8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 18, 2017

U.S. BANCORP

(Exact name of registrant as specified in its charter)

1-6880

(Commission File Number)

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

800 Nicollet Mall

Minneapolis, Minnesota 55402

(Address of principal executive offices and zip code)

(651) 466-3000

(Registrant’s telephone number, including area code)

(not applicable)

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

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

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

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

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

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

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On January 18, 2017, U.S. Bancorp (the “Company”) issued a press release reporting quarter ended December 31, 2016 results, and posted on its website its 4Q16 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 4Q16 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated herein by reference. The information included in the 4Q16 Earnings Conference Call Presentation is considered to be “furnished” under the Securities Exchange Act of 1934. The press release and 4Q16 Earnings Conference Call Presentation contain forward-looking statements regarding the Company and each includes a cautionary statement identifying important factors that could cause actual results to differ materially from those anticipated.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(c) Exhibits.

99.1 Press Release issued by U.S. Bancorp on January 18, 2017, deemed “filed” under the Securities Exchange Act of 1934.

99.2 4Q16 Earnings Conference Call Presentation, deemed “furnished” under the Securities Exchange Act of 1934.

SIGNATURES

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

U.S. BANCORP

By /s/    Craig E. Gifford      

Craig E. Gifford

Executive Vice President and
Controller

DATE: January 18, 2017

EX-99.1

Exhibit 99.1

	News Release
	Contacts: Dana Ripley Media (612) 303-3167	Jennifer Thompson Investors/Analysts (612) 303-0778

U.S. BANCORP REPORTS FOURTH QUARTER AND FULL YEAR 2016 EARNINGS

Record Net Income and Earnings Per Share for the Full Year 2016

Full year return on average assets of 1.36 percent and average common equity of 13.4 percent

Returned 79 percent of full year earnings to shareholders

MINNEAPOLIS, January 18, 2017 — U.S. Bancorp (NYSE: USB) today reported net income of $1,478 million for the fourth quarter of 2016, or $0.82 per diluted common share, compared with $1,476 million, or $0.80 per diluted common share, in the fourth quarter of 2015.

Highlights for the full year of 2016 included:

• Record diluted earnings per common share of $3.24, which was 2.5 percent higher than 2015

• Industry-leading return on average assets of 1.36 percent and average common equity of 13.4 percent

• Returned 79 percent of 2016 earnings to shareholders through dividends and share buybacks

Highlights for the fourth quarter of 2016 included:

• Average total loans grew 1.1 percent on a linked quarter basis and 6.2 percent over the fourth quarter of 2015

• Average total deposits grew 3.3 percent on a linked quarter basis and 11.8 percent over the fourth quarter of 2015

• Net interest income (taxable-equivalent basis) grew 2.1 percent on a linked quarter basis and 4.6 percent year-over-year

• Average earning assets grew 2.1 percent on a linked quarter basis and 7.7 percent year-over-year

• Net interest margin of 2.98 percent for the fourth quarter of 2016 was unchanged from the third quarter of 2016, and down 8 basis points from the fourth quarter of 2015, primarily due to changes in the loan and investment portfolio mix and higher average cash balances

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• Noninterest income increased 3.9 percent on a year-over-year basis

• Payment services revenue increased 4.0 percent (5.6 percent excluding the impact of foreign currency rate changes)

• Trust and investment management fees increased 9.5 percent

• Mortgage banking revenue increased 13.7 percent

• Credit quality was stable relative to the third quarter and year-over-year

• Strong capital position. At December 31, 2016, the estimated common equity tier 1 capital to risk-weighted assets ratio was 9.1 percent using the Basel III fully implemented standardized approach and was 11.7 percent using the Basel III fully implemented advanced approaches method.

EARNINGS SUMMARY																Table 1
($ in millions, except per-share data)							Percent Change 4Q16 vs 3Q16			Percent Change 4Q16 vs 4Q15
	4Q 2016		3Q 2016		4Q 2015							Full Year 2016		Full Year 2015		Percent Change
Net income attributable to U.S. Bancorp	$	1,478	$	1,502	$	1,476		(1.6	)		.1	$	5,888	$	5,879		.2
Diluted earnings per common share	$	.82	$	.84	$	.80		(2.4	)		2.5	$	3.24	$	3.16		2.5
Return on average assets (%)		1.32		1.36		1.41							1.36		1.44
Return on average common equity (%)		13.1		13.5		13.7							13.4		14.0
Net interest margin (%)		2.98		2.98		3.06							3.01		3.05
Efficiency ratio (%) (a)		55.3		54.5		53.9							54.9		53.8
Tangible efficiency ratio (%) (a)		54.5		53.7		53.0							54.0		53.0
Dividends declared per common share	$	.280	$	.280	$	.255		—			9.8	$	1.070	$	1.010		5.9
Book value per common share (period end)	$	24.63	$	24.78	$	23.28		(.6	)		5.8

(a) See Non-GAAP Financial Measures reconciliation on page 21

Net income attributable to U.S. Bancorp was $1,478 million for the fourth quarter of 2016, 0.1 percent higher than the $1,476 million for the fourth quarter of 2015, and 1.6 percent lower than the $1,502 million for the third quarter of 2016. Diluted earnings per common share of $0.82 in the fourth quarter of 2016 were $0.02 higher than the fourth quarter of 2015 and $0.02 lower than the third quarter of 2016. The increase in net income year-over-year was principally due to total net revenue growth, including an increase in net interest income of 4.6 percent on a taxable-equivalent basis (4.8 percent as reported on a GAAP basis), mainly a result of loan growth, and an increase in noninterest income of 3.9 percent, driven by higher payment services revenue, trust and investment management fees and mortgage banking revenue. This

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increase was partially offset by higher noninterest expense related to increased compensation expense due to hiring to support business growth and compliance programs as well as merit increases and higher variable compensation expense. The decrease in net income on a linked quarter basis was principally due to a seasonal increase in noninterest expense of 2.5 percent driven by investments in tax-advantaged projects and professional services expense, along with an increase in the provision for credit losses due to loan growth. These increases were partially offset by an increase in total net revenue of 0.9 percent, reflecting an increase in net interest income of 2.1 percent on a taxable-equivalent basis and as reported on a GAAP basis, partially offset by a decrease in noninterest income of 0.6 percent driven by lower mortgage banking revenue.

U.S. Bancorp Chairman and Chief Executive Officer Richard K. Davis said, “U.S. Bancorp delivered an outstanding performance in 2016 with record net income, EPS, and revenue. In a challenging year where the economic environment was often unpredictable, we delivered industry-leading returns, we made important investments in our long-term growth strategy, and we returned 79 percent of our earnings to shareholders through dividends and share buybacks.

“As importantly, the fundamental elements of our core businesses are solid and we are well positioned for growth as we enter 2017. With an intense focus on our customers and providing them with innovative products and services, we are optimistic we will continue to create outstanding value for our shareholders, customers, and communities.

“Our success in 2016 was a result of the tremendous efforts of our 70,000 employees working hard as One U.S. Bank to help our customers build financially secure futures – and they did it with ethics and integrity. For the second year, the Ethisphere Institute named U.S. Bank to its World’s Most Ethical Companies list. For the tenth year, the Ponemon Institute named U.S. Bank the Most Trusted Bank. For the sixth year, FORTUNE magazine named U.S. Bank the number one superregional bank. And for the first time, MONEY magazine named U.S. Bank the Best Big Bank. We are proud of these achievements because they are a reflection of our people and our culture. As usual, you can expect U.S. Bank to deliver consistent, predictable, and repeatable results.”

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INCOME STATEMENT HIGHLIGHTS																						Table 2
($ in millions, except per-share data)										Percent			Percent
										Change			Change
	4Q			3Q			4Q			4Q16 vs			4Q16 vs			Full Year			Full Year			Percent
	2016			2016			2015			3Q16			4Q15			2016			2015			Change
Net interest income	$	2,955		$	2,893		$	2,819			2.1			4.8		$	11,528		$	11,001			4.8
Taxable-equivalent adjustment		49			50			52			(2.0	)		(5.8	)		203			213			(4.7	)
Net interest income (taxable-equivalent basis)		3,004			2,943			2,871			2.1			4.6			11,731			11,214			4.6
Noninterest income		2,431			2,445			2,340			(.6	)		3.9			9,577			9,092			5.3
Total net revenue		5,435			5,388			5,211			.9			4.3			21,308			20,306			4.9
Noninterest expense		3,004			2,931			2,809			2.5			6.9			11,676			10,931			6.8
Income before provision and income taxes		2,431			2,457			2,402			(1.1	)		1.2			9,632			9,375			2.7
Provision for credit losses		342			325			305			5.2			12.1			1,324			1,132			17.0
Income before taxes		2,089			2,132			2,097			(2.0	)		(.4	)		8,308			8,243			.8
Income taxes and taxable-equivalent adjustment		598			616			608			(2.9	)		(1.6	)		2,364			2,310			2.3
Net income		1,491			1,516			1,489			(1.6	)		.1			5,944			5,933			.2
Net (income) loss attributable to noncontrolling interests		(13	)		(14	)		(13	)		7.1			—			(56	)		(54	)		(3.7	)
Net income attributable to U.S. Bancorp	$	1,478		$	1,502		$	1,476			(1.6	)		.1		$	5,888		$	5,879			.2
Net income applicable to U.S. Bancorp common shareholders	$	1,391		$	1,434		$	1,404			(3.0	)		(.9	)	$	5,589		$	5,608			(.3	)
Diluted earnings per common share	$	.82		$	.84		$	.80			(2.4	)		2.5		$	3.24		$	3.16			2.5

