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): July 19, 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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule l2b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section l3(a) of the Exchange Act.  ☐

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On July 19, 2017, U.S. Bancorp (the “Company”) issued a press release reporting quarter ended June 30, 2017 results, and posted on its website its 2Q17 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 2Q17 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated herein by reference. The information included in the 2Q17 Earnings Conference Call Presentation is considered to be “furnished” under the Securities Exchange Act of 1934. The press release and 2Q17 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 July 19, 2017, deemed “filed” under the Securities Exchange Act of 1934.

99.2 2Q17 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: July 19, 2017

EX-99.1

Exhibit 99.1

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

U.S. BANCORP REPORTS SECOND QUARTER 2017 EARNINGS

Record Earnings Per Diluted Common Share of $0.85

Return on average assets of 1.35 percent and average common equity of 13.4 percent

Returned 81 percent of earnings to shareholders

MINNEAPOLIS, July 19, 2017 — U.S. Bancorp (NYSE: USB) today reported net income of $1,500 million for the second quarter of 2017, or $0.85 per diluted common share, compared with $1,522 million, or $0.83 per diluted common share, in the second quarter of 2016.

Highlights for the second quarter of 2017 included:

• Industry-leading return on average assets of 1.35 percent and return on average common equity of 13.4 percent and efficiency ratio of 55.2 percent

• Record revenue of $5,487 million and diluted earnings per common share of $0.85

• Net interest income (taxable-equivalent basis) grew 5.9 percent year-over-year and 2.4 percent on a linked quarter basis

• Net interest margin of 3.04 percent for the second quarter of 2017 was 2 basis points higher than the second quarter of 2016 and 1 basis point higher than the first quarter of 2017, benefiting from rising interest rates partially offset by increasing average cash balances

• Average total loans grew 3.4 percent over the second quarter of 2016 and 0.9 percent on a linked quarter basis

• Credit and debit card revenue grew 7.8 percent on a year-over-year basis

• Trust and investment management fees increased 6.1 percent on a year-over-year basis

• Nonperforming assets decreased 19.3 percent on a year-over-year basis and 9.8 percent on a linked quarter basis

• Strong capital position. At June 30, 2017, the estimated common equity tier 1 capital to risk-weighted assets ratio was 9.3 percent using the Basel III fully implemented standardized approach and was 11.7 percent using the Basel III fully implemented advanced approaches method.

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U.S. Bancorp Reports Second Quarter 2017 Results

July 19, 2017

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EARNINGS SUMMARY																	Table 1
($ in millions, except per-share data)							Percent		Percent
							Change		Change
	2Q		1Q		2Q		2Q17 vs		2Q17 vs			YTD		YTD		Percent
	2017		2017		2016		1Q17		2Q16			2017		2016		Change
Net income attributable to U.S. Bancorp	$	1,500	$	1,473	$	1,522		1.8		(1.4	)	$	2,973	$	2,908		2.2
Diluted earnings per common share	$	.85	$	.82	$	.83		3.7		2.4		$	1.66	$	1.59		4.4
Return on average assets (%)		1.35		1.35		1.43							1.35		1.38
Return on average common equity (%)		13.4		13.3		13.8							13.4		13.4
Net interest margin (%)		3.04		3.03		3.02							3.04		3.04
Efficiency ratio (%) (a)		55.2		55.6		54.9							55.4		54.8
Tangible efficiency ratio (%) (a)		54.4		54.8		54.1							54.6		53.9
Dividends declared per common share	$	.280	$	.280	$	.255		—		9.8		$	.560	$	.510		9.8
Book value per common share (period end)	$	25.55	$	25.05	$	24.37		2.0		4.8

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

Net income attributable to U.S. Bancorp was $1,500 million for the second quarter of 2017, 1.4 percent lower than the $1,522 million for the second quarter of 2016, and 1.8 percent higher than the $1,473 million for the first quarter of 2017. Diluted earnings per common share of $0.85 in the second quarter of 2017 were $0.02 higher than the second quarter of 2016 and $0.03 higher than the first quarter of 2017. The decrease in net income year-over-year included a 5.2 percent decrease in noninterest income and a 1.0 percent increase in noninterest expense, both of which were impacted by notable items in the second quarter of 2016. Notable items included a $180 million Visa gain in noninterest income and $150 million in noninterest expense related to litigation accruals and a charitable contribution. Excluding the prior year notable items, net income increased slightly year-over-year. Net interest income increased 5.9 percent on a taxable-equivalent basis (6.0 percent as reported on a GAAP basis), mainly a result of loan growth and the impact of higher interest rates. Noninterest income, excluding the impact of the prior year notable item, increased 2.0 percent driven by higher payment services revenue, trust and investment management fees and treasury management fees. Revenue increases were partially offset by higher noninterest expense, excluding the prior year notable items, due to increased compensation expense related to hiring to support business growth and compliance programs, merit increases, and higher variable compensation. In addition, other expense was higher due to an FDIC surcharge beginning in late 2016. The increase in net income on a linked quarter basis was principally due to an increase in total net revenue of 3.1 percent, reflecting higher net interest income of 2.4 percent,

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U.S. Bancorp Reports Second Quarter 2017 Results

July 19, 2017

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driven by loan growth, the impact of higher interest rates and an additional day in the current quarter, along with an increase in noninterest income of 3.9 percent primarily due to seasonally higher fee-based revenue. These increases were partially offset by an increase in noninterest expense of 2.7 percent.

U.S. Bancorp President and Chief Executive Officer Andy Cecere said, “I’m proud of our solid second quarter performance and our ability to deliver industry-leading results. As an enterprise we extended our momentum from the first quarter to produce best-in-class performance metrics, including return on average assets of 1.35 percent, return on average common equity of 13.4 percent and an efficiency ratio of 55.2 percent.

“Because of the overall strength and consistency of our financial results, we continued to create value for our shareholders. In the second quarter, we returned 81 percent of our earnings to shareholders through dividends and share repurchases. The results of the Federal Reserve’s annual Stress Test demonstrated our ability to withstand—and remain profitable—in periods of economic stress. As part of the CCAR process we announced a dividend increase of 7.1 percent and a new share repurchase program for the year, maintaining our commitment to shareholders.

“Our balance sheet is strong and our core businesses are well positioned for an economic and regulatory backdrop that has the promise to be more conducive to growth. Our strong revenue base and our dedication to managing expenses positions us well as we head into the second half of the year. I couldn’t be more proud of our dedicated employees who work hard to be our customers’ and communities’ trusted financial partner and to bring this commitment to life every day.”

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U.S. Bancorp Reports Second Quarter 2017 Results

July 19, 2017

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INCOME STATEMENT HIGHLIGHTS																						Table 2
($ in millions, except per-share data)										Percent		Percent
										Change		Change
	2Q			1Q			2Q			2Q17 vs		2Q17 vs			YTD			YTD			Percent
	2017			2017			2016			1Q17		2Q16			2017			2016			Change
Net interest income	$	3,017		$	2,945		$	2,845			2.4		6.0		$	5,962		$	5,680			5.0
Taxable-equivalent adjustment		51			50			51			2.0		—			101			104			(2.9	)
Net interest income (taxable-equivalent basis)		3,068			2,995			2,896			2.4		5.9			6,063			5,784			4.8
Noninterest income		2,419			2,329			2,552			3.9		(5.2	)		4,748			4,701			1.0
Total net revenue		5,487			5,324			5,448			3.1		.7			10,811			10,485			3.1
Noninterest expense		3,023			2,944			2,992			2.7		1.0			5,967			5,741			3.9
Income before provision and income taxes		2,464			2,380			2,456			3.5		.3			4,844			4,744			2.1
Provision for credit losses		350			345			327			1.4		7.0			695			657			5.8
Income before taxes		2,114			2,035			2,129			3.9		(.7	)		4,149			4,087			1.5
Income taxes and taxable-equivalent adjustment		602			549			593			9.7		1.5			1,151			1,150			.1
Net income		1,512			1,486			1,536			1.7		(1.6	)		2,998			2,937			2.1
Net (income) loss attributable to noncontrolling interests		(12	)		(13	)		(14	)		7.7		14.3			(25	)		(29	)		13.8
Net income attributable to U.S. Bancorp	$	1,500		$	1,473		$	1,522			1.8		(1.4	)	$	2,973		$	2,908			2.2
Net income applicable to U.S. Bancorp common shareholders	$	1,430		$	1,387		$	1,435			3.1		(.3	)	$	2,817		$	2,764			1.9
Diluted earnings per common share	$	.85		$	.82		$	.83			3.7		2.4		$	1.66		$	1.59			4.4

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U.S. Bancorp Reports Second Quarter 2017 Results

