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): April 16, 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 April 16, 2014 , U.S. Bancorp (the “Company”) issued a press release reporting quarter ended March 31, 2014 results, and posted on its website its 1Q14 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 1Q14 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated herein by reference. The information included in the 1Q14 Earnings Conference Call Presentation is considered to be “furnished” under the Securities Exchange Act of 1934. The press release and 1Q14 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 April 16, 2014 , deemed “filed” under the Securities Exchange Act of 1934.

99.2 1Q14 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: April 16, 2014

EX-99.1

Exhibit 99.1

	News Release
	Contacts:
	Thomas Joyce	Sean O’Connor
	Media	Investors/Analysts
	(612) 303-3167	(612) 303-0778

U.S. BANCORP REPORTS EARNINGS FOR THE FIRST QUARTER OF 2014

MINNEAPOLIS, April 16, 2014 — U.S. Bancorp (NYSE: USB) today reported net income of $1,397 million for the first quarter of 2014, or $.73 per diluted common share, compared with $1,428 million, or $.73 per diluted common share, in the first quarter of 2013.

Highlights for the first quarter of 2014 included:

• Growth in average total loans of 6.0 percent over the first quarter of 2013 (7.6 percent excluding covered loans) and 1.3 percent on a linked quarter basis (1.7 percent excluding covered loans)

• Growth in average total commercial loans of 8.5 percent over the first quarter of 2013 and 2.8 percent over the fourth quarter of 2013

• Growth in average total commercial real estate loans of 7.6 percent over the first quarter of 2013 and 1.9 percent over the fourth quarter of 2013

• Growth in average commercial and commercial real estate commitments of 11.7 percent year-over-year and 3.4 percent over the prior quarter

• Strong new lending activity of $41.0 billion during the first quarter, including:

• $26.9 billion of new and renewed commercial and commercial real estate commitments

• $2.6 billion of lines related to new credit card accounts

• $11.5 billion of mortgage and other retail loan originations

• Strong growth in average total deposits of 5.1 percent over the first quarter of 2013

• Average low cost deposits, including noninterest-bearing and total savings deposits, grew by 7.7 percent year-over-year and were stable on a linked quarter basis

• Industry-leading performance ratios, including:

• Return on average assets of 1.56 percent

• Return on average common equity of 14.6 percent

• Efficiency ratio of 52.9 percent

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• Net charge-offs declined 21.2 percent on a year-over-year basis. Provision for credit losses was $35 million less than net charge-offs

• Allowance to period-end loans was 1.89 percent at March 31, 2014

• Annualized net charge-offs to average total loans ratio was .59 percent

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

• Nonperforming assets (excluding covered assets) decreased 1.0 percent on a linked quarter basis and 11.6 percent from the first quarter of 2013

• Allowance to nonperforming assets (excluding covered assets) was 243 percent at March 31, 2014, compared with 242 percent at December 31, 2013, and 221 percent at March 31, 2013

• Capital generation continued to reinforce capital position and returns. Ratios at March 31, 2014, were:

• Basel III transitional:

• Common equity tier 1 capital ratio of 9.7 percent

• Tier 1 capital ratio of 11.4 percent

• Total risk based capital ratio of 13.5 percent

• Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach of 9.0 percent

• Returned 67 percent of first quarter earnings to shareholders through dividends and the buyback of 12 million common shares

• Received the Federal Reserve’s non-objection to our capital plan on March 26, 2014

• Announced a new share repurchase authorization of $2.3 billion, effective April 1st

• Expect to recommend a second quarter dividend of $0.245 per common share, a 6.5 percent increase over the current dividend rate

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U.S. Bancorp Reports First Quarter 2014 Results

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

							Percent			Percent
							Change			Change
	1Q		4Q		1Q		1Q14 vs			1Q14 vs
	2014		2013		2013		4Q13			1Q13
Net income attributable to U.S. Bancorp	$	1,397	$	1,456	$	1,428		(4.1	)		(2.2	)
Diluted earnings per common share	$	.73	$	.76	$	.73		(3.9	)		—
Return on average assets (%)		1.56		1.62		1.65
Return on average common equity (%)		14.6		15.4		16.0
Net interest margin (%)		3.35		3.40		3.48
Efficiency ratio (%)		52.9		54.9		50.7
Tangible efficiency ratio (%) (a)		51.9		53.7		49.6
Dividends declared per common share	$	.230	$	.230	$	.195		—			17.9
Book value per common share (period-end)	$	20.48	$	19.92	$	18.71		2.8			9.5

(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 $1,397 million for the first quarter of 2014, 2.2 percent lower than the $1,428 million for the first quarter of 2013, and 4.1 percent lower than the $1,456 million for the fourth quarter of 2013. Diluted earnings per common share of $.73 in the first quarter of 2014 were equal to the first quarter of 2013 and $.03 lower than the previous quarter. Return on average assets and return on average common equity were 1.56 percent and 14.6 percent, respectively, for the first quarter of 2014, compared with 1.65 percent and 16.0 percent, respectively, for the first quarter of 2013. The provision for credit losses was lower than net charge-offs by $35 million in the first quarter of 2014 and the fourth quarter of 2013, and $30 million lower than net charge-offs in the first quarter of 2013.

U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “Our first quarter earnings of $1.4 billion, or $.73 per diluted common share, demonstrated our Company’s ability to generate strong results in the face of a slow-growing and uncertain economy. Our industry-leading returns on average assets of 1.56 percent and average common equity of 14.6 percent, combined with our strong efficiency ratio of 52.9 percent, remain among the top performance ratios in our peer group. Our performance clearly reflects the advantage of our diversified business mix and disciplined expense management which has enabled us to withstand the revenue challenges facing our industry in this slow-growth economy.

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“Average loan growth remained strong at 6.0 percent year-over-year and 1.3 percent on a linked quarter basis. Total loan and commitment growth continued to be an area of strength for the Bank, particularly highlighted by our commercial business, which grew loans by 8.5 percent year-over-year and 2.8 percent on a linked quarter basis. This growth demonstrates our ability to gain market share as customers choose to partner with us to expand their businesses when opportunities arise.

“Noninterest income was impacted by seasonal factors, reflected in our payments businesses and in lower deposit service fees. Our mortgage banking revenue stabilized, as expected, on a linked quarter basis and declined compared to the prior year. Our diversified revenue mix helped offset this revenue decline and we managed expenses prudently.

“Credit quality continued to be strong in the first quarter as net charge-offs declined 21.2 percent compared with the prior year and rose modestly on a linked quarter basis due to unusually high recoveries in the prior quarter. Nonperforming assets, excluding covered assets, fell by 1.0 percent and delinquencies also improved in the quarter. Overall credit quality is expected to remain relatively stable in the coming quarters.

“On March 20th, the Federal Reserve released the summary results of the Dodd-Frank Act Stress Test and once again, I am proud to report that, compared with our peer banks, our Company posted the highest pre-provision net revenue and net income before taxes as a percent of average assets under the Federal Reserve’s supervisory severely adverse scenario. On March 26th, we received notice of the Federal Reserve’s non-objection to our capital plan and we announced our new share buyback authorization of $2.3 billion, effective April 1, and our intention to recommend to our board of directors a 6.5% increase in our common stock dividend at our June board meeting. These combined actions allow us to maintain our goal of returning 60 – 80 percent of earnings to our shareholders, a goal we again met in the first quarter when we returned 67 percent. Our ability to generate significant capital each quarter allows us to provide this return to our shareholders while maintaining a strong capital position. Our common equity tier 1 capital ratio is 9.0 percent under the Basel III fully implemented standardized approach and 9.7 percent under the transition rules.

“As I shared at our Annual Shareholder Meeting yesterday in Kansas City, our 67,000 employees are focused every day on extending our advantage by delivering outstanding service and the highest quality products. I am grateful to them for their hard work and dedication. I am also grateful to our nearly 18 million customers who trust U.S. Bank with their business. Our business model has shown strength and resilience through times of challenge, change and new opportunities. We are well positioned for the strengthening economic climate and the team is working every day to create value for our shareholders.”

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U.S. Bancorp Reports First Quarter 2014 Results

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

									Percent			Percent
									Change			Change
	1Q			4Q			1Q		1Q14 vs			1Q14 vs
	2014			2013			2013		4Q13			1Q13
Net interest income	$	2,706		$	2,733		$	2,709		(1.0	)		(.1	)
Noninterest income		2,108			2,156			2,165		(2.2	)		(2.6	)
Total net revenue		4,814			4,889			4,874		(1.5	)		(1.2	)
Noninterest expense		2,544			2,682			2,470		(5.1	)		3.0
Income before provision and taxes		2,270			2,207			2,404		2.9			(5.6	)
Provision for credit losses		306			277			403		10.5			(24.1	)
Income before taxes		1,964			1,930			2,001		1.8			(1.8	)
Taxable-equivalent adjustment		56			56			56		—			—
Applicable income taxes		496			403			558		23.1			(11.1	)
Net income		1,412			1,471			1,387		(4.0	)		1.8
Net (income) loss attributable to noncontrolling interests		(15	)		(15	)		41		—			nm
Net income attributable to U.S. Bancorp	$	1,397		$	1,456		$	1,428		(4.1	)		(2.2	)
Net income applicable to U.S. Bancorp common shareholders	$	1,331		$	1,389		$	1,358		(4.2	)		(2.0	)
Diluted earnings per common share	$	.73		$	.76		$	.73		(3.9	)		—

Net income attributable to U.S. Bancorp for the first quarter of 2014 was $31 million (2.2 percent) lower than the first quarter of 2013, and $59 million (4.1 percent) lower than the fourth quarter of 2013. The decrease in net income year-over-year was principally due to a decrease in mortgage banking revenue, partially offset by a favorable variance in the provision for credit losses. The decrease in net income on a linked quarter basis was principally due to a reduction in total net revenue, mainly due to seasonally lower fee revenue, partially offset by lower noninterest expense.

Total net revenue on a taxable-equivalent basis for the first quarter of 2014 was $4,814 million; $60 million (1.2 percent) lower than the first quarter of 2013, reflecting a .1 percent decrease in net interest income and a 2.6 percent decrease in noninterest income. Net interest income was essentially flat 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 decreased on a linked quarter basis, as a 1.0 percent decrease in net interest income, reflecting the impact of two fewer days in the first quarter relative to the prior quarter and seasonally lower

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loan fees, was combined with a 2.2 percent decrease in noninterest income, mainly due to seasonally lower fee revenue.

Total noninterest expense in the first quarter of 2014 was $2,544 million; $74 million (3.0 percent) higher than the first quarter of 2013 and $138 million (5.1 percent) lower than the fourth quarter of 2013. The increase in total noninterest expense year-over-year was primarily due to an increase in other expense driven by insurance-related recoveries in the first quarter of 2013, partially offset by a decrease in costs related to foreclosed properties, and the Company’s adoption in first quarter of 2014 of accounting changes for certain affordable housing tax credit investments (“the affordable housing tax credit change”). The decrease in total noninterest expense on a linked quarter basis was primarily due to a decrease in professional services and marketing and business development expense and lower tax-advantaged investment expense due to seasonally lower volume and the affordable housing tax credit change.

