4,578
Allowance Balance at December 31, 2012 Related to
Loans individually evaluated for impairment (a)	$	10	$	30	$	–	$	–	$	–	$	40	$	–	$	40
TDRs collectively evaluated for impairment		28		29		446		153		97		753		1		754
Other loans collectively evaluated for impairment		1,013		791		489		710		751		3,754		17		3,771
Loans acquired with deteriorated credit quality		–		7		–		–		–		7		161		168
Total allowance for credit losses	$	1,051	$	857	$	935	$	863	$	848	$	4,554	$	179	$	4,733

(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, 2013
Loans individually evaluated for impairment (a)	$	171	$	253	$	–	$	–	$	–	$	424	$	48	$	472
TDRs collectively evaluated for impairment		171		360		4,357		335		281		5,504		100		5,604
Other loans collectively evaluated for impairment		68,615		37,979		45,812		16,728		46,833		215,967		5,172		221,139
Loans acquired with deteriorated credit quality		1		86		1		–		–		88		4,076		4,164
Total loans	$	68,958	$	38,678	$	50,170	$	17,063	$	47,114	$	221,983	$	9,396	$	231,379
December 31, 2012
Loans individually evaluated for impairment (a)	$	171	$	510	$	–	$	–	$	–	$	681	$	48	$	729
TDRs collectively evaluated for impairment		185		391		4,199		442		313		5,530		145		5,675
Other loans collectively evaluated for impairment		65,863		35,952		39,813		16,673		47,399		205,700		5,814		211,514
Loans acquired with deteriorated credit quality		4		100		6		–		–		110		5,301		5,411
Total loans	$	66,223	$	36,953	$	44,018	$	17,115	$	47,712	$	212,021	$	11,308	$	223,329

(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 and Delinquency Status

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, 2013
Commercial	$	68,573	$	219	$	50	$	116	$	68,958
Commercial real estate		38,253		62		7		356		38,678
Residential mortgages (a)		48,820		350		268		732		50,170
Credit card		16,567		212		190		94		17,063
Other retail		46,598		234		76		206		47,114
Total loans, excluding covered loans		218,811		1,077		591		1,504		221,983
Covered loans		8,584		142		514		156		9,396
Total loans	$	227,395	$	1,219	$	1,105	$	1,660	$	231,379
December 31, 2012
Commercial	$	65,701	$	341	$	58	$	123	$	66,223
Commercial real estate		36,241		158		8		546		36,953
Residential mortgages (a)		42,728		348		281		661		44,018
Credit card		16,525		227		217		146		17,115
Other retail		47,109		290		96		217		47,712
Total loans, excluding covered loans		208,304		1,364		660		1,693		212,021
Covered loans		9,900		359		663		386		11,308
Total loans	$	218,204	$	1,723	$	1,323	$	2,079	$	223,329

(a) At September 30, 2013, $399 million of loans 30–89 days past due and $3.5 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 $441 million and $3.2 billion at December 31, 2012, 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, 2013
Commercial	$	66,791	$	1,103	$	1,064	$	2,167	$	68,958
Commercial real estate		36,796		578		1,304		1,882		38,678
Residential mortgages (b)		49,052		6		1,112		1,118		50,170
Credit card		16,779		–		284		284		17,063
Other retail		46,744		34		336		370		47,114
Total loans, excluding covered loans		216,162		1,721		4,100		5,821		221,983
Covered loans		9,061		39		296		335		9,396
Total loans	$	225,223	$	1,760	$	4,396	$	6,156	$	231,379
Total outstanding commitments	$	460,484	$	3,124	$	5,055	$	8,179	$	468,663
December 31, 2012
Commercial	$	63,906	$	1,114	$	1,203	$	2,317	$	66,223
Commercial real estate		34,096		621		2,236		2,857		36,953
Residential mortgages (b)		42,897		18		1,103		1,121		44,018
Credit card		16,752		–		363		363		17,115
Other retail		47,294		36		382		418		47,712
Total loans, excluding covered loans		204,945		1,789		5,287		7,076		212,021
Covered loans		10,786		61		461		522		11,308
Total loans	$	215,731	$	1,850	$	5,748	$	7,598	$	223,329
Total outstanding commitments	$	442,047	$	3,231	$	6,563	$	9,794	$	451,841

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

(b) At September 30, 2013, $3.5 billion of GNMA loans 90 days or more past due and $1.9 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 $3.2 billion and $2.4 billion at December 31, 2012, 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, 2013
Commercial	$	375	$	857	$	38	$	25
Commercial real estate		721		1,570		36		14
Residential mortgages		2,762		3,404		323		2
Credit card		335		335		101		–
Other retail		408		609		86		3
Total impaired loans, excluding GNMA and covered loans		4,601		6,775		584		44
Loans purchased from GNMA mortgage pools		1,915		1,915		29		–
Covered loans		503		1,186		34		7
Total	$	7,019	$	9,876	$	647	$	51
December 31, 2012
Commercial	$	404	$	1,200	$	40	$	39
Commercial real estate		1,077		2,251		70		4
Residential mortgages		2,748		3,341		415		–
Credit card		442		442		153		–
Other retail		443		486		101		3
Total impaired loans, excluding GNMA and covered loans		5,114		7,720		779		46
Loans purchased from GNMA mortgage pools		1,778		1,778		39		–
Covered loans		767		1,584		20		12
Total	$	7,659	$	11,082	$	838	$	58

(a) Substantially all loans classified as impaired at September 30, 2013 and December 31, 2012, had an associated allowance for credit losses.

Impaired Loans Average Recorded Investment and Interest Income

Additional information on impaired loans follows:

	2013				2012
(Dollars in Millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Three Months Ended September 30
Commercial	$	380	$	5	$	413	$	6
Commercial real estate		819		6		1,250		12
Residential mortgages		2,765		32		2,752		31
Credit card		347		3		495		6
Other retail		417		7		354		3
Total impaired loans, excluding GNMA and covered loans		4,728		53		5,264		58
Loans purchased from GNMA mortgage pools		1,883		22		1,492		20
Covered loans		519		6		883		7
Total	$	7,130	$	81	$	7,639	$	85
Nine Months Ended September 30
Commercial	$	384	$	24	$	496	$	11
Commercial real estate		950		27		1,371		29
Residential mortgages		2,744		99		2,692		87
Credit card		380		12		529		22
Other retail		431		19		259		7
Total impaired loans, excluding GNMA and covered loans		4,889		181		5,347		156
Loans purchased from GNMA mortgage pools		1,869		68		1,363		51
Covered loans		588		21		1,042		20
Total	$	7,346	$	270	$	7,752	$	227

Loans Modified as TDRs

The following table provides a summary of loans modified as TDRs by portfolio class:

	2013						2012
(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		551	$	62	$	60		1,754	$	54	$	58
Commercial real estate		48		76		73		63		91		80
Residential mortgages		338		42		42		2,717		344		336
Credit card		6,447		39		38		14,137		52		67
Other retail		847		21		21		6,231		159		156
Total loans, excluding GNMA and covered loans		8,231		240		234		24,902		700		697
Loans purchased from GNMA mortgage pools		2,315		300		284		4,859		660		589
Covered loans		38		19		11		73		49		46
Total loans		10,584	$	559	$	529		29,834	$	1,409	$	1,332
Nine Months Ended September 30
Commercial		1,962	$	150	$	140		4,081	$	215	$	195
Commercial real estate		147		193		186		245		416		390
Residential mortgages		1,575		214		210		3,788		529		517
Credit card		20,147		122		122		39,040		189		203
Other retail		3,519		86		85		8,028		194		191
Total loans, excluding GNMA and covered loans		27,350		765		743		55,182		1,543		1,496
Loans purchased from GNMA mortgage pools		6,450		822		782		8,436		1,116		1,087
Covered loans		109		85		64		166		246		234
Total loans		33,909	$	1,672	$	1,589		63,784	$	2,905	$	2,817

Schedule of Loans Modified as TDRs that have Subsequently been Fully or Partially Charged-Off or Became 90 Days or More Past Due

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:

	2013				2012
(Dollars in Millions)	Number of Loans		Amount Defaulted		Number of Loans		Amount Defaulted
Three Months Ended September 30
Commercial		143	$	37		195	$	2
Commercial real estate		30		18		13		12
Residential mortgages		303		41		116		30
Credit card		1,485		8		2,536		14
Other retail		278		10		189		4
Total loans, excluding GNMA and covered loans		2,239		114		3,049		62
Loans purchased from GNMA mortgage pools		492		69		248		34
Covered loans		24		25		8		3
Total loans		2,755	$	208		3,305	$	99
Nine Months Ended September 30
Commercial		483	$	42		652	$	33
Commercial real estate		72		90		96		176
Residential mortgages		673		100		427		64
Credit card		5,109		29		7,452		42
Other retail		1,164		53		531		8
Total loans, excluding GNMA and covered loans		7,501		314		9,158		323
Loans purchased from GNMA mortgage pools		4,795		615		731		106
Covered loans		49		37		49		90
Total loans		12,345	$	966		9,938	$	519

Carrying Amount of Covered Assets

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, 2013								December 31, 2012
(Dollars in Millions)	Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total		Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total
Commercial loans	$	–	$	109	$	–	$	109	$	–	$	143	$	–	$	143
Commercial real estate loans		973		1,803		–		2,776		1,323		2,695		–		4,018
Residential mortgage loans		3,103		935		–		4,038		3,978		1,109		–		5,087
Credit card loans		–		5		–		5		–		5		–		5
Other retail loans		–		683		–		683		–		775		–		775
Losses reimbursable by the FDIC (a)		–		–		820		820		–		–		1,280		1,280
Unamortized changes in FDIC asset (b)		–		–		965		965		–		–		–		–
Covered loans		4,076		3,535		1,785		9,396		5,301		4,727		1,280		11,308
Foreclosed real estate		–		–		176		176		–		–		197		197
Total covered assets	$	4,076	$	3,535	$	1,961	$	9,572	$	5,301	$	4,727	$	1,477	$	11,505

(a) Relates to loss sharing agreements with remaining terms up to six years.

(b) Represents decreases in expected reimbursements by the FDIC as a result of decreases in expected losses on the covered loans. These amounts are amortized as a reduction in interest income on covered loans over the shorter of the expected life of the respective covered loans or the remaining contractual term of the indemnification agreements. These amounts were presented within the separate loan categories prior to January 1, 2013.

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Fair Values of Assets and Liabilities - Changes in Fair Value for All Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Mortgage Banking Revenue [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net gains and losses on net derivative assets and liabilities included in net income	$ 93	$ 719	$ 88	$ 1,700
Net Change in net derivative asset and liability unrealized gains (losses) relating to assets still held at end of period	90	(564)	(264)	1,400
Other Noninterest Income [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net gains and losses on net derivative assets and liabilities included in net income	89	124	(122)	344
Net Change in net derivative asset and liability unrealized gains (losses) relating to assets still held at end of period	(28)	7	(301)	6
Securities Gains Losses [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net gains and losses on available for sale securities included in net income	(3)	(15)	(13)	(37)
Interest Income [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net gains and losses on available for sale securities included in net income	$ (1)	$ 6	$ (2)	$ 34

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Investment Securities - Summary of Other Than Temporary Impairment by Investment Category (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Other Gains (losses)	$ 1	$ 2	$ 8	$ 3
Available-for-Sale Securities [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Losses Recorded in Earnings	(3)	(15)	(13)	(64)
Other Gains (losses)	1	2	8	3
Total Available for sale other-than-temporary impairment	(2)	(13)	(5)	(61)
Available-for-Sale Securities [Member] | Residential Non-Agency Prime [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Losses Recorded in Earnings	(1)	(5)	(5)	(8)
Other Gains (losses)		(3)	2	(12)
Total Available for sale other-than-temporary impairment	(1)	(8)	(3)	(20)
Available-for-Sale Securities [Member] | Residential Non-Agency Non-Prime [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Losses Recorded in Earnings	(2)	(10)	(8)	(27)
Other Gains (losses)	1	5	6	15
Total Available for sale other-than-temporary impairment	(1)	(5)	(2)	(12)
Commercial Non-Agency Mortgage-Backed Securities [Member] | Available-for-Sale Securities [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Losses Recorded in Earnings				(1)
Other Gains (losses)				(1)
Total Available for sale other-than-temporary impairment				(2)
Perpetual preferred securities [Member] | Available-for-Sale Securities [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Losses Recorded in Earnings				(27)
Other Gains (losses)
Total Available for sale other-than-temporary impairment				(27)
Other Asset-Backed Securities [Member] | Available-for-Sale Securities [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Losses Recorded in Earnings				(1)
Other Gains (losses)				1
Total Available for sale other-than-temporary impairment

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Netting Arrangements for Certain Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Text Block [Abstract]

Information on Company's Accounting Netting Adjustments and Items Not Offset in Consolidated Balance Sheet But Available for Offset in Event of Default

The following tables provide information on the Company’s netting adjustments, and items not offset on the Consolidated Balance Sheet but available for offset in the event of default:

	Gross Recognized Assets		Gross Amounts Offset on the Consolidated Balance Sheet (a)			Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet						Net Amount
(Dollars in Millions)								Financial Instruments (b)			Collateral Received (c)
September 30, 2013
Derivative assets (d)	$	1,362	$	(572	)	$	790	$	(32	)	$	–		$	758
Reverse repurchase agreements		150		–			150		(35	)		(115	)		–
Securities borrowed		527		–			527		(1	)		(510	)		16
Total	$	2,039	$	(572	)	$	1,467	$	(68	)	$	(625	)	$	774
December 31, 2012
Derivative assets (d)	$	1,546	$	(418	)	$	1,128	$	(148	)	$	–		$	980
Reverse repurchase agreements		363		–			363		(44	)		(319	)		–
Securities borrowed		368		–			368		–			(356	)		12
Total	$	2,277	$	(418	)	$	1,859	$	(192	)	$	(675	)	$	992

(a) Includes $75 million and $79 million of cash collateral related payables that were netted against derivative assets at September 30, 2013 and December 31, 2012, respectively.

(b) For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any repurchase agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in the event of counterparty default.

(c) Includes the fair value of securities received by the Company from the counterparty. These securities are not included on the Consolidated Balance Sheet unless the counterparty defaults.

(d) Excludes $183 million and $260 million of derivative assets centrally cleared or otherwise not subject to netting arrangements at September 30, 2013 and December 31, 2012, respectively.

	Gross Recognized Liabilities		Gross Amounts Offset on the Consolidated Balance Sheet (a)			Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet						Net Amount
(Dollars in Millions)								Financial Instruments (b)			Collateral Pledged (c)
September 30, 2013
Derivative liabilities (d)	$	1,825	$	(1,358	)	$	467	$	(32	)	$	–		$	435
Repurchase agreements		1,940		–			1,940		(35	)		(1,905	)		–
Securities loaned		134		–			134		(1	)		(132	)		1
Total	$	3,899	$	(1,358	)	$	2,541	$	(68	)	$	(2,037	)	$	436
December 31, 2012
Derivative liabilities (d)	$	2,178	$	(1,549	)	$	629	$	(148	)	$	–		$	481
Repurchase agreements		3,389		–			3,389		(44	)		(3,345	)		–
Securities loaned		–		–			–		–			–			–
Total	$	5,567	$	(1,549	)	$	4,018	$	(192	)	$	(3,345	)	$	481

(a) Includes $862 million and $1.2 billion of cash collateral related receivables that were netted against derivative liabilities at September 30, 2013 and December 31, 2012, respectively.

(b) For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse repurchase agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be offset in the event of counterparty default.

(c) Includes the fair value of securities pledged by the Company to the counterparty. These securities are included on the Consolidated Balance Sheet unless the Company defaults.

(d) Excludes $55 million and $5 million of derivative liabilities centrally cleared or otherwise not subject to netting arrangements at September 30, 2013 and December 31, 2012, respectively.

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Investment Securities - Investment Securities Held to Maturity (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013		Dec. 31, 2012
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, Amortized Cost	$ 36,904	[1]	$ 34,389	[1]
Held-to-maturity securities, Unrealized Gains	256		590
Held-to-maturity securities, Unrealized Losses Other-than-Temporary	(1)		(3)
Held-to-maturity securities, Unrealized Losses Other	(527)		(24)
Held-to-maturity securities, Fair Value	36,632		34,952
U.S. Treasury and agencies [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, Amortized Cost	3,368		3,154
Held-to-maturity securities, Unrealized Gains	9		27
Held-to-maturity securities, Unrealized Losses Other-than-Temporary
Held-to-maturity securities, Unrealized Losses Other	(60)
Held-to-maturity securities, Fair Value	3,317		3,181
Collateralized Debt/Loan Obligation Asset-Backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, Amortized Cost	2		7
Held-to-maturity securities, Unrealized Gains	9		15
Held-to-maturity securities, Unrealized Losses Other-than-Temporary
Held-to-maturity securities, Unrealized Losses Other
Held-to-maturity securities, Fair Value	11		22
Asset Backed Securities Other [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, Amortized Cost	16		19
Held-to-maturity securities, Unrealized Gains	4		2
Held-to-maturity securities, Unrealized Losses Other-than-Temporary	(1)		(3)
Held-to-maturity securities, Unrealized Losses Other	(1)		(1)
Held-to-maturity securities, Fair Value	18		17
Obligations of state and political subdivisions [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, Amortized Cost	17		20
Held-to-maturity securities, Unrealized Gains			1
Held-to-maturity securities, Unrealized Losses Other-than-Temporary
Held-to-maturity securities, Unrealized Losses Other
Held-to-maturity securities, Fair Value	17		21
Obligations of foreign governments [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, Amortized Cost	7		7
Held-to-maturity securities, Unrealized Gains
Held-to-maturity securities, Unrealized Losses Other-than-Temporary
Held-to-maturity securities, Unrealized Losses Other
Held-to-maturity securities, Fair Value	7		7
Other debt securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, Amortized Cost	114		115
Held-to-maturity securities, Unrealized Gains
Held-to-maturity securities, Unrealized Losses Other-than-Temporary
Held-to-maturity securities, Unrealized Losses Other	(12)		(17)
Held-to-maturity securities, Fair Value	102		98
Agency [Member] | Residential [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, Amortized Cost	33,378		31,064
Held-to-maturity securities, Unrealized Gains	234		545
Held-to-maturity securities, Unrealized Losses Other-than-Temporary
Held-to-maturity securities, Unrealized Losses Other	(454)		(6)
Held-to-maturity securities, Fair Value	33,158		31,603
Residential Non-Agency Non-Prime [Member] | Residential [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, Amortized Cost	1		1
Held-to-maturity securities, Unrealized Gains
Held-to-maturity securities, Unrealized Losses Other-than-Temporary
Held-to-maturity securities, Unrealized Losses Other
Held-to-maturity securities, Fair Value	1		1
Non-Agency [Member] | Commercial [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, Amortized Cost	1		2
Held-to-maturity securities, Unrealized Gains
Held-to-maturity securities, Unrealized Losses Other-than-Temporary
Held-to-maturity securities, Unrealized Losses Other
Held-to-maturity securities, Fair Value	$ 1		$ 2

[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.

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Investment Securities - Gross Unrealized Losses and Fair Value of Company's Investments Securities with Unrealized Losses (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013
Schedule Of Fair Value And Gross Unrealized Losses [Abstract]
Fair Value Less Than 12 Months	$ 21,099
Unrealized Losses Less Than 12 Months	(512)
Fair Value 12 Months or Greater	108
Unrealized Losses 12 Months or Greater	(16)
Fair Value Total	21,207
Unrealized Losses Total	(528)
Fair Value Less Than 12 Months	16,340
Unrealized Losses Less Than 12 Months	(496)
Fair Value 12 Months or Greater	1,175
Unrealized Losses 12 Months or Greater	(128)
Fair Value Total	17,515
Unrealized Losses Total	(624)
U.S. Treasury and agencies [Member]
Schedule Of Fair Value And Gross Unrealized Losses [Abstract]
Fair Value Less Than 12 Months	1,056
Unrealized Losses Less Than 12 Months	(60)
Fair Value 12 Months or Greater
Unrealized Losses 12 Months or Greater
Fair Value Total	1,056
Unrealized Losses Total	(60)
Fair Value Less Than 12 Months	853
Unrealized Losses Less Than 12 Months	(51)
Fair Value 12 Months or Greater
Unrealized Losses 12 Months or Greater
Fair Value Total	853
Unrealized Losses Total	(51)
Residential [Member] | Agency [Member]
Schedule Of Fair Value And Gross Unrealized Losses [Abstract]
Fair Value Less Than 12 Months	20,034
Unrealized Losses Less Than 12 Months	(452)
Fair Value 12 Months or Greater	85
Unrealized Losses 12 Months or Greater	(2)
Fair Value Total	20,119
Unrealized Losses Total	(454)
Fair Value Less Than 12 Months	13,540
Unrealized Losses Less Than 12 Months	(389)
Fair Value 12 Months or Greater	343
Unrealized Losses 12 Months or Greater	(3)
Fair Value Total	13,883
Unrealized Losses Total	(392)
Residential [Member] | Residential Non-Agency Prime [Member]
Schedule Of Fair Value And Gross Unrealized Losses [Abstract]
Fair Value Less Than 12 Months	137
Unrealized Losses Less Than 12 Months	(2)
Fair Value 12 Months or Greater	206
Unrealized Losses 12 Months or Greater	(13)
Fair Value Total	343
Unrealized Losses Total	(15)
Residential [Member] | Residential Non-Agency Non-Prime [Member]
Schedule Of Fair Value And Gross Unrealized Losses [Abstract]
Fair Value Less Than 12 Months	128
Unrealized Losses Less Than 12 Months	(2)
Fair Value 12 Months or Greater	81
Unrealized Losses 12 Months or Greater	(5)
Fair Value Total	209
Unrealized Losses Total	(7)
Commercial [Member] | Agency [Member]
Schedule Of Fair Value And Gross Unrealized Losses [Abstract]
Fair Value Less Than 12 Months	61
Unrealized Losses Less Than 12 Months
Fair Value 12 Months or Greater
Unrealized Losses 12 Months or Greater
Fair Value Total	61
Unrealized Losses Total
Commercial [Member] | Non-Agency [Member]
Schedule Of Fair Value And Gross Unrealized Losses [Abstract]
Fair Value Less Than 12 Months	1
Unrealized Losses Less Than 12 Months
Fair Value 12 Months or Greater
Unrealized Losses 12 Months or Greater
Fair Value Total	1
Unrealized Losses Total
Asset Backed Securities Other [Member]
Schedule Of Fair Value And Gross Unrealized Losses [Abstract]
Fair Value Less Than 12 Months
Unrealized Losses Less Than 12 Months
Fair Value 12 Months or Greater	10
Unrealized Losses 12 Months or Greater	(2)
Fair Value Total	10
Unrealized Losses Total	(2)
Fair Value Less Than 12 Months	25
Unrealized Losses Less Than 12 Months	(1)
Fair Value 12 Months or Greater	3
Unrealized Losses 12 Months or Greater
Fair Value Total	28
Unrealized Losses Total	(1)
Obligations of state and political subdivisions [Member]
Schedule Of Fair Value And Gross Unrealized Losses [Abstract]
Fair Value Less Than 12 Months	8
Unrealized Losses Less Than 12 Months
Fair Value 12 Months or Greater
Unrealized Losses 12 Months or Greater
Fair Value Total	8
Unrealized Losses Total
Fair Value Less Than 12 Months	1,382
Unrealized Losses Less Than 12 Months	(46)
Fair Value 12 Months or Greater	10
Unrealized Losses 12 Months or Greater
Fair Value Total	1,392
Unrealized Losses Total	(46)
Other debt securities [Member]
Schedule Of Fair Value And Gross Unrealized Losses [Abstract]
Fair Value Less Than 12 Months
Unrealized Losses Less Than 12 Months
Fair Value 12 Months or Greater	13
Unrealized Losses 12 Months or Greater	(12)
Fair Value Total	13
Unrealized Losses Total	(12)
Corporate debt securities [Member]
Schedule Of Fair Value And Gross Unrealized Losses [Abstract]
Fair Value Less Than 12 Months	214
Unrealized Losses Less Than 12 Months	(5)
Fair Value 12 Months or Greater	420
Unrealized Losses 12 Months or Greater	(87)
Fair Value Total	634
Unrealized Losses Total	(92)
Perpetual preferred securities [Member]
Schedule Of Fair Value And Gross Unrealized Losses [Abstract]
Fair Value Less Than 12 Months
Unrealized Losses Less Than 12 Months
Fair Value 12 Months or Greater	112
Unrealized Losses 12 Months or Greater	(20)
Fair Value Total	112
Unrealized Losses Total	$ (20)

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Employee Benefits (Tables)

9 Months Ended

Sep. 30, 2013

Compensation And Retirement Disclosure [Abstract]

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)	2013			2012			2013			2012			2013			2012			2013			2012
Service cost	$	42		$	33		$	1		$	2		$	126		$	97		$	3		$	4
Interest cost		43			42			1			1			128			126			3			5
Expected return on plan assets		(44	)		(48	)		–			(1	)		(132	)		(143	)		(1	)		(2	)
Prior service cost (credit) and transition obligation (asset) amortization		(1	)		(2	)		–			–			(4	)		(4	)		–			–
Actuarial loss (gain) amortization		66			41			(3	)		(1	)		198			121			(8	)		(5	)
Net periodic benefit cost	$	106		$	66		$	(1	)	$	1		$	316		$	197		$	(3	)	$	2

XML

Loans and Allowance for Credit Losses - Carrying Amount of Covered Assets (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Covered Assets [Line Items]
Covered loans	$ 9,396	$ 11,308
Total covered assets	9,572	11,505
Purchased Impaired Loans	4,076	5,301
Purchased Nonimpaired Loans	3,535	4,727
Other Assets	1,961	1,477
Commercial [Member]
Covered Assets [Line Items]
Covered loans	109	143
Purchased Impaired Loans
Purchased Nonimpaired Loans	109	143
Other Assets
Commercial Real Estate [Member]
Covered Assets [Line Items]
Covered loans	2,776	4,018
Purchased Impaired Loans	973	1,323
Purchased Nonimpaired Loans	1,803	2,695
Other Assets
Residential Mortgages [Member]
Covered Assets [Line Items]
Covered loans	4,038	5,087
Purchased Impaired Loans	3,103	3,978
Purchased Nonimpaired Loans	935	1,109
Other Assets
Credit Card [Member]
Covered Assets [Line Items]
Covered loans	5	5
Purchased Impaired Loans
Purchased Nonimpaired Loans	5	5
Other Assets
Other Retail [Member]
Covered Assets [Line Items]
Covered loans	683	775
Purchased Impaired Loans
Purchased Nonimpaired Loans	683	775
Other Assets
Losses Reimbursable by FDIC [Member]
Covered Assets [Line Items]
Covered loans	820	1,280
Purchased Impaired Loans
Purchased Nonimpaired Loans
Other Assets	820	1,280
Unamortized Changes in FDIC asset [Member]
Covered Assets [Line Items]
Covered loans	965
Purchased Impaired Loans
Purchased Nonimpaired Loans
Other Assets	965
Covered Loans [Member]
Covered Assets [Line Items]
Covered loans	9,396	11,308
Purchased Impaired Loans	4,076	5,301
Purchased Nonimpaired Loans	3,535	4,727
Other Assets	1,785	1,280
Foreclosed Real Estate [Member]
Covered Assets [Line Items]
Total covered assets	176	197
Purchased Impaired Loans
Purchased Nonimpaired Loans
Other Assets	$ 176	$ 197