July 19, 2017

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NET INTEREST INCOME																							Table 3
(Taxable-equivalent basis; $ in millions)
										Change			Change
	2Q			1Q			2Q			2Q17 vs			2Q17 vs			YTD			YTD
	2017			2017			2016			1Q17			2Q16			2017			2016			Change
Components of net interest income
Income on earning assets	$	3,584		$	3,451		$	3,305		$	133		$	279		$	7,035		$	6,580		$	455
Expense on interest-bearing liabilities		516			456			409			60			107			972			796			176
Net interest income	$	3,068		$	2,995		$	2,896		$	73		$	172		$	6,063		$	5,784		$	279
Average yields and rates paid
Earning assets yield		3.56	%		3.49	%		3.44	%		.07	%		.12	%		3.52	%		3.46	%		.06	%
Rate paid on interest-bearing liabilities		.69			.62			.58			.07			.11			.66			.57			.09
Gross interest margin		2.87	%		2.87	%		2.86	%		—	%		.01	%		2.86	%		2.89	%		(.03	)%
Net interest margin		3.04	%		3.03	%		3.02	%		.01	%		.02	%		3.04	%		3.04	%		—	%
Average balances
Investment securities (a)	$	111,368		$	110,764		$	107,132		$	604		$	4,236		$	111,067		$	106,581		$	4,486
Loans		275,528			273,158			266,582			2,370			8,946			274,350			264,432			9,918
Earning assets		403,883			399,281			385,368			4,602			18,515			401,595			381,788			19,807
Interest-bearing liabilities		299,271			296,170			285,796			3,101			13,475			297,729			282,656			15,073

(a) Excludes unrealized gain (loss)

Net Interest Income

Net interest income on a taxable-equivalent basis in the second quarter of 2017 was $3,068 million, an increase of $172 million (5.9 percent) over the second quarter of 2016. The increase was principally driven by loan growth and the impact of higher interest rates. Average earning assets were $18.5 billion (4.8 percent) higher than the second quarter of 2016, reflecting increases of $8.9 billion (3.4 percent) in average total loans, $4.2 billion (4.0 percent) in average investment securities and higher average cash balances to meet certain regulatory liquidity expectations. Net interest income on a taxable-equivalent basis increased $73 million (2.4 percent) linked quarter driven by loan growth, the impact of higher interest rates and an additional day in the second quarter. In addition, average earning assets were $4.6 billion higher on a linked quarter basis, mainly from higher average loans and average cash balances.

The net interest margin in the second quarter of 2017 was 3.04 percent, compared with 3.02 percent in the second quarter of 2016, and 3.03 percent in the first quarter of 2017. The increase in the net interest margin on a year-over-year basis was due to rising interest rates partially offset by loan portfolio mix, lower

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reinvestment rates on maturing securities through the first quarter of 2017 and higher cash balances. The increase on a linked quarter basis was primarily driven by the recent Federal Reserve rate increases, partially offset by the impact of a flatter yield curve and higher cash balances.

Investment Securities

Average investment securities in the second quarter of 2017 were $4.2 billion (4.0 percent) higher year-over-year and $604 million (0.5 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, in support of liquidity management.

AVERAGE LOANS																		Table 4
($ in millions)							Percent			Percent
							Change			Change
	2Q		1Q		2Q		2Q17 vs			2Q17 vs			YTD		YTD		Percent
	2017		2017		2016		1Q17			2Q16			2017		2016		Change
Commercial	$	90,061	$	88,284	$	86,899		2.0			3.6		$	89,177	$	85,741		4.0
Lease financing		5,577		5,455		5,255		2.2			6.1			5,517		5,246		5.2
Total commercial		95,638		93,739		92,154		2.0			3.8			94,694		90,987		4.1
Commercial mortgages		30,627		31,461		31,950		(2.7	)		(4.1	)		31,042		31,893		(2.7	)
Construction and development		11,922		11,697		11,038		1.9			8.0			11,810		10,801		9.3
Total commercial real estate		42,549		43,158		42,988		(1.4	)		(1.0	)		42,852		42,694		.4
Residential mortgages		58,544		57,900		55,501		1.1			5.5			58,224		54,854		6.1
Credit card		20,631		20,845		20,140		(1.0	)		2.4			20,737		20,192		2.7
Retail leasing		7,181		6,469		5,326		11.0			34.8			6,827		5,253		30.0
Home equity and second mortgages		16,252		16,259		16,394		—			(.9	)		16,256		16,381		(.8	)
Other		31,194		31,056		29,748		.4			4.9			31,125		29,649		5.0
Total other retail		54,627		53,784		51,468		1.6			6.1			54,208		51,283		5.7
Total loans, excluding covered loans		271,989		269,426		262,251		1.0			3.7			270,715		260,010		4.1
Covered loans		3,539		3,732		4,331		(5.2	)		(18.3	)		3,635		4,422		(17.8	)
Total loans	$	275,528	$	273,158	$	266,582		.9			3.4		$	274,350	$	264,432		3.8

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U.S. Bancorp Reports Second Quarter 2017 Results

July 19, 2017

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Loans

Average total loans were $8.9 billion (3.4 percent) higher in the second quarter of 2017 than the second quarter of 2016. The increase was due to growth in total commercial loans (3.8 percent), total other retail loans (6.1 percent), residential mortgages (5.5 percent), and credit card loans (2.4 percent). These increases were partially offset by a decrease in total commercial real estate loans (1.0 percent) due to payoffs given recent capital market financing by customers and run-off in the covered loans portfolio (18.3 percent). Average total loans were $2.4 billion (0.9 percent) higher in the second quarter of 2017 than the first quarter of 2017. This increase was primarily driven by linked quarter growth in total commercial loans (2.0 percent), total other retail loans (1.6 percent) and residential mortgages (1.1 percent), partially offset by decreases in total commercial real estate loans (1.4 percent), credit card loans (1.0 percent) and covered loans (5.2 percent).

AVERAGE DEPOSITS																		Table 5
($ in millions)							Percent			Percent
							Change			Change
	2Q		1Q		2Q		2Q17 vs			2Q17 vs			YTD		YTD		Percent
	2017		2017		2016		1Q17			2Q16			2017		2016		Change
Noninterest-bearing deposits	$	82,710	$	80,738	$	79,171		2.4			4.5		$	81,729	$	78,870		3.6
Interest-bearing savings deposits
Interest checking		67,290		65,681		60,842		2.4			10.6			66,490		59,376		12.0
Money market savings		106,777		108,759		92,904		(1.8	)		14.9			107,763		89,683		20.2
Savings accounts		43,524		42,609		40,258		2.1			8.1			43,069		39,754		8.3
Total savings deposits		217,591		217,049		194,004		.2			12.2			217,322		188,813		15.1
Time deposits		30,871		30,646		34,211		.7			(9.8	)		30,759		33,949		(9.4	)
Total interest-bearing deposits		248,462		247,695		228,215		.3			8.9			248,081		222,762		11.4
Total deposits	$	331,172	$	328,433	$	307,386		.8			7.7		$	329,810	$	301,632		9.3

Deposits

Average total deposits for the second quarter of 2017 were $23.8 billion (7.7 percent) higher than the second quarter of 2016. Average noninterest-bearing deposits increased $3.5 billion (4.5 percent) year-over-year driven by growth across all business lines. Average total savings deposits were $23.6 billion (12.2 percent) higher year-over-year, the result of growth across all business lines. Average time deposits were $3.3 billion (9.8 percent) lower than the prior year quarter. Changes in time deposits are largely related to

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

Average total deposits increased $2.7 billion (0.8 percent) over the first quarter of 2017. On a linked quarter basis, average noninterest-bearing deposits increased $2.0 billion (2.4 percent) mainly in Wealth Management and Securities Services and Consumer and Small Business Banking. Average total savings deposits grew $542 million (0.2 percent) primarily driven by Consumer and Small Business Banking and Wealth Management and Securities Services, partially offset by decreases in Wholesale Banking and Commercial Real Estate. Average time deposits, which are managed based on funding needs, relative pricing, and liquidity characteristics, increased $225 million (0.7 percent) on a linked quarter basis.

NONINTEREST INCOME																		Table 6
($ in millions)							Percent			Percent
							Change			Change
	2Q		1Q		2Q		2Q17 vs			2Q17 vs			YTD		YTD		Percent
	2017		2017		2016		1Q17			2Q16			2017		2016		Change
Credit and debit card revenue	$	319	$	292	$	296		9.2			7.8		$	611	$	562		8.7
Corporate payment products revenue		184		179		181		2.8			1.7			363		351		3.4
Merchant processing services		407		378		403		7.7			1.0			785		776		1.2
ATM processing services		90		85		84		5.9			7.1			175		164		6.7
Trust and investment management fees		380		368		358		3.3			6.1			748		697		7.3
Deposit service charges		184		177		179		4.0			2.8			361		347		4.0
Treasury management fees		160		153		147		4.6			8.8			313		289		8.3
Commercial products revenue		210		207		238		1.4			(11.8	)		417		435		(4.1	)
Mortgage banking revenue		212		207		238		2.4			(10.9	)		419		425		(1.4	)
Investment products fees		41		40		39		2.5			5.1			81		79		2.5
Securities gains (losses), net		9		29		3		(69.0	)		nm			38		6		nm
Other		223		214		386		4.2			(42.2	)		437		570		(23.3	)
Total noninterest income	$	2,419	$	2,329	$	2,552		3.9			(5.2	)	$	4,748	$	4,701		1.0

Noninterest Income

Second quarter noninterest income of $2,419 million was $133 million (5.2 percent) lower than the second quarter of 2016. Excluding the impact of the second quarter 2016 notable item ($180 million of equity investment income, primarily the result of selling our membership in Visa Europe Limited to Visa, Inc.), noninterest income increased $47 million (2.0 percent), driven by increases in payment services revenue, trust and investment management fees, and treasury management fees, partially offset by decreases

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U.S. Bancorp Reports Second Quarter 2017 Results

July 19, 2017

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in commercial products revenue and mortgage banking revenue. Payment services revenue was higher principally due to an increase in credit and debit card revenue of $23 million (7.8 percent), driven by higher sales volumes. Merchant processing services revenue increased $4 million (1.0 percent). Adjusted for the impact of foreign currency rate changes, year-over-year merchant processing services revenue increased approximately 2.7 percent. Trust and investment management fees increased $22 million (6.1 percent) primarily due to favorable market conditions and account growth. Treasury management fees increased $13 million (8.8 percent) due to higher transaction volume. Commercial products revenue decreased $28 million (11.8 percent) primarily due to significant market activity in the second quarter of 2016. Mortgage banking revenue decreased $26 million (10.9 percent) due to lower origination and sales volume from home refinancing. Refinancing activities were significantly higher in the second quarter of 2016 due to lower long term interest rates.

