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): October 18, 2017

U.S. BANCORP

(Exact name of registrant as specified in its charter)

1-6880

(Commission File Number)

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

800 Nicollet Mall

Minneapolis, Minnesota 55402

(Address of principal executive offices and zip code)

(651) 466-3000

(Registrant’s telephone number, including area code)

(not applicable)

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

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

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

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

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

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

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 October 18, 2017, U.S. Bancorp (the “Company”) issued a press release reporting quarter ended September 30, 2017 results, and posted on its website its 3Q17 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 3Q17 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated herein by reference. The information included in the 3Q17 Earnings Conference Call Presentation is considered to be “furnished” under the Securities Exchange Act of 1934. The press release and 3Q17 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 October 18, 2017, deemed “filed” under the Securities Exchange Act of 1934.

99.2 3Q17 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: October 18, 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 RECORD REVENUE AND NET INCOME

FOR THE THIRD QUARTER OF 2017

Record Earnings Per Diluted Common Share of $0.88

Return on average assets of 1.38 percent and average common equity of 13.6 percent

Returned 79 percent of earnings to shareholders

MINNEAPOLIS, October 18, 2017 — U.S. Bancorp (NYSE: USB) today reported net income of $1,563 million for the third quarter of 2017, or $0.88 per diluted common share, compared with $1,502 million, or $0.84 per diluted common share, in the third quarter of 2016.

Highlights for the third quarter of 2017 included:

• Record diluted earnings per share of $0.88, record net revenue of $5,608 million, record net income of $1,563 million and positive operating leverage

• Industry-leading return on average assets of 1.38 percent and return on average common equity of 13.6 percent and efficiency ratio of 54.3 percent

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

• Net interest income (taxable-equivalent basis) grew 8.3 percent year-over-year and 3.8 percent on a linked quarter basis

• Net interest margin of 3.10 percent for the third quarter of 2017 was 12 basis points higher than the third quarter of 2016 and 6 basis points higher than the second quarter of 2017

• Nonperforming assets decreased 24.8 percent on a year-over-year basis and 7.3 percent on a linked quarter basis

• Average total loans grew 3.0 percent over the third quarter of 2016 and 0.8 percent on a linked quarter basis

• Average total commercial loans grew 4.6 percent over the third quarter of 2016 and 1.0 percent on a linked quarter basis

• Average total other retail loans grew 6.1 percent over the third quarter of 2016 and 2.6 percent on a linked quarter basis

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U.S. Bancorp Reports Third Quarter 2017 Results

October 18, 2017

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• Strong capital position. At September 30, 2017, the estimated common equity tier 1 capital to risk-weighted assets ratio was 9.4 percent using the Basel III fully implemented standardized approach and was 11.8 percent using the Basel III fully implemented advanced approaches method.

EARNINGS SUMMARY																Table 1
($ in millions, except per-share data)							Percent		Percent
							Change		Change
	3Q		2Q		3Q		3Q17 vs		3Q17 vs		YTD		YTD		Percent
	2017		2017		2016		2Q17		3Q16		2017		2016		Change
Net income attributable to U.S. Bancorp	$	1,563	$	1,500	$	1,502		4.2		4.1	$	4,536	$	4,410		2.9
Diluted earnings per common share	$	.88	$	.85	$	.84		3.5		4.8	$	2.55	$	2.43		4.9
Return on average assets (%)		1.38		1.35		1.36						1.36		1.37
Return on average common equity (%)		13.6		13.4		13.5						13.4		13.4
Net interest margin (%)		3.10		3.04		2.98						3.06		3.02
Efficiency ratio (%) (a)		54.3		55.2		54.5						55.0		54.7
Tangible efficiency ratio (%) (a)		53.5		54.4		53.7						54.2		53.8
Dividends declared per common share	$	.30	$	.28	$	.28		7.1		7.1	$	.86	$	.79		8.9
Book value per common share (period end)	$	25.98	$	25.55	$	24.78		1.7		4.8

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

Net income attributable to U.S. Bancorp was $1,563 million for the third quarter of 2017, 4.1 percent higher than the $1,502 million for the third quarter of 2016, and 4.2 percent higher than the $1,500 million for the second quarter of 2017. Diluted earnings per common share of $0.88 in the third quarter of 2017 were $0.04 higher than the third quarter of 2016 and $0.03 higher than the second quarter of 2017. The increase in net income year-over-year was principally due to a 4.1 percent increase in total net revenue driven by higher net interest income, partially offset by a 3.7 percent increase in noninterest expense. Net interest income increased 8.3 percent on a taxable-equivalent basis (8.4 percent as reported on a GAAP basis), mainly as a result of loan growth and the impact of rising interest rates. Noninterest income decreased 0.9 percent principally due to lower mortgage banking revenue, primarily the result of strong refinancing activities in the third quarter of 2016, partially offset by increases in trust and investment management fees, payment services revenue, and treasury management fees as well as higher equity investment income. The increase in total net revenue was partially offset by higher noninterest expense, primarily due to increased compensation expense related to hiring to support business growth and compliance programs, merit increases, and higher

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variable compensation. The increase in net income on a linked quarter basis was principally due to an increase in total net revenue of 2.2 percent, reflecting higher net interest income driven by loan growth, the impact of rising interest rates, higher interest recoveries and an additional day in the current quarter. These increases were partially offset by a slight increase in noninterest expense of 0.5 percent.

U.S. Bancorp President and Chief Executive Officer Andy Cecere said, “In the third quarter, U.S. Bancorp delivered industry leading results, supported by record revenue, net income and earnings per diluted share. We produced best-in-class performance metrics, including return on average assets of 1.38 percent, return on average common equity of 13.6 percent and an improving efficiency ratio of 54.3 percent.

“We remain deeply committed to value creation for our shareholders, and in the third quarter, our dividend increased by 7.1 percent. Overall, we returned 79 percent of our earnings to shareholders through dividends and share buybacks. As we move into the fourth quarter, we plan to build on the momentum we have established.

“Our Company is strong and we are well positioned for growth. We continue to be focused on delivering a great customer experience through our One Bank initiatives, optimization of our businesses, data analytics, process improvements and product delivery. We are investing in innovation and technology to drive growth and improve efficiencies in the future. Our strong revenue base and financial discipline positions us for growth heading into the next year. I’m proud of our employees and the effort they make every day to help us deliver consistently strong financial returns and to become our stakeholders’ most trusted choice.”

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U.S. Bancorp Reports Third Quarter 2017 Results

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INCOME STATEMENT HIGHLIGHTS																						Table 2
($ in millions, except per-share data)										Percent		Percent
										Change		Change
	3Q			2Q			3Q			3Q17 vs		3Q17 vs			YTD			YTD			Percent
	2017			2017			2016			2Q17		3Q16			2017			2016			Change
Net interest income	$	3,135		$	3,017		$	2,893			3.9		8.4		$	9,097		$	8,573			6.1
Taxable-equivalent adjustment		51			51			50			—		2.0			152			154			(1.3	)
Net interest income (taxable-equivalent basis)		3,186			3,068			2,943			3.8		8.3			9,249			8,727			6.0
Noninterest income		2,422			2,419			2,445			.1		(.9	)		7,170			7,146			.3
Total net revenue		5,608			5,487			5,388			2.2		4.1			16,419			15,873			3.4
Noninterest expense		3,039			3,023			2,931			.5		3.7			9,006			8,672			3.9
Income before provision and income taxes		2,569			2,464			2,457			4.3		4.6			7,413			7,201			2.9
Provision for credit losses		360			350			325			2.9		10.8			1,055			982			7.4
Income before taxes		2,209			2,114			2,132			4.5		3.6			6,358			6,219			2.2
Income taxes and taxable-equivalent adjustment		640			602			616			6.3		3.9			1,791			1,766			1.4
Net income		1,569			1,512			1,516			3.8		3.5			4,567			4,453			2.6
Net (income) loss attributable to noncontrolling interests		(6	)		(12	)		(14	)		50.0		57.1			(31	)		(43	)		27.9
Net income attributable to U.S. Bancorp	$	1,563		$	1,500		$	1,502			4.2		4.1		$	4,536		$	4,410			2.9
Net income applicable to U.S. Bancorp common shareholders	$	1,485		$	1,430		$	1,434			3.8		3.6		$	4,302		$	4,198			2.5
Diluted earnings per common share	$	.88		$	.85		$	.84			3.5		4.8		$	2.55		$	2.43			4.9