XML

Preferred Stock - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended	9 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013 Series H [Member]	May 02, 2013 Series H [Member]
Class of Stock Disclosures [Abstract]
Number of preferred stock, shares authorized	50,000,000	50,000,000	50,000,000
Preferred Stock, Shares Issued					20,000
Liquidation preference per share					$ 25,000
Preferred stock dividend rate fixed percentage				5.15%
Redemption period of preferred stock				90 days
Preferred stock redemption date				Jul. 15, 2018
Impact of preferred stock redemption		$ 8		$ 8

XML

Loans and Allowance for Credit Losses - Schedule of Loans Modified as TDRs that have Subsequently been Fully or Partially Charged-Off or Became 90 Days or More Past Due (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013 SecurityLoan	Sep. 30, 2012 SecurityLoan	Sep. 30, 2013 SecurityLoan	Sep. 30, 2012 SecurityLoan
Financing Receivable, Modifications [Line Items]
Number of Loans	2,755	3,305	12,345	9,938
Amount Defaulted	$ 208	$ 99	$ 966	$ 519
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	143	195	483	652
Amount Defaulted	37	2	42	33
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	30	13	72	96
Amount Defaulted	18	12	90	176
Residential Mortgages [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	303	116	673	427
Amount Defaulted	41	30	100	64
Credit Card [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	1,485	2,536	5,109	7,452
Amount Defaulted	8	14	29	42
Other Retail [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	278	189	1,164	531
Amount Defaulted	10	4	53	8
Total Loans, Excluding GNMA and Covered Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	2,239	3,049	7,501	9,158
Amount Defaulted	114	62	314	323
Loans Purchased from GNMA Mortgage Pools [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	492	248	4,795	731
Amount Defaulted	69	34	615	106
Covered Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	24	8	49	49
Amount Defaulted	$ 25	$ 3	$ 37	$ 90

XML

Investment Securities - Additional Information (Detail) (USD $) In Billions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Investments Debt And Equity Securities [Abstract]
Weighted-average maturity of the available-for-sale investment securities (in years)	5 years 6 months	4 years 1 month 6 days
Weighted-average yields of available-for-sale investment securities	2.70%	2.93%
Weighted-average maturity of the held-to-maturity investment securities (in years)	4 years 2 months 12 days	3 years 3 months 18 days
Weighted-average yields of held-to-maturity investment securities	1.97%	1.94%
Fair value of securities pledged	$ 15.5	$ 20.1
Fair value of securities pledged as collateral where counterparty has right to repledge or resell	$ 2.0	$ 3.5

XML

Mortgage Servicing Rights - 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, 2013	Dec. 31, 2012
Down Scenario [Member] | MSR Portfolio [Member]
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	$ (494)	$ (370)
Net fair value 50 basis points	(223)	(217)
Net fair value 25 basis points	(107)	(118)
Down Scenario [Member] | Derivative Instrument Hedges [Member]
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	427	473
Net fair value 50 basis points	211	249
Net fair value 25 basis points	102	124
Down Scenario [Member] | Net Sensitivity [Member]
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	(67)	103
Net fair value 50 basis points	(12)	32
Net fair value 25 basis points	(5)	6
Up Scenario [Member] | MSR Portfolio [Member]
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	324	480
Net fair value 50 basis points	173	249
Net fair value 25 basis points	92	126
Up Scenario [Member] | Derivative Instrument Hedges [Member]
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	(317)	(486)
Net fair value 50 basis points	(174)	(243)
Net fair value 25 basis points	(93)	(121)
Up Scenario [Member] | Net Sensitivity [Member]
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	7	(6)
Net fair value 50 basis points	(1)	6
Net fair value 25 basis points	$ (1)	$ 5

XML

Fair Values of Assets and Liabilities - Valuation Assumption Ranges for Level 3 Available - for - Sale Investment Securities (Detail)	Sep. 30, 2013
Minimum [Member] | Residential Non-Agency Prime [Member] | Residential [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated lifetime prepayment rates	6.00%
Lifetime probability of default rates
Lifetime loss severity rates	25.00%
Discount margin	2.00%
Minimum [Member] | Residential Non-Agency Non-Prime [Member] | Residential [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated lifetime prepayment rates	2.00%
Lifetime probability of default rates	4.00%
Lifetime loss severity rates	15.00%
Discount margin	1.00%
Minimum [Member] | Asset-Backed Securities [Member] | Asset Backed Securities Other [Member]
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	8.00%
Maximum [Member] | Residential Non-Agency Prime [Member] | Residential [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated lifetime prepayment rates	20.00%
Lifetime probability of default rates	7.00%
Lifetime loss severity rates	65.00%
Discount margin	6.00%
Maximum [Member] | Residential Non-Agency Non-Prime [Member] | Residential [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated lifetime prepayment rates	10.00%
Lifetime probability of default rates	11.00%
Lifetime loss severity rates	70.00%
Discount margin	6.00%
Maximum [Member] | Asset-Backed Securities [Member] | Asset Backed Securities Other [Member]
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	8.00%
Average [Member] | Residential Non-Agency Prime [Member] | Residential [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated lifetime prepayment rates	13.00%
Lifetime probability of default rates	4.00%
Lifetime loss severity rates	43.00%
Discount margin	4.00%
Average [Member] | Residential Non-Agency Non-Prime [Member] | Residential [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Estimated lifetime prepayment rates	6.00%
Lifetime probability of default rates	7.00%
Lifetime loss severity rates	54.00%
Discount margin	3.00%
Average [Member] | Asset-Backed Securities [Member] | Asset Backed Securities Other [Member]
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	8.00%

XML

Fair Values of Assets and Liabilities - Valuation Assumption Ranges for MSRs (Detail)	Sep. 30, 2013	Dec. 31, 2012
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Expected prepayment	12.30%	20.10%
Discount rate	10.20%	10.40%
Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Expected prepayment	10.00%
Discount rate	10.00%
Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Expected prepayment	22.00%
Discount rate	13.00%
Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Expected prepayment	12.00%
Discount rate	10.00%

XML

Fair Values of Assets and Liabilities - Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013		Jun. 30, 2013	Dec. 31, 2012		Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities before netting	$ 1,825			$ 2,178
Derivative liabilities netting	(1,358)			(1,549)
Derivative assets before netting	1,362			1,546
Derivative assets netting	(572)			(418)
Available-for-sale securities	39,307	[1]		40,139	[1]
Mortgage loans held for sale	3,844			7,957
Mortgage servicing rights	2,577		2,377	1,700		1,553	1,594	1,519
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities total	522			634
Derivative assets total	973			1,388
Available-for-sale securities	39,307			40,139
Mortgage loans held for sale	3,844			7,957
Mortgage servicing rights	2,577			1,700
Other assets	1,007			480
Total	47,708			51,664
Short-term borrowings	764			401
Total	1,286			1,035
Fair Value, Measurements, Recurring [Member] | U.S. Treasury and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	1,521			1,226
Fair Value, Measurements, Recurring [Member] | Obligations of state and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	5,820			6,455
Fair Value, Measurements, Recurring [Member] | Obligations of foreign governments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	6			6
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	642			731
Fair Value, Measurements, Recurring [Member] | Perpetual preferred securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	209			218
Fair Value, Measurements, Recurring [Member] | Other investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	282			202
Fair Value, Measurements, Recurring [Member] | Residential [Member] | Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	29,220			29,495
Fair Value, Measurements, Recurring [Member] | Residential [Member] | Residential Non-Agency Prime [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	500			624
Fair Value, Measurements, Recurring [Member] | Residential [Member] | Residential Non-Agency Non-Prime [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	303			355
Fair Value, Measurements, Recurring [Member] | Commercial [Member] | Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	169			193
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Collateralized Loan Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	25			42
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Asset Backed Securities Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	610			592
Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities before netting
Derivative assets before netting
Available-for-sale securities	728			678
Mortgage loans held for sale
Mortgage servicing rights
Other assets	85			94
Total	813			772
Short-term borrowings	231			50
Total	231			50
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	463			491
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of state and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of foreign governments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Perpetual preferred securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Other investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	265			187
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Residential [Member] | Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Residential [Member] | Residential Non-Agency Prime [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Residential [Member] | Residential Non-Agency Non-Prime [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial [Member] | Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Collateralized Loan Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Asset Backed Securities Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities before netting	1,827			2,128
Derivative assets before netting	875			572
Available-for-sale securities	37,727			38,458
Mortgage loans held for sale	3,844			7,957
Mortgage servicing rights
Other assets	922			386
Total	43,368			47,373
Short-term borrowings	533			351
Total	2,360			2,479
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	1,058			735
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of state and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	5,820			6,455
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of foreign governments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	6			6
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	633			722
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Perpetual preferred securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	209			218
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Other investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	17			15
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Residential [Member] | Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	29,220			29,495
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Residential [Member] | Residential Non-Agency Prime [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Residential [Member] | Residential Non-Agency Non-Prime [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial [Member] | Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	169			193
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Collateralized Loan Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	25			42
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Asset Backed Securities Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	570			577
Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities before netting	53			55
Derivative assets before netting	670			1,234
Available-for-sale securities	852			1,003
Mortgage loans held for sale
Mortgage servicing rights	2,577			1,700
Other assets
Total	4,099			3,937
Short-term borrowings
Total	53			55
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of state and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of foreign governments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	9			9
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Perpetual preferred securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Other investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Residential [Member] | Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Residential [Member] | Residential Non-Agency Prime [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	500			624
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Residential [Member] | Residential Non-Agency Non-Prime [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	303			355
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial [Member] | Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Collateralized Loan Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Asset Backed Securities Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	40			15
Netting [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities netting	(1,358)			(1,549)
Derivative assets netting	(572)			(418)
Available-for-sale securities
Mortgage loans held for sale
Mortgage servicing rights
Other assets
Total	(572)			(418)
Short-term borrowings
Total	(1,358)			(1,549)
Netting [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Netting [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of state and political subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Netting [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of foreign governments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Netting [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Netting [Member] | Fair Value, Measurements, Recurring [Member] | Perpetual preferred securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Netting [Member] | Fair Value, Measurements, Recurring [Member] | Other investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Netting [Member] | Fair Value, Measurements, Recurring [Member] | Residential [Member] | Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Netting [Member] | Fair Value, Measurements, Recurring [Member] | Residential [Member] | Residential Non-Agency Prime [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Netting [Member] | Fair Value, Measurements, Recurring [Member] | Residential [Member] | Residential Non-Agency Non-Prime [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Netting [Member] | Fair Value, Measurements, Recurring [Member] | Commercial [Member] | Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Netting [Member] | Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Collateralized Loan Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Netting [Member] | Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Asset Backed Securities Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities

[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.

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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2013

Investments Debt And Equity Securities [Abstract]

Investment Securities

Table 4 Investment Securities

	Available-for-Sale									Held-to-Maturity
At September 30, 2013 (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	$	578	$	578		.2		.95	%	$	2,112	$	2,120		.4		.98	%
Maturing after one year through five years		48		51		3.1		3.39			80		81		1.7		1.36
Maturing after five years through ten years		740		703		8.9		2.11			1,116		1,056		8.7		1.99
Maturing after ten years		201		189		12.1		1.84			60		60		11.4		1.77
Total	$	1,567	$	1,521		5.9		1.69	%	$	3,368	$	3,317		3.4		1.34	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	482	$	486		.7		1.98	%	$	23	$	23		.6		2.13	%
Maturing after one year through five years		16,679		16,697		3.8		2.17			23,127		23,060		3.6		2.17
Maturing after five years through ten years		11,086		11,126		5.9		1.90			9,496		9,331		5.6		1.75
Maturing after ten years		1,874		1,883		12.8		1.23			734		746		12.2		1.27
Total	$	30,121	$	30,192		5.1		2.01	%	$	33,380	$	33,160		4.3		2.03	%
Asset-Backed Securities (a)
Maturing in one year or less	$	–	$	–		–		7.65	%	$	–	$	–		.3		.41	%
Maturing after one year through five years		56		62		2.7		2.58			11		14		3.6		.85
Maturing after five years through ten years		562		573		6.8		2.66			5		5		6.7		.90
Maturing after ten years		–		–		17.8		5.19			2		10		21.3		.77
Total	$	618	$	635		6.4		2.66	%	$	18	$	29		6.3		.85	%
Obligations of State and Political Subdivisions (b) (c)
Maturing in one year or less	$	62	$	63		.5		6.16	%	$	–	$	–		.5		7.31	%
Maturing after one year through five years		4,810		4,930		2.9		6.73			3		3		2.2		9.29
Maturing after five years through ten years		486		477		7.0		5.81			2		2		7.4		7.74
Maturing after ten years		374		350		20.2		6.14			12		12		14.0		5.34
Total	$	5,732	$	5,820		4.3		6.61	%	$	17	$	17		11.2		6.24	%
Other Debt Securities
Maturing in one year or less	$	6	$	6		.4		1.16	%	$	4	$	4		.6		1.46	%
Maturing after one year through five years		–		–		–		–			91		91		2.3		1.15
Maturing after five years through ten years		–		–		–		–			26		14		7.1		1.01
Maturing after ten years		734		642		21.8		2.73			–		–		–		–
Total	$	740	$	648		21.6		2.71	%	$	121	$	109		3.3		1.13	%
Other Investments	$	462	$	491		14.0		2.12	%	$	–	$	–		–		–	%
Total investment securities (d)	$	39,240	$	39,307		5.5		2.70	%	$	36,904	$	36,632		4.2		1.97	%

(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 4.1 years at December 31, 2012, with a corresponding weighted-average yield of 2.93 percent. The weighted-average maturity of the held-to-maturity investment securities was 3.3 years at December 31, 2012, with a corresponding weighted-average yield of 1.94 percent. The increases in the weighted-average maturities from December 31, 2012 to September 30, 2013 related to the impact of higher interest rates on anticipated prepayments on mortgage-backed securities.

(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, 2013					December 31, 2012
(Dollars in Millions)	Amortized Cost		Percent of Total			Amortized Cost		Percent of Total
U.S. Treasury and agencies	$	4,935		6.5	%	$	4,365		5.9	%
Mortgage-backed securities		63,501		83.4			61,019		83.1
Asset-backed securities		636		.8			637		.9
Obligations of state and political subdivisions		5,749		7.6			6,079		8.3
Other debt securities and investments		1,323		1.7			1,329		1.8
Total investment securities	$	76,144		100.0	%	$	73,429		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, 2013												December 31, 2012
					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	$	3,368	$	9	$	–		$	(60	)	$	3,317	$	3,154	$	27	$	–		$	–		$	3,181
Mortgage-backed securities
Residential
Agency		33,378		234		–			(454	)		33,158		31,064		545		–			(6	)		31,603
Non-agency non-prime (d)		1		–		–			–			1		1		–		–			–			1
Commercial non-agency		1		–		–			–			1		2		–		–			–			2
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		2		9		–			–			11		7		15		–			–			22
Other		16		4		(1	)		(1	)		18		19		2		(3	)		(1	)		17
Obligations of state and political subdivisions		17		–		–			–			17		20		1		–			–			21
Obligations of foreign governments		7		–		–			–			7		7		–		–			–			7
Other debt securities		114		–		–			(12	)		102		115		–		–			(17	)		98
Total held-to-maturity	$	36,904	$	256	$	(1	)	$	(527	)	$	36,632	$	34,389	$	590	$	(3	)	$	(24	)	$	34,952
Available-for-sale (b)
U.S. Treasury and agencies	$	1,567	$	5	$	–		$	(51	)	$	1,521	$	1,211	$	16	$	–		$	(1	)	$	1,226
Mortgage-backed securities
Residential
Agency		29,136		476		–			(392	)		29,220		28,754		746		–			(5	)		29,495
Non-agency
Prime (c)		513		2		(10	)		(5	)		500		641		3		(16	)		(4	)		624
Non-prime (d)		307		3		(6	)		(1	)		303		372		4		(20	)		(1	)		355
Commercial agency		165		4		–			–			169		185		8		–			–			193
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		20		5		–			–			25		32		10		–			–			42
Other		598		13		–			(1	)		610		579		14		–			(1	)		592
Obligations of state and political subdivisions		5,732		134		–			(46	)		5,820		6,059		396		–			–			6,455
Obligations of foreign governments		6		–		–			–			6		6		–		–			–			6
Corporate debt securities		734		–		–			(92	)		642		814		2		–			(85	)		731
Perpetual preferred securities		205		24		–			(20	)		209		205		27		–			(14	)		218
Other investments		257		25		–			–			282		182		20		–			–			202
Total available-for-sale	$	39,240	$	691	$	(16	)	$	(608	)	$	39,307	$	39,040	$	1,246	$	(36	)	$	(111	)	$	40,139

(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)	2013		2012		2013		2012
Taxable	$	357	$	369	$	1,029	$	1,166
Non-taxable		63		69		193		210
Total interest income from investment securities	$	420	$	438	$	1,222	$	1,376

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)	2013		2012			2013		2012
Realized gains	$	–	$	115		$	21	$	145
Realized losses		–		(99	)		–		(99	)
Net realized gains (losses)	$	–	$	16		$	21	$	46
Income tax (benefit) on net realized gains (losses)	$	–	$	7		$	8	$	18

Summary of Other than Temporary Impairment by Investment Category

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

	2013									2012
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)		$	(1	)	$	–	$	(1	)	$	(5	)	$	(3	)	$	(8	)
Non-prime (b)			(2	)		1		(1	)		(10	)		5			(5	)
Total available-for-sale		$	(3	)	$	1	$	(2	)	$	(15	)	$	2		$	(13	)

(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 (loss) for investment securities determined to be other-than-temporarily impaired during the period. Gains represent recoveries in the fair value of securities that had non-credit other-than-temporary impairment during the period.

	2013									2012
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)		$	(5	)	$	2	$	(3	)	$	(8	)	$	(12	)	$	(20	)
Non-prime (b)			(8	)		6		(2	)		(27	)		15			(12	)
Commercial non-agency			–			–		–			(1	)		(1	)		(2	)
Other asset-backed securities			–			–		–			(1	)		1			–
Perpetual preferred securities			–			–		–			(27	)		–			(27	)
Total available-for-sale		$	(13	)	$	8	$	(5	)	$	(64	)	$	3		$	(61	)

(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 (loss) for investment securities determined to be other-than-temporarily impaired during the period. Gains represent recoveries in the fair value of securities that had non-credit other-than-temporary impairment during the period.

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, 2013
Estimated lifetime prepayment rates		12	%		18	%		13	%		4	%		10	%		6	%
Lifetime probability of default rates		3			5			4			5			10			7
Lifetime loss severity rates		25			50			48			15			60			51
December 31, 2012
Estimated lifetime prepayment rates		6	%		22	%		14	%		3	%		10	%		6	%
Lifetime probability of default rates		3			6			4			3			10			7
Lifetime loss severity rates		40			50			47			45			65			56

(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

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

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2013			2012			2013			2012
Balance at beginning of period	$	124		$	277		$	134		$	298
Additions to Credit Losses Due to Other-than-temporary Impairments
Credit losses on securities not previously considered other-than-temporarily impaired		–			2			–			5
Decreases in expected cash flows on securities for which other-than-temporary impairment was previously recognized		3			13			13			32
Total other-than-temporary impairment on debt securities		3			15			13			37
Other Changes in Credit Losses
Increases in expected cash flows		(1	)		–			(2	)		(14	)
Realized losses (a)		(4	)		(4	)		(18	)		(33	)
Credit losses on security sales and securities expected to be sold		–			(142	)		(5	)		(142	)
Balance at end of period	$	122		$	146		$	122		$	146

(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

At September 30, 2013, 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, 2013:

	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
U.S. Treasury and agencies	$	1,056	$	(60	)	$	–	$	–		$	1,056	$	(60	)
Mortgage-backed securities
Residential agency		20,034		(452	)		85		(2	)		20,119		(454	)
Commercial non-agency		1		–			–		–			1		–
Other asset-backed securities		–		–			10		(2	)		10		(2	)
Obligations of state and political subdivisions		8		–			–		–			8		–
Other debt securities		–		–			13		(12	)		13		(12	)
Total held-to-maturity	$	21,099	$	(512	)	$	108	$	(16	)	$	21,207	$	(528	)
Available-for-sale
U.S. Treasury and agencies	$	853	$	(51	)	$	–	$	–		$	853	$	(51	)
Mortgage-backed securities
Residential
Agency		13,540		(389	)		343		(3	)		13,883		(392	)
Non-agency (a)
Prime (b)		137		(2	)		206		(13	)		343		(15	)
Non-prime (c)		128		(2	)		81		(5	)		209		(7	)
Commercial agency		61		–			–		–			61		–
Other asset-backed securities		25		(1	)		3		–			28		(1	)
Obligations of state and political subdivisions		1,382		(46	)		10		–			1,392		(46	)
Corporate debt securities		214		(5	)		420		(87	)		634		(92	)
Perpetual preferred securities		–		–			112		(20	)		112		(20	)
Total available-for-sale	$	16,340	$	(496	)	$	1,175	$	(128	)	$	17,515	$	(624	)

(a) The Company has $22 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 economic conditions worsen. Additionally, 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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Consolidated Statement of Shareholders' Equity (Unaudited) (USD $) In Millions	Total	Common Stock [Member]	Preferred Stock [Member]	Capital Surplus [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total U.S. Bancorp Shareholders' Equity [Member]	Noncontrolling Interests [Member]
Beginning Balance at Dec. 31, 2011	$ 34,971	$ 21	$ 2,606	$ 8,238	$ 30,785	$ (6,472)	$ (1,200)	$ 33,978	$ 993
Share, Beginning Balance at Dec. 31, 2011		1,910
Net income (loss)	4,115
Net (income) loss attributable to noncontrolling interests	(112)								(112)
Net income attributable to U.S. Bancorp	4,227				4,227			4,227
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
Beginning Balance at Dec. 31, 2012	40,267	21	4,769	8,201	34,720	(7,790)	(923)	38,998	1,269
Share, Beginning Balance at Dec. 31, 2012		1,869
Net income (loss)	4,261
Net (income) loss attributable to noncontrolling interests	(119)								(119)
Net income attributable to U.S. Bancorp	4,380				4,380			4,380
Other comprehensive income (loss)	(428)						(428)	(428)
Redemption of preferred stock	(500)		(500)	8	(8)			(500)
Preferred stock dividends	(189)				(189)			(189)
Common stock dividends	(1,211)				(1,211)			(1,211)
Issuance of preferred stock	487		487					487
Issuance of common and treasury stock	345			(114)		459		345
Issuance of common and treasury stock, shares		15
Purchase of treasury stock	(1,843)					(1,843)		(1,843)
Purchase of treasury stock, shares		(52)
Distributions to noncontrolling interests	(45)								(45)
Net other changes in noncontrolling interests	315								315
Stock option and restricted stock grants	93			93				93
Ending Balance at Sep. 30, 2013	$ 41,552	$ 21	$ 4,756	$ 8,188	$ 37,692	$ (9,174)	$ (1,351)	$ 40,132	$ 1,420
Shares, Ending Balance at Sep. 30, 2013		1,832

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Basis of Presentation

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

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, 2012. 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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Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities

9 Months Ended

Sep. 30, 2013

Transfers And Servicing [Abstract]

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 14. 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 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 or provide debt financing promoting the development of affordable housing, community development and renewable energy sources. Some of these investments support the Company’s 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 $441 million and $227 million for the three months ended September 30, 2013, and 2012, respectively, and $981 million and $581 million for the nine months ended September 30, 2013 and 2012, respectively. These tax credits are recognized as a reduction of tax expense or, for certain investments, as a reduction to the related investment asset. The Company also recognized, in its Consolidated Statement of Income, $292 million and $263 million of costs related to these investments for the three months ended September 30, 2013 and 2012, respectively, of which $132 million and $123 million, respectively, was included in tax expense and the remainder was included in noninterest expense. The Company recognized $931 million and $677 million of costs related to these investments for the nine months ended September 30, 2013 and 2012, respectively, of which $512 million and $316 million, respectively, was included in tax expense and the remainder was included in noninterest expense.

During 2013, the Company transferred its control over the most significant activities of certain consolidated community development and tax-advantaged investment VIEs to a third party manager. The third party manager also has provided a guarantee to these VIEs related to the occurrence of certain tax credit recapture events and, therefore, has an obligation to absorb certain losses that could potentially be significant to the VIEs. Previously, the Company consolidated these VIEs because it had a controlling financial interest in the entities. After the transfer of control to the third party manager, the Company no longer had a controlling financial interest and deconsolidated the VIEs. The deconsolidation resulted in a decrease in both assets and liabilities, primarily other assets and long-term debt, respectively, of approximately $4.6 billion. The deconsolidation and remeasurement of the Company’s investment in these unconsolidated VIEs to fair value did not materially impact the Company’s Consolidated Statement of Income. The total amount of the Company’s investment in the VIEs was $1.0 billion at September 30, 2013 and is reported in other assets.

At September 30, 2013, approximately $1.8 billion of the Company’s assets and $434 million 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 $7.1 billion and $5.2 billion, respectively, at December 31, 2012. 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 with a guarantee.

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, 2013, $134 million of the held-to-maturity investment securities on the Company’s Consolidated Balance Sheet are related to the conduit, compared with $144 million at December 31, 2012.

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, 2013, $4.8 billion of available-for-sale securities and $4.7 billion of short-term borrowings on the Consolidated Balance Sheet were related to the tender option bond program, compared with $5.3 billion of available-for-sale securities and $5.0 billion of short-term borrowings at December 31, 2012.

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 the 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, 2013 ranged from less than $1 million to $40 million, with an aggregate amount of $2.7 billion, net of $1.9 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, 2012, ranged from less than $1 million to $58 million, with an aggregate amount of $1.9 billion, net of liabilities of $1.3 billion recorded primarily 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 $7.2 billion at September 30, 2013 and $5.2 billion at December 31, 2012. The maximum exposure to loss was primarily related to community development tax-advantaged investments and included $2.6 billion at September 30, 2013 and $1.8 billion at December 31, 2012, on the Company’s Consolidated Balance Sheet, and $4.5 billion at September 30, 2013 and $3.3 billion at December 31, 2012, 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 become worthless, and the community-based business and housing projects and related tax credits completely fail and do not meet certain government compliance requirements.

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Preferred Stock - Number of Shares Issued and Outstanding and Carrying Amount of Preferred Stock (Parenthetical) (Detail) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Equity [Abstract]
Par value of Preference shares issued and outstanding	$ 1.00	$ 1.00

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Investment Securities

9 Months Ended

Sep. 30, 2013

Investments Debt And Equity Securities [Abstract]

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, 2013												December 31, 2012
					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	$	3,368	$	9	$	–		$	(60	)	$	3,317	$	3,154	$	27	$	–		$	–		$	3,181
Mortgage-backed securities
Residential
Agency		33,378		234		–			(454	)		33,158		31,064		545		–			(6	)		31,603
Non-agency non-prime (d)		1		–		–			–			1		1		–		–			–			1
Commercial non-agency		1		–		–			–			1		2		–		–			–			2
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		2		9		–			–			11		7		15		–			–			22
Other		16		4		(1	)		(1	)		18		19		2		(3	)		(1	)		17
Obligations of state and political subdivisions		17		–		–			–			17		20		1		–			–			21
Obligations of foreign governments		7		–		–			–			7		7		–		–			–			7
Other debt securities		114		–		–			(12	)		102		115		–		–			(17	)		98
Total held-to-maturity	$	36,904	$	256	$	(1	)	$	(527	)	$	36,632	$	34,389	$	590	$	(3	)	$	(24	)	$	34,952
Available-for-sale (b)
U.S. Treasury and agencies	$	1,567	$	5	$	–		$	(51	)	$	1,521	$	1,211	$	16	$	–		$	(1	)	$	1,226
Mortgage-backed securities
Residential
Agency		29,136		476		–			(392	)		29,220		28,754		746		–			(5	)		29,495
Non-agency
Prime (c)		513		2		(10	)		(5	)		500		641		3		(16	)		(4	)		624
Non-prime (d)		307		3		(6	)		(1	)		303		372		4		(20	)		(1	)		355
Commercial agency		165		4		–			–			169		185		8		–			–			193
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		20		5		–			–			25		32		10		–			–			42
Other		598		13		–			(1	)		610		579		14		–			(1	)		592
Obligations of state and political subdivisions		5,732		134		–			(46	)		5,820		6,059		396		–			–			6,455
Obligations of foreign governments		6		–		–			–			6		6		–		–			–			6
Corporate debt securities		734		–		–			(92	)		642		814		2		–			(85	)		731
Perpetual preferred securities		205		24		–			(20	)		209		205		27		–			(14	)		218
Other investments		257		25		–			–			282		182		20		–			–			202
Total available-for-sale	$	39,240	$	691	$	(16	)	$	(608	)	$	39,307	$	39,040	$	1,246	$	(36	)	$	(111	)	$	40,139

(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.