Noninterest income was $90 million (3.9 percent) higher in the second quarter of 2017 than the first quarter of 2017 reflecting seasonally higher fee-based revenue driven by payment services revenue. Payment services revenue growth included increases in credit and debit card revenue of $27 million (9.2 percent), corporate payment product revenue of $5 million (2.8 percent) and merchant processing services revenue of $29 million (7.7 percent) primarily due to higher sales volumes. Trust and investment management fees increased $12 million (3.3 percent) principally due to account growth.

NONINTEREST EXPENSE																		Table 7
($ in millions)							Percent			Percent
							Change			Change
	2Q		1Q		2Q		2Q17 vs			2Q17 vs			YTD		YTD		Percent
	2017		2017		2016		1Q17			2Q16			2017		2016		Change
Compensation	$	1,416	$	1,391	$	1,277		1.8			10.9		$	2,807	$	2,526		11.1
Employee benefits		287		314		278		(8.6	)		3.2			601		578		4.0
Net occupancy and equipment		255		247		243		3.2			4.9			502		491		2.2
Professional services		105		96		121		9.4			(13.2	)		201		219		(8.2	)
Marketing and business development		109		90		149		21.1			(26.8	)		199		226		(11.9	)
Technology and communications		242		235		241		3.0			.4			477		474		.6
Postage, printing and supplies		81		81		77		—			5.2			162		156		3.8
Other intangibles		43		44		44		(2.3	)		(2.3	)		87		89		(2.2	)
Other		485		446		562		8.7			(13.7	)		931		982		(5.2	)
Total noninterest expense	$	3,023	$	2,944	$	2,992		2.7			1.0		$	5,967	$	5,741		3.9

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U.S. Bancorp Reports Second Quarter 2017 Results

July 19, 2017

Page 10

Noninterest Expense

Second quarter noninterest expense of $3,023 million was $31 million (1.0 percent) higher than the second quarter of 2016. Excluding the second quarter 2016 notable items, noninterest expense increased $181 million (6.4 percent) primarily due to higher compensation and other noninterest expense. Second quarter 2016 notable items included $110 million in accruals related to legal and regulatory matters, along with $40 million for charitable contributions. Compensation expense increased $139 million (10.9 percent) principally due to the impact of hiring to support business growth and compliance programs, merit increases, and higher variable compensation. Other expense increased $33 million (7.3 percent) primarily due to the impact of the FDIC insurance surcharge which began in the third quarter of 2016.

Noninterest expense increased $79 million (2.7 percent) on a linked quarter basis driven by higher compensation expense, marketing and business development expense, and other expense, partially offset by lower employee benefits expense. Compensation expense increased $25 million (1.8 percent) principally due to the impact of hiring to support business growth and compliance programs, merit increases, and higher variable compensation. Marketing and business development expense increased $19 million (21.1 percent) due to the timing of certain revenue-related marketing and brand advertising, while other expense increased $39 million (8.7 percent) reflecting higher costs related to investments in tax-advantaged projects. Partially offsetting these increases was a decrease in employee benefits expense of $27 million (8.6 percent) driven by seasonally lower payroll tax expense.

Provision for Income Taxes

The provision for income taxes for the second quarter of 2017 resulted in a tax rate on a taxable-equivalent basis of 28.5 percent (effective tax rate of 26.7 percent), compared with 27.9 percent (effective tax rate of 26.1 percent) in the second quarter of 2016, and 27.0 percent (effective tax rate of 25.1 percent) in the first quarter of 2017. The lower tax rate for the first quarter of 2017 reflected the tax benefit associated with stock-based compensation under new accounting guidance effective the first quarter of 2017. The impact of this guidance is expected to principally be reflected in the first quarter of each year.

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U.S. Bancorp Reports Second Quarter 2017 Results

July 19, 2017

Page 11

ALLOWANCE FOR CREDIT LOSSES																										Table 8
($ in millions)	2Q 2017			% (b)			1Q 2017			% (b)			4Q 2016			% (b)			3Q 2016			% (b)			2Q 2016			% (b)
Balance, beginning of period	$	4,366					$	4,357					$	4,338					$	4,329					$	4,320
Net charge-offs
Commercial		75			.33			71			.33			71			.32			84			.38			74			.34
Lease financing		3			.22			4			.30			5			.37			3			.23			5			.38
Total commercial		78			.33			75			.32			76			.32			87			.37			79			.34
Commercial mortgages		(7	)		(.09	)		(1	)		(.01	)		(3	)		(.04	)		5			.06			(4	)		(.05	)
Construction and development		(2	)		(.07	)		(1	)		(.03	)		(6	)		(.21	)		(4	)		(.14	)		4			.15
Total commercial real estate		(9	)		(.08	)		(2	)		(.02	)		(9	)		(.08	)		1			.01			—			—
Residential mortgages		8			.05			12			.08			12			.08			12			.08			17			.12
Credit card		204			3.97			190			3.70			181			3.44			161			3.11			170			3.39
Retail leasing		2			.11			3			.19			1			.06			1			.07			2			.15
Home equity and second mortgages		(1	)		(.02	)		(1	)		(.02	)		(1	)		(.02	)		1			.02			(1	)		(.02	)
Other		58			.75			58			.76			62			.79			52			.68			50			.68
Total other retail		59			.43			60			.45			62			.46			54			.41			51			.40
Total net charge-offs, excluding covered loans		340			.50			335			.50			322			.48			315			.47			317			.49
Covered loans		—			—			—			—			—			—			—			—			—			—
Total net charge-offs		340			.49			335			.50			322			.47			315			.46			317			.48
Provision for credit losses		350						345						342						325						327
Other changes (a)		1						(1	)					(1	)					(1	)					(1	)
Balance, end of period	$	4,377					$	4,366					$	4,357					$	4,338					$	4,329
Components
Allowance for loan losses	$	3,856					$	3,816					$	3,813					$	3,797					$	3,806
Liability for unfunded credit commitments		521						550						544						541						523
Total allowance for credit losses	$	4,377					$	4,366					$	4,357					$	4,338					$	4,329
Gross charge-offs	$	437					$	417					$	405					$	398					$	407
Gross recoveries	$	97					$	82					$	83					$	83					$	90
Allowance for credit losses as a percentage of Period-end loans, excluding covered loans		1.59						1.61						1.60						1.61						1.62
Nonperforming loans, excluding covered loans		385						338						317						309						311
Nonperforming assets, excluding covered assets		331						296						275						264						263
Period-end loans		1.58						1.60						1.59						1.60						1.61
Nonperforming loans		383						338						318						310						312
Nonperforming assets		324						292						272						261						259

(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 Second Quarter 2017 Results

July 19, 2017

Page 12

Credit Quality

The Company’s provision for credit losses for the second quarter of 2017 was $350 million, which was $5 million (1.4 percent) higher than the prior quarter and $23 million (7.0 percent) higher than the second quarter of 2016. Credit quality was relatively stable compared with the first quarter of 2017.

The provision for credit losses was $10 million higher than net charge-offs in the second quarter of 2017, the first quarter of 2017, and the second quarter of 2016. Total net charge-offs in the second quarter of 2017 were $340 million, compared with $335 million in the first quarter of 2017, and $317 million in the second quarter of 2016. Net charge-offs increased $5 million (1.5 percent) compared with the first quarter of 2017 mainly due to higher credit card loan net charge-offs. Net charge-offs increased $23 million (7.3 percent) compared with the second quarter of 2016 primarily due to higher credit card loan net charge-offs, partially offset by lower net charge-offs from total commercial real estate and residential mortgages. The net charge-off ratio was 0.49 percent in the second quarter of 2017, compared with 0.50 percent in the first quarter of 2017 and 0.48 percent in the second quarter of 2016.

The allowance for credit losses was $4,377 million at June 30, 2017, compared with $4,366 million at March 31, 2017, and $4,329 million at June 30, 2016. The ratio of the allowance for credit losses to period-end loans was 1.58 percent at June 30, 2017, compared with 1.60 percent at March 31, 2017, and 1.61 percent at June 30, 2016. The ratio of the allowance for credit losses to nonperforming loans was 383 percent at June 30, 2017, compared with 338 percent at March 31, 2017, and 312 percent at June 30, 2016.