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NET INTEREST INCOME																							Table 3
(Taxable-equivalent basis; $ in millions)
										Change			Change
	3Q			2Q			3Q			3Q17 vs			3Q17 vs			YTD			YTD
	2017			2017			2016			2Q17			3Q16			2017			2016			Change
Components of net interest income
Income on earning assets	$	3,768		$	3,584		$	3,371		$	184		$	397		$	10,803		$	9,951		$	852
Expense on interest-bearing liabilities		582			516			428			66			154			1,554			1,224			330
Net interest income	$	3,186		$	3,068		$	2,943		$	118		$	243		$	9,249		$	8,727		$	522
Average yields and rates paid
Earning assets yield		3.67	%		3.56	%		3.41	%		.11	%		.26	%		3.57	%		3.44	%		.13	%
Rate paid on interest-bearing liabilities		.76			.69			.59			.07			.17			.69			.57			.12
Gross interest margin		2.91	%		2.87	%		2.82	%		.04	%		.09	%		2.88	%		2.87	%		.01	%
Net interest margin		3.10	%		3.04	%		2.98	%		.06	%		.12	%		3.06	%		3.02	%		.04	%
Average balances
Investment securities (a)	$	111,832		$	111,368		$	108,109		$	464		$	3,723		$	111,325		$	107,095		$	4,230
Loans		277,626			275,528			269,637			2,098			7,989			275,454			266,179			9,275
Earning assets		408,825			403,883			393,783			4,942			15,042			404,031			385,816			18,215
Interest-bearing liabilities		304,236			299,271			290,331			4,965			13,905			299,922			285,233			14,689

(a) Excludes unrealized gain (loss)

Net Interest Income

Net interest income on a taxable-equivalent basis in the third quarter of 2017 was $3,186 million, an increase of $243 million (8.3 percent) over the third quarter of 2016. The increase was principally driven by loan growth and the impact of rising interest rates. Average earning assets were $15.0 billion (3.8 percent) higher than the third quarter of 2016, reflecting increases of $8.0 billion (3.0 percent) in average total loans, $4.1 billion (36.0 percent) in average other earning assets and $3.7 billion (3.4 percent) in average investment securities. Net interest income on a taxable-equivalent basis increased $118 million (3.8 percent) on a linked quarter basis driven by loan growth, the impact of rising interest rates, higher interest recoveries and an additional day in the third quarter. In addition, average earning assets were $4.9 billion (1.2 percent) higher on a linked quarter basis, mainly from higher average loans, investment securities and other earning assets.

The net interest margin in the third quarter of 2017 was 3.10 percent, compared with 2.98 percent in the third quarter of 2016, and 3.04 percent in the second quarter of 2017. The increase in the net interest margin

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year-over-year was due to higher interest rates and loan portfolio mix, partially offset by higher funding costs and higher cash balances. The increase in net interest margin on a linked quarter basis was driven by higher interest rates and a change in loan portfolio mix, partially offset by higher funding costs.

Investment Securities

Average investment securities in the third quarter of 2017 were $3.7 billion (3.4 percent) higher year-over-year and $464 million (0.4 percent) higher than the prior quarter. These increases were primarily due to purchases of U.S. Treasury and U.S. government mortgage-backed securities, net of prepayments and maturities, in support of liquidity management.

AVERAGE LOANS																		Table 4
($ in millions)							Percent			Percent
							Change			Change
	3Q		2Q		3Q		3Q17 vs			3Q17 vs			YTD		YTD		Percent
	2017		2017		2016		2Q17			3Q16			2017		2016		Change
Commercial	$	91,077	$	90,061	$	87,067		1.1			4.6		$	89,817	$	86,186		4.2
Lease financing		5,556		5,577		5,302		(.4	)		4.8			5,530		5,265		5.0
Total commercial		96,633		95,638		92,369		1.0			4.6			95,347		91,451		4.3
Commercial mortgages		30,114		30,627		31,888		(1.7	)		(5.6	)		30,729		31,891		(3.6	)
Construction and development		11,507		11,922		11,486		(3.5	)		.2			11,708		11,031		6.1
Total commercial real estate		41,621		42,549		43,374		(2.2	)		(4.0	)		42,437		42,922		(1.1	)
Residential mortgages		59,030		58,544		56,284		.8			4.9			58,496		55,334		5.7
Credit card		20,926		20,631		20,628		1.4			1.4			20,801		20,339		2.3
Retail leasing		7,762		7,181		5,773		8.1			34.5			7,142		5,427		31.6
Home equity and second mortgages		16,299		16,252		16,470		.3			(1.0	)		16,270		16,411		(.9	)
Other		32,008		31,194		30,608		2.6			4.6			31,423		29,971		4.8
Total other retail		56,069		54,627		52,851		2.6			6.1			54,835		51,809		5.8
Total loans, excluding covered loans		274,279		271,989		265,506		.8			3.3			271,916		261,855		3.8
Covered loans		3,347		3,539		4,131		(5.4	)		(19.0	)		3,538		4,324		(18.2	)
Total loans	$	277,626	$	275,528	$	269,637		.8			3.0		$	275,454	$	266,179		3.5

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Loans

Average total loans were $8.0 billion (3.0 percent) higher than the third quarter of 2016. The increase was due to growth in total commercial loans (4.6 percent), residential mortgages (4.9 percent), retail leasing (34.5 percent), and other retail loans (4.6 percent). These increases were partially offset by a decrease in total commercial real estate loans (4.0 percent) due to disciplined underwriting of construction and development loans and payoffs of commercial mortgages given recent capital market financing by customers. Loan growth was also muted by run-off in the covered loans portfolio (19.0 percent). Average total loans were $2.1 billion (0.8 percent) higher than the second quarter of 2017. This increase was primarily driven by linked quarter growth in total commercial loans (1.0 percent), other retail loans (2.6 percent), and retail leasing (8.1 percent), partially offset by decreases in total commercial real estate loans (2.2 percent) and covered loans (5.4 percent).

AVERAGE DEPOSITS																		Table 5
($ in millions)							Percent			Percent
							Change			Change
	3Q		2Q		3Q		3Q17 vs			3Q17 vs			YTD		YTD		Percent
	2017		2017		2016		2Q17			3Q16			2017		2016		Change
Noninterest-bearing deposits	$	81,964	$	82,710	$	82,021		(.9	)		(.1	)	$	81,808	$	79,928		2.4
Interest-bearing savings deposits
Interest checking		68,066		67,290		63,456		1.2			7.3			67,021		60,746		10.3
Money market savings		105,072		106,777		99,921		(1.6	)		5.2			106,856		93,121		14.7
Savings accounts		43,649		43,524		40,695		.3			7.3			43,265		40,070		8.0
Total savings deposits		216,787		217,591		204,072		(.4	)		6.2			217,142		193,937		12.0
Time deposits		36,400		30,871		32,455		17.9			12.2			32,660		33,447		(2.4	)
Total interest-bearing deposits		253,187		248,462		236,527		1.9			7.0			249,802		227,384		9.9
Total deposits	$	335,151	$	331,172	$	318,548		1.2			5.2		$	331,610	$	307,312		7.9

Deposits

Average total deposits for the third quarter of 2017 were $16.6 billion (5.2 percent) higher than the third quarter of 2016. Average noninterest-bearing deposits were essentially flat year-over-year reflecting a decrease in Wholesale Banking and Commercial Real Estate offset by increases in Wealth Management and Securities Services and Consumer and Small Business Banking. Average total savings deposits were $12.7

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billion (6.2 percent) higher year-over-year, a result of growth across all business lines. Average time deposits were $3.9 billion (12.2 percent) higher than the prior year quarter. Changes in time deposits are largely related to 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 $4.0 billion (1.2 percent) over the second quarter of 2017. On a linked quarter basis, average noninterest-bearing deposits and average total savings deposits decreased slightly. Average time deposits, which are managed based on funding needs, relative pricing, and liquidity characteristics, increased $5.5 billion (17.9 percent) on a linked quarter basis, primarily driven by Wholesale Banking and Commercial Real Estate.