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NET INTEREST INCOME																						Table 3
(Taxable-equivalent basis; $ in millions)
										Change			Change
	4Q			3Q			4Q			4Q16 vs			4Q16 vs			Full Year			Full Year
	2016			2016			2015			3Q16			4Q15			2016			2015			Change
Components of net interest income
Income on earning assets	$	3,424		$	3,371		$	3,209		$	53		$	215		$	13,375		$	12,619		$	756
Expense on interest-bearing liabilities		420			428			338			(8	)		82			1,644			1,405			239
Net interest income	$	3,004		$	2,943		$	2,871		$	61		$	133		$	11,731		$	11,214		$	517
Average yields and rates paid
Earning assets yield		3.40	%		3.41	%		3.42	%		(.01	)%		(.02	)%		3.43	%		3.43	%		.00	%
Rate paid on interest-bearing liabilities		.57			.59			.50			(.02	)		.07			.57			.52			.05
Gross interest margin		2.83	%		2.82	%		2.92	%		.01	%		(.09	)%		2.86	%		2.91	%		(.05	)%
Net interest margin		2.98	%		2.98	%		3.06	%		—	%		(.08	)%		3.01	%		3.05	%		(.04	)%
Average balances
Investment securities (a)	$	110,386		$	108,109		$	105,536		$	2,277		$	4,850		$	107,922		$	103,161		$	4,761
Loans		272,671			269,637			256,692			3,034			15,979			267,811			250,459			17,352
Earning assets		401,971			393,783			373,091			8,188			28,880			389,877			367,445			22,432
Interest-bearing liabilities		295,288			290,331			269,940			4,957			25,348			287,760			269,474			18,286

(a) Excludes unrealized gain (loss)

Net Interest Income

Net interest income on a taxable-equivalent basis in the fourth quarter of 2016 was $3,004 million, an increase of $133 million (4.6 percent) over the fourth quarter of 2015. The increase was principally driven by loan growth partially offset by a lower net interest margin. Average earning assets were $28.9 billion (7.7 percent) higher than the fourth quarter of 2015, driven by increases of $16.0 billion (6.2 percent) in average total loans, $4.9 billion (4.6 percent) in average investment securities and higher average cash balances. Net interest income on a taxable-equivalent basis increased $61 million (2.1 percent) linked quarter, primarily due to growth in average earning assets. Average earning assets were $8.2 billion (2.1 percent) higher on a linked quarter basis, reflecting growth in average total loans of $3.0 billion (1.1 percent), average investment securities of $2.3 billion (2.1 percent) and higher average cash balances.

The net interest margin in the fourth quarter of 2016 was 2.98 percent, compared with 3.06 percent in the fourth quarter of 2015, and 2.98 percent in the third quarter of 2016. The decrease in the net interest margin of 8 basis points on a year-over-year basis was principally due to lower yields on securities purchases, lower reinvestment rates on maturing securities and maintaining higher cash balances. On a

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linked quarter basis, net interest margin was impacted by higher average cash balances as well as lower average rates on new securities purchases and lower reinvestment rates on maturing securities, offset by the favorable impact of interest rates on loans.

Investment Securities

Average investment securities in the fourth quarter of 2016 were $4.9 billion (4.6 percent) higher year-over-year and $2.3 billion (2.1 percent) higher than the prior quarter. These increases were primarily due to purchases of U.S. Treasury and U.S. government agency-backed securities, net of prepayments and maturities, to support liquidity.

AVERAGE LOANS																	Table 4
($ in millions)							Percent			Percent
							Change			Change
	4Q		3Q		4Q		4Q16 vs			4Q16 vs			Full Year		Full Year		Percent
	2016		2016		2015		3Q16			4Q15			2016		2015		Change
Commercial	$	88,448	$	87,067	$	81,592		1.6			8.4		$	86,754	$	78,815		10.1
Lease financing		5,359		5,302		5,211		1.1			2.8			5,289		5,268		.4
Total commercial		93,807		92,369		86,803		1.6			8.1			92,043		84,083		9.5
Commercial mortgages		31,767		31,888		31,830		(.4	)		(.2	)		31,860		32,378		(1.6	)
Construction and development		11,624		11,486		10,401		1.2			11.8			11,180		10,037		11.4
Total commercial real estate		43,391		43,374		42,231		—			2.7			43,040		42,415		1.5
Residential mortgages		56,718		56,284		52,970		.8			7.1			55,682		51,840		7.4
Credit card		20,942		20,628		18,838		1.5			11.2			20,490		18,057		13.5
Retail leasing		6,191		5,773		5,265		7.2			17.6			5,619		5,563		1.0
Home equity and second mortgages		16,444		16,470		16,241		(.2	)		1.2			16,419		16,046		2.3
Other		31,245		30,608		29,556		2.1			5.7			30,292		27,470		10.3
Total other retail		53,880		52,851		51,062		1.9			5.5			52,330		49,079		6.6
Total loans, excluding covered loans		268,738		265,506		251,904		1.2			6.7			263,585		245,474		7.4
Covered loans		3,933		4,131		4,788		(4.8	)		(17.9	)		4,226		4,985		(15.2	)
Total loans	$	272,671	$	269,637	$	256,692		1.1			6.2		$	267,811	$	250,459		6.9

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Loans

Average total loans were $16.0 billion (6.2 percent) higher in the fourth quarter of 2016 than the fourth quarter of 2015 (5.6 percent excluding the credit card portfolio acquisition at the end of the fourth quarter of 2015). The increase was due to growth in total commercial loans (8.1 percent), residential mortgages (7.1 percent), total other retail loans (5.5 percent), total commercial real estate (2.7 percent) and credit card loans (11.2 percent). Excluding the credit card portfolio acquisition, credit card loans were 2.6 percent higher than the fourth quarter of 2015. These increases were partially offset by a decrease in the run-off covered loans portfolio (17.9 percent). Average total loans were $3.0 billion (1.1 percent) higher in the fourth quarter of 2016 than the third quarter of 2016. This increase was driven by linked quarter growth in total commercial loans (1.6 percent), total other retail loans (1.9 percent), residential mortgages (0.8 percent), and credit card loans (1.5 percent).

AVERAGE DEPOSITS																	Table 5
($ in millions)							Percent			Percent
							Change			Change
	4Q		3Q		4Q		4Q16 vs			4Q16 vs			Full Year		Full Year		Percent
	2016		2016		2015		3Q16			4Q15			2016		2015		Change
Noninterest-bearing deposits	$	84,892	$	82,021	$	83,894		3.5			1.2		$	81,176	$	79,203		2.5
Interest-bearing savings deposits
Interest checking		64,647		63,456		57,109		1.9			13.2			61,726		55,974		10.3
Money market savings		106,637		99,921		82,828		6.7			28.7			96,518		79,266		21.8
Savings accounts		41,310		40,695		37,991		1.5			8.7			40,382		37,150		8.7
Total of savings deposits		212,594		204,072		177,928		4.2			19.5			198,626		172,390		15.2
Time deposits		31,697		32,455		32,683		(2.3	)		(3.0	)		33,008		35,558		(7.2	)
Total interest-bearing deposits		244,291		236,527		210,611		3.3			16.0			231,634		207,948		11.4
Total deposits	$	329,183	$	318,548	$	294,505		3.3			11.8		$	312,810	$	287,151		8.9

Deposits

Average total deposits for the fourth quarter of 2016 were $34.7 billion (11.8 percent) higher than the fourth quarter of 2015. Average noninterest-bearing deposits increased $1.0 billion (1.2 percent) year-over-year mainly in Consumer and Small Business Banking, partially offset by a decline in deposits within Wealth Management and Securities Services. Average total savings deposits were $34.7 billion (19.5 percent) higher year-over-year, the result of growth across all business lines. Average time deposits were $1.0 billion (3.0 percent) lower than the prior year quarter. Changes in time deposits are largely related to those deposits

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managed as an alternative to other funding sources such as wholesale borrowing, based largely on relative pricing and liquidity characteristics.

Average total deposits increased $10.6 billion (3.3 percent) over the third quarter of 2016. On a linked quarter basis, average noninterest-bearing deposits grew $2.9 billion (3.5 percent) and average total savings deposits grew $8.5 billion (4.2 percent) reflecting increases across all business lines. Average time deposits, which are managed based on funding needs, relative pricing, and liquidity characteristics, decreased $758 million (2.3 percent) on a linked quarter basis.

NONINTEREST INCOME																	Table 6
($ in millions)							Percent			Percent
							Change			Change
	4Q		3Q		4Q		4Q16 vs			4Q16 vs			Full Year		Full Year		Percent
	2016		2016		2015		3Q16			4Q15			2016		2015		Change
Credit and debit card revenue	$	316	$	299	$	294		5.7			7.5		$	1,177	$	1,070		10.0
Corporate payment products revenue		171		190		170		(10.0	)		.6			712		708		.6
Merchant processing services		404		412		393		(1.9	)		2.8			1,592		1,547		2.9
ATM processing services		87		87		79		—			10.1			338		318		6.3
Trust and investment management fees		368		362		336		1.7			9.5			1,427		1,321		8.0
Deposit service charges		186		192		182		(3.1	)		2.2			725		702		3.3
Treasury management fees		147		147		139		—			5.8			583		561		3.9
Commercial products revenue		217		219		222		(.9	)		(2.3	)		871		867		.5
Mortgage banking revenue		240		314		211		(23.6	)		13.7			979		906		8.1
Investment products fees		38		41		44		(7.3	)		(13.6	)		158		185		(14.6	)
Securities gains (losses), net		6		10		1		(40.0	)		nm			22		—		nm
Other		251		172		269		45.9			(6.7	)		993		907		9.5
Total noninterest income	$	2,431	$	2,445	$	2,340		(.6	)		3.9		$	9,577	$	9,092		5.3

Noninterest Income

Fourth quarter noninterest income was $2,431 million, which was $91 million (3.9 percent) higher than the fourth quarter of 2015, reflecting increases in payment services revenue, trust and investment management fees, and mortgage banking revenue, partially offset by a decline in other noninterest income. Credit and debit card revenue increased $22 million (7.5 percent) reflecting higher transaction volumes including the impact of acquired portfolios. Merchant processing services revenue increased $11 million (2.8 percent) as a result of an increase in product fees and higher volumes. Adjusted for the approximate $11 million impact of foreign currency rate changes, year-over-year merchant processing services revenue increased approximately 5.6 percent. Trust and investment management fees increased $32 million (9.5

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percent) reflecting lower money market fee waivers along with account growth, an increase in assets under management, and improved market conditions. Mortgage banking revenue increased $29 million (13.7 percent) over a year ago driven by higher origination and sales volumes. Other income decreased $18 million (6.7 percent) compared with the prior year quarter, primarily reflecting lower income from leasing residuals and the impact of a gain on the sale of a deposit portfolio in the fourth quarter of 2015 partially offset by stronger trading income and higher fourth quarter 2016 equity investment income.