Nonperforming assets were $1,349 million at June 30, 2017, compared with $1,495 million at March 31, 2017, and $1,672 million at June 30, 2016. The ratio of nonperforming assets to loans and other real estate was 0.49 percent at June 30, 2017, compared with 0.55 percent at March 31, 2017, and 0.62 percent at June 30, 2016. The $146 million (9.8 percent) decrease in nonperforming assets on a linked quarter basis was driven by improvements in commercial loans and residential mortgages. The $323 million (19.3 percent) decrease in nonperforming assets on a year-over-year basis was driven by improvements in commercial loans, residential mortgages and other real estate. Accruing loans 90 days or more past due were $639 million ($477 million excluding covered loans) at June 30, 2017, compared with $718 million ($524 million excluding covered loans) at March 31, 2017, and $724 million ($478 million excluding covered loans) at June 30, 2016.

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U.S. Bancorp Reports Second Quarter 2017 Results

July 19, 2017

Page 13

DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES										Table 9
(Percent)
	Jun 30 2017		Mar 31 2017		Dec 31 2016		Sep 30 2016		Jun 30 2016
Delinquent loan ratios - 90 days or more past due excluding nonperforming loans
Commercial		.05		.06		.06		.05		.05
Commercial real estate		—		.01		.02		.02		.03
Residential mortgages		.20		.24		.27		.28		.27
Credit card		1.10		1.23		1.16		1.11		.98
Other retail		.14		.14		.15		.14		.13
Total loans, excluding covered loans		.17		.19		.20		.19		.18
Covered loans		4.71		5.34		5.53		5.72		5.81
Total loans		.23		.26		.28		.28		.27
Delinquent loan ratios - 90 days or more past due including nonperforming loans
Commercial		.39		.52		.57		.61		.58
Commercial real estate		.29		.27		.31		.26		.27
Residential mortgages		1.10		1.23		1.31		1.37		1.39
Credit card		1.10		1.24		1.18		1.13		1.00
Other retail		.42		.43		.45		.42		.43
Total loans, excluding covered loans		.59		.67		.71		.72		.70
Covered loans		5.06		5.53		5.68		5.89		5.98
Total loans		.64		.73		.78		.79		.79

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U.S. Bancorp Reports Second Quarter 2017 Results

July 19, 2017

Page 14

ASSET QUALITY										Table 10
($ in millions)
	Jun 30 2017		Mar 31 2017		Dec 31 2016		Sep 30 2016		Jun 30 2016
Nonperforming loans
Commercial	$	283	$	397	$	443	$	477	$	450
Lease financing		39		42		40		40		39
Total commercial		322		439		483		517		489
Commercial mortgages		84		74		87		98		91
Construction and development		35		36		37		7		12
Total commercial real estate		119		110		124		105		103
Residential mortgages		530		575		595		614		628
Credit card		1		2		3		4		5
Other retail		158		157		157		153		157
Total nonperforming loans, excluding covered loans		1,130		1,283		1,362		1,393		1,382
Covered loans		12		7		6		7		7
Total nonperforming loans		1,142		1,290		1,368		1,400		1,389
Other real estate (a)		157		155		186		213		229
Covered other real estate (a)		25		22		26		28		34
Other nonperforming assets		25		28		23		23		20
Total nonperforming assets (b)	$	1,349	$	1,495	$	1,603	$	1,664	$	1,672
Total nonperforming assets, excluding covered assets	$	1,312	$	1,466	$	1,571	$	1,629	$	1,631
Accruing loans 90 days or more past due, excluding covered loans	$	477	$	524	$	552	$	518	$	478
Accruing loans 90 days or more past due	$	639	$	718	$	764	$	748	$	724
Performing restructured loans, excluding GNMA and covered loans	$	2,473	$	2,478	$	2,557	$	2,672	$	2,676
Performing restructured GNMA and covered loans	$	1,803	$	1,746	$	1,604	$	1,375	$	1,602
Nonperforming assets to loans plus ORE, excluding covered assets (%)		.48		.54		.58		.61		.62
Nonperforming assets to loans plus ORE (%)		.49		.55		.59		.61		.62

(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 Second Quarter 2017 Results

July 19, 2017

Page 15

COMMON SHARES														Table 11
(Millions)	2Q 2017			1Q 2017			4Q 2016			3Q 2016			2Q 2016
Beginning shares outstanding		1,692			1,697			1,705			1,719			1,732
Shares issued for stock incentive plans, acquisitions and other corporate purposes		1			6			6			2			2
Shares repurchased		(14	)		(11	)		(14	)		(16	)		(15	)
Ending shares outstanding		1,679			1,692			1,697			1,705			1,719

CAPITAL POSITION														Table 12
($ in millions)	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sep 30 2016			Jun 30 2016
Total U.S. Bancorp shareholders’ equity	$	48,320		$	47,798		$	47,298		$	47,759		$	47,390
Standardized Approach
Basel III transitional standardized approach
Common equity tier 1 capital	$	34,408		$	33,847		$	33,720		$	33,827		$	33,444
Tier 1 capital		39,943			39,374			39,421			39,531			39,148
Total risk-based capital		47,824			47,279			47,355			47,452			47,049
Common equity tier 1 capital ratio		9.5	%		9.5	%		9.4	%		9.5	%		9.5	%
Tier 1 capital ratio		11.1			11.0			11.0			11.1			11.1
Total risk-based capital ratio		13.2			13.3			13.2			13.3			13.4
Leverage ratio		9.1			9.1			9.0			9.2			9.3
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach (a)		9.3			9.2			9.1			9.3			9.3
Advanced Approaches
Common equity tier 1 capital to risk-weighted assets for the Basel III transitional advanced approaches		12.0			11.8			12.2			12.4			12.3
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches (a)		11.7			11.5			11.7			12.1			12.0
Tangible common equity to tangible assets (a)		7.5			7.6			7.5			7.5			7.6
Tangible common equity to risk-weighted assets (a)		9.4			9.4			9.2			9.3			9.3

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 Second Quarter 2017 Results

July 19, 2017

Page 16

Capital Management

Total U.S. Bancorp shareholders’ equity was $48.3 billion at June 30, 2017, compared with $47.8 billion at March 31, 2017, and $47.4 billion at June 30, 2016. During the second 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 9.3 percent at June 30, 2017, compared with 9.2 percent at March 31, 2017, and 9.3 percent at June 30, 2016. 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 June 30, 2017, compared with 11.5 percent at March 31, 2017, and 12.0 percent at June 30, 2016.

On Wednesday, July 19, 2017, at 8:00 a.m. CDT, Andy Cecere, president 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 32712626. For those unable to participate during the live call, a recording will be available at approximately 11:00 a.m. CDT on Wednesday, July 19 and will be accessible through Wednesday, July 26 at 11:00 p.m. CDT. To access the recorded message within the United States and Canada, please 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 32712626.

Minneapolis-based U.S. Bancorp (NYSE: USB), with $464 billion in assets as of June 30, 2017, is the parent company of U.S. Bank National Association, the fifth largest commercial bank in the United States. The Company operates 3,088 banking offices in 25 states and 4,826 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 Second Quarter 2017 Results

July 19, 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, changes to statutes, regulations, or regulatory policies or practices could affect U.S. Bancorp in substantial and unpredictable ways. U.S. Bancorp’s results could also be adversely affected by deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in its investment securities portfolio; legal and regulatory developments; 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, 2016, 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 Second Quarter 2017 Results

July 19, 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 negative 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.

###

U.S. Bancorp

Consolidated Statement of Income

(Dollars and Shares in Millions, Except Per Share Data)	Three Months Ended June 30,						Six Months Ended June 30,
(Unaudited)	2017			2016			2017			2016
Interest Income
Loans	$	2,901		$	2,664		$	5,698		$	5,308
Loans held for sale		29			36			64			67
Investment securities		555			523			1,085			1,040
Other interest income		46			29			84			58
Total interest income		3,531			3,252			6,931			6,473
Interest Expense
Deposits		238			152			437			291
Short-term borrowings		77			66			143			131
Long-term debt		199			189			389			371
Total interest expense		514			407			969			793
Net interest income		3,017			2,845			5,962			5,680
Provision for credit losses		350			327			695			657
Net interest income after provision for credit losses		2,667			2,518			5,267			5,023
Noninterest Income
Credit and debit card revenue		319			296			611			562
Corporate payment products revenue		184			181			363			351
Merchant processing services		407			403			785			776
ATM processing services		90			84			175			164
Trust and investment management fees		380			358			748			697
Deposit service charges		184			179			361			347
Treasury management fees		160			147			313			289
Commercial products revenue		210			238			417			435
Mortgage banking revenue		212			238			419			425
Investment products fees		41			39			81			79
Securities gains (losses), net		9			3			38			6
Other		223			386			437			570
Total noninterest income		2,419			2,552			4,748			4,701
Noninterest Expense
Compensation		1,416			1,277			2,807			2,526
Employee benefits		287			278			601			578
Net occupancy and equipment		255			243			502			491
Professional services		105			121			201			219
Marketing and business development		109			149			199			226
Technology and communications		242			241			477			474
Postage, printing and supplies		81			77			162			156
Other intangibles		43			44			87			89
Other		485			562			931			982
Total noninterest expense		3,023			2,992			5,967			5,741
Income before income taxes		2,063			2,078			4,048			3,983
Applicable income taxes		551			542			1,050			1,046
Net income		1,512			1,536			2,998			2,937
Net (income) loss attributable to noncontrolling interests		(12	)		(14	)		(25	)		(29	)
Net income attributable to U.S. Bancorp	$	1,500		$	1,522		$	2,973		$	2,908
Net income applicable to U.S. Bancorp common shareholders	$	1,430		$	1,435		$	2,817		$	2,764
Earnings per common share	$	.85		$	.83		$	1.67		$	1.60
Diluted earnings per common share	$	.85		$	.83		$	1.66		$	1.59
Dividends declared per common share	$	.280		$	.255		$	.560		$	.510
Average common shares outstanding		1,684			1,725			1,689			1,731
Average diluted common shares outstanding		1,690			1,731			1,695			1,737