The weighted-average maturity of the available-for-sale investment securities was 5.5 years at September 30, 2013, compared with 4.1 years at December 31, 2012. The corresponding weighted-average yields were 2.70 percent and 2.93 percent, respectively. The weighted-average maturity of the held-to-maturity investment securities was 4.2 years at September 30, 2013, and 3.3 years at December 31, 2012. The corresponding weighted-average yields were 1.97 percent and 1.94 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, 2013, 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 $15.5 billion at September 30, 2013, and $20.1 billion at December 31, 2012, 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 $2.0 billion at September 30, 2013, and $3.5 billion at December 31, 2012.

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)	2013		2012		2013		2012
Taxable	$	357	$	369	$	1,029	$	1,166
Non-taxable		63		69		193		210
Total interest income from investment securities	$	420	$	438	$	1,222	$	1,376

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)	2013		2012			2013		2012
Realized gains	$	–	$	115		$	21	$	145
Realized losses		–		(99	)		–		(99	)
Net realized gains (losses)	$	–	$	16		$	21	$	46
Income tax (benefit) on net realized gains (losses)	$	–	$	7		$	8	$	18

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, the existence of any government or agency guarantees, 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:

	2013									2012
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)		$	(1	)	$	–	$	(1	)	$	(5	)	$	(3	)	$	(8	)
Non-prime (b)			(2	)		1		(1	)		(10	)		5			(5	)
Total available-for-sale		$	(3	)	$	1	$	(2	)	$	(15	)	$	2		$	(13	)

(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 (loss) for investment securities determined to be other-than-temporarily impaired during the period. Gains represent recoveries in the fair value of securities that had non-credit other-than-temporary impairment during the period.

	2013									2012
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)		$	(5	)	$	2	$	(3	)	$	(8	)	$	(12	)	$	(20	)
Non-prime (b)			(8	)		6		(2	)		(27	)		15			(12	)
Commercial non-agency			–			–		–			(1	)		(1	)		(2	)
Other asset-backed securities			–			–		–			(1	)		1			–
Perpetual preferred securities			–			–		–			(27	)		–			(27	)
Total available-for-sale		$	(13	)	$	8	$	(5	)	$	(64	)	$	3		$	(61	)

(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 (loss) for investment securities determined to be other-than-temporarily impaired during the period. Gains represent recoveries in the fair value of securities that had non-credit other-than-temporary impairment during the period.

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, 2013
Estimated lifetime prepayment rates		12	%		18	%		13	%		4	%		10	%		6	%
Lifetime probability of default rates		3			5			4			5			10			7
Lifetime loss severity rates		25			50			48			15			60			51
December 31, 2012
Estimated lifetime prepayment rates		6	%		22	%		14	%		3	%		10	%		6	%
Lifetime probability of default rates		3			6			4			3			10			7
Lifetime loss severity rates		40			50			47			45			65			56

(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 (excluding perpetual preferred securities) are summarized as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Millions)	2013			2012			2013			2012
Balance at beginning of period	$	124		$	277		$	134		$	298
Additions to Credit Losses Due to Other-than-temporary Impairments
Credit losses on securities not previously considered other-than-temporarily impaired		–			2			–			5
Decreases in expected cash flows on securities for which other-than-temporary impairment was previously recognized		3			13			13			32
Total other-than-temporary impairment on debt securities		3			15			13			37
Other Changes in Credit Losses
Increases in expected cash flows		(1	)		–			(2	)		(14	)
Realized losses (a)		(4	)		(4	)		(18	)		(33	)
Credit losses on security sales and securities expected to be sold		–			(142	)		(5	)		(142	)
Balance at end of period	$	122		$	146		$	122		$	146

(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, 2013, 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, 2013:

	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
U.S. Treasury and agencies	$	1,056	$	(60	)	$	–	$	–		$	1,056	$	(60	)
Mortgage-backed securities
Residential agency		20,034		(452	)		85		(2	)		20,119		(454	)
Commercial non-agency		1		–			–		–			1		–
Other asset-backed securities		–		–			10		(2	)		10		(2	)
Obligations of state and political subdivisions		8		–			–		–			8		–
Other debt securities		–		–			13		(12	)		13		(12	)
Total held-to-maturity	$	21,099	$	(512	)	$	108	$	(16	)	$	21,207	$	(528	)
Available-for-sale
U.S. Treasury and agencies	$	853	$	(51	)	$	–	$	–		$	853	$	(51	)
Mortgage-backed securities
Residential
Agency		13,540		(389	)		343		(3	)		13,883		(392	)
Non-agency (a)
Prime (b)		137		(2	)		206		(13	)		343		(15	)
Non-prime (c)		128		(2	)		81		(5	)		209		(7	)
Commercial agency		61		–			–		–			61		–
Other asset-backed securities		25		(1	)		3		–			28		(1	)
Obligations of state and political subdivisions		1,382		(46	)		10		–			1,392		(46	)
Corporate debt securities		214		(5	)		420		(87	)		634		(92	)
Perpetual preferred securities		–		–			112		(20	)		112		(20	)
Total available-for-sale	$	16,340	$	(496	)	$	1,175	$	(128	)	$	17,515	$	(624	)

(a) The Company has $22 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 economic conditions worsen. Additionally, 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 issued with high investment grade credit ratings or agency mortgage-backed securities. 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, 2013, 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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Investment Securities - Investment Securities Available for Sale (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013		Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	$ 39,240		$ 39,040
Available-for-sale securities, Unrealized Gains	691		1,246
Available-for-sale securities, Unrealized Losses Other-than-Temporary	(16)		(36)
Available-for-sale securities, Unrealized Losses Other	(608)		(111)
Available-for-sale securities, Fair Value	39,307	[1]	40,139	[1]
U.S. Treasury and agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	1,567		1,211
Available-for-sale securities, Unrealized Gains	5		16
Available-for-sale securities, Unrealized Losses Other-than-Temporary
Available-for-sale securities, Unrealized Losses Other	(51)		(1)
Available-for-sale securities, Fair Value	1,521		1,226
Collateralized Debt/Loan Obligation Asset-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	20		32
Available-for-sale securities, Unrealized Gains	5		10
Available-for-sale securities, Unrealized Losses Other-than-Temporary
Available-for-sale securities, Unrealized Losses Other
Available-for-sale securities, Fair Value	25		42
Asset Backed Securities Other [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	598		579
Available-for-sale securities, Unrealized Gains	13		14
Available-for-sale securities, Unrealized Losses Other-than-Temporary
Available-for-sale securities, Unrealized Losses Other	(1)		(1)
Available-for-sale securities, Fair Value	610		592
Obligations of state and political subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	5,732		6,059
Available-for-sale securities, Unrealized Gains	134		396
Available-for-sale securities, Unrealized Losses Other-than-Temporary
Available-for-sale securities, Unrealized Losses Other	(46)
Available-for-sale securities, Fair Value	5,820		6,455
Obligations of foreign governments [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	6		6
Available-for-sale securities, Unrealized Gains
Available-for-sale securities, Unrealized Losses Other-than-Temporary
Available-for-sale securities, Unrealized Losses Other
Available-for-sale securities, Fair Value	6		6
Corporate debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	734		814
Available-for-sale securities, Unrealized Gains			2
Available-for-sale securities, Unrealized Losses Other-than-Temporary
Available-for-sale securities, Unrealized Losses Other	(92)		(85)
Available-for-sale securities, Fair Value	642		731
Perpetual preferred securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	205		205
Available-for-sale securities, Unrealized Gains	24		27
Available-for-sale securities, Unrealized Losses Other-than-Temporary
Available-for-sale securities, Unrealized Losses Other	(20)		(14)
Available-for-sale securities, Fair Value	209		218
Other Investment [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	257		182
Available-for-sale securities, Unrealized Gains	25		20
Available-for-sale securities, Unrealized Losses Other-than-Temporary
Available-for-sale securities, Unrealized Losses Other
Available-for-sale securities, Fair Value	282		202
Agency [Member] | Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	29,136		28,754
Available-for-sale securities, Unrealized Gains	476		746
Available-for-sale securities, Unrealized Losses Other-than-Temporary
Available-for-sale securities, Unrealized Losses Other	(392)		(5)
Available-for-sale securities, Fair Value	29,220		29,495
Agency [Member] | Commercial [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	165		185
Available-for-sale securities, Unrealized Gains	4		8
Available-for-sale securities, Unrealized Losses Other-than-Temporary
Available-for-sale securities, Unrealized Losses Other
Available-for-sale securities, Fair Value	169		193
Residential Non-Agency Prime [Member] | Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	513		641
Available-for-sale securities, Unrealized Gains	2		3
Available-for-sale securities, Unrealized Losses Other-than-Temporary	(10)		(16)
Available-for-sale securities, Unrealized Losses Other	(5)		(4)
Available-for-sale securities, Fair Value	500		624
Residential Non-Agency Non-Prime [Member] | Residential [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	307		372
Available-for-sale securities, Unrealized Gains	3		4
Available-for-sale securities, Unrealized Losses Other-than-Temporary	(6)		(20)
Available-for-sale securities, Unrealized Losses Other	(1)		(1)
Available-for-sale securities, Fair Value	$ 303		$ 355

[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.

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Preferred Stock (Tables)

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

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, 2013								December 31, 2012
(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
Series F		44,000		1,100		12		1,088		44,000		1,100		12		1,088
Series G		43,400		1,085		10		1,075		43,400		1,085		10		1,075
Series H		20,000		500		13		487		–		–		–		–
Total preferred stock (a)		159,910	$	4,936	$	180	$	4,756		159,910	$	4,936	$	167	$	4,769

(a) The par value of all shares issued and outstanding at September 30, 2013 and December 31, 2012, was $1.00 per share.

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

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)	2013		2012		2013			2012
Federal
Current	$	390	$	461	$	1,506		$	1,416
Deferred		57		50		(35	)		26
Federal income tax		447		511		1,471			1,442
State
Current		84		77		161			239
Deferred		11		5		(3	)		3
State income tax		95		82		158			242
Total income tax provision	$	542	$	593	$	1,629		$	1,684

Reconciliation of Expected Income Tax Expense at Federal Statutory Rate of 35 Percent 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)	2013			2012			2013			2012
Tax at statutory rate	$	690		$	709		$	2,061		$	2,030
State income tax, at statutory rates, net of federal tax benefit		62			53			102			157
Tax effect of
Tax credits, net of related expenses (a)		(176	)		(120	)		(394	)		(322	)
Tax-exempt income		(52	)		(55	)		(159	)		(165	)
Noncontrolling interests		13			15			42			39
Other items		5			(9	)		(23	)		(55	)
Applicable income taxes	$	542		$	593		$	1,629		$	1,684

(a) Excludes tax credits of $209 million for the three and nine months ended September 30, 2013 which were recognized as a reduction to the related investment asset.

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Preferred Stock - Number of Shares Issued and Outstanding and Carrying Amount of Preferred Stock (Detail) (USD $) In Millions, except Share data, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Class of Stock [Line Items]
Shares Issued and Outstanding	159,910	159,910
Liquidation Preference	$ 4,936	$ 4,936
Discount	180	167
Carrying Amount	4,756	4,769
Series A [Member]
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 [Member]
Class of Stock [Line Items]
Shares Issued and Outstanding	40,000	40,000
Liquidation Preference	1,000	1,000
Discount
Carrying Amount	1,000	1,000
Series D [Member]
Class of Stock [Line Items]
Shares Issued and Outstanding		20,000
Liquidation Preference		500
Discount
Carrying Amount		500
Series F [Member]
Class of Stock [Line Items]
Shares Issued and Outstanding	44,000	44,000
Liquidation Preference	1,100	1,100
Discount	12	12
Carrying Amount	1,088	1,088
Series G [Member]
Class of Stock [Line Items]
Shares Issued and Outstanding	43,400	43,400
Liquidation Preference	1,085	1,085
Discount	10	10
Carrying Amount	1,075	1,075
Series H [Member]
Class of Stock [Line Items]
Shares Issued and Outstanding	20,000
Liquidation Preference	500
Discount	13
Carrying Amount	$ 487

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Fair Values of Assets and Liabilities - Differences Between Aggregate Fair Value, Carrying Amount of MLHFS and Aggregate Unpaid Principal Amount (Details) (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Fair Value Disclosures [Abstract]
Fair value carrying amount, total loans	$ 3,844	$ 7,957
Fair value carrying amount, nonaccrual loans	10	8
Fair value carrying amount, loans 90 days or more past due	1	2
Aggregate unpaid principal, total loans	3,693	7,588
Aggregate unpaid principal, nonaccrual loans	15	13
Aggregate unpaid principal, loans 90 days or more past due	1	3
Carrying amount over (under) unpaid principal, total loans	151	369
Carrying amount over (under) unpaid principal, nonaccrual loans	(5)	(5)
Carrying amount over (under) unpaid principal, loans 90 days or more past due		$ (1)

XML

Investment Securities - Investment Securities (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013		Dec. 31, 2012
Investment Securities [Line Items]
Available-for-sale securities, total, amortized cost	$ 39,240		$ 39,040
Available-for-sale securities, total, fair value	39,307	[1]	40,139	[1]
Available-for-sale securities, total, weighted average maturity in years	5 years 6 months		4 years 1 month 6 days
Available-for-sale securities, total, weighted average yield	2.70%
Held-to-maturity securities, Amortized Cost	36,904	[1]	34,389	[1]
Held-to-maturity securities, total, fair value	36,632		34,952
Held-to-maturity securities, total, weighted average maturity in years	4 years 2 months 12 days		3 years 3 months 18 days
Held-to-maturity securities, total, weighted average yield	1.97%
Total investment securities amortized cost	76,144		73,429
Total investment securities, percentage	100.00%		100.00%
U.S. Treasury and agencies [Member]
Investment Securities [Line Items]
Available-for-sale securities, total, amortized cost	1,567
Available-for-sale securities, total, fair value	1,521
Available-for-sale securities, total, weighted average maturity in years	5 years 10 months 24 days
Available-for-sale securities, total, weighted average yield	1.69%
Held-to-maturity securities, total, amortized cost	3,368
Held-to-maturity securities, total, fair value	3,317
Held-to-maturity securities, total, weighted average maturity in years	3 years 4 months 24 days
Held-to-maturity securities, total, weighted average yield	1.34%
Total investment securities amortized cost	4,935		4,365
Total investment securities, percentage	6.50%		5.90%
U.S. Treasury and agencies [Member] | Maturing in one year or less [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing within one year, amortized cost	578
Available-for-sale, securities maturing within one year, fair value	578
Available-for-sale securities, total, weighted average maturity in years	2 months 12 days
Available-for-sale securities, maturing in one year or less, weighted average yield	0.95%
Held-to-maturity securities, maturities within one year, amortized cost	2,112
Held-to-maturity securities, maturities within one year, fair value	2,120
Held-to-maturity securities, total, weighted average maturity in years	4 months 24 days
Held-to-maturity securities, maturing in one year or less, weighted average yield	0.98%
U.S. Treasury and agencies [Member] | Maturing after one year through five years [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing after one through five year, amortized cost	48
Available-for-sale, securities maturing after one through five year, fair value	51
Available-for-sale securities, total, weighted average maturity in years	3 years 1 month 6 days
Available for sale securities, maturing after one year through five years weighted average yield	3.39%
Held-to-maturity securities, maturities after one year through five years, amortized cost	80
Held to maturity securities, maturities after one year through five years, fair value	81
Held-to-maturity securities, total, weighted average maturity in years	1 year 8 months 12 days
Held-to-maturity securities, maturing after one year through five years, weighted average yield	1.36%
U.S. Treasury and agencies [Member] | Maturing after five years through ten years [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing after five through ten year, amortized cost	740
Available-for-sale, securities maturing after five through ten year, fair value	703
Available-for-sale securities, total, weighted average maturity in years	8 years 10 months 24 days
Available-for-sale securities, maturing after five years through ten years, weighted average yield	2.11%
Held-to-maturity securities, maturities after five years through ten years, amortized cost	1,116
Held-to-maturity securities, maturities after five year through ten years, fair value	1,056
Held-to-maturity securities, total, weighted average maturity in years	8 years 8 months 12 days
Held-to-maturity securities, maturing after five year through ten years, weighted average yield	1.99%
U.S. Treasury and agencies [Member] | Maturing after ten years [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing after ten years, amortized cost	201
Available-for-sale, securities maturing after ten years, fair value	189
Available-for-sale securities, total, weighted average maturity in years	12 years 1 month 6 days
Available-for-sale securities, maturing after ten years, weighted average yield	1.84%
Held-to-maturity securities, maturities after ten years, amortized cost	60
Held-to-maturity securities, maturities after ten years, fair value	60
Held-to-maturity securities, total, weighted average maturity in years	11 years 4 months 24 days
Held-to-maturity securities, maturing after ten years, weighted average yield	1.77%
Mortgage-Backed Securities [Member]
Investment Securities [Line Items]
Available-for-sale securities, total, amortized cost	30,121
Available-for-sale securities, total, fair value	30,192
Available-for-sale securities, total, weighted average maturity in years	5 years 1 month 6 days
Available-for-sale securities, total, weighted average yield	2.01%
Held-to-maturity securities, total, amortized cost	33,380
Held-to-maturity securities, total, fair value	33,160
Held-to-maturity securities, total, weighted average maturity in years	4 years 3 months 18 days
Held-to-maturity securities, total, weighted average yield	2.03%
Total investment securities amortized cost	63,501		61,019
Total investment securities, percentage	83.40%		83.10%
Mortgage-Backed Securities [Member] | Maturing in one year or less [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing within one year, amortized cost	482
Available-for-sale, securities maturing within one year, fair value	486
Available-for-sale securities, total, weighted average maturity in years	8 months 12 days
Available-for-sale securities, maturing in one year or less, weighted average yield	1.98%
Held-to-maturity securities, maturities within one year, amortized cost	23
Held-to-maturity securities, maturities within one year, fair value	23
Held-to-maturity securities, total, weighted average maturity in years	7 months 6 days
Held-to-maturity securities, maturing in one year or less, weighted average yield	2.13%
Mortgage-Backed Securities [Member] | Maturing after one year through five years [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing after one through five year, amortized cost	16,679
Available-for-sale, securities maturing after one through five year, fair value	16,697
Available-for-sale securities, total, weighted average maturity in years	3 years 9 months 18 days
Available for sale securities, maturing after one year through five years weighted average yield	2.17%
Held-to-maturity securities, maturities after one year through five years, amortized cost	23,127
Held to maturity securities, maturities after one year through five years, fair value	23,060
Held-to-maturity securities, total, weighted average maturity in years	3 years 7 months 6 days
Held-to-maturity securities, maturing after one year through five years, weighted average yield	2.17%
Mortgage-Backed Securities [Member] | Maturing after five years through ten years [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing after five through ten year, amortized cost	11,086
Available-for-sale, securities maturing after five through ten year, fair value	11,126
Available-for-sale securities, total, weighted average maturity in years	5 years 10 months 24 days
Available-for-sale securities, maturing after five years through ten years, weighted average yield	1.90%
Held-to-maturity securities, maturities after five years through ten years, amortized cost	9,496
Held-to-maturity securities, maturities after five year through ten years, fair value	9,331
Held-to-maturity securities, total, weighted average maturity in years	5 years 7 months 6 days
Held-to-maturity securities, maturing after five year through ten years, weighted average yield	1.75%
Mortgage-Backed Securities [Member] | Maturing after ten years [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing after ten years, amortized cost	1,874
Available-for-sale, securities maturing after ten years, fair value	1,883
Available-for-sale securities, total, weighted average maturity in years	12 years 9 months 18 days
Available-for-sale securities, maturing after ten years, weighted average yield	1.23%
Held-to-maturity securities, maturities after ten years, amortized cost	734
Held-to-maturity securities, maturities after ten years, fair value	746
Held-to-maturity securities, total, weighted average maturity in years	12 years 2 months 12 days
Held-to-maturity securities, maturing after ten years, weighted average yield	1.27%
Asset-Backed Securities [Member]
Investment Securities [Line Items]
Available-for-sale securities, total, amortized cost	618
Available-for-sale securities, total, fair value	635
Available-for-sale securities, total, weighted average maturity in years	6 years 4 months 24 days
Available-for-sale securities, total, weighted average yield	2.66%
Held-to-maturity securities, total, amortized cost	18
Held-to-maturity securities, total, fair value	29
Held-to-maturity securities, total, weighted average maturity in years	6 years 3 months 18 days
Held-to-maturity securities, total, weighted average yield	0.85%
Total investment securities amortized cost	636		637
Total investment securities, percentage	0.80%		0.90%
Asset-Backed Securities [Member] | Maturing in one year or less [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing within one year, amortized cost
Available-for-sale, securities maturing within one year, fair value
Available-for-sale securities, total, weighted average maturity in years
Available-for-sale securities, maturing in one year or less, weighted average yield	7.65%
Held-to-maturity securities, maturities within one year, amortized cost
Held-to-maturity securities, maturities within one year, fair value
Held-to-maturity securities, total, weighted average maturity in years	3 months 18 days
Held-to-maturity securities, maturing in one year or less, weighted average yield	0.41%
Asset-Backed Securities [Member] | Maturing after one year through five years [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing after one through five year, amortized cost	56
Available-for-sale, securities maturing after one through five year, fair value	62
Available-for-sale securities, total, weighted average maturity in years	2 years 8 months 12 days
Available for sale securities, maturing after one year through five years weighted average yield	2.58%
Held-to-maturity securities, maturities after one year through five years, amortized cost	11
Held to maturity securities, maturities after one year through five years, fair value	14
Held-to-maturity securities, total, weighted average maturity in years	3 years 7 months 6 days
Held-to-maturity securities, maturing after one year through five years, weighted average yield	0.85%
Asset-Backed Securities [Member] | Maturing after five years through ten years [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing after five through ten year, amortized cost	562
Available-for-sale, securities maturing after five through ten year, fair value	573
Available-for-sale securities, total, weighted average maturity in years	6 years 9 months 18 days
Available-for-sale securities, maturing after five years through ten years, weighted average yield	2.66%
Held-to-maturity securities, maturities after five years through ten years, amortized cost	5
Held-to-maturity securities, maturities after five year through ten years, fair value	5
Held-to-maturity securities, total, weighted average maturity in years	6 years 8 months 12 days
Held-to-maturity securities, maturing after five year through ten years, weighted average yield	0.90%
Asset-Backed Securities [Member] | Maturing after ten years [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing after ten years, amortized cost
Available-for-sale, securities maturing after ten years, fair value
Available-for-sale securities, total, weighted average maturity in years	17 years 9 months 18 days
Available-for-sale securities, maturing after ten years, weighted average yield	5.19%
Held-to-maturity securities, maturities after ten years, amortized cost	2
Held-to-maturity securities, maturities after ten years, fair value	10
Held-to-maturity securities, total, weighted average maturity in years	21 years 3 months 18 days
Held-to-maturity securities, maturing after ten years, weighted average yield	0.77%
Obligations of state and political subdivisions [Member]
Investment Securities [Line Items]
Available-for-sale securities, total, amortized cost	5,732
Available-for-sale securities, total, fair value	5,820
Available-for-sale securities, total, weighted average maturity in years	4 years 3 months 18 days
Available-for-sale securities, total, weighted average yield	6.61%
Held-to-maturity securities, total, amortized cost	17
Held-to-maturity securities, total, fair value	17
Held-to-maturity securities, total, weighted average maturity in years	11 years 2 months 12 days
Held-to-maturity securities, total, weighted average yield	6.24%
Total investment securities amortized cost	5,749		6,079
Total investment securities, percentage	7.60%		8.30%
Obligations of state and political subdivisions [Member] | Maturing in one year or less [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing within one year, amortized cost	62
Available-for-sale, securities maturing within one year, fair value	63
Available-for-sale securities, total, weighted average maturity in years	6 months
Available-for-sale securities, maturing in one year or less, weighted average yield	6.16%
Held-to-maturity securities, maturities within one year, amortized cost
Held-to-maturity securities, maturities within one year, fair value
Held-to-maturity securities, total, weighted average maturity in years	6 months
Held-to-maturity securities, maturing in one year or less, weighted average yield	7.31%
Obligations of state and political subdivisions [Member] | Maturing after one year through five years [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing after one through five year, amortized cost	4,810
Available-for-sale, securities maturing after one through five year, fair value	4,930
Available-for-sale securities, total, weighted average maturity in years	2 years 10 months 24 days
Available for sale securities, maturing after one year through five years weighted average yield	6.73%
Held-to-maturity securities, maturities after one year through five years, amortized cost	3
Held to maturity securities, maturities after one year through five years, fair value	3
Held-to-maturity securities, total, weighted average maturity in years	2 years 2 months 12 days
Held-to-maturity securities, maturing after one year through five years, weighted average yield	9.29%
Obligations of state and political subdivisions [Member] | Maturing after five years through ten years [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing after five through ten year, amortized cost	486
Available-for-sale, securities maturing after five through ten year, fair value	477
Available-for-sale securities, total, weighted average maturity in years	7 years
Available-for-sale securities, maturing after five years through ten years, weighted average yield	5.81%
Held-to-maturity securities, maturities after five years through ten years, amortized cost	2
Held-to-maturity securities, maturities after five year through ten years, fair value	2
Held-to-maturity securities, total, weighted average maturity in years	7 years 4 months 24 days
Held-to-maturity securities, maturing after five year through ten years, weighted average yield	7.74%
Obligations of state and political subdivisions [Member] | Maturing after ten years [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing after ten years, amortized cost	374
Available-for-sale, securities maturing after ten years, fair value	350
Available-for-sale securities, total, weighted average maturity in years	20 years 2 months 12 days
Available-for-sale securities, maturing after ten years, weighted average yield	6.14%
Held-to-maturity securities, maturities after ten years, amortized cost	12
Held-to-maturity securities, maturities after ten years, fair value	12
Held-to-maturity securities, total, weighted average maturity in years	14 years
Held-to-maturity securities, maturing after ten years, weighted average yield	5.34%
Other Debt Securities and Obligations of Foreign Government [Member]
Investment Securities [Line Items]
Available-for-sale securities, total, amortized cost	740
Available-for-sale securities, total, fair value	648
Available-for-sale securities, total, weighted average maturity in years	21 years 7 months 6 days
Available-for-sale securities, total, weighted average yield	2.71%
Held-to-maturity securities, total, amortized cost	121
Held-to-maturity securities, total, fair value	109
Held-to-maturity securities, total, weighted average maturity in years	3 years 3 months 18 days
Held-to-maturity securities, total, weighted average yield	1.13%
Total investment securities amortized cost	1,323		1,329
Total investment securities, percentage	1.70%		1.80%
Other Debt Securities and Obligations of Foreign Government [Member] | Maturing in one year or less [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing within one year, amortized cost	6
Available-for-sale, securities maturing within one year, fair value	6
Available-for-sale securities, total, weighted average maturity in years	4 months 24 days
Available-for-sale securities, maturing in one year or less, weighted average yield	1.16%
Held-to-maturity securities, maturities within one year, amortized cost	4
Held-to-maturity securities, maturities within one year, fair value	4
Held-to-maturity securities, total, weighted average maturity in years	7 months 6 days
Held-to-maturity securities, maturing in one year or less, weighted average yield	1.46%
Other Debt Securities and Obligations of Foreign Government [Member] | Maturing after one year through five years [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing after one through five year, amortized cost
Available-for-sale, securities maturing after one through five year, fair value
Available-for-sale securities, total, weighted average maturity in years
Available for sale securities, maturing after one year through five years weighted average yield
Held-to-maturity securities, maturities after one year through five years, amortized cost	91
Held to maturity securities, maturities after one year through five years, fair value	91
Held-to-maturity securities, total, weighted average maturity in years	2 years 3 months 18 days
Held-to-maturity securities, maturing after one year through five years, weighted average yield	1.15%
Other Debt Securities and Obligations of Foreign Government [Member] | Maturing after five years through ten years [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing after five through ten year, amortized cost
Available-for-sale, securities maturing after five through ten year, fair value
Available-for-sale securities, total, weighted average maturity in years
Available-for-sale securities, maturing after five years through ten years, weighted average yield
Held-to-maturity securities, maturities after five years through ten years, amortized cost	26
Held-to-maturity securities, maturities after five year through ten years, fair value	14
Held-to-maturity securities, total, weighted average maturity in years	7 years 1 month 6 days
Held-to-maturity securities, maturing after five year through ten years, weighted average yield	1.01%
Other Debt Securities and Obligations of Foreign Government [Member] | Maturing after ten years [Member]
Investment Securities [Line Items]
Available-for-sale, securities maturing after ten years, amortized cost	734
Available-for-sale, securities maturing after ten years, fair value	642
Available-for-sale securities, total, weighted average maturity in years	21 years 9 months 18 days
Available-for-sale securities, maturing after ten years, weighted average yield	2.73%
Held-to-maturity securities, maturities after ten years, amortized cost
Held-to-maturity securities, maturities after ten years, fair value
Held-to-maturity securities, total, weighted average maturity in years
Held-to-maturity securities, maturing after ten years, weighted average yield
Other Investments Including Perpetual Preferred Securities [Member]
Investment Securities [Line Items]
Available-for-sale securities, total, amortized cost	462
Available-for-sale securities, total, fair value	491
Available-for-sale securities, total, weighted average maturity in years	14 years
Available-for-sale securities, total, weighted average yield	2.12%
Held-to-maturity securities, other investments, amortized cost
Held-to-maturity securities, total, fair value
Held-to-maturity securities, total, weighted average maturity in years
Held-to-maturity securities, total, weighted average yield

[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.