The Company’s provision for credit losses for the first quarter of 2014 was $306 million, $29 million higher than the prior quarter and $97 million lower than the first quarter of 2013. The provision for credit losses was lower than net charge-offs by $35 million in the first quarter of 2014 and in the fourth quarter of 2013, and $30 million lower than net charge-offs in the first quarter of 2013. Net charge-offs in the first quarter of 2014 were $341 million, compared with $312 million in the fourth quarter of 2013 and $433 million in the first quarter of 2013. The increase in net charge-offs compared with the prior quarter was due to unusually high recoveries in the fourth quarter of 2013. Given current economic conditions, the Company expects the level of net charge-offs to remain relatively stable in the second 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 $1,794 million at March 31, 2014, compared with $1,813 million at December 31, 2013, and $2,029 million at March 31, 2013. 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 $205 million at March 31, 2014, compared with $224 million at December 31, 2013, and $377 million at March 31, 2013. The ratio of the allowance for credit losses to period-end loans was 1.89 percent at March 31, 2014, compared with 1.93 percent at December 31, 2013, and 2.11 percent at March 31, 2013. The Company expects total nonperforming assets to remain relatively stable in the second quarter of 2014.

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U.S. Bancorp Reports First Quarter 2014 Results

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

										Change			Change
	1Q			4Q			1Q			1Q14 vs			1Q14 vs
	2014			2013			2013			4Q13			1Q13
Components of net interest income
Income on earning assets	$	3,078		$	3,125		$	3,168		$	(47	)	$	(90	)
Expense on interest-bearing liabilities		372			392			459			(20	)		(87	)
Net interest income	$	2,706		$	2,733		$	2,709		$	(27	)	$	(3	)
Average yields and rates paid
Earning assets yield		3.81	%		3.89	%		4.07	%		(.08	)%		(.26	)%
Rate paid on interest-bearing liabilities		.63			.68			.80			(.05	)		(.17	)
Gross interest margin		3.18	%		3.21	%		3.27	%		(.03	)%		(.09	)%
Net interest margin		3.35	%		3.40	%		3.48	%		(.05	)%		(.13	)%
Average balances
Investment securities (a)	$	82,216		$	77,248		$	73,467		$	4,968		$	8,749
Loans		235,859			232,791			222,421			3,068			13,438
Earning assets		326,226			319,516			313,992			6,710			12,234
Interest-bearing liabilities		238,276			229,201			232,186			9,075			6,090

(a) Excludes unrealized gain (loss)

Net Interest Income

Net interest income on a taxable-equivalent basis in the first quarter of 2014 was $2,706 million, a decrease of $3 million (.1 percent) from the first quarter of 2013. The decrease was the result of lower rates on loans and investment securities, partially offset by growth in the corresponding average balances, growth in lower cost core deposit funding and the positive impact from maturities of higher-rate long-term debt. Average earning assets were $12.2 billion (3.9 percent) higher than the first quarter of 2013, driven by increases of $13.4 billion (6.0 percent) in average total loans and $8.7 billion (11.9 percent) in average investment securities, partially offset by decreases of $6.1 billion (70.0 percent) in average loans held for sale and $3.8 billion (40.8 percent) in other earning assets, principally due to the deconsolidation of certain community development and tax-advantaged project variable interest entities during the second quarter of 2013. Net interest income decreased $27 million (1.0 percent) on a linked quarter basis, due to the impact of two fewer days in the first quarter relative to the prior quarter and seasonally lower loan fees, partially offset by higher average earning assets. The net interest margin in the first quarter of 2014 was 3.35 percent, compared with 3.48 percent in the first quarter of 2013, and 3.40 percent in the fourth quarter of 2013. The

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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 investment portfolio at lower average rates, and lower rates on loans, partially offset by lower rates on deposits and short-term borrowings and a reduction in higher cost long-term debt. On a linked quarter basis, the reduction in net interest margin was principally due to growth in lower rate investment securities and lower rates on loans.

AVERAGE LOANS	Table 4
($ in millions)

							Percent			Percent
							Change			Change
	1Q		4Q		1Q		1Q14 vs			1Q14 vs
	2014		2013		2013		4Q13			1Q13
Commercial	$	65,645	$	63,714	$	59,921		3.0			9.6
Lease financing		5,189		5,210		5,378		(.4	)		(3.5	)
Total commercial		70,834		68,924		65,299		2.8			8.5
Commercial mortgages		32,049		31,780		31,011		.8			3.3
Construction and development		8,001		7,538		6,207		6.1			28.9
Total commercial real estate		40,050		39,318		37,218		1.9			7.6
Residential mortgages		51,584		50,732		45,109		1.7			14.4
Credit card		17,407		17,366		16,528		.2			5.3
Retail leasing		5,979		5,847		5,448		2.3			9.7
Home equity and second mortgages		15,366		15,488		16,434		(.8	)		(6.5	)
Other		26,312		26,059		25,364		1.0			3.7
Total other retail		47,657		47,394		47,246		.6			.9
Total loans, excluding covered loans		227,532		223,734		211,400		1.7			7.6
Covered loans		8,327		9,057		11,021		(8.1	)		(24.4	)
Total loans	$	235,859	$	232,791	$	222,421		1.3			6.0

Average total loans were $13.4 billion (6.0 percent) higher in the first quarter of 2014 than the first quarter of 2013, driven by growth in residential mortgages (14.4 percent), commercial loans (9.6 percent), retail leasing (9.7 percent), total commercial real estate (7.6 percent), credit card (5.3 percent), and other retail loans (3.7 percent). These increases were partially offset by declines in home equity and second mortgages (6.5 percent), lease financing (3.5 percent) and covered loans (24.4 percent). Average total loans, excluding covered loans, were higher by 7.6 percent year-over-year. Average total loans were $3.1 billion (1.3 percent) higher in the first quarter of 2014 than the fourth quarter of 2013, driven by increases in commercial loans (3.0 percent), retail leasing (2.3 percent), total commercial real estate (1.9 percent),

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residential mortgages (1.7 percent), other retail loans (1.0 percent) and credit card (.2 percent), partially offset by decreases in home equity and second mortgages (.8 percent), lease financing (.4 percent) and covered loans (8.1 percent). Excluding covered loans, average total loans grew by 1.7 percent on a linked quarter basis.

Average investment securities in the first quarter of 2014 were $8.7 billion (11.9 percent) higher year-over-year and $5.0 billion (6.4 percent) higher than the prior quarter. The increases were primarily due to purchases of U.S. government agency-backed securities, net of prepayments and maturities, in anticipation of final liquidity coverage ratio regulatory requirements.

AVERAGE DEPOSITS	Table 5
($ in millions)

							Percent			Percent
							Change			Change
	1Q		4Q		1Q		1Q14 vs			1Q14 vs
	2014		2013		2013		4Q13			1Q13
Noninterest-bearing deposits	$	70,824	$	74,468	$	66,400		(4.9	)		6.7
Interest-bearing savings deposits
Interest checking		51,305		50,112		48,404		2.4			6.0
Money market savings		59,244		57,550		53,096		2.9			11.6
Savings accounts		33,200		32,235		31,409		3.0			5.7
Total of savings deposits		143,749		139,897		132,909		2.8			8.2
Time deposits less than $100,000		11,443		11,979		13,610		(4.5	)		(15.9	)
Time deposits greater than $100,000		31,463		30,562		32,099		2.9			(2.0	)
Total interest-bearing deposits		186,655		182,438		178,618		2.3			4.5
Total deposits	$	257,479	$	256,906	$	245,018		.2			5.1

Average total deposits for the first quarter of 2014 were $12.5 billion (5.1 percent) higher than the first quarter of 2013. Average noninterest-bearing deposits increased $4.4 billion (6.7 percent) year-over-year, mainly in balances related to corporate trust, commercial real estate and commercial banking businesses. Average total savings deposits were $10.8 billion (8.2 percent) higher year-over-year, the result of growth in Consumer and Small Business Banking, Wholesale Banking and Commercial Real Estate balances. Time deposits less than $100,000 were $2.2 billion (15.9 percent) lower due to maturities, while time deposits greater than $100,000 decreased $636 million (2.0 percent), primarily due to a decline in Consumer and Small Business Banking and corporate trust balances, partially offset by an increase in Wholesale Banking 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.

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Average total deposits increased $573 million (.2 percent) over the fourth quarter of 2013. Average noninterest-bearing deposits decreased $3.6 billion (4.9 percent) on a linked quarter basis, due to seasonally lower balances in corporate trust, Consumer and Small Business Banking and Wholesale Banking and Commercial Real Estate. Average total savings deposits increased $3.9 billion (2.8 percent), including increases in Consumer and Small Business Banking and government banking balances. Compared with the fourth quarter of 2013, average time deposits less than $100,000 declined $536 million (4.5 percent) due to maturities. Average time deposits greater than $100,000 increased $901 million (2.9 percent) on a linked quarter basis, principally due to higher broker-dealer balances.

NONINTEREST INCOME	Table 6
($ in millions)

							Percent			Percent
							Change			Change
	1Q		4Q		1Q		1Q14 vs			1Q14 vs
	2014		2013		2013		4Q13			1Q13
Credit and debit card revenue	$	239	$	263	$	214		(9.1	)		11.7
Corporate payment products revenue		173		166		172		4.2			.6
Merchant processing services		356		367		347		(3.0	)		2.6
ATM processing services		78		79		82		(1.3	)		(4.9	)
Trust and investment management fees		304		297		278		2.4			9.4
Deposit service charges		157		177		153		(11.3	)		2.6
Treasury management fees		133		130		134		2.3			(.7	)
Commercial products revenue		205		243		200		(15.6	)		2.5
Mortgage banking revenue		236		231		401		2.2			(41.1	)
Investment products fees		46		45		41		2.2			12.2
Securities gains (losses), net		5		1		5		nm			—
Other		176		157		138		12.1			27.5
Total noninterest income	$	2,108	$	2,156	$	2,165		(2.2	)		(2.6	)

Noninterest Income

First quarter noninterest income was $2,108 million; $57 million (2.6 percent) lower than the first quarter of 2013 and $48 million (2.2 percent) lower than the fourth quarter of 2013. The year-over-year decrease in noninterest income was principally due to a $165 million (41.1 percent) reduction in mortgage banking revenue due to lower origination and sales revenue. Growth in several fee categories partially offset the decline in mortgage banking revenue. Credit and debit card revenue increased $25 million (11.7 percent) over the prior year primarily due to higher transaction volumes. Merchant processing services revenue was $9 million (2.6 percent) higher as a result of an increase in product fees and higher volumes, partially offset

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by lower rates. Trust and investment management fees increased $26 million (9.4 percent) year-over-year, reflecting account growth, improved market conditions and business expansion. Commercial products revenue increased $5 million (2.5 percent) over the prior year, principally due to higher syndication fees on tax-advantaged projects, while investment products fees increased $5 million (12.2 percent) due to higher sales volumes and fees. In addition, other income increased $38 million (27.5 percent) driven by higher equity investment revenue.