Noninterest income was $14 million (0.6 percent) lower in the fourth quarter of 2016 than the third quarter of 2016 principally driven by lower mortgage banking revenue and seasonally lower corporate payment products revenue, partially offset by seasonally higher credit and debit card revenue and an increase in other noninterest income. Mortgage banking revenue decreased $74 million (23.6 percent) reflecting lower origination and sales volume, while corporate payment products revenue was $19 million (10.0 percent) lower, reflecting seasonally lower government-related transaction volumes. Credit and debit card revenue increased $17 million (5.7 percent), driven by seasonally higher sales volumes. The increase in other income of $79 million (45.9 percent) was primarily driven by changes in equity investment income.

NONINTEREST EXPENSE																	Table 7
($ in millions)							Percent			Percent
							Change			Change
	4Q		3Q		4Q		4Q16 vs			4Q16 vs			Full Year		Full Year		Percent
	2016		2016		2015		3Q16			4Q15			2016		2015		Change
Compensation	$	1,357	$	1,329	$	1,212		2.1			12.0		$	5,212	$	4,812		8.3
Employee benefits		261		280		272		(6.8	)		(4.0	)		1,119		1,167		(4.1	)
Net occupancy and equipment		247		250		246		(1.2	)		.4			988		991		(.3	)
Professional services		156		127		125		22.8			24.8			502		423		18.7
Marketing and business development		107		102		96		4.9			11.5			435		361		20.5
Technology and communications		238		243		230		(2.1	)		3.5			955		887		7.7
Postage, printing and supplies		75		80		74		(6.3	)		1.4			311		297		4.7
Other intangibles		45		45		46		—			(2.2	)		179		174		2.9
Other		518		475		508		9.1			2.0			1,975		1,819		8.6
Total noninterest expense	$	3,004	$	2,931	$	2,809		2.5			6.9		$	11,676	$	10,931		6.8

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U.S. Bancorp Reports Fourth Quarter 2016 Results

January 18, 2017

Page 10

Noninterest Expense

Fourth quarter noninterest expense was $3,004 million, $195 million (6.9 percent) higher than the fourth quarter of 2015, primarily due to higher compensation, professional services and marketing expenses. Compensation expense increased $145 million (12.0 percent) principally due to the impact of hiring to support business growth and compliance programs, merit increases, and higher variable compensation. Professional services increased $31 million (24.8 percent) primarily due to compliance programs and implementation costs of capital investments to support business growth. Marketing increased $11 million (11.5 percent) to support new business development. Partially offsetting these increases was an $11 million (4.0 percent) decrease in employee benefits expense mainly due to lower pension and healthcare costs.

Noninterest expense increased $73 million (2.5 percent) on a linked quarter basis driven by higher other noninterest expense, professional services expense and compensation expense. Other noninterest expense increased $43 million (9.1 percent) primarily due to seasonally higher costs related to investments in tax-advantaged projects. Professional services expense was $29 million (22.8 percent) higher due to seasonally higher costs across a majority of the lines of business including capital investments, and risk and compliance activities. Compensation expense increased $28 million (2.1 percent) primarily due to increased staffing to support business investment and compliance programs. Partially offsetting these increases was a $19 million (6.8 percent) decrease in employee benefits expense driven by lower healthcare costs.

Provision for Income Taxes

The provision for income taxes for the fourth quarter of 2016 resulted in a tax rate on a taxable-equivalent basis of 28.6 percent (effective tax rate of 26.9 percent), compared with 29.0 percent (effective tax rate of 27.2 percent) in the fourth quarter of 2015, and 28.9 percent (effective tax rate of 27.2 percent) in the third quarter of 2016.

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U.S. Bancorp Reports Fourth Quarter 2016 Results

January 18, 2017

Page 11

ALLOWANCE FOR CREDIT LOSSES																									Table 8
($ in millions)	4Q						3Q						2Q						1Q						4Q
	2016			%(b)			2016			% (b)			2016			% (b)			2016			% (b)			2015			% (b)
Balance, beginning of period	$	4,338					$	4,329					$	4,320					$	4,306					$	4,306
Net charge-offs
Commercial		71			.32			84			.38			74			.34			78			.37			58			.28
Lease financing		5			.37			3			.23			5			.38			5			.38			5			.38
Total commercial		76			.32			87			.37			79			.34			83			.37			63			.29
Commercial mortgages		(3	)		(.04	)		5			.06			(4	)		(.05	)		(2	)		(.03	)		2			.02
Construction and development		(6	)		(.21	)		(4	)		(.14	)		4			.15			(3	)		(.11	)		(2	)		(.08	)
Total commercial real estate		(9	)		(.08	)		1			.01			—			—			(5	)		(.05	)		—			—
Residential mortgages		12			.08			12			.08			17			.12			19			.14			16			.12
Credit card		181			3.44			161			3.11			170			3.39			164			3.26			166			3.50
Retail leasing		1			.06			1			.07			2			.15			1			.08			1			.08
Home equity and second mortgages		(1	)		(.02	)		1			.02			(1	)		(.02	)		2			.05			6			.15
Other		62			.79			52			.68			50			.68			51			.69			53			.71
Total other retail		62			.46			54			.41			51			.40			54			.43			60			.47
Total net charge-offs, excluding covered loans		322			.48			315			.47			317			.49			315			.49			305			.48
Covered loans		—			—			—			—			—			—			—			—			—			—
Total net charge-offs		322			.47			315			.46			317			.48			315			.48			305			.47
Provision for credit losses		342						325						327						330						305
Other changes (a)		(1	)					(1	)					(1	)					(1	)					—
Balance, end of period	$	4,357					$	4,338					$	4,329					$	4,320					$	4,306
Components
Allowance for loan losses	$	3,813					$	3,797					$	3,806					$	3,853					$	3,863
Liability for unfunded credit commitments		544						541						523						467						443
Total allowance for credit losses	$	4,357					$	4,338					$	4,329					$	4,320					$	4,306
Gross charge-offs	$	405					$	398					$	407					$	405					$	381
Gross recoveries	$	83					$	83					$	90					$	90					$	76
Allowance for credit losses as a percentage of
Period-end loans, excluding covered loans		1.60						1.61						1.62						1.65						1.67
Nonperforming loans, excluding covered loans		317						309						311						302						360
Nonperforming assets, excluding covered assets		275						264						263						255						288
Period-end loans		1.59						1.60						1.61						1.63						1.65
Nonperforming loans		318						310						312						303						361
Nonperforming assets		272						261						259						251						283

(a) Includes net changes in credit losses to be reimbursed by the FDIC and 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, and the impact of any loan sales.

(b) Annualized and calculated on average loan balances

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U.S. Bancorp Reports Fourth Quarter 2016 Results

January 18, 2017

Page 12

Credit Quality

The Company’s provision for credit losses for the fourth quarter of 2016 was $342 million, which was $17 million (5.2 percent) higher than the prior quarter and $37 million (12.1 percent) higher than the fourth quarter of 2015. Credit quality was relatively stable compared with the third quarter of 2016.

The provision for credit losses was $20 million higher than net charge-offs in the fourth quarter of 2016, $10 million higher than net charge-offs in the third quarter of 2016, and equal to net charge-offs in the fourth quarter of 2015. The reserve build for the fourth quarter of 2016 was driven by portfolio growth, partially offset by improvement in residential mortgage and home equity credit quality. Total net charge-offs in the fourth quarter of 2016 were $322 million, compared with $315 million in the third quarter of 2016, and $305 million in the fourth quarter of 2015. Net charge-offs increased $7 million (2.2 percent) compared with the third quarter of 2016 reflecting a seasonal increase in credit card loan net charge-offs, offset by declines in commercial and commercial real estate loan net charge-offs. Net charge-offs increased $17 million (5.6 percent) compared with the fourth quarter of 2015 primarily due to higher commercial and credit card loan net charge-offs, partially offset by lower charge-offs related to commercial real estate and residential mortgages. The net charge-off ratio was 0.47 percent in the fourth quarter of 2016, compared with 0.46 percent in the third quarter of 2016 and 0.47 percent in the fourth quarter of 2015.

The allowance for credit losses was $4,357 million at December 31, 2016, compared with $4,338 million at September 30, 2016, and $4,306 million at December 31, 2015. The ratio of the allowance for credit losses to period-end loans was 1.59 percent at December 31, 2016, compared with 1.60 percent at September 30, 2016, and 1.65 percent at December 31, 2015. The ratio of the allowance for credit losses to nonperforming loans was 318 percent at December 31, 2016, compared with 310 percent at September 30, 2016, and 361 percent at December 31, 2015.

Nonperforming assets were $1,603 million at December 31, 2016, compared with $1,664 million at September 30, 2016, and $1,523 million at December 31, 2015. The ratio of nonperforming assets to loans and other real estate was 0.59 percent at December 31, 2016, compared with 0.61 percent at September 30, 2016, and 0.58 percent at December 31, 2015. The $61 million (3.7 percent) decrease in nonperforming assets on a linked quarter basis was driven by improvements in commercial loans, residential mortgages and other real estate. The $80 million (5.3 percent) increase in nonperforming assets on a year-over-year basis was driven by commercial loans within the energy portfolio, partially offset by improvements in the Company’s residential portfolio. Accruing loans 90 days or more past due were $764 million ($552 million

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January 18, 2017

Page 13

excluding covered loans) at December 31, 2016, compared with $748 million ($518 million excluding covered loans) at September 30, 2016, and $831 million ($541 million excluding covered loans) at December 31, 2015.

DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES									Table 9
(Percent)
	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
	2016		2016		2016		2016		2015
Delinquent loan ratios - 90 days or more past due excluding nonperforming loans
Commercial		.06		.05		.05		.05		.05
Commercial real estate		.02		.02		.03		.04		.03
Residential mortgages		.27		.28		.27		.31		.33
Credit card		1.16		1.11		.98		1.10		1.09
Other retail		.15		.14		.13		.15		.15
Total loans, excluding covered loans		.20		.19		.18		.20		.21
Covered loans		5.53		5.72		5.81		6.23		6.31
Total loans		.28		.28		.27		.30		.32
Delinquent loan ratios - 90 days or more past due including nonperforming loans
Commercial		.57		.61		.58		.57		.25
Commercial real estate		.31		.26		.27		.28		.33
Residential mortgages		1.31		1.37		1.39		1.54		1.66
Credit card		1.18		1.13		1.00		1.14		1.13
Other retail		.45		.42		.43		.45		.46
Total loans, excluding covered loans		.71		.72		.70		.75		.67
Covered loans		5.68		5.89		5.98		6.39		6.48
Total loans		.78		.79		.79		.84		.78

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U.S. Bancorp Reports Fourth Quarter 2016 Results

January 18, 2017

Page 14

ASSET QUALITY									Table 10
($ in millions)
	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
	2016		2016		2016		2016		2015
Nonperforming loans
Commercial	$	443	$	477	$	450	$	457	$	160
Lease financing		40		40		39		16		14
Total commercial		483		517		489		473		174
Commercial mortgages		87		98		91		94		92
Construction and development		37		7		12		10		35
Total commercial real estate		124		105		103		104		127
Residential mortgages		595		614		628		677		712
Credit card		3		4		5		7		9
Other retail		157		153		157		157		162
Total nonperforming loans, excluding covered loans		1,362		1,393		1,382		1,418		1,184
Covered loans		6		7		7		7		8
Total nonperforming loans		1,368		1,400		1,389		1,425		1,192
Other real estate (a)		186		213		229		242		280
Covered other real estate (a)		26		28		34		33		32
Other nonperforming assets		23		23		20		19		19
Total nonperforming assets (b)	$	1,603	$	1,664	$	1,672	$	1,719	$	1,523
Total nonperforming assets, excluding covered assets	$	1,571	$	1,629	$	1,631	$	1,679	$	1,483
Accruing loans 90 days or more past due, excluding covered loans	$	552	$	518	$	478	$	528	$	541
Accruing loans 90 days or more past due	$	764	$	748	$	724	$	804	$	831
Performing restructured loans, excluding GNMA and covered loans	$	2,557	$	2,672	$	2,676	$	2,735	$	2,766
Performing restructured GNMA and covered loans	$	1,604	$	1,375	$	1,602	$	1,851	$	1,944
Nonperforming assets to loans plus ORE, excluding covered assets (%)		.58		.61		.62		.64		.58
Nonperforming assets to loans plus ORE (%)		.59		.61		.62		.65		.58

(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.

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U.S. Bancorp Reports Fourth Quarter 2016 Results

January 18, 2017

Page 15

COMMON SHARES													Table 11
(Millions)	4Q			3Q			2Q			1Q			4Q
	2016			2016			2016			2016			2015
Beginning shares outstanding		1,705			1,719			1,732			1,745			1,754
Shares issued for stock incentive plans, acquisitions and other corporate purposes		6			2			2			3			1
Shares repurchased		(14	)		(16	)		(15	)		(16	)		(10	)
Ending shares outstanding		1,697			1,705			1,719			1,732			1,745

CAPITAL POSITION													Table 12
($ in millions)	Dec 31			Sep 30			Jun 30			Mar 31			Dec 31
	2016			2016			2016			2016			2015
Total U.S. Bancorp shareholders’ equity	$	47,298		$	47,759		$	47,390		$	46,755		$	46,131
Standardized Approach
Basel III transitional standardized approach
Common equity tier 1 capital	$	33,720		$	33,827		$	33,444		$	32,827		$	32,612
Tier 1 capital		39,421			39,531			39,148			38,532			38,431
Total risk-based capital		47,355			47,452			47,049			45,412			45,313
Common equity tier 1 capital ratio		9.4	%		9.5	%		9.5	%		9.5	%		9.6	%
Tier 1 capital ratio		11.0			11.1			11.1			11.1			11.3
Total risk-based capital ratio		13.2			13.3			13.4			13.1			13.3
Leverage ratio		9.0			9.2			9.3			9.3			9.5
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach (a)		9.1			9.3			9.3			9.2			9.1
Advanced Approaches
Common equity tier 1 capital to risk-weighted assets for the Basel III transitional advanced approaches		12.2			12.4			12.3			12.3			12.5
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches (a)		11.7			12.1			12.0			11.9			11.9
Tangible common equity to tangible assets (a)		7.5			7.5			7.6			7.7			7.6
Tangible common equity to risk-weighted assets (a)		9.2			9.3			9.3			9.3			9.2

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 following four years to full implementation by January 1, 2018. Basel III includes two comprehensive methodologies for calculating risk-weighted assets: a general standardized approach and more risk-sensitive advanced approaches, with the Company’s capital adequacy being evaluated against the methodology that is most restrictive.

(a) See Non-GAAP Financial Measures reconciliation on page 21

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U.S. Bancorp Reports Fourth Quarter 2016 Results

January 18, 2017

Page 16

Capital Management

Total U.S. Bancorp shareholders’ equity was $47.3 billion at December 31, 2016, compared with $47.8 billion at September 30, 2016, and $46.1 billion at December 31, 2015. During the fourth quarter, the Company returned 81 percent of earnings to shareholders through dividends and share buybacks.

All regulatory ratios continue to be in excess of “well-capitalized” requirements. The estimated common equity tier 1 capital to risk-weighted assets ratio using the Basel III fully implemented standardized approach was 9.1 percent at December 31, 2016, compared with 9.3 percent at September 30, 2016, and 9.1 percent at December 31, 2015. The decline from the third quarter of 2016 in the common equity tier 1 ratio was principally due to the impact of rising interest rates on unrealized gains (losses) of securities available-for-sale. The estimated common equity tier 1 capital to risk-weighted assets ratio using the Basel III fully implemented advanced approaches method was 11.7 percent at December 31, 2016, compared with 12.1 percent at September 30, 2016, and 11.9 percent at December 31, 2015.

On Wednesday, January 18, 2017, at 8:00 a.m. CST, Richard K. Davis, chairman and chief executive officer, and Terry Dolan, vice chairman and chief financial officer, will host a conference call to review the financial results. The conference call will be available online or by telephone. 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 near the bottom of the page. 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 17948161. For those unable to participate during the live call, a recording will be available at approximately 11:00 a.m. CST on Wednesday, January 18 and be accessible through Wednesday, January 25 at 11:00 p.m. CST. To access the recorded message within the United States and Canada, dial 855-859-2056. If calling from outside the United States and Canada, please dial 404-537-3406 to access the recording. The conference ID is 17948161.

Minneapolis-based U.S. Bancorp (NYSE: USB), with $446 billion in assets as of December 31, 2016, is the parent company of U.S. Bank National Association, the fifth largest commercial bank in the United States. The Company operates 3,106 banking offices in 25 states and 4,842 ATMs and provides a comprehensive line of banking, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.

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U.S. Bancorp Reports Fourth Quarter 2016 Results

January 18, 2017

Page 17

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 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. Stress in the commercial real estate markets, as well as a downturn in the residential real estate markets could cause 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 (which could result, in part, from the United Kingdom’s withdrawal from the European Union); 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; litigation; increased competition from both banks and non-banks; changes in customer behavior and preferences; breaches in data security; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputational 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, 2015, on file with the Securities and Exchange Commission, including the sections entitled “Risk Factors” and “Corporate Risk Profile” contained in Exhibit 13, and all subsequent filings with the Securities and Exchange Commission under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934. However, factors other than these also could adversely affect U.S. Bancorp’s results, and the reader should not consider these factors to be a complete set of all potential risks or uncertainties. Forward-looking statements speak only as of the date hereof, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.

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U.S. Bancorp Reports Fourth Quarter 2016 Results

January 18, 2017

Page 18

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,

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

• Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches.

These capital 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 of the currently effective ratios, which are subject to certain transitional provisions, temporarily excludes a portion of unrealized gains and losses related to available-for-sale securities and retirement plan obligations, and includes a portion of capital related to intangible assets, other than mortgage servicing rights. These capital 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 capital measures disclosed by the Company may be considered non-GAAP financial measures.

The Company also discloses net interest income and related ratios and analysis on a taxable-equivalent basis, which may also be considered non-GAAP financial measures. The Company believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures, including the efficiency ratio and net interest margin utilize net interest income on a taxable-equivalent basis.

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

###

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U.S. Bancorp

Consolidated Statement of Income

	Three Months Ended						Year Ended
(Dollars and Shares in Millions, Except Per Share Data)	December 31,						December 31,
(Unaudited)	2016			2015			2016			2015
Interest Income
Loans	$	2,771		$	2,583		$	10,810		$	10,059
Loans held for sale		44			40			154			206
Investment securities		523			499			2,078			2,001
Other interest income		36			34			125			136
Total interest income		3,374			3,156			13,167			12,402
Interest Expense
Deposits		170			113			622			457
Short-term borrowings		62			56			263			245
Long-term debt		187			168			754			699
Total interest expense		419			337			1,639			1,401
Net interest income		2,955			2,819			11,528			11,001
Provision for credit losses		342			305			1,324			1,132
Net interest income after provision for credit losses		2,613			2,514			10,204			9,869
Noninterest Income
Credit and debit card revenue		316			294			1,177			1,070
Corporate payment products revenue		171			170			712			708
Merchant processing services		404			393			1,592			1,547
ATM processing services		87			79			338			318
Trust and investment management fees		368			336			1,427			1,321
Deposit service charges		186			182			725			702
Treasury management fees		147			139			583			561
Commercial products revenue		217			222			871			867
Mortgage banking revenue		240			211			979			906
Investment products fees		38			44			158			185
Securities gains (losses), net		6			1			22			—
Other		251			269			993			907
Total noninterest income		2,431			2,340			9,577			9,092
Noninterest Expense
Compensation		1,357			1,212			5,212			4,812
Employee benefits		261			272			1,119			1,167
Net occupancy and equipment		247			246			988			991
Professional services		156			125			502			423
Marketing and business development		107			96			435			361
Technology and communications		238			230			955			887
Postage, printing and supplies		75			74			311			297
Other intangibles		45			46			179			174
Other		518			508			1,975			1,819
Total noninterest expense		3,004			2,809			11,676			10,931
Income before income taxes		2,040			2,045			8,105			8,030
Applicable income taxes		549			556			2,161			2,097
Net income		1,491			1,489			5,944			5,933
Net (income) loss attributable to noncontrolling interests		(13	)		(13	)		(56	)		(54	)
Net income attributable to U.S. Bancorp	$	1,478		$	1,476		$	5,888		$	5,879
Net income applicable to U.S. Bancorp common shareholders	$	1,391		$	1,404		$	5,589		$	5,608
Earnings per common share	$	.82		$	.80		$	3.25		$	3.18
Diluted earnings per common share	$	.82		$	.80		$	3.24		$	3.16
Dividends declared per common share	$	.280		$	.255		$	1.070		$	1.010
Average common shares outstanding		1,700			1,747			1,718			1,764
Average diluted common shares outstanding		1,705			1,754			1,724			1,772