Page 19

U.S. Bancorp

Consolidated Ending Balance Sheet

(Dollars in Millions)	June 30, 2017			December 31, 2016			June 30, 2016
	(Unaudited)						(Unaudited)
Assets
Cash and due from banks	$	28,964		$	15,705		$	14,038
Investment securities
Held-to-maturity		43,659			42,991			42,030
Available-for-sale		67,455			66,284			66,490
Loans held for sale		3,661			4,826			4,311
Loans
Commercial		96,836			93,386			92,514
Commercial real estate		41,908			43,098			43,290
Residential mortgages		58,796			57,274			55,904
Credit card		20,861			21,749			20,571
Other retail		55,445			53,864			52,008
Total loans, excluding covered loans		273,846			269,371			264,287
Covered loans		3,437			3,836			4,234
Total loans		277,283			273,207			268,521
Less allowance for loan losses		(3,856	)		(3,813	)		(3,806	)
Net loans		273,427			269,394			264,715
Premises and equipment		2,413			2,443			2,459
Goodwill		9,361			9,344			9,359
Other intangible assets		3,216			3,303			2,852
Other assets		31,688			31,674			32,209
Total assets	$	463,844		$	445,964		$	438,463
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing	$	93,029		$	86,097		$	86,572
Interest-bearing		254,233			248,493			231,018
Total deposits		347,262			334,590			317,590
Short-term borrowings		14,412			13,963			18,433
Long-term debt		37,814			33,323			36,941
Other liabilities		15,407			16,155			17,470
Total liabilities		414,895			398,031			390,434
Shareholders’ equity
Preferred stock		5,419			5,501			5,501
Common stock		21			21			21
Capital surplus		8,425			8,440			8,402
Retained earnings		52,033			50,151			48,269
Less treasury stock		(16,332	)		(15,280	)		(14,241	)
Accumulated other comprehensive income (loss)		(1,246	)		(1,535	)		(562	)
Total U.S. Bancorp shareholders’ equity		48,320			47,298			47,390
Noncontrolling interests		629			635			639
Total equity		48,949			47,933			48,029
Total liabilities and equity	$	463,844		$	445,964		$	438,463

Page 20

U.S. Bancorp

Non-GAAP Financial Measures

(Dollars in Millions, Unaudited)	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Total equity	$	48,949		$	48,433		$	47,933		$	48,399		$	48,029
Preferred stock		(5,419	)		(5,419	)		(5,501	)		(5,501	)		(5,501	)
Noncontrolling interests		(629	)		(635	)		(635	)		(640	)		(639	)
Goodwill (net of deferred tax liability) (1)		(8,181	)		(8,186	)		(8,203	)		(8,239	)		(8,246	)
Intangible assets, other than mortgage servicing rights		(634	)		(671	)		(712	)		(756	)		(796	)
Tangible common equity (a)		34,086			33,522			32,882			33,263			32,847
Tangible common equity (as calculated above)		34,086			33,522			32,882			33,263			32,847
Adjustments (2)		(51	)		(136	)		(55	)		97			133
Common equity tier 1 capital estimated for the Basel III fully implemented standardized and advanced approaches (b)		34,035			33,386			32,827			33,360			32,980
Total assets		463,844			449,522			445,964			454,134			438,463
Goodwill (net of deferred tax liability) (1)		(8,181	)		(8,186	)		(8,203	)		(8,239	)		(8,246	)
Intangible assets, other than mortgage servicing rights		(634	)		(671	)		(712	)		(756	)		(796	)
Tangible assets (c)		455,029			440,665			437,049			445,139			429,421
Risk-weighted assets, determined in accordance with prescribed transitional standardized approach regulatory requirements (d)		361,164	*		356,373			358,237			356,733			351,462
Adjustments (3)		3,967	*		4,731			4,027			3,165			3,079
Risk-weighted assets estimated for the Basel III fully implemented standardized approach (e)		365,131	*		361,104			362,264			359,898			354,541
Risk-weighted assets, determined in accordance with prescribed transitional advanced approaches regulatory requirements		287,124	*		285,963			277,141			272,832			271,495
Adjustments (4)		4,231	*		5,046			4,295			3,372			3,283
Risk-weighted assets estimated for the Basel III fully implemented advanced approaches (f)		291,355	*		291,009			281,436			276,204			274,778
Ratios *
Tangible common equity to tangible assets (a)/(c)		7.5	%		7.6	%		7.5	%		7.5	%		7.6	%
Tangible common equity to risk-weighted assets (a)/(d)		9.4			9.4			9.2			9.3			9.3
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach (b)/(e)		9.3			9.2			9.1			9.3			9.3
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches (b)/(f)		11.7			11.5			11.7			12.1			12.0
	Three Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Net interest income	$	3,017		$	2,945		$	2,955		$	2,893		$	2,845
Taxable-equivalent adjustment (5)		51			50			49			50			51
Net interest income, on a taxable-equivalent basis		3,068			2,995			3,004			2,943			2,896
Net interest income, on a taxable-equivalent basis (as calculated above)		3,068			2,995			3,004			2,943			2,896
Noninterest income		2,419			2,329			2,431			2,445			2,552
Less: Securities gains (losses), net		9			29			6			10			3
Total net revenue, excluding net securities gains (losses) (g)		5,478			5,295			5,429			5,378			5,445
Noninterest expense (h)		3,023			2,944			3,004			2,931			2,992
Less: Intangible amortization		43			44			45			45			44
Noninterest expense, excluding intangible amortization (i)		2,980			2,900			2,959			2,886			2,948
Efficiency ratio (h)/(g)		55.2	%		55.6	%		55.3	%		54.5	%		54.9	%
Tangible efficiency ratio (i)/(g)		54.4			54.8			54.5			53.7			54.1

* 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

2Q 2017

U.S. Bancorp Second Quarter 2017 Business Line Results

July 19, 2017

Page 2

LINE OF BUSINESS FINANCIAL PERFORMANCE (a)
($ in millions)
	Net Income Attributable to U.S. Bancorp						Percent Change						Net Income Attributable to U.S. Bancorp							2Q 2017
Business Line	2Q 2017		1Q 2017		2Q 2016		2Q17 vs 1Q17			2Q17 vs 2Q16			YTD 2017		YTD 2016		Percent Change			Earnings Composition
Wholesale Banking and Commercial Real Estate	$	291	$	255	$	232		14.1			25.4		$	546	$	348		56.9			20	%
Consumer and Small Business Banking		319		302		331		5.6			(3.6	)		621		686		(9.5	)		21
Wealth Management and Securities Services		124		107		95		15.9			30.5			231		170		35.9			8
Payment Services		257		268		319		(4.1	)		(19.4	)		525		605		(13.2	)		17
Treasury and Corporate Support		509		541		545		(5.9	)		(6.6	)		1,050		1,099		(4.5	)		34
Consolidated Company	$	1,500	$	1,473	$	1,522		1.8			(1.4)		$	2,973	$	2,908		2.2			100	%

(a) preliminary data

Lines of Business

The Company’s major lines of business are Wholesale Banking and Commercial Real Estate, Consumer and Small Business Banking, Wealth Management and Securities Services, Payment Services, and Treasury and Corporate Support. These operating segments are components of the Company about which financial information is prepared and is evaluated regularly by management in deciding how to allocate resources and assess performance. Noninterest expenses incurred by centrally managed operations or business lines that directly support another business line’s operations are charged to the applicable business line based on its utilization of those services, primarily measured by the volume of customer activities, number of employees or other relevant factors. These allocated expenses are reported as net shared services expense within noninterest expense. Designations, assignments and allocations change from time to time as management systems are enhanced, methods of evaluating performance or product lines change or business segments are realigned to better respond to the Company’s diverse customer base. During 2017, certain organization and methodology changes were made and, accordingly, prior period results were restated and presented on a comparable basis.

