8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 22, 2014

U.S. BANCORP

(Exact name of registrant as specified in its charter)

1-6880

(Commission File Number)

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

800 Nicollet Mall

Minneapolis, Minnesota 55402

(Address of principal executive offices and zip code)

(651) 466-3000

(Registrant’s telephone number, including area code)

(not applicable)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

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

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

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

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

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On January 22, 2014 , U.S. Bancorp (the “Company”) issued a press release reporting quarter ended December 31, 2013 results, and posted on its website its 4Q13 Earnings Conference Call Presentation, which contains certain additional historical and forward-looking information relating to the Company. The press release is included as Exhibit 99.1 hereto and is incorporated herein by reference. The information included in the press release is considered to be “filed” under the Securities Exchange Act of 1934. The 4Q13 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated herein by reference. The information included in the 4Q13 Earnings Conference Call Presentation is considered to be “furnished” under the Securities Exchange Act of 1934. The press release and 4Q13 Earnings Conference Call Presentation contain forward-looking statements regarding the Company and each includes a cautionary statement identifying important factors that could cause actual results to differ materially from those anticipated.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(c) Exhibits.

99.1 Press Release issued by U.S. Bancorp on January 22, 2014 , deemed “filed” under the Securities Exchange Act of 1934.

99.2 4Q13 Earnings Conference Call Presentation, deemed “furnished” under the Securities Exchange Act of 1934.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

U.S. BANCORP

By /s/    Craig E. Gifford      

Craig E. Gifford

Executive Vice President and
Controller

DATE: January 22, 2014

EX-99.1

Exhibit 99.1

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

U.S. BANCORP REPORTS FOURTH QUARTER AND FULL YEAR 2013 EARNINGS

Achieves Record Earnings for the Full Year 2013

MINNEAPOLIS, January 22, 2014 — U.S. Bancorp (NYSE: USB) today reported net income of $1,456 million for the fourth quarter of 2013, or $.76 per diluted common share, compared with $1,420 million, or $.72 per diluted common share, in the fourth quarter of 2012.

Highlights for the full year 2013 included:

• Record full year 2013 net income of $5.8 billion, 3.3 percent higher than 2012

• Record full year diluted earnings per common share of $3.00, 5.6 percent higher than 2012

• Industry-leading performance measures, including return on average assets of 1.65 percent, return on average common equity of 15.8 percent and efficiency ratio of 52.4 percent

• Returned 71 percent of 2013 earning to shareholders through dividend and share buybacks

Highlights for the fourth quarter of 2013 included:

• Industry-leading performance ratios, including:

• Return on average assets of 1.62 percent

• Return on average common equity of 15.4 percent

• Efficiency ratio of 54.9 percent

• Growth in average total loans of 5.7 percent over the fourth quarter of 2012 (7.3 percent excluding covered loans) and 1.5 percent on a linked quarter basis (1.9 percent excluding covered loans)

• Growth in average total commercial loans of 7.8 percent over the fourth quarter of 2012 and 1.3 percent over the third quarter of 2013

• Growth in average total commercial real estate loans of 6.7 percent over the fourth quarter of 2012 and 2.1 percent over the third quarter of 2013

• Growth in average commercial and commercial real estate commitments of 10.1 percent year-over-year and 2.7 percent over the prior quarter

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 2

• Strong new lending activity of $58.4 billion during the fourth quarter, including:

• $40.6 billion of new and renewed commercial and commercial real estate commitments

• $2.7 billion of lines related to new credit card accounts

• $15.1 billion of mortgage and other retail loan originations

• Continued strong growth in average total deposits of 5.4 percent over the fourth quarter of 2012 and 1.8 percent on a linked quarter basis.

• Average low cost deposits, including noninterest-bearing and total savings deposits, grew by 8.5 percent year-over-year and 4.8 percent linked quarter

• Net charge-offs declined on both a linked quarter and year-over-year basis. Provision for credit losses was $35 million less than net charge-offs

• Net charge-offs were $16 million (4.9 percent) lower than the third quarter of 2013

• Annualized net charge-offs to average total loans ratio decreased to .53 percent

• Allowance to period-end loans was 1.93 percent at December 31, 2013

• Nonperforming assets decreased on both a linked quarter and year-over-year basis

• Nonperforming assets (excluding covered assets) decreased 3.6 percent from the third quarter of 2013

• Allowance to nonperforming assets (excluding covered assets) was 242 percent at December 31, 2013, compared with 235 percent at September 30, 2013, and 218 percent at December 31, 2012

• Tax rate on a taxable-equivalent basis was 23.8 percent for the fourth quarter, compared with 29.5 percent for the third quarter of 2013, principally reflecting the impact of accounting presentation changes related to investments in tax-advantaged projects

• Change had no impact on net income attributable to U.S. Bancorp

• Change increased other expense by $31 million, decreased net (income) loss attributable to noncontrolling interests by $53 million and decreased income tax expense by $84 million compared with the third quarter of 2013

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 3

• Capital generation continues to reinforce capital position and return. Ratios at December 31, 2013, were:

• Tier 1 capital ratio of 11.2 percent

• Total risk based capital ratio of 13.2 percent

• Tier 1 common equity to risk-weighted assets ratio of 9.4 percent

• Common equity tier 1 ratio of 8.8 percent estimated using final rules for the Basel III standardized approach

• Returned 65 percent of fourth quarter earnings to shareholders through dividends and the buyback of 13 million common shares

EARNINGS SUMMARY	Table 1
($ in millions, except per-share data)

							Percent			Percent
							Change			Change
	4Q		3Q		4Q		4Q13 vs			4Q13 vs		Full Year		Full Year		Percent
	2013		2013		2012		3Q13			4Q12		2013		2012		Change
Net income attributable to U.S. Bancorp	$	1,456	$	1,468	$	1,420		(.8	)		2.5	$	5,836	$	5,647		3.3
Diluted earnings per common share	$	.76	$	.76	$	.72		—			5.6	$	3.00	$	2.84		5.6
Return on average assets (%)		1.62		1.65		1.62							1.65		1.65
Return on average common equity (%)		15.4		15.8		15.6							15.8		16.2
Net interest margin (%)		3.40		3.43		3.55							3.44		3.58
Efficiency ratio (%)		54.9		52.4		52.6							52.4		51.5
Tangible efficiency ratio (%) (a)		53.7		51.3		51.3							51.3		50.2
Dividends declared per common share	$	.230	$	.230	$	.195		—			17.9	$	.885	$	.780		13.5
Book value per common share (period-end)	$	19.92	$	19.31	$	18.31		3.2			8.8

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

Net income attributable to U.S. Bancorp was $1,456 million for the fourth quarter of 2013, 2.5 percent higher than the $1,420 million for the fourth quarter of 2012, and .8 percent lower than the $1,468 million for the third quarter of 2013. Diluted earnings per common share of $.76 in the fourth quarter of 2013 were $.04 higher than the fourth quarter of 2012 and equal to the previous quarter. Return on average assets and return on average common equity were 1.62 percent and 15.4 percent, respectively, for the fourth quarter of 2013, compared with 1.62 percent and 15.6 percent, respectively, for the fourth quarter of 2012. The provision for credit losses was lower than net charge-offs by $35 million in the fourth quarter of 2013, $30 million lower in the third quarter of 2013 and $25 million lower in the fourth quarter of 2012.

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 4

U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “Today U.S. Bancorp reported record earnings for full year 2013 of $5.8 billion, or $3.00 per diluted common share. The 2013 results included top-tier returns on average assets and average common equity of 1.65 percent and 15.8 percent, respectively, and an efficiency ratio of 52.4 percent. I am particularly proud to have achieved these results during a year marked by slow economic growth, a significant pullback in mortgage activity and continued regulatory and legislative change and uncertainty. Our results clearly demonstrate the benefits we derive from our diverse mix of businesses and conservative risk profile.

“Our fourth quarter earnings per diluted common share were $.76, a 5.6 percent increase over the same quarter of 2012. The Company’s balance sheet continued to expand during the quarter with average loans higher by 5.7 percent over the prior year and, as expected, 1.5 percent, or 6 percent annualized, on a linked quarter basis. Virtually all loan categories posted growth versus comparable time periods. Fee-based revenue was negatively impacted this quarter on both a year-over-year and linked quarter basis by the reduction in mortgage banking activity, but the impact was muted by growth in other fee businesses and, overall, by prudent expense management.

“Credit quality continues to be strong, as total net charge-offs and nonperforming assets declined, again, in the fourth quarter. Net charge-offs were .53 percent of average total loans, compared with .57 percent in the previous quarter and .85 percent in the same quarter of 2012. Nonperforming assets, excluding covered assets, declined by $67 million, or 3.6 percent from the prior quarter.

“We continue to generate significant capital each quarter, while returning a majority of our earnings to shareholders in the form of share buybacks and dividends. Our tier 1 capital ratio at December 31st was 11.2 percent, and our tier 1 common equity ratio was 9.4 percent. Further, our common equity tier 1 ratio at December 31st, estimated using final rules for the Basel III standardized approach, was 8.8 percent. During 2013, we returned $4.0 billion, or 71 percent, of our earnings to shareholders through dividends and the repurchase of 65 million shares of stock. We completed and submitted our 2014 Comprehensive Capital Plan to the Federal Reserve in early January, and await regulatory approval to raise our dividend and continue our stock buyback program in 2014.

“On January 7th we announced the purchase of a Chicago branch franchise owned by RBS Citizens Financial Group. The investment will nearly double our market share in this important market within our footprint, strengthening our position and adding products, services and convenience for new and existing customers, as well as value for our shareholders.

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 5

“Our Company’s results are directly tied to the hard work and dedication of our employees, and I want to take the opportunity today to thank them for their contribution to our success. On January 14th, we held our 8th annual All Employee Meeting. The great majority of our employees attended one of seventy-four meetings scheduled to accommodate numerous time zones across the U.S., Canada and Europe. Employees gathered in person, on the phone, via the web and by satellite connection to hear about our 2013 accomplishments and our new initiatives for 2014. It was a pleasure to once again make this annual connection with our employees. Our employees are engaged and passionate about serving our customers and communities, and I am proud to serve with them.

“I am very pleased with our record full year 2013 earnings. As we look forward to the coming year, we are mindful of the strength of our Company and how we, as a bank, remain an integral part of the growth and vibrancy of the nation’s economy, our communities and the customers we serve and support. We are focused on the future and confident in our ability to deliver outstanding products, service and results for the benefit of our customers, communities, employees and, most importantly, our shareholders.”

INCOME STATEMENT HIGHLIGHTS	Table 2
(Taxable-equivalent basis, $ in millions, except per-share data)

								Percent			Percent
								Change			Change
	4Q			3Q		4Q		4Q13 vs			4Q13 vs			Full Year		Full Year		Percent
	2013			2013		2012		3Q13			4Q12			2013		2012		Change
Net interest income	$	2,733		$	2,714	$	2,783		.7			(1.8	)	$	10,828	$	10,969		(1.3	)
Noninterest income		2,156			2,177		2,329		(1.0	)		(7.4	)		8,774		9,319		(5.8	)
Total net revenue		4,889			4,891		5,112		—			(4.4	)		19,602		20,288		(3.4	)
Noninterest expense		2,682			2,565		2,686		4.6			(.1	)		10,274		10,456		(1.7	)
Income before provision and taxes		2,207			2,326		2,426		(5.1	)		(9.0	)		9,328		9,832		(5.1	)
Provision for credit losses		277			298		443		(7.0	)		(37.5	)		1,340		1,882		(28.8	)
Income before taxes		1,930			2,028		1,983		(4.8	)		(2.7	)		7,988		7,950		.5
Taxable-equivalent adjustment		56			56		56		—			—			224		224		—
Applicable income taxes		403			542		552		(25.6	)		(27.0	)		2,032		2,236		(9.1	)
Net income		1,471			1,430		1,375		2.9			7.0			5,732		5,490		4.4
Net (income) loss attributable to noncontrolling interests		(15	)		38		45		nm			nm			104		157		(33.8	)
Net income attributable to U.S. Bancorp	$	1,456		$	1,468	$	1,420		(.8	)		2.5		$	5,836	$	5,647		3.3
Net income applicable to U.S. Bancorp common shareholders	$	1,389		$	1,400	$	1,349		(.8	)		3.0		$	5,552	$	5,383		3.1
Diluted earnings per common share	$	.76		$	.76	$	.72		—			5.6		$	3.00	$	2.84		5.6

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 6

Net income attributable to U.S. Bancorp for the fourth quarter of 2013 was $36 million (2.5 percent) higher than the fourth quarter of 2012, and $12 million (.8 percent) lower than the third quarter of 2013. The increase in net income year-over-year was primarily due to a lower provision for credit losses, partially offset by a reduction in total net revenue, primarily driven by mortgage banking revenue. The decrease in net income on a linked quarter basis was principally due to a decrease in mortgage banking revenue and seasonally higher expense, partially offset by a favorable variance in the provision for credit losses.