NONINTEREST INCOME																		Table 6
($ in millions)							Percent			Percent
							Change			Change
	3Q		2Q		3Q		3Q17 vs			3Q17 vs			YTD		YTD		Percent
	2017		2017		2016		2Q17			3Q16			2017		2016		Change
Credit and debit card revenue	$	308	$	319	$	299		(3.4	)		3.0		$	919	$	861		6.7
Corporate payment products revenue		201		184		190		9.2			5.8			564		541		4.3
Merchant processing services		405		407		412		(.5	)		(1.7	)		1,190		1,188		.2
ATM processing services		92		90		87		2.2			5.7			267		251		6.4
Trust and investment management fees		380		380		362		—			5.0			1,128		1,059		6.5
Deposit service charges		192		184		192		4.3			—			553		539		2.6
Treasury management fees		153		160		147		(4.4	)		4.1			466		436		6.9
Commercial products revenue		221		210		219		5.2			.9			638		654		(2.4	)
Mortgage banking revenue		213		212		314		.5			(32.2	)		632		739		(14.5	)
Investment products fees		39		41		41		(4.9	)		(4.9	)		120		120		—
Securities gains (losses), net		9		9		10		—			(10.0	)		47		16		nm
Other		209		223		172		(6.3	)		21.5			646		742		(12.9	)
Total noninterest income	$	2,422	$	2,419	$	2,445		.1			(.9	)	$	7,170	$	7,146		.3

Noninterest Income

Third quarter noninterest income of $2,422 million was $23 million (0.9 percent) lower than the third quarter of 2016 principally due to lower mortgage banking revenue, partially offset by increases in trust and investment management fees, payment services revenue and other noninterest income. Mortgage banking revenue decreased $101 million (32.2 percent) due to lower origination and sales volumes from home refinancing, as refinancing activities were significantly higher in the third quarter of 2016 due to a decline in

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U.S. Bancorp Reports Third Quarter 2017 Results

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longer term interest rates during that period. Trust and investment management fees increased $18 million (5.0 percent) due to favorable market conditions, and net asset and account growth. Payment services revenue was higher due to an increase in corporate payment products revenue of $11 million (5.8 percent) and an increase in credit and debit card revenue of $9 million (3.0 percent), both driven by higher sales volumes. These increases were partially offset by a decrease in merchant processing services revenue of $7 million (1.7 percent) due to exiting certain joint ventures in the second quarter of 2017 and the impacts of recent weather events. Other income increased $37 million (21.5 percent) primarily due to equity investment income in the current quarter.

Noninterest income was $3 million (0.1 percent) higher in the third quarter of 2017 than the second quarter of 2017 reflecting growth in fee-based revenue driven by corporate payment products revenue, commercial products revenue and deposit service charges, partially offset by a decrease in credit and debit card revenue. Corporate payment products revenue increased $17 million (9.2 percent) due to seasonally higher volumes. Commercial products revenue increased $11 million (5.2 percent) primarily driven by higher foreign exchange fees, corporate bond fees and syndication revenue. Deposit service charges increased $8 million (4.3 percent) due to seasonally higher transaction volumes. Credit and debit card revenue decreased $11 million (3.4 percent) primarily due to fewer processing cycles in the third quarter and the impact of previously acquired portfolios.

NONINTEREST EXPENSE																		Table 7
($ in millions)							Percent			Percent
							Change			Change
	3Q		2Q		3Q		3Q17 vs			3Q17 vs			YTD		YTD		Percent
	2017		2017		2016		2Q17			3Q16			2017		2016		Change
Compensation	$	1,440	$	1,416	$	1,329		1.7			8.4		$	4,247	$	3,855		10.2
Employee benefits		281		287		280		(2.1	)		.4			882		858		2.8
Net occupancy and equipment		258		255		250		1.2			3.2			760		741		2.6
Professional services		104		105		127		(1.0	)		(18.1	)		305		346		(11.8	)
Marketing and business development		92		109		102		(15.6	)		(9.8	)		291		328		(11.3	)
Technology and communications		246		242		243		1.7			1.2			723		717		.8
Postage, printing and supplies		82		81		80		1.2			2.5			244		236		3.4
Other intangibles		44		43		45		2.3			(2.2	)		131		134		(2.2	)
Other		492		485		475		1.4			3.6			1,423		1,457		(2.3	)
Total noninterest expense	$	3,039	$	3,023	$	2,931		.5			3.7		$	9,006	$	8,672		3.9

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U.S. Bancorp Reports Third Quarter 2017 Results

October 18, 2017

Page 10

Noninterest Expense

Third quarter noninterest expense of $3,039 million was $108 million (3.7 percent) higher than the third quarter of 2016 primarily due to higher compensation expense, partially offset by lower professional services expense. Compensation expense increased $111 million (8.4 percent) principally due to the impact of hiring to support business growth and compliance programs, merit increases, and higher variable compensation. Professional services expense decreased $23 million (18.1 percent) primarily due to fewer consulting services as compliance programs near maturity.

Noninterest expense increased $16 million (0.5 percent) on a linked quarter basis driven by higher compensation expense, partially offset by lower marketing and business development expense. Compensation expense increased $24 million (1.7 percent) principally due to corporate incentive plans and the impact of hiring to support business growth. Marketing and business development expense decreased $17 million (15.6 percent) due to seasonal timing of certain revenue-related marketing and brand advertising.

Provision for Income Taxes

The provision for income taxes for the third quarter of 2017 resulted in a tax rate on a taxable-equivalent basis of 29.0 percent (effective tax rate of 27.3 percent), compared with 28.9 percent (effective tax rate of 27.2 percent) in the third quarter of 2016, and 28.5 percent (effective tax rate of 26.7 percent) in the second quarter of 2017.

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U.S. Bancorp Reports Third Quarter 2017 Results

October 18, 2017

Page 11

ALLOWANCE FOR CREDIT LOSSES																										Table 8
($ in millions)	3Q 2017			% (b)			2Q 2017			% (b)			1Q 2017			% (b)			4Q 2016			% (b)			3Q 2016			% (b)
Balance, beginning of period	$	4,377					$	4,366					$	4,357					$	4,338					$	4,329
Net charge-offs
Commercial		79			.34			75			.33			71			.33			71			.32			84			.38
Lease financing		4			.29			3			.22			4			.30			5			.37			3			.23
Total commercial		83			.34			78			.33			75			.32			76			.32			87			.37
Commercial mortgages		(2	)		(.03	)		(7	)		(.09	)		(1	)		(.01	)		(3	)		(.04	)		5			.06
Construction and development		(5	)		(.17	)		(2	)		(.07	)		(1	)		(.03	)		(6	)		(.21	)		(4	)		(.14	)
Total commercial real estate		(7	)		(.07	)		(9	)		(.08	)		(2	)		(.02	)		(9	)		(.08	)		1			.01
Residential mortgages		7			.05			8			.05			12			.08			12			.08			12			.08
Credit card		187			3.55			204			3.97			190			3.70			181			3.44			161			3.11
Retail leasing		2			.10			2			.11			3			.19			1			.06			1			.07
Home equity and second mortgages		(1	)		(.02	)		(1	)		(.02	)		(1	)		(.02	)		(1	)		(.02	)		1			.02
Other		59			.73			58			.75			58			.76			62			.79			52			.68
Total other retail		60			.42			59			.43			60			.45			62			.46			54			.41
Total net charge-offs, excluding covered loans		330			.48			340			.50			335			.50			322			.48			315			.47
Covered loans		—			—			—			—			—			—			—			—			—			—
Total net charge-offs		330			.47			340			.49			335			.50			322			.47			315			.46
Provision for credit losses		360						350						345						342						325
Other changes (a)		—						1						(1	)					(1	)					(1	)
Balance, end of period	$	4,407					$	4,377					$	4,366					$	4,357					$	4,338
Components
Allowance for loan losses	$	3,908					$	3,856					$	3,816					$	3,813					$	3,797
Liability for unfunded credit commitments		499						521						550						544						541
Total allowance for credit losses	$	4,407					$	4,377					$	4,366					$	4,357					$	4,338
Gross charge-offs	$	433					$	437					$	417					$	405					$	398
Gross recoveries	$	103					$	97					$	82					$	83					$	83
Allowance for credit losses as a percentage of
Period-end loans, excluding covered loans		1.59						1.59						1.61						1.60						1.61
Nonperforming loans, excluding covered loans		425						385						338						317						309
Nonperforming assets, excluding covered assets		359						331						296						275						264
Period-end loans		1.58						1.58						1.60						1.59						1.60
Nonperforming loans		426						383						338						318						310
Nonperforming assets		352						324						292						272						261

(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 Third Quarter 2017 Results

October 18, 2017

Page 12

Credit Quality

The Company’s provision for credit losses for the third quarter of 2017 was $360 million, which was $10 million (2.9 percent) higher than the prior quarter and $35 million (10.8 percent) higher than the third quarter of 2016. Credit quality was relatively stable compared with the second quarter of 2017.

Total net charge-offs in the third quarter of 2017 were $330 million, compared with $340 million in the second quarter of 2017, and $315 million in the third quarter of 2016. Net charge-offs decreased $10 million (2.9 percent) compared with the second quarter of 2017 mainly due to seasonally lower credit card loan net charge-offs. Net charge-offs increased $15 million (4.8 percent) compared with the third quarter of 2016 primarily due to higher credit card loan net charge-offs related to maturity of vintages within the portfolio, partially offset by lower net charge-offs in residential mortgages and higher recoveries in total commercial. The net charge-off ratio was 0.47 percent in the third quarter of 2017, compared with 0.49 percent in the second quarter of 2017 and 0.46 percent in the third quarter of 2016.