U.S. Bancorp Second Quarter 2017 Business Line Results

July 19, 2017

Page 3

WHOLESALE BANKING AND COMMERCIAL REAL ESTATE (a)
($ in millions)
									Percent Change
	2Q 2017			1Q 2017			2Q 2016		2Q17 vs 1Q17			2Q17 vs 2Q16			YTD 2017			YTD 2016		Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	602		$	588		$	546		2.4			10.3		$	1,190		$	1,075		10.7
Noninterest income		238			244			250		(2.5	)		(4.8	)		482			456		5.7
Securities gains (losses), net		—			(3	)		—		nm			—			(3	)		—		nm
Total net revenue		840			829			796		1.3			5.5			1,669			1,531		9.0
Noninterest expense		399			391			363		2.0			9.9			790			714		10.6
Other intangibles		1			1			1		—			—			2			2		—
Total noninterest expense		400			392			364		2.0			9.9			792			716		10.6
Income before provision and taxes		440			437			432		.7			1.9			877			815		7.6
Provision for credit losses		(18	)		36			68		nm			nm			18			269		(93.3	)
Income before income taxes		458			401			364		14.2			25.8			859			546		57.3
Income taxes and taxable-equivalent adjustment		167			146			132		14.4			26.5			313			198		58.1
Net income		291			255			232		14.1			25.4			546			348		56.9
Net (income) loss attributable to noncontrolling interests		—			—			—		—			—			—			—		—
Net income attributable to U.S. Bancorp	$	291		$	255		$	232		14.1			25.4		$	546		$	348		56.9
Average Balance Sheet Data
Loans	$	94,221		$	93,727		$	92,091		.5			2.3		$	93,976		$	91,118		3.1
Other earning assets		3,107			2,882			2,232		7.8			39.2			2,995			2,235		34.0
Goodwill		1,647			1,647			1,647		—			—			1,647			1,647		—
Other intangible assets		14			15			17		(6.7	)		(17.6	)		14			18		(22.2	)
Assets		103,099			102,308			100,475		.8			2.6			102,706			99,459		3.3
Noninterest-bearing deposits		36,362			36,884			36,183		(1.4	)		.5			36,622			36,441		.5
Interest-bearing deposits		68,859			70,533			61,418		(2.4	)		12.1			69,691			58,112		19.9
Total deposits		105,221			107,417			97,601		(2.0	)		7.8			106,313			94,553		12.4
Total U.S. Bancorp shareholders’ equity		9,921			9,680			8,966		2.5			10.7			9,801			8,892		10.2

(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 $291 million of the Company’s net income in the second quarter of 2017, compared with $232 million in the second quarter of 2016. Wholesale Banking and Commercial Real Estate’s net income increased $59 million (25.4 percent) over the same quarter of 2016. Total net revenue increased $44 million (5.5 percent) due to a $56 million (10.3 percent) increase in net interest income, partially offset by a decrease of $12 million (4.8 percent) in total noninterest income. Net interest income grew year-over-year primarily due to the benefit of rising rates

U.S. Bancorp Second Quarter 2017 Business Line Results

July 19, 2017

Page 4

on deposits and growth in average loan and deposit balances, partially offset by lower spread on loans, reflecting a competitive marketplace. Noninterest income decreased year-over-year primarily due to lower capital markets volume compared to a year ago and higher loan related charges, partially offset by higher commercial leasing revenue. Total noninterest expense was $36 million (9.9 percent) higher compared with a year ago primarily due to an increase in variable costs allocated to manage the business, including the impact of the FDIC surcharge on deposit balances, and higher compensation expense, reflecting the impact of increased staffing and merit increases. The provision for credit losses decreased $86 million primarily due to a favorable change in the credit quality within the energy sector compared with the prior year, along with lower net charge-offs.

U.S. Bancorp Second Quarter 2017 Business Line Results

July 19, 2017

Page 5

CONSUMER AND SMALL BUSINESS BANKING (a)
($ in millions)
							Percent Change
	2Q 2017		1Q 2017		2Q 2016		2Q17 vs 1Q17			2Q17 vs 2Q16			YTD 2017		YTD 2016			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,258	$	1,222	$	1,167		2.9			7.8		$	2,480	$	2,324			6.7
Noninterest income		620		585		636		6.0			(2.5	)		1,205		1,187			1.5
Securities gains (losses), net		—		—		—		—			—			—		—			—
Total net revenue		1,878		1,807		1,803		3.9			4.2			3,685		3,511			5.0
Noninterest expense		1,280		1,261		1,231		1.5			4.0			2,541		2,440			4.1
Other intangibles		7		7		8		—			(12.5	)		14		16			(12.5	)
Total noninterest expense		1,287		1,268		1,239		1.5			3.9			2,555		2,456			4.0
Income before provision and taxes		591		539		564		9.6			4.8			1,130		1,055			7.1
Provision for credit losses		90		65		44		38.5			nm			155		(23	)		nm
Income before income taxes		501		474		520		5.7			(3.7	)		975		1,078			(9.6	)
Income taxes and taxable-equivalent adjustment		182		172		189		5.8			(3.7	)		354		392			(9.7	)
Net income		319		302		331		5.6			(3.6	)		621		686			(9.5	)
Net (income) loss attributable to noncontrolling interests		—		—		—		—			—			—		—			—
Net income attributable to U.S. Bancorp	$	319	$	302	$	331		5.6			(3.6	)	$	621	$	686			(9.5	)
Average Balance Sheet Data
Loans	$	140,543	$	139,118	$	135,648		1.0			3.6		$	139,835	$	134,655			3.8
Other earning assets		3,205		4,022		4,347		(20.3	)		(26.3	)		3,611		4,035			(10.5	)
Goodwill		3,681		3,681		3,681		—			—			3,681		3,681			—
Other intangible assets		2,730		2,768		2,399		(1.4	)		13.8			2,749		2,456			11.9
Assets		154,245		153,658		150,588		.4			2.4			153,954		149,299			3.1
Noninterest-bearing deposits		27,304		26,967		26,951		1.2			1.3			27,136		26,457			2.6
Interest-bearing deposits		120,878		119,423		115,036		1.2			5.1			120,155		113,967			5.4
Total deposits		148,182		146,390		141,987		1.2			4.4			147,291		140,424			4.9
Total U.S. Bancorp shareholders’ equity		11,436		11,523		11,082		(.8	)		3.2			11,479		11,051			3.9

(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. It encompasses community banking, metropolitan banking and indirect lending, as well as mortgage banking. Consumer and Small Business Banking contributed $319 million of the Company’s net income in the second quarter of 2017, compared with $331 million in the second quarter of 2016. Consumer and Small Business Banking’s net income decreased $12 million (3.6 percent) from the same quarter of 2016. Total net revenue increased $75 million (4.2 percent) due to a $91 million (7.8 percent) increase in net interest income, partially offset by a decrease of $16 million (2.5 percent) in total noninterest income. Net interest income increased year-over-year primarily due to the impact of higher rates on the margin benefit from deposits

U.S. Bancorp Second Quarter 2017 Business Line Results

July 19, 2017

Page 6

along with growth in average loan and deposit balances, partially offset by lower spread on loans. Noninterest income decreased year-over-year principally driven by lower mortgage banking revenue due to lower origination and sales volume related to refinancing activities, partially offset by the value of mortgage servicing rights, net of hedging activities. Partially offsetting the impact of mortgage banking revenue was higher ATM processing services and treasury management fees. Total noninterest expense in the second quarter of 2017 increased $48 million (3.9 percent) over the same quarter of the prior year primarily due to higher compensation and employee benefits expense, reflecting the impact of increased staffing and merit increases, and higher net shared services expense, driven by implementation costs of capital investments to support business growth, and the impact of the FDIC surcharge on deposit balances. The provision for credit losses increased $46 million primarily due to growth in auto loans and the release of reserves in the prior year quarter as a result of improvements in the mortgage portfolio, along with higher net charge-offs.

U.S. Bancorp Second Quarter 2017 Business Line Results

July 19, 2017

Page 7

WEALTH MANAGEMENT AND SECURITIES SERVICES (a)
($ in millions)
								Percent Change
	2Q 2017			1Q 2017		2Q 2016		2Q17 vs 1Q17			2Q17 vs 2Q16			YTD 2017		YTD 2016			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	187		$	179	$	122		4.5			53.3		$	366	$	239			53.1
Noninterest income		413			398		401		3.8			3.0			811		780			4.0
Securities gains (losses), net		—			—		—		—			—			—		—			—
Total net revenue		600			577		523		4.0			14.7			1,177		1,019			15.5
Noninterest expense		401			403		366		(.5	)		9.6			804		740			8.6
Other intangibles		5			5		6		—			(16.7	)		10		12			(16.7	)
Total noninterest expense		406			408		372		(.5	)		9.1			814		752			8.2
Income before provision and taxes		194			169		151		14.8			28.5			363		267			36.0
Provision for credit losses		(1	)		1		1		nm			nm			—		(1	)		nm
Income before income taxes		195			168		150		16.1			30.0			363		268			35.4
Income taxes and taxable-equivalent adjustment		71			61		55		16.4			29.1			132		98			34.7
Net income		124			107		95		15.9			30.5			231		170			35.9
Net (income) loss attributable to noncontrolling interests		—			—		—		—			—			—		—			—
Net income attributable to U.S. Bancorp	$	124		$	107	$	95		15.9			30.5		$	231	$	170			35.9
Average Balance Sheet Data
Loans	$	8,308		$	7,963	$	7,056		4.3			17.7		$	8,136	$	7,054			15.3
Other earning assets		147			153		138		(3.9	)		6.5			150		138			8.7
Goodwill		1,567			1,566		1,568		.1			(.1	)		1,567		1,568			(.1	)
Other intangible assets		83			87		104		(4.6	)		(20.2	)		85		107			(20.6	)
Assets		11,427			11,443		10,081		(.1	)		13.4			11,435		10,188			12.2
Noninterest-bearing deposits		15,971			13,867		13,096		15.2			22.0			14,925		12,995			14.9
Interest-bearing deposits		57,907			56,948		48,449		1.7			19.5			57,430		47,024			22.1
Total deposits		73,878			70,815		61,545		4.3			20.0			72,355		60,019			20.6
Total U.S. Bancorp shareholders’ equity		2,365			2,402		2,385		(1.5	)		(.8	)		2,383		2,380			.1