Noninterest income was $48 million (2.2 percent) lower in the first quarter of 2014 than the fourth quarter of 2013, primarily due to decreases in commercial products revenue, deposit service charges, and credit and debit card revenue. Commercial products revenue decreased $38 million (15.6 percent) due to lower wholesale transaction activity and seasonally lower tax-advantaged project-related revenue. Deposit service charges were $20 million (11.3 percent) lower due to seasonality. Credit and debit card revenue was $24 million (9.1 percent) lower due to seasonally lower transaction volumes. Merchant processing revenue was $11 million (3.0 percent) lower on a linked quarter basis due to seasonally lower product fees and volumes. Partially offsetting these declines on a linked quarter basis were increases in corporate payment products revenue, trust and investment management fees and other income. Corporate payment products revenue was higher by $7 million (4.2 percent), primarily due to seasonally higher government-related transaction volumes. Trust and investment management fees were $7 million (2.4 percent) higher than the prior quarter due to improved market conditions and account growth, including business expansion. Other income was $19 million (12.1 percent) higher on a linked quarter basis, primarily due to higher equity investment and retail leasing revenue.

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NONINTEREST EXPENSE	Table 7
($ in millions)

							Percent			Percent
							Change			Change
	1Q		4Q		1Q		1Q14 vs			1Q14 vs
	2014		2013		2013		4Q13			1Q13
Compensation	$	1,115	$	1,103	$	1,082		1.1			3.0
Employee benefits		289		275		310		5.1			(6.8	)
Net occupancy and equipment		249		240		235		3.8			6.0
Professional services		83		118		78		(29.7	)		6.4
Marketing and business development		79		103		73		(23.3	)		8.2
Technology and communications		211		209		211		1.0			—
Postage, printing and supplies		81		80		76		1.3			6.6
Other intangibles		49		56		57		(12.5	)		(14.0	)
Other		388		498		348		(22.1	)		11.5
Total noninterest expense	$	2,544	$	2,682	$	2,470		(5.1	)		3.0

Noninterest Expense

Noninterest expense in the first quarter of 2014 totaled $2,544 million, an increase of $74 million (3.0 percent) from the first quarter of 2013, and a $138 million (5.1 percent) decrease from the fourth quarter of 2013. The increase in total noninterest expense year-over-year was primarily the result of higher compensation expense, reflecting growth in staffing for business initiatives and the impact of merit increases, an increase in other expense driven by insurance-related recoveries in the prior year, partially offset by lower tax-advantaged projects costs, including the affordable housing tax credit change, and lower costs related to other real estate owned. In addition, net occupancy and equipment expense increased $14 million (6.0 percent) due to business initiatives, higher rent expense and maintenance costs, and marketing and business development increased $6 million (8.2 percent) due to the timing of Payment Services projects. Offsetting these increases was a $21 million (6.8 percent) reduction in employee benefits expense driven by lower pension costs and an $8 million (14.0 percent) reduction in other intangibles expense from the reduction or completion of the amortization of certain intangibles.

Noninterest expense decreased $138 million (5.1 percent) on a linked quarter basis, driven by lower professional services costs, costs related to tax-advantaged projects, and marketing and business development costs. Professional services were $35 million (29.7 percent) lower compared with the fourth quarter of 2013 due to seasonally lower costs across a majority of the lines of business. Marketing and business development expense decreased $24 million (23.3 percent) due to the timing of various marketing

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programs in Payments Services and Consumer and Small Business Banking. Other expense was $110 million (22.1 percent) lower than the fourth quarter of 2013, principally due to lower costs related to investments in tax-advantaged projects, reflecting seasonally lower volume and the affordable housing tax credit change. In addition, other intangibles expense was $7 million (12.5 percent) lower due to the reduction or completion of the amortization of certain intangibles. Partially offsetting these positive variances was a $12 million (1.1 percent) increase in compensation expense due to merit increases and a $14 million (5.1 percent) increase in employee benefits expense resulting from seasonally higher payroll taxes, partially offset by lower pension expense.

Provision for Income Taxes

The provision for income taxes for the first quarter of 2014 resulted in a tax rate on a taxable-equivalent basis of 28.1 percent (effective tax rate of 26.0 percent), compared with 30.7 percent (effective tax rate of 28.7 percent) in the first quarter of 2013, and 23.8 percent (effective tax rate of 21.5 percent) in the fourth quarter of 2013. The decrease on a year-over-year basis primarily reflected the impact of the accounting presentation changes, begun in the fourth quarter of 2013, related to certain investments in tax-advantaged projects. The increase over the prior quarter principally reflected the affordable housing tax credit change and the favorable conclusion of certain tax matters in the fourth quarter of 2013.

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ALLOWANCE FOR CREDIT LOSSES	Table 8
($ in millions)

	1Q						4Q						3Q						2Q						1Q
	2014			% (b)			2013			% (b)			2013			% (b)			2013			% (b)			2013		% (b)
Balance, beginning of period	$	4,537					$	4,578					$	4,612					$	4,708					$	4,733
Net charge-offs
Commercial		34			.21			33			.21			18			.11			34			.22			32		.22
Lease financing		2			.16			3			.23			(7	)		(.53	)		4			.31			3		.23
Total commercial		36			.21			36			.21			11			.06			38			.23			35		.22
Commercial mortgages		(1	)		(.01	)		1			.01			2			.03			8			.10			15		.20
Construction and development		(2	)		(.10	)		(30	)		(1.58	)		(8	)		(.46	)		(25	)		(1.54	)		4		.26
Total commercial real estate		(3	)		(.03	)		(29	)		(.29	)		(6	)		(.06	)		(17	)		(.18	)		19		.21
Residential mortgages		57			.45			49			.38			57			.46			74			.63			92		.83
Credit card		170			3.96			163			3.72			160			3.75			173			4.23			160		3.93
Retail leasing		—			—			—			—			1			.07			(1	)		(.07	)		1		.07
Home equity and second mortgages		31			.82			37			.95			43			1.09			58			1.45			73		1.80
Other		45			.69			52			.79			54			.83			48			.76			52		.83
Total other retail		76			.65			89			.75			98			.83			105			.90			126		1.08
Total net charge-offs, excluding covered loans		336			.60			308			.55			320			.58			373			.70			432		.83
Covered loans		5			.24			4			.18			8			.33			19			.73			1		.04
Total net charge-offs		341			.59			312			.53			328			.57			392			.70			433		.79
Provision for credit losses		306						277						298						362						403
Other changes (a)		(5	)					(6	)					(4	)					(66	)					5
Balance, end of period	$	4,497					$	4,537					$	4,578					$	4,612					$	4,708
Components
Allowance for loan losses	$	4,189					$	4,250					$	4,258					$	4,312					$	4,390
Liability for unfunded credit commitments		308						287						320						300						318
Total allowance for credit losses	$	4,497					$	4,537					$	4,578					$	4,612					$	4,708
Gross charge-offs	$	422					$	429					$	450					$	506					$	549
Gross recoveries	$	81					$	117					$	122					$	114					$	116
Allowance for credit losses as a percentage of
Period-end loans, excluding covered loans		1.90						1.94						1.99						2.03						2.11
Nonperforming loans, excluding covered loans		293						297						294						287						274
Nonperforming assets, excluding covered assets		243						242						235						231						221
Period-end loans		1.89						1.93						1.98						2.02						2.11
Nonperforming loans		278						283						276						269						255
Nonperforming assets		225						223						207						203						196

(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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Credit Quality

The allowance for credit losses was $4,497 million at March 31, 2014, compared with $4,537 million at December 31, 2013, and $4,708 million at March 31, 2013. Net charge-offs and nonperforming assets declined on a year-over-year basis as economic conditions continued to slowly improve. On a linked quarter basis, net charge-offs increased $29 million (9.3 percent), while nonperforming assets, excluding covered assets, decreased $19 million (1.0 percent). Total net charge-offs in the first quarter of 2014 were $341 million, compared with $312 million in the fourth quarter of 2013, and $433 million in the first quarter of 2013. The $92 million (21.2 percent) decline in net charge-offs year-over-year was due to improvements in the commercial real estate, residential mortgages and home equity and second mortgages portfolios, while the increase on a linked quarter basis reflected recoveries in the prior quarter in commercial real estate. The Company recorded $306 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 $33 million (.12 percent of average loans outstanding) in the first quarter of 2014, compared with $7 million (.03 percent of average loans outstanding) in the fourth quarter of 2013, and $54 million (.21 percent of average loans outstanding) in the first quarter of 2013.

Residential mortgage loan net charge-offs were $57 million (.45 percent of average loans outstanding) in the first quarter of 2014, compared with $49 million (.38 percent of average loans outstanding) in the fourth quarter of 2013, and $92 million (.83 percent of average loans outstanding) in the first quarter of 2013. Credit card loan net charge-offs were $170 million (3.96 percent of average loans outstanding) in the first quarter of 2014, compared with $163 million (3.72 percent of average loans outstanding) in the fourth quarter of 2013, and $160 million (3.93 percent of average loans outstanding) in the first quarter of 2013. Total other retail loan net charge-offs were $76 million (.65 percent of average loans outstanding) in the first quarter of 2014, compared with $89 million (.75 percent of average loans outstanding) in the fourth quarter of 2013, and $126 million (1.08 percent of average loans outstanding) in the first quarter of 2013.

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The ratio of the allowance for credit losses to period-end loans was 1.89 percent (1.90 percent excluding covered loans) at March 31, 2014, compared with 1.93 percent (1.94 percent excluding covered loans) at December 31, 2013, and 2.11 percent (2.11 percent excluding covered loans) at March 31, 2013. The ratio of the allowance for credit losses to nonperforming loans was 278 percent (293 percent excluding covered loans) at March 31, 2014, compared with 283 percent (297 percent excluding covered loans) at December 31, 2013, and 255 percent (274 percent excluding covered loans) at March 31, 2013.

DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES	Table 9
(Percent)

	Mar 31		Dec 31		Sep 30		Jun 30		Mar 31
	2014		2013		2013		2013		2013
Delinquent loan ratios—90 days or more past due excluding nonperforming loans
Commercial		.06		.08		.07		.09		.09
Commercial real estate		.06		.07		.02		.03		.02
Residential mortgages		.64		.65		.53		.53		.54
Credit card		1.21		1.17		1.11		1.10		1.26
Other retail		.18		.18		.16		.16		.18
Total loans, excluding covered loans		.30		.31		.27		.27		.29
Covered loans		5.83		5.63		5.47		5.40		5.18
Total loans		.49		.51		.48		.49		.52
Delinquent loan ratios—90 days or more past due including nonperforming loans
Commercial		.32		.27		.24		.24		.25
Commercial real estate		.73		.83		.94		1.13		1.38
Residential mortgages		2.14		2.16		1.99		1.96		2.01
Credit card		1.59		1.60		1.66		1.75		2.04
Other retail		.58		.58		.60		.63		.67
Total loans, excluding covered loans		.95		.97		.94		.97		1.06
Covered loans		7.46		7.13		7.13		7.08		7.13
Total loans		1.17		1.19		1.20		1.24		1.35

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ASSET QUALITY	Table 10
($ in millions)