The allowance for credit losses was $4,407 million at September 30, 2017, compared with $4,377 million at June 30, 2017, and $4,338 million at September 30, 2016. The ratio of the allowance for credit losses to period-end loans was 1.58 percent at September 30, 2017 and at June 30, 2017, compared with 1.60 percent at September 30, 2016. The ratio of the allowance for credit losses to nonperforming loans was 426 percent at September 30, 2017, compared with 383 percent at June 30, 2017, and 310 percent at September 30, 2016.

Nonperforming assets were $1,251 million at September 30, 2017, compared with $1,349 million at June 30, 2017, and $1,664 million at September 30, 2016. The ratio of nonperforming assets to loans and other real estate was 0.45 percent at September 30, 2017, compared with 0.49 percent at June 30, 2017, and 0.61 percent at September 30, 2016. The $98 million (7.3 percent) decrease in nonperforming assets on a linked quarter basis was driven by improvements in commercial loans and residential mortgages. The $413 million (24.8 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 $649 million ($497 million excluding covered loans) at September 30, 2017, compared with $639 million ($477 million excluding covered loans) at June 30, 2017, and $748 million ($518 million excluding covered loans) at September 30, 2016.

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U.S. Bancorp Reports Third Quarter 2017 Results

October 18, 2017

Page 13

DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES										Table 9
(Percent)
	Sep 30 2017		Jun 30 2017		Mar 31 2017		Dec 31 2016		Sep 30 2016
Delinquent loan ratios - 90 days or more past due excluding nonperforming loans
Commercial		.05		.05		.06		.06		.05
Commercial real estate		.01		—		.01		.02		.02
Residential mortgages		.18		.20		.24		.27		.28
Credit card		1.20		1.10		1.23		1.16		1.11
Other retail		.15		.14		.14		.15		.14
Total loans, excluding covered loans		.18		.17		.19		.20		.19
Covered loans		4.66		4.71		5.34		5.53		5.72
Total loans		.23		.23		.26		.28		.28
Delinquent loan ratios - 90 days or more past due including nonperforming loans
Commercial		.33		.39		.52		.57		.61
Commercial real estate		.30		.29		.27		.31		.26
Residential mortgages		.98		1.10		1.23		1.31		1.37
Credit card		1.20		1.10		1.24		1.18		1.13
Other retail		.43		.42		.43		.45		.42
Total loans, excluding covered loans		.55		.59		.67		.71		.72
Covered loans		4.84		5.06		5.53		5.68		5.89
Total loans		.60		.64		.73		.78		.79

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U.S. Bancorp Reports Third Quarter 2017 Results

October 18, 2017

Page 14

ASSET QUALITY										Table 10
($ in millions)
	Sep 30 2017		Jun 30 2017		Mar 31 2017		Dec 31 2016		Sep 30 2016
Nonperforming loans
Commercial	$	231	$	283	$	397	$	443	$	477
Lease financing		38		39		42		40		40
Total commercial		269		322		439		483		517
Commercial mortgages		89		84		74		87		98
Construction and development		33		35		36		37		7
Total commercial real estate		122		119		110		124		105
Residential mortgages		474		530		575		595		614
Credit card		1		1		2		3		4
Other retail		163		158		157		157		153
Total nonperforming loans, excluding covered loans		1,029		1,130		1,283		1,362		1,393
Covered loans		6		12		7		6		7
Total nonperforming loans		1,035		1,142		1,290		1,368		1,400
Other real estate (a)		164		157		155		186		213
Covered other real estate (a)		26		25		22		26		28
Other nonperforming assets		26		25		28		23		23
Total nonperforming assets (b)	$	1,251	$	1,349	$	1,495	$	1,603	$	1,664
Total nonperforming assets, excluding covered assets	$	1,219	$	1,312	$	1,466	$	1,571	$	1,629
Accruing loans 90 days or more past due, excluding covered loans	$	497	$	477	$	524	$	552	$	518
Accruing loans 90 days or more past due	$	649	$	639	$	718	$	764	$	748
Performing restructured loans, excluding GNMA and covered loans	$	2,419	$	2,473	$	2,478	$	2,557	$	2,672
Performing restructured GNMA and covered loans	$	1,600	$	1,803	$	1,746	$	1,604	$	1,375
Nonperforming assets to loans plus ORE, excluding covered assets (%)		.44		.48		.54		.58		.61
Nonperforming assets to loans plus ORE (%)		.45		.49		.55		.59		.61

(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 Third Quarter 2017 Results

October 18, 2017

Page 15

COMMON SHARES														Table 11
(Millions)	3Q 2017			2Q 2017			1Q 2017			4Q 2016			3Q 2016
Beginning shares outstanding		1,679			1,692			1,697			1,705			1,719
Shares issued for stock incentive plans, acquisitions and other corporate purposes		—			1			6			6			2
Shares repurchased		(12	)		(14	)		(11	)		(14	)		(16	)
Ending shares outstanding		1,667			1,679			1,692			1,697			1,705

CAPITAL POSITION														Table 12
($ in millions)	Sep 30 2017			Jun 30 2017			Mar 31 2017			Dec 31 2016			Sep 30 2016
Total U.S. Bancorp shareholders’ equity	$	48,723		$	48,320		$	47,798		$	47,298		$	47,759
Standardized Approach
Basel III transitional standardized approach
Common equity tier 1 capital	$	34,876		$	34,408		$	33,847		$	33,720		$	33,827
Tier 1 capital		40,411			39,943			39,374			39,421			39,531
Total risk-based capital		48,104			47,824			47,279			47,355			47,452
Common equity tier 1 capital ratio		9.6	%		9.5	%		9.5	%		9.4	%		9.5	%
Tier 1 capital ratio		11.1			11.1			11.0			11.0			11.1
Total risk-based capital ratio		13.2			13.2			13.3			13.2			13.3
Leverage ratio		9.1			9.1			9.1			9.0			9.2
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach (a)		9.4			9.3			9.2			9.1			9.3
Advanced Approaches
Common equity tier 1 capital to risk-weighted assets for the Basel III transitional advanced approaches		12.1			12.0			11.8			12.2			12.4
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches (a)		11.8			11.7			11.5			11.7			12.1
Tangible common equity to tangible assets (a)		7.7			7.5			7.6			7.5			7.5
Tangible common equity to risk-weighted assets (a)		9.5			9.4			9.4			9.2			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 Third Quarter 2017 Results

October 18, 2017

Page 16

Capital Management

Total U.S. Bancorp shareholders’ equity was $48.7 billion at September 30, 2017, compared with $48.3 billion at June 30, 2017, and $47.8 billion at September 30, 2016. During the third quarter, the Company returned 79 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 9.4 percent at September 30, 2017, compared with 9.3 percent at June 30, 2017, and at September 30, 2016. The estimated common equity tier 1 capital to risk-weighted assets ratio using the Basel III fully implemented advanced approaches method was 11.8 percent at September 30, 2017, compared with 11.7 percent at June 30, 2017, and 12.1 percent at September 30, 2016.

On Wednesday, October 18, 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 75774124. For those unable to participate during the live call, a recording will be available at approximately 11:00 a.m. CDT on Wednesday, October 18 and will be accessible through Wednesday, October 25 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 75774124.

Minneapolis-based U.S. Bancorp (NYSE: USB), with $459 billion in assets as of September 30, 2017, is the parent company of U.S. Bank National Association, the fifth largest commercial bank in the United States. The Company operates 3,072 banking offices in 25 states and 4,801 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 Third Quarter 2017 Results

October 18, 2017

Page 17

Forward-Looking Statements

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

This press release contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward-looking statements cover, among other things, anticipated future revenue and expenses and the future plans and prospects of U.S. Bancorp. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. A reversal or slowing of the current economic recovery or another severe contraction could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities. Global financial markets could experience a recurrence of significant turbulence, which could reduce the availability of funding to certain financial institutions and lead to a tightening of credit, a reduction of business activity, and increased market volatility. Stress in the commercial real estate markets, as well as a downturn in the residential real estate markets could cause credit losses and deterioration in asset values. In addition, 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 Third Quarter 2017 Results

October 18, 2017

Page 18

Non-GAAP Financial Measures

In addition to capital ratios defined by banking regulators, the Company considers various other measures when evaluating capital utilization and adequacy, including:

• Tangible common equity to tangible assets,

• Tangible common equity to risk-weighted assets,

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

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

These capital measures are viewed by management as useful additional methods of reflecting the level of capital available to withstand unexpected 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.