(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 $124 million of the Company’s net income in the second quarter of 2017, compared with $95 million in the second quarter of 2016. Total net revenue increased $77 million (14.7 percent) year-over-year driven by an increase in net interest income of $65 million (53.3 percent) principally due to the impact of higher rates on the margin benefit from deposits along with higher average loan and deposit balances. Noninterest income increased $12 million (3.0 percent) principally due to favorable market conditions and account growth. Total noninterest

U.S. Bancorp Second Quarter 2017 Business Line Results

July 19, 2017

Page 8

expense increased $34 million (9.1 percent) primarily as a result of higher compensation and employee benefits expense, reflecting the impact of higher staffing and merit increases, higher net shared services expense, and the impact of the FDIC surcharge. The provision for credit losses was relatively flat compared with the prior year quarter.

U.S. Bancorp Second Quarter 2017 Business Line Results

July 19, 2017

Page 9

PAYMENT SERVICES (a)

($ in millions)

										Percent Change
	2Q 2017			1Q 2017			2Q 2016			2Q17 vs 1Q17			2Q17 vs 2Q16			YTD 2017			YTD 2016			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	540		$	549		$	513			(1.6	)		5.3		$	1,089		$	1,041			4.6
Noninterest income		909			857			923			6.1			(1.5	)		1,766			1,739			1.6
Securities gains (losses), net		—			—			—			—			—			—			—			—
Total net revenue		1,449			1,406			1,436			3.1			.9			2,855			2,780			2.7
Noninterest expense		722			701			678			3.0			6.5			1,423			1,337			6.4
Other intangibles		30			31			29			(3.2	)		3.4			61			59			3.4
Total noninterest expense		752			732			707			2.7			6.4			1,484			1,396			6.3
Income before provision and taxes		697			674			729			3.4			(4.4	)		1,371			1,384			(.9	)
Provision for credit losses		283			241			215			17.4			31.6			524			407			28.7
Income before income taxes		414			433			514			(4.4	)		(19.5	)		847			977			(13.3	)
Income taxes and taxable-equivalent adjustment		151			158			187			(4.4	)		(19.3	)		309			355			(13.0	)
Net income		263			275			327			(4.4	)		(19.6	)		538			622			(13.5	)
Net (income) loss attributable to noncontrolling interests		(6	)		(7	)		(8	)		14.3			25.0			(13	)		(17	)		23.5
Net income attributable to U.S. Bancorp	$	257		$	268		$	319			(4.1	)		(19.4	)	$	525		$	605			(13.2	)
Average Balance Sheet Data
Loans	$	29,070		$	28,936		$	28,193			.5			3.1		$	29,003		$	28,005			3.6
Other earning assets		241			257			275			(6.2	)		(12.4	)		249			438			(43.2	)
Goodwill		2,458			2,453			2,472			.2			(.6	)		2,455			2,467			(.5	)
Other intangible assets		408			437			506			(6.6	)		(19.4	)		422			506			(16.6	)
Assets		34,805			34,588			33,997			.6			2.4			34,696			33,998			2.1
Noninterest-bearing deposits		1,015			1,024			925			(.9	)		9.7			1,019			943			8.1
Interest-bearing deposits		102			99			97			3.0			5.2			101			96			5.2
Total deposits		1,117			1,123			1,022			(.5	)		9.3			1,120			1,039			7.8
Total U.S. Bancorp shareholders’ equity		6,230			6,407			6,376			(2.8	)		(2.3	)		6,318			6,351			(.5	)

(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 $257 million of the Company’s net income in the second quarter of 2017, compared with $319 million in the second quarter of 2016. Total net revenue increased $13 million (0.9 percent) due to a $27 million (5.3 percent) increase in net interest income, partially offset by a decrease of $14 million (1.5 percent) in total noninterest income. Net interest income increased year-over-year primarily due to higher average loan balances and rising interest rates in addition to higher loan fees. Total noninterest income decreased year-over-year primarily due to a gain on the sale of an equity investment in the prior year, partially offset by growth in credit and debit card revenue, corporate payment products revenue and

U.S. Bancorp Second Quarter 2017 Business Line Results

July 19, 2017

Page 10

merchant processing services revenue driven by higher volumes. Excluding the impact of equity investment activity, total noninterest income increased 3.1 percent. Total noninterest expense increased $45 million (6.4 percent) over the second quarter of 2016 principally due to higher compensation and employee benefits expense, reflecting higher staffing to support business investment and compliance programs and merit increases, and higher net shared services expense. The provision for credit losses increased $68 million (31.6 percent) due to an unfavorable change in the reserve allocation and higher net charge-offs.

U.S. Bancorp Second Quarter 2017 Business Line Results

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TREASURY AND CORPORATE SUPPORT (a)

($ in millions)

										Percent Change
	2Q 2017			1Q 2017			2Q 2016			2Q17 vs 1Q17			2Q17 vs 2Q16			YTD 2017			YTD 2016			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	481		$	457		$	548			5.3			(12.2	)	$	938		$	1,105			(15.1	)
Noninterest income		230			216			339			6.5			(32.2	)		446			533			(16.3	)
Securities gains (losses), net		9			32			3			(71.9	)		nm			41			6			nm
Total net revenue		720			705			890			2.1			(19.1	)		1,425			1,644			(13.3	)
Noninterest expense		178			144			310			23.6			(42.6	)		322			421			(23.5	)
Other intangibles		—			—			—			—			—			—			—			—
Total noninterest expense		178			144			310			23.6			(42.6	)		322			421			(23.5	)
Income before provision and taxes		542			561			580			(3.4	)		(6.6	)		1,103			1,223			(9.8	)
Provision for credit losses		(4	)		2			(1	)		nm			nm			(2	)		5			nm
Income before income taxes		546			559			581			(2.3	)		(6.0	)		1,105			1,218			(9.3	)
Income taxes and taxable-equivalent adjustment		31			12			30			nm			3.3			43			107			(59.8	)
Net income		515			547			551			(5.9	)		(6.5	)		1,062			1,111			(4.4	)
Net (income) loss attributable to noncontrolling interests		(6	)		(6	)		(6	)		—			—			(12	)		(12	)		—
Net income attributable to U.S. Bancorp	$	509		$	541		$	545			(5.9	)		(6.6	)	$	1,050		$	1,099			(4.5	)
Average Balance Sheet Data
Loans	$	3,386		$	3,414		$	3,594			(.8	)		(5.8	)	$	3,400		$	3,600			(5.6	)
Other earning assets		121,655			118,809			111,794			2.4			8.8			120,240			110,510			8.8
Goodwill		—			—			—			—			—			—			—			—
Other intangible assets		—			—			—			—			—			—			—			—
Assets		142,529			139,314			133,609			2.3			6.7			140,930			132,209			6.6
Noninterest-bearing deposits		2,058			1,996			2,016			3.1			2.1			2,027			2,034			(.3	)
Interest-bearing deposits		716			692			3,215			3.5			(77.7	)		704			3,563			(80.2	)
Total deposits		2,774			2,688			5,231			3.2			(47.0	)		2,731			5,597			(51.2	)
Total U.S. Bancorp shareholders’ equity		18,321			17,911			18,375			2.3			(.3	)		18,118			18,287			(.9	)

(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 $509 million in the second quarter of 2017, compared with $545 million in the second quarter of 2016. The decrease in net income of $36 million (6.6 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 $67 million (12.2 percent) from the second quarter of 2016 principally due to the impact of higher rates credited to the business lines on deposits, partially offset by growth in the investment

U.S. Bancorp Second Quarter 2017 Business Line Results

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portfolio. Total noninterest income decreased $103 million (30.1 percent) from the second quarter of 2016 principally due to the impact of the Visa Europe sale in the prior year, partially offset by higher income from equity investments in the current quarter. Total noninterest expense decreased $132 million (42.6 percent) principally due to the notable items in the prior year and lower net shared services expenses, partially offset by higher compensation expense, reflecting the impact of increased staffing and merit increases including variable compensation. The provision for credit losses was $3 million lower year-over-year primarily due to lower net charge-offs.

EX-99.2

U.S. Bancorp 2Q17 Earnings Conference Call July 19, 2017 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, changes to statutes, regulations, or regulatory policies or practices could affect U.S. Bancorp in substantial and unpredictable ways. U.S. Bancorp’s results could also be adversely affected by deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in its investment securities portfolio; legal and regulatory developments; 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, 2016, 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.