	Mar 31		Dec 31		Sep 30		Jun 30		Mar 31
	2014		2013		2013		2013		2013
Nonperforming loans
Commercial	$	174	$	122	$	104	$	91	$	85
Lease financing		14		12		12		14		16
Total commercial		188		134		116		105		101
Commercial mortgages		156		182		210		263		289
Construction and development		113		121		146		161		218
Total commercial real estate		269		303		356		424		507
Residential mortgages		777		770		732		685		673
Credit card		65		78		94		109		127
Other retail		188		191		206		222		228
Total nonperforming loans, excluding covered loans		1,487		1,476		1,504		1,545		1,636
Covered loans		132		127		156		168		209
Total nonperforming loans		1,619		1,603		1,660		1,713		1,845
Other real estate (a)		296		327		366		364		379
Covered other real estate (a)		73		97		176		187		168
Other nonperforming assets		11		10		10		12		14
Total nonperforming assets (b)	$	1,999	$	2,037	$	2,212	$	2,276	$	2,406
Total nonperforming assets, excluding covered assets	$	1,794	$	1,813	$	1,880	$	1,921	$	2,029
Accruing loans 90 days or more past due, excluding covered loans	$	695	$	713	$	591	$	580	$	609
Accruing loans 90 days or more past due	$	1,167	$	1,189	$	1,105	$	1,119	$	1,165
Performing restructured loans, excluding GNMA and covered loans	$	3,006	$	3,067	$	3,097	$	3,311	$	3,318
Performing restructured GNMA and covered loans	$	3,003	$	2,932	$	2,262	$	2,217	$	2,294
Nonperforming assets to loans plus ORE, excluding covered assets (%)		.78		.80		.85		.88		.95
Nonperforming assets to loans plus ORE (%)		.84		.86		.95		1.00		1.07

(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 March 31, 2014, totaled $1,999 million, compared with $2,037 million at December 31, 2013, and $2,406 million at March 31, 2013. Total nonperforming assets at March 31, 2014, included $205 million of covered assets. The ratio of nonperforming assets to loans and other real estate was .84 percent (.78 percent excluding covered assets) at March 31, 2014, compared with .86 percent (.80 percent excluding covered assets) at December 31, 2013, and 1.07 percent (.95 percent excluding covered assets) at March 31, 2013. Total commercial nonperforming assets were $54 million (40.3 percent) higher on a linked

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quarter basis and $87 million (86.1 percent) higher year-over-year. Commercial real estate nonperforming assets declined by $34 million (11.2 percent) on a linked quarter basis and $238 million (46.9 percent) year-over-year. Residential mortgage nonperforming assets increased $7 million (.9 percent) on a linked quarter basis and $104 million (15.5 percent) year-over-year. Credit card nonperforming assets were $13 million (16.7 percent) lower on a linked basis and $62 million (48.8 percent) lower year-over-year. Other retail nonperforming assets decreased $3 million (1.6 percent) on a linked quarter basis and $40 million (17.5 percent) year-over-year.

Accruing loans 90 days or more past due were $1,167 million ($695 million excluding covered loans) at March 31, 2014, compared with the $1,189 million ($713 million excluding covered loans) at December 31, 2013, and the $1,165 million ($609 million excluding covered loans) at March 31, 2013.

CAPITAL POSITION	Table 11
($ in millions)

	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
	2014			2013			2013			2013			2013
Total U.S. Bancorp shareholders’ equity	$	42,054		$	41,113		$	40,132		$	39,683		$	39,531
Basel III transitional standardized approach/Basel I (a)
Common equity tier 1 capital	$	29,463		$	27,942		$	27,265		$	26,778		$	26,321
Tier 1 capital		34,627			33,386			32,707			32,219			31,774
Total risk-based capital		40,741			39,340			38,873			38,378			38,099
Common equity tier 1 capital ratio		9.7	%		9.4	%		9.3	%		9.2	%		9.1	%
Tier 1 capital ratio		11.4			11.2			11.2			11.1			11.0
Total risk-based capital ratio		13.5			13.2			13.3			13.3			13.2
Leverage ratio		9.7			9.6			9.6			9.5			9.3
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach (b)		9.0			8.8			8.6			8.6			8.2
Tangible common equity to tangible assets		7.8			7.7			7.4			7.5			7.4
Tangible common equity to risk-weighted assets		9.3			9.1			8.9			8.9			8.8

(a) March 31, 2014, based on the Basel III transitional standardized approach, all prior periods under Basel I

(b) The Basel III regulatory requirements for March 31, 2013, were based on the proposed rules for the Basel III fully implemented standardized approach released June 2012, all other periods were based on the final rules for the Basel III fully implemented standardized approach

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Total U.S. Bancorp shareholders’ equity was $42.1 billion at March 31, 2014, compared with $41.1 billion at December 31, 2013, and $39.5 billion at March 31, 2013. During the first quarter, the Company returned 67 percent of first quarter earnings to shareholders, including $420 million in common stock dividends and $482 million of repurchased common stock.

Prior to 2014, the regulatory capital requirements effective for the Company followed Basel I. During 2013, U.S. banking regulators approved final regulatory capital rule enhancements, which implemented aspects of Basel III and the Dodd-Frank Act, such as redefining the regulatory capital elements and minimum capital ratios, introducing regulatory capital buffers above those minimums, revising rules for calculating risk-weighted assets and introducing a new common equity tier 1 ratio. Beginning January 1, 2014, the regulatory capital requirements effective for the company follow Basel III, subject to certain transition provisions from Basel I over the next four years to full implementation by January 1, 2018. The common equity tier 1 capital ratio using the transition provisions was 9.7 percent at March 31, 2014. The tier 1 capital ratio was 11.4 percent at March 31, 2014, compared with 11.2 percent at December 31, 2013, and 11.0 percent at March 31, 2013. The tangible common equity to tangible assets ratio was 7.8 percent at March 31, 2014, compared with 7.7 percent at December 31, 2013, and 7.4 percent at March 31, 2013. All regulatory ratios continue to be in excess of “well-capitalized” requirements. The common equity tier 1 capital to risk-weighted assets ratio estimated for the Basel III fully implemented standardized approach was 9.0 percent at March 31, 2014, compared with 8.8 percent at December 31, 2013, and 8.2 percent at March 31, 2013.

COMMON SHARES	Table 12
(Millions)

	1Q			4Q			3Q			2Q			1Q
	2014			2013			2013			2013			2013
Beginning shares outstanding		1,825			1,832			1,844			1,858			1,869
Shares issued for stock option and stock purchase plans, acquisitions and other corporate purposes		8			6			5			4			6
Shares repurchased		(12	)		(13	)		(17	)		(18	)		(17	)
Ending shares outstanding		1,821			1,825			1,832			1,844			1,858

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

	Net Income Attributable
	to U.S. Bancorp						Percent Change						1Q 2014 Earnings Composition
	1Q		4Q		1Q		1Q14 vs			1Q14 vs
Business Line	2014		2013		2013		4Q13			1Q13
Wholesale Banking and Commercial Real Estate	$	288	$	289	$	319		(.3	)		(9.7	)		21	%
Consumer and Small Business Banking		291		396		368		(26.5	)		(20.9	)		21
Wealth Management and Securities Services		48		40		34		20.0			41.2			3
Payment Services		233		236		210		(1.3	)		11.0			17
Treasury and Corporate Support		537		495		497		8.5			8.0			38
Consolidated Company	$	1,397	$	1,456	$	1,428		(4.1	)		(2.2	)		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 2014, 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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and public sector clients. Wholesale Banking and Commercial Real Estate contributed $288 million of the Company’s net income in the first quarter of 2014, compared with $319 million in the first quarter of 2013 and $289 million in the fourth quarter of 2013. Wholesale Banking and Commercial Real Estate’s net income decreased $31 million (9.7 percent) from the same quarter of 2013 due to a decrease in total net revenue and a higher provision for credit losses, partially offset by a reduction in total noninterest expense. Total net revenue declined by $38 million (4.9 percent), due to a 12.1 percent decrease in total noninterest income, and a .8 percent decrease in net interest income. Net interest income decreased $4 million (.8 percent) year-over-year, primarily due to lower rates on loans and the impact of lower rates on the margin benefit from deposits, partially offset by an increase in average total loans. Total noninterest income decreased by $34 million (12.1 percent), driven by lower wholesale transaction activity 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. The provision for credit losses was $18 million higher year-over-year due to an unfavorable change in the reserve allocation, partially offset by lower net charge-offs.

Wholesale Banking and Commercial Real Estate’s contribution to net income in the first quarter of 2014 was $1 million (.3 percent) lower than the fourth quarter of 2013, mainly due to lower total net revenue, partially offset by a decrease in the provision for credit losses. Total net revenue decreased by $48 million (6.1 percent) compared with the prior quarter. Net interest income decreased by $20 million (3.9 percent) on a linked quarter basis, primarily due to lower loan rates, the impact of lower rates on the margin benefit from deposits and two fewer days in the current quarter relative to the prior quarter, partially offset by an increase in average total loans. Total noninterest income decreased by $28 million (10.2 percent), driven by lower wholesale transaction activity, in part due to seasonally higher transaction volumes in the prior quarter and lower equity investment revenue, partially offset by higher treasury management fees. Total noninterest expense was relatively flat, decreasing $2 million (.7 percent), as lower professional services and loan-related expense was offset by higher net shared services costs. The provision for credit losses decreased by $43 million due to a favorable change in the reserve allocation, partially offset by higher net charge-offs due to a high level of recoveries in the prior quarter.

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

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and 24-hour banking. Consumer and Small Business Banking contributed $291 million of the Company’s net income in the first quarter of 2014, a $77 million (20.9 percent) decrease from the first quarter of 2013 and a $105 million (26.5 percent) decrease from the prior quarter. Within Consumer and Small Business Banking, the retail banking division reported a 7.5 percent 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 2.2 percent lower than the first quarter of 2013. Net interest income decreased 3.5 percent, primarily due to the lower rates on loans and the impact of lower rates on the margin benefit from deposits, partially offset by higher average loan and deposit balances. Total noninterest income for the retail banking division increased 1.0 percent over a year ago, principally due to higher deposit service charges, mainly due to increased monthly account fees, and an increase in retail lease revenue, partially offset by decreases in ATM processing services and commercial products revenue. Total noninterest expense for the retail banking division in the first quarter of 2014 increased 1.5 percent from the same quarter of the prior year, largely due to higher compensation and employee benefits expense and net shared services costs, partially offset by lower other intangibles expense. The provision for credit losses for the retail banking division decreased 30.0 percent on a year-over-year basis due to lower net charge-offs and a favorable change in the reserve allocation. The contribution of the mortgage banking division was lower by 42.6 percent than the first quarter of 2013, reflecting a decrease in total net revenue, partially offset by a reduction in total noninterest expense. The division’s 35.4 percent decrease in total net revenue was due to a 41.9 percent decrease in total noninterest income, driven by lower mortgage origination and sales revenue, as well as a 21.3 percent decrease in net interest income, primarily the result of lower average loans held for sale. Total noninterest expense was 14.2 percent lower than the prior year, reflecting lower compensation and employee benefits expense and mortgage servicing-related costs. The provision for credit losses for the mortgage banking division decreased by $32 million due to a favorable change in the reserve allocation and lower net charge-offs.