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Mortgage Servicing Rights - MSRs and Related Characteristics by Portfolio (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013 BasisPoint Multiple	Jun. 30, 2013	Dec. 31, 2012 BasisPoint Multiple	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011
Servicing Assets at Fair Value [Line Items]
Servicing portfolio	$ 226,727		$ 215,637
Fair value	2,577	2,377	1,700	1,553	1,594	1,519
Value (bps)	114		79
Weighted-average servicing fees (bps)	30		31
Multiple (value/servicing fees)	3.80		2.55
Weighted-average note rate	4.24%		4.54%
Weighted-average age (in years)	2 years 6 months		2 years 7 months 6 days
Weighted-average expected prepayment (constant prepayment rate)	12.30%		20.10%
Weighted-average expected life (in years)	6 years 8 months 12 days		4 years 2 months 12 days
Weighted-average discount rate	10.20%		10.40%
MRBP [Member]
Servicing Assets at Fair Value [Line Items]
Servicing portfolio	15,088		14,143
Fair value	171		154
Value (bps)	113		109
Weighted-average servicing fees (bps)	39		40
Multiple (value/servicing fees)	2.90		2.73
Weighted-average note rate	4.76%		5.13%
Weighted-average age (in years)	4 years		4 years 2 months 12 days
Weighted-average expected prepayment (constant prepayment rate)	13.10%		13.20%
Weighted-average expected life (in years)	6 years 3 months 18 days		6 years 1 month 6 days
Weighted-average discount rate	12.00%		12.10%
Government [Member]
Servicing Assets at Fair Value [Line Items]
Servicing portfolio	41,192		39,048
Fair value	474		314
Value (bps)	115		80
Weighted-average servicing fees (bps)	32		33
Multiple (value/servicing fees)	3.59		2.42
Weighted-average note rate	4.26%		4.57%
Weighted-average age (in years)	2 years 6 months		2 years 4 months 24 days
Weighted-average expected prepayment (constant prepayment rate)	12.60%		21.20%
Weighted-average expected life (in years)	6 years 6 months		4 years 2 months 12 days
Weighted-average discount rate	11.20%		11.40%
Conventional [Member]
Servicing Assets at Fair Value [Line Items]
Servicing portfolio	170,447		162,446
Fair value	$ 1,932		$ 1,232
Value (bps)	113		76
Weighted-average servicing fees (bps)	29		30
Multiple (value/servicing fees)	3.90		2.53
Weighted-average note rate	4.19%		4.48%
Weighted-average age (in years)	2 years 4 months 24 days		2 years 6 months
Weighted-average expected prepayment (constant prepayment rate)	12.20%		20.40%
Weighted-average expected life (in years)	6 years 9 months 18 days		4 years 1 month 6 days
Weighted-average discount rate	9.80%		10.00%

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Fair Values of Assets and Liabilities - Valuation Assumption Ranges for Derivative Commitments (Detail)	Sep. 30, 2013
Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Expected loan close rate	32.00%
Inherent MSR value (basis points per loan)	0.46%
Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Expected loan close rate	100.00%
Inherent MSR value (basis points per loan)	2.19%
Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Expected loan close rate	76.00%
Inherent MSR value (basis points per loan)	1.08%

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Loans and Allowance for Credit Losses - Additional Detail of Allowance for Credit Losses and Related Loan Balances by Portfolio Type (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011
Allowance Balance at End of Period
Loans individually evaluated for impairment	$ 16		$ 40
TDRs collectively evaluated for impairment	572		754
Other loans collectively evaluated for impairment	3,828		3,771
Loans acquired with deteriorated credit quality	162		168
Total allowance for credit losses	4,578	4,612	4,733	4,771	4,864	5,014
Loan balance at end of period
Loans individually evaluated for impairment	472		729
TDRs collectively evaluated for impairment	5,604		5,675
Other loans collectively evaluated for impairment	221,139		211,514
Loans acquired with deteriorated credit quality	4,164		5,411
Total Loans	221,983		212,021
Total loans	231,379		223,329
Commercial [Member]
Allowance Balance at End of Period
Loans individually evaluated for impairment	9		10
TDRs collectively evaluated for impairment	21		28
Other loans collectively evaluated for impairment	1,001		1,013
Loans acquired with deteriorated credit quality
Total allowance for credit losses	1,031	1,023	1,051	1,034	1,037	1,010
Loan balance at end of period
Loans individually evaluated for impairment	171		171
TDRs collectively evaluated for impairment	171		185
Other loans collectively evaluated for impairment	68,615		65,863
Loans acquired with deteriorated credit quality	1		4
Total Loans	68,958		66,223
Commercial Real Estate [Member]
Allowance Balance at End of Period
Loans individually evaluated for impairment	7		30
TDRs collectively evaluated for impairment	21		29
Other loans collectively evaluated for impairment	719		791
Loans acquired with deteriorated credit quality	14		7
Total allowance for credit losses	761	777	857	894	941	1,154
Loan balance at end of period
Loans individually evaluated for impairment	253		510
TDRs collectively evaluated for impairment	360		391
Other loans collectively evaluated for impairment	37,979		35,952
Loans acquired with deteriorated credit quality	86		100
Total Loans	38,678		36,953
Residential Mortgages [Member]
Allowance Balance at End of Period
Loans individually evaluated for impairment
TDRs collectively evaluated for impairment	341		446
Other loans collectively evaluated for impairment	593		489
Loans acquired with deteriorated credit quality
Total allowance for credit losses	934	921	935	961	939	927
Loan balance at end of period
Loans individually evaluated for impairment
TDRs collectively evaluated for impairment	4,357		4,199
Other loans collectively evaluated for impairment	45,812		39,813
Loans acquired with deteriorated credit quality	1		6
Total Loans	50,170		44,018
Credit Card [Member]
Allowance Balance at End of Period
Loans individually evaluated for impairment
TDRs collectively evaluated for impairment	101		153
Other loans collectively evaluated for impairment	764		710
Loans acquired with deteriorated credit quality
Total allowance for credit losses	865	874	863	915	996	992
Loan balance at end of period
Loans individually evaluated for impairment
TDRs collectively evaluated for impairment	335		442
Other loans collectively evaluated for impairment	16,728		16,673
Loans acquired with deteriorated credit quality
Total Loans	17,063		17,115
Other Retail [Member]
Allowance Balance at End of Period
Loans individually evaluated for impairment
TDRs collectively evaluated for impairment	83		97
Other loans collectively evaluated for impairment	741		751
Loans acquired with deteriorated credit quality
Total allowance for credit losses	824	838	848	856	828	831
Loan balance at end of period
Loans individually evaluated for impairment
TDRs collectively evaluated for impairment	281		313
Other loans collectively evaluated for impairment	46,833		47,399
Loans acquired with deteriorated credit quality
Total Loans	47,114		47,712
Total Loans, Excluding Covered Loans [Member]
Allowance Balance at End of Period
Loans individually evaluated for impairment	16		40
TDRs collectively evaluated for impairment	567		753
Other loans collectively evaluated for impairment	3,818		3,754
Loans acquired with deteriorated credit quality	14		7
Total allowance for credit losses	4,415	4,433	4,554	4,660	4,741	4,914
Loan balance at end of period
Loans individually evaluated for impairment	424		681
TDRs collectively evaluated for impairment	5,504		5,530
Other loans collectively evaluated for impairment	215,967		205,700
Loans acquired with deteriorated credit quality	88		110
Total Loans	221,983		212,021
Covered Loans [Member]
Allowance Balance at End of Period
Loans individually evaluated for impairment
TDRs collectively evaluated for impairment	5		1
Other loans collectively evaluated for impairment	10		17
Loans acquired with deteriorated credit quality	148		161
Total allowance for credit losses	163	179	179	111	123	100
Loan balance at end of period
Loans individually evaluated for impairment	48		48
TDRs collectively evaluated for impairment	100		145
Other loans collectively evaluated for impairment	5,172		5,814
Loans acquired with deteriorated credit quality	4,076		5,301
Total loans	$ 9,396		$ 11,308

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Investment Securities - Gross Unrealized Losses and Fair Value of Company's Investments Securities with Unrealized Losses (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013
Schedule Of Fair Value And Gross Unrealized Losses [Abstract]
Unrealized Losses Total	$ 22

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Investment Securities - 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, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Investments Debt And Equity Securities [Abstract]
Realized gains		$ 115	$ 21	$ 145
Realized losses		(99)		(99)
Net realized gains (losses)		16	21	46
Income tax (benefit) on net realized gains (losses)		$ 7	$ 8	$ 18

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Consolidated Balance Sheet (Unaudited) (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Held-to-maturity securities, fair value	$ 36,632,000,000	$ 34,952,000,000
Securities, pledged as collateral	2,000,000,000	3,500,000,000
Mortgage loans, carried at fair value	3,844,000,000	7,957,000,000
Time deposits	100,000	100,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, share-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)	294,069,246	256,294,227
Held-to-maturity Securities [Member]
Securities, pledged as collateral	937,000,000	1,482,000,000
Available-for-Sale Securities [Member]
Securities, pledged as collateral	1,105,000,000	2,042,000,000
Trading Securities [Member]
Securities, pledged as collateral	$ 168,000,000	$ 47,000,000

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 7 Accumulated Other Comprehensive Income (Loss)

Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to accumulated other comprehensive income (loss). The reconciliation of the transactions affecting accumulated other comprehensive income (loss) included in shareholders’ equity is as follows:

Three Months Ended September 30 (Dollars in Millions)	Unrealized Gains (Losses) on Securities Available-For-Sale			Unrealized Gains (Losses) on Securities Transferred From Available-For- Sale to Held-To- Maturity			Unrealized Gains (Losses) on Derivative Hedges			Unrealized Gains (Losses) on Retirement Plans			Foreign Currency Translation			Total
2013
Balance at beginning of period	$	185		$	84		$	(313	)	$	(1,184	)	$	(60	)	$	(1,288	)
Changes in unrealized gains and losses		(237	)		–			(17	)		38			–			(216	)
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		1			–			–			–			–			1
Foreign currency translation adjustment		–			–			–			–			13			13
Reclassification to earnings of realized gains and losses		3			(13	)		47			62			–			99
Applicable income taxes		89			5			(11	)		(38	)		(5	)		40
Balance at end of period	$	41		$	76		$	(294	)	$	(1,122	)	$	(52	)	$	(1,351	)
2012
Balance at beginning of period	$	504		$	134		$	(447	)	$	(977	)	$	(44	)	$	(830	)
Changes in unrealized gains and losses		300			–			(30	)		–			–			270
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		2			–			–			–			–			2
Foreign currency translation adjustment		–			–			–			–			26			26
Reclassification to earnings of realized gains and losses		(1	)		(21	)		53			38			–			69
Applicable income taxes		(115	)		8			(9	)		(14	)		(10	)		(140	)
Balance at end of period	$	690		$	121		$	(433	)	$	(953	)	$	(28	)	$	(603	)

Nine Months Ended September 30 (Dollars in Millions)	Unrealized Gains (Losses) on Securities Available-For-Sale			Unrealized Gains (Losses) on Securities Transferred From Available-For- Sale to Held-To- Maturity			Unrealized Gains (Losses) on Derivative Hedges			Unrealized Gains (Losses) on Retirement Plans			Foreign Currency Translation			Total
2013
Balance at beginning of period	$	679		$	107		$	(404	)	$	(1,265	)	$	(40	)	$	(923	)
Changes in unrealized gains and losses		(1,032	)		–			33			37			–			(962	)
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		8			–			–			–			–			8
Foreign currency translation adjustment		–			–			–			–			(20	)		(20	)
Reclassification to earnings of realized gains and losses		(8	)		(50	)		142			186			–			270
Applicable income taxes		394			19			(65	)		(80	)		8			276
Balance at end of period	$	41		$	76		$	(294	)	$	(1,122	)	$	(52	)	$	(1,351	)
2012
Balance at beginning of period	$	360		$	–		$	(489	)	$	(1,022	)	$	(49	)	$	(1,200	)
Changes in unrealized gains and losses		738			–			(68	)		–			–			670
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		3			–			–			–			–			3
Transfer of securities from available-for-sale to held-to-maturity		(224	)		224			–			–			–			–
Foreign currency translation adjustment		–			–			–			–			34			34
Reclassification to earnings of realized gains and losses		18			(28	)		158			112			–			260
Applicable income taxes		(205	)		(75	)		(34	)		(43	)		(13	)		(370	)
Balance at end of period	$	690		$	121		$	(433	)	$	(953	)	$	(28	)	$	(603	)

Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income and into earnings for the periods presented, is as follows:

	Impact to Net Income
(Dollars in Millions)	Three Months Ended September 30, 2013			Nine Months Ended September 30, 2013			Affected Line Item in the Consolidated Statement of Income
Unrealized gains (losses) on securities available-for-sale
Realized gains (losses) on sale of securities	$	–		$	21		Total securities gains (losses), net
Other-than-temporary impairment recognized in earnings		(3	)		(13	)
		(3	)		8		Total before tax
		1			(3	)	Applicable income taxes
		(2	)		5		Net-of-tax
Unrealized gains (losses) on securities transferred from available-for-sale to held-to-maturity
Amortization of unrealized gains		13			50		Interest income
		(5	)		(19	)	Applicable income taxes
		8			31		Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges		(47	)		(142	)	Net interest income
		18			55		Applicable income taxes
		(29	)		(87	)	Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses), prior service cost (credit) and transition obligation (asset) amortization		(62	)		(186	)	Employee benefits expense
		24			72		Applicable income taxes
		(38	)		(114	)	Net-of-tax
Total impact to net income	$	(61	)	$	(165	)

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Consolidated Statement of Comprehensive Income (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 1,430	$ 1,432	$ 4,261	$ 4,115
Other Comprehensive Income (Loss)
Changes in unrealized gains and losses on securities available-for-sale	(237)	300	(1,032)	738
Other-than-temporary impairment not recognized in earnings on securities available-for-sale	1	2	8	3
Changes in unrealized gains and losses on derivative hedges	(17)	(30)	33	(68)
Foreign currency translation	13	26	(20)	34
Changes in unrealized gains and losses on retirement plans	38		37
Reclassification to earnings of realized gains and losses	99	69	270	260
Income taxes related to other comprehensive income	40	(140)	276	(370)
Total other comprehensive income (loss)	(63)	227	(428)	597
Comprehensive income	1,367	1,659	3,833	4,712
Comprehensive (income) loss attributable to noncontrolling interests	38	42	119	112
Comprehensive income attributable to U.S. Bancorp	$ 1,405	$ 1,701	$ 3,952	$ 4,824

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Loans and Allowance for Credit Losses - Summary of Loans by Portfolio Type and Company's Internal Credit Quality Rating (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	$ 221,983	$ 212,021
Total loans	231,379	223,329
Total outstanding commitments	468,663	451,841
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	225,223	215,731
Total outstanding commitments	460,484	442,047
Special Mention Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,760	1,850
Total outstanding commitments	3,124	3,231
Classified Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	4,396	5,748
Total outstanding commitments	5,055	6,563
Total Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	6,156	7,598
Total outstanding commitments	8,179	9,794
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	68,958	66,223
Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	66,791	63,906
Commercial [Member] | Special Mention Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	1,103	1,114
Commercial [Member] | Classified Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	1,064	1,203
Commercial [Member] | Total Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	2,167	2,317
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	38,678	36,953
Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	36,796	34,096
Commercial Real Estate [Member] | Special Mention Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	578	621
Commercial Real Estate [Member] | Classified Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	1,304	2,236
Commercial Real Estate [Member] | Total Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	1,882	2,857
Residential Mortgages [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	50,170	44,018
Residential Mortgages [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	49,052	42,897
Residential Mortgages [Member] | Special Mention Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	6	18
Residential Mortgages [Member] | Classified Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	1,112	1,103
Residential Mortgages [Member] | Total Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	1,118	1,121
Credit Card [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	17,063	17,115
Credit Card [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	16,779	16,752
Credit Card [Member] | Special Mention Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans
Credit Card [Member] | Classified Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	284	363
Credit Card [Member] | Total Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	284	363
Other Retail [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	47,114	47,712
Other Retail [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	46,744	47,294
Other Retail [Member] | Special Mention Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	34	36
Other Retail [Member] | Classified Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	336	382
Other Retail [Member] | Total Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	370	418
Total Loans, Excluding Covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	221,983	212,021
Total Loans, Excluding Covered Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	216,162	204,945
Total Loans, Excluding Covered Loans [Member] | Special Mention Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	1,721	1,789
Total Loans, Excluding Covered Loans [Member] | Classified Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	4,100	5,287
Total Loans, Excluding Covered Loans [Member] | Total Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, excluding covered loans	5,821	7,076
Covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	9,396	11,308
Covered Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	9,061	10,786
Covered Loans [Member] | Special Mention Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	39	61
Covered Loans [Member] | Classified Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	296	461
Covered Loans [Member] | Total Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 335	$ 522

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Consolidated Balance Sheet (Unaudited) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013		Dec. 31, 2012
Assets
Cash and due from banks	$ 11,615		$ 8,252
Investment securities
Held-to-maturity (fair value $36,632 and $34,952, respectively; including $937 and $1,482 at fair value pledged as collateral, respectively)	36,904	[1]	34,389	[1]
Available-for-sale ($1,105 and $2,042 pledged as collateral, respectively)	39,307	[1]	40,139	[1]
Loans held for sale (including $3,844 and $7,957 of mortgage loans carried at fair value, respectively)	3,858		7,976
Loans
Commercial	68,958		66,223
Commercial real estate	38,678		36,953
Residential mortgages	50,170		44,018
Credit Card	17,063		17,115
Other retail	47,114		47,712
Total Loans	221,983		212,021
Covered loans	9,396		11,308
Total loans	231,379		223,329
Less allowance for loan losses	(4,258)		(4,424)
Net loans	227,121		218,905
Premises and equipment	2,608		2,670
Goodwill	9,173		9,143
Other intangible assets	3,455		2,706
Other assets (including $168 and $47 of trading securities at fair value pledged as collateral, respectively)	26,640	[1]	29,675	[1]
Total assets	360,681		353,855
Deposits
Noninterest-bearing	72,333		74,172
Interest-bearing	152,861		145,972
Time deposits greater than $100,000	36,522		29,039
Total deposits	261,716		249,183
Short-term borrowings	26,128		26,302
Long-term debt	18,750		25,516
Other liabilities	12,535		12,587
Total liabilities	319,129		313,588
Shareholders' equity
Preferred stock	4,756		4,769
Common stock, par value $0.01 a share-authorized: 4,000,000,000 shares; issued: 9/30/13 and 12/31/12 -2,125,725,742 shares	21		21
Capital surplus	8,188		8,201
Retained earnings	37,692		34,720
Less cost of common stock in treasury: 9/30/13-294,069,246 shares; 12/31/12 -256,294,227 shares	(9,174)		(7,790)
Accumulated other comprehensive income (loss)	(1,351)		(923)
Total U.S. Bancorp shareholders' equity	40,132		38,998
Noncontrolling interests	1,420		1,269
Total equity	41,552		40,267
Total liabilities and equity	$ 360,681		$ 353,855

[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.

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Loans and Allowance for Credit Losses - Composition of Loan Portfolio (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Accounts Notes And Loans Receivable Classified [Abstract]
Commercial	$ 63,696	$ 60,742
Lease financing	5,262	5,481
Total commercial	68,958	66,223
Commercial Real Estate
Commercial mortgages	31,467	31,005
Construction and development	7,211	5,948
Total commercial real estate	38,678	36,953
Residential mortgages	36,484	32,648
Home equity loans, first liens	13,686	11,370
Total residential mortgages	50,170	44,018
Credit Card	17,063	17,115
Retail leasing	5,761	5,419
Home equity and second mortgages	15,544	16,726
Revolving credit	3,289	3,332
Installment	5,717	5,463
Automobile	13,130	12,593
Student	3,673	4,179
Total other retail	47,114	47,712
Total loans, excluding covered loans	221,983	212,021
Covered loans	9,396	11,308
Total loans	$ 231,379	$ 223,329
Commercial, Percentage	27.50%	27.20%
Lease financing, Percentage	2.30%	2.50%
Total commercial, Percentage	29.80%	29.70%
Commercial mortgages, Percentage	13.60%	13.90%
Construction and development, Percentage	3.10%	2.60%
Total commercial real estate, Percentage	16.70%	16.50%
Residential mortgages, Percentage	15.80%	14.60%
Home equity loans, first liens, Percentage	5.90%	5.10%
Total residential mortgages, Percentage	21.70%	19.70%
Credit Card, Percentage	7.40%	7.70%
Retail leasing, Percentage	2.50%	2.40%
Home equity and second mortgages, Percentage	6.70%	7.50%
Revolving credit, Percentage	1.40%	1.50%
Installment, Percentage	2.40%	2.40%
Automobile, Percentage	5.70%	5.60%
Student, Percentage	1.60%	1.90%
Total other retail, Percentage	20.30%	21.30%
Total loans, excluding covered loans, Percentage	95.90%	94.90%
Covered Loans, Percentage	4.10%	5.10%
Total loans, Percentage	100.00%	100.00%

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Income Taxes - Components of Income Tax Expense (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Federal
Current	$ 390	$ 461	$ 1,506	$ 1,416
Deferred	57	50	(35)	26
Federal income tax	447	511	1,471	1,442
State
Current	84	77	161	239
Deferred	11	5	(3)	3
State income tax	95	82	158	242
Total income tax provision	$ 542	$ 593	$ 1,629	$ 1,684

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Accumulated Other Comprehensive Income (Loss) - Impact to Consolidated Statement of Income for Items Reclassified Out of Accumulated Other Comprehensive Income and into Earnings (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized gains (losses) on sale of securities		$ 16	$ 21	$ 46
Amortization of unrealized gains on securities transferred from available-for-sale to held-to-maturity, Interest income	3,068	3,227	9,217	9,687
Gains (Losses) on derivative hedges	2,658	2,726	7,927	8,018
Actuarial gains (losses), prior service cost (credit) and transition obligation (asset) amortization	(278)	(225)	(865)	(714)
Total securities gains (losses), net	(3)	1	8	(18)
Applicable income taxes	(542)	(593)	(1,629)	(1,684)
Net income	1,430	1,432	4,261	4,115
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	(61)		(165)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Securities Available-For-Sale [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized gains (losses) on sale of securities			21
Other-than-temporary impairment recognized in earnings	(3)		(13)
Total securities gains (losses), net	(3)		8
Applicable income taxes	1		(3)
Net income	(2)		5
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Securities Transferred From Available For Sale to Held To Maturity [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of unrealized gains on securities transferred from available-for-sale to held-to-maturity, Interest income	13		50
Applicable income taxes	(5)		(19)
Net income	8		31
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivative Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Gains (Losses) on derivative hedges	(47)		(142)
Applicable income taxes	18		55
Net income	(29)		(87)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Retirement Plans [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Actuarial gains (losses), prior service cost (credit) and transition obligation (asset) amortization	(62)		(186)
Applicable income taxes	24		72
Net income	$ (38)		$ (114)

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

Reconciliation of Transactions Affecting Accumulated Other Comprehensive Income (Loss)

The reconciliation of the transactions affecting accumulated other comprehensive income (loss) included in shareholders’ equity is as follows:

Three Months Ended September 30 (Dollars in Millions)	Unrealized Gains (Losses) on Securities Available-For-Sale			Unrealized Gains (Losses) on Securities Transferred From Available-For- Sale to Held-To- Maturity			Unrealized Gains (Losses) on Derivative Hedges			Unrealized Gains (Losses) on Retirement Plans			Foreign Currency Translation			Total
2013
Balance at beginning of period	$	185		$	84		$	(313	)	$	(1,184	)	$	(60	)	$	(1,288	)
Changes in unrealized gains and losses		(237	)		–			(17	)		38			–			(216	)
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		1			–			–			–			–			1
Foreign currency translation adjustment		–			–			–			–			13			13
Reclassification to earnings of realized gains and losses		3			(13	)		47			62			–			99
Applicable income taxes		89			5			(11	)		(38	)		(5	)		40
Balance at end of period	$	41		$	76		$	(294	)	$	(1,122	)	$	(52	)	$	(1,351	)
2012
Balance at beginning of period	$	504		$	134		$	(447	)	$	(977	)	$	(44	)	$	(830	)
Changes in unrealized gains and losses		300			–			(30	)		–			–			270
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		2			–			–			–			–			2
Foreign currency translation adjustment		–			–			–			–			26			26
Reclassification to earnings of realized gains and losses		(1	)		(21	)		53			38			–			69
Applicable income taxes		(115	)		8			(9	)		(14	)		(10	)		(140	)
Balance at end of period	$	690		$	121		$	(433	)	$	(953	)	$	(28	)	$	(603	)

Nine Months Ended September 30 (Dollars in Millions)	Unrealized Gains (Losses) on Securities Available-For-Sale			Unrealized Gains (Losses) on Securities Transferred From Available-For- Sale to Held-To- Maturity			Unrealized Gains (Losses) on Derivative Hedges			Unrealized Gains (Losses) on Retirement Plans			Foreign Currency Translation			Total
2013
Balance at beginning of period	$	679		$	107		$	(404	)	$	(1,265	)	$	(40	)	$	(923	)
Changes in unrealized gains and losses		(1,032	)		–			33			37			–			(962	)
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		8			–			–			–			–			8
Foreign currency translation adjustment		–			–			–			–			(20	)		(20	)
Reclassification to earnings of realized gains and losses		(8	)		(50	)		142			186			–			270
Applicable income taxes		394			19			(65	)		(80	)		8			276
Balance at end of period	$	41		$	76		$	(294	)	$	(1,122	)	$	(52	)	$	(1,351	)
2012
Balance at beginning of period	$	360		$	–		$	(489	)	$	(1,022	)	$	(49	)	$	(1,200	)
Changes in unrealized gains and losses		738			–			(68	)		–			–			670
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		3			–			–			–			–			3
Transfer of securities from available-for-sale to held-to-maturity		(224	)		224			–			–			–			–
Foreign currency translation adjustment		–			–			–			–			34			34
Reclassification to earnings of realized gains and losses		18			(28	)		158			112			–			260
Applicable income taxes		(205	)		(75	)		(34	)		(43	)		(13	)		(370	)
Balance at end of period	$	690		$	121		$	(433	)	$	(953	)	$	(28	)	$	(603	)

Impact to Net Income for Items Reclassified out of Accumulated Other Comprehensive Income and into Earnings

Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income and into earnings for the periods presented, is as follows:

	Impact to Net Income
(Dollars in Millions)	Three Months Ended September 30, 2013			Nine Months Ended September 30, 2013			Affected Line Item in the Consolidated Statement of Income
Unrealized gains (losses) on securities available-for-sale
Realized gains (losses) on sale of securities	$	–		$	21		Total securities gains (losses), net
Other-than-temporary impairment recognized in earnings		(3	)		(13	)
		(3	)		8		Total before tax
		1			(3	)	Applicable income taxes
		(2	)		5		Net-of-tax
Unrealized gains (losses) on securities transferred from available-for-sale to held-to-maturity
Amortization of unrealized gains		13			50		Interest income
		(5	)		(19	)	Applicable income taxes
		8			31		Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges		(47	)		(142	)	Net interest income
		18			55		Applicable income taxes
		(29	)		(87	)	Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses), prior service cost (credit) and transition obligation (asset) amortization		(62	)		(186	)	Employee benefits expense
		24			72		Applicable income taxes
		(38	)		(114	)	Net-of-tax
Total impact to net income	$	(61	)	$	(165	)

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Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

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, 2012. 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

The Company adopted new indemnification asset accounting guidance effective January 1, 2013 applicable to FDIC loss-sharing agreements. The guidance requires any reduction in expected cash flows from the FDIC resulting from increases in expected cash flows from 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. Prior to adoption of this guidance, such increases in expected cash flows of purchased loans and decreases in expected cash flows of the FDIC indemnification assets were considered together and recognized over the remaining life of the loans. The adoption of this guidance did not materially affect the Company’s financial statements.