Total net revenue on a taxable-equivalent basis for the fourth quarter of 2013 was $4,889 million; $223 million (4.4 percent) lower than the fourth quarter of 2012, reflecting a 1.8 percent decrease in net interest income and a 7.4 percent decrease in noninterest income. Net interest income declined year-over-year, as an increase in average earning assets was offset by a decrease in the net interest margin. Noninterest income declined year-over-year, primarily due to lower mortgage banking revenue. Total net revenue on a taxable-equivalent basis was basically flat on a linked quarter basis as a 1.0 percent decrease in noninterest income, driven by lower mortgage banking revenue, was partially offset by seasonally higher revenues in other business lines and an increase in net interest income.

Total noninterest expense in the fourth quarter of 2013 was $2,682 million; $4 million (.1 percent) lower than the fourth quarter of 2012 and $117 million (4.6 percent) higher than the third quarter of 2013. The modest decrease in total noninterest expense year-over-year was primarily due to the impact of an $80 million mortgage-foreclosure-related regulatory settlement accrual in the fourth quarter of 2012 and a reduction in mortgage servicing review-related professional services expense in the current quarter, offset by higher costs related to investments in tax-advantaged projects and employee benefits expense. The increase in total noninterest expense on a linked quarter basis was primarily due to higher costs related to investments in tax-advantaged projects, seasonally higher professional services expense and increased marketing and business development expense. In addition to an increase due to seasonality, tax-advantaged investment expense reflected the accounting presentation changes in the fourth quarter of 2013.

The Company’s provision for credit losses for the fourth quarter of 2013 was $277 million, $21 million lower than the prior quarter and $166 million lower than the fourth quarter of 2012. The provision for credit losses was lower than net charge-offs by $35 million in the fourth quarter of 2013, $30 million lower in the third quarter of 2013 and $25 million lower in the fourth quarter of 2012. Net charge-offs in the fourth quarter of 2013 were $312 million, compared with $328 million in the third quarter of 2013 and $468 million

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 7

in the fourth quarter of 2012. Given current economic conditions, the Company expects the level of net charge-offs to increase modestly in the first quarter of 2014.

Nonperforming assets include assets originated or acquired by the Company, as well as loans and other real estate acquired under FDIC loss sharing agreements that substantially reduce the risk of credit losses to the Company (“covered assets”). Excluding covered assets, nonperforming assets were $1,813 million at December 31, 2013, compared with $1,880 million at September 30, 2013, and $2,088 million at December 31, 2012. The decrease in nonperforming assets, excluding covered assets, compared with a year ago was driven primarily by reductions in the commercial mortgage portfolio, as well as by improvement in construction and development and credit card loans. Covered nonperforming assets were $224 million at December 31, 2013, compared with $332 million at September 30, 2013, and $583 million at December 31, 2012. The ratio of the allowance for credit losses to period-end loans, including covered loans, was 1.93 percent at December 31, 2013, compared with 1.98 percent at September 30, 2013, and 2.12 percent at December 31, 2012. The Company expects total nonperforming assets to remain relatively stable in the first quarter of 2014.

NET INTEREST INCOME	Table 3
(Taxable-equivalent basis; $ in millions)

										Change			Change
	4Q			3Q			4Q			4Q13 vs			4Q13 vs			Full Year			Full Year
	2013			2013			2012			3Q13			4Q12			2013			2012			Change
Components of net interest income
Income on earning assets	$	3,125		$	3,125		$	3,254		$	—		$	(129	)	$	12,513		$	13,112		$	(599	)
Expense on interest-bearing liabilities		392			411			471			(19	)		(79	)		1,685			2,143			(458	)
Net interest income	$	2,733		$	2,714		$	2,783		$	19		$	(50	)	$	10,828		$	10,969		$	(141	)
Average yields and rates paid
Earning assets yield		3.89	%		3.95	%		4.15	%		(.06	)%		(.26	)%		3.97	%		4.28	%		(.31	)%
Rate paid on interest-bearing liabilities		.68			.71			.84			(.03	)		(.16	)		.73			.95			(.22	)
Gross interest margin		3.21	%		3.24	%		3.31	%		(.03	)%		(.10	)%		3.24	%		3.33	%		(.09	)%
Net interest margin		3.40	%		3.43	%		3.55	%		(.03	)%		(.15	)%		3.44	%		3.58	%		(.14	)%
Average balances
Investment securities (a)	$	77,248		$	74,988		$	72,887		$	2,260		$	4,361		$	75,046		$	72,501		$	2,545
Loans		232,791			229,362			220,266			3,429			12,525			227,474			215,374			12,100
Earning assets		319,516			315,060			312,227			4,456			7,289			315,139			306,270			8,869
Interest-bearing liabilities		229,201			230,825			224,219			(1,624	)		4,982			230,400			225,466			4,934

(a) Excludes unrealized gain (loss)

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 8

Net Interest Income

Net interest income on a taxable-equivalent basis in the fourth quarter of 2013 was $2,733 million, a decrease of $50 million (1.8 percent) from the fourth quarter of 2012. The decrease was the result of lower rates on loans and investment securities, partially offset by growth in the corresponding average balances, continued growth in lower cost core deposit funding and the positive impact from maturities of higher-rate long-term debt. Average earning assets were $7.3 billion (2.3 percent) higher than the fourth quarter of 2012, driven by increases of $12.5 billion (5.7 percent) in average total loans and $4.4 billion (6.0 percent) in average investment securities, partially offset by decreases of $5.8 billion (66.2 percent) in average loans held for sale and $3.8 billion (37.0 percent) in other earning assets, principally due to the deconsolidation of certain community development and tax-advantaged investment variable interest entities during the second quarter of 2013. Net interest income increased $19 million (.7 percent) on a linked quarter basis, primarily driven by a $4.5 billion (1.4 percent) increase in average earning assets, reflecting growth in average total loans and investment securities, partially offset by a decline in average loans held for sale, and the positive impact of seasonally lower rebate costs on the Company’s government card program. The net interest margin in the fourth quarter of 2013 was 3.40 percent, compared with 3.55 percent in the fourth quarter of 2012, and 3.43 percent in the third quarter of 2013. The decline in the net interest margin on a year-over-year basis primarily reflected lower reinvestment rates on investment securities, as well as growth in the portfolio, and lower rates on loans, partially offset by lower rates on deposits and a reduction in higher cost long-term debt. On a linked quarter basis, the modest reduction in net interest margin was principally due to growth in lower rate investment securities, as well as the impact of higher cash balances at the Federal Reserve.

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 9

AVERAGE LOANS	Table 4
($ in millions)

	4Q 2013		3Q 2013		4Q 2012		Percent Change 4Q13 vs 3Q13			Percent Change 4Q13 vs 4Q12			Full Year 2013		Full Year 2012		Percent Change
Commercial	$	63,714	$	62,856	$	58,552		1.4			8.8		$	62,012	$	55,232		12.3
Lease financing		5,210		5,208		5,377		—			(3.1	)		5,262		5,598		(6.0	)
Total commercial		68,924		68,064		63,929		1.3			7.8			67,274		60,830		10.6
Commercial mortgages		31,780		31,546		30,762		.7			3.3			31,429		30,493		3.1
Construction and development		7,538		6,955		6,089		8.4			23.8			6,808		6,012		13.2
Total commercial real estate		39,318		38,501		36,851		2.1			6.7			38,237		36,505		4.7
Residential mortgages		50,732		49,139		43,156		3.2			17.6			47,982		40,290		19.1
Credit card		17,366		16,931		16,588		2.6			4.7			16,813		16,653		1.0
Retail leasing		5,847		5,664		5,384		3.2			8.6			5,654		5,222		8.3
Home equity and second mortgages		15,488		15,648		16,950		(1.0	)		(8.6	)		15,887		17,451		(9.0	)
Other		26,059		25,682		25,595		1.5			1.8			25,584		25,265		1.3
Total other retail		47,394		46,994		47,929		.9			(1.1	)		47,125		47,938		(1.7	)
Total loans, excluding covered loans		223,734		219,629		208,453		1.9			7.3			217,431		202,216		7.5
Covered loans		9,057		9,733		11,813		(6.9	)		(23.3	)		10,043		13,158		(23.7	)
Total loans	$	232,791	$	229,362	$	220,266		1.5			5.7		$	227,474	$	215,374		5.6

Average total loans were $12.5 billion (5.7 percent) higher in the fourth quarter of 2013 than the fourth quarter of 2012, driven by growth in residential mortgages (17.6 percent), commercial loans (8.8 percent), retail leasing (8.6 percent), total commercial real estate (6.7 percent), credit card (4.7 percent), and other retail loans (1.8 percent). These increases were partially offset by declines in home equity and second mortgages (8.6 percent), lease financing (3.1 percent) and covered loans (23.3 percent). Average total loans, excluding covered loans, were higher by 7.3 percent year-over-year. Average total loans were $3.4 billion (1.5 percent) higher in the fourth quarter of 2013 than the third quarter of 2013, driven by increases in residential mortgages (3.2 percent), retail leasing (3.2 percent), credit card (2.6 percent), total commercial real estate (2.1 percent), commercial loans (1.4 percent) and other retail loans (1.5 percent), partially offset by decreases in home equity and second mortgages (1.0 percent) and covered loans (6.9 percent). Excluding covered loans, average total loans grew by 1.9 percent on a linked quarter basis.

Average investment securities in the fourth quarter of 2013 were $4.4 billion (6.0 percent) higher year-over-year and $2.3 billion (3.0 percent) higher than the prior quarter. The increases were primarily due to

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 10

purchases of U.S. government agency-backed securities in anticipation of final liquidity coverage ratio regulatory requirements, net of prepayments and maturities.

AVERAGE DEPOSITS	Table 5
($ in millions)

	4Q 2013		3Q 2013		4Q 2012		Percent Change 4Q13 vs 3Q13			Percent Change 4Q13 vs 4Q12			Full Year 2013		Full Year 2012		Percent Change
Noninterest-bearing deposits	$	74,468	$	68,264	$	72,655		9.1			2.5		$	69,020	$	67,241		2.6
Interest-bearing savings deposits
Interest checking		50,112		48,235		45,168		3.9			10.9			48,792		45,433		7.4
Money market savings		57,550		55,982		49,545		2.8			16.2			55,512		46,874		18.4
Savings accounts		32,235		32,083		30,231		.5			6.6			31,916		29,596		7.8
Total of savings deposits		139,897		136,300		124,944		2.6			12.0			136,220		121,903		11.7
Time certificates of deposit less than $100,000		11,979		12,495		13,956		(4.1	)		(14.2	)		12,804		14,509		(11.8	)
Time deposits greater than $100,000		30,562		35,309		32,292		(13.4	)		(5.4	)		32,413		32,057		1.1
Total interest-bearing deposits		182,438		184,104		171,192		(.9	)		6.6			181,437		168,469		7.7
Total deposits	$	256,906	$	252,368	$	243,847		1.8			5.4		$	250,457	$	235,710		6.3

Average total deposits for the fourth quarter of 2013 were $13.1 billion (5.4 percent) higher than the fourth quarter of 2012. Average noninterest-bearing deposits increased $1.8 billion (2.5 percent) year-over-year, mainly in balances related to corporate trust, commercial real estate and commercial banking businesses. Average total savings deposits were $15.0 billion (12.0 percent) higher year-over-year, the result of growth in Consumer and Small Business Banking, as well as corporate trust, institutional trust, government banking and broker-dealer balances. Certificates of deposit less than $100,000 were $2.0 billion (14.2 percent) lower due to maturities, while time deposits greater than $100,000 decreased $1.7 billion (5.4 percent), primarily due to a decline in Consumer and Small Business Banking and corporate trust balances, partially offset by an increase in Wholesale and Commercial Real Estate balances. Time deposits greater than $100,000 are managed as an alternative to other funding sources, such as wholesale borrowing, based largely on relative pricing.

Average total deposits increased $4.5 billion (1.8 percent) over the third quarter of 2013. Average noninterest-bearing deposits increased $6.2 billion (9.1 percent) on a linked quarter basis, mainly in balances related to Wholesale Banking and Commercial Real Estate and corporate trust businesses. Average total savings deposits increased $3.6 billion (2.6 percent), including increases in Consumer and Small Business

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 11

Banking, Wholesale and Commercial Real Estate Banking and institutional trust balances. Compared with the third quarter of 2013, average time certificates of deposit less than $100,000 declined $516 million (4.1 percent) due to maturities. Average time deposits greater than $100,000 decreased $4.7 billion (13.4 percent) on a linked quarter basis, principally due to lower broker-dealer balances.