2Q17 Highlights * Taxable-equivalent basis; see slide 26 for calculation ** Estimated for the Basel III fully implemented standardized approach; RWA = risk-weighted assets, see slide 25 for calculation

Performance Ratios Return on Average Common Equity Efficiency Ratio* & Net Interest Margin** * Non-GAAP; see slide 26 for calculation ** Taxable-equivalent basis Return on Average Assets

Average Loans +0.9% linked quarter +3.4% year-over-year Linked quarter growth in total loans driven by commercial, real estate construction, residential mortgage and retail leasing Year-over-year and linked quarter declines in commercial real estate loans reflected a cautious approach in certain commercial mortgage markets and an increase in payoffs as customers accessed capital markets $ in billions

Credit Quality – Retail Leasing Average Loans and Net Charge-offs Delinquencies 2Q161Q172Q17 Average Loans$5,326$6,469$7,181 30-89 Delinquencies0.18%0.24%0.22% 90+ Delinquencies0.00%0.01%0.01% Nonperforming Loans0.04%0.04%0.07% $ in millions * Manheim Used Vehicle Value Index source: www.manheimconsulting.com January 1995 = 100, quarter value = average monthly ending values Continued high-quality originations (weighted average FICO of 782) support the portfolio’s stable credit profile Delinquencies, nonperforming leases and net charge-offs remained at very low levels

Average Deposits +0.8% linked quarter +7.7% year-over-year $ in billions Rates are presented on a fully taxable-equivalent basis utilizing a tax rate of 35 percent Interest-bearing Deposits Noninterest-bearing deposits grew 2.4% on a linked quarter basis and 4.5% vs. 2Q16 Growth in total deposits vs. 2Q16 reflected growth across all business lines

Credit Quality NCO Ratio -1bp QoQ +1bp YoY NPAs -9.8% QoQ -19.3% YoY $ in millions

Earnings Summary

Revenue $5,487 $5,324 $5,448 Linked Quarter Growth reflected higher net interest income as well as seasonally higher fee-based revenue Year-over-Year Revenue increased 4.2% excluding a $180 million Visa Europe sale gain in 2Q16 $ in millions * Taxable-equivalent basis +3.1% linked quarter +0.7% year-over-year 2Q17 Revenue

Net Interest Income Linked Quarter Net interest income growth driven by loan growth, the impact of higher interest rates and an additional day in the quarter Net interest margin increased 1bp due to rising interest rates, partially offset by the impact of a flatter yield curve and higher cash balances Year-over-Year Growth driven primarily by loan growth and the impact of higher interest rates $ in millions Taxable-equivalent basis +2.4% linked quarter +5.9% year-over-year

Noninterest Income $ in millions Payments = credit and debit card, corporate payment products and merchant processing Service charges = deposit service charges, treasury management and ATM processing $2,552 $2,329 $2,419 Linked Quarter Solid growth in payment services revenue reflected typical seasonal patterns Growth in trust and investment management fees driven primarily by new account growth Year-over-Year Excluding the impact of the 2Q16 Visa Europe sale gain of $180 million, noninterest income increased 2.0% Anticipated declines in commercial products and mortgage banking revenue mainly reflected lower market activity and refinancing activity +3.9% linked quarter -5.2% year-over-year

Noninterest Expense $2,992 $2,944 $3,023 Linked Quarter Increase driven by higher compensation and marketing and business development expense, partially offset by lower employee benefits cost Year-over-Year Total noninterest expense increased 6.4% excluding 2Q16 expense of $150 million related to litigation accruals and a charitable contribution Higher compensation expense driven by hiring to support business growth and compliance programs, merit increases and higher variable compensation $ in millions +2.7% linked quarter +1.0% year-over-year

Capital Position RWA = risk-weighted assets * See Non-GAAP Financial Measures reconciliation on slide 25

Appendix

Average Loans vs. 2Q16 Average total loans increased by $8.9 billion, or 3.4% Average commercial loans increased by $3.5 billion, or 3.8% Average retail loans increased by $3.2 billion, or 6.1% Average residential mortgage loans increased by $3.0 billion, or 5.5% vs. 1Q17 Average total loans increased by $2.4 billion, or 0.9% Average commercial loans increased by $1.9 billion, or 2.0% Average retail loans increased by $0.8 billion, or 1.6% Average residential mortgage loans increased by $0.6 billion, or 1.1% * Excluding the credit card portfolio acquisition ** Excluding student loans that were transferred to held for sale at the end of 1Q15 and returned to held for investment during 3Q15 Key Points Year-over-Year Growth 8.1% 7.6% 6.2% 4.1% 3.4% Covered Commercial CRE Res Mtg Retail Credit Card $272.7 $266.6 $269.6 4.1%** $275.5 Average Loans ($bn)

Average Deposits Key Points vs. 2Q16 Average total deposits increased by $23.8 billion, or 7.7% Average low-cost deposits (NIB, interest checking, money market and savings) increased by $27.1 billion, or 9.9% vs. 1Q17 Average total deposits increased by $2.7 billion, or 0.8% Average low-cost deposits increased by $2.5 billion, or 0.8% Average Deposits ($bn) Year-over-Year Growth 7.6% 10.0% 11.8% 11.0% 7.7% Time Money Market Checking and Savings Noninterest-bearing $329.2 $307.4 $318.5 $328.4 $331.2

Credit Quality – Commercial Loans Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm2Q161Q172Q17 Average Loans$92,154$93,739$95,638 30-89 Delinquencies0.22%0.23%0.27% 90+ Delinquencies0.05%0.06%0.05% Nonperforming Loans0.53%0.46%0.33% Improved growth in 2Q17 due to seasonal increases in utilization and originations; strengths noted in Commercial Banking and Equipment Finance Lower nonperforming loans driven by credit quality improvement across a number of sectors, including energy Net charge-offs remained flat linked quarter and year-over-year

A&D Construction $620 Credit Quality – Commercial Real Estate Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm2Q161Q172Q17 Average Loans$42,988$43,158$42,549 30-89 Delinquencies0.11%0.15%0.08% 90+ Delinquencies0.03%0.01%0.00% Nonperforming Loans0.24%0.26%0.28% Performing TDRs*$185$153$162 Investor $19,945 Owner Occupied $10,682 Multi-family $4,422 Retail $921 Residential Construction $2,454 Office $882 Other $2,623 * TDR = troubled debt restructuring Average loans decreased for the second consecutive quarter, resulting in a 1.0% decline vs. 2Q16 as construction loans paid off due to strong permanent loan market liquidity, and growth opportunities waned due to labor cost increases, lowering development yields and increasing supply risk in sectors such as multi-family and lodging Nonperforming loans remained at historically low levels and recoveries continued to exceed charge-offs

Credit Quality – Residential Mortgage Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm2Q161Q172Q17 Average Loans$55,501$57,900$58,544 30-89 Delinquencies0.28%0.21%0.22% 90+ Delinquencies0.27%0.24%0.20% Nonperforming Loans1.12%0.99%0.90% *Excludes GNMA loans, whose repayments are insured by the FHA or guaranteed by the Department of VA ($1,774 million in 2Q17) Originations continued to be high credit quality (weighted average FICO of 758, weighted average LTV of 71%) More than 90% of 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

Credit Quality – Credit Card Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points Year-over-year average loan growth of 2.4% was driven by high credit quality originations Commitment weighted average FICO on new originations remained strong at 758 Year-over-year increases in delinquency and loss rates primarily reflect vintage maturation $mm2Q161Q172Q17 Average Loans$20,140$20,845$20,631 30-89 Delinquencies1.15%1.24%1.22% 90+ Delinquencies0.98%1.23%1.10% Nonperforming Loans0.02%0.01%0.00%

Credit Quality – Home Equity Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm2Q161Q172Q17 Average Loans$16,394$16,259$16,252 30-89 Delinquencies0.36%0.33%0.33% 90+ Delinquencies0.24%0.24%0.25% Nonperforming Loans0.78%0.79%0.74% Subprime: 1% Wtd Avg LTV*: 88% NCO: 2.89% Prime: 97% Wtd Avg LTV*: 72% NCO: -0.05% Other: 2% Wtd Avg LTV*: 70% NCO: 0.00% *LTV at origination High-quality originations (weighted average FICO on commitments of 768, weighted average CLTV of 70%) originated primarily through the retail branch network to existing bank customers on their primary residences Net charge-offs were stable year-over-year

Credit Quality – Other Retail Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm2Q161Q172Q17 Average Loans$29,748$31,056$31,194 30-89 Delinquencies0.47%0.56%0.65% 90+ Delinquencies0.10%0.12%0.11% Nonperforming Loans0.09%0.09%0.10% Overall growth continued to be driven by the auto loans and installment categories, which were up 5.1% and 13.6% year-over-year, respectively Net charge-offs remained stable; 30-89 delinquencies up seasonally linked quarter

Credit Quality – Auto Loans Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm2Q161Q172Q17 Average Loans$16,690$17,538$17,533 30-89 Delinquencies0.48%0.64%0.73% 90+ Delinquencies0.03%0.05%0.06% Nonperforming Loans0.08%0.09%0.12% Direct: 6% Wtd Avg FICO: 748 NCO: 0.20% Indirect: 94% Wtd Avg FICO: 770 NCO: 0.38% Auto loans are included in Other Retail category Growth driven by high-quality originations in the indirect channel (weighted average FICO 774) Net charge-offs declined seasonally on a linked quarter basis

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 2Q17 Earnings Conference Call July 19, 2017