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Guarantees and Contingent Liabilities - Additional Information (Detail) (USD $)	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Dec. 31, 2011
Guarantees And Contingent Liabilities (Textual) [Abstract]
Liability related to remaining Visa Litigation, carrying amount	$ 59,000,000
Value of airline tickets purchased to deliver at a future date	6,200,000,000
Company held collateral in escrow deposits, letters of credit and indemnities from financial institutions, and liens on various assets	687,000,000
Representation and warranty reserve	176,000,000	190,000,000	240,000,000	220,000,000	216,000,000	160,000,000
Unresolved representation and warranty claims	114,000,000		131,000,000
Loss contingency range of possible loss maximum	$ 200,000,000

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Investment Securities - 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, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Taxable And Tax Exempt Interest Income [Abstract]
Taxable	$ 357	$ 369	$ 1,029	$ 1,166
Non-taxable	63	69	193	210
Total interest income from investment securities	$ 420	$ 438	$ 1,222	$ 1,376

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Earnings Per Share - Additional Information (Detail) (Stock Option [Member]) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options outstanding of common shares	10	9	22

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Loans and Allowance for Credit Losses - Activity in Allowance for Credit Losses (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	$ 4,612	$ 4,864	$ 4,733	$ 5,014
Provision for credit losses	298	488	1,063	1,439
Loans charged off	450	639	1,505	1,951
Less recoveries of loans charged off	(122)	(101)	(352)	(322)
Net loans charged off	328	538	1,153	1,629
Other changes	(4)	(43)	(65)	(53)
Balance at end of period	4,578	4,771	4,578	4,771
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	1,023	1,037	1,051	1,010
Provision for credit losses	19	63	64	247
Loans charged off	65	90	184	296
Less recoveries of loans charged off	(54)	(24)	(100)	(73)
Net loans charged off	11	66	84	223
Other changes
Balance at end of period	1,031	1,034	1,031	1,034
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	777	941	857	1,154
Provision for credit losses	(22)	(22)	(100)	(111)
Loans charged off	17	47	76	206
Less recoveries of loans charged off	(23)	(22)	(80)	(57)
Net loans charged off	(6)	25	(4)	149
Other changes
Balance at end of period	761	894	761	894
Residential Mortgages [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	921	939	935	927
Provision for credit losses	70	143	222	376
Loans charged off	62	127	243	357
Less recoveries of loans charged off	(5)	(6)	(20)	(15)
Net loans charged off	57	121	223	342
Other changes
Balance at end of period	934	961	934	961
Credit Card [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	874	996	863	992
Provision for credit losses	151	119	495	462
Loans charged off	175	186	559	585
Less recoveries of loans charged off	(15)	(19)	(66)	(79)
Net loans charged off	160	167	493	506
Other changes		(33)		(33)
Balance at end of period	865	915	865	915
Other Retail [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	838	828	848	831
Provision for credit losses	84	185	305	431
Loans charged off	122	187	412	503
Less recoveries of loans charged off	(24)	(30)	(83)	(97)
Net loans charged off	98	157	329	406
Other changes
Balance at end of period	824	856	824	856
Total Loans, Excluding Covered Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	4,433	4,741	4,554	4,914
Provision for credit losses	302	488	986	1,405
Loans charged off	441	637	1,474	1,947
Less recoveries of loans charged off	(121)	(101)	(349)	(321)
Net loans charged off	320	536	1,125	1,626
Other changes		(33)		(33)
Balance at end of period	4,415	4,660	4,415	4,660
Covered Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	179	123	179	100
Provision for credit losses	(4)		77	34
Loans charged off	9	2	31	4
Less recoveries of loans charged off	(1)		(3)	(1)
Net loans charged off	8	2	28	3
Other changes	(4)	(10)	(65)	(20)
Balance at end of period	$ 163	$ 111	$ 163	$ 111

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Loans and Allowance for Credit Losses - Carrying Amount of Covered Assets (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2013
Receivables [Abstract]
Loss sharing agreement remaining term	6 years

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Basis of Presentation - Line of Business Financial Performance (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$ 2,714	$ 2,783	$ 8,095	$ 8,186
Net interest income (taxable-equivalent basis), Percent change	(2.50%)		(1.10%)
Noninterest income	2,180	2,395	6,610	7,008
Noninterest income, Percent change	(9.00%)		(5.70%)
Securities gains (losses), net	(3)	1	8	(18)
Securities gains (losses), net, Percent change
Total net revenue	4,891	5,179	14,713	15,176
Total net revenue, Percent change	(5.60%)		(3.10%)
Noninterest expense	2,510	2,542	7,425	7,562
Noninterest expense, Percent change	(1.30%)		(1.80%)
Other intangibles	55	67	167	208
Other intangibles, Percent change	(17.90%)		(19.70%)
Total noninterest expense	2,565	2,609	7,592	7,770
Total noninterest expense, Percent change	(1.70%)		(2.30%)
Income before provision and income taxes	2,326	2,570	7,121	7,406
Income before provision and income taxes, Percent change	(9.50%)		(3.80%)
Provision for credit losses	298	488	1,063	1,439
Provision for credit losses, Percent change	(38.90%)		(26.10%)
Income before income taxes	2,028	2,082	6,058	5,967
Income before income taxes, Percent change	(2.60%)		1.50%
Income taxes and taxable-equivalent adjustment	598	650	1,797	1,852
Income taxes and taxable-equivalent adjustment, Percent change	(8.00%)		(3.00%)
Net income	1,430	1,432	4,261	4,115
Net income, Percent change	(0.10%)		3.50%
Net (income) loss attributable to noncontrolling interests	38	42	119	112
Net (income) loss attributable to noncontrolling interests, Percent change	(9.50%)		6.30%
Net income attributable to U.S. Bancorp	1,468	1,474	4,380	4,227
Net income attributable to U.S. Bancorp, Percent change	(0.40%)		3.60%
Average Balance Sheet
Commercial	68,064	62,192	66,719	59,790
Commercial, Percent change	9.40%		11.60%
Commercial real estate	38,501	36,630	37,872	36,389
Commercial real estate, Percent change	5.10%		4.10%
Residential mortgages	49,139	40,969	47,055	39,328
Residential mortgages, Percent change	19.90%		19.60%
Credit card	16,931	16,551	16,627	16,675
Credit card, Percent change	2.30%		(0.30%)
Other retail	46,994	47,991	47,034	47,940
Other retail, Percent change	(2.10%)		(1.90%)
Total loans, excluding covered loans	219,629	204,333	215,307	200,122
Total loans, excluding covered loans, Percent change	7.50%		7.60%
Covered loans	9,733	12,595	10,375	13,609
Covered loans, Percent change	(22.70%)		(23.80%)
Total loans	229,362	216,928	225,682	213,731
Total loans, Percent change	5.70%		5.60%
Goodwill	9,161	8,934	9,157	8,936
Goodwill, Percent change	2.50%		2.50%
Other intangible assets	3,399	2,613	3,079	2,715
Other intangible assets, Percent change	30.10%		13.40%
Assets	352,161	345,653	351,048	340,807
Assets, Percent change	1.90%		3.00%
Noninterest-bearing deposits	68,264	68,127	67,183	65,423
Noninterest-bearing deposits, Percent change	0.20%		2.70%
Interest checking	48,235	43,207	48,347	45,522
Interest checking, Percent change	11.60%		6.20%
Savings products	88,065	77,273	86,635	75,360
Savings products, Percent change	14.00%		15.00%
Time deposits	47,804	50,674	46,119	46,673
Time deposits, Percent change	(5.70%)		(1.20%)
Total deposits	252,368	239,281	248,284	232,978
Total deposits, Percent change	5.50%		6.60%
Total U.S. Bancorp shareholders' equity	39,936	38,619	39,675	37,105
Total U.S. Bancorp shareholders' equity, Percent change	3.40%		6.90%
Wholesale Banking and Commercial Real Estate [Member]
Condensed Income Statement
Net interest income (taxable-equivalent basis)	526	528	1,557	1,584
Net interest income (taxable-equivalent basis), Percent change	(0.40%)		(1.70%)
Noninterest income	267	299	819	930
Noninterest income, Percent change	(10.70%)		(11.90%)
Securities gains (losses), net
Securities gains (losses), net, Percent change
Total net revenue	793	827	2,376	2,514
Total net revenue, Percent change	(4.10%)		(5.50%)
Noninterest expense	305	310	932	950
Noninterest expense, Percent change	(1.60%)		(1.90%)
Other intangibles	2	4	6	12
Other intangibles, Percent change	(50.00%)		(50.00%)
Total noninterest expense	307	314	938	962
Total noninterest expense, Percent change	(2.20%)		(2.50%)
Income before provision and income taxes	486	513	1,438	1,552
Income before provision and income taxes, Percent change	(5.30%)		(7.30%)
Provision for credit losses	(38)		(120)	3
Provision for credit losses, Percent change
Income before income taxes	524	513	1,558	1,549
Income before income taxes, Percent change	2.10%		0.60%
Income taxes and taxable-equivalent adjustment	191	187	567	564
Income taxes and taxable-equivalent adjustment, Percent change	2.10%		0.50%
Net income	333	326	991	985
Net income, Percent change	2.10%		0.60%
Net (income) loss attributable to noncontrolling interests
Net (income) loss attributable to noncontrolling interests, Percent change
Net income attributable to U.S. Bancorp	333	326	991	985
Net income attributable to U.S. Bancorp, Percent change	2.10%		0.60%
Average Balance Sheet
Commercial	51,409	46,131	50,331	44,296
Commercial, Percent change	11.40%		13.60%
Commercial real estate	20,663	19,661	20,305	19,594
Commercial real estate, Percent change	5.10%		3.60%
Residential mortgages	24	54	28	61
Residential mortgages, Percent change	(55.60%)		(54.10%)
Credit card
Credit card, Percent change
Other retail	6	7	9	5
Other retail, Percent change	(14.30%)		80.00%
Total loans, excluding covered loans	72,102	65,853	70,673	63,956
Total loans, excluding covered loans, Percent change	9.50%		10.50%
Covered loans	340	813	394	1,010
Covered loans, Percent change	(58.20%)		(61.00%)
Total loans	72,442	66,666	71,067	64,966
Total loans, Percent change	8.70%		9.40%
Goodwill	1,604	1,604	1,604	1,604
Goodwill, Percent change
Other intangible assets	24	34	26	38
Other intangible assets, Percent change	(29.40%)		(31.60%)
Assets	78,785	72,579	77,479	70,806
Assets, Percent change	8.60%		9.40%
Noninterest-bearing deposits	30,925	31,167	30,407	30,762
Noninterest-bearing deposits, Percent change	(0.80%)		(1.20%)
Interest checking	10,038	7,897	10,385	10,621
Interest checking, Percent change	27.10%		(2.20%)
Savings products	15,103	10,358	13,354	8,962
Savings products, Percent change	45.80%		49.00%
Time deposits	22,376	21,247	18,459	17,255
Time deposits, Percent change	5.30%		7.00%
Total deposits	78,442	70,669	72,605	67,600
Total deposits, Percent change	11.00%		7.40%
Total U.S. Bancorp shareholders' equity	7,434	6,378	7,331	6,325
Total U.S. Bancorp shareholders' equity, Percent change	16.60%		15.90%
Consumer and Small Business Banking [Member]
Condensed Income Statement
Net interest income (taxable-equivalent basis)	1,141	1,193	3,427	3,555
Net interest income (taxable-equivalent basis), Percent change	(4.40%)		(3.60%)
Noninterest income	719	930	2,276	2,700
Noninterest income, Percent change	(22.70%)		(15.70%)
Securities gains (losses), net
Securities gains (losses), net, Percent change
Total net revenue	1,860	2,123	5,703	6,255
Total net revenue, Percent change	(12.40%)		(8.80%)
Noninterest expense	1,150	1,236	3,514	3,618
Noninterest expense, Percent change	(7.00%)		(2.90%)
Other intangibles	10	13	30	39
Other intangibles, Percent change	(23.10%)		(23.10%)
Total noninterest expense	1,160	1,249	3,544	3,657
Total noninterest expense, Percent change	(7.10%)		(3.10%)
Income before provision and income taxes	700	874	2,159	2,598
Income before provision and income taxes, Percent change	(19.90%)		(16.90%)
Provision for credit losses	160	349	578	878
Provision for credit losses, Percent change	(54.20%)		(34.20%)
Income before income taxes	540	525	1,581	1,720
Income before income taxes, Percent change	2.90%		(8.10%)
Income taxes and taxable-equivalent adjustment	197	191	576	626
Income taxes and taxable-equivalent adjustment, Percent change	3.10%		(8.00%)
Net income	343	334	1,005	1,094
Net income, Percent change	2.70%		(8.10%)
Net (income) loss attributable to noncontrolling interests
Net (income) loss attributable to noncontrolling interests, Percent change
Net income attributable to U.S. Bancorp	343	334	1,005	1,094
Net income attributable to U.S. Bancorp, Percent change	2.70%		(8.10%)
Average Balance Sheet
Commercial	8,475	8,423	8,468	8,123
Commercial, Percent change	0.60%		4.20%
Commercial real estate	17,084	16,203	16,806	16,065
Commercial real estate, Percent change	5.40%		4.60%
Residential mortgages	48,131	40,530	46,251	38,884
Residential mortgages, Percent change	18.80%		18.90%
Credit card
Credit card, Percent change
Other retail	44,728	45,653	44,737	45,602
Other retail, Percent change	(2.00%)		(1.90%)
Total loans, excluding covered loans	118,418	110,809	116,262	108,674
Total loans, excluding covered loans, Percent change	6.90%		7.00%
Covered loans	6,434	7,384	6,690	7,629
Covered loans, Percent change	(12.90%)		(12.30%)
Total loans	124,852	118,193	122,952	116,303
Total loans, Percent change	5.60%		5.70%
Goodwill	3,515	3,515	3,515	3,515
Goodwill, Percent change
Other intangible assets	2,650	1,764	2,293	1,784
Other intangible assets, Percent change	50.20%		28.50%
Assets	139,539	135,715	139,027	132,973
Assets, Percent change	2.80%		4.60%
Noninterest-bearing deposits	22,460	20,981	21,843	19,638
Noninterest-bearing deposits, Percent change	7.00%		11.20%
Interest checking	32,971	30,020	32,801	29,621
Interest checking, Percent change	9.80%		10.70%
Savings products	46,483	43,647	46,061	43,022
Savings products, Percent change	6.50%		7.10%
Time deposits	20,716	23,624	21,590	24,047
Time deposits, Percent change	(12.30%)		(10.20%)
Total deposits	122,630	118,272	122,295	116,328
Total deposits, Percent change	3.70%		5.10%
Total U.S. Bancorp shareholders' equity	12,154	11,551	12,062	11,135
Total U.S. Bancorp shareholders' equity, Percent change	5.20%		8.30%
Wealth Management and Securities Services [Member]
Condensed Income Statement
Net interest income (taxable-equivalent basis)	85	87	267	264
Net interest income (taxable-equivalent basis), Percent change	(2.30%)		1.10%
Noninterest income	305	282	910	827
Noninterest income, Percent change	8.20%		10.00%
Securities gains (losses), net
Securities gains (losses), net, Percent change
Total net revenue	390	369	1,177	1,091
Total net revenue, Percent change	5.70%		7.90%
Noninterest expense	322	288	962	854
Noninterest expense, Percent change	11.80%		12.60%
Other intangibles	9	10	27	30
Other intangibles, Percent change	(10.00%)		(10.00%)
Total noninterest expense	331	298	989	884
Total noninterest expense, Percent change	11.10%		11.90%
Income before provision and income taxes	59	71	188	207
Income before provision and income taxes, Percent change	(16.90%)		(9.20%)
Provision for credit losses	6	4	7	5
Provision for credit losses, Percent change	50.00%		40.00%
Income before income taxes	53	67	181	202
Income before income taxes, Percent change	(20.90%)		(10.40%)
Income taxes and taxable-equivalent adjustment	19	24	65	73
Income taxes and taxable-equivalent adjustment, Percent change	(20.80%)		(11.00%)
Net income	34	43	116	129
Net income, Percent change	(20.90%)		(10.10%)
Net (income) loss attributable to noncontrolling interests
Net (income) loss attributable to noncontrolling interests, Percent change
Net income attributable to U.S. Bancorp	34	43	116	129
Net income attributable to U.S. Bancorp, Percent change	(20.90%)		(10.10%)
Average Balance Sheet
Commercial	1,774	1,361	1,687	1,264
Commercial, Percent change	30.30%		33.50%
Commercial real estate	653	624	654	607
Commercial real estate, Percent change	4.60%		7.70%
Residential mortgages	983	384	775	379
Residential mortgages, Percent change
Credit card
Credit card, Percent change
Other retail	1,531	1,529	1,544	1,516
Other retail, Percent change	0.10%		1.80%
Total loans, excluding covered loans	4,941	3,898	4,660	3,766
Total loans, excluding covered loans, Percent change	26.80%		23.70%
Covered loans	17	11	14	12
Covered loans, Percent change	54.50%		16.70%
Total loans	4,958	3,909	4,674	3,778
Total loans, Percent change	26.80%		23.70%
Goodwill	1,533	1,469	1,529	1,468
Goodwill, Percent change	4.40%		4.20%
Other intangible assets	166	165	174	172
Other intangible assets, Percent change	0.60%		1.20%
Assets	7,749	6,688	7,513	6,477
Assets, Percent change	15.90%		16.00%
Noninterest-bearing deposits	13,510	14,862	13,807	13,904
Noninterest-bearing deposits, Percent change	(9.10%)		(0.70%)
Interest checking	4,770	3,943	4,716	3,950
Interest checking, Percent change	21.00%		19.40%
Savings products	26,339	23,089	27,081	23,203
Savings products, Percent change	14.10%		16.70%
Time deposits	4,170	5,463	5,228	4,892
Time deposits, Percent change	(23.70%)		6.90%
Total deposits	48,789	47,357	50,832	45,949
Total deposits, Percent change	3.00%		10.60%
Total U.S. Bancorp shareholders' equity	2,398	2,240	2,375	2,223
Total U.S. Bancorp shareholders' equity, Percent change	7.10%		6.80%
Payment Services [Member]
Condensed Income Statement
Net interest income (taxable-equivalent basis)	393	382	1,168	1,154
Net interest income (taxable-equivalent basis), Percent change	2.90%		1.20%
Noninterest income	822	854	2,397	2,402
Noninterest income, Percent change	(3.70%)		(0.20%)
Securities gains (losses), net
Securities gains (losses), net, Percent change
Total net revenue	1,215	1,236	3,565	3,556
Total net revenue, Percent change	(1.70%)		0.30%
Noninterest expense	493	452	1,454	1,344
Noninterest expense, Percent change	9.10%		8.20%
Other intangibles	34	40	104	127
Other intangibles, Percent change	(15.00%)		(18.10%)
Total noninterest expense	527	492	1,558	1,471
Total noninterest expense, Percent change	7.10%		5.90%
Income before provision and income taxes	688	744	2,007	2,085
Income before provision and income taxes, Percent change	(7.50%)		(3.70%)
Provision for credit losses	172	135	553	548
Provision for credit losses, Percent change	27.40%		0.90%
Income before income taxes	516	609	1,454	1,537
Income before income taxes, Percent change	(15.30%)		(5.40%)
Income taxes and taxable-equivalent adjustment	188	222	529	560
Income taxes and taxable-equivalent adjustment, Percent change	(15.30%)		(5.50%)
Net income	328	387	925	977
Net income, Percent change	(15.20%)		(5.30%)
Net (income) loss attributable to noncontrolling interests	(10)	(10)	(29)	(30)
Net (income) loss attributable to noncontrolling interests, Percent change			3.30%
Net income attributable to U.S. Bancorp	318	377	896	947
Net income attributable to U.S. Bancorp, Percent change	(15.60%)		(5.40%)
Average Balance Sheet
Commercial	6,191	6,062	6,030	5,904
Commercial, Percent change	2.10%		2.10%
Commercial real estate
Commercial real estate, Percent change
Residential mortgages
Residential mortgages, Percent change
Credit card	16,931	16,551	16,627	16,675
Credit card, Percent change	2.30%		(0.30%)
Other retail	729	802	744	817
Other retail, Percent change	(9.10%)		(8.90%)
Total loans, excluding covered loans	23,851	23,415	23,401	23,396
Total loans, excluding covered loans, Percent change	1.90%
Covered loans	5	5	5	5
Covered loans, Percent change
Total loans	23,856	23,420	23,406	23,401
Total loans, Percent change	1.90%
Goodwill	2,509	2,346	2,509	2,349
Goodwill, Percent change	6.90%		6.80%
Other intangible assets	557	646	584	717
Other intangible assets, Percent change	(13.80%)		(18.50%)
Assets	30,123	29,517	29,659	29,684
Assets, Percent change	2.10%		(0.10%)
Noninterest-bearing deposits	714	623	694	638
Noninterest-bearing deposits, Percent change	14.60%		8.80%
Interest checking	455	1,346	444	1,329
Interest checking, Percent change	(66.20%)		(66.60%)
Savings products	60	40	54	37
Savings products, Percent change	50.00%		45.90%
Time deposits
Time deposits, Percent change
Total deposits	1,229	2,009	1,192	2,004
Total deposits, Percent change	(38.80%)		(40.50%)
Total U.S. Bancorp shareholders' equity	6,102	5,667	6,033	5,698
Total U.S. Bancorp shareholders' equity, Percent change	7.70%		5.90%
Treasury and Corporate Support [Member]
Condensed Income Statement
Net interest income (taxable-equivalent basis)	569	593	1,676	1,629
Net interest income (taxable-equivalent basis), Percent change	(4.00%)		2.90%
Noninterest income	67	30	208	149
Noninterest income, Percent change			39.60%
Securities gains (losses), net	(3)	1	8	(18)
Securities gains (losses), net, Percent change
Total net revenue	633	624	1,892	1,760
Total net revenue, Percent change	1.40%		7.50%
Noninterest expense	240	256	563	796
Noninterest expense, Percent change	(6.30%)		(29.30%)
Other intangibles
Other intangibles, Percent change
Total noninterest expense	240	256	563	796
Total noninterest expense, Percent change	(6.30%)		(29.30%)
Income before provision and income taxes	393	368	1,329	964
Income before provision and income taxes, Percent change	6.80%		37.90%
Provision for credit losses	(2)		45	5
Provision for credit losses, Percent change
Income before income taxes	395	368	1,284	959
Income before income taxes, Percent change	7.30%		33.90%
Income taxes and taxable-equivalent adjustment	3	26	60	29
Income taxes and taxable-equivalent adjustment, Percent change	(88.50%)
Net income	392	342	1,224	930
Net income, Percent change	14.60%		31.60%
Net (income) loss attributable to noncontrolling interests	48	52	148	142
Net (income) loss attributable to noncontrolling interests, Percent change	(7.70%)		4.20%
Net income attributable to U.S. Bancorp	440	394	1,372	1,072
Net income attributable to U.S. Bancorp, Percent change	11.70%		28.00%
Average Balance Sheet
Commercial	215	215	203	203
Commercial, Percent change
Commercial real estate	101	142	107	123
Commercial real estate, Percent change	(28.90%)		(13.00%)
Residential mortgages	1	1	1	4
Residential mortgages, Percent change			(75.00%)
Credit card
Credit card, Percent change
Other retail
Other retail, Percent change
Total loans, excluding covered loans	317	358	311	330
Total loans, excluding covered loans, Percent change	(11.50%)		(5.80%)
Covered loans	2,937	4,382	3,272	4,953
Covered loans, Percent change	(33.00%)		(33.90%)
Total loans	3,254	4,740	3,583	5,283
Total loans, Percent change	(31.40%)		(32.20%)
Goodwill
Goodwill, Percent change
Other intangible assets	2	4	2	4
Other intangible assets, Percent change	(50.00%)		(50.00%)
Assets	95,965	101,154	97,370	100,867
Assets, Percent change	(5.10%)		(3.50%)
Noninterest-bearing deposits	655	494	432	481
Noninterest-bearing deposits, Percent change	32.60%		(10.20%)
Interest checking	1	1	1	1
Interest checking, Percent change
Savings products	80	139	85	136
Savings products, Percent change	(42.40%)		(37.50%)
Time deposits	542	340	842	479
Time deposits, Percent change	59.40%		75.80%
Total deposits	1,278	974	1,360	1,097
Total deposits, Percent change	31.20%		24.00%
Total U.S. Bancorp shareholders' equity	$ 11,848	$ 12,783	$ 11,874	$ 11,724
Total U.S. Bancorp shareholders' equity, Percent change	(7.30%)		1.30%

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Fair Values of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

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, 2013:

	Minimum			Maximum			Average
Residential Prime Non-Agency Mortgage-Backed Securities (a)
Estimated lifetime prepayment rates		6	%		20	%		13	%
Lifetime probability of default rates		–			7			4
Lifetime loss severity rates		25			65			43
Discount margin		2			6			4
Residential Non-Prime Non-Agency Mortgage-Backed Securities (b)
Estimated lifetime prepayment rates		2	%		10	%		6	%
Lifetime probability of default rates		4			11			7
Lifetime loss severity rates		15			70			54
Discount margin		1			6			3
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		8			8			8

(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, 2013:

	Minimum			Maximum			Average
Expected prepayment		10	%		22	%		12	%
Discount rate		10			13			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, 2013:

	Minimum			Maximum			Average
Expected loan close rate		32	%		100	%		76	%
Inherent MSR value (basis points per loan)		46			219			108

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, 2013
Available-for-sale securities
U.S. Treasury and agencies	$	463	$	1,058	$	–	$	–		$	1,521
Mortgage-backed securities
Residential
Agency		–		29,220		–		–			29,220
Non-agency
Prime (a)		–		–		500		–			500
Non-prime (b)		–		–		303		–			303
Commercial
Agency		–		169		–		–			169
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		–		25		–		–			25
Other		–		570		40		–			610
Obligations of state and political subdivisions		–		5,820		–		–			5,820
Obligations of foreign governments		–		6		–		–			6
Corporate debt securities		–		633		9		–			642
Perpetual preferred securities		–		209		–		–			209
Other investments		265		17		–		–			282
Total available-for-sale		728		37,727		852		–			39,307
Mortgage loans held for sale		–		3,844		–		–			3,844
Mortgage servicing rights		–		–		2,577		–			2,577
Derivative assets		–		875		670		(572	)		973
Other assets		85		922		–		–			1,007
Total	$	813	$	43,368	$	4,099	$	(572	)	$	47,708
Derivative liabilities	$	–	$	1,827	$	53	$	(1,358	)	$	522
Short-term borrowings (c)		231		533		–		–			764
Total	$	231	$	2,360	$	53	$	(1,358	)	$	1,286
December 31, 2012
Available-for-sale securities
U.S. Treasury and agencies	$	491	$	735	$	–	$	–		$	1,226
Mortgage-backed securities
Residential
Agency		–		29,495		–		–			29,495
Non-agency
Prime (a)		–		–		624		–			624
Non-prime (b)		–		–		355		–			355
Commercial
Agency		–		193		–		–			193
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		–		42		–		–			42
Other		–		577		15		–			592
Obligations of state and political subdivisions		–		6,455		–		–			6,455
Obligations of foreign governments		–		6		–		–			6
Corporate debt securities		–		722		9		–			731
Perpetual preferred securities		–		218		–		–			218
Other investments		187		15		–		–			202
Total available-for-sale		678		38,458		1,003		–			40,139
Mortgage loans held for sale		–		7,957		–		–			7,957
Mortgage servicing rights		–		–		1,700		–			1,700
Derivative assets		–		572		1,234		(418	)		1,388
Other assets		94		386		–		–			480
Total	$	772	$	47,373	$	3,937	$	(418	)	$	51,664
Derivative liabilities	$	–	$	2,128	$	55	$	(1,549	)	$	634
Short-term borrowings (c)		50		351		–		–			401
Total	$	50	$	2,479	$	55	$	(1,549	)	$	1,035

(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) Represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.