NONINTEREST INCOME	Table 6
($ in millions)

	4Q 2013		3Q 2013			4Q 2012		Percent Change 4Q13 vs 3Q13			Percent Change 4Q13 vs 4Q12			Full Year 2013		Full Year 2012			Percent Change
Credit and debit card revenue	$	263	$	244		$	242		7.8			8.7		$	965	$	892			8.2
Corporate payment products revenue		166		192			178		(13.5	)		(6.7	)		706		744			(5.1	)
Merchant processing services		367		371			354		(1.1	)		3.7			1,458		1,395			4.5
ATM processing services		79		83			83		(4.8	)		(4.8	)		327		346			(5.5	)
Trust and investment management fees		297		280			276		6.1			7.6			1,139		1,055			8.0
Deposit service charges		177		180			170		(1.7	)		4.1			670		653			2.6
Treasury management fees		130		134			130		(3.0	)		—			538		541			(.6	)
Commercial products revenue		243		207			226		17.4			7.5			859		878			(2.2	)
Mortgage banking revenue		231		328			476		(29.6	)		(51.5	)		1,356		1,937			(30.0	)
Investment products fees		45		46			39		(2.2	)		15.4			178		150			18.7
Securities gains (losses), net		1		(3	)		3		nm			(66.7	)		9		(15	)		nm
Other		157		115			152		36.5			3.3			569		743			(23.4	)
Total noninterest income	$	2,156	$	2,177		$	2,329		(1.0	)		(7.4	)	$	8,774	$	9,319			(5.8	)

Noninterest Income

Fourth quarter noninterest income was $2,156 million; $173 million (7.4 percent) lower than the fourth quarter of 2012 and $21 million (1.0 percent) lower than the third quarter of 2013. The year-over-year decrease in noninterest income was principally due to a $245 million (51.5 percent) reduction in mortgage banking revenue due to lower origination and sales revenue. Growth in several fee categories helped to offset the decline in mortgage banking revenue. Credit and debit card revenue increased $21 million (8.7 percent) over the prior year due to higher transaction volumes, including the impact of business expansion. Merchant processing services revenue was $13 million (3.7 percent) higher as a result of an increase in product fees and higher volumes. Trust and investment management fees increased $21 million (7.6 percent) year-over-year, reflecting improved market conditions and business expansion. Deposit service charges were $7 million (4.1 percent) higher as a result of pricing changes and an increase in monthly account fees and account growth. Commercial products revenue increased $17 million (7.5 percent) over the prior year, principally due to higher syndication fees on tax-advantaged projects, while investment products fees

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 12

increased $6 million (15.4 percent) due to higher sales volumes and fees. Offsetting these positive variances was a decline in corporate payment products revenue of $12 million (6.7 percent), the result of lower government-related transactions.

Noninterest income was $21 million (1.0 percent) lower in the fourth quarter of 2013 than the third quarter of 2013, primarily due to a 29.6 percent reduction in mortgage banking revenue, which reflected an unfavorable change in the valuation of mortgage servicing rights (“MSRs”), net of hedging activities, and lower origination and sales revenue. Partially offsetting the decline in mortgage banking revenue linked quarter was growth in credit and debit card revenue, which increased by $19 million (7.8 percent) due to seasonally higher sales volumes. Trust and investment management fees were $17 million (6.1 percent) higher than the prior quarter due to improved market conditions and account growth, including business expansion. Commercial products revenue increased $36 million (17.4 percent), compared with the third quarter, due to higher syndication fees on tax-advantaged projects and an increase in commercial leasing and capital markets revenue. Other revenue was $42 million (36.5 percent) higher on a linked quarter basis, primarily due to higher equity investment and retail lease revenue. Offsetting these positive variances was a decrease in corporate payments products revenue of $26 million (13.5 percent), primarily due to the impact of seasonally higher third quarter government-related transaction volume.

NONINTEREST EXPENSE	Table 7
($ in millions)

	4Q 2013		3Q 2013		4Q 2012		Percent Change 4Q13 vs 3Q13			Percent Change 4Q13 vs 4Q12			Full Year 2013		Full Year 2012		Percent Change
Compensation	$	1,103	$	1,088	$	1,083		1.4			1.8		$	4,371	$	4,320		1.2
Employee benefits		275		278		231		(1.1	)		19.0			1,140		945		20.6
Net occupancy and equipment		240		240		234		—			2.6			949		917		3.5
Professional services		118		94		166		25.5			(28.9	)		381		530		(28.1	)
Marketing and business development		103		85		103		21.2			—			357		388		(8.0	)
Technology and communications		209		214		214		(2.3	)		(2.3	)		848		821		3.3
Postage, printing and supplies		80		76		78		5.3			2.6			310		304		2.0
Other intangibles		56		55		66		1.8			(15.2	)		223		274		(18.6	)
Other		498		435		511		14.5			(2.5	)		1,695		1,957		(13.4	)
Total noninterest expense	$	2,682	$	2,565	$	2,686		4.6			(.1	)	$	10,274	$	10,456		(1.7	)

Noninterest Expense

Noninterest expense in the fourth quarter of 2013 totaled $2,682 million, a decrease of $4 million (.1 percent) from the fourth quarter of 2012, and a $117 million (4.6 percent) increase from the third quarter of

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 13

2013. The slight decrease in total noninterest expense year-over-year was primarily the net result of lower professional services expense due to a reduction in mortgage servicing review-related costs and the positive impact year-over-year in other expense from an $80 million mortgage foreclosure-related settlement accrual in the fourth quarter of 2012, offset by higher tax-advantaged project costs, including the accounting presentation changes in the current quarter, and an increase in employee benefits expense, driven by higher pension costs. In addition, other intangibles expense decreased $10 million (15.2 percent), the result of the reduction or completion of the amortization of certain intangibles, while other expense also benefited from lower loan-related expenses including costs for other real estate owned. Compensation expense was higher by $20 million (1.8 percent), reflecting growth in staffing for business initiatives and the impact of merit increases, partially offset by lower incentive and commission expense. Net occupancy and equipment expense increased $6 million (2.6 percent) due to business initiatives, higher rent expense and maintenance costs.

Noninterest expense increased $117 million (4.6 percent) on a linked quarter basis, driven by higher costs related to tax-advantaged projects, seasonally higher professional services expense and the timing of marketing and business development projects. Compensation expense increased $15 million (1.4 percent) compared with the prior quarter due to staffing increases for business initiatives. Professional services was $24 million (25.5 percent) higher compared with the third quarter of 2013 due to seasonally higher costs across a majority of the lines of business. Marketing and business development expense increased $18 million (21.2 percent) due to the timing of various marketing programs in Payments Services and Consumer and Small Business Banking. Other expense was $63 million (14.5 percent) higher than the third quarter of 2013, principally due to higher costs related to investments in tax-advantaged projects, reflecting higher volume and the accounting presentation changes.

Provision for Income Taxes

The provision for income taxes for the fourth quarter of 2013 resulted in a tax rate on a taxable-equivalent basis of 23.8 percent (effective tax rate of 21.5 percent), reflecting the impact of the accounting presentation changes related to investments in tax-advantaged projects. The tax rates in the fourth quarter of 2012 and third quarter of 2013 were 30.7 percent (effective tax rate of 28.6 percent) and 29.5 percent (effective tax rate of 27.5 percent), respectively.

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 14

ALLOWANCE FOR CREDIT LOSSES	Table 8
($ in millions)

	4Q						3Q						2Q						1Q				4Q
	2013			% (b)			2013			% (b)			2013			% (b)			2013		% (b)		2012			% (b)
Balance, beginning of period	$	4,578					$	4,612					$	4,708					$	4,733			$	4,771
Net charge-offs
Commercial		33			.21			18			.11			34			.22			32		.22		47			.32
Lease financing		3			.23			(7	)		(.53	)		4			.31			3		.23		5			.37
Total commercial		36			.21			11			.06			38			.23			35		.22		52			.32
Commercial mortgages		1			.01			2			.03			8			.10			15		.20		12			.16
Construction and development		(30	)		(1.58	)		(8	)		(.46	)		(25	)		(1.54	)		4		.26		5			.33
Total commercial real estate		(29	)		(.29	)		(6	)		(.06	)		(17	)		(.18	)		19		.21		17			.18
Residential mortgages		49			.38			57			.46			74			.63			92		.83		96			.88
Credit card		163			3.72			160			3.75			173			4.23			160		3.93		161			3.86
Retail leasing		—			—			1			.07			(1	)		(.07	)		1		.07		1			.07
Home equity and second mortgages		37			.95			43			1.09			58			1.45			73		1.80		75			1.76
Other		52			.79			54			.83			48			.76			52		.83		59			.92
Total other retail		89			.75			98			.83			105			.90			126		1.08		135			1.12
Total net charge-offs, excluding covered loans		308			.55			320			.58			373			.70			432		.83		461			.88
Covered loans		4			.18			8			.33			19			.73			1		.04		7			.24
Total net charge-offs		312			.53			328			.57			392			.70			433		.79		468			.85
Provision for credit losses		277						298						362						403				443
Other changes (a)		(6	)					(4	)					(66	)					5				(13	)
Balance, end of period	$	4,537					$	4,578					$	4,612					$	4,708			$	4,733
Components
Allowance for loan losses	$	4,250					$	4,258					$	4,312					$	4,390			$	4,424
Liability for unfunded credit commitments		287						320						300						318				309
Total allowance for credit losses	$	4,537					$	4,578					$	4,612					$	4,708			$	4,733
Gross charge-offs	$	429					$	450					$	506					$	549			$	576
Gross recoveries	$	117					$	122					$	114					$	116			$	108
Allowance for credit losses as a percentage of
Period-end loans, excluding covered loans		1.94						1.99						2.03						2.11				2.15
Nonperforming loans, excluding covered loans		297						294						287						274				269
Nonperforming assets, excluding covered assets		242						235						231						221				218
Period-end loans		1.93						1.98						2.02						2.11				2.12
Nonperforming loans		283						276						269						255				228
Nonperforming assets		223						207						203						196				177

(a) Includes net changes in credit losses to be reimbursed by the FDIC and, beginning in the second quarter of 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.

(b) Annualized and calculated on average loan balances

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 15

Credit Quality

The allowance for credit losses was $4,537 million at December 31, 2013, compared with $4,578 million at September 30, 2013, and $4,733 million at December 31, 2012. Net charge-offs and nonperforming assets declined on a linked quarter and year-over-year basis as economic conditions continued to slowly improve. On a linked quarter basis, net charge-offs decreased $16 million (4.9 percent), and nonperforming assets, excluding covered assets, decreased $67 million (3.6 percent). Total net charge-offs in the fourth quarter of 2013 were $312 million, compared with $328 million in the third quarter of 2013, and $468 million in the fourth quarter of 2012. The decrease in total net charge-offs on a linked quarter basis primarily reflected improvement in the construction and development portfolio, as well as improvement in the residential mortgages and home equity and second mortgages portfolios. The $156 million (33.3 percent) decline in net charge-offs year-over-year was due to improvements in the commercial, commercial real estate, residential mortgages and home equity and second mortgages portfolios. The Company recorded $277 million of provision for credit losses in the current quarter, which was $35 million less than net charge-offs.

Commercial and commercial real estate loan net charge-offs were $7 million (.03 percent of average loans outstanding) in the fourth quarter of 2013, compared with $5 million (.02 percent of average loans outstanding) in the third quarter of 2013, and $69 million (.27 percent of average loans outstanding) in the fourth quarter of 2012.

Residential mortgage loan net charge-offs were $49 million (.38 percent of average loans outstanding) in the fourth quarter of 2013, compared with $57 million (.46 percent of average loans outstanding) in the third quarter of 2013, and $96 million (.88 percent of average loans outstanding) in the fourth quarter of 2012. Credit card loan net charge-offs were $163 million (3.72 percent of average loans outstanding) in the fourth quarter of 2013, compared with $160 million (3.75 percent of average loans outstanding) in the third quarter of 2013, and $161 million (3.86 percent of average loans outstanding) in the fourth quarter of 2012. Total other retail loan net charge-offs were $89 million (.75 percent of average loans outstanding) in the fourth quarter of 2013, compared with $98 million (.83 percent of average loans outstanding) in the third quarter of 2013, and $135 million (1.12 percent of average loans outstanding) in the fourth quarter of 2012.