Page 19

U.S. Bancorp

Consolidated Ending Balance Sheet

	December 31,			December 31,
(Dollars in Millions)	2016			2015
Assets
Cash and due from banks	$	15,705		$	11,147
Investment securities
Held-to-maturity		42,991			43,590
Available-for-sale		66,284			61,997
Loans held for sale		4,826			3,184
Loans
Commercial		93,386			88,402
Commercial real estate		43,098			42,137
Residential mortgages		57,274			53,496
Credit card		21,749			21,012
Other retail		53,864			51,206
Total loans, excluding covered loans		269,371			256,253
Covered loans		3,836			4,596
Total loans		273,207			260,849
Less allowance for loan losses		(3,813	)		(3,863	)
Net loans		269,394			256,986
Premises and equipment		2,443			2,513
Goodwill		9,344			9,361
Other intangible assets		3,303			3,350
Other assets		31,674			29,725
Total assets	$	445,964		$	421,853
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing	$	86,097		$	83,766
Interest-bearing		248,493			216,634
Total deposits		334,590			300,400
Short-term borrowings		13,963			27,877
Long-term debt		33,323			32,078
Other liabilities		16,155			14,681
Total liabilities		398,031			375,036
Shareholders’ equity
Preferred stock		5,501			5,501
Common stock		21			21
Capital surplus		8,440			8,376
Retained earnings		50,151			46,377
Less treasury stock		(15,280	)		(13,125	)
Accumulated other comprehensive income (loss)		(1,535	)		(1,019	)
Total U.S. Bancorp shareholders’ equity		47,298			46,131
Noncontrolling interests		635			686
Total equity		47,933			46,817
Total liabilities and equity	$	445,964		$	421,853

Page 20

U.S. Bancorp

Non-GAAP Financial Measures

	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in Millions, Unaudited)	2016			2016			2016			2016			2015
Total equity	$	47,933		$	48,399		$	48,029		$	47,393		$	46,817
Preferred stock		(5,501	)		(5,501	)		(5,501	)		(5,501	)		(5,501	)
Noncontrolling interests		(635	)		(640	)		(639	)		(638	)		(686	)
Goodwill (net of deferred tax liability) (1)		(8,203	)		(8,239	)		(8,246	)		(8,270	)		(8,295	)
Intangible assets, other than mortgage servicing rights		(712	)		(756	)		(796	)		(820	)		(838	)
Tangible common equity (a)		32,882			33,263			32,847			32,164			31,497
Tangible common equity (as calculated above)		32,882			33,263			32,847			32,164			31,497
Adjustments (2)		(55	)		97			133			99			67
Common equity tier 1 capital estimated for the Basel III fully implemented standardized and advanced approaches (b)		32,827			33,360			32,980			32,263			31,564
Total assets		445,964			454,134			438,463			428,638			421,853
Goodwill (net of deferred tax liability) (1)		(8,203	)		(8,239	)		(8,246	)		(8,270	)		(8,295	)
Intangible assets, other than mortgage servicing rights		(712	)		(756	)		(796	)		(820	)		(838	)
Tangible assets (c)		437,049			445,139			429,421			419,548			412,720
Risk-weighted assets, determined in accordance with prescribed transitional standardized approach regulatory requirements (d)		358,237	*		356,733			351,462			346,227			341,360
Adjustments (3)		4,027	*		3,165			3,079			3,485			3,892
Risk-weighted assets estimated for the Basel III fully implemented standardized approach (e)		362,264	*		359,898			354,541			349,712			345,252
Risk-weighted assets, determined in accordance with prescribed transitional advanced approaches regulatory requirements		277,141	*		272,832			271,495			267,309			261,668
Adjustments (4)		4,295	*		3,372			3,283			3,707			4,099
Risk-weighted assets estimated for the Basel III fully implemented advanced approaches (f)		281,436	*		276,204			274,778			271,016			265,767
Ratios*
Tangible common equity to tangible assets (a)/(c)		7.5	%		7.5	%		7.6	%		7.7	%		7.6	%
Tangible common equity to risk-weighted assets (a)/(d)		9.2			9.3			9.3			9.3			9.2
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach (b)/(e)		9.1			9.3			9.3			9.2			9.1
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches (b)/(f)		11.7			12.1			12.0			11.9			11.9

	Three Months Ended															Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
	2016			2016			2016			2016			2015			2016			2015
Net interest income	$	2,955		$	2,893		$	2,845		$	2,835		$	2,819		$	11,528		$	11,001
Taxable-equivalent adjustment (5)		49			50			51			53			52			203			213
Net interest income, on a taxable-equivalent basis		3,004			2,943			2,896			2,888			2,871			11,731			11,214
Net interest income, on a taxable-equivalent basis (as calculated above)		3,004			2,943			2,896			2,888			2,871			11,731			11,214
Noninterest income		2,431			2,445			2,552			2,149			2,340			9,577			9,092
Less: Securities gains (losses), net		6			10			3			3			1			22			—
Total net revenue, excluding net securities gains (losses) (g)		5,429			5,378			5,445			5,034			5,210			21,286			20,306
Noninterest expense (h)		3,004			2,931			2,992			2,749			2,809			11,676			10,931
Less: Intangible amortization		45			45			44			45			46			179			174
Noninterest expense, excluding intangible amortization (i)		2,959			2,886			2,948			2,704			2,763			11,497			10,757
Efficiency ratio (h)/(g)		55.3	%		54.5	%		54.9	%		54.6	%		53.9	%		54.9	%		53.8	%
Tangible efficiency ratio (i)/(g)		54.5			53.7			54.1			53.7			53.0			54.0			53.0

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

(1) Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.

(2) Includes net losses on cash flow hedges included in accumulated other comprehensive income (loss) and other adjustments.

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

(4) Primarily reflects higher risk-weighting for mortgage servicing rights.

(5) Utilizes a tax rate of 35 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.

Page 21

Supplemental Business Line Schedules

4Q 2016

U.S. Bancorp Fourth Quarter 2016 Business Line Results

January 18, 2017

Page 2

LINE OF BUSINESS FINANCIAL PERFORMANCE (a)
($ in millions)
	Net Income Attributable												Net Income Attributable
	to U.S. Bancorp						Percent Change						to U.S. Bancorp							4Q 2016
	4Q		3Q		4Q		4Q16 vs			4Q16 vs			Full Year		Full Year		Percent			Earnings
Business Line	2016		2016		2015		3Q16			4Q15			2016		2015		Change			Composition
Wholesale Banking and Commercial Real Estate	$	276	$	229	$	198		20.5			39.4		$	861	$	861		—			19	%
Consumer and Small Business Banking		309		370		349		(16.5	)		(11.5	)		1,370		1,323		3.6			21
Wealth Management and Securities Services		107		95		68		12.6			57.4			379		242		56.6			7
Payment Services		322		332		329		(3.0	)		(2.1	)		1,276		1,173		8.8			22
Treasury and Corporate Support		464		476		532		(2.5	)		(12.8	)		2,002		2,280		(12.2	)		31
Consolidated Company	$	1,478	$	1,502	$	1,476		(1.6	)		.1		$	5,888	$	5,879		.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 2016, certain organization and methodology changes were made and, accordingly, prior period results were restated and presented on a comparable basis.

U.S. Bancorp Fourth Quarter 2016 Business Line Results

January 18, 2017

Page 3

WHOLESALE BANKING AND COMMERCIAL REAL ESTATE (a)
($ in millions)
							Percent Change
	4Q		3Q		4Q		4Q16 vs			4Q16 vs			YTD		YTD		Percent
	2016		2016		2015		3Q16			4Q15			2016		2015		Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	602	$	563	$	507		6.9			18.7		$	2,240	$	2,002		11.9
Noninterest income		221		220		222		.5			(.5	)		897		892		.6
Securities gains (losses), net		2		—		—		nm			nm			2		—		nm
Total net revenue		825		783		729		5.4			13.2			3,139		2,894		8.5
Noninterest expense		367		349		332		5.2			10.5			1,417		1,322		7.2
Other intangibles		1		1		1		—			—			4		4		—
Total noninterest expense		368		350		333		5.1			10.5			1,421		1,326		7.2
Income before provision and taxes		457		433		396		5.5			15.4			1,718		1,568		9.6
Provision for credit losses		23		73		84		(68.5	)		(72.6	)		365		214		70.6
Income before income taxes		434		360		312		20.6			39.1			1,353		1,354		(.1	)
Income taxes and taxable-equivalent adjustment		158		131		114		20.6			38.6			492		493		(.2	)
Net income		276		229		198		20.5			39.4			861		861		—
Net (income) loss attributable to noncontrolling interests		—		—		—		—			—			—		—		—
Net income attributable to U.S. Bancorp	$	276	$	229	$	198		20.5			39.4		$	861	$	861		—
Average Balance Sheet Data
Loans	$	93,654	$	92,299	$	87,242		1.5			7.3		$	92,057	$	85,085		8.2
Other earning assets		2,833		2,500		1,987		13.3			42.6			2,452		2,233		9.8
Goodwill		1,647		1,647		1,647		—			—			1,647		1,647		—
Other intangible assets		16		16		19		—			(15.8	)		17		20		(15.0	)
Assets		102,471		100,871		95,248		1.6			7.6			100,575		93,421		7.7
Noninterest-bearing deposits		37,891		36,625		38,138		3.5			(.6	)		36,849		36,345		1.4
Interest-bearing deposits		72,157		67,406		51,581		7.0			39.9			63,977		50,567		26.5
Total deposits		110,048		104,031		89,719		5.8			22.7			100,826		86,912		16.0
Total U.S. Bancorp shareholders’ equity		9,201		8,997		8,449		2.3			8.9			8,996		8,309		8.3

(a) preliminary data

Wholesale Banking and Commercial Real Estate offers lending, equipment finance and small-ticket leasing, depository services, treasury management, capital markets services, international trade services and other financial services to middle market, large corporate, commercial real estate, financial institution, non-profit and public sector clients. Wholesale Banking and Commercial Real Estate contributed $276 million of the Company’s net income in the fourth quarter of 2016, compared with $198 million in the fourth quarter of 2015. Wholesale Banking and Commercial Real Estate’s net income increased $78 million (39.4 percent) over the same quarter of 2015 primarily due to an increase in net interest income and a decrease in the provision for credit losses, partially offset by an increase in noninterest expense. Total net revenue increased $96 million (13.2 percent) due to a $95 million (18.7 percent) increase in net interest income, while noninterest income was essentially flat. Net interest income increased year-over-year primarily due to higher

U.S. Bancorp Fourth Quarter 2016 Business Line Results

January 18, 2017

Page 4

average loan and deposit balances along with the impact of higher rates on the margin benefit from deposits, partially offset by lower rates on loans. Total noninterest expense was $35 million (10.5 percent) higher compared with a year ago primarily due to an increase in variable costs allocated to manage the business, including the impact of a special FDIC surcharge that began in the third quarter of 2016. The provision for credit losses decreased $61 million (72.6 percent) primarily due to a favorable change in the reserve allocation driven by an increase in reserves related to energy credits in the prior year and lower net charge-offs.