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
2013
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	547	$	(2	)	$	(4	)	$	–	$	–		$	(41	)	$	–		$	–		$	500	$	(4	)
Non-prime (b)		319		(3	)		(4	)		–		–			(9	)		–			–			303		(4	)
Asset-backed securities
Other		40		1			(2	)		3		–			(2	)		–			–			40		(2	)
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		915		(4	)(c)		(10	)(f)		3		–			(52	)		–			–			852		(10	)
Mortgage servicing rights		2,377		11	(d)		–			2		–			–			187	(g)		–			2,577		11	(d)
Net derivative assets and liabilities		423		182	(e)		–			–		(2	)		–			–			14			617		62	(h)
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	)(i)		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	(j)		–			1		(1	)		–			–			(713	)		1,490		(557	)(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 $(3) million included in securities gains (losses) and $(1) million included in interest income.

(d) Included in mortgage banking revenue.

(e) Approximately $89 million included in other noninterest income and $93 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 $(28) million included in other noninterest income and $90 million included in mortgage banking revenue.

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

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

(k) Approximately $7 million included in other noninterest income and $(564) 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
2013
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	624	$	(6	)	$	4		$	–	$	–		$	(122	)	$	–		$	–		$	500	$	4
Non-prime (b)		355		(11	)		13			–		(20	)		(34	)		–			–			303		14
Asset-backed securities
Other		15		2			(1	)		28		–			(4	)		–			–			40		(1	)
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		1,003		(15	)(c)		16	(f)		28		(20	)		(160	)		–			–			852		17
Mortgage servicing rights		1,700		196	(d)		–			7		–			–			674	(g)		–			2,577		196	(d)
Net derivative assets and liabilities		1,179		(34	)(e)		–			1		(4	)		–			–			(525	)		617		(565	)(h)
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	)(i)		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	(j)		–			1		(3	)		–			–			(1,786	)		1,490		(1,407	)(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 $(13) million included in securities gains (losses) and $(2) million included in interest income.

(d) Included in mortgage banking revenue.

(e) Approximately $(122) million included in other noninterest income and $88 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 $(301)million included in other noninterest income and $(264) million included in mortgage banking revenue.

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

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

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

Adjusted Carrying Values for Assets Measured at Fair Value on Nonrecurring Basis

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

	September 30, 2013								December 31, 2012
(Dollars in Millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Loans (a)	$	–	$	–	$	94	$	94	$	–	$	–	$	140	$	140
Other assets (b)		–		–		144		144		–		–		194		194

(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)	2013		2012		2013		2012
Loans (a)	$	22	$	12	$	55	$	51
Other assets (b)		14		42		73		129

(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, 2013							December 31, 2012
(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	$	3,844	$	3,693	$	151		$	7,957	$	7,588	$	369
Nonaccrual loans		10		15		(5	)		8		13		(5	)
Loans 90 days or more past due		1		1		–			2		3		(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, 2013										December 31, 2012
	Carrying Amount		Fair Value								Carrying Amount		Fair Value
(Dollars in Millions)			Level 1		Level 2		Level 3		Total				Level 1		Level 2		Level 3		Total
Financial Assets
Cash and due from banks	$	11,615	$	11,615	$	–	$	–	$	11,615	$	8,252	$	8,252	$	–	$	–	$	8,252
Federal funds sold and securities purchased under resale agreements		259		–		259		–		259		437		–		437		–		437
Investment securities held-to-maturity		36,904		2,912		33,611		109		36,632		34,389		2,984		31,845		123		34,952
Loans held for sale (a)		14		–		–		14		14		19		–		–		19		19
Loans (b)		227,027		–		–		228,087		228,087		218,765		–		–		220,354		220,354
Other financial instruments		2,149		–		1,166		1,000		2,166		7,367		–		1,228		6,157		7,385
Financial Liabilities
Deposits		261,716		–		261,792		–		261,792		249,183		–		249,594		–		249,594
Short-term borrowings (c)		25,364		–		25,307		–		25,307		25,901		–		25,917		–		25,917
Long-term debt		18,750		–		19,216		–		19,216		25,516		–		26,205		–		26,205

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

(b) Excludes loans measured at fair value on a nonrecurring basis.

(c) Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.

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Guarantees and Contingent Liabilities (Tables)

9 Months Ended

Sep. 30, 2013

Commitments And Contingencies Disclosure [Abstract]

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, 2013:

(Dollars in Millions)	Collateral Held		Carrying Amount		Maximum Potential Future Payments
Standby letters of credit	$	–	$	71	$	17,339
Third-party borrowing arrangements		–		–		17
Securities lending indemnifications		5,494		–		5,326
Asset sales		–		267		3,250	(a)
Merchant processing		840		69		86,584
Contingent consideration arrangements		–		14		17
Tender option bond program guarantee		4,762		–		4,711
Minimum revenue guarantees		–		12		12
Other		–		6		553

(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)	2013			2012			2013			2012
Balance at beginning of period	$	190		$	216		$	240		$	160
Net realized losses		(13	)		(32	)		(52	)		(88	)
Change in reserve		(1	)		36			(12	)		148
Balance at end of period	$	176		$	220		$	176		$	220

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Preferred Stock

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

Preferred Stock

Note 6 Preferred Stock

At September 30, 2013 and December 31, 2012, 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, 2013								December 31, 2012
(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
Series F		44,000		1,100		12		1,088		44,000		1,100		12		1,088
Series G		43,400		1,085		10		1,075		43,400		1,085		10		1,075
Series H		20,000		500		13		487		–		–		–		–
Total preferred stock (a)		159,910	$	4,936	$	180	$	4,756		159,910	$	4,936	$	167	$	4,769

(a) The par value of all shares issued and outstanding at September 30, 2013 and December 31, 2012, was $1.00 per share.

On May 2, 2013, the Company issued depositary shares representing an ownership interest in 20,000 shares of Series H Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the “Series H Preferred Stock”). The Series H Preferred Stock has 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 5.15 percent. The Series H Preferred Stock is redeemable at the Company’s option, in whole or in part, on or after July 15, 2018. The Series H Preferred stock is redeemable at the Company’s option, in whole, but not in part, prior to July 15, 2018 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 H Preferred Stock as Tier 1 capital for purposes of the capital adequacy guidelines of the Federal Reserve. In conjunction with the issuance of the Series H Preferred Stock, the Company redeemed at par value all shares of its Series D Non-Cumulative Perpetual Preferred Stock on June 3, 2013. The Company included an $8 million loss in its computation of earnings per diluted common share for the first nine months of 2013, which represents the stock issuance costs recorded in capital surplus upon the issuance of the Series D Non-Cumulative Perpetual Preferred Stock that were reclassified to retained earnings on the redemption date.

For further information on preferred stock, refer to Note 14 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

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Loans and Allowance for Credit Losses - Loans Modified as TDRs (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013 SecurityLoan	Sep. 30, 2012 SecurityLoan	Sep. 30, 2013 SecurityLoan	Sep. 30, 2012 SecurityLoan
Financing Receivable, Modifications [Line Items]
Number of Loans	10,584	29,834	33,909	63,784
Pre-Modification Outstanding Loan Balance	$ 559	$ 1,409	$ 1,672	$ 2,905
Post-Modification Outstanding Loan Balance	529	1,332	1,589	2,817
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	551	1,754	1,962	4,081
Pre-Modification Outstanding Loan Balance	62	54	150	215
Post-Modification Outstanding Loan Balance	60	58	140	195
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	48	63	147	245
Pre-Modification Outstanding Loan Balance	76	91	193	416
Post-Modification Outstanding Loan Balance	73	80	186	390
Residential Mortgages [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	338	2,717	1,575	3,788
Pre-Modification Outstanding Loan Balance	42	344	214	529
Post-Modification Outstanding Loan Balance	42	336	210	517
Credit Card [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	6,447	14,137	20,147	39,040
Pre-Modification Outstanding Loan Balance	39	52	122	189
Post-Modification Outstanding Loan Balance	38	67	122	203
Other Retail [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	847	6,231	3,519	8,028
Pre-Modification Outstanding Loan Balance	21	159	86	194
Post-Modification Outstanding Loan Balance	21	156	85	191
Total Loans, Excluding GNMA and Covered Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	8,231	24,902	27,350	55,182
Pre-Modification Outstanding Loan Balance	240	700	765	1,543
Post-Modification Outstanding Loan Balance	234	697	743	1,496
Loans Purchased from GNMA Mortgage Pools [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	2,315	4,859	6,450	8,436
Pre-Modification Outstanding Loan Balance	300	660	822	1,116
Post-Modification Outstanding Loan Balance	284	589	782	1,087
Covered Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	38	73	109	166
Pre-Modification Outstanding Loan Balance	19	49	85	246
Post-Modification Outstanding Loan Balance	$ 11	$ 46	$ 64	$ 234

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Netting Arrangements for Certain Financial Instruments - Additional Information (Detail) (USD $) In Billions, unless otherwise specified	Sep. 30, 2013
Derivatives, Fair Value [Line Items]
Notional amount of derivative	$ 105.3
Exchange Cleared [Member]
Derivatives, Fair Value [Line Items]
Notional amount of derivative	6.7
Exchange Traded [Member]
Derivatives, Fair Value [Line Items]
Notional amount of derivative	$ 3.3

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

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)	2013			2012			2013			2012
Net income attributable to U.S. Bancorp	$	1,468		$	1,474		$	4,380		$	4,227
Preferred dividends		(61	)		(64	)		(189	)		(174	)
Impact of preferred stock redemption (a)		–			–			(8	)		–
Earnings allocated to participating stock awards		(7	)		(6	)		(20	)		(19	)
Net income applicable to U.S. Bancorp common shareholders	$	1,400		$	1,404		$	4,163		$	4,034
Average common shares outstanding		1,832			1,886			1,844			1,892
Net effect of the exercise and assumed purchase of stock awards		11			11			10			9
Average diluted common shares outstanding		1,843			1,897			1,854			1,901
Earnings per common share	$	.76		$	.74		$	2.26		$	2.13
Diluted earnings per common share	$	.76		$	.74		$	2.25		$	2.12

(a) Represents stock issuance costs originally recorded in capital surplus upon the issuance of the Company’s Series D Non-Cumulative Perpetual Preferred Stock that were reclassified to retained earnings on the redemption date.

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Investment Securities - Investment Securities Available for Sale (Parenthetical) (Detail)	Sep. 30, 2013 CreditScore
Investments Debt And Equity Securities [Abstract]
Minimum weighted average credit score of prime securities	725
Maximum loan-to-value of prime securities	80.00%

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Fair Values of Assets and Liabilities - Estimated Fair Values of Financial Instruments (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013		Dec. 31, 2012		Sep. 30, 2012	Dec. 31, 2011
Financial Assets
Cash and due from banks	$ 11,615		$ 8,252		$ 9,382	$ 13,962
Investment securities held-to-maturity	36,904	[1]	34,389	[1]
Financial Liabilities
Deposits	261,716		249,183
Long-term debt	18,750		25,516
Carrying Amount [Member]
Financial Assets
Cash and due from banks	11,615		8,252
Federal funds sold and securities purchased under resale agreements	259		437
Investment securities held-to-maturity	36,904		34,389
Loans held for sale	14		19
Loans	227,027		218,765
Other financial instruments	2,149		7,367
Financial Liabilities
Deposits	261,716		249,183
Short-term borrowings	25,364		25,901
Long-term debt	18,750		25,516
Fair Value [Member]
Financial Assets
Cash and due from banks	11,615		8,252
Federal funds sold and securities purchased under resale agreements	259		437
Investment securities held-to-maturity	36,632		34,952
Loans held for sale	14		19
Loans	228,087		220,354
Other financial instruments	2,166		7,385
Financial Liabilities
Deposits	261,792		249,594
Short-term borrowings	25,307		25,917
Long-term debt	19,216		26,205
Fair Value [Member] | Level 1 [Member]
Financial Assets
Cash and due from banks	11,615		8,252
Federal funds sold and securities purchased under resale agreements
Investment securities held-to-maturity	2,912		2,984
Loans held for sale
Loans
Other financial instruments
Financial Liabilities
Deposits
Short-term borrowings
Long-term debt
Fair Value [Member] | Level 2 [Member]
Financial Assets
Cash and due from banks
Federal funds sold and securities purchased under resale agreements	259		437
Investment securities held-to-maturity	33,611		31,845
Loans held for sale
Loans
Other financial instruments	1,166		1,228
Financial Liabilities
Deposits	261,792		249,594
Short-term borrowings	25,307		25,917
Long-term debt	19,216		26,205
Fair Value [Member] | Level 3 [Member]
Financial Assets
Cash and due from banks
Federal funds sold and securities purchased under resale agreements
Investment securities held-to-maturity	109		123
Loans held for sale	14		19
Loans	228,087		220,354
Other financial instruments	1,000		6,157
Financial Liabilities
Deposits
Short-term borrowings
Long-term debt

[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.

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Employee Benefits

9 Months Ended

Sep. 30, 2013

Compensation And Retirement Disclosure [Abstract]

Employee Benefits

Note 9 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)	2013			2012			2013			2012			2013			2012			2013			2012
Service cost	$	42		$	33		$	1		$	2		$	126		$	97		$	3		$	4
Interest cost		43			42			1			1			128			126			3			5
Expected return on plan assets		(44	)		(48	)		–			(1	)		(132	)		(143	)		(1	)		(2	)
Prior service cost (credit) and transition obligation (asset) amortization		(1	)		(2	)		–			–			(4	)		(4	)		–			–
Actuarial loss (gain) amortization		66			41			(3	)		(1	)		198			121			(8	)		(5	)
Net periodic benefit cost	$	106		$	66		$	(1	)	$	1		$	316		$	197		$	(3	)	$	2

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Netting Arrangements for Certain Financial Instruments - Information on Company's Accounting Netting Adjustments and Items Not Offset in Consolidated Balance Sheet But Available for Offset in Event of Default (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Offsetting [Abstract]
Cash collateral netted against derivative assets	$ 75	$ 79
Derivative assets not subject to netting arrangements	183	260
Cash collateral netted against derivative liabilities	862	1,200
Derivative liabilities not subject to netting arrangements	$ 55	$ 5

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Accumulated Other Comprehensive Income (Loss) - Reconciliation of Transactions Affecting Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Balance at beginning of period	$ (1,288)	$ (830)	$ (923)	$ (1,200)
Changes in unrealized gains and losses, Unrealized Gains (Losses) on Securities Available-For-Sale	(237)	300	(1,032)	738
Changes in unrealized gains and losses, Unrealized Gains (Losses) on Derivative Hedges	(17)	(30)	33	(68)
Changes in unrealized gains and losses, Unrealized Gains (Losses) on Retirement Plans	38		37
Changes in unrealized gains and losses	(216)	270	(962)	670
Other-than-temporary impairment not recognized in earnings on securities available-for-sale	1	2	8	3
Foreign currency translation adjustment	13	26	(20)	34
Reclassification to earnings of realized gains and losses	99	69	270	260
Applicable income taxes	40	(140)	276	(370)
Balance at end of period	(1,351)	(603)	(1,351)	(603)
Foreign Currency Translation [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Balance at beginning of period	(60)	(44)	(40)	(49)
Changes in unrealized gains and losses, Unrealized Gains (Losses) on Securities Available-For-Sale
Other-than-temporary impairment not recognized in earnings on securities available-for-sale
Foreign currency translation adjustment	13	26	(20)	34
Reclassification to earnings of realized gains and losses
Applicable income taxes	(5)	(10)	8	(13)
Balance at end of period	(52)	(28)	(52)	(28)
Unrealized Gains (Losses) on Retirement Plans [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Balance at beginning of period	(1,184)	(977)	(1,265)	(1,022)
Changes in unrealized gains and losses, Unrealized Gains (Losses) on Retirement Plans	38		37
Other-than-temporary impairment not recognized in earnings on securities available-for-sale
Foreign currency translation adjustment
Reclassification to earnings of realized gains and losses	62	38	186	112
Applicable income taxes	(38)	(14)	(80)	(43)
Balance at end of period	(1,122)	(953)	(1,122)	(953)
Unrealized Gains (Losses) on Derivative Hedges [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Balance at beginning of period	(313)	(447)	(404)	(489)
Changes in unrealized gains and losses, Unrealized Gains (Losses) on Derivative Hedges	(17)	(30)	33	(68)
Other-than-temporary impairment not recognized in earnings on securities available-for-sale
Foreign currency translation adjustment
Reclassification to earnings of realized gains and losses	47	53	142	158
Applicable income taxes	(11)	(9)	(65)	(34)
Balance at end of period	(294)	(433)	(294)	(433)
Unrealized Gains (Losses) on Securities Transferred From Available For Sale to Held To Maturity [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Balance at beginning of period	84	134	107
Changes in unrealized gains and losses, Unrealized Gains (Losses) on Securities Available-For-Sale
Other-than-temporary impairment not recognized in earnings on securities available-for-sale
Transfer of securities from available-for-sale to held-to-maturity				224
Foreign currency translation adjustment
Reclassification to earnings of realized gains and losses	(13)	(21)	(50)	(28)
Applicable income taxes	5	8	19	(75)
Balance at end of period	76	121	76	121
Unrealized Gains (Losses) on Securities Available-For-Sale [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Balance at beginning of period	185	504	679	360
Changes in unrealized gains and losses, Unrealized Gains (Losses) on Securities Available-For-Sale	(237)	300	(1,032)	738
Other-than-temporary impairment not recognized in earnings on securities available-for-sale	1	2	8	3
Transfer of securities from available-for-sale to held-to-maturity				(224)
Foreign currency translation adjustment
Reclassification to earnings of realized gains and losses	3	(1)	(8)	18
Applicable income taxes	89	(115)	394	(205)
Balance at end of period	$ 41	$ 690	$ 41	$ 690

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Mortgage Servicing Rights

9 Months Ended

Sep. 30, 2013

Text Block [Abstract]

Mortgage Servicing Rights

Note 5 Mortgage Servicing Rights

The Company serviced $226.7 billion of residential mortgage loans for others at September 30, 2013, and $215.6 billion at December 31, 2012. 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 $108 million and $10 million for the three months ended September 30, 2013 and 2012, respectively, and net gains of $163 million and $72 million for the nine months ended September 30, 2013 and 2012, respectively. Loan servicing fees, not including valuation changes, included in mortgage banking revenue, were $192 million and $181 million for the three months ended September 30, 2013 and 2012, respectively, and $566 million and $526 million for the nine months ended September 30, 2013 and 2012, 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)	2013			2012			2013			2012
Balance at beginning of period	$	2,377		$	1,594		$	1,700		$	1,519
Rights purchased		2			10			7			39
Rights capitalized		187			224			674			700
Changes in fair value of MSRs
Due to fluctuations in market interest rates (a)		71			(123	)		503			(298	)
Due to revised assumptions or models (b)		42			(2	)		33			(19	)
Other changes in fair value (c)		(102	)		(150	)		(340	)		(388	)
Balance at end of period	$	2,577		$	1,553		$	2,577		$	1,553

(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, 2013																		December 31, 2012
(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	$	(494	)	$	(223	)	$	(107	)	$	92		$	173		$	324		$	(370	)	$	(217	)	$	(118	)	$	126		$	249		$	480
Derivative instrument hedges		427			211			102			(93	)		(174	)		(317	)		473			249			124			(121	)		(243	)		(486	)
Net sensitivity	$	(67	)	$	(12	)	$	(5	)	$	(1	)	$	(1	)	$	7		$	103		$	32		$	6		$	5		$	6		$	(6	)

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, 2013												December 31, 2012
(Dollars in Millions)	MRBP			Government			Conventional (b)			Total			MRBP			Government			Conventional (b)			Total
Servicing portfolio	$	15,088		$	41,192		$	170,447		$	226,727		$	14,143		$	39,048		$	162,446		$	215,637
Fair value	$	171		$	474		$	1,932		$	2,577		$	154		$	314		$	1,232		$	1,700
Value (bps) (a)		113			115			113			114			109			80			76			79
Weighted-average servicing fees (bps)		39			32			29			30			40			33			30			31
Multiple (value/servicing fees)		2.90			3.59			3.90			3.80			2.73			2.42			2.53			2.55
Weighted-average note rate		4.76	%		4.26	%		4.19	%		4.24	%		5.13	%		4.57	%		4.48	%		4.54	%
Weighted-average age (in years)		4.0			2.5			2.4			2.5			4.2			2.4			2.5			2.6
Weighted-average expected prepayment (constant prepayment rate)		13.1	%		12.6	%		12.2	%		12.3	%		13.2	%		21.2	%		20.4	%		20.1	%
Weighted-average expected life (in years)		6.3			6.5			6.8			6.7			6.1			4.2			4.1			4.2
Weighted-average discount rate		12.0	%		11.2	%		9.8	%		10.2	%		12.1	%		11.4	%		10.0	%		10.4	%

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

(b) Represents loans sold primarily to GSEs.