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 16

The ratio of the allowance for credit losses to period-end loans was 1.93 percent (1.94 percent excluding covered loans) at December 31, 2013, compared with 1.98 percent (1.99 percent excluding covered loans) at September 30, 2013, and 2.12 percent (2.15 percent excluding covered loans) at December 31, 2012. The ratio of the allowance for credit losses to nonperforming loans was 283 percent (297 percent excluding covered loans) at December 31, 2013, compared with 276 percent (294 percent excluding covered loans) at September 30, 2013, and 228 percent (269 percent excluding covered loans) at December 31, 2012.

DELINQUENCY RATIOS	Table 9
(Percent)

	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
	2013		2013		2013		2013		2012
Delinquent loan ratios—90 days or more past due excluding nonperforming loans (a)
Commercial		.08		.07		.09		.09		.09
Commercial real estate		.07		.02		.03		.02		.02
Residential mortgages		.65		.53		.53		.54		.64
Credit card		1.17		1.11		1.10		1.26		1.27
Other retail		.18		.16		.16		.18		.20
Total loans, excluding covered loans		.31		.27		.27		.29		.31
Covered loans		5.63		5.47		5.40		5.18		5.86
Total loans		.51		.48		.49		.52		.59
Delinquent loan ratios—90 days or more past due including nonperforming loans (a)
Commercial		.27		.24		.24		.25		.27
Commercial real estate		.83		.94		1.13		1.38		1.50
Residential mortgages		2.16		1.99		1.96		2.01		2.14
Credit card		1.60		1.66		1.75		2.04		2.12
Other retail		.58		.60		.63		.67		.66
Total loans, excluding covered loans		.97		.94		.97		1.06		1.11
Covered loans		7.13		7.13		7.08		7.13		9.28
Total loans		1.19		1.20		1.24		1.35		1.52

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

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 17

ASSET QUALITY	Table 10
($ in millions)

	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
	2013		2013		2013		2013		2012
Nonperforming loans
Commercial	$	122	$	104	$	91	$	85	$	107
Lease financing		12		12		14		16		16
Total commercial		134		116		105		101		123
Commercial mortgages		182		210		263		289		308
Construction and development		121		146		161		218		238
Total commercial real estate		303		356		424		507		546
Residential mortgages		770		732		685		673		661
Credit card		78		94		109		127		146
Other retail		191		206		222		228		217
Total nonperforming loans, excluding covered loans		1,476		1,504		1,545		1,636		1,693
Covered loans		127		156		168		209		386
Total nonperforming loans		1,603		1,660		1,713		1,845		2,079
Other real estate (a)		327		366		364		379		381
Covered other real estate (a)		97		176		187		168		197
Other nonperforming assets		10		10		12		14		14
Total nonperforming assets (b)	$	2,037	$	2,212	$	2,276	$	2,406	$	2,671
Total nonperforming assets, excluding covered assets	$	1,813	$	1,880	$	1,921	$	2,029	$	2,088
Accruing loans 90 days or more past due, excluding covered loans	$	713	$	591	$	580	$	609	$	660
Accruing loans 90 days or more past due	$	1,189	$	1,105	$	1,119	$	1,165	$	1,323
Performing restructured loans, excluding GNMA and covered loans	$	3,067	$	3,097	$	3,311	$	3,318	$	3,421
Performing restructured GNMA and covered loans	$	2,932	$	2,262	$	2,217	$	2,294	$	2,159
Nonperforming assets to loans plus ORE, excluding covered assets (%)		.80		.85		.88		.95		.98
Nonperforming assets to loans plus ORE (%)		.86		.95		1.00		1.07		1.19

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

(b) Does not include accruing loans 90 days or more past due.

Nonperforming assets at December 31, 2013, totaled $2,037 million, compared with $2,212 million at September 30, 2013, and $2,671 million at December 31, 2012. Total nonperforming assets at December 31, 2013, included $224 million of covered assets. The ratio of nonperforming assets to loans and other real estate was .86 percent (.80 percent excluding covered assets) at December 31, 2013, compared with .95 percent (.85 percent excluding covered assets) at September 30, 2013, and 1.19 percent (.98 percent excluding covered assets) at December 31, 2012. Total commercial nonperforming assets were $18 million

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 18

(15.5 percent) higher on a linked quarter basis and $11 million (8.9 percent) higher year-over-year. Commercial real estate nonperforming assets declined by $53 million (14.9 percent) on a linked quarter basis and $243 million (44.5 percent) year-over-year. Residential mortgage nonperforming assets increased $38 million (5.2 percent) on a linked quarter basis and $109 million (16.5 percent) year-over-year. Credit card nonperforming assets were $16 million (17.0 percent) lower on a linked basis and $68 million (46.6 percent) lower year-over-year. Other retail nonperforming assets decreased $15 million (7.3 percent) on a linked quarter basis and $26 million (12.0 percent) year-over-year.

Accruing loans 90 days or more past due were $1,189 million ($713 million excluding covered loans) at December 31, 2013, compared with the $1,105 million ($591 million excluding covered loans) at September 30, 2013, and the $1,323 million ($660 million excluding covered loans) at December 31, 2012.

CAPITAL POSITION	Table 11
($ in millions)

	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
	2013			2013			2013			2013			2012
Total U.S. Bancorp shareholders’ equity	$	41,113		$	40,132		$	39,683		$	39,531		$	38,998
Tier 1 capital		33,386			32,707			32,219			31,774			31,203
Total risk-based capital		39,340			38,873			38,378			38,099			37,780
Tier 1 capital ratio		11.2	%		11.2	%		11.1	%		11.0	%		10.8	%
Total risk-based capital ratio		13.2			13.3			13.3			13.2			13.1
Leverage ratio		9.6			9.6			9.5			9.3			9.2
Tangible common equity to tangible assets		7.7			7.4			7.5			7.4			7.2
Tangible common equity to risk-weighted assets using Basel I definition		9.1			8.9			8.9			8.8			8.6
Tier 1 common equity to risk-weighted assets using Basel I definition		9.4			9.3			9.2			9.1			9.0
Common equity tier 1 to risk-weighted assets estimated using final rules for the Basel III standardized approach		8.8			8.6			8.6			—			—
Common equity tier 1 to risk-weighted assets approximated using proposed rules for the Basel III standardized approach released June 2012		—			—			8.3			8.2			8.1

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 19

Total U.S. Bancorp shareholders’ equity was $41.1 billion at December 31, 2013, compared with $40.1 billion at September 30, 2013, and $39.0 billion at December 31, 2012. During the fourth quarter, the Company returned 65 percent of fourth quarter earnings to shareholders, including $420 million in common stock dividends and $493 million of repurchased common stock. The tier 1 capital ratio was 11.2 percent at both December 31, 2013, and at September 30, 2013, compared with 10.8 percent at December 31, 2012. The tangible common equity to tangible assets ratio was 7.7 percent at December 31, 2013, compared with 7.4 percent at September 30, 2013, and 7.2 percent at December 31, 2012. The tier 1 common equity to risk-weighted assets ratio was 9.4 percent at December 31, 2013, compared with 9.3 percent at September 30, 2013, and 9.0 percent at December 31, 2012. All regulatory ratios continue to be in excess of “well-capitalized” requirements. The common equity tier 1 to risk-weighted assets ratio estimated using final rules for the Basel III standardized approach was 8.8 percent at December 31, 2013, and 8.6 percent at both September 30, 2013, and at June 30, 2013.

COMMON SHARES	Table 12
(Millions)

	4Q			3Q			2Q			1Q			4Q
	2013			2013			2013			2013			2012
Beginning shares outstanding		1,832			1,844			1,858			1,869			1,880
Shares issued for stock option and stock purchase plans, acquisitions and other corporate purposes		6			5			4			6			2
Shares repurchased		(13	)		(17	)		(18	)		(17	)		(13	)
Ending shares outstanding		1,825			1,832			1,844			1,858			1,869

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 20

LINE OF BUSINESS FINANCIAL PERFORMANCE (a)	Table 13
($ in millions)

	Net Income Attributable												Net Income Attributable
	to U.S. Bancorp						Percent Change						to U.S. Bancorp							4Q 2013
	4Q		3Q		4Q		4Q13 vs			4Q13 vs			Full Year		Full Year		Percent			Earnings
Business Line	2013		2013		2012		3Q13			4Q12			2013		2012		Change			Composition
Wholesale Banking and Commercial Real Estate	$	298	$	330	$	322		(9.7	)		(7.5	)	$	1,285	$	1,307		(1.7	)		20	%
Consumer and Small Business Banking		353		338		278		4.4			27.0			1,353		1,374		(1.5	)		24
Wealth Management and Securities Services		42		33		41		27.3			2.4			156		171		(8.8	)		3
Payment Services		285		318		318		(10.4	)		(10.4	)		1,181		1,265		(6.6	)		20
Treasury and Corporate Support		478		449		461		6.5			3.7			1,861		1,530		21.6			33
Consolidated Company	$	1,456	$	1,468	$	1,420		(.8	)		2.5		$	5,836	$	5,647		3.3			100	%

(a) preliminary data

Lines of Business

The Company’s major lines of business are Wholesale Banking and Commercial Real Estate, Consumer and Small Business Banking, Wealth Management and Securities Services, Payment Services, and Treasury and Corporate Support. These operating segments are components of the Company about which financial information is prepared and is evaluated regularly by management in deciding how to allocate resources and assess performance. Noninterest expenses incurred by centrally managed operations or business lines that directly support another business line’s operations are charged to the applicable business line based on its utilization of those services, primarily measured by the volume of customer activities, number of employees or other relevant factors. These allocated expenses are reported as net shared services expense within noninterest expense. Designations, assignments and allocations change from time to time as management 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, prior period results were restated and presented on a comparable basis.

Wholesale Banking and Commercial Real Estate offers lending, equipment finance and small-ticket leasing, depository services, treasury management, capital markets, international trade services and other financial services to middle market, large corporate, commercial real estate, financial institution, non-profit

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 21

and public sector clients. Wholesale Banking and Commercial Real Estate contributed $298 million of the Company’s net income in the fourth quarter of 2013, compared with $322 million in the fourth quarter of 2012 and $330 million in the third quarter of 2013. Wholesale Banking and Commercial Real Estate’s net income decreased $24 million (7.5 percent) from the same quarter of 2012 due to a higher provision for credit losses and a decrease in total net revenue, partially offset by a reduction in total noninterest expense. Total net revenue declined by $19 million (2.3 percent), as a 9.9 percent decrease in total noninterest income was partially offset by a 2.1 percent increase in net interest income. Net interest income increased $11 million (2.1 percent) year-over-year, primarily due to higher average loan and deposit balances, partially offset by lower rates on loans and the impact of lower rates on the margin benefit from deposits. Total noninterest income decreased by $30 million (9.9 percent), driven by lower commercial products revenue, including standby letters of credit fees, foreign exchange revenue and other loan-related fees. In addition, equity investment revenue was lower year-over-year. Total noninterest expense decreased by $6 million (1.9 percent) from a year ago, primarily due to lower costs related to other real estate owned and commercial leasing, as well as a decrease in other intangibles expense. The provision for credit losses was $24 million higher year-over-year due to an unfavorable change in the reserve allocation, driven by higher portfolio volume, partially offset by lower net charge-offs.

Wholesale Banking and Commercial Real Estate’s contribution to net income in the fourth quarter of 2013 was $32 million (9.7 percent) lower than the third quarter of 2013, mainly due to an increase in the provision for credit losses. Total net revenue increased by $12 million (1.5 percent) over the prior quarter. Net interest income increased by $5 million (1.0 percent) on a linked quarter basis, primarily due to increases in average loan and deposit balances, partially offset by lower loan rates and the impact of lower rates on the margin benefit from deposits. Total noninterest income increased by $7 million (2.6 percent), driven by higher commercial products revenue, including an increase in commercial leasing and capital markets revenue, partially offset by lower treasury management fees due to seasonally higher volumes in the prior quarter. Total noninterest expense was relatively flat, increasing $1 million (.3 percent), as higher marketing and business development expense was offset by lower net shared services costs. The provision for credit losses increased by $61 million due to higher net charge-offs and an unfavorable change in the reserve allocation.