###

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U.S. Bancorp

Consolidated Statement of Income

(Dollars and Shares in Millions, Except Per Share Data)	Three Months Ended September 30,						Nine Months Ended September 30,
(Unaudited)	2017			2016			2017			2016
Interest Income
Loans	$	3,059		$	2,731		$	8,757		$	8,039
Loans held for sale		40			43			104			110
Investment securities		568			515			1,653			1,555
Other interest income		47			31			131			89
Total interest income		3,714			3,320			10,645			9,793
Interest Expense
Deposits		293			161			730			452
Short-term borrowings		90			70			233			201
Long-term debt		196			196			585			567
Total interest expense		579			427			1,548			1,220
Net interest income		3,135			2,893			9,097			8,573
Provision for credit losses		360			325			1,055			982
Net interest income after provision for credit losses		2,775			2,568			8,042			7,591
Noninterest Income
Credit and debit card revenue		308			299			919			861
Corporate payment products revenue		201			190			564			541
Merchant processing services		405			412			1,190			1,188
ATM processing services		92			87			267			251
Trust and investment management fees		380			362			1,128			1,059
Deposit service charges		192			192			553			539
Treasury management fees		153			147			466			436
Commercial products revenue		221			219			638			654
Mortgage banking revenue		213			314			632			739
Investment products fees		39			41			120			120
Securities gains (losses), net		9			10			47			16
Other		209			172			646			742
Total noninterest income		2,422			2,445			7,170			7,146
Noninterest Expense
Compensation		1,440			1,329			4,247			3,855
Employee benefits		281			280			882			858
Net occupancy and equipment		258			250			760			741
Professional services		104			127			305			346
Marketing and business development		92			102			291			328
Technology and communications		246			243			723			717
Postage, printing and supplies		82			80			244			236
Other intangibles		44			45			131			134
Other		492			475			1,423			1,457
Total noninterest expense		3,039			2,931			9,006			8,672
Income before income taxes		2,158			2,082			6,206			6,065
Applicable income taxes		589			566			1,639			1,612
Net income		1,569			1,516			4,567			4,453
Net (income) loss attributable to noncontrolling interests		(6	)		(14	)		(31	)		(43	)
Net income attributable to U.S. Bancorp	$	1,563		$	1,502		$	4,536		$	4,410
Net income applicable to U.S. Bancorp common shareholders	$	1,485		$	1,434		$	4,302		$	4,198
Earnings per common share	$	.89		$	.84		$	2.56		$	2.44
Diluted earnings per common share	$	.88		$	.84		$	2.55		$	2.43
Dividends declared per common share	$	.300		$	.280		$	.860		$	.790
Average common shares outstanding		1,672			1,710			1,683			1,724
Average diluted common shares outstanding		1,678			1,716			1,689			1,730

Page 19

U.S. Bancorp

Consolidated Ending Balance Sheet

(Dollars in Millions)	September 30, 2017			December 31, 2016			September 30, 2016
	(Unaudited)						(Unaudited)
Assets
Cash and due from banks	$	20,540		$	15,705		$	23,664
Investment securities
Held-to-maturity		44,018			42,991			42,873
Available-for-sale		67,772			66,284			67,155
Loans held for sale		3,757			4,826			5,575
Loans
Commercial		96,928			93,386			93,201
Commercial real estate		41,430			43,098			43,468
Residential mortgages		59,317			57,274			56,229
Credit card		20,923			21,749			20,706
Other retail		56,859			53,864			53,664
Total loans, excluding covered loans		275,457			269,371			267,268
Covered loans		3,262			3,836			4,021
Total loans		278,719			273,207			271,289
Less allowance for loan losses		(3,908	)		(3,813	)		(3,797	)
Net loans		274,811			269,394			267,492
Premises and equipment		2,402			2,443			2,449
Goodwill		9,370			9,344			9,357
Other intangible assets		3,193			3,303			2,887
Other assets		33,364			31,674			32,682
Total assets	$	459,227		$	445,964		$	454,134
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing	$	82,152		$	86,097		$	89,101
Interest-bearing		260,437			248,493			245,494
Total deposits		342,589			334,590			334,595
Short-term borrowings		15,856			13,963			15,695
Long-term debt		34,515			33,323			37,978
Other liabilities		16,916			16,155			17,467
Total liabilities		409,876			398,031			405,735
Shareholders’ equity
Preferred stock		5,419			5,501			5,501
Common stock		21			21			21
Capital surplus		8,457			8,440			8,429
Retained earnings		53,023			50,151			49,231
Less treasury stock		(16,978	)		(15,280	)		(14,844	)
Accumulated other comprehensive income (loss)		(1,219	)		(1,535	)		(579	)
Total U.S. Bancorp shareholders’ equity		48,723			47,298			47,759
Noncontrolling interests		628			635			640
Total equity		49,351			47,933			48,399
Total liabilities and equity	$	459,227		$	445,964		$	454,134

Page 20

U.S. Bancorp

Non-GAAP Financial Measures

(Dollars in Millions, Unaudited)	September 30, 2017			June 30, 2017			March 31, 2016			December 31, 2016			September 30, 2016
Total equity	$	49,351		$	48,949		$	48,433		$	47,933		$	48,399
Preferred stock		(5,419	)		(5,419	)		(5,419	)		(5,501	)		(5,501	)
Noncontrolling interests		(628	)		(629	)		(635	)		(635	)		(640	)
Goodwill (net of deferred tax liability) (1)		(8,141	)		(8,181	)		(8,186	)		(8,203	)		(8,239	)
Intangible assets, other than mortgage servicing rights		(595	)		(634	)		(671	)		(712	)		(756	)
Tangible common equity (a)		34,568			34,086			33,522			32,882			33,263
Tangible common equity (as calculated above)		34,568			34,086			33,522			32,882			33,263
Adjustments (2)		(52	)		(51	)		(136	)		(55	)		97
Common equity tier 1 capital estimated for the Basel III fully implemented standardized and advanced approaches (b)		34,516			34,035			33,386			32,827			33,360
Total assets		459,227			463,844			449,522			445,964			454,134
Goodwill (net of deferred tax liability) (1)		(8,141	)		(8,181	)		(8,186	)		(8,203	)		(8,239	)
Intangible assets, other than mortgage servicing rights		(595	)		(634	)		(671	)		(712	)		(756	)
Tangible assets (c)		450,491			455,029			440,665			437,049			445,139
Risk-weighted assets, determined in accordance with prescribed transitional standardized approach regulatory requirements (d)		363,957	*		361,164			356,373			358,237			356,733
Adjustments (3)		3,907	*		3,967			4,731			4,027			3,165
Risk-weighted assets estimated for the Basel III fully implemented standardized approach (e)		367,864	*		365,131			361,104			362,264			359,898
Risk-weighted assets, determined in accordance with prescribed transitional advanced approaches regulatory requirements		287,800	*		287,124			285,963			277,141			272,832
Adjustments (4)		4,164	*		4,231			5,046			4,295			3,372
Risk-weighted assets estimated for the Basel III fully implemented advanced approaches (f)		291,964	*		291,355			291,009			281,436			276,204
Ratios *
Tangible common equity to tangible assets (a)/(c)		7.7	%		7.5	%		7.6	%		7.5	%		7.5	%
Tangible common equity to risk-weighted assets (a)/(d)		9.5			9.4			9.4			9.2			9.3
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach (b)/(e)		9.4			9.3			9.2			9.1			9.3
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches (b)/(f)		11.8			11.7			11.5			11.7			12.1
	Three Months Ended
	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Net interest income	$	3,135		$	3,017		$	2,945		$	2,955		$	2,893
Taxable-equivalent adjustment (5)		51			51			50			49			50
Net interest income, on a taxable-equivalent basis		3,186			3,068			2,995			3,004			2,943
Net interest income, on a taxable-equivalent basis (as calculated above)		3,186			3,068			2,995			3,004			2,943
Noninterest income		2,422			2,419			2,329			2,431			2,445
Less: Securities gains (losses), net		9			9			29			6			10
Total net revenue, excluding net securities gains (losses) (g)		5,599			5,478			5,295			5,429			5,378
Noninterest expense (h)		3,039			3,023			2,944			3,004			2,931
Less: Intangible amortization		44			43			44			45			45
Noninterest expense, excluding intangible amortization (i)		2,995			2,980			2,900			2,959			2,886
Efficiency ratio (h)/(g)		54.3	%		55.2	%		55.6	%		55.3	%		54.5	%
Tangible efficiency ratio (i)/(g)		53.5			54.4			54.8			54.5			53.7

* 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

3Q 2017

U.S. Bancorp Third Quarter 2017 Business Line Results

October 18, 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							3Q 2017
Business Line	3Q 2017		2Q 2017		3Q 2016		3Q17 vs 2Q17			3Q17 vs 3Q16			YTD 2017		YTD 2016		Percent Change			Earnings Composition
Wholesale Banking and Commercial Real Estate	$	282	$	291	$	225		(3.1	)		25.3		$	827	$	574		44.1			18	%
Consumer and Small Business Banking		363		314		359		15.6			1.1			974		1,036		(6.0	)		23
Wealth Management and Securities Services		125		128		95		(2.3	)		31.6			363		273		33.0			8
Payment Services		303		276		342		9.8			(11.4	)		868		983		(11.7	)		19
Treasury and Corporate Support		490		491		481		(.2	)		1.9			1,504		1,544		(2.6	)		32
Consolidated Company	$	1,563	$	1,500	$	1,502		4.2			4.1		$	4,536	$	4,410		2.9			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.