Consumer and Small Business Banking’s contribution in the first quarter of 2014 was $105 million (26.5 percent) lower than the fourth quarter of 2013, driven by a higher provision for credit losses and lower total net revenue. Within Consumer and Small Business Banking, the retail banking division’s contribution decreased 43.8 percent, mainly due to an increase in the provision for credit losses and lower total net revenue. Total net revenue for the retail banking division decreased 3.7 percent compared with the previous quarter. Net interest income was 4.3 percent lower, primarily due to lower rates on loans, two less days in the current quarter relative to the prior quarter and seasonally lower loan fees, partially offset by higher

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average loan and deposits balances. Total noninterest income was 2.2 percent lower on a linked quarter basis, driven by seasonally lower deposit service charges, partially offset by higher retail lease revenue. Total noninterest expense for the retail banking division was relatively flat on a linked quarter basis, as an increase in compensation and employee benefits expense was offset by lower marketing expense and other intangibles expense. The provision for credit losses increased $157 million on a linked quarter basis due to an unfavorable change in the reserve allocation, reflecting a reduction in the home equity allocation in the prior quarter, and higher net charge-offs in the current quarter. The contribution of the mortgage banking division increased 30.4 percent from the fourth quarter of 2013 mainly due to a decrease in the provision for credit losses. Total net revenue decreased 1.1 percent due to a 4.6 percent decline in net interest income, the result of lower average loans held for sale, partially offset by a 1.3 percent increase in total noninterest income, primarily due to a favorable change in the valuation of mortgage servicing rights, net of hedging activities, partially offset by lower origination and sales revenue. Total noninterest expense increased 1.5 percent, primarily reflecting higher net shared services costs and employee benefits expense, partially offset by lower professional services expense. The provision for credit losses for the mortgage banking division decreased by $51 million on a linked quarter basis due to 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 $48 million of the Company’s net income in the first quarter of 2014, compared with $34 million in the first quarter of 2013 and $40 million in the fourth quarter of 2013. The business line’s contribution was $14 million (41.2 percent) higher than the same quarter of 2013, as an increase in total net revenue was partially offset by higher total noninterest expense. Total net revenue increased by $31 million (8.1 percent) year-over-year, driven by a $36 million (12.2 percent) increase in total noninterest income, reflecting the impact of account growth, improved market conditions, business expansion and higher investment products fees. Net interest income decreased $5 million (5.7 percent), principally due to the impact of lower rates on the margin benefit from deposits, partially offset by higher average loan balances. Total noninterest expense increased by $12 million (3.6 percent) primarily as a result of higher compensation and employee benefits expense, including the impact of business expansion. The provision for credit losses decreased $4 million mainly from a favorable change in the reserve allocation.

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April 16, 2014

Page 24

The business line’s contribution in the first quarter of 2014 was $8 million (20.0 percent) higher than the prior quarter. Total net revenue remained relatively flat on a linked quarter basis, reflecting a decrease in net interest income (2.4 percent), principally due to lower average deposit balances and the impact of lower rates on the margin benefit of deposits, offset by an increase in total noninterest income (1.9 percent), primarily due to higher trust and investment management fees, resulting from improved market conditions and account growth, including business expansion. Total noninterest expense decreased $6 million (1.7 percent), primarily as a result of lower professional services and litigation-related costs, partially offset by higher compensation and employee benefits expense. The provision for credit losses decreased $3 million on a linked quarter basis due to 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 $233 million of the Company’s net income in the first quarter of 2014, compared with $210 million in the first quarter of 2013 and $236 million in the fourth quarter of 2013. The $23 million (11.0 percent) increase in the business line’s contribution from the prior year was driven by an increase in total net revenue, partially offset by an increase in total noninterest expense. Total net revenue increased by $54 million (4.8 percent) year-over-year. Net interest income increased by $26 million (6.7 percent), primarily due to higher average loan balances and improved loan rates. Total noninterest income was $28 million (3.7 percent) higher year-over-year, due to an increase in credit and debit card revenue on higher transaction volumes, and higher merchant processing services revenue, the result of an increase in product fees and higher volumes, partially offset lower rates. Total noninterest expense increased by $22 million (3.8 percent) over the first quarter of 2013, primarily due to higher compensation and employee benefits expense, including the impact of business expansion, partially offset by reductions in technology and communications expense and other intangibles expense. The provision for credit losses decreased by $4 million (2.0 percent) due to a favorable change in the reserve allocation, partially offset by higher net charge-offs.

Payment Services’ contribution in the first quarter of 2014 declined $3 million (1.3 percent) from the fourth quarter of 2013. Total net revenue decreased $35 million (2.9 percent) on a linked quarter basis. Net interest income decreased by $2 million (.5 percent) due to two fewer days in the current quarter and higher rebate costs on the Company’s government card program, partially offset by improved loan rates. Total noninterest income declined by $33 million (4.1 percent), reflecting a decrease in credit and debit card revenue due to seasonally lower transaction volumes, and a decline in merchant processing revenue due to seasonally lower product fees and volumes, partially offset by an increase in corporate payment products

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revenue on seasonally higher volumes. Total noninterest expense decreased by $13 million (2.1 percent) due to lower net shared services, professional services, marketing and other intangibles expense, partially offset by an increase in compensation and employee benefits expense, due principally to seasonally higher payroll taxes. The provision for credit losses was $15 million (6.9 percent) lower on a linked quarter basis due to a favorable change in the reserve allocation, partially offset by 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 investments in tax-advantaged projects, 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 $537 million in the first quarter of 2014, compared with net income of $497 million in the first quarter of 2013 and net income of $495 million in the fourth quarter of 2013. Net interest income increased by $53 million (9.2 percent) from the first quarter of 2013, principally due to an increase in the investment portfolio average balances and lower rates on short- term borrowings. Total noninterest income increased by $75 million over the first 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 $65 million (62.5 percent), principally reflecting an increase in other expense driven by insurance-related recoveries in the prior year and an increase in occupancy costs, partially offset by lower costs related to investments in tax-advantaged projects. The provision for credit losses was $12 million lower year-over-year, due to a favorable change in the reserve allocation, partially offset by higher net charge-offs.

Net income in the first quarter of 2014 was $42 million (8.5 percent) higher on a linked quarter basis, driven by higher total net revenue and lower total noninterest expense. Total net revenue was $59 million (8.4 percent) higher than the prior quarter, driven by higher equity investment revenue, partially offset by a decrease in commercial products revenue, mainly due to seasonally lower syndication fees on tax-advantaged projects. A $121 million (41.7 percent) decrease in total noninterest expense was primarily due to lower tax-advantaged investment expense due to seasonally lower volume and the affordable housing tax credit change. The provision for credit losses was $16 million lower compared with the fourth quarter of 2013, due to a favorable change in the reserve allocation.

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April 16, 2014

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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 612-303-4328.

On Wednesday, April 16, 2014, at 8:00 a.m. (CDT) Richard K. Davis, chairman, president and chief executive officer, and Andrew Cecere, vice chairman and chief financial officer, will host a conference call to review the financial results. The conference call will be available by telephone or on the Internet. A presentation will be used during the call and will be available on the Company’s website at www.usbank.com. To access the conference call from locations within the United States and Canada, please dial 866-316-1409. Participants calling from outside the United States and Canada, please dial 706-634-9086. The conference ID number for all participants is 32344679. 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, April 16th, and will run through Wednesday, April 23rd, at 11:00 p.m. (CDT). To access the recorded message within the United States and Canada, dial 855-859-2056. If calling from outside the United States and Canada, please dial 404-537-3406 to access the recording. The conference ID is 32344679. 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 $371 billion in assets as of March 31, 2014, is the parent company of U.S. Bank National Association, the 5th largest commercial bank in the United States. The Company operates 3,083 banking offices in 25 states and 4,878 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 First Quarter 2014 Results

April 16, 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. A reversal or slowing of the current moderate economic recovery or another severe contraction 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, 2013, 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 First Quarter 2014 Results

April 16, 2014

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Non-GAAP Financial Measures

In addition to capital ratios defined by banking regulators, 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,

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

• Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach

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 currently effective capital ratios defined by banking regulations principally in that the numerator includes unrealized gains and losses related to available-for-sale securities and excludes preferred securities, including 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
(Dollars and Shares in Millions, Except Per Share Data)	March 31,
(Unaudited)	2014			2013
Interest Income
Loans	$	2,522		$	2,562
Loans held for sale		27			72
Investment securities		441			410
Other interest income		32			67
Total interest income		3,022			3,111
Interest Expense
Deposits		119			155
Short-term borrowings		69			85
Long-term debt		184			218
Total interest expense		372			458
Net interest income		2,650			2,653
Provision for credit losses		306			403
Net interest income after provision for credit losses		2,344			2,250
Noninterest Income
Credit and debit card revenue		239			214
Corporate payment products revenue		173			172
Merchant processing services		356			347
ATM processing services		78			82
Trust and investment management fees		304			278
Deposit service charges		157			153
Treasury management fees		133			134
Commercial products revenue		205			200
Mortgage banking revenue		236			401
Investment products fees		46			41
Securities gains (losses), net		5			5
Other		176			138
Total noninterest income		2,108			2,165
Noninterest Expense
Compensation		1,115			1,082
Employee benefits		289			310
Net occupancy and equipment		249			235
Professional services		83			78
Marketing and business development		79			73
Technology and communications		211			211
Postage, printing and supplies		81			76
Other intangibles		49			57
Other		388			348
Total noninterest expense		2,544			2,470
Income before income taxes		1,908			1,945
Applicable income taxes		496			558
Net income		1,412			1,387
Net (income) loss attributable to noncontrolling interests		(15	)		41
Net income attributable to U.S. Bancorp	$	1,397		$	1,428
Net income applicable to U.S. Bancorp common shareholders	$	1,331		$	1,358
Earnings per common share	$	.73		$	.73
Diluted earnings per common share	$	.73		$	.73
Dividends declared per common share	$	.230		$	.195
Average common shares outstanding		1,818			1,858
Average diluted common shares outstanding		1,828			1,867

Page 29

U.S. Bancorp

Consolidated Ending Balance Sheet

	March 31,			December 31,			March 31,
(Dollars in Millions)	2014			2013			2013
	(Unaudited)						(Unaudited)
Assets
Cash and due from banks	$	7,408		$	8,477		$	6,932
Investment securities
Held-to-maturity		40,712			38,920			34,716
Available-for-sale		44,761			40,935			40,570
Loans held for sale		1,843			3,268			7,719
Loans
Commercial		73,701			70,033			66,323
Commercial real estate		40,131			39,885			37,400
Residential mortgages		51,708			51,156			45,984
Credit card		17,129			18,021			16,229
Other retail		47,607			47,678			46,680
Total loans, excluding covered loans		230,276			226,773			212,616
Covered loans		8,099			8,462			10,735
Total loans		238,375			235,235			223,351
Less allowance for loan losses		(4,189	)		(4,250	)		(4,390	)
Net loans		234,186			230,985			218,961
Premises and equipment		2,589			2,606			2,656
Goodwill		9,204			9,205			9,152
Other intangible assets		3,422			3,529			2,918
Other assets		27,164			26,096			31,823
Total assets	$	371,289		$	364,021		$	355,447
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing	$	73,363		$	76,941		$	67,802
Interest-bearing		157,918			156,165			148,906
Time deposits greater than $100,000		29,331			29,017			31,304
Total deposits		260,612			262,123			248,012
Short-term borrowings		30,781			27,608			27,126
Long-term debt		23,774			20,049			25,239
Other liabilities		13,379			12,434			14,223
Total liabilities		328,546			322,214			314,600
Shareholders’ equity
Preferred stock		4,756			4,756			4,769
Common stock		21			21			21
Capital surplus		8,236			8,216			8,138
Retained earnings		39,584			38,667			35,720
Less treasury stock		(9,693	)		(9,476	)		(8,176	)
Accumulated other comprehensive income (loss)		(850	)		(1,071	)		(941	)
Total U.S. Bancorp shareholders’ equity		42,054			41,113			39,531
Noncontrolling interests		689			694			1,316
Total equity		42,743			41,807			40,847
Total liabilities and equity	$	371,289		$	364,021		$	355,447