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Consolidated Statement of Cash Flows (Unaudited) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Operating Activities
Net income attributable to U.S. Bancorp	$ 4,380	$ 4,227
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses	1,063	1,439
Depreciation and amortization of premises and equipment	222	212
Amortization of intangibles	167	208
Provision for deferred income taxes	(38)	29
(Gain) loss on sale of loans held for sale	(864)	(1,982)
(Gain) loss on sale of securities and other assets	(42)	(198)
Loans originated for sale in the secondary market, net of repayments	(49,411)	(60,331)
Proceeds from sales of loans held for sale	53,845	59,052
Other, net	(665)	1,219
Net cash provided by operating activities	8,657	3,875
Investing Activities
Proceeds from sales of available-for-sale investment securities	766	1,753
Proceeds from maturities of held-to-maturity investment securities	6,854	4,005
Proceeds from maturities of available-for-sale investment securities	8,395	11,664
Purchases of held-to-maturity investment securities	(9,439)	(8,003)
Purchases of available-for-sale investment securities	(9,381)	(12,065)
Net increase in loans outstanding	(8,495)	(9,518)
Proceeds from sales of loans	620	1,614
Purchases of loans	(1,883)	(2,139)
Acquisitions, net of cash acquired		94
Other, net	(100)	(668)
Net cash used in investing activities	(12,663)	(13,263)
Financing Activities
Net increase in deposits	12,533	13,099
Net decrease in short-term borrowings	(174)	(2,616)
Proceeds from issuance of long-term debt	198	4,553
Principal payments or redemption of long-term debt	(2,380)	(10,271)
Proceeds from issuance of preferred stock	487	2,163
Proceeds from issuance of common stock	331	342
Redemption of preferred stock	(500)
Repurchase of common stock	(1,779)	(1,343)
Cash dividends paid on preferred stock	(193)	(139)
Cash dividends paid on common stock	(1,154)	(980)
Net cash provided by financing activities	7,369	4,808
Change in cash and due from banks	3,363	(4,580)
Cash and due from banks at beginning of period	8,252	13,962
Cash and due from banks at end of period	$ 11,615	$ 9,382

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Netting Arrangements for Certain Financial Instruments - Information on Company's Accounting Netting Adjustments and Items Not Offset in Consolidated Balance Sheet But Available for Offset in Event of Default (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Offsetting [Abstract]
Derivative assets Gross Recognized Assets	$ 1,362	$ 1,546
Reverse repurchase agreements Gross Recognized Assets	150	363
Securities borrowed Gross Recognized Assets	527	368
Total Gross Recognized Assets	2,039	2,277
Derivative assets Gross amounts assets offset in consolidated balance sheet	(572)	(418)
Total Gross amounts assets offset in consolidated balance sheet	(572)	(418)
Derivative assets Net Amounts Presented in the Consolidated Balance Sheet	790	1,128
Reverse repurchase agreements Net Amounts Presented in the Consolidated Balance Sheet	150	363
Securities borrowed Net Amounts Presented in the Consolidated Balance Sheet	527	368
Total Net Amounts Presented in the Consolidated Balance Sheet	1,467	1,859
Derivative assets Gross Amounts Not Offset Consolidated Balance Financial Instruments	(32)	(148)
Reverse repurchase agreements Gross financial instrument asset amounts not offset in consolidated balance sheet	(35)	(44)
Securities borrowed Gross financial instrument asset amounts not offset in consolidated balance sheet	(1)
Total Gross financial instrument asset amounts not offset in consolidated balance sheet	(68)	(192)
Reverse repurchase agreements Gross collateral received amounts not offset in consolidated balance sheet	(115)	(319)
Securities borrowed Gross collateral received amounts not offset in consolidated balance sheet	(510)	(356)
Total Gross collateral received amounts not offset in consolidated balance sheet	(625)	(675)
Derivative assets Net Amount	758	980
Reverse repurchase agreements Net Amount
Securities borrowed Net Amount	16	12
Total net amount assets	774	992
Derivative liabilities Gross recognized liabilities	1,825	2,178
Repurchase agreements Gross recognized liabilities	1,940	3,389
Securities loaned Gross recognized liabilities	134
Total Gross recognized liabilities	3,899	5,567
Derivative liabilities Gross amounts liabilities offset in consolidated balance sheet	(1,358)	(1,549)
Total Gross amounts liabilities offset in consolidated balance sheet	(1,358)	(1,549)
Derivative liabilities Net amounts liabilities presented in consolidated balance sheet	467	629
Repurchase agreements Net amounts liabilities presented in consolidated balance sheet	1,940	3,389
Securities loaned Net amounts liabilities presented in consolidated balance sheet	134
Total Net amounts liabilities presented in consolidated balance sheet	2,541	4,018
Derivative liabilities Gross financial instrument liability amounts not offset in consolidated balance sheet	(32)	(148)
Repurchase agreements Gross financial instrument liability amounts not offset in consolidated balance sheet	(35)	(44)
Securities loaned Gross financial instruments not offset in consolidated balance sheet	(1)
Total Gross financial instrument liability amounts not offset in consolidated balance sheet	(68)	(192)
Repurchase agreements Gross collateral pledged amounts not offset in consolidated balance sheet	(1,905)	(3,345)
Securities loaned Gross collateral pledged amounts not offset in consolidated balance sheet	(132)
Total Gross collateral pledged amounts not offset in consolidated balance sheet	(2,037)	(3,345)
Derivative liabilities Net Amount	435	481
Repurchase agreements net amount
Securities loaned net Amount	1
Total Net Amount Liabilities	$ 436	$ 481

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Loans and Allowance for Credit Losses - Additional Information (Detail) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans pledged at the Federal Home Loan Bank ("FHLB")	$ 75,300,000,000	$ 75,300,000,000	$ 74,100,000,000
Loans pledged at the Federal Reserve Bank	51,600,000,000	51,600,000,000	48,600,000,000
Unearned interest and deferred fees and costs on loans	539,000,000	539,000,000	753,000,000
Period for capturing full economic cycle in evaluation		12 years
Impairment loan threshold for allowance in which loans are individually analyzed	5,000,000	5,000,000
Maximum restructuring period under credit card loan financial difficulty modifications		60 months
Maximum restructuring period under credit card loan temporary financial hardship modifications		Up to 12 months
Outstanding balance of loans where trial period was unsuccessful and no longer eligible for a permanent modification	18,000,000	59,000,000
Purchased impaired loans included in covered loans classified as nonperforming assets	9,000,000	9,000,000	82,000,000
Residential Mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans in trial period	142	142
Outstanding balance of loans in trial period	18,000,000	18,000,000
Estimated post-modification balance of loans in trial period	16,000,000	16,000,000
Home Equity and Second Mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans in trial period	5	5
Outstanding balance of loans in trial period	1,000,000	1,000,000
Estimated post-modification balance of loans in trial period	1,000,000	1,000,000
Loans Purchased from GNMA Mortgage Pools [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans in trial period	1,905	1,905
Outstanding balance of loans in trial period	247,000,000	247,000,000
Estimated post-modification balance of loans in trial period	$ 231,000,000	$ 231,000,000
Government National Mortgage Association [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of residential mortgage loans, home equity and second mortgage loans, and GNMA loans where trial period arrangement was unsuccessful	135	441

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Investment Securities - Summary of Ranges Used in Valuation of Non-Agency Mortgage-Backed Securities Other Than Temporarily Impaired (Detail)	Sep. 30, 2013	Dec. 31, 2012
Prime Minimum [Member]
Principal Valuation Assumptions Debt Securities Other Than Temporarily Impaired [Line Items]
Estimated lifetime prepayment rates	12.00%	6.00%
Lifetime probability of default rates	3.00%	3.00%
Lifetime loss severity rates	25.00%	40.00%
Prime Maximum [Member]
Principal Valuation Assumptions Debt Securities Other Than Temporarily Impaired [Line Items]
Estimated lifetime prepayment rates	18.00%	22.00%
Lifetime probability of default rates	5.00%	6.00%
Lifetime loss severity rates	50.00%	50.00%
Prime Average [Member]
Principal Valuation Assumptions Debt Securities Other Than Temporarily Impaired [Line Items]
Estimated lifetime prepayment rates	13.00%	14.00%
Lifetime probability of default rates	4.00%	4.00%
Lifetime loss severity rates	48.00%	47.00%
Non-Prime Minimum [Member]
Principal Valuation Assumptions Debt Securities Other Than Temporarily Impaired [Line Items]
Estimated lifetime prepayment rates	4.00%	3.00%
Lifetime probability of default rates	5.00%	3.00%
Lifetime loss severity rates	15.00%	45.00%
Non-Prime Maximum [Member]
Principal Valuation Assumptions Debt Securities Other Than Temporarily Impaired [Line Items]
Estimated lifetime prepayment rates	10.00%	10.00%
Lifetime probability of default rates	10.00%	10.00%
Lifetime loss severity rates	60.00%	65.00%
Non-Prime Average [Member]
Principal Valuation Assumptions Debt Securities Other Than Temporarily Impaired [Line Items]
Estimated lifetime prepayment rates	6.00%	6.00%
Lifetime probability of default rates	7.00%	7.00%
Lifetime loss severity rates	51.00%	56.00%

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Guarantees and Contingent Liabilities - Summary of Other Guarantees and Contingent Liabilities (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013
Standby Letters of Credit [Member]
Guarantor Obligations [Line Items]
Collateral Held
Carrying Amount	71
Maximum Potential Future Payments	17,339
Third-Party Borrowing Arrangements [Member]
Guarantor Obligations [Line Items]
Collateral Held
Carrying Amount
Maximum Potential Future Payments	17
Securities Lending Indemnifications [Member]
Guarantor Obligations [Line Items]
Collateral Held	5,494
Carrying Amount
Maximum Potential Future Payments	5,326
Asset Sales [Member]
Guarantor Obligations [Line Items]
Collateral Held
Carrying Amount	267
Maximum Potential Future Payments	3,250
Merchant Processing [Member]
Guarantor Obligations [Line Items]
Collateral Held	840
Carrying Amount	69
Maximum Potential Future Payments	86,584
Contingent Consideration Arrangements [Member]
Guarantor Obligations [Line Items]
Collateral Held
Carrying Amount	14
Maximum Potential Future Payments	17
Tender Option Bond Program Guarantee [Member]
Guarantor Obligations [Line Items]
Collateral Held	4,762
Carrying Amount
Maximum Potential Future Payments	4,711
Minimum Revenue Guarantees [Member]
Guarantor Obligations [Line Items]
Collateral Held
Carrying Amount	12
Maximum Potential Future Payments	12
Other [Member]
Guarantor Obligations [Line Items]
Collateral Held
Carrying Amount	6
Maximum Potential Future Payments	$ 553

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Income Taxes - Reconciliation of Expected Income Tax Expense at Federal Statutory Rate of 35 Percent to Company's Applicable Income Tax Expense (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Tax credits recognized as reduction to related investment asset	$ 209	$ 209

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Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

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, 2013
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	500	$	21		2.34	$	–	$	–		–
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		272		17		9.02		4,288		548		2.71
Receive fixed/pay floating swaps		7,000		31		1.10		–		–		–
Net investment hedges
Foreign exchange forward contracts		–		–		–		925		11		.05
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		4,418		88		.09		34		8		.08
Sell		41		2		.20		6,203		122		.09
Options
Purchased		2,325		–		.07		–		–		–
Written		1,800		34		.09		9		–		.02
Receive fixed/pay floating swaps		3,220		83		10.23		–		–		–
Foreign exchange forward contracts		1,980		4		.02		2,695		6		.02
Equity contracts		8		–		1.72		66		–		1.89
Credit contracts		1,177		4		4.12		2,495		11		4.91
Total	$	22,741	$	284			$	16,715	$	706
December 31, 2012
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	500	$	30		3.09	$	–	$	–		–
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		32		–		9.88		4,528		718		3.79
Receive fixed/pay floating swaps		7,000		45		1.84		–		–		–
Net investment hedges
Foreign exchange forward contracts		758		1		.07		–		–		–
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		11,164		138		.07		2,921		13		.04
Sell		6,299		18		.11		12,223		57		.09
Options
Purchased		2,435		–		.07		–		–		–
Written		4,991		123		.12		4		–		.06
Receive fixed/pay floating swaps		350		1		10.21		3,775		14		10.21
Foreign exchange forward contracts		618		4		.03		1,383		6		.01
Equity contracts		31		–		2.80		27		–		2.46
Credit contracts		1,056		3		4.56		1,947		10		3.11
Total	$	35,234	$	363			$	26,808	$	818

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, 2013
Interest rate contracts
Receive fixed/pay floating swaps	$	13,562	$	736		5.30	$	5,138	$	70		4.98
Pay fixed/receive floating swaps		4,700		76		5.15		14,089		691		5.26
Options
Purchased		3,681		28		4.46		107		1		1.12
Written		107		1		1.12		3,681		28		4.46
Foreign exchange rate contracts
Forwards, spots and swaps		10,392		411		.71		9,688		375		.68
Options
Purchased		367		9		.64		–		–		–
Written		–		–		–		367		9		.64
Total	$	32,809	$	1,261			$	33,070	$	1,174
December 31, 2012
Interest rate contracts
Receive fixed/pay floating swaps	$	16,671	$	1,085		4.78	$	1,090	$	15		9.30
Pay fixed/receive floating swaps		928		14		11.12		16,923		1,042		4.74
Options
Purchased		3,046		16		5.24		28		–		4.42
Written		286		–		.75		2,788		16		5.68
Foreign exchange rate contracts
Forwards, spots and swaps		12,186		322		.43		11,861		286		.44
Options
Purchased		323		6		.55		–		–		–
Written		–		–		–		323		6		.55
Total	$	33,440	$	1,443			$	33,013	$	1,365

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)	2013			2012			2013			2012			2013			2012			2013			2012
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts (a)	$	(11	)	$	(19	)	$	(30	)	$	(33	)	$	22		$	(42	)	$	(88	)	$	(98	)
Net investment hedges
Foreign exchange forward contracts		(29	)		–			–			–			(23	)		(6	)		–			–
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, 2013 and 2012.

(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)			2013			2012			2013			2012
Asset and Liability Management Positions
Fair value hedges (a)
Interest rate contracts		Other noninterest income	$	–		$	2		$	(7	)	$	5
Foreign exchange cross-currency swaps		Other noninterest income		–			–			–			42
Other economic hedges
Interest rate contracts
Futures and forwards		Mortgage banking revenue		33			(44	)		569			67
Purchased and written options		Mortgage banking revenue		54			290			200			689
Receive fixed/pay floating swaps		Mortgage banking revenue		(5	)		48			(264	)		186
Foreign exchange forward contracts		Commercial products revenue		(16	)		(25	)		18			(62	)
Equity contracts		Compensation expense		–			1			1			2
Credit contracts		Other noninterest income/expense		2			(2	)		1			(8	)
Customer-Related Positions
Interest rate contracts
Receive fixed/pay floating swaps		Other noninterest income		13			(16	)		(288	)		(10	)
Pay fixed/receive floating swaps		Other noninterest income		(10	)		19			298			15
Foreign exchange rate contracts
Forwards, spots and swaps		Commercial products revenue		15			13			36			36

(a) Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were both zero for the three months ended September 30, 2013, and $(2) million and zero for the three months ended September 30, 2012, respectively. Gains (Losses) on items hedged by interest rate contracts and foreign exchange forward contracts, included in noninterest income (expense), were $7 million and zero for the nine months ended September 30, 2013, respectively, and $(5) million and $(44) million for the nine months ended September 30, 2012, respectively. The ineffective portion was immaterial for the three and nine months ended September 30, 2013 and 2012.

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Fair Values of Assets and Liabilities - 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, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Loans	$ 22	$ 12	$ 55	$ 51
Other assets	$ 14	$ 42	$ 73	$ 129

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Fair Values of Assets and Liabilities - 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
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Residential Non-Agency Prime [Member] | Residential [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning of Period Balance	$ 547	$ 713	$ 624	$ 803
Net Gains (Losses) Included in Net Income	(2)	(4)	(6)	(5)
Net Gains (Losses) Included in Other Comprehensive Income (Loss)	(4)	23	4	60
Purchases
Sales		(61)		(109)
Principal Payments	(41)	(40)	(122)	(118)
Issuances
Settlements
End of Period Balance	500	631	500	631
Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period	(4)	26	4	58
Residential Non-Agency Non-Prime [Member] | Residential [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning of Period Balance	319	796	355	802
Net Gains (Losses) Included in Net Income	(3)	(8)	(11)	(18)
Net Gains (Losses) Included in Other Comprehensive Income (Loss)	(4)	132	13	197
Purchases
Sales		(562)	(20)	(562)
Principal Payments	(9)	(18)	(34)	(79)
Issuances
Settlements
End of Period Balance	303	340	303	340
Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period	(4)	23	14	52
Asset Backed Securities Other [Member] | Asset-Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning of Period Balance	40	112	15	117
Net Gains (Losses) Included in Net Income	1	1	2	7
Net Gains (Losses) Included in Other Comprehensive Income (Loss)	(2)	(4)	(1)
Purchases	3	3	28	3
Sales		(93)		(93)
Principal Payments	(2)	(3)	(4)	(18)
Issuances
Settlements
End of Period Balance	40	16	40	16
Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period	(2)	2	(1)	2
Corporate debt securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning of Period Balance	9	9	9	9
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	9	9	9	9
Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period
Available-for-Sale Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning of Period Balance	915	1,769	1,003	1,893
Net Gains (Losses) Included in Net Income	(4)	(9)	(15)	(3)
Net Gains (Losses) Included in Other Comprehensive Income (Loss)	(10)	146	16	249
Purchases	3	3	28	3
Sales		(851)	(20)	(906)
Principal Payments	(52)	(62)	(160)	(240)
Issuances
Settlements
End of Period Balance	852	996	852	996
Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period	(10)	51	17	112
Mortgage servicing rights [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning of Period Balance	2,377	1,594	1,700	1,519
Net Gains (Losses) Included in Net Income	11	(275)	196	(705)
Net Gains (Losses) Included in Other Comprehensive Income (Loss)
Purchases	2	10	7	39
Sales
Principal Payments
Issuances	187	224	674	700
Settlements
End of Period Balance	2,577	1,553	2,577	1,553
Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period	11	(275)	196	(705)
Commercial Non-Agency Mortgage-Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning of Period Balance		37		42
Net Gains (Losses) Included in Net Income				1
Net Gains (Losses) Included in Other Comprehensive Income (Loss)		2
Sales		(39)		(39)
Principal Payments				(4)
Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period
Collateralized Loan Obligations [Member] | Asset-Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning of Period Balance		102		120
Net Gains (Losses) Included in Net Income		2		12
Net Gains (Losses) Included in Other Comprehensive Income (Loss)		(7)		(8)
Sales		(96)		(103)
Principal Payments		(1)		(21)
Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period
Derivative [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning of Period Balance	423	1,360	1,179	1,228
Net Gains (Losses) Included in Net Income	182	843	(34)	2,050
Net Gains (Losses) Included in Other Comprehensive Income (Loss)
Purchases		1	1	1
Sales	(2)	(1)	(4)	(3)
Principal Payments
Issuances
Settlements	14	(713)	(525)	(1,786)
End of Period Balance	617	1,490	617	1,490
Net Change in Unrealized Gains (Losses) Relating to Assets Still Held at End of Period	$ 62	$ (557)	$ (565)	$ (1,407)

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Income Taxes - Reconciliation of Expected Income Tax Expense at Federal Statutory Rate of 35 Percent to Company's Applicable Income Tax Expense (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Tax Disclosure [Abstract]
Tax at statutory rate	$ 690	$ 709	$ 2,061	$ 2,030
State income tax, at statutory rates, net of federal tax benefit	62	53	102	157
Tax effect of
Tax credits, net of related expenses	(176)	(120)	(394)	(322)
Tax-exempt income	(52)	(55)	(159)	(165)
Noncontrolling interests	13	15	42	39
Other items	5	(9)	(23)	(55)
Total income tax provision	$ 542	$ 593	$ 1,629	$ 1,684

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Derivative Instruments - Summary of Gains (Losses) Recognized in Earnings for Fair Value Hedges, Other Economic Hedges and Customer-Related Positions (Parenthetical) (Detail) (Asset and Liability Management Positions [Member], Fair Value Hedges [Member], USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain losses on items hedged by fair value hedges	$ 0	$ (2)	$ 7	$ (5)
Foreign Exchange Cross-Currency Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain losses on items hedged by fair value hedges	$ 0	$ 0	$ 0	$ (44)

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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, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Variable Interest Entity [Line Items]
Realized federal and state income tax credits on investments	$ 441,000,000	$ 227,000,000	$ 981,000,000	$ 581,000,000
Tax advantaged investment costs included in tax expense	132,000,000	123,000,000	512,000,000	316,000,000
Tax advantaged investment costs recognized in income statement	292,000,000	263,000,000	931,000,000	677,000,000
Decrease in other asset as a result of deconsolidation of VIE'S	4,600,000,000
Decrease in long-term debt as a result of deconsolidation of VIE'S	4,600,000,000
Company's investment in unconsolidated VIEs	1,000,000,000		1,000,000,000
Aggregate amount of investments in unconsolidated VIEs	2,700,000,000		2,700,000,000		1,900,000,000
Unfunded capital commitments related to unconsolidated VIEs	1,900,000,000		1,900,000,000		1,300,000,000
Company's maximum exposure to unconsolidated VIEs, including any tax implications	7,200,000,000		7,200,000,000		5,200,000,000
Minimum [Member]
Variable Interest Entity [Line Items]
Aggregate amount of investments in unconsolidated VIEs	1,000,000		1,000,000		1,000,000
Maximum [Member]
Variable Interest Entity [Line Items]
Aggregate amount of investments in unconsolidated VIEs	40,000,000		40,000,000		58,000,000
Community Development and Tax Advantaged Investments [Member]
Variable Interest Entity [Line Items]
Assets related to consolidated VIEs	1,800,000,000		1,800,000,000		7,100,000,000
Liabilities related to consolidated VIEs	434,000,000		434,000,000		5,200,000,000
Aggregate amount of investments in unconsolidated VIEs	2,600,000,000		2,600,000,000		1,800,000,000
Company's maximum exposure previously recorded tax credits	4,500,000,000		4,500,000,000		3,300,000,000
Conduit [Member]
Variable Interest Entity [Line Items]
Assets related to consolidated VIEs	134,000,000		134,000,000		144,000,000
Tender Option Bond Program [Member]
Variable Interest Entity [Line Items]
Assets related to consolidated VIEs	4,800,000,000		4,800,000,000		5,300,000,000
Liabilities related to consolidated VIEs	$ 4,700,000,000		$ 4,700,000,000		$ 5,000,000,000

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Loans and Allowance for Credit Losses - Summary of Loans by Portfolio Type and Company's Internal Credit Quality Rating (Parenthetical) (Detail) (Government National Mortgage Association [Member], Trouble Debt Restructure [Member], USD $) In Billions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Government National Mortgage Association [Member] | Trouble Debt Restructure [Member]
Financing Receivable, Recorded Investment [Line Items]
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	$ 1.9	$ 2.4
GNMA loans 90 days or more past due whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs, were classified with a pass rating	$ 3.5	$ 3.2

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Derivative Instruments - Additional Information (Detail) (USD $)			3 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 2013 Scenario, Forecast [Member]	Sep. 30, 2014 Scenario, Forecast [Member]
Derivative [Line Items]
Realized and unrealized losses on derivatives classified as cash flow hedges recorded in other comprehensive income (loss)	$ 294,000,000	$ 404,000,000
Estimated loss to be reclassified from other comprehensive income (loss) into earnings			30,000,000	116,000,000
Carrying amount of non-derivative debt instruments designated as net investment hedges	0	0
Fair value of derivatives under collateral agreements in a net liability position	1,100,000,000
Collateral posted by company netted against net liability position	862,000,000
Forward commitments to sell mortgage loans	6,200,000,000
Hedged mortgage loans held for sale	3,100,000,000
Unfunded mortgage loan commitments	$ 4,200,000,000

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Netting Arrangements for Certain Financial Instruments

9 Months Ended

Sep. 30, 2013

Text Block [Abstract]

Netting Arrangements for Certain Financial Instruments

Note 12 Netting Arrangements for Certain Financial Instruments

The majority of the Company’s derivative portfolio consists of bilateral over-the-counter trades. However, due to legislative changes effective during the first nine months of 2013, certain interest rate swaps and credit contracts need to be centrally cleared through clearinghouses. In addition, a small portion of the Company’s derivative positions are exchange-traded. These are predominately U.S. Treasury futures or options on U.S. Treasury futures. Of the Company’s $105.3 billion of total notional amount of derivative positions at September 30, 2013, $6.7 billion related to those centrally cleared through clearinghouses and $3.3 billion related to those that were exchange-traded. Irrespective of how derivatives are traded, the Company’s derivative contracts include offsetting rights (referred to as netting arrangements), and depending on expected volume, credit risk, and counterparty preference, collateral maintenance may be required. For all derivatives, fair value is determined daily and, depending on the collateral maintenance requirements, the Company and a counterparty may receive or deliver collateral, based upon the net fair value of all derivative positions between the Company and the counterparty. Collateral is typically cash, but securities may be allowed under collateral arrangements with certain counterparties. Receivables and payables related to cash collateral are included in other assets and other liabilities on the Consolidated Balance Sheet, along with the related derivative asset and liability fair values. Any securities pledged to counterparties as collateral remain on the Consolidated Balance Sheet. Securities received from counterparties as collateral are not recognized on the Consolidated Balance Sheet, unless the counterparty defaults. Securities used as collateral can be sold, re-pledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party. Refer to Note 11 for further discussion of the Company’s derivatives, including collateral arrangements.

As part of the Company’s treasury and broker-dealer operations, the Company executes transactions that are treated as securities sold under agreements to repurchase or securities purchased under agreements to resell, both of which are accounted for as collateralized financings. Securities sold under agreements to repurchase include repurchase agreements and securities loaned transactions. Securities purchased under agreements to resell include reverse repurchase agreements and securities borrowed transactions. For securities sold under agreements to repurchase, the Company records a liability for the cash received, which is included in short-term borrowings on the Consolidated Balance Sheet. For securities purchased under agreements to resell, the Company records a receivable for the cash paid, which is included in other assets on the Consolidated Balance Sheet.

Securities transferred to counterparties under repurchase agreements and securities loaned transactions continue to be recognized on the Consolidated Balance Sheet, are measured at fair value, and are included in investment securities or other assets. Securities received from counterparties under reverse repurchase agreements and securities borrowed transactions are not recognized on the Consolidated Balance Sheet unless the counterparty defaults. Under all transactions, the fair values of the securities are determined daily, and additional cash is obtained or refunded to counterparties where appropriate. The securities transferred under repurchase and reverse repurchase transactions typically are U.S. Treasury securities or agency mortgage-backed securities. The securities loaned or borrowed are typically high-grade corporate bonds traded by the Company’s broker-dealer. The securities transferred can be sold, repledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party.

The Company executes its derivative, repurchase/reverse repurchase and securities loaned/borrowed transactions under the respective industry standard agreements. These agreements include master netting arrangements that allow for multiple contracts executed with the same counterparty to be viewed as a single arrangement. This allows for net settlement of a single amount on a daily basis. In the event of default, the master netting arrangement provides for close-out netting, which allows all positions with the defaulting counterparty to be terminated and net settled with a single payment amount.

The Company has elected to offset the assets and liabilities under netting arrangements for the balance sheet presentation of the majority of its derivative counterparties, excluding centrally cleared derivative contracts due to current uncertainty about the legal enforceability of netting arrangements with the clearinghouses. The netting occurs at the counterparty level, and includes all assets and liabilities related to the derivative contracts, including those associated with cash collateral received or pledged. The Company has not elected to offset the assets and liabilities under netting arrangements for the balance sheet presentation of repurchase/reverse repurchase and securities loaned/borrowed transactions.

The following tables provide information on the Company’s netting adjustments, and items not offset on the Consolidated Balance Sheet but available for offset in the event of default:

	Gross Recognized Assets		Gross Amounts Offset on the Consolidated Balance Sheet (a)			Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet						Net Amount
(Dollars in Millions)								Financial Instruments (b)			Collateral Received (c)
September 30, 2013
Derivative assets (d)	$	1,362	$	(572	)	$	790	$	(32	)	$	–		$	758
Reverse repurchase agreements		150		–			150		(35	)		(115	)		–
Securities borrowed		527		–			527		(1	)		(510	)		16
Total	$	2,039	$	(572	)	$	1,467	$	(68	)	$	(625	)	$	774
December 31, 2012
Derivative assets (d)	$	1,546	$	(418	)	$	1,128	$	(148	)	$	–		$	980
Reverse repurchase agreements		363		–			363		(44	)		(319	)		–
Securities borrowed		368		–			368		–			(356	)		12
Total	$	2,277	$	(418	)	$	1,859	$	(192	)	$	(675	)	$	992

(a) Includes $75 million and $79 million of cash collateral related payables that were netted against derivative assets at September 30, 2013 and December 31, 2012, respectively.

(b) For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any repurchase agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in the event of counterparty default.

(c) Includes the fair value of securities received by the Company from the counterparty. These securities are not included on the Consolidated Balance Sheet unless the counterparty defaults.

(d) Excludes $183 million and $260 million of derivative assets centrally cleared or otherwise not subject to netting arrangements at September 30, 2013 and December 31, 2012, respectively.

	Gross Recognized Liabilities		Gross Amounts Offset on the Consolidated Balance Sheet (a)			Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet						Net Amount
(Dollars in Millions)								Financial Instruments (b)			Collateral Pledged (c)
September 30, 2013
Derivative liabilities (d)	$	1,825	$	(1,358	)	$	467	$	(32	)	$	–		$	435
Repurchase agreements		1,940		–			1,940		(35	)		(1,905	)		–
Securities loaned		134		–			134		(1	)		(132	)		1
Total	$	3,899	$	(1,358	)	$	2,541	$	(68	)	$	(2,037	)	$	436
December 31, 2012
Derivative liabilities (d)	$	2,178	$	(1,549	)	$	629	$	(148	)	$	–		$	481
Repurchase agreements		3,389		–			3,389		(44	)		(3,345	)		–
Securities loaned		–		–			–		–			–			–
Total	$	5,567	$	(1,549	)	$	4,018	$	(192	)	$	(3,345	)	$	481

(a) Includes $862 million and $1.2 billion of cash collateral related receivables that were netted against derivative liabilities at September 30, 2013 and December 31, 2012, respectively.