U.S. Bancorp Fourth Quarter 2016 Business Line Results

January 18, 2017

Page 5

CONSUMER AND SMALL BUSINESS BANKING (a)
($ in millions)
							Percent Change
	4Q		3Q		4Q		4Q16 vs			4Q16 vs			YTD		YTD		Percent
	2016		2016		2015		3Q16			4Q15			2016		2015		Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,229	$	1,199	$	1,161		2.5			5.9		$	4,752	$	4,580		3.8
Noninterest income		627		712		608		(11.9	)		3.1			2,527		2,485		1.7
Securities gains (losses), net		—		—		—		—			—			—		—		—
Total net revenue		1,856		1,911		1,769		(2.9	)		4.9			7,279		7,065		3.0
Noninterest expense		1,291		1,276		1,181		1.2			9.3			4,999		4,799		4.2
Other intangibles		8		8		10		—			(20.0	)		32		40		(20.0	)
Total noninterest expense		1,299		1,284		1,191		1.2			9.1			5,031		4,839		4.0
Income before provision and taxes		557		627		578		(11.2	)		(3.6	)		2,248		2,226		1.0
Provision for credit losses		71		45		30		57.8			nm			93		148		(37.2	)
Income before income taxes		486		582		548		(16.5	)		(11.3	)		2,155		2,078		3.7
Income taxes and taxable-equivalent adjustment		177		212		199		(16.5	)		(11.1	)		785		755		4.0
Net income		309		370		349		(16.5	)		(11.5	)		1,370		1,323		3.6
Net (income) loss attributable to noncontrolling interests		—		—		—		—			—			—		—		—
Net income attributable to U.S. Bancorp	$	309	$	370	$	349		(16.5	)		(11.5	)	$	1,370	$	1,323		3.6
Average Balance Sheet Data
Loans	$	138,691	$	137,671	$	132,467		.7			4.7		$	136,425	$	129,670		5.2
Other earning assets		5,476		5,257		4,661		4.2			17.5			4,703		6,519		(27.9	)
Goodwill		3,681		3,681		3,681		—			—			3,681		3,681		—
Other intangible assets		2,508		2,270		2,654		10.5			(5.5	)		2,421		2,594		(6.7	)
Assets		154,887		153,496		147,600		.9			4.9			151,754		146,554		3.5
Noninterest-bearing deposits		28,838		28,379		26,691		1.6			8.0			27,544		25,829		6.6
Interest-bearing deposits		117,411		115,884		110,483		1.3			6.3			115,325		109,511		5.3
Total deposits		146,249		144,263		137,174		1.4			6.6			142,869		135,340		5.6
Total U.S. Bancorp shareholders’ equity		11,353		11,312		10,736		.4			5.7			11,192		10,892		2.8

(a) preliminary data

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 and indirect lending, as well as mortgage banking. Consumer and Small Business Banking contributed $309 million of the Company’s net income in the fourth quarter of 2016, compared with $349 million in the fourth quarter of 2015. Consumer and Small Business Banking’s net income decreased $40 million (11.5 percent) from the same quarter of 2015 due to an increase in noninterest expense and an increase in the provision for credit losses, partially offset by an increase in total net revenue. Total net revenue increased $87 million (4.9 percent) due to higher net interest income and noninterest income. Net interest income was $68 million (5.9 percent) higher primarily due to higher average loan and deposit balances, partially offset by lower loan

U.S. Bancorp Fourth Quarter 2016 Business Line Results

January 18, 2017

Page 6

rates. Noninterest income was $19 million (3.1 percent) higher than a year ago, driven by higher mortgage banking revenue, reflecting the impact of higher origination and sales revenue, partially offset by lower income from leasing residuals. Total noninterest expense in the fourth quarter of 2016 increased $108 million (9.1 percent) over the same quarter of the prior year primarily due to higher net shared services expense, including the impact of capital investments to support business growth, and higher compensation expense, reflecting the impact of merit increases, increased staffing, and higher variable compensation related to higher mortgage production. The provision for credit losses increased $41 million primarily due to an unfavorable change in the reserve allocation reflecting slower improvements in residential mortgage and home equity credit quality and higher net charge-offs.

U.S. Bancorp Fourth Quarter 2016 Business Line Results

January 18, 2017

Page 7

WEALTH MANAGEMENT AND SECURITIES SERVICES (a)
($ in millions)
									Percent Change
	4Q			3Q			4Q		4Q16 vs			4Q16 vs			YTD			YTD		Percent
	2016			2016			2015		3Q16			4Q15			2016			2015		Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	163		$	135		$	103		20.7			58.3		$	537		$	355		51.3
Noninterest income		406			403			375		.7			8.3			1,589			1,475		7.7
Securities gains (losses), net		—			—			—		—			—			—			—		—
Total net revenue		569			538			478		5.8			19.0			2,126			1,830		16.2
Noninterest expense		397			384			364		3.4			9.1			1,510			1,422		6.2
Other intangibles		6			6			7		—			(14.3	)		24			28		(14.3	)
Total noninterest expense		403			390			371		3.3			8.6			1,534			1,450		5.8
Income before provision and taxes		166			148			107		12.2			55.1			592			380		55.8
Provision for credit losses		(2	)		(1	)		—		nm			nm			(4	)		—		nm
Income before income taxes		168			149			107		12.8			57.0			596			380		56.8
Income taxes and taxable-equivalent adjustment		61			54			39		13.0			56.4			217			138		57.2
Net income		107			95			68		12.6			57.4			379			242		56.6
Net (income) loss attributable to noncontrolling interests		—			—			—		—			—			—			—		—
Net income attributable to U.S. Bancorp	$	107		$	95		$	68		12.6			57.4		$	379		$	242		56.6
Average Balance Sheet Data
Loans	$	7,645		$	7,297		$	6,639		4.8			15.2		$	7,261		$	6,225		16.6
Other earning assets		145			142			182		2.1			(20.3	)		141			203		(30.5	)
Goodwill		1,567			1,567			1,567		—			—			1,566			1,567		(.1	)
Other intangible assets		93			99			116		(6.1	)		(19.8	)		101			126		(19.8	)
Assets		10,655			10,382			9,524		2.6			11.9			10,352			9,238		12.1
Noninterest-bearing deposits		15,120			13,825			16,223		9.4			(6.8	)		13,735			14,393		(4.6	)
Interest-bearing deposits		53,909			51,705			46,377		4.3			16.2			49,924			45,296		10.2
Total deposits		69,029			65,530			62,600		5.3			10.3			63,659			59,689		6.7
Total U.S. Bancorp shareholders’ equity		2,392			2,378			2,329		.6			2.7			2,382			2,312		3.0

(a) preliminary data

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 $107 million of the Company’s net income in the fourth quarter of 2016, compared with $68 million in the fourth quarter of 2015. The business line’s contribution was $39 million (57.4 percent) higher than the same quarter of 2015, reflecting an increase in total net revenue, partially offset by an increase in total noninterest expense. Total net revenue increased $91 million (19.0 percent) year-over-year driven by an increase in net interest income of $60 million (58.3 percent), principally due to the impact of higher rates on the margin benefit from deposits, along with a $31 million (8.3 percent) increase in total noninterest income, reflecting the

U.S. Bancorp Fourth Quarter 2016 Business Line Results

January 18, 2017

Page 8

impact of lower money market fee waivers along with account growth, growth in assets under management and improved market conditions. Total noninterest expense increased $32 million (8.6 percent) primarily as a result of higher compensation expense, reflecting the impact of merit increases and higher staffing. The provision for credit losses was relatively flat compared with the prior year quarter.

U.S. Bancorp Fourth Quarter 2016 Business Line Results

January 18, 2017

Page 9

PAYMENT SERVICES (a)
($ in millions)
										Percent Change
	4Q			3Q			4Q			4Q16 vs			4Q16 vs			YTD			YTD			Percent
	2016			2016			2015			3Q16			4Q15			2016			2015			Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	562		$	538		$	520			4.5			8.1		$	2,140		$	1,930			10.9
Noninterest income		911			912			870			(.1	)		4.7			3,562			3,371			5.7
Securities gains (losses), net		—			—			—			—			—			—			—			—
Total net revenue		1,473			1,450			1,390			1.6			6.0			5,702			5,301			7.6
Noninterest expense		671			677			632			(.9	)		6.2			2,656			2,521			5.4
Other intangibles		30			30			28			—			7.1			119			102			16.7
Total noninterest expense		701			707			660			(.8	)		6.2			2,775			2,623			5.8
Income before provision and taxes		772			743			730			3.9			5.8			2,927			2,678			9.3
Provision for credit losses		254			208			202			22.1			25.7			869			787			10.4
Income before income taxes		518			535			528			(3.2	)		(1.9	)		2,058			1,891			8.8
Income taxes and taxable-equivalent adjustment		189			195			192			(3.1	)		(1.6	)		750			687			9.2
Net income		329			340			336			(3.2	)		(2.1	)		1,308			1,204			8.6
Net (income) loss attributable to noncontrolling interests		(7	)		(8	)		(7	)		12.5			—			(32	)		(31	)		(3.2	)
Net income attributable to U.S. Bancorp	$	322		$	332		$	329			(3.0	)		(2.1	)	$	1,276		$	1,173			8.8
Average Balance Sheet Data
Loans	$	29,265		$	28,909		$	26,719			1.2			9.5		$	28,549		$	25,712			11.0
Other earning assets		258			267			1,039			(3.4	)		(75.2	)		351			526			(33.3	)
Goodwill		2,456			2,463			2,469			(.3	)		(.5	)		2,465			2,475			(.4	)
Other intangible assets		465			494			436			(5.9	)		6.7			494			411			20.2
Assets		34,891			34,733			33,082			.5			5.5			34,409			31,796			8.2
Noninterest-bearing deposits		964			954			891			1.0			8.2			951			879			8.2
Interest-bearing deposits		99			98			708			1.0			(86.0	)		97			696			(86.1	)
Total deposits		1,063			1,052			1,599			1.0			(33.5	)		1,048			1,575			(33.5	)
Total U.S. Bancorp shareholders’ equity		6,470			6,386			6,044			1.3			7.0			6,390			5,868			8.9