Page 30

U.S. Bancorp

Non-GAAP Financial Measures

	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in Millions, Unaudited)	2014			2013			2013			2013			2013
Total equity	$	42,743		$	41,807		$	41,552		$	41,050		$	40,847
Preferred stock		(4,756	)		(4,756	)		(4,756	)		(4,756	)		(4,769	)
Noncontrolling interests		(689	)		(694	)		(1,420	)		(1,367	)		(1,316	)
Goodwill (net of deferred tax liability) (1)		(8,352	)		(8,343	)		(8,319	)		(8,317	)		(8,333	)
Intangible assets, other than mortgage servicing rights		(804	)		(849	)		(878	)		(910	)		(963	)
Tangible common equity (a)		28,142			27,165			26,179			25,700			25,466
Tangible common equity (as calculated above)		28,142			27,165			26,179			25,700			25,466
Adjustments (2)		239			224			258			195			81
Common equity tier 1 capital estimated for the Basel III fully implemented standardized approach (b)		28,381			27,389			26,437			25,895			25,547
Tier 1 capital, determined in accordance with prescribed regulatory requirements using Basel I definition					33,386			32,707			32,219			31,774
Preferred stock					(4,756	)		(4,756	)		(4,756	)		(4,769	)
Noncontrolling interests, less preferred stock not eligible for Tier 1 capital					(688	)		(686	)		(685	)		(684	)
Tier 1 common equity using Basel I definition (c)					27,942			27,265			26,778			26,321
Total assets		371,289			364,021			360,681			353,415			355,447
Goodwill (net of deferred tax liability) (1)		(8,352	)		(8,343	)		(8,319	)		(8,317	)		(8,333	)
Intangible assets, other than mortgage servicing rights		(804	)		(849	)		(878	)		(910	)		(963	)
Tangible assets (d)		362,133			354,829			351,484			344,188			346,151
Risk-weighted assets, determined in accordance with prescribed regulatory requirements (e)		302,841	*		297,919			293,155			289,613			289,672
Adjustments (3)		13,238	*		13,712			13,473			12,476			21,021
Risk-weighted assets estimated for the Basel III fully implemented standardized approach (f)		316,079	*		311,631			306,628			302,089			310,693
Ratios *
Tangible common equity to tangible assets (a)/(d)		7.8	%		7.7	%		7.4	%		7.5	%		7.4	%
Tangible common equity to risk-weighted assets (a)/(e)		9.3			9.1			8.9			8.9			8.8
Tier 1 common equity to risk-weighted assets using Basel I definition (c)/(e)		—			9.4			9.3			9.2			9.1
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach (b)/(f)		9.0			8.8			8.6			8.6			8.2

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

Note: The Basel III regulatory requirements for March 31, 2013, were based on the proposed rules for the Basel III fully implemented standardized approach released June 2012, all other periods were based on the final rules for the Basel III fully implemented standardized approach.

(1) Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements beginning March 31, 2014.

(2) Includes net losses on cash flow hedges included in accumulated other comprehensive income and other adjustments. March 31, 2013, also includes a deduction for disallowed mortgage servicing rights.

(3) Includes higher risk-weighting for unfunded loan commitments, investment securities, mortgage servicing rights and other adjustments. March 31, 2013, also includes higher risk-weighting for residential mortgages.

Page 31

EX-99.2

U.S. Bancorp

1Q14 Earnings

Conference Call

U.S. Bancorp

1Q14 Earnings

Conference Call

April 16, 2014

Richard K. Davis

Chairman, President and CEO

Andy Cecere

Vice Chairman and CFO

Exhibit 99.2

2

Forward-looking Statements and Additional Information

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

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

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

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

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

factors could cause actual results to differ materially from those anticipated.  A reversal or slowing of the current moderate economic recovery or

another severe contraction 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, 2013, on file with the Securities and Exchange Commission, including the sections entitled “Risk

Factors” and “Corporate Risk Profile” contained in Exhibit 13, and all subsequent filings with the Securities and Exchange Commission under

Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934. Forward-looking statements speak only as of the date they are made, 

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

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

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

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

by other companies.

3

1Q14 Earnings

Conference Call

1Q14 Highlights

Net income of $1.4 billion; $0.73 per diluted common share

Average loan growth of 6.0% vs. 1Q13 and average loan growth of 1.3%

vs. 4Q13

Average deposit growth of 5.1% vs. 1Q13 and 0.2% vs. 4Q13

Net charge-offs declined 21.2% vs. 1Q13

Nonperforming assets decreased 1.0% vs. 4Q13 and 11.6% vs. 1Q13 (excluding

covered assets)

Capital generation continues to reinforce capital position

•

Common equity tier 1 capital ratio of 9.0% estimated for the Basel III fully implemented

standardized approach

•

Common

equity

tier

1

capital

ratio

of

9.7%;

Tier

1

capital

ratio

of

11.4%

Returned 67% of earnings to shareholders in 1Q14

•

Repurchased 12 million shares of common stock during the quarter

4

1Q14 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

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

16.0%

16.1%

15.8%

15.4%

14.6%

1.65%

1.70%

1.65%

1.62%

1.56%

1.0%

1.5%

2.0%

2.5%

3.0%

8%

11%

14%

17%

20%

1Q13

2Q13

3Q13

4Q13

1Q14

50.7%

51.7%

52.4%

54.9%

52.9%

3.48%

3.43%

3.43%

3.40%

3.35%

2.0%

2.5%

3.0%

3.5%

4.0%

45%

50%

55%

60%

65%

1Q13

2Q13

3Q13

4Q13

1Q14

1Q14 Earnings

Conference Call

Taxable-equivalent basis

Year-Over-Year Change

(1.1%)

(2.4%)

(5.6%)

(4.4%)

(1.2%)

$ in millions

$4,874

$4,948

$4,891

$4,889

$4,814

3,500

4,000

4,500

5,000

5,500

1Q13

2Q13

3Q13

4Q13

1Q14

Revenue Growth

5

6

1Q14 Earnings

Conference Call

Loan and Deposit Growth

Average Balances

Year-Over-Year Growth

$ in billions

5.7%

$232.8

6.0%

$235.9

5.8%

$222.4

5.2%

$225.2

5.7%

$229.4

5.4%

$256.9

5.1%

$257.5

7.3%

$245.0

7.0%

$247.4

5.5%

$252.4

180.0

200.0

220.0

240.0

260.0

1Q13

2Q13

3Q13

4Q13

1Q14

Loans

Deposits

7

1Q14 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)

$433

$392

$328

$312

$341

0.79%

0.70%

0.57%

0.53%

0.59%

0.00%

0.75%

1.50%

2.25%

3.00%

0

150

300

450

600

1Q13

2Q13

3Q13

4Q13

1Q14

$2,029

$1,921

$1,880

$1,813

$1,794

0.95%

0.88%

0.85%

0.80%

0.78%

0.00%

0.75%

1.50%

2.25%

3.00%

0

800

1,600

2,400

3,200

1Q13

2Q13

3Q13

4Q13

1Q14

8

1Q14 Earnings

Conference Call

Earnings Summary

$ in millions, except per-share data

Taxable-equivalent basis

1Q14

4Q13

1Q13

vs 4Q13

vs 1Q13

Net Interest Income

2,706

$   

2,733

$   

2,709

$   

(1.0)

(0.1)

Noninterest Income

2,108

2,156

2,165

(2.2)

(2.6)

Total Revenue

4,814

4,889

4,874

(1.5)

(1.2)

Noninterest Expense

2,544

2,682

2,470

5.1

(3.0)

Operating Income

2,270

2,207

2,404

2.9

(5.6)

Net Charge-offs

341

312

433

(9.3)

21.2

Excess Provision

(35)

(35)

(30)

16.7

Income before Taxes

1,964

1,930

2,001

1.8

(1.8)

Applicable Income Taxes

552

459

614

(20.3)

10.1

Noncontrolling Interests

(15)

(15)

41

nm

Net Income

1,397

1,456

1,428

(4.1)

(2.2)

Preferred Dividends/Other

66

67

70

1.5

5.7

NI to Common

1,331

$   

1,389

$   

1,358

$   

(4.2)

(2.0)

Diluted EPS

0.73

$     

0.76

$     

0.73

$     

(3.9)

Average Diluted Shares

1,828

1,832

1,867

0.2

2.1

% B/(W)

9

1Q14 Earnings

Conference Call

1Q14 Results -

Key Drivers

vs. 1Q13

Net Revenue decline of 1.2%

•

Net

interest

income

flat;

net

interest

margin

of

3.35%

vs.

3.48%

in

1Q13

•

Noninterest income decline of 2.6%

Noninterest expense increase of 3.0%

Provision for credit losses lower by $97 million

•

Net charge-offs lower by $92 million, or 21.2%

•

Provision lower than NCOs by $35 million vs. $30 million in 1Q13

vs. 4Q13

Net Revenue decline of 1.5%

•

Net interest income decline of 1.0%; net interest margin of 3.35% vs. 3.40% in 4Q13

•

Noninterest income decline of 2.2%

Noninterest expense decrease of 5.1%

Provision for credit losses higher by $29 million

•

Net charge-offs increased by $29 million

•

Provision lower than NCOs by $35 million vs. $35 million in 4Q13

10

1Q14 Earnings

Conference Call

Capital Position

$ in billions

RWA = risk-weighted assets

(a) March 31, 2014, based on the Basel III transitional standardized approach, all prior periods under Basel I

(b) The Basel III regulatory requirements for March 31, 2013, were based on the proposed rules for the Basel III fully implemented standardized

approach

released

June

2012,

all

other

periods

were

based

on

the

final

rules for the Basel III fully implemented standardized approach

1Q14

4Q13

3Q13

2Q13

1Q13

Total U.S. Bancorp shareholders' equity

42.1

$    

41.1

$    

40.1

$    

39.7

$    

39.5

$    

Basel III transitional standardized approach/Basel I (a)

Common equity tier 1 capital

29.5

27.9

27.3

26.8

26.3

Tier 1 capital

34.6

33.4

32.7

32.2

31.8

Total risk-based capital

40.7

39.3

38.9

38.4

38.1

Common equity tier 1 capital ratio

9.7%

9.4%

9.3%

9.2%

9.1%

Tier 1 capital ratio

11.4%

11.2%

11.2%

11.1%

11.0%

Total risk-based capital ratio

13.5%

13.2%

13.3%

13.3%

13.2%

Leverage ratio

9.7%

9.6%

9.6%

9.5%

9.3%

Common equity tier 1 capital to RWA estimated for the

Basel III fully implemented standardized approach (b)