Consumer and Small Business Banking delivers products and services through banking offices, telephone servicing and sales, on-line services, direct mail, ATM processing and over mobile devices, such as mobile phones and tablet computers. It encompasses community banking, metropolitan banking, in-store

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 22

banking, small business banking, consumer lending, mortgage banking, workplace banking, student banking and 24-hour banking. Consumer and Small Business Banking contributed $353 million of the Company’s net income in the fourth quarter of 2013, a $75 million (27.0 percent) increase over the fourth quarter of 2012 and a $15 million (4.4 percent) increase over the prior quarter. Within Consumer and Small Business Banking, the retail banking division reported a $166 million increase in its contribution over the same quarter of last year, principally due to a reduction in the provision for credit losses. Retail banking’s total net revenue was 1.0 percent lower than the fourth quarter of 2012. Net interest income decreased 2.0 percent, primarily due to the impact of lower rates on the margin benefit from deposits, partially offset by higher average loan and deposit balances and loan fees. Total noninterest income for the retail banking division increased 1.5 percent over a year ago, principally due to higher deposit service charges, the result of pricing changes and increased monthly account fees and account growth, and retail lease revenue, partially offset by a decrease in ATM processing services revenue due to lower volumes. Total noninterest expense for the retail banking division in the fourth quarter of 2013 decreased .5 percent from the same quarter of the prior year, largely due to reductions in FDIC insurance expense, other intangibles expense, technology and communications expense and costs associated with other real estate owned, partially offset by higher net shared services expense. The provision for credit losses for the retail banking division decreased $272 million on a year-over-year basis due to a favorable change in the reserve allocation related to home equity loans and lower net charge-offs. The contribution of the mortgage banking division was lower by 49.7 percent than the fourth quarter of 2012, reflecting a decrease in total net revenue, partially offset by a reduction in total noninterest expense. The division’s 42.4 percent decrease in total net revenue was due to a 51.7 percent decrease in total noninterest income, driven by lower mortgage origination and sales revenue, as well as an 18.8 percent decrease in net interest income, primarily the result of lower average loans held for sale. Total noninterest expense was 42.2 percent lower than the prior year, reflecting a reduction in mortgage servicing review-related professional services costs and lower compensation costs. The provision for credit losses for the mortgage banking division increased by $12 million (48.0 percent) due to an unfavorable change in the reserve allocation, partially offset by lower net charge-offs.

Consumer and Small Business Banking’s contribution in the fourth quarter of 2013 was $15 million (4.4 percent) higher than the third quarter of 2013, driven by a lower provision for credit losses, partially offset by a decrease in total net revenue. Within Consumer and Small Business Banking, the retail banking division’s contribution increased 40.3 percent, mainly due to a decrease in the provision for credit losses. Total net revenue for the retail banking division increased .4 percent over the previous quarter. Net interest

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 23

income was flat, as increases in average loan and deposits balances were offset by the impact of lower rates on the margin benefit from deposits. Total noninterest income was 1.5 percent higher on a linked quarter basis, driven by higher retail lease revenue. Total noninterest expense for the retail banking division was .8 percent higher on a linked quarter basis, as increases in compensation, marketing and net occupancy and equipment expense were partially offset by lower net shared services expense. The provision for credit losses decreased $120 million on a linked quarter basis due to a favorable change in the reserve allocation and lower net charge-offs. The contribution of the mortgage banking division decreased 39.5 percent from the third quarter of 2013 due to lower total net revenue, partially offset by a decline in total noninterest expense and a lower provision for credit losses. Total net revenue decreased 22.7 percent due to an 8.5 percent decline in net interest income, the result of lower average loans held for sale, and a 29.9 percent decrease in total noninterest income, primarily due to a reduction in mortgage banking revenue, the result of an unfavorable change in the valuation of MSRs, net of hedging activities, and lower origination and sales revenue. Total noninterest expense decreased 2.5 percent, reflecting lower compensation, employee benefits and net shared services costs, partially offset by higher professional services expense. The mortgage banking division’s provision for credit losses decreased $11 million (22.9 percent) on a linked quarter basis, due to lower net charge-offs and a favorable change in the reserve allocation.

Wealth Management and Securities Services provides private banking, financial advisory services, investment management, retail brokerage services, insurance, trust, custody and fund servicing through five businesses: Wealth Management, Corporate Trust Services, U.S. Bancorp Asset Management, Institutional Trust & Custody and Fund Services. Wealth Management and Securities Services contributed $42 million of the Company’s net income in the fourth quarter of 2013, compared with $41 million in the fourth quarter of 2012 and $33 million in the third quarter of 2013. The business line’s contribution was $1 million (2.4 percent) higher than the same quarter of 2012, as an increase in total net revenue and a lower provision for credit losses were offset by higher total noninterest expense. Total net revenue increased by $28 million (7.3 percent) year-over-year, driven by a $30 million (10.2 percent) increase in total noninterest income, reflecting the impact of improved market conditions, business expansion and higher investment products fees. Net interest income decreased $2 million (2.2 percent), principally due to the impact of lower rates on the margin benefit from deposits, partially offset by higher average loan and deposit balances. Total noninterest expense increased by $36 million (11.5 percent) as a result of higher compensation and employee benefits expense and an increase in net shared services costs, including the impact of business expansion.

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 24

The provision for credit losses decreased $10 million from the prior year due to lower net charge-offs and a favorable change in the reserve allocation.

The business line’s contribution in the fourth quarter of 2013 was $9 million (27.3 percent) higher than the prior quarter. Total net revenue increased by $23 million (5.9 percent) on a linked quarter basis, reflecting an increase in net interest income (4.7 percent), principally due to higher average deposit balances, and an increase in total noninterest income (6.2 percent), reflecting higher trust and investment management fees, mainly due to improved market conditions and account growth, including business expansion. Total noninterest expense increased $16 million (4.8 percent), primarily as a result of higher compensation expense and professional services costs. The provision for credit losses decreased $7 million on a linked quarter basis due to a favorable change in the reserve allocation and lower net charge-offs.

Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate and purchasing card services, consumer lines of credit and merchant processing. Payment Services contributed $285 million of the Company’s net income in the fourth quarter of 2013, compared with $318 million in both the fourth quarter of 2012 and third quarter of 2013. The $33 million (10.4 percent) reduction in the business line’s contribution from the prior year was driven by increases in the provision for credit losses and total noninterest expense, partially off by an increase in total net revenue. Total net revenue increased by $37 million (3.1 percent) year-over-year. Net interest income increased by $22 million (5.6 percent), primarily due to higher average loan balances, improved loan rates and lower rebate costs on the Company’s government card program. Total noninterest income was $15 million (1.9 percent) higher year-over-year, reflecting higher credit and debit card revenue on higher transaction volumes, including the impact of business expansion, and merchant processing services revenue, the result of an increase in product fees and higher volumes, partially offset by a decrease in corporate payment products revenue, due to lower government-related transactions. Total noninterest expense increased by $18 million (3.4 percent) over the fourth quarter of 2012, primarily due to higher compensation, employee benefits and net shared services expense, including the impact of business expansion, partially offset by reductions in technology and communications expense, marketing costs and other intangibles expense. The provision for credit losses increased by $67 million (45.0 percent) due to an unfavorable change in the reserve allocation.

Payment Services’ contribution in the fourth quarter of 2013 declined $33 million (10.4 percent), from the third quarter of 2013. Total net revenue increased $9 million (.7 percent) on a linked quarter basis. Net interest income increased by $23 million (5.9 percent) due to higher average loan balances and seasonally lower rebate costs on the Company’s government card program. Total noninterest income declined by $14

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 25

million (1.7 percent), reflecting lower corporate payment products revenue due to seasonally lower government-related transaction volumes, partially offset by an increase in credit and debit card revenue due to higher volumes. Total noninterest expense increased by $16 million (3.0 percent) due to higher compensation expense, as well as the timing of marketing programs and professional services costs, partially offset by lower outside data processing expense. The provision for credit losses was $44 million (25.6 percent) higher on a linked quarter basis due to an unfavorable change in the reserve allocation and an increase in net charge-offs.

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 $478 million in the fourth quarter of 2013, compared with net income of $461 million in the fourth quarter of 2012 and net income of $449 million in the third quarter of 2013. Net interest income decreased by $26 million (4.4 percent) from the fourth quarter of 2012, principally due to lower rates on loans and investment securities, partially offset by lower funding costs. Total noninterest income increased by $49 million (67.1 percent) over the fourth quarter of last year, driven by higher equity investment and commercial products revenue, including an increase in syndication fees on tax-advantaged projects. Total noninterest expense increased by $97 million (46.4 percent), principally reflecting an increase in compensation and employee benefits expense and costs related to investments in tax-advantaged projects, partially offset by lower net shared services costs and other real estate owned-related expense. The provision for credit losses was $13 million higher year-over-year, due to an unfavorable change in the reserve allocation, partially offset by a decrease in net charge-offs.

Net income in the fourth quarter of 2013 was $29 million (6.5 percent) higher on a linked quarter basis, reflecting higher total net revenue, partially offset by an increase in the provision for credit losses. Total net revenue was $59 million (9.3 percent) higher than the prior quarter, driven by higher equity investment and commercial products revenue, mainly due to an increase in syndication fees on tax-advantaged projects. An $81 million (36.0 percent) increase in total noninterest expense primarily reflected higher costs related to investments in tax-advantaged projects and an increase in net shared services expense. The provision for credit losses was $12 million higher compared with the third quarter of 2013, due to an unfavorable change in the reserve allocation, partially offset by a decrease in net charge-offs.

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 26

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

On Wednesday, January 22, 2014, at 8:00 a.m. (CST) Richard K. Davis, chairman, president and chief executive officer, and Andrew Cecere, vice chairman and chief financial officer, will host a conference call to review the financial results. The conference call will be available by telephone or on the Internet. A presentation will be used during the call and will be available on the Company’s website at www.usbank.com. To access the conference call from locations within the United States and Canada, please dial 866-316-1409. Participants calling from outside the United States and Canada, please dial 706-634-9086. The conference ID number for all participants is 13771672. For those unable to participate during the live call, a recording of the call will be available approximately two hours after the conference call ends on Wednesday, January 22nd, and will run through Wednesday, January 29th, at 11:00 p.m. (CST). To access the recorded message within the United States and Canada, dial 855-859-2056. If calling from outside the United States and Canada, please dial 404-537-3406 to access the recording. The conference ID is 13771672. To access the webcast and presentation go to www.usbank.com and click on “About U.S. Bank.” The “Webcasts & Presentations” link can be found under the Investor/Shareholder information heading, which is at the left side of the bottom of the page.

Minneapolis-based U.S. Bancorp (“USB”), with $364 billion in assets as of December 31, 2013, is the parent company of U.S. Bank National Association, the 5th largest commercial bank in the United States. The Company operates 3,081 banking offices in 25 states and 4,906 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at usbank.com.

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 27

Forward-Looking Statements

The following information appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date 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.

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U.S. Bancorp Reports Fourth Quarter 2013 Results

January 22, 2014

Page 28

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 final rules for the Basel III standardized approach, 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.

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

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U.S. Bancorp

Consolidated Statement of Income

	Three Months Ended					Year Ended
(Dollars and Shares in Millions, Except Per Share Data)	December 31,					December 31,
(Unaudited)	2013			2012		2013		2012
Interest Income
Loans	$	2,595		$	2,639	$	10,277	$	10,558
Loans held for sale		31			74		203		282
Investment securities		409			416		1,631		1,792
Other interest income		33			67		174		251
Total interest income		3,068			3,196		12,285		12,883
Interest Expense
Deposits		128			161		561		691
Short-term borrowings		83			89		353		442
Long-term debt		180			219		767		1,005
Total interest expense		391			469		1,681		2,138
Net interest income		2,677			2,727		10,604		10,745
Provision for credit losses		277			443		1,340		1,882
Net interest income after provision for credit losses		2,400			2,284		9,264		8,863
Noninterest Income
Credit and debit card revenue		263			242		965		892
Corporate payment products revenue		166			178		706		744
Merchant processing services		367			354		1,458		1,395
ATM processing services		79			83		327		346
Trust and investment management fees		297			276		1,139		1,055
Deposit service charges		177			170		670		653
Treasury management fees		130			130		538		541
Commercial products revenue		243			226		859		878
Mortgage banking revenue		231			476		1,356		1,937
Investment products fees		45			39		178		150
Securities gains (losses), net		1			3		9		(15	)
Other		157			152		569		743
Total noninterest income		2,156			2,329		8,774		9,319
Noninterest Expense
Compensation		1,103			1,083		4,371		4,320
Employee benefits		275			231		1,140		945
Net occupancy and equipment		240			234		949		917
Professional services		118			166		381		530
Marketing and business development		103			103		357		388
Technology and communications		209			214		848		821
Postage, printing and supplies		80			78		310		304
Other intangibles		56			66		223		274
Other		498			511		1,695		1,957
Total noninterest expense		2,682			2,686		10,274		10,456
Income before income taxes		1,874			1,927		7,764		7,726
Applicable income taxes		403			552		2,032		2,236
Net income		1,471			1,375		5,732		5,490
Net (income) loss attributable to noncontrolling interests		(15	)		45		104		157
Net income attributable to U.S. Bancorp	$	1,456		$	1,420	$	5,836	$	5,647
Net income applicable to U.S. Bancorp common shareholders	$	1,389		$	1,349	$	5,552	$	5,383
Earnings per common share	$	.76		$	.72	$	3.02	$	2.85
Diluted earnings per common share	$	.76		$	.72	$	3.00	$	2.84
Dividends declared per common share	$	.230		$	.195	$	.885	$	.780
Average common shares outstanding		1,821			1,872		1,839		1,887
Average diluted common shares outstanding		1,832			1,880		1,849		1,896