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Page 3

WHOLESALE BANKING AND COMMERCIAL REAL ESTATE (a)
($ in millions)
									Percent Change
	3Q 2017			2Q 2017			3Q 2016		3Q17 vs 2Q17			3Q17 vs 3Q16			YTD 2017			YTD 2016		Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	616		$	602		$	563		2.3			9.4		$	1,806		$	1,638		10.3
Noninterest income		215			238			220		(9.7	)		(2.3	)		697			676		3.1
Securities gains (losses), net		—			—			—		—			—			(3	)		—		nm
Total net revenue		831			840			783		(1.1	)		6.1			2,500			2,314		8.0
Noninterest expense		396			400			355		(1.0	)		11.5			1,188			1,066		11.4
Other intangibles		1			1			1		—			—			3			3		—
Total noninterest expense		397			401			356		(1.0	)		11.5			1,191			1,069		11.4
Income before provision and taxes		434			439			427		(1.1	)		1.6			1,309			1,245		5.1
Provision for credit losses		(9	)		(18	)		73		50.0			nm			9			342		(97.4	)
Income before income taxes		443			457			354		(3.1	)		25.1			1,300			903		44.0
Income taxes and taxable-equivalent adjustment		161			166			129		(3.0	)		24.8			473			329		43.8
Net income		282			291			225		(3.1	)		25.3			827			574		44.1
Net (income) loss attributable to noncontrolling interests		—			—			—		—			—			—			—		—
Net income attributable to U.S. Bancorp	$	282		$	291		$	225		(3.1	)		25.3		$	827		$	574		44.1
Average Balance Sheet Data
Loans	$	94,003		$	94,222		$	92,290		(.2	)		1.9		$	93,986		$	91,512		2.7
Other earning assets		2,855			3,107			2,500		(8.1	)		14.2			2,948			2,324		26.9
Goodwill		1,647			1,647			1,647		—			—			1,647			1,647		—
Other intangible assets		13			14			16		(7.1	)		(18.8	)		14			17		(17.6	)
Assets		102,327			103,101			100,864		(.8	)		1.5			102,580			99,932		2.6
Noninterest-bearing deposits		35,353			36,400			36,685		(2.9	)		(3.6	)		36,217			36,543		(.9	)
Interest-bearing deposits		74,464			68,868			67,419		8.1			10.4			71,306			61,244		16.4
Total deposits		109,817			105,268			104,104		4.3			5.5			107,523			97,787		10.0
Total U.S. Bancorp shareholders’ equity		9,952			9,921			8,997		.3			10.6			9,852			8,927		10.4

(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 $282 million of the Company’s net income in the third quarter of 2017, compared with $225 million in the third quarter of 2016. Total net revenue increased $48 million (6.1 percent) due to a $53 million (9.4 percent) increase in net interest income, partially offset by a decrease of $5 million (2.3 percent) in total noninterest income. Net interest income grew year-over-year primarily due to the margin benefit of rising rates on deposits and

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Page 4

growth in average loan and deposit balances, partially offset by lower spread on loans, reflecting a competitive marketplace. Total noninterest income decreased year-over-year primarily due to lower foreign currency customer activity and capital markets volume from a year ago, partially offset by higher treasury management fees. Total noninterest expense was $41 million (11.5 percent) higher compared with a year ago due to an increase in variable costs allocated to manage the business and higher compensation expense, reflecting the impact of increased staffing, merit increases and variable compensation. The provision for credit losses decreased $82 million due to a favorable change in the reserve allocation and continued stabilization in credit quality in the energy sector.

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Page 5

CONSUMER AND SMALL BUSINESS BANKING (a)
($ in millions)
							Percent Change
	3Q 2017		2Q 2017		3Q 2016		3Q17 vs 2Q17			3Q17 vs 3Q16			YTD 2017		YTD 2016		Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,309	$	1,258	$	1,199		4.1			9.2		$	3,789	$	3,523		7.6
Noninterest income		632		620		712		1.9			(11.2	)		1,837		1,899		(3.3	)
Securities gains (losses), net		—		—		—		—			—			—		—		—
Total net revenue		1,941		1,878		1,911		3.4			1.6			5,626		5,422		3.8
Noninterest expense		1,266		1,287		1,293		(1.6	)		(2.1	)		3,821		3,746		2.0
Other intangibles		8		7		8		14.3			—			22		24		(8.3	)
Total noninterest expense		1,274		1,294		1,301		(1.5	)		(2.1	)		3,843		3,770		1.9
Income before provision and taxes		667		584		610		14.2			9.3			1,783		1,652		7.9
Provision for credit losses		97		90		45		7.8			nm			252		22		nm
Income before income taxes		570		494		565		15.4			.9			1,531		1,630		(6.1	)
Income taxes and taxable-equivalent adjustment		207		180		206		15.0			.5			557		594		(6.2	)
Net income		363		314		359		15.6			1.1			974		1,036		(6.0	)
Net (income) loss attributable to noncontrolling interests		—		—		—		—			—			—		—		—
Net income attributable to U.S. Bancorp	$	363	$	314	$	359		15.6			1.1		$	974	$	1,036		(6.0	)
Average Balance Sheet Data
Loans	$	142,080	$	140,544	$	137,679		1.1			3.2		$	140,592	$	135,671		3.6
Other earning assets		4,304		3,205		5,257		34.3			(18.1	)		3,845		4,445		(13.5	)
Goodwill		3,681		3,682		3,681		—			—			3,682		3,681		—
Other intangible assets		2,701		2,730		2,270		(1.1	)		19.0			2,733		2,394		14.2
Assets		156,737		154,247		153,501		1.6			2.1			154,894		150,711		2.8
Noninterest-bearing deposits		28,705		27,303		28,355		5.1			1.2			27,666		27,092		2.1
Interest-bearing deposits		121,121		120,852		115,875		.2			4.5			120,462		114,613		5.1
Total deposits		149,826		148,155		144,230		1.1			3.9			148,128		141,705		4.5
Total U.S. Bancorp shareholders’ equity		11,489		11,435		11,312		.5			1.6			11,482		11,138		3.1

(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 $363 million of the Company’s net income in the third quarter of 2017, compared with $359 million in the third quarter of 2016. Total net revenue increased $30 million (1.6 percent) due to a $110 million (9.2 percent) increase in net interest income, partially offset by a decrease of $80 million (11.2 percent) in total noninterest income. Net interest income increased year-over-year primarily due to the impact of the margin benefit of rising rates from deposits along with growth in

U.S. Bancorp Third Quarter 2017 Business Line Results

October 18, 2017

Page 6

average loan and deposit balances, partially offset by lower spread on loans. Total noninterest income decreased year-over-year principally driven by lower mortgage banking revenue due to lower origination and sales volume related to refinancing activities, as refinancing activities were significantly higher in the third quarter of 2016. Partially offsetting the impact of lower mortgage banking revenue was growth in retail leasing revenue due to stronger end-of-term gains on auto leases and higher ATM processing services fees. Total noninterest expense in the third quarter of 2017 decreased $27 million (2.1 percent) from the same quarter of the prior year primarily due to lower mortgage related costs and lower professional services expense. Partially offsetting these decreases were higher compensation expense, reflecting the impact of increased staffing and merit increases, and higher net shared services expense. The provision for credit losses increased $52 million primarily due to growth in total other retail loans and exposures as a result of recent weather events.