(b) For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse repurchase agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be offset in the event of counterparty default.

(c) Includes the fair value of securities pledged by the Company to the counterparty. These securities are included on the Consolidated Balance Sheet unless the Company defaults.

(d) Excludes $55 million and $5 million of derivative liabilities centrally cleared or otherwise not subject to netting arrangements at September 30, 2013 and December 31, 2012, respectively.

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Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share

Note 8 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)	2013			2012			2013			2012
Net income attributable to U.S. Bancorp	$	1,468		$	1,474		$	4,380		$	4,227
Preferred dividends		(61	)		(64	)		(189	)		(174	)
Impact of preferred stock redemption (a)		–			–			(8	)		–
Earnings allocated to participating stock awards		(7	)		(6	)		(20	)		(19	)
Net income applicable to U.S. Bancorp common shareholders	$	1,400		$	1,404		$	4,163		$	4,034
Average common shares outstanding		1,832			1,886			1,844			1,892
Net effect of the exercise and assumed purchase of stock awards		11			11			10			9
Average diluted common shares outstanding		1,843			1,897			1,854			1,901
Earnings per common share	$	.76		$	.74		$	2.26		$	2.13
Diluted earnings per common share	$	.76		$	.74		$	2.25		$	2.12

(a) Represents stock issuance costs originally recorded in capital surplus upon the issuance of the Company’s Series D Non-Cumulative Perpetual Preferred Stock that were reclassified to retained earnings on the redemption date.

Options outstanding at September 30, 2013, to purchase 9 million common shares for the nine months ended September 30, 2013, and 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, were not included in the computation of diluted earnings per share because they were antidilutive. Convertible senior debentures outstanding at September 30, 2012, 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 for both the three months and nine months ended September 30, 2012, because they were antidilutive.

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Mortgage Servicing Rights - Changes in Fair Value of Capitalized MSRs (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Transfers And Servicing Of Financial Assets [Abstract]
Balance at beginning of period	$ 2,377	$ 1,594	$ 1,700	$ 1,519
Rights purchased	2	10	7	39
Rights capitalized	187	224	674	700
Changes in fair value of MSRs
Due to fluctuations in market interest rates	71	(123)	503	(298)
Due to revised assumptions or models	42	(2)	33	(19)
Other changes in fair value	(102)	(150)	(340)	(388)
Balance at end of period	$ 2,577	$ 1,553	$ 2,577	$ 1,553

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Subsequent Events

9 Months Ended

Sep. 30, 2013

Subsequent Events [Abstract]

Subsequent Events

Note 15 Subsequent Events

The Company has evaluated the impact of events that have occurred subsequent to September 30, 2013 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.

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Fair Values of Assets and Liabilities

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Values of Assets and Liabilities

Note 13 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 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, 2013 and 2012, 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, 2013 and 2012, 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. 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 and certain corporate debt securities.

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 $5 million net loss and a $241 million net gain for the three months ended September 30, 2013 and 2012, respectively, and a $326 million net loss and a $501 million net gain for the nine months ended September 30, 2013 and 2012, 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 on 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. 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, publicly available data 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 observable market activity for MSRs on comparable portfolios, and, 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 arrangements, as well as collateral received or provided under collateral arrangements. 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 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 assumptions about 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. Included in short-term borrowings is the Company’s obligation on securities sold short, which is required to be accounted for at fair value per applicable accounting guidance. Fair value for other short-term borrowings 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. Increases in prepayment rates for Level 3 securities 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, 2013:

	Minimum			Maximum			Average
Residential Prime Non-Agency Mortgage-Backed Securities (a)
Estimated lifetime prepayment rates		6	%		20	%		13	%
Lifetime probability of default rates		–			7			4
Lifetime loss severity rates		25			65			43
Discount margin		2			6			4
Residential Non-Prime Non-Agency Mortgage-Backed Securities (b)
Estimated lifetime prepayment rates		2	%		10	%		6	%
Lifetime probability of default rates		4			11			7
Lifetime loss severity rates		15			70			54
Discount margin		1			6			3
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		8			8			8

(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, 2013:

	Minimum			Maximum			Average
Expected prepayment		10	%		22	%		12	%
Discount rate		10			13			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, 2013:

	Minimum			Maximum			Average
Expected loan close rate		32	%		100	%		76	%
Inherent MSR value (basis points per loan)		46			219			108

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, 2013, the minimum, maximum and average credit valuation adjustment as a percentage of the derivative contract fair value prior to adjustment was 0 percent, 95 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, 2013
Available-for-sale securities
U.S. Treasury and agencies	$	463	$	1,058	$	–	$	–		$	1,521
Mortgage-backed securities
Residential
Agency		–		29,220		–		–			29,220
Non-agency
Prime (a)		–		–		500		–			500
Non-prime (b)		–		–		303		–			303
Commercial
Agency		–		169		–		–			169
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		–		25		–		–			25
Other		–		570		40		–			610
Obligations of state and political subdivisions		–		5,820		–		–			5,820
Obligations of foreign governments		–		6		–		–			6
Corporate debt securities		–		633		9		–			642
Perpetual preferred securities		–		209		–		–			209
Other investments		265		17		–		–			282
Total available-for-sale		728		37,727		852		–			39,307
Mortgage loans held for sale		–		3,844		–		–			3,844
Mortgage servicing rights		–		–		2,577		–			2,577
Derivative assets		–		875		670		(572	)		973
Other assets		85		922		–		–			1,007
Total	$	813	$	43,368	$	4,099	$	(572	)	$	47,708
Derivative liabilities	$	–	$	1,827	$	53	$	(1,358	)	$	522
Short-term borrowings (c)		231		533		–		–			764
Total	$	231	$	2,360	$	53	$	(1,358	)	$	1,286
December 31, 2012
Available-for-sale securities
U.S. Treasury and agencies	$	491	$	735	$	–	$	–		$	1,226
Mortgage-backed securities
Residential
Agency		–		29,495		–		–			29,495
Non-agency
Prime (a)		–		–		624		–			624
Non-prime (b)		–		–		355		–			355
Commercial
Agency		–		193		–		–			193
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		–		42		–		–			42
Other		–		577		15		–			592
Obligations of state and political subdivisions		–		6,455		–		–			6,455
Obligations of foreign governments		–		6		–		–			6
Corporate debt securities		–		722		9		–			731
Perpetual preferred securities		–		218		–		–			218
Other investments		187		15		–		–			202
Total available-for-sale		678		38,458		1,003		–			40,139
Mortgage loans held for sale		–		7,957		–		–			7,957
Mortgage servicing rights		–		–		1,700		–			1,700
Derivative assets		–		572		1,234		(418	)		1,388
Other assets		94		386		–		–			480
Total	$	772	$	47,373	$	3,937	$	(418	)	$	51,664
Derivative liabilities	$	–	$	2,128	$	55	$	(1,549	)	$	634
Short-term borrowings (c)		50		351		–		–			401
Total	$	50	$	2,479	$	55	$	(1,549	)	$	1,035

(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) Represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.

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
2013
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	547	$	(2	)	$	(4	)	$	–	$	–		$	(41	)	$	–		$	–		$	500	$	(4	)
Non-prime (b)		319		(3	)		(4	)		–		–			(9	)		–			–			303		(4	)
Asset-backed securities
Other		40		1			(2	)		3		–			(2	)		–			–			40		(2	)
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		915		(4	)(c)		(10	)(f)		3		–			(52	)		–			–			852		(10	)
Mortgage servicing rights		2,377		11	(d)		–			2		–			–			187	(g)		–			2,577		11	(d)
Net derivative assets and liabilities		423		182	(e)		–			–		(2	)		–			–			14			617		62	(h)
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	)(i)		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	(j)		–			1		(1	)		–			–			(713	)		1,490		(557	)(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 $(3) million included in securities gains (losses) and $(1) million included in interest income.

(d) Included in mortgage banking revenue.

(e) Approximately $89 million included in other noninterest income and $93 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 $(28) million included in other noninterest income and $90 million included in mortgage banking revenue.

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

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

(k) Approximately $7 million included in other noninterest income and $(564) 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
2013
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime (a)	$	624	$	(6	)	$	4		$	–	$	–		$	(122	)	$	–		$	–		$	500	$	4
Non-prime (b)		355		(11	)		13			–		(20	)		(34	)		–			–			303		14
Asset-backed securities
Other		15		2			(1	)		28		–			(4	)		–			–			40		(1	)
Corporate debt securities		9		–			–			–		–			–			–			–			9		–
Total available-for-sale		1,003		(15	)(c)		16	(f)		28		(20	)		(160	)		–			–			852		17
Mortgage servicing rights		1,700		196	(d)		–			7		–			–			674	(g)		–			2,577		196	(d)
Net derivative assets and liabilities		1,179		(34	)(e)		–			1		(4	)		–			–			(525	)		617		(565	)(h)
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	)(i)		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	(j)		–			1		(3	)		–			–			(1,786	)		1,490		(1,407	)(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 $(13) million included in securities gains (losses) and $(2) million included in interest income.

(d) Included in mortgage banking revenue.

(e) Approximately $(122) million included in other noninterest income and $88 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 $(301)million included in other noninterest income and $(264) million included in mortgage banking revenue.

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

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

(k) Approximately $6 million included in other noninterest income and $1.4 billion 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 balances of assets measured at fair value on a nonrecurring basis:

	September 30, 2013								December 31, 2012
(Dollars in Millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Loans (a)	$	–	$	–	$	94	$	94	$	–	$	–	$	140	$	140
Other assets (b)		–		–		144		144		–		–		194		194

(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)	2013		2012		2013		2012
Loans (a)	$	22	$	12	$	55	$	51
Other assets (b)		14		42		73		129

(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, 2013							December 31, 2012
(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	$	3,844	$	3,693	$	151		$	7,957	$	7,588	$	369
Nonaccrual loans		10		15		(5	)		8		13		(5	)
Loans 90 days or more past due		1		1		–			2		3		(1	)

Disclosures about Fair Value of Financial Instruments

The following table summarizes the estimated fair value for financial instruments as of September 30, 2013 and December 31, 2012, 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, 2013										December 31, 2012
	Carrying Amount		Fair Value								Carrying Amount		Fair Value
(Dollars in Millions)			Level 1		Level 2		Level 3		Total				Level 1		Level 2		Level 3		Total
Financial Assets
Cash and due from banks	$	11,615	$	11,615	$	–	$	–	$	11,615	$	8,252	$	8,252	$	–	$	–	$	8,252
Federal funds sold and securities purchased under resale agreements		259		–		259		–		259		437		–		437		–		437
Investment securities held-to-maturity		36,904		2,912		33,611		109		36,632		34,389		2,984		31,845		123		34,952
Loans held for sale (a)		14		–		–		14		14		19		–		–		19		19
Loans (b)		227,027		–		–		228,087		228,087		218,765		–		–		220,354		220,354
Other financial instruments		2,149		–		1,166		1,000		2,166		7,367		–		1,228		6,157		7,385
Financial Liabilities
Deposits		261,716		–		261,792		–		261,792		249,183		–		249,594		–		249,594
Short-term borrowings (c)		25,364		–		25,307		–		25,307		25,901		–		25,917		–		25,917
Long-term debt		18,750		–		19,216		–		19,216		25,516		–		26,205		–		26,205

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

(b) Excludes loans measured at fair value on a nonrecurring basis.

(c) Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.

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 $410 million and $415 million at September 30, 2013 and December 31, 2012, respectively. The carrying value of other guarantees was $368 million and $452 million at September 30, 2013 and December 31, 2012, respectively.

XML

Guarantees and Contingent Liabilities - Company's Representation and Warranty Reserve (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Valuation And Qualifying Accounts [Abstract]
Representation and Warranty Reserve, Beginning Balance	$ 190	$ 216	$ 240	$ 160
Net realized losses	(13)	(32)	(52)	(88)
Change in reserve	(1)	36	(12)	148
Representation and Warranty Reserve, Ending Balance	$ 176	$ 220	$ 176	$ 220

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 31, 2013
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2013
Document Fiscal Year Focus	2013
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		1,826,304,944

XML

Derivative Instruments - Asset and Liability Management Derivative Positions of Company (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Derivative [Line Items]
Fair Value, Assets	$ 1,362	$ 1,546
Fair Value, Liabilities	1,825	2,178
Asset and Liability Management Positions [Member]
Derivative [Line Items]
Notional Value, Assets	22,741	35,234
Fair Value, Assets	284	363
Notional Value, Liabilities	16,715	26,808
Fair Value, Liabilities	706	818
Asset and Liability Management Positions [Member] | Fair Value Hedges [Member] | Interest Rate Contracts [Member] | Receive Fixed/Pay Floating Swaps [Member]
Derivative [Line Items]
Notional Value, Assets	500	500
Fair Value, Assets	21	30
Derivative Asset Average Remaining Maturity Period	2 years 4 months 2 days	3 years 1 month 2 days
Notional Value, Liabilities
Fair Value, Liabilities
Derivative Liability Average Remaining Maturity Period		0 years
Asset and Liability Management Positions [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | Receive Fixed/Pay Floating Swaps [Member]
Derivative [Line Items]
Notional Value, Assets	7,000	7,000
Fair Value, Assets	31	45
Derivative Asset Average Remaining Maturity Period	1 year 1 month 6 days	1 year 10 months 2 days
Notional Value, Liabilities
Fair Value, Liabilities
Derivative Liability Average Remaining Maturity Period		0 years
Asset and Liability Management Positions [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | Pay Fixed/Receive Floating Swaps [Member]
Derivative [Line Items]
Notional Value, Assets	272	32
Fair Value, Assets	17
Derivative Asset Average Remaining Maturity Period	9 years 7 days	9 years 10 months 17 days
Notional Value, Liabilities	4,288	4,528
Fair Value, Liabilities	548	718
Derivative Liability Average Remaining Maturity Period	2 years 8 months 16 days	3 years 9 months 15 days
Asset and Liability Management Positions [Member] | Net Investment Hedges [Member] | Foreign Exchange Forward Contracts [Member]
Derivative [Line Items]
Notional Value, Assets		758
Fair Value, Assets		1
Derivative Asset Average Remaining Maturity Period		26 days
Notional Value, Liabilities	925
Fair Value, Liabilities	11
Derivative Liability Average Remaining Maturity Period	18 days	0 years
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Receive Fixed/Pay Floating Swaps [Member]
Derivative [Line Items]
Notional Value, Assets	3,220	350
Fair Value, Assets	83	1
Derivative Asset Average Remaining Maturity Period	10 years 2 months 23 days	10 years 2 months 16 days
Notional Value, Liabilities		3,775
Fair Value, Liabilities		14
Derivative Liability Average Remaining Maturity Period		10 years 2 months 16 days
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Futures and Forwards [Member] | Purchased [Member]
Derivative [Line Items]
Notional Value, Assets	4,418	11,164
Fair Value, Assets	88	138
Derivative Asset Average Remaining Maturity Period	1 month 2 days	26 days
Notional Value, Liabilities	34	2,921
Fair Value, Liabilities	8	13
Derivative Liability Average Remaining Maturity Period	29 days	15 days
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Futures and Forwards [Member] | Written [Member]
Derivative [Line Items]
Notional Value, Assets	41	6,299
Fair Value, Assets	2	18
Derivative Asset Average Remaining Maturity Period	2 months 12 days	1 month 10 days
Notional Value, Liabilities	6,203	12,223
Fair Value, Liabilities	122	57
Derivative Liability Average Remaining Maturity Period	1 month 2 days	1 month 2 days
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Options [Member] | Purchased [Member]
Derivative [Line Items]
Notional Value, Assets	2,325	2,435
Fair Value, Assets
Derivative Asset Average Remaining Maturity Period	26 days	26 days
Notional Value, Liabilities
Fair Value, Liabilities
Derivative Liability Average Remaining Maturity Period		0 years
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Options [Member] | Written [Member]
Derivative [Line Items]
Notional Value, Assets	1,800	4,991
Fair Value, Assets	34	123
Derivative Asset Average Remaining Maturity Period	1 month 2 days	1 month 13 days
Notional Value, Liabilities	9	4
Fair Value, Liabilities
Derivative Liability Average Remaining Maturity Period	7 days	22 days
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Foreign Exchange Forward Contracts [Member]
Derivative [Line Items]
Notional Value, Assets	1,980	618
Fair Value, Assets	4	4
Derivative Asset Average Remaining Maturity Period	7 days	11 days
Notional Value, Liabilities	2,695	1,383
Fair Value, Liabilities	6	6
Derivative Liability Average Remaining Maturity Period	7 days	4 days
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Equity Contracts [Member]
Derivative [Line Items]
Notional Value, Assets	8	31
Fair Value, Assets
Derivative Asset Average Remaining Maturity Period	1 year 8 months 19 days	2 years 9 months 18 days
Notional Value, Liabilities	66	27
Fair Value, Liabilities
Derivative Liability Average Remaining Maturity Period	1 year 10 months 21 days	2 years 5 months 16 days
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Credit Contracts [Member]
Derivative [Line Items]
Notional Value, Assets	1,177	1,056
Fair Value, Assets	4	3
Derivative Asset Average Remaining Maturity Period	4 years 1 month 13 days	4 years 6 months 22 days
Notional Value, Liabilities	2,495	1,947
Fair Value, Liabilities	$ 11	$ 10
Derivative Liability Average Remaining Maturity Period	4 years 10 months 28 days	3 years 1 month 10 days

XML

Guarantees and Contingent Liabilities

9 Months Ended

Sep. 30, 2013

Commitments And Contingencies Disclosure [Abstract]

Guarantees and Contingent Liabilities

Note 14 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 October 19, 2012, Visa signed a settlement agreement to resolve class action claims associated with the multi-district interchange litigation, the largest of the remaining Visa Litigation matters. The settlement has not yet been finally approved by the court, is not yet binding, and has been challenged by some class members. At September 30, 2013, the carrying amount of the Company’s liability related to the Visa Litigation matters, net of its share of the escrow fundings, was $59 million and included the Company’s estimate of its remaining share of the temporary reduction in interchange rates specified in the settlement 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 13.

Other Guarantees and Contingent Liabilities

The following table is a summary of other guarantees and contingent liabilities of the Company at September 30, 2013:

(Dollars in Millions)	Collateral Held		Carrying Amount		Maximum Potential Future Payments
Standby letters of credit	$	–	$	71	$	17,339
Third-party borrowing arrangements		–		–		17
Securities lending indemnifications		5,494		–		5,326
Asset sales		–		267		3,250	(a)
Merchant processing		840		69		86,584
Contingent consideration arrangements		–		14		17
Tender option bond program guarantee		4,762		–		4,711
Minimum revenue guarantees		–		12		12
Other		–		6		553

(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, Europe, Mexico and Brazil through wholly-owned subsidiaries and joint ventures with other financial institutions. In the event a merchant was unable to fulfill product or services subject to delayed delivery, such as airline tickets, 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, 2013, the value of airline tickets purchased to be delivered at a future date was $6.2 billion. The Company held collateral of $687 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, 2013, the Company had reserved $176 million for potential losses from representation and warranty obligations, compared with $240 million at December 31, 2012. 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)	2013			2012			2013			2012
Balance at beginning of period	$	190		$	216		$	240		$	160
Net realized losses		(13	)		(32	)		(52	)		(88	)
Change in reserve		(1	)		36			(12	)		148
Balance at end of period	$	176		$	220		$	176		$	220

As of September 30, 2013 and December 31, 2012, the Company had $114 million and $131 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.

Litigation and Regulatory Matters The Company is subject to various litigation and regulatory matters that arise in the ordinary course of its business. The Company establishes reserves for such matters when potential losses become probable and can be reasonably estimated. The Company believes the ultimate resolution of existing legal and regulatory matters will not have a material adverse effect on the financial condition, results of operations or cash flows of the Company. However, changes in circumstances or additional information could result in additional accruals or resolution in excess of established accruals, which could adversely affect the Company’s results from operations, potentially materially.

Certain federal and state governmental authorities reached settlement agreements in 2012 and 2013 with other major financial institutions regarding their mortgage origination, servicing, and foreclosure activities. Those governmental authorities have had settlement discussions with other financial institutions, including the Company. The Company has not agreed to any settlement; 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 is currently subject to other investigations and examinations by government agencies and bank regulators concerning mortgage-related practices, including those related to origination practices for Federal Housing Administration insured residential home loans, compliance with underwriting guidelines relating to residential home loans sold to GSEs, and various practices related to lender-placed insurance. The Company is cooperating fully with these examinations and investigations, any of which could lead to administrative or legal proceedings or settlements involving remedies including fines, penalties, restitution or alterations in the Company’s business practices and in additional costs and expenses.

Due to their complex nature, it can be years before litigation and regulatory matters are resolved. For those litigation and regulatory matters where the Company has information to develop an estimate or range of loss, the Company believes the upper end of reasonably possible losses in aggregate, in excess of any reserves established for matters where a loss is considered probable, is approximately $200 million. This estimate is subject to significant judgment and uncertainties and the matters underlying the estimate will change from time to time. Actual results may vary significantly from the current estimates.

For additional information on the nature of the Company’s guarantees and contingent liabilities, refer to Note 21 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

XML

Loans and Allowance for Credit Losses - Impaired Loans Average Recorded Investment and Interest Income (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	$ 7,130	$ 7,639	$ 7,346	$ 7,752
Interest Income Recognized	81	85	270	227
Commercial [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	380	413	384	496
Interest Income Recognized	5	6	24	11
Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	819	1,250	950	1,371
Interest Income Recognized	6	12	27	29
Residential Mortgages [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	2,765	2,752	2,744	2,692
Interest Income Recognized	32	31	99	87
Credit Card [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	347	495	380	529
Interest Income Recognized	3	6	12	22
Other Retail [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	417	354	431	259
Interest Income Recognized	7	3	19	7
Total Impaired Loans, Excluding GNMA and Covered Loans [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	4,728	5,264	4,889	5,347
Interest Income Recognized	53	58	181	156
Loans Purchased from GNMA Mortgage Pools [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	1,883	1,492	1,869	1,363
Interest Income Recognized	22	20	68	51
Covered Loans [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	519	883	588	1,042
Interest Income Recognized	$ 6	$ 7	$ 21	$ 20

XML

Loans and Allowance for Credit Losses - Summary of Impaired Loans by Portfolio Class (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment	$ 7,019	$ 7,659
Unpaid Principal Balance	9,876	11,082
Valuation Allowance	647	838
Commitments to Lend Additional Funds	51	58
Commercial [Member]
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment	375	404
Unpaid Principal Balance	857	1,200
Valuation Allowance	38	40
Commitments to Lend Additional Funds	25	39
Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment	721	1,077
Unpaid Principal Balance	1,570	2,251
Valuation Allowance	36	70
Commitments to Lend Additional Funds	14	4
Residential Mortgages [Member]
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment	2,762	2,748
Unpaid Principal Balance	3,404	3,341
Valuation Allowance	323	415
Commitments to Lend Additional Funds	2
Credit Card [Member]
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment	335	442
Unpaid Principal Balance	335	442
Valuation Allowance	101	153
Commitments to Lend Additional Funds
Other Retail [Member]
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment	408	443
Unpaid Principal Balance	609	486
Valuation Allowance	86	101
Commitments to Lend Additional Funds	3	3
Total Impaired Loans, Excluding GNMA and Covered Loans [Member]
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment	4,601	5,114
Unpaid Principal Balance	6,775	7,720
Valuation Allowance	584	779
Commitments to Lend Additional Funds	44	46
Loans Purchased from GNMA Mortgage Pools [Member]
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment	1,915	1,778
Unpaid Principal Balance	1,915	1,778
Valuation Allowance	29	39
Commitments to Lend Additional Funds
Covered Loans [Member]
Financing Receivable, Impaired [Line Items]
Period-end Recorded Investment	503	767
Unpaid Principal Balance	1,186	1,584
Valuation Allowance	34	20
Commitments to Lend Additional Funds	$ 7	$ 12

XML

Derivative Instruments - Customer-Related Derivative Positions of Company (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Derivative [Line Items]
Fair Value, Assets	$ 1,362	$ 1,546
Fair Value, Liabilities	1,825	2,178
Customer-Related Positions [Member]
Derivative [Line Items]
Notional Value, Assets	32,809	33,440
Fair Value, Assets	1,261	1,443
Notional Value, Liabilities	33,070	33,013
Fair Value, Liabilities	1,174	1,365
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Receive Fixed/Pay Floating Swaps [Member]
Derivative [Line Items]
Notional Value, Assets	13,562	16,671
Fair Value, Assets	736	1,085
Derivative Asset Average Remaining Maturity Period	5 years 3 months 18 days	4 years 9 months 11 days
Notional Value, Liabilities	5,138	1,090
Fair Value, Liabilities	70	15
Derivative Liability Average Remaining Maturity Period	4 years 11 months 23 days	9 years 3 months 18 days
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Pay Fixed/Receive Floating Swaps [Member]
Derivative [Line Items]
Notional Value, Assets	4,700	928
Fair Value, Assets	76	14
Derivative Asset Average Remaining Maturity Period	5 years 1 month 24 days	11 years 1 month 13 days
Notional Value, Liabilities	14,089	16,923
Fair Value, Liabilities	691	1,042
Derivative Liability Average Remaining Maturity Period	5 years 3 months 4 days	4 years 8 months 27 days
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Options [Member] | Purchased [Member]
Derivative [Line Items]
Notional Value, Assets	3,681	3,046
Fair Value, Assets	28	16
Derivative Asset Average Remaining Maturity Period	4 years 5 months 16 days	5 years 2 months 27 days
Notional Value, Liabilities	107	28
Fair Value, Liabilities	1
Derivative Liability Average Remaining Maturity Period	1 year 1 month 13 days	4 years 5 months 1 day
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Options [Member] | Written [Member]
Derivative [Line Items]
Notional Value, Assets	107	286
Fair Value, Assets	1
Derivative Asset Average Remaining Maturity Period	1 year 1 month 13 days	9 months
Notional Value, Liabilities	3,681	2,788
Fair Value, Liabilities	28	16
Derivative Liability Average Remaining Maturity Period	4 years 5 months 16 days	5 years 8 months 5 days
Customer-Related Positions [Member] | Foreign Exchange Contract [Member] | Options [Member] | Purchased [Member]
Derivative [Line Items]
Notional Value, Assets	367	323
Fair Value, Assets	9	6
Derivative Asset Average Remaining Maturity Period	7 months 21 days	6 months 18 days
Notional Value, Liabilities
Fair Value, Liabilities
Derivative Liability Average Remaining Maturity Period
Customer-Related Positions [Member] | Foreign Exchange Contract [Member] | Options [Member] | Written [Member]
Derivative [Line Items]
Notional Value, Assets
Fair Value, Assets
Notional Value, Liabilities	367	323
Fair Value, Liabilities	9	6
Derivative Liability Average Remaining Maturity Period	7 months 21 days	6 months 18 days
Customer-Related Positions [Member] | Foreign Exchange Contract [Member] | Forwards, Spots and Swaps [Member]
Derivative [Line Items]
Notional Value, Assets	10,392	12,186
Fair Value, Assets	411	322
Derivative Asset Average Remaining Maturity Period	8 months 16 days	5 months 5 days
Notional Value, Liabilities	9,688	11,861
Fair Value, Liabilities	$ 375	$ 286
Derivative Liability Average Remaining Maturity Period	8 months 5 days	5 months 9 days