9.0%

8.8%

8.6%

8.6%

8.2%

Tangible common equity ratio

7.8%

7.7%

7.4%

7.5%

7.4%

Tangible common equity as a % of RWA

9.3%

9.1%

8.9%

8.9%

8.8%

1Q14 Earnings

Conference Call

11

Capital Actions

Share repurchase authorization and expected dividend increase announced

March 26

th

•

Expect to increase annual dividend from $0.92 to $0.98, a 6.5% increase, effective 2Q14

•

One year authorization to repurchase up to $2.3 billion of outstanding stock effective April 1, 2014

Returned 67% of earnings to shareholders during 1Q14

Reinvest and

Acquisitions

Dividends

Share

Repurchases

20 -

40%

Targets:

30 -

40%

30 -

40%

33%

1Q14

Actual:

36%

31%

Earnings Distribution

12

1Q14 Earnings

Conference Call

13

1Q14 Earnings

Conference Call

Appendix

14

1Q14 Earnings

Conference Call

Covered

Commercial

CRE

Res Mtg

Credit

Card

Retail

Average Loans

Average Loans

Key Points

$ in billions

vs. 1Q13

Average total loans grew by $13.5 billion, or 6.0%

Average total loans, excluding covered loans,

were higher by 7.6%

Average total commercial loans increased $5.5

billion, or 8.5%; average commercial real estate

loans increased $2.8 billion, or 7.6%; average

residential mortgage loans increased $6.5 billion,

or 14.4%

vs. 4Q13

Average total loans grew by $3.1 billion, or 1.3%

Average total loans, excluding covered loans,

were higher by 1.7%

Average total commercial loans increased $1.9

billion, or 2.8%; average commercial real estate

loans increased $0.7 billion, or 1.9%; average

residential mortgage loans increased $0.9 billion,

or 1.7%

Year-Over-Year Growth

5.8%

5.2%

5.7%

5.7%

6.0%

Covered

Commercial

CRE

Res Mtg

Retail

Credit Card

$222.4

$225.2

$229.4

$232.8

$235.9

0

70

140

210

280

1Q13

2Q13

4Q13

1Q14

(1.4%)

14.3%

3.4%

19.2%

(1.5%)

11.2%

3.7%

19.7%

(1.7%)

(2.2%)

9.4%

5.1%

19.9%

2.3%

(2.1%)

3Q13

7.8%

6.7%

17.6%

4.7%

(1.1%)

8.5%

14.4%

5.3%

0.9%

7.6%

15

1Q14 Earnings

Conference Call

Time

Money

Market

Checking

& Savings

Noninterest

-bearing

Average Deposits

Average Deposits

Key Points

$ in billions

vs. 1Q13

Average total deposits increased by $12.5

billion, or 5.1%

Average low cost deposits (NIB, interest

checking, money market and savings) 

increased by $15.3 billion, or 7.7%

vs. 4Q13

Average total deposits increased by $0.6

billion, or 0.2%

Average low cost deposits increased by $0.2

billion, or 0.1%

Year-Over-Year Growth

7.3%

7.0%

5.5%

5.4%

5.1%

Time

Money Market

Checking and Savings

Noninterest-bearing

$245.0

$247.4

$252.4

$256.9

$257.5

0

80

160

240

320

1Q13

2Q13

3Q13

4Q13

1Q14

7.6%

15.6%

4.6%

4.4%

(4.3%)

24.5%

6.4%

3.6%

(5.7%)

17.8%

10.1%

0.2%

(8.0%)

16.2%

9.2%

2.5%

(6.1%)

11.6%

5.9%

6.7%

16

1Q14 Earnings

Conference Call

Net Interest Income

Net Interest Income

Key Points

$ in millions

Taxable-equivalent basis

vs. 1Q13

Average earning assets grew by $12.2 billion,

or 3.9%

Net interest margin lower by 13 bps (3.35%

vs. 3.48%) driven by:

•

Lower rates on investment securities and growth in

the portfolio

•

Partially offset by lower rates on deposits and

short-term borrowings and a reduction in higher

cost long-term debt

vs. 4Q13

Average earning assets grew by $6.7 billion,

or 2.1%

Net interest margin lower by 5 bps (3.35% vs.

3.40%) driven by:

•

Growth in lower rate investment securities

•

Loan mix / loan fees

Year-Over-Year Growth

0.7%

(1.5%)

(2.5%)

(1.8%)

(0.1%)

$2,709

$2,672

$2,714

$2,733

$2,706

3.48%

3.43%

3.43%

3.40%

3.35%

0.0%

2.0%

4.0%

6.0%

8.0%

0

1,000

2,000

3,000

4,000

1Q13

2Q13

3Q13

4Q13

1Q14

Net Interest Income

Net Interest Margin

17

1Q14 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. 1Q13

Noninterest income declined by $57 million, or

2.6%, driven by:

•

Mortgage banking revenue decline of $165 million

•

Higher credit and debit card revenue (11.7% increase) due to

higher transaction volumes; higher merchant processing revenue

(2.6% increase) due to an increase in product fees and higher

volumes, partially offset by lower rates

•

Higher trust and investment management fees (9.4% increase)

due to account growth, improved market conditions and

business expansion

•

Higher commercial products revenue (2.5% increase) due to

higher syndication fees on tax-advantaged products

•

Higher other income, due to higher equity investment revenue

vs. 4Q13

Noninterest income declined by $48 million, or 2.2%,

driven by:

•

Lower credit and debit card revenue (9.1% decrease) due to

seasonally lower transaction volumes

•

Lower deposit service charges (11.3% decrease) due to

seasonality

•

Lower commercial products revenue (15.6% decrease) due to

lower wholesale transaction activity and seasonally lower tax-

advantaged project-related revenue

•

Higher corporate payments revenue (4.2% increase) primarily due

to seasonally higher government-related transaction volumes

•

Higher trust and investment management revenues (2.4%

increase) due to improved market conditions, account growth

and business expansion

•

Higher other income, primarily due to higher equity investment

and retail leasing revenue

Year-Over-Year Growth

(3.3%)

(3.4%)

(9.1%)

(7.4%)

(2.6%)

$2,165

$2,276

$2,177

$2,156

$2,108

Trust and

Inv Mgmt

Service

Charges

All Other

Mortgage

Payments

12.5%

(41.1%)

(0.3%)

9.4%

4.8%

0

600

1,200

1,800

2,400

1Q13

2Q13

3Q13

4Q13

1Q14

All Other

Mortgage

Service Charges

Trust and Inv Mgmt

Payments

18

1Q14 Earnings

Conference Call

Noninterest Expense

Noninterest Expense

Key Points

$ in millions

vs. 1Q13

Noninterest expense was higher by $74 million, or

3.0%, driven by:

•

Higher compensation expense (3.0% increase) due to growth in

staffing for business initiatives and merit increases

•

Higher net occupancy and equipment expenses (6.0% increase)

due to business initiatives, higher rent expense and

maintenance costs

•

Higher other expense mainly driven by insurance-related

recoveries in the prior year, partially offset by lower tax-

advantaged project costs and lower costs related to other real

estate owned

•

Lower employee benefits expense (6.8% decrease) driven by

lower pension costs

vs. 4Q13

Noninterest expense was lower by $138 million, or

5.1%, driven by:

•

Lower professional services expense (29.7% decrease) due to

seasonally lower costs; lower marketing and business

development expense (23.3% decrease) due to the timing of

marketing and business development programs

•

Lower other expense mainly due to lower costs related to

investments in tax-advantaged projects

•

Higher compensation expense (1.1% increase) due to merit

increases; higher employee benefits expense (5.1% increase)

due to seasonally higher payroll taxes, partially offset by lower

pension expense

Year-Over-Year Change

(3.5%)

(1.7%)

(1.7%)

(0.1%)

3.0%

$2,470

$2,557

$2,565

$2,682

$2,544

Occupancy

and Equipment

Prof Services,

Marketing

and PPS

All Other

Tech and Comm

Compensation

and Benefits

0

800

1,600

2,400

3,200

1Q13

2Q13

3Q13

4Q13

1Q14

7.9%

0.0%

7.0%

6.0%

0.9%

All Other

Tech and Communications

Prof Svcs, Marketing and PPS

Occupancy and Equipment

Compensation and Benefits

19

1Q14 Earnings

Conference Call

Credit

Quality

-

Commercial

Loans

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Strong

new

lending

activity

with

3.0%

linked

quarter

loan

growth

and

9.6%

year-over-year

growth;

utilization rates remained at historically low levels

Net charge-offs continued to be modest

Nonperforming loans increased moderately but remained at low levels

1Q13

4Q13

1Q14

Average Loans

$59,921

$63,714

$65,645

30-89 Delinquencies

0.20%

0.33%

0.25%

90+ Delinquencies

0.10%

0.08%

0.07%

Nonperforming Loans

0.14%

0.19%

0.25%

$ in millions

$59,921

$61,507

$62,856

$63,714

$65,645

0.22%

0.22%

0.11%

0.21%

0.21%

0.0%

1.0%

2.0%

3.0%

4.0%

0

20,000

40,000

60,000

80,000

1Q13

2Q13

3Q13

4Q13

1Q14

Average Loans

Net Charge-offs Ratio

20%

25%

30%

35%

40%

Revolving Line Utilization Trend

20

1Q14 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 declined slightly from 4Q13

Nonperforming loans and delinquencies continued at modest levels

1Q13

4Q13

1Q14

Average Loans

$5,378

$5,210

$5,189

30-89 Delinquencies

0.82%

0.85%

0.74%

90+ Delinquencies

0.00%

0.00%

0.00%

Nonperforming Loans

0.30%

0.23%

0.27%

$ in millions

$5,378

$5,255

$5,208

$5,210

$5,189

0.23%

0.31%

-0.53%

0.23%

0.16%

-1.0%

0.0%

1.0%

2.0%

3.0%

0

3,000

6,000

9,000

1Q13

2Q13

3Q13

4Q13

1Q14

Average Loans

Net Charge-offs Ratio

Small Ticket

$3,113

Equipment

Finance

$2,076

Commercial Leases

21

1Q14 Earnings

Conference Call

Credit Quality

-

Commercial Real Estate

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Average loans increased 1.9% on a linked quarter basis and 7.6% year-over-year

Net recovery ratio of 0.03% marked the fourth consecutive quarter of net recoveries

Nonperforming loans of 0.67% continued its downward trend

1Q13

4Q13

1Q14

Average Loans

$37,218

$39,318

$40,050

30-89 Delinquencies

0.22%

0.24%

0.14%

90+ Delinquencies

0.02%

0.07%

0.06%

Nonperforming Loans

1.36%

0.76%

0.67%

Performing TDRs*

$526

$390

$359

$ in millions

Investor

$20,868

Multi-family

$2,615

Retail

$515

Residential

Construction

$1,790

A&D

Construction

$549

Office

$742

Other

$1,790

* TDR = troubled debt  restructuring

$37,218

$37,884

$38,501

$39,318

$40,050

0.21%

-0.18%

-0.06%

-0.29%

-0.03%

-0.5%

0.0%

0.5%

1.0%

1.5%

-20,000

0

20,000

40,000

60,000

1Q13

2Q13

3Q13

4Q13

1Q14

Average Loans

CRE Mortgage

CRE Construction

Owner

Occupied

$11,181

Net Charge-offs Ratio

22

1Q14 Earnings

Conference Call

Credit Quality

-

Residential Mortgage

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Modest growth in high quality originations (weighted average FICO 759, weighted average LTV 70%), as average

loans increased 1.7% over 4Q13

Over 78% 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

1Q13

4Q13

1Q14

Average Loans

$45,109

$50,732

$51,584

30-89 Delinquencies

0.71%

0.70%

0.59%

90+ Delinquencies

0.54%

0.65%

0.64%

Nonperforming Loans

1.46%

1.51%

1.50%

$ in millions

** Excludes GNMA loans, whose repayments are insured by the FHA or guaranteed by the Department of VA ($2,716 million 1Q14)