U.S. Bancorp Third Quarter 2017 Business Line Results

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Page 7

WEALTH MANAGEMENT AND SECURITIES SERVICES (a)
($ in millions)
									Percent Change
	3Q 2017		2Q 2017			3Q 2016			3Q17 vs 2Q17			3Q17 vs 3Q16			YTD 2017		YTD 2016			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	192	$	187		$	135			2.7			42.2		$	558	$	374			49.2
Noninterest income		411		413			403			(.5	)		2.0			1,222		1,183			3.3
Securities gains (losses), net		—		—			—			—			—			—		—			—
Total net revenue		603		600			538			.5			12.1			1,780		1,557			14.3
Noninterest expense		401		395			384			1.5			4.4			1,194		1,113			7.3
Other intangibles		5		5			6			—			(16.7	)		15		18			(16.7	)
Total noninterest expense		406		400			390			1.5			4.1			1,209		1,131			6.9
Income before provision and taxes		197		200			148			(1.5	)		33.1			571		426			34.0
Provision for credit losses		1		(1	)		(1	)		nm			nm			1		(2	)		nm
Income before income taxes		196		201			149			(2.5	)		31.5			570		428			33.2
Income taxes and taxable-equivalent adjustment		71		73			54			(2.7	)		31.5			207		155			33.5
Net income		125		128			95			(2.3	)		31.6			363		273			33.0
Net (income) loss attributable to noncontrolling interests		—		—			—			—			—			—		—			—
Net income attributable to U.S. Bancorp	$	125	$	128		$	95			(2.3	)		31.6		$	363	$	273			33.0
Average Balance Sheet Data
Loans	$	8,595	$	8,306		$	7,299			3.5			17.8		$	8,289	$	7,135			16.2
Other earning assets		158		147			142			7.5			11.3			153		139			10.1
Goodwill		1,568		1,567			1,567			.1			.1			1,567		1,567			—
Other intangible assets		79		83			99			(4.8	)		(20.2	)		83		104			(20.2	)
Assets		11,495		11,425			10,383			.6			10.7			11,454		10,251			11.7
Noninterest-bearing deposits		14,715		15,944			13,803			(7.7	)		6.6			14,836		13,249			12.0
Interest-bearing deposits		56,647		57,926			51,700			(2.2	)		9.6			57,179		48,581			17.7
Total deposits		71,362		73,870			65,503			(3.4	)		8.9			72,015		61,830			16.5
Total U.S. Bancorp shareholders’ equity		2,381		2,365			2,378			.7			.1			2,383		2,379			.2

(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 $125 million of the Company’s net income in the third quarter of 2017, compared with $95 million in the third quarter of 2016. Total net revenue increased $65 million (12.1 percent) year-over-year driven by an increase in net interest income of $57 million (42.2 percent) principally due to the impact of rising rates on the margin benefit from deposits along with higher average loan and deposit balances. Total noninterest income

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Page 8

increased $8 million (2.0 percent) principally due to favorable market conditions and net asset and account growth. Total noninterest expense increased $16 million (4.1 percent) primarily as a result of higher compensation expense, reflecting the impact of higher staffing and merit increases, higher net shared services expense, and a higher FDIC surcharge driven by higher deposit balances compared with the prior year. The provision for credit losses was relatively flat compared with the prior year quarter.

U.S. Bancorp Third Quarter 2017 Business Line Results

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Page 9

PAYMENT SERVICES (a)

($ in millions)

									Percent Change
	3Q 2017		2Q 2017			3Q 2016			3Q17 vs 2Q17			3Q17 vs 3Q16			YTD 2017			YTD 2016			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	563	$	540		$	538			4.3			4.6		$	1,653		$	1,579			4.7
Noninterest income		920		909			912			1.2			.9			2,686			2,651			1.3
Securities gains (losses), net		—		—			—			—			—			—			—			—
Total net revenue		1,483		1,449			1,450			2.3			2.3			4,339			4,230			2.6
Noninterest expense		707		693			662			2.0			6.8			2,069			1,941			6.6
Other intangibles		30		30			30			—			—			91			89			2.2
Total noninterest expense		737		723			692			1.9			6.5			2,160			2,030			6.4
Income before provision and taxes		746		726			758			2.8			(1.6	)		2,179			2,200			(1.0	)
Provision for credit losses		270		283			208			(4.6	)		29.8			794			615			29.1
Income before income taxes		476		443			550			7.4			(13.5	)		1,385			1,585			(12.6	)
Income taxes and taxable-equivalent adjustment		173		161			200			7.5			(13.5	)		504			577			(12.7	)
Net income		303		282			350			7.4			(13.4	)		881			1,008			(12.6	)
Net (income) loss attributable to noncontrolling interests		—		(6	)		(8	)		nm			nm			(13	)		(25	)		48.0
Net income attributable to U.S. Bancorp	$	303	$	276		$	342			9.8			(11.4	)	$	868		$	983			(11.7	)
Average Balance Sheet Data
Loans	$	29,612	$	29,070		$	28,909			1.9			2.4		$	29,209		$	28,309			3.2
Other earning assets		241		241			267			—			(9.7	)		246			380			(35.3	)
Goodwill		2,469		2,457			2,463			.5			.2			2,459			2,466			(.3	)
Other intangible assets		385		408			494			(5.6	)		(22.1	)		409			502			(18.5	)
Assets		35,035		34,778			34,715			.7			.9			34,794			34,226			1.7
Noninterest-bearing deposits		1,029		1,015			954			1.4			7.9			1,023			947			8.0
Interest-bearing deposits		103		102			98			1.0			5.1			101			97			4.1
Total deposits		1,132		1,117			1,052			1.3			7.6			1,124			1,044			7.7
Total U.S. Bancorp shareholders’ equity		6,206		6,228			6,385			(.4	)		(2.8	)		6,280			6,361			(1.3	)

(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 $303 million of the Company’s net income in the third quarter of 2017, compared with $342 million in the third quarter of 2016. Total net revenue increased $33 million (2.3 percent) due to a $25 million (4.6 percent) increase in net interest income and an increase of $8 million (0.9 percent) in total noninterest income. Net interest income increased year-over-year primarily due to higher loan volumes and rising interest rates, in addition to growth in loan fees. Total noninterest income increased

U.S. Bancorp Third Quarter 2017 Business Line Results

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Page 10

year-over-year primarily due to higher corporate payment products revenue and credit and debit card revenue driven by higher sales, partially offset by lower merchant processing services revenue due to exiting certain joint ventures and the impacts of recent weather events. Total noninterest expense increased $45 million (6.5 percent) over the third quarter of 2016 principally due to higher net shared services expense, driven by implementation costs of capital investments to support business growth, and higher compensation and employee benefits expense, reflecting higher staffing to support business investment and compliance programs and merit increases. The provision for credit losses increased $62 million (29.8 percent) due to an unfavorable change in the reserve allocation and higher net charge-offs.

U.S. Bancorp Third Quarter 2017 Business Line Results

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Page 11

TREASURY AND CORPORATE SUPPORT (a)

($ in millions)

										Percent Change
	3Q 2017			2Q 2017			3Q 2016			3Q17 vs 2Q17			3Q17 vs 3Q16			YTD 2017			YTD 2016			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	506		$	481		$	508			5.2			(.4	)	$	1,443		$	1,613			(10.5	)
Noninterest income		235			230			188			2.2			25.0			681			721			(5.5	)
Securities gains (losses), net		9			9			10			—			(10.0	)		50			16			nm
Total net revenue		750			720			706			4.2			6.2			2,174			2,350			(7.5	)
Noninterest expense		225			205			192			9.8			17.2			603			672			(10.3	)
Other intangibles		—			—			—			—			—			—			—			—
Total noninterest expense		225			205			192			9.8			17.2			603			672			(10.3	)
Income before provision and taxes		525			515			514			1.9			2.1			1,571			1,678			(6.4	)
Provision for credit losses		1			(4	)		—			nm			nm			(1	)		5			nm
Income before income taxes		524			519			514			1.0			1.9			1,572			1,673			(6.0	)
Income taxes and taxable-equivalent adjustment		28			22			27			27.3			3.7			50			111			(55.0	)
Net income		496			497			487			(.2	)		1.8			1,522			1,562			(2.6	)
Net (income) loss attributable to noncontrolling interests		(6	)		(6	)		(6	)		—			—			(18	)		(18	)		—
Net income attributable to U.S. Bancorp	$	490		$	491		$	481			(.2	)		1.9		$	1,504		$	1,544			(2.6	)
Average Balance Sheet Data
Loans	$	3,336		$	3,386		$	3,460			(1.5	)		(3.6	)	$	3,378		$	3,552			(4.9	)
Other earning assets		123,641			121,655			115,980			1.6			6.6			121,385			112,349			8.0
Goodwill		—			—			—			—			—			—			—			—
Other intangible assets		—			—			—			—			—			—			—			—
Assets		145,036			142,554			138,400			1.7			4.8			142,327			134,301			6.0
Noninterest-bearing deposits		2,162			2,048			2,224			5.6			(2.8	)		2,066			2,097			(1.5	)
Interest-bearing deposits		852			714			1,435			19.3			(40.6	)		754			2,849			(73.5	)
Total deposits		3,014			2,762			3,659			9.1			(17.6	)		2,820			4,946			(43.0	)
Total U.S. Bancorp shareholders’ equity		18,791			18,324			18,719			2.5			.4			18,345			18,435			(.5	)

(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 $490 million in the third quarter of 2017, compared with $481 million in the third quarter of 2016. The increase in net income from the prior year quarter was primarily due to an increase in total net revenue, partially offset by an increase in total noninterest expense. Net interest income was essentially flat to the third quarter of 2016. Total noninterest income increased $46 million (23.2 percent) from the third quarter of

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2016 principally due to equity investments. Total noninterest expense increased $33 million (17.2 percent) principally due to higher compensation expense, reflecting the impact of increased staffing and merit increases including variable compensation, and higher accruals for legal and regulatory matters, partially offset by lower net shared services expenses. The provision for credit losses was relatively flat compared with the prior year quarter.