Page 29

U.S. Bancorp

Consolidated Ending Balance Sheet

	December 31,			December 31,
(Dollars in Millions)	2013			2012
Assets
Cash and due from banks	$	8,477		$	8,252
Investment securities
Held-to-maturity		38,920			34,389
Available-for-sale		40,935			40,139
Loans held for sale		3,268			7,976
Loans
Commercial		70,033			66,223
Commercial real estate		39,885			36,953
Residential mortgages		51,156			44,018
Credit card		18,021			17,115
Other retail		47,678			47,712
Total loans, excluding covered loans		226,773			212,021
Covered loans		8,462			11,308
Total loans		235,235			223,329
Less allowance for loan losses		(4,250	)		(4,424	)
Net loans		230,985			218,905
Premises and equipment		2,606			2,670
Goodwill		9,205			9,143
Other intangible assets		3,529			2,706
Other assets		26,096			29,675
Total assets	$	364,021		$	353,855
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing	$	76,941		$	74,172
Interest-bearing		156,165			145,972
Time deposits greater than $100,000		29,017			29,039
Total deposits		262,123			249,183
Short-term borrowings		27,608			26,302
Long-term debt		20,049			25,516
Other liabilities		12,434			12,587
Total liabilities		322,214			313,588
Shareholders’ equity
Preferred stock		4,756			4,769
Common stock		21			21
Capital surplus		8,216			8,201
Retained earnings		38,667			34,720
Less treasury stock		(9,476	)		(7,790	)
Accumulated other comprehensive income (loss)		(1,071	)		(923	)
Total U.S. Bancorp shareholders’ equity		41,113			38,998
Noncontrolling interests		694			1,269
Total equity		41,807			40,267
Total liabilities and equity	$	364,021		$	353,855

Page 30

U.S. Bancorp

Non-GAAP Financial Measures

	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in Millions, Unaudited)	2013			2013			2013			2013			2012
Total equity	$	41,807		$	41,552		$	41,050		$	40,847		$	40,267
Preferred stock		(4,756	)		(4,756	)		(4,756	)		(4,769	)		(4,769	)
Noncontrolling interests		(694	)		(1,420	)		(1,367	)		(1,316	)		(1,269	)
Goodwill (net of deferred tax liability)		(8,343	)		(8,319	)		(8,317	)		(8,333	)		(8,351	)
Intangible assets, other than mortgage servicing rights		(849	)		(878	)		(910	)		(963	)		(1,006	)
Tangible common equity (a)		27,165			26,179			25,700			25,466			24,872
Tier 1 capital, determined in accordance with prescribed regulatory requirements using Basel I definition		33,386			32,707			32,219			31,774			31,203
Preferred stock		(4,756	)		(4,756	)		(4,756	)		(4,769	)		(4,769	)
Noncontrolling interests, less preferred stock not eligible for Tier 1 capital		(688	)		(686	)		(685	)		(684	)		(685	)
Tier 1 common equity using Basel I definition (b)		27,942			27,265			26,778			26,321			25,749
Tangible common equity (as calculated above)		27,165			26,179			25,700
Adjustments (1)		224			258			195
Common equity tier 1 estimated using final rules for the Basel III standardized approach (c)		27,389			26,437			25,895
Tangible common equity (as calculated above)								25,700			25,466			24,872
Adjustments (2)								(43	)		81			126
Common equity tier 1 approximated using proposed rules for the Basel III standardized approach released June 2012 (d)								25,657			25,547			24,998
Total assets		364,021			360,681			353,415			355,447			353,855
Goodwill (net of deferred tax liability)		(8,343	)		(8,319	)		(8,317	)		(8,333	)		(8,351	)
Intangible assets, other than mortgage servicing rights		(849	)		(878	)		(910	)		(963	)		(1,006	)
Tangible assets (e)		354,829			351,484			344,188			346,151			344,498
Risk-weighted assets, determined in accordance with prescribed regulatory requirements using Basel I definition (f)		297,919	*		293,155			289,613
Adjustments (3)		13,712	*		13,473			12,476
Risk-weighted assets estimated using final rules for the Basel III standardized approach (g)		311,631	*		306,628			302,089
Risk-weighted assets, determined in accordance with prescribed regulatory requirements using Basel I definition (f)								289,613			289,672			287,611
Adjustments (4)								20,866			21,021			21,233
Risk-weighted assets approximated using proposed rules for the Basel III standardized approach released June 2012 (h)								310,479			310,693			308,844
Ratios *
Tangible common equity to tangible assets (a)/(e)		7.7	%		7.4	%		7.5	%		7.4	%		7.2	%
Tangible common equity to risk-weighted assets using Basel I definition (a)/(f)		9.1			8.9			8.9			8.8			8.6
Tier 1 common equity to risk-weighted assets using Basel I definition (b)/(f)		9.4			9.3			9.2			9.1			9.0
Common equity tier 1 to risk-weighted assets estimated using final rules for the Basel III standardized approach (c)/(g)		8.8			8.6			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)		—			—			8.3			8.2			8.1

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

(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.

Page 31

EX-99.2

January 22, 2014

Richard K. Davis

Chairman, President and CEO  

Andy Cecere

Vice Chairman and CFO  

Exhibit 99.2

U.S. Bancorp

4Q13 Earnings

Conference Call

U.S. Bancorp

4Q13 Earnings

Conference Call

2

Forward-looking Statements and Additional Information

The following information appears in accordance with the Private Securities Litigation Reform Act of 1995: 

This presentation contains forward-looking statements about U.S. Bancorp.  Statements that are not historical or current facts, including

statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and

estimates made by, management as of the date made.  These forward-looking statements cover, among other things, anticipated future

revenue and expenses and the future plans and prospects of U.S. Bancorp.  Forward-looking statements involve inherent risks and

uncertainties, and important factors could cause actual results to differ materially from those anticipated.  Global and domestic economies could

fail to recover from the recent economic downturn or could experience another severe contraction, which could adversely affect U.S. Bancorp’s

revenues and the values of its assets and liabilities.  Global financial markets could experience a recurrence of significant turbulence, which

could reduce the availability of funding to certain financial institutions and lead to a tightening of credit, a reduction of business activity, and

increased market volatility.  Continued stress in the commercial real estate markets, as well as a delay or failure of recovery in the residential

real estate markets, could cause additional credit losses and deterioration in asset values.  In addition, U.S. Bancorp’s business and financial

performance is likely to be negatively impacted by 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. Forward-looking statements speak only as of the date they are made,

and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.

This presentation includes non-GAAP financial measures to describe U.S. Bancorp’s performance.  The reconciliations of those measures to

GAAP measures are provided within or in the appendix of the presentation.  These disclosures should not be viewed as a substitute for

operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be

presented by other companies.

2013 Full Year Highlights

Record net income of $5.8 billion; $3.00 per diluted common share

Industry-leading profitability measures, including ROA of 1.65%, ROCE of 15.8%

and efficiency ratio of 52.4%

Average loan growth of 5.6% vs. 2012 and average deposit growth of 6.3%

vs. 2012

Net charge-offs declined 30.1% vs. 2012

Nonperforming assets declined 23.7% vs. 2012 (13.2% excluding covered assets)

Capital generation continues to reinforce capital position

•

Tier 1 common equity ratio of 9.4% vs. 9.0% in 2012

•

Repurchased 65 million shares of common stock during 2013

•

In

total,

returned

$4.0

billion,

or

71%,

of

our

earnings

in

2013

to

shareholders

3

4Q13 Earnings

Conference Call

4

4Q13 Earnings

Conference Call

4Q13 Highlights

Net income of $1.5 billion; $0.76 per diluted common share

Average loan growth of 5.7% vs. 4Q12 and average loan growth of 1.5%

vs. 3Q13

Strong average deposit growth of 5.4% vs. 4Q12 and 1.8% vs. 3Q13

Net charge-offs declined 4.9% vs. 3Q13

Nonperforming assets declined 7.9% vs. 3Q13 (3.6% excluding covered assets)

Capital generation continues to reinforce capital position

•

Common equity tier 1 ratio of 8.8% estimated using final rules for the Basel III

standardized approach

•

Tier 1 common equity ratio of 9.4%; Tier 1 capital ratio of 11.2%

Returned 65% of earnings to shareholders in 4Q13

•

Repurchased 13 million shares of common stock during 4Q13

5

4Q13 Earnings

Conference Call

Performance Ratios

Return on Average Common Equity

and Return on Average Assets

Efficiency Ratio and

Net Interest Margin

Return on Avg Common Equity

Return on Avg Assets

Efficiency Ratio

Net Interest Margin

15.6%

16.0%

16.1%

15.8%

15.4%

1.62%

1.65%

1.70%

1.65%

1.62%

1.0%

1.5%

2.0%

2.5%

3.0%

8%

11%

14%

17%

20%

4Q12

1Q13

2Q13

3Q13

4Q13

52.6%

50.7%

51.7%

52.4%

54.9%

3.55%

3.48%

3.43%

3.43%

3.40%

2.0%

2.5%

3.0%

3.5%

4.0%

45%

50%

55%

60%

65%

4Q12

1Q13

2Q13

3Q13

4Q13

Efficiency ratio computed as noninterest expense divided by the sum of net interest income on a taxable-equivalent

basis and noninterest income excluding securities gains (losses) net

6

4Q13 Earnings

Conference Call

Taxable-equivalent basis

Revenue Growth

Year-Over-Year Growth

0.2%

(1.1%)

(2.4%)

(5.6%)

(4.4%)

$ in millions

$5,112

$4,874

$4,948

$4,891

$4,889

3,500

4,000

4,500

5,000

5,500

4Q12

1Q13

2Q13

3Q13

4Q13

Loan and Deposit Growth

Average Balances

Year-Over-Year Growth

$ in billions

5.7%

$229.4

5.7%

$232.8

6.4%

$220.3

5.8%

$222.4

5.2%

$225.2

5.5%

$252.4

5.4%

$256.9

9.2%

$243.8

7.3%

$245.0

7.0%

$247.4

260.0

240.0

220.0

200.0

180.0

4Q12

1Q13

2Q13

3Q13

4Q13

Loans

Deposits

7

4Q13 Earnings

Conference Call

8

4Q13 Earnings

Conference Call

Credit Quality

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

Net Charge-offs

Nonperforming Assets*

$ in millions

Net Charge-offs (Left Scale)

NCOs to Avg Loans (Right Scale)

Nonperforming Assets (Left Scale)

NPAs to Loans plus ORE (Right Scale)

$468

$433

$392

$328

$312

0.85%

0.79%

0.70%

0.57%

0.53%

0.00%

0.75%

1.50%

2.25%

3.00%

0

200

400

600

800

4Q12

1Q13

2Q13

3Q13

4Q13

$2,088

$2,029

$1,921

$1,880

$1,813

0.98%

0.95%

0.88%

0.85%

0.80%

0.00%

0.75%

1.50%

2.25%

3.00%

0

800

1,600

2,400

3,200

4Q12

1Q13

2Q13

3Q13

4Q13

9

4Q13 Earnings

Conference Call

Earnings Summary

$ in millions, except per-share data

Taxable-equivalent basis

Full Year

Full Year

4Q13

3Q13

4Q12

vs 3Q13

vs 4Q12

2013

2012

% B/(W)

Net Interest Income

2,733

$   

2,714

$   

2,783

$   

0.7

(1.8)

10,828

$

10,969

$

(1.3)

Noninterest Income

2,156

2,177

2,329

(1.0)

(7.4)

8,774

9,319

(5.8)

Total Revenue

4,889

4,891

5,112

(0.0)

(4.4)

19,602

20,288

(3.4)

Noninterest Expense

2,682

2,565

2,686

(4.6)

0.1

10,274

10,456

1.7

Operating Income

2,207

2,326

2,426

(5.1)

(9.0)

9,328

9,832

(5.1)

Net Charge-offs

312

328

468

4.9

33.3

1,465

2,097

30.1

Excess Provision

(35)

(30)

(25)

--

--

(125)

(215)

--

Income before Taxes

1,930

2,028

1,983

(4.8)

(2.7)

7,988

7,950

0.5

Applicable Income Taxes

459

598

608

23.2

24.5

2,256

2,460

8.3

Noncontrolling Interests

(15)

38

45

--

--

104

157

(33.8)

Net Income

1,456

1,468

1,420

(0.8)

2.5

5,836

5,647

3.3

Preferred Dividends/Other

67

68

71

1.5

5.6

284

264

(7.6)

NI to Common

1,389

$   

1,400

$   

1,349

$   

(0.8)

3.0

5,552

$   

5,383

$   

3.1

Diluted EPS

0.76

$     

0.76

$     

0.72

$     

-

5.6

3.00

$     

2.84

$     

5.6

Average Diluted Shares

1,832

1,843

1,880

0.6

2.6

1,849

1,896

2.5

% B/(W)

10

4Q13 Earnings

Conference Call

4Q13 Results -

Key Drivers

vs. 4Q12

Net Revenue decline of 4.4%

•

Net interest income decline of 1.8%;

net interest margin of 3.40% vs. 3.55% in 4Q12

•

Noninterest income decline of 7.4%

Noninterest expense decline of 0.1%

Provision for credit losses lower by $166 million

•

Net charge-offs lower by $156 million

•

Provision lower than NCOs by $35 million vs. $25 million in 4Q12

vs. 3Q13

Net Revenue flat

•

Net

interest

income

growth

of

0.7%;

net

interest

margin

of

3.40%

vs.