$45,109

$46,873

$49,139

$50,732

$51,584

0.83%

0.63%

0.46%

0.38%

0.45%

0.0%

1.0%

2.0%

3.0%

4.0%

0

15,000

30,000

45,000

60,000

1Q13

2Q13

3Q13

4Q13

1Q14

Average Loans

Net Charge-offs Ratio

$2,035

$2,084

$2,030

$1,997

$1,962

0

1,000

2,000

3,000

4,000

1Q13

2Q13

3Q13

4Q13

1Q14

Residential Mortgage Performing TDRs**

23

1Q14 Earnings

Conference Call

1Q13

4Q13

1Q14

Average Loans

$16,528

$17,366

$17,407

30-89 Delinquencies

1.24%

1.25%

1.19%

90+ Delinquencies

1.26%

1.17%

1.21%

Nonperforming Loans

0.78%

0.43%

0.38%

Credit Quality -

Credit Card

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Average loans flat on a linked quarter basis; up 5.3% year over year

Delinquencies have stabilized near historically low levels

Nonperforming loans continued to decline

$ in millions

$16,528

$16,416

$16,931

$17,366

$17,407

3.93%

4.23%

3.75%

3.72%

3.96%

0.0%

2.5%

5.0%

7.5%

10.0%

0

5,000

10,000

15,000

20,000

1Q13

2Q13

3Q13

4Q13

1Q14

Average Loans

Net Charge-offs Ratio

$127

$109

$94

$78

$65

0.78%

0.65%

0.55%

0.43%

0.38%

0.0%

0.6%

1.2%

1.8%

2.4%

0

40

80

120

160

1Q13

2Q13

3Q13

4Q13

1Q14

Credit Card Nonperforming Loans

24

1Q14 Earnings

Conference Call

Credit Quality -

Home Equity

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

CLTV

70%)

originated

primarily

through

the

retail

branch

network

to

existing

bank

customers

on

their primary residence

Net charge-offs ratio continued to decline on a linked quarter basis

1Q13

4Q13

1Q14

Average Loans

$16,434

$15,488

$15,366

30-89 Delinquencies

0.70%

0.66%

0.57%

90+ Delinquencies

0.27%

0.32%

0.33%

Nonperforming Loans

1.25%

1.08%

1.09%

Subprime: 2%

Wtd Avg LTV**: 89%

NCO: 4.46%

$ in millions

Prime: 95%

Wtd Avg LTV**: 72%

NCO: 0.75%

** LTV at origination

Other: 3%

Wtd Avg LTV**: 72%

NCO: 0.83%

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

$16,434

$15,989

$15,648

$15,488

$15,366

1.80%

1.45%

1.09%

0.95%

0.82%

0.0%

1.5%

3.0%

4.5%

6.0%

0

6,000

12,000

18,000

24,000

1Q13

2Q13

3Q13

4Q13

1Q14

Average Loans

Net Charge-offs Ratio

Home Equity

25

1Q14 Earnings

Conference Call

Credit Quality -

Retail Leasing

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Strong year-over-year growth (9.7%), driven by high-quality originations (weighted average FICO 772)

Delinquencies remained relatively stable at very low levels

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

1Q13

4Q13

1Q14

Average Loans

$5,448

$5,847

$5,979

30-89 Delinquencies

0.12%

0.18%

0.16%

90+ Delinquencies

0.02%

0.00%

0.02%

Nonperforming Loans

0.02%

0.02%

0.02%

$ in millions

*

Manheim

Used

Vehicle

Value

Index

source:

www.manheimconsulting.com,

January

1995

=

100,

quarter

value

=

average

monthly

ending

value

$5,448

$5,653

$5,664

$5,847

$5,979

0.07%

-0.07%

0.07%

0.00%

0.00%

-

0.5%

0.0%

0.5%

1.0%

1.5%

0

3,000

6,000

9,000

1Q13

2Q13

3Q13

4Q13

1Q14

Average Loans

Net Charge-offs Ratio

90

100

110

120

130

Manheim Used Vehicle Index*

26

1Q14 Earnings

Conference Call

Credit Quality -

Other Retail

Average Loans and Net Charge-offs Ratios

Key Statistics

Comments

Auto

loan

growth

continued

to

offset

declines

in

student

lending

loan

balances

Net charge-offs and delinquencies remain low with declines on a linked quarter basis

reflecting seasonality

1Q13

4Q13

1Q14

Average Loans

$25,364

$26,059

$26,312

30-89 Delinquencies

0.48%

0.50%

0.40%

90+ Delinquencies

0.16%

0.14%

0.13%

Nonperforming Loans

0.10%

0.09%

0.08%

Revolving

Credit

$3,255

Student

Lending

$3,526

$ in millions

$25,364

$25,224

$25,682

$26,059

$26,312

0.83%

0.76%

0.83%

0.79%

0.69%

0.0%

1.0%

2.0%

3.0%

4.0%

0

10,000

20,000

30,000

40,000

1Q13

2Q13

3Q13

4Q13

1Q14

Average Loans

Net Charge-offs Ratio

Other Retail

Installment

$5,716

Auto Loans

$13,815

27

1Q14 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 751)

Low net charge-offs and delinquencies declined on a linked quarter basis reflecting

seasonality and continued used vehicle value strength

1Q13

4Q13

1Q14

Average Loans

$12,519

$13,409

$13,815

30-89 Delinquencies

0.30%

0.34%

0.26%

90+ Delinquencies

0.03%

0.04%

0.03%

Nonperforming Loans

0.02%

0.02%

0.02%

$ in millions

Auto Loans are included in Other Retail category

Direct: 7%

Wtd Avg FICO: 748

NCO: 0.10%

Indirect: 93%

Wtd Avg FICO: 764

NCO: 0.08%

$12,519

$12,575

$12,946

$13,409

$13,815

0.16%

0.00%

0.09%

0.12%

0.09%

0.0%

0.2%

0.4%

0.6%

0.8%

0

4,000

8,000

12,000

16,000

1Q13

2Q13

3Q13

4Q13

1Q14

Average Loans

Indirect and Direct Channel

Net Charge-offs Ratio

28

1Q14 Earnings

Conference Call

Mortgage Repurchase

Mortgages Repurchased and Make-whole Payments

Mortgage Representation and Warranties Reserve

$ in millions

1Q14

4Q13

3Q13

2Q13

1Q13

Beginning Reserve

$83

$176

$190

$233

$240

Net Realized Losses

(10)

(63)

(13)

(16)

(23)

Change in Reserve

2

(30)

(1)

(27)

16

Ending Reserve

$75

$83

$176

$190

$233

Mortgages

repurchased

and make-whole

payments

$36

$32

$42

$41

$79

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      

= $44 million

29

1Q14 Earnings

Conference Call

Non-GAAP Financial Measures

$ in millions

1Q14

4Q13

3Q13

2Q13

1Q13

Total equity

42,743

$   

41,807

$   

41,552

$   

41,050

$   

40,847

$   

Preferred stock

(4,756)

(4,756)

(4,756)

(4,756)

(4,769)

Noncontrolling interests

(689)

(694)

(1,420)

(1,367)

(1,316)

Goodwill (net of deferred tax liability) (1)

(8,352)

(8,343)

(8,319)

(8,317)

(8,333)

Intangible assets, other than mortgage servicing rights

(804)

(849)

(878)

(910)

(963)

Tangible common equity (a)

28,142

27,165

26,179

25,700

25,466

Tangible common equity (as calculated above)

28,142

27,165

26,179

25,700

25,466

Adjustments (2)

239

224

258

195

81

Common equity tier 1 capital estimated for the Basel III fully

implemented standardized approach (b)

28,381

27,389

26,437

25,895

25,547

Tier 1 capital, determined in accordance with prescribed

regulatory requirements using Basel I definition

33,386

32,707

32,219

31,774

Preferred stock

(4,756)

(4,756)

(4,756)

(4,769)

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

(688)

(686)

(685)

(684)

Tier 1 common equity using Basel I definition (c)

27,942

27,265

26,778

26,321

Note: The Basel III regulatory requirements for March 31, 2013, were based on the proposed rules for the Basel III fully implemented standardized approach released June 2012,

all other periods were based on the final rules for the Basel III fully implemented standardized approach.

(1) Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements beginning March 31, 2014.

(2) Includes net losses on cash flow hedges included in accumulated other comprehensive income and other adjustments.  March 31, 2013, also includes a deduction

      for disallowed mortgage servicing rights.

(3) Includes higher risk-weighting for unfunded loan commitments, investment securities, mortgage servicing rights and other adjustments.  March 31, 2013, also includes

      higher risk-weighting for residential mortgages.

30

1Q14 Earnings

Conference Call

Non-GAAP Financial Measures

$ in millions

1Q14

4Q13

3Q13

2Q13

1Q13

Total assets

371,289

$ 

364,021

$ 

360,681

$ 

353,415

$ 

355,447

$ 

Goodwill (net of deferred tax liability) (1)

(8,352)

(8,343)

(8,319)

(8,317)

(8,333)

Intangible assets, other than mortgage servicing rights

(804)

(849)

(878)

(910)

(963)

Tangible assets (d)

362,133

354,829

351,484

344,188

346,151

Risk-weighted assets, determined in accordance with prescribed

regulatory requirements (e)

302,841

*

297,919

293,155

289,613

289,672

Adjustments (3)

13,238

*

13,712

13,473

12,476

21,021

Risk-weighted assets estimated for the Basel III fully implemented

standardized approach (f)

316,079

*

311,631

306,628

302,089

310,693

Ratios *

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

7.8%

7.7%

7.4%

7.5%

7.4%

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

9.3%

9.1%

8.9%

8.9%

8.8%

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

9.4%

9.3%

9.2%

9.1%

Common equity tier 1 capital to risk-weighted assets estimated for the

Basel III fully implemented standardized approach (b)/(f)

9.0%

8.8%

8.6%

8.6%

8.2%

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

Note: The Basel III regulatory requirements for March 31, 2013, were based on the proposed rules for the Basel III fully implemented standardized approach released June 2012,

all other periods were based on the final rules for the Basel III fully implemented standardized approach.

(1) Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements beginning March 31, 2014.

(2) Includes net losses on cash flow hedges included in accumulated other comprehensive income and other adjustments.  March 31, 2013, also includes a deduction

      for disallowed mortgage servicing rights.

(3) Includes higher risk-weighting for unfunded loan commitments, investment securities, mortgage servicing rights and other adjustments.  March 31, 2013, also includes

      higher risk-weighting for residential mortgages.

U.S. Bancorp

1Q14 Earnings

Conference Call

U.S. Bancorp

1Q14 Earnings

Conference Call

April 16, 2014