(a) preliminary data

Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate, government and purchasing card services, consumer lines of credit and merchant processing. Payment Services contributed $322 million of the Company’s net income in the fourth quarter of 2016, compared with $329 million in the fourth quarter of 2015. The $7 million (2.1 percent) decrease in the business line’s contribution from the prior year was primarily due to an increase in the provision for credit losses and an increase in noninterest expense, partially offset by an increase in total net revenue, which grew $83 million (6.0 percent) year-over-year. Net interest income increased $42 million (8.1 percent) primarily due to higher average loan balances and fees. Total noninterest income was $41 million (4.7 percent) higher year-over-year due to an increase in credit and debit card revenue on higher transaction volumes, including the impact of acquired portfolios and an increase in merchant processing services as a result of an increase in

U.S. Bancorp Fourth Quarter 2016 Business Line Results

January 18, 2017

Page 10

product fees and higher volumes. Total noninterest expense increased $41 million (6.2 percent) over the fourth quarter of 2015, reflecting higher compensation expense due to merit increases and higher staffing to support business investment and compliance programs, higher net shared services expense, and higher card losses. The provision for credit losses increased $52 million (25.7 percent) due to an unfavorable change in the reserve allocation due to portfolio growth along with higher net charge-offs.

U.S. Bancorp Fourth Quarter 2016 Business Line Results

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Page 11

TREASURY AND CORPORATE SUPPORT (a)
($ in millions)
										Percent Change
	4Q 2016			3Q 2016			4Q 2015			4Q16 vs 3Q16			4Q16 vs 4Q15			YTD 2016			YTD 2015			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	448		$	508		$	580			(11.8	)		(22.8	)	$	2,062		$	2,347			(12.1	)
Noninterest income		260			188			264			38.3			(1.5	)		980			869			12.8
Securities gains (losses), net		4			10			1			(60.0	)		nm			20			—			nm
Total net revenue		712			706			845			.8			(15.7	)		3,062			3,216			(4.8	)
Noninterest expense		233			200			254			16.5			(8.3	)		915			693			32.0
Other intangibles		—			—			—			—			—			—			—			—
Total noninterest expense		233			200			254			16.5			(8.3	)		915			693			32.0
Income before provision and taxes		479			506			591			(5.3	)		(19.0	)		2,147			2,523			(14.9	)
Provision for credit losses		(4	)		—			(11	)		nm			63.6			1			(17	)		nm
Income before income taxes		483			506			602			(4.5	)		(19.8	)		2,146			2,540			(15.5	)
Income taxes and taxable-equivalent adjustment		13			24			64			(45.8	)		(79.7	)		120			237			(49.4	)
Net income		470			482			538			(2.5	)		(12.6	)		2,026			2,303			(12.0	)
Net (income) loss attributable to noncontrolling interests		(6	)		(6	)		(6	)		—			—			(24	)		(23	)		(4.3	)
Net income attributable to U.S. Bancorp	$	464		$	476		$	532			(2.5	)		(12.8	)	$	2,002		$	2,280			(12.2	)
Average Balance Sheet Data
Loans	$	3,416		$	3,461		$	3,625			(1.3	)		(5.8	)	$	3,519		$	3,767			(6.6	)
Other earning assets		120,588			115,980			108,530			4.0			11.1			114,419			107,505			6.4
Goodwill		—			—			—			—			—			—			—			—
Other intangible assets		—			—			—			—			—			—			—			—
Assets		141,999			138,381			129,668			2.6			9.5			136,223			127,856			6.5
Noninterest-bearing deposits		2,079			2,238			1,951			(7.1	)		6.6			2,097			1,757			19.4
Interest-bearing deposits		715			1,434			1,462			(50.1	)		(51.1	)		2,311			1,878			23.1
Total deposits		2,794			3,672			3,413			(23.9	)		(18.1	)		4,408			3,635			21.3
Total U.S. Bancorp shareholders’ equity		18,219			18,718			18,215			(2.7	)		—			18,379			17,432			5.4
(a)    preliminary data

Treasury and Corporate Support includes the Company’s investment portfolios, funding, capital management, interest rate risk management, income taxes not allocated to the 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 $464 million in the fourth quarter of 2016, compared with $532 million in the fourth quarter of 2015. The decrease in net income of $68 million (12.8 percent) from the prior year quarter was primarily due to a decrease in total net revenue, partially offset by a decrease in total noninterest expense. Net interest income decreased $132 million (22.8 percent) from the fourth quarter of 2015 principally due to the impact of higher rates credited to the business lines on deposits and the issuance of long-term debt, partially offset by growth in the investment portfolio. Total noninterest income was relatively flat compared with the fourth

U.S. Bancorp Fourth Quarter 2016 Business Line Results

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quarter of last year reflecting the impact of a gain on the sale of a deposit portfolio in the fourth quarter of 2015 and an increase in equity investment income in the current year quarter. Total noninterest expense decreased $21 million (8.3 percent) principally due to lower costs related to investments in tax-advantaged projects, lower net shared services expense and lower employee benefits expense, reflecting lower pension and healthcare costs. These decreases were partially offset by higher compensation expense, reflecting the impact of merit increases and higher variable compensation along with increased staffing, and higher professional services expense primarily due to compliance programs and implementation costs of capital investments to support business growth. The provision for credit losses was $7 million (63.6 percent) higher year-over-year primarily due to an unfavorable change in the reserve allocation.

EX-99.2

U.S. Bancorp 4Q16 Earnings Conference Call Richard K. Davis Chairman and CEO January 18, 2017 Terry Dolan Vice Chairman and CFO Exhibit 99.2

Forward-looking Statements and Additional Information The following information appears in accordance with the Private Securities Litigation Reform Act of 1995: Today’s 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 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 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. Stress in the commercial real estate markets, as well as a downturn in the residential real estate markets could cause 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 (which could result, in part, from the United Kingdom’s withdrawal from the European Union); 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; litigation; increased competition from both banks and non-banks; changes in customer behavior and preferences; breaches in data security; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputational 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, 2015, 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. This presentation includes non-GAAP financial measures to describe U.S. Bancorp’s performance. The calculations of these measures are provided in the Appendix. 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.

2016 Full Year Highlights Record net income of $5.9 billion; record $3.24 per diluted common share Industry-leading profitability measures, including ROA of 1.36%, ROCE of 13.4% and efficiency ratio of 54.9%* Average loan growth of 6.9% vs. 2015 and average deposit growth of 8.9% vs. 2015 Net interest income increased 4.6%** vs. 2015 Noninterest income rose 5.3% vs. 2015 Strong capital generation continued End of period common equity tier 1 capital ratio of 9.1% estimated for the Basel III fully implemented standardized approach Returned 79% of earnings to shareholders through dividends and share buybacks Repurchased 61 million shares of common stock during 2016 * Non-GAAP; see slide 26 for calculation ** Taxable equivalent basis; increase of 4.8% as reported on a GAAP basis; see slide 26 for reconciliation

4Q16 Highlights Net income of $1.5 billion; $0.82 per diluted common share Average loans grew 1.1% vs. 3Q16 and 6.2% vs. 4Q15 Loan growth of 5.6% vs. 4Q15 excluding the credit card portfolio acquisition at the end of 4Q15 Average deposits grew 3.3% vs. 3Q16 and 11.8% vs. 4Q15 Net interest income grew 2.1%* vs. 3Q16 and 4.6%* vs. 4Q15 Average earning assets increased 2.1% vs. 3Q16 and 7.7% vs. 4Q15 Noninterest income increased 3.9% vs. 4Q15 Payment services revenue increased 4.0% vs. 4Q15 Trust and investment management fees increased 9.5% vs. 4Q15 Credit quality was stable vs. 3Q16 and 4Q15 Returned 81% of earnings to shareholders through dividends and share buybacks * Taxable equivalent basis; increases of 2.1% and 4.8%, respectively, as reported on a GAAP basis; see slide 26 for reconciliation

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 Excludes notable items * Non-GAAP; see slide 26 for calculation 54.0%

Loan and Deposit Growth Year-Over-Year Growth Average Balances 5.8% $262.3 8.1% $266.6 4.2% $256.7 6.9% $294.5 6.3% $295.9 7.6% $307.4 $ in billions * Adjusted for 4Q15 credit card portfolio acquisition and student loans which were transferred to held for sale at the end of 1Q15 and returned to held for investment during 3Q15 ** Adjusted for 4Q15 credit card portfolio acquisition 5.2% * 10.0% $318.5 7.6% $269.6 5.6% **

Credit Quality Net Charge-offs Nonperforming Assets Net Charge-offs (Left Scale) NCOs to Avg Loans (Right Scale) Nonperforming Assets (Left Scale) NPAs to Loans plus ORE (Right Scale) $ in millions

Earnings Summary

Revenue Growth * Notable item: 2Q16 Visa Europe sale gain $180 million Year-Over-Year Change 0.8% 2.7%8.1% 4.7%4.3% $ in millions 4.5% excluding 2Q16 notable item*

Net Interest Income Net Interest Income Key Points vs. 4Q15 Average earning assets grew $28.9 billion, or 7.7% Net interest margin lower 8 bps (2.98% vs. 3.06%) Principally driven by lower yields on securities purchases, lower reinvestment rates on maturing securities and higher cash balances vs. 3Q16 Average earning assets grew $8.2 billion, or 2.1% Stable net interest margin Principally due to higher average cash balances as well as lower average rates on new securities purchases and lower reinvestment rates on maturing securities, offset by the favorable impact of interest rates on loans Year-Over-Year Change 2.6%4.9%4.5% 4.3% 4.6% $ in millions Taxable-equivalent basis