3.43%

in

3Q13

•

Noninterest income decline of 1.0%

Noninterest expense increase of 4.6%

Provision for credit losses lower by $21 million

•

Net charge-offs lower by $16 million

•

Provision lower than NCOs by $35 million vs. $30 million in 3Q13

4Q13

4Q13

B/(W)

vs. 3Q13

vs. 4Q12

Noninterest

Expense -

Other

(31.0)

$

(53.0)

$

Income Taxes

84.0

106.0

Noncontrolling Interests

(53.0)

(53.0)

Total

0.0

$    

0.0

$    

Impact of Accounting Presentation Changes Related

to Investments in Tax-Advantaged Projects ($ in millions)

11

4Q13 Earnings

Conference Call

Capital Position

$ in billions

RWA = risk-weighted assets

4Q13

3Q13

2Q13

1Q13

4Q12

Shareholders' equity

41.1

$   

40.1

$   

39.7

$   

39.5

$   

39.0

$   

Tier 1 capital

33.4

32.7

32.2

31.8

31.2

Total risk-based capital

39.3

38.9

38.4

38.1

37.8

Tier 1 common equity ratio

9.4%

9.3%

9.2%

9.1%

9.0%

Tier 1 capital ratio

11.2%

11.2%

11.1%

11.0%

10.8%

Total risk-based capital ratio

13.2%

13.3%

13.3%

13.2%

13.1%

Leverage ratio

9.6%

9.6%

9.5%

9.3%

9.2%

Tangible common equity ratio

7.7%

7.4%

7.5%

7.4%

7.2%

Tangible common equity as a % of RWA

9.1%

8.9%

8.9%

8.8%

8.6%

Basel

III

Common equity tier 1 to risk-weighted assets

estimated using final rules for the Basel III

standardized approach

8.8%

8.6%

8.6%

-

-

Common equity tier 1 to risk-weighted assets

approximated using proposed rules for the Basel III

standardized approach released June 2012

-

-

8.3%

8.2%

8.1%

12

4Q13 Earnings

Conference Call

Mortgage Repurchase

Mortgages Repurchased and Make-whole Payments

Mortgage Representation and Warranties Reserve

$ in millions

4Q13

3Q13

2Q13

1Q13

4Q12

Beginning Reserve

$176

$190

$233

$240

$220

Net Realized Losses

(63)

(13)

(16)

(23)

(32)

Change in Reserve

(30)

(1)

(27)

16

52

Ending Reserve

$83

$176

$190

$233

$240

Mortgages

repurchased

and make-whole

payments

$32

$42

$41

$79

$57

Repurchase activity lower than

peers due to:

•

Conservative credit and

underwriting culture

•

Disciplined origination process -

primarily conforming loans              

(

95% sold to GSEs)

Do not participate in private

placement securitization market

Outstanding repurchase and

make-whole requests balance      

= $89 million

13

4Q13 Earnings

Conference Call

14

4Q13 Earnings

Conference Call

Appendix

Covered

Commercial

CRE

Res Mtg

Credit

Card

Retail

Average Loans

Average Loans

Key Points

$ in billions

vs. 4Q12

Average total loans grew by $12.5 billion, or 5.7%

Average total loans, excluding covered loans,

were higher by 7.3%

Average total commercial loans increased $5.0

billion, or 7.8%; average commercial real estate

loans increased $2.5 billion, or 6.7%; average

residential mortgage loans increased $7.6 billion,

or 17.6%

vs. 3Q13

Average total loans grew by $3.4 billion, or 1.5%

Average total loans, excluding covered loans,

were higher by 1.9%

Average total commercial loans increased $0.9

billion, or 1.3%; average commercial real estate

loans increased $0.8 billion, or 2.1%; average

residential mortgage loans increased $1.6 billion,

or 3.2%

Year-Over-Year Growth

6.4%

5.8%

5.2%

5.7%

5.7%

Covered

Commercial

CRE

Res Mtg

Retail

Credit Card

$220.3

$222.4

$225.2

$229.4

$232.8

15

4Q13 Earnings

Conference Call

(0.8%)

(1.4%)

(2.2%)

(2.1%)

(1.1%)

1.9%

(1.5%)

(1.7%)

2.3%

4.7%

19.0%

19.2%

19.7%

17.6%

2.9%

3.4%

3.7%

5.1%

6.7%

15.7%

14.3%

11.2%

9.4%

7.8%

4Q12

1Q13

2Q13

3Q13

4Q13

19.9%

280

210

140

70

0

16

4Q13 Earnings

Conference Call

8.8%

7.6%

(4.3%)

(5.7%)

(8.0%)

9.6%

15.6%

24.5%

17.8%

16.2%

4.7%

4.6%

6.4%

10.1%

9.2%

14.2%

4.4%

3.6%

0.2%

2.5%

0

80

160

240

320

4Q12

1Q13

2Q13

3Q13

4Q13

Time

Money

Market

Checking

& Savings

Noninterest

-bearing

Average Deposits

Average Deposits

Key Points

$ in billions

vs. 4Q12

Average total deposits increased by $13.1

billion, or 5.4%

Average low cost deposits (NIB, interest

checking, money market and savings) 

increased by $16.8 billion, or 8.5%

vs. 3Q13

Average total deposits increased by $4.5

billion, or 1.8%

Average low cost deposits increased by $9.8

billion, or 4.8%

Year-Over-Year Growth

9.2%

7.3%

7.0%

5.5%

5.4%

Time

Money Market

Checking and Savings

Noninterest-bearing

$243.8

$245.0

$247.4

$252.4

$256.9

17

4Q13 Earnings

Conference Call

Net Interest Income

Net Interest Income

Key Points

$ in millions

Taxable-equivalent basis

vs. 4Q12

Average earning assets grew by $7.3 billion,

or 2.3%

Net interest margin lower by 15 bps (3.40%

vs. 3.55%) driven by:

•

Lower reinvestment rates on investment securities,

as well as growth in the portfolio, and lower rates

on loans

•

Partially offset by lower rates on deposits and a

reduction in higher cost long-term debt

vs. 3Q13

Average earning assets grew by $4.5 billion,

or 1.4%

Net interest margin lower by 3 bps (3.40% vs.

3.43%) driven by:

•

Growth in lower rate investment securities

•

Higher cash balances at the Federal Reserve

Year-Over-Year Growth

4.1%

0.7%

(1.5%)

(2.5%)

(1.8%)

$2,783

$2,709

$2,672

$2,714

$2,733

3.55%

3.48%

3.43%

3.43%

3.40%

0.0%

2.0%

4.0%

6.0%

8.0%

0

1,000

2,000

3,000

4,000

4Q12

1Q13

2Q13

3Q13

4Q13

Net Interest Income

Net Interest Margin

18

4Q13 Earnings

Conference Call

Noninterest Income

Noninterest Income

Key Points

$ in millions

Payments = credit and debit card revenue, corporate payment products revenue and merchant processing;

Service charges = deposit service charges, treasury management fees and ATM processing services

vs. 4Q12

Noninterest income declined by $173 million, or

7.4%, driven by:

•

Mortgage banking revenue decline of $245 million

•

Higher credit and debit card revenue (8.7% increase) due to

higher transaction volumes including the impact of business

expansion; higher merchant processing (3.7% increase) due to

an increase in product fees and higher volumes

•

Higher trust and investment management fees (7.6% increase)

due to improved market conditions and business expansion;

higher investment product fees (15.4% increase) due to higher

sales volumes and fees

•

Higher commercial products revenue (7.5% increase), mainly

due to higher syndication fees on tax-advantaged projects

•

Lower corporate payments revenue (6.7% decline) due to lower

government-related transactions

vs. 3Q13

Noninterest income declined by $21 million, or

1.0%, driven by:

•

Mortgage banking revenue decline of $97 million

•

Lower corporate payments revenue (13.5% decrease) due to

seasonally higher 3Q13 government-related  transaction volume

•

Higher commercial products revenue (17.4% increase) due to

higher syndication fees on tax-advantaged projects and 

increases in commercial leasing and capital markets revenue

•

Higher credit and debit card revenue (7.8% increase) due to

seasonally higher sales volumes; higher trust and investment

management fees (6.1% increase) due to improved market

conditions and business expansion

•

Higher other income, mainly due to higher equity investment

and retail lease revenue

Year-Over-Year Growth

(4.2%)

(3.3%)

(3.4%)

(9.1%)

(7.4%)

$2,329

$2,165

$2,276

$2,177

$2,156

Trust and

Inv Mgmt

Service

Charges

All Other

Mortgage

Payments

All Other

Mortgage

Service Charges

Trust and Inv Mgmt

Payments

6.2%

(51.5%)

0.8%

7.6%

2.8%

0

700

1,400

2,100

2,800

4Q12

1Q13

2Q13

3Q13

4Q13

Noninterest Expense

Noninterest Expense

Key Points

$ in millions

vs. 4Q12

Noninterest expense was lower by $4 million, or

0.1%, driven by:

•

Lower professional services expense (28.9% decline) due to a

reduction in mortgage servicing review-related costs

•

Lower other expense, mainly due to a mortgage foreclosure-

related settlement accrual in 4Q12 and lower loan-related

expenses, including costs for other real estate owned, offset by

higher tax-advantaged project costs, including accounting

presentation changes in the current quarter

•

Higher employee benefits expense (19.0% increase), mainly due

to higher pension costs

•

Higher compensation expense (1.8% increase) due to growth in

staffing for business initiatives and the impact of merit increases,

partially offset by lower incentive and commission expense

vs. 3Q13

Noninterest expense was higher by $117 million, or

4.6%, driven by:

•

Higher professional services expense (25.5% increase) due to

seasonally higher costs; higher marketing and business

development expense (21.2% increase) due to timing of

marketing and business development projects

•

Higher compensation expense (1.4% increase) due to staffing

increases for business initiatives

•

Higher other expense, mainly due to higher costs related to

investments in tax-advantaged projects, reflecting higher volume

and the accounting presentation changes

Year-Over-Year Growth

(0.4%)

(3.5%)

(1.7%)

(1.7%)

(0.1%)

$2,686

$2,470

$2,557

$2,565

$2,682

Occupancy

and Equipment

Prof Services,

Marketing

and PPS

All Other

Tech and Comm

Compensation

and Benefits

All Other

Tech and Communications

Prof Svcs, Marketing and PPS

Occupancy and Equipment

Compensation and Benefits

4Q12

1Q13

2Q13

3Q13

4Q13

Mortgage servicing matters

80

$      

-

$        

-

$        

-

$        

-

$        

Total

80

$      

-

$        

-

$        

-

$        

-

$        

Notable Noninterest Expense Items

19

4Q13 Earnings

Conference Call

4.9%

2.6%

(13.3%)

(2.3%)

(4.0%)

3,200

2,400

1,600

800

0

4Q12

1Q13

2Q13

3Q13

4Q13

Credit Quality

-

Commercial Loans

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Strong

lending

activity

with

1.4%

linked

quarter

loan

growth

and

8.8%

year-over-year

growth;

utilization rates continued at historically low levels

Net charge-offs continued to be modest; prior quarter included a few large recoveries