EX-99.2

U.S. Bancorp 3Q17 Earnings Conference Call October 18, 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.

3Q17 Highlights * Taxable-equivalent basis; see slide 25 for calculation ** Estimated for the Basel III fully implemented standardized approach; RWA = risk-weighted assets, see slide 24 for calculation

Performance Ratios Return on Average Common Equity Efficiency Ratio* & Net Interest Margin** * Non-GAAP; see slide 25 for calculation ** Taxable-equivalent basis Return on Average Assets

Average Loans +0.8% linked quarter +3.0% year-over-year Linked quarter growth in total loans was driven primarily by commercial loans, other retail loans and retail leasing Year-over-year and linked quarter declines in commercial real estate loans reflected disciplined underwriting of construction and development loans and payoffs of commercial mortgages as customers accessed capital markets $ in billions

Average Deposits +1.2% linked quarter +5.2% year-over-year $ in billions Rates are presented on a fully taxable-equivalent basis utilizing a tax rate of 35 percent Interest-bearing Deposits Average noninterest-bearing deposits decreased 0.9% on a linked quarter basis Average noninterest-bearing deposits were essentially flat year-over-year

Credit Quality NCO Ratio -2bps QoQ +1bp YoY NPAs -7.3% QoQ -24.8% YoY $ in millions

Earnings Summary

Net Interest Income Linked Quarter Net interest income growth was driven by loan growth, the impact of rising rates, higher interest recoveries and an additional day in the third quarter Net interest margin growth was driven by higher interest rates and a change in loan portfolio mix, partially offset by higher funding costs Year-over-Year Net interest income growth was driven primarily by loan growth and the impact of rising interest rates $ in millions Taxable-equivalent basis +3.8% linked quarter +8.3% 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 $2,445 $2,419 $2,422 Linked Quarter Solid growth in corporate payment products and deposit service charges revenue reflected typical seasonal patterns Growth in commercial products revenue was driven primarily by higher foreign exchange fees, corporate bond fees and syndication revenue Year-over-Year Noninterest income decreased slightly, primarily due to lower mortgage banking revenue Growth in trust and investment management fees reflected favorable market conditions and account growth Payment services revenue growth was driven by higher corporate payment products revenue and higher credit and debit card revenue +0.1% linked quarter -0.9% year-over-year

Noninterest Expense $2,931 $3,023 $3,039 Linked Quarter Growth in noninterest expense was driven by higher compensation expense, principally due to corporate incentive plans and the impact of hiring to support growth Year-over-Year Growth in compensation expense was partially offset by a decrease in professional services expense, primarily due to fewer consulting services as compliance programs near maturity $ in millions +0.5% linked quarter +3.7% year-over-year

Capital Position RWA = risk-weighted assets * See Non-GAAP Financial Measures reconciliation on slide 24

Appendix

Average Loans vs. 3Q16 Average total loans increased by $8.0 billion, or 3.0% Average commercial loans increased by $4.3 billion, or 4.6% Average retail loans increased by $3.2 billion, or 6.1% Average residential mortgage loans increased by $2.7 billion, or 4.9% vs. 2Q17 Average total loans increased by $2.1 billion, or 0.8% Average commercial loans increased by $1.0 billion, or 1.0% Average retail loans increased by $1.4 billion, or 2.6% Average residential mortgage loans increased by $0.5 billion, or 0.8% * 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 7.6% 6.2% 4.1% 3.4% 3.0% Covered Commercial CRE Res Mtg Retail Credit Card $273.2 $269.6 $272.7 5.2%** $277.6 Average Loans ($bn)

Average Deposits Key Points Average Deposits ($bn) vs. 3Q16 Average total deposits increased by $16.6 billion, or 5.2% Average low-cost deposits (NIB, interest checking, money market and savings) increased by $12.7 billion, or 4.4% vs. 2Q17 Average total deposits increased by $4.0 billion, or 1.2% Average low-cost deposits decreased by $1.6 billion, or 0.5% Year-over-Year Growth 10.0% 11.8% 11.0% 7.7% 5.2% Time Money Market Checking and Savings Noninterest-bearing $335.2 $318.5 $329.2 $328.4 $331.2

Credit Quality – Commercial Loans Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm3Q162Q173Q17 Average Loans$92,369$95,638$96,633 30-89 Delinquencies0.24%0.27%0.22% 90+ Delinquencies0.05%0.05%0.05% Nonperforming Loans0.55%0.33%0.28% Commercial loan growth primarily driven by increased M&A activity Nonperforming loans decreased as the energy portfolio continued to improve Net charge-offs remained stable linked quarter and showed improvement year-over-year

A&D Construction $499 Credit Quality – Commercial Real Estate Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm3Q162Q173Q17 Average Loans$43,374$42,549$41,621 30-89 Delinquencies0.08%0.08%0.15% 90+ Delinquencies0.02%0.00%0.01% Nonperforming Loans0.24%0.28%0.29% Performing TDRs*$274$162$141 Investor $19,709 Owner Occupied $10,405 Multi-family $4,400 Retail $815 Residential Construction $2,347 Office $777 Other $2,669 * TDR = troubled debt restructuring Average loans declined 4.0% vs. 3Q16; this was a result of construction loan payoffs due to strong permanent loan market liquidity and fewer growth opportunities due to lower development yields resulting from labor cost increases and increasing CRE supply in certain markets 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 $mm3Q162Q173Q17 Average Loans$56,284$58,544$59,030 30-89 Delinquencies0.26%0.22%0.26% 90+ Delinquencies0.28%0.20%0.18% Nonperforming Loans1.09%0.90%0.80% *Excludes GNMA loans, whose repayments are insured by the FHA or guaranteed by the Department of VA ($1,571 million in 3Q17) Originations continued to be high credit quality (weighted average FICO of 757, weighted average LTV of 71%) More than 91% 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 1.4% driven by high credit quality originations Commitment weighted average FICO on new originations remained strong at 760 Year-over-year increases in delinquency rates primarily reflect vintage maturation $mm3Q162Q173Q17 Average Loans$20,628$20,631$20,926 30-89 Delinquencies1.27%1.22%1.42% 90+ Delinquencies1.11%1.10%1.20% Nonperforming Loans0.02%0.00%0.00%

Credit Quality – Home Equity Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm3Q162Q173Q17 Average Loans$16,470$16,252$16,299 30-89 Delinquencies0.41%0.33%0.38% 90+ Delinquencies0.24%0.25%0.24% Nonperforming Loans0.75%0.74%0.75% Subprime: 1% Wtd Avg LTV*: 88% NCO: 3.05% Prime: 98% Wtd Avg LTV*: 72% NCO: 0.00% Other: 1% Wtd Avg LTV*: 70% NCO: 0.00% *LTV at origination High-quality originations (weighted average FICO on commitments of 767, 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 – Retail Leasing Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm3Q162Q173Q17 Average Loans$5,773$7,181$7,762 30-89 Delinquencies0.21%0.22%0.31% 90+ Delinquencies0.00%0.01%0.03% Nonperforming Loans0.05%0.07%0.09% * 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

Credit Quality – Other Retail Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm3Q162Q173Q17 Average Loans$30,608$31,194$32,008 30-89 Delinquencies0.56%0.65%0.75% 90+ Delinquencies0.11%0.11%0.13% Nonperforming Loans0.08%0.10%0.10% Overall growth continued to be driven by auto loan and installment categories, which were up 4.7% and 12.6% year-over-year, respectively Net charge-offs remained stable; 30-89 delinquencies were seasonally higher on a linked quarter basis

Credit Quality – Auto Loans Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm3Q162Q173Q17 Average Loans$17,205$17,533$18,008 30-89 Delinquencies0.59%0.73%0.89% 90+ Delinquencies0.05%0.06%0.08% Nonperforming Loans0.08%0.12%0.11% Direct: 5% Wtd Avg FICO: 748 NCO: 0.19% Indirect: 95% Wtd Avg FICO: 771 NCO: 0.41% Auto loans are included in Other Retail category Growth driven by high-quality originations in the indirect channel (weighted average FICO 779) Net charge-offs increased 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 3Q17 Earnings Conference Call October 18, 2017