Noninterest Income Noninterest Income Key Points vs. 4Q15 Noninterest income increased $91 million, or 3.9% Higher credit and debit card revenue (7.5% increase) due to higher transaction volumes, including the impact of acquired portfolios Higher trust and investment management fees (9.5% increase) reflecting lower money market fee waivers along with account growth, an increase in assets under management and improved market conditions Higher merchant processing services revenue (2.8% increase) due to an increase in product fees and higher volumes Higher mortgage banking revenue (13.7% increase) driven by higher origination and sales volume Lower other income (6.7% decrease) reflecting lower income from leasing residuals and the impact of a gain on the sale of a deposit portfolio in 4Q15, partially offset by stronger trading income and higher equity investment income vs. 3Q16 Noninterest income decreased $14 million, or 0.6% Higher credit and debit card revenue (5.7% increase) driven by seasonally higher sales volumes Higher other income (45.9% increase) driven by changes in equity investment income Lower mortgage banking revenue (23.6% decrease) reflecting lower origination and sales volume Lower corporate payment products revenue (10.0% decrease) reflecting seasonally lower government-related transaction volumes Year-Over-Year Change (1.3%)(0.2%)12.3% 5.1% 3.9% $2,445 $2,340 $2,149 $2,552 All Other Mortgage Service Charges Trust and Inv Mgmt Payments * Adjusted for notable item: 2Q16 Visa Europe sale gain $180 million Payments = credit and debit card, corporate payment products and merchant processing Service charges = deposit service charges, treasury management and ATM processing $ in millions 4.4% adjusted*

Noninterest Expense Noninterest Expense Key Points vs. 4Q15 Noninterest expense increased $195 million, or 6.9% Higher compensation expense (12.0% increase) principally due to the impact of hiring to support business growth and compliance programs, merit increases and higher variable compensation Higher professional services expense (24.8% increase) primarily due to compliance programs and implementation costs of capital investments to support business growth Higher marketing expense (11.5% increase) to support new business development Lower employee benefits expense (4.0% decrease) mainly due to lower pension and healthcare costs vs. 3Q16 Noninterest expense increased $73 million, or 2.5% Higher professional services expense (22.8% increase) due to seasonally higher costs including capital investments and risk and compliance activities Higher other noninterest expense (9.1% increase) due to seasonally higher costs related to tax-advantaged projects Higher compensation expense (2.1% increase) due to increased staffing to support business investment and compliance programs Lower employee benefits expense (6.8% decrease) driven by lower healthcare costs Year-Over-Year Change 0.2%3.2%11.6% 5.6% 6.9% $2,931 $2,809 $2,749 $2,992 All Other Tech and Communications Prof Svcs, Marketing and PPS Occupancy and Equipment Compensation and Benefits * Adjusted for notable items: 2Q16 related to accruals for legal and regulatory matters ($110 million) and charitable contribution ($40 million) $ in millions 6.0% adjusted*

Capital Position * RWA = risk-weighted assets See slide 25

Appendix

Average Loans Average Loans Key Points vs. 4Q15 Average total loans increased by $16.0 billion, or 6.2% (5.6% growth excluding the credit card portfolio acquisition) Average total commercial loans increased by $7.0 billion, or 8.1% Average residential mortgage loans increased by $3.7 billion, or 7.1% vs. 3Q16 Average total loans increased by $3.0 billion, or 1.1% Average total commercial loans increased by $1.4 billion, or 1.6% Average credit card loans increased by $0.3 billion, or 1.5% Year-Over-Year Growth 4.2%5.8% 8.1% 7.6% 6.2% Covered Commercial CRE Res Mtg Retail Credit Card $269.6 $256.7 $262.3 $266.6 $ in billions * Excluding student loans which were transferred to held for sale at the end of 1Q15 and returned to held for investment during 3Q15 ** Excluding the credit card portfolio acquisition 4.0%

Average Deposits Average Deposits Key Points vs. 4Q15 Average total deposits increased by $34.7 billion, or 11.8% Average low-cost deposits (NIB, interest checking, money market and savings) increased by $35.7 billion, or 13.6% vs. 3Q16 Average total deposits increased by $10.6 billion, or 3.3% Average low-cost deposits increased by $11.4 billion, or 4.0% Year-Over-Year Growth 6.9% 6.3% 7.6% 10.0%11.8% Time Money Market Checking and Savings Noninterest-bearing $294.5 $295.9 $307.4 $318.5 $ in billions $329.2

Credit Quality – Commercial Loans Average Loans and Net Charge-offs Ratios Key Statistics Key Points Average year-over-year loan growth of 8.1% demonstrates continued momentum with customers Net charge-offs increased slightly on a year-over-year basis, but remained at historically low levels Nonperforming loans decreased slightly on a linked-quarter basis 4Q153Q164Q16 Average Loans$86,803$92,369$93,807 30-89 Delinquencies0.36%0.24%0.28% 90+ Delinquencies0.05%0.05%0.06% Nonperforming Loans0.20%0.55%0.52% $ in millions

A&D Construction $688 Credit Quality – Commercial Real Estate Average Loans and Net Charge-offs Ratios Key Statistics Key Points Average loans increased 2.7% year-over-year Nonperforming loans have remained stable, year-over-year, at historically low levels Recoveries within the CRE portfolio continue to offset loan charge-offs, resulting in net losses remaining near zero 4Q153Q164Q16 Average Loans$42,231$43,374$43,391 30-89 Delinquencies0.21%0.08%0.10% 90+ Delinquencies0.03%0.02%0.02% Nonperforming Loans0.30%0.24%0.29% Performing TDRs*$209$274$169 $ in millions Investor $20,814 Owner Occupied $10,953 Multi-family $4,157 Retail $982 Residential Construction $2,339 Office $979 Other $2,479 * TDR = troubled debt restructuring

Credit Quality – Residential Mortgage Average Loans and Net Charge-offs Ratios Key Statistics Key Points Originations continued to be high credit quality (weighted average FICO of 761, weighted average LTV of 67%) 89% 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 $ in millions 4Q153Q164Q16 Average Loans$52,970$56,284$56,718 30-89 Delinquencies0.32%0.26%0.26% 90+ Delinquencies0.33%0.28%0.27% Nonperforming Loans1.33%1.09%1.04% *Excludes GNMA loans, whose repayments are insured by the FHA or guaranteed by the Department of VA ($1,574 million in 4Q16)

Credit Quality – Credit Card Average Loans and Net Charge-offs Ratios Key Statistics Key Points Year-over-year average loan growth of 11% was driven, in part, by the portfolio acquisition at the end of 4Q15 Origination credit quality remains strong, with a weighted average FICO of 761 Linked-quarter increases in delinquency rates reflect seasonality and vintage maturation $ in millions 4Q153Q164Q16 Average Loans$18,838$20,628$20,942 30-89 Delinquencies1.15%1.27%1.31% 90+ Delinquencies1.09%1.11%1.16% Nonperforming Loans0.04%0.02%0.01%

Credit Quality – Home Equity Average Loans and Net Charge-offs Ratios Key Statistics Key Points High-quality originations (weighted average FICO on commitments of 769, weighted average CLTV of 71%) originated primarily through the retail branch network to existing bank customers on their primary residences Net charge-offs declined year-over-year $ in millions 4Q153Q164Q16 Average Loans$16,241$16,470$16,444 30-89 Delinquencies0.36%0.41%0.37% 90+ Delinquencies0.25%0.24%0.25% Nonperforming Loans0.83%0.75%0.78% Subprime: 1% Wtd Avg LTV*: 88% NCO: -2.49% Prime: 97% Wtd Avg LTV*: 72% NCO: -0.02% Other: 2% Wtd Avg LTV*: 70% NCO: 1.26% *LTV at origination

Credit Quality – Retail Leasing Average Loans and Net Charge-offs Ratios Key Statistics Key Points Continued high-quality originations (weighted average FICO of 784) support the portfolio’s stable credit profile Delinquencies, nonperforming leases and net charge-offs remained at very low levels $ in millions 4Q153Q164Q16 Average Loans$5,265$5,773$6,191 30-89 Delinquencies0.21%0.21%0.28% 90+ Delinquencies0.02%0.00%0.02% Nonperforming Loans0.06%0.05%0.03% * Manheim Used Vehicle Value Index source: www.manheimconsulting.com, January 1995 = 100, quarter value = average monthly ending values

Credit Quality – Other Retail Average Loans and Net Charge-offs Ratios Key Statistics Key Points Overall growth continued to be driven by the auto loans and installment categories, which were up 6.5% and 15.3% year-over-year, respectively Net charge-offs and 30-89 delinquencies showed seasonal increases $ in millions 4Q153Q164Q16 Average Loans$29,556$30,608$31,245 30-89 Delinquencies0.52%0.56%0.66% 90+ Delinquencies0.11%0.11%0.13% Nonperforming Loans0.08%0.08%0.09%

Credit Quality – Auto Loans Average Loans and Net Charge-offs Ratios Key Statistics Key Points Continued growth in auto loans driven by high-quality originations in the indirect channel (weighted average FICO 776) Net charge-offs were up from prior quarter and prior year, as vintages booked over the past couple of years mature $ in millions 4Q153Q164Q16 Average Loans$16,551$17,205$17,624 30-89 Delinquencies0.51%0.59%0.74% 90+ Delinquencies0.04%0.05%0.06% Nonperforming Loans0.07%0.08%0.09% Direct: 6% Wtd Avg FICO: 748 NCO: 0.18% Indirect: 94% Wtd Avg FICO: 769 NCO: 0.44% Auto loans are included in Other Retail category

Non-GAAP Financial Measures * Preliminary data. Subject to change prior to filings with applicable regulatory agencies. (1) Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements. (2) Includes net losses on cash flow hedges included in accumulated other comprehensive income (loss) and other adjustments. (3) Includes higher risk-weighting for unfunded loan commitments, investment securities, residential mortgages, mortgage servicing rights and other adjustments. (4) Primarily reflects higher risk-weighting for mortgage servicing rights.

Non-GAAP Financial Measures (1) Utilizes a tax rate of 35 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.

U.S. Bancorp 4Q16 Earnings Conference Call January 18, 2017