Nonperforming loans and delinquencies remained at low levels

4Q12

3Q13

4Q13

Average Loans

$58,552

$62,856

$63,714

30-89 Delinquencies

0.48%

0.28%

0.33%

90+ Delinquencies

0.10%

0.08%

0.08%

Nonperforming Loans

0.18%

0.16%

0.19%

$ in millions

20

4Q13 Earnings

Conference Call

80,000

60,000

40,000

20,000

0

4.0%

3.0%

2.0%

1.0%

0.0%

$58,552

$59,921

$61,507

$62,856

$63,714

0.32%

0.22%

0.22%

0.11%

0.21%

Average Loans

Net Charge-offs Ratio

40%

35%

30%

25%

20%

Revolving Line Utilization Trend

4Q12

1Q13

2Q13

3Q13

4Q13

21

4Q13 Earnings

Conference Call

Credit Quality

-

Commercial Leases

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Net charge-offs remained at low levels and were essentially flat when adjusted for a large recovery

in 3Q13

Nonperforming loans and delinquencies continued at modest levels

4Q12

3Q13

4Q13

Average Loans

$5,377

$5,208

$5,210

30-89 Delinquencies

0.89%

0.76%

0.85%

90+ Delinquencies

0.00%

0.00%

0.00%

Nonperforming Loans

0.29%

0.23%

0.23%

$ in millions

Commercial Leases

Equipment

Finance

$2,089

Small Ticket

$3,121

9,000

6,000

3,000

0

$5,377

$5,378

$5,255

$5,208

$5,210

0.37%

0.23%

0.31%

0.23%

-0.53%

3.0%

2.0%

1.0%

0.0%

-1.0%

4Q12

1Q13

2Q13

3Q13

4Q13

Average Loans

Net Charge-offs Ratio

22

4Q13 Earnings

Conference Call

Credit Quality

-

Commercial Real Estate

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Average loans increased 2.1% on a linked quarter basis and 6.7% year-over-year

Net recovery ratio of 0.29%, marking the third consecutive quarter of net recoveries

Nonperforming loans of 0.76%, continuing its downward trend

4Q12

3Q13

4Q13

Average Loans

$36,851

$38,501

$39,318

30-89 Delinquencies

0.43%

0.16%

0.24%

90+ Delinquencies

0.02%

0.02%

0.07%

Nonperforming Loans

1.48%

0.92%

0.76%

Performing TDRs*

$531

$365

$390

$ in millions

Investor

$20,698

Owner

Occupied

$11,082

Multi-family

$2,459

Retail

$532

Residential

Construction

$1,691

A&D

Construction

$553

Office

$719

Other

$1,584

* TDR = troubled debt restructuring

$36,851

$37,218

$37,884

$38,501

$39,318

0.18%

0.21%

-0.18%

-0.06%

-0.29%

-0.5%

0.0%

0.5%

1.0%

1.5%

0

20,000

40,000

60,000

4Q12

1Q13

2Q13

3Q13

4Q13

Average Loans

Net Charge-offs Ratio

CRE Mortgage

CRE Construction

23

4Q13 Earnings

Conference Call

Credit Quality

-

Residential Mortgage

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Strong growth in high quality originations (weighted average FICO 756, weighted average LTV 70%), as average

loans increased 3.2% over 3Q13

Over 77% of the balances have been originated since the beginning of 2009, the origination quality metrics and

performance to date have significantly outperformed prior vintages with similar seasoning

Net charge-offs continued to decline as housing values improved

4Q12

3Q13

4Q13

Average Loans

$43,156

$49,139

$50,732

30-89 Delinquencies

0.79%

0.70%

0.70%

90+ Delinquencies

0.64%

0.53%

0.65%

Nonperforming Loans

1.50%

1.46%

1.51%

$ in millions

** Excludes GNMA loans, whose repayments are insured by the FHA or guaranteed by the Department of VA ($2,607 million 4Q13)

$43,156

$45,109

$46,873

$49,139

$50,732

0.88%

0.83%

0.63%

0.46%

0.38%

0.0%

1.0%

2.0%

3.0%

4.0%

0

15,000

30,000

45,000

60,000

4Q12

1Q13

2Q13

3Q13

4Q13

Average Loans

Net Charge-offs Ratio

$2,087

$2,035

$2,084

$2,030

$1,997

0

1,000

2,000

3,000

4,000

4Q12

1Q13

2Q13

3Q13

4Q13

Residential Mortgage Performing TDRs**

24

4Q13 Earnings

Conference Call

4Q12

3Q13

4Q13

Average Loans

$16,588

$16,931

$17,366

30-89 Delinquencies

1.33%

1.25%

1.25%

90+ Delinquencies

1.27%

1.11%

1.17%

Nonperforming Loans

0.85%

0.55%

0.43%

Credit Quality -

Credit Card

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Average loans increased 2.6% on a linked quarter basis

Net charge-offs ratio at lowest level since 4Q07 and delinquencies remain near historically low levels

Nonperforming loans have decreased for several consecutive quarters

$ in millions

$146

$127

$109

$94

$78

0.85%

0.78%

0.65%

0.55%

0.43%

0.0%

0.6%

1.2%

1.8%

2.4%

0

60

120

180

240

4Q12

1Q13

2Q13

3Q13

4Q13

Credit Card Nonperforming Loans

$16,588

$16,528

$16,416

$16,931

$17,366

3.86%

3.93%

4.23%

3.75%

3.72%

0.0%

2.5%

5.0%

7.5%

10.0%

0

5,000

10,000

15,000

20,000

4Q12

1Q13

2Q13

3Q13

4Q13

Average Loans

Net Charge-offs Ratio

25

4Q13 Earnings

Conference Call

Credit Quality -

Home Equity

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

High-quality originations (weighted average FICO on commitments was 765, weighted average

CLTV

68%)

originated

primarily

through

the

retail

branch

network

to

existing

bank

customers

on

their primary residence

Net charge-off ratio declined on a linked quarter basis

4Q12

3Q13

4Q13

Average Loans

$16,950

$15,648

$15,488

30-89 Delinquencies

0.76%

0.65%

0.66%

90+ Delinquencies

0.30%

0.25%

0.32%

Nonperforming Loans

1.13%

1.15%

1.08%

Subprime: 2%

Wtd Avg LTV**: 91%

NCO: 3.98%

$ in millions

Prime: 95%

Wtd Avg LTV**: 72%

NCO: 0.89%

** LTV at origination

Other: 3%

Wtd Avg LTV**: 72%

NCO: 0.83%

24,000

18,000

12,000

6,000

0

4Q12

1Q13

2Q13

3Q13

4Q13

Average Loans

Net Charge-offs Ratio

$16,950

$16,434

$15,989

$15,648

$15,488

1.76%

1.80%

1.45%

0.95%

1.09%

6.0%

4.5%

3.0%

1.5%

0.0%

Home Equity

26

4Q13 Earnings

Conference Call

Credit Quality -

Retail Leasing

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Strong year-over-year growth (8.6%), driven by high-quality originations (weighted average FICO 771)

Delinquencies remained relatively stable at very low levels

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

4Q12

3Q13

4Q13

Average Loans

$5,384

$5,664

$5,847

30-89 Delinquencies

0.22%

0.15%

0.18%

90+ Delinquencies

0.02%

0.02%

0.00%

Nonperforming Loans

0.02%

0.02%

0.02%

$ in millions

9,000

6,000

3,000

0

1.5%

1.0%

0.5%

0.0%

-0.5%

Average Loans

Net Charge-offs Ratio

$5,384

$5,448

$5,653

$5,664

$5,847

0.07%

0.07%

0.07%

0.00%

-0.07%

4Q12

1Q13

2Q13

3Q13

4Q13

Manheim Used Vehicle Index*

*

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

Credit Quality -

Other Retail

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Growth in auto loans continued to offset declines in student lending loan balances

(see slide 28 for auto loan detail)

Delinquencies

and

nonperforming

loans

remained

relatively

stable

and

at

very

low

levels

4Q12

3Q13

4Q13

Average Loans

$25,595

$25,682

$26,059

30-89 Delinquencies

0.59%

0.48%

0.50%

90+ Delinquencies

0.17%

0.14%

0.14%

Nonperforming Loans

0.11%

0.10%

0.09%

Installment

$5,738

Auto Loans

$13,409

Revolving

Credit

$3,283

Student

Lending

$3,629

$ in millions

27

4Q13 Earnings

Conference Call

40,000

30,000

20,000

10,000

0

4Q12

1Q13

2Q13

3Q13

4Q13

Average Loans

Net Charge-offs Ratio

$25,595

$25,364

$25,224

$25,682

$26,059

0.92%

0.83%

0.76%

0.83%

0.79%

Other Retail

4.0%

3.0%

2.0%

1.0%

0.0%

28

4Q13 Earnings

Conference Call

Credit Quality -

Auto Loans

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Continued growth in auto loans driven by high-quality originations in the Indirect Channel

(weighted average FICO 753)

Low net charge-offs and delinquencies continued as used vehicle values remain strong

4Q12

3Q13

4Q13

Average Loans

$12,540

$12,946

$13,409

30-89 Delinquencies

0.41%

0.30%

0.34%

90+ Delinquencies

0.06%

0.03%

0.04%

Nonperforming Loans

0.02%

0.02%

0.02%

$ in millions

Auto Loans are included in Other Retail category

Direct: 8%

Wtd Avg FICO: 748

NCO: 0.10%

Indirect: 92%

Wtd Avg FICO: 766

NCO: 0.12%

$12,540

$12,519

$12,575

$12,946

$13,409

0.22%

0.16%

0.00%

0.09%

0.12%

0.0%

0.2%

0.4%

0.6%

0.8%

0

4,000

8,000

12,000

16,000

4Q12

1Q13

2Q13

3Q13

4Q13

Average Loans

Net Charge-offs Ratio

Indirect and Direct Channel

Non-GAAP Financial Measures

$ in millions

4Q13

3Q13

2Q13

1Q13

4Q12

Total equity

41,807

$  

41,552

$  

41,050

$  

40,847

$  

40,267

$  

Preferred stock

(4,756)

(4,756)

(4,756)

(4,769)

(4,769)

Noncontrolling interests

(694)

(1,420)

(1,367)

(1,316)

(1,269)

Goodwill (net of deferred tax liability)

(8,343)

(8,319)

(8,317)

(8,333)

(8,351)

Intangible assets, other than mortgage servicing rights

(849)

(878)

(910)

(963)

(1,006)

Tangible common equity (a)

27,165

26,179

25,700

25,466

24,872

Tier 1 capital, determined in accordance with prescribed

regulatory requirements using Basel I definition

33,386

32,707

32,219

31,774

31,203

Preferred stock

(4,756)

(4,756)

(4,756)

(4,769)

(4,769)

Noncontrolling interests, less preferred stock not eligible for Tier 1 capital

(688)

(686)

(685)

(684)

(685)

Tier 1 common equity using Basel I definition (b)

27,942

27,265

26,778

26,321

25,749

Tangible common equity (as calculated above)

27,165

26,179

25,700

Adjustments

1

224

258

195

Common equity tier 1 estimated using final rules for the Basel III

standardized approach (c)

27,389

26,437

25,895

Tangible common equity (as calculated above)

25,700

25,466

24,872

Adjustments

2

(43)

81

126

Common equity tier 1 approximated using proposed rules for the

Basel III standardized approach released June 2012 (d)

25,657

25,547

24,998

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

29

4Q13 Earnings

Conference Call

30

4Q13 Earnings

Conference Call

Non-GAAP Financial Measures

$ in millions

4Q13

3Q13

2Q13

1Q13

4Q12

Total assets

364,021

$

360,681

$

353,415

$

355,447

$

353,855

$

Goodwill (net of deferred tax liability)

(8,343)

(8,319)

(8,317)

(8,333)

(8,351)

Intangible assets, other than mortgage servicing rights

(849)

(878)

(910)

(963)

(1,006)

Tangible assets (e)

354,829

351,484

344,188

346,151

344,498

Risk-weighted assets, determined in accordance with prescribed

regulatory requirements using Basel I definition (f)

297,919

293,155

289,613

Adjustments

13,712

13,473

12,476

Risk-weighted assets estimated using final rules for the Basel III

standardized approach (g)

311,631

306,628

302,089

Risk-weighted assets, determined in accordance with prescribed

regulatory requirements using Basel I definition (f)

289,613

289,672

287,611

Adjustments

4

20,866

21,021

21,233

Risk-weighted assets approximated using proposed rules for the

Basel III standardized approach released June 2012 (h)

310,479

310,693

308,844

Ratios

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

7.7%

7.4%

7.5%

7.4%

7.2%

Tangible common equity to risk-weighted assets using Basel I definition (a)/(f)

9.1%

8.9%

8.9%

8.8%

8.6%

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

9.4%

9.3%

9.2%

9.1%

9.0%

Common equity tier 1 to risk-weighted assets estimated using final rules

for the Basel III standardized approach (c)/(g)

8.8%

8.6%

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)

-

-

8.3%

8.2%

8.1%

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

3

January 22, 2014

U.S. Bancorp

4Q13 Earnings

Conference Call

U.S. Bancorp

4Q13 Earnings

Conference Call