8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 18, 2018

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 April 18, 2018, U.S. Bancorp (the “Company”) issued a press release reporting quarter-ended March 31, 2018 results, and posted on its website its 1Q18 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 1Q18 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated herein by reference. The information included in the 1Q18 Earnings Conference Call Presentation is considered to be “furnished” under the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference in any filings under the Securities Act of 1933. The press release and 1Q18 Earnings Conference Call Presentation contain forward-looking statements regarding the Company and each includes a cautionary statement identifying important factors that could cause actual results to differ materially from those anticipated.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(c) Exhibits.

99.1 Press Release issued by U.S. Bancorp on April 18, 2018, deemed “filed” under the Securities Exchange Act of 1934.

99.2 1Q18 Earnings Conference Call Presentation, deemed “furnished” under the Securities Exchange Act of 1934.

SIGNATURES

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

U.S. BANCORP

By /s/    Craig E. Gifford      

Craig E. Gifford

Executive Vice President and
Controller

DATE: April 18, 2018

EX-99.1

Exhibit 99.1

							U.S. Bancorp Reports First Quarter 2018 Results •  Net revenue of $5,469 million and net income of $1,675 million •  Industry leading return on average assets of 1.50% and return on average common equity of 14.9% •  Return on tangible common equity of 19.3%
1Q18 Key Financial Data							1Q18 Highlights
PROFITABILITY METRICS	1Q18		4Q17		1Q17
Return on average assets (%)		1.50		1.46		1.35	• Net income of $1,675 million and diluted earnings per common share of $0.96 in the first quarter of 2018 • Industry leading return on average assets of 1.50% and return on average common equity of 14.9% • Returned 68% of 1Q earnings to shareholders through dividends and share buybacks • Net interest income grew 5.5% year-over-year • Total net revenue grew 3.4% year-over year ◇  Payment services revenue grew 6.5% ◇  Trust and investment management fees increased 8.2% ◇  Deposit service charges increased 5.8% • Net interest margin of 3.13% was 7 basis points higher than 1Q17 and 2 basis points higher than 4Q17 (4 basis points excluding the impact of tax reform) • Average total loans grew 2.3% year-over-year
Return on average common equity (%)		14.9		14.7		13.3
Return on tangible common equity (%) (a)		19.3		18.8		17.2
Net interest margin (%)		3.13		3.11		3.06
Efficiency ratio (%) (a)		55.9		69.8		55.3
INCOME STATEMENT (b)	1Q18		4Q17		1Q17
Net interest income (taxable-equivalent basis)		$3,197		$3,228		$3,030
Noninterest income		$2,272		$2,370		$2,259
Net income attributable to U.S. Bancorp		$1,675		$1,682		$1,473
Diluted earnings per common share		$.96		$.97		$.82
Dividends declared per common share		$.30		$.30		$.28
BALANCE SHEET (b)	1Q18		4Q17		1Q17
Average total loans		$279,388		$279,751		$273,158
Average total deposits		$334,580		$339,162		$328,433
Net charge-off ratio		.49%		.46%		.50%
Book value per common share (period end)		$26.54		$26.34		$25.05
Basel III standardized CET1 (c)		9.0%		9.1%		9.2%
(a) See Non-GAAP Financial Measures reconciliation on pages 16-17
(b) Dollars in millions, except per share data
(c) CET1 = Common equity tier 1 capital ratio, 4Q17 and 1Q17 as if fully implemented

CEO Commentary

”We reported a solid first quarter, highlighted by a 19.3% return on average tangible common equity. We delivered solid growth in net interest income and high return fee businesses such as corporate payments, credit card, and wealth management and investment services. We continue to invest for the future and I’m pleased with the progress we are making on initiatives aimed at advancing our digital offerings and expanding our treasury management and payment services capabilities. This is a rapidly evolving banking environment and we are positioning this company to be a trusted partner to our customers, with the products and services that enable them to do what they want, when, where and how they want. As we continue on this journey, I am grateful to our customers for their trust and to our employees for their commitment to our continued success.”

— Andy Cecere, Chairman, President and CEO, U.S. Bancorp            

  In the Spotlight

Most Admired Super-Regional Bank

Fortune has named U.S. Bank a World’s Most Admired Company, naming it the world’s most admired super-regional bank for the eighth consecutive year and recognizing several of U.S. Bank’s attributes as most admired among all companies including being #1 in the categories of Management Quality and Use of Corporate Assets.

Best Employer for Diversity

Forbes magazine has named U.S. Bank a Best Employer for Diversity, including the bank in a first-ever list of top employers based on employee surveys, reputation research and public diversity leadership data.

One of the World’s Most Ethical Companies

Ethisphere Institute, the global leader in defining and advancing the standards of ethical business practices, has recognized U.S. Bank as a 2018 World’s Most Ethical Company^®. This marks the fourth consecutive year U.S. Bank has earned this recognition.

A “Best Place to Work”

The Human Rights Campaign Foundation designated U.S. Bank as a “Best Place to Work” with a high score of 100 on its LGBTQ rights-focused Corporate Equality Index. Through its index, the Foundation evaluates businesses from a diverse set of industries in regards to their policies and benefits. As of 2018, U.S. Bank has proudly earned a score of 100 percent for 11 years in a row.

        Investor contact: Jennifer Thompson, 612.303.0778  |  Media contact: Stacey Wempen, 612.303.7620

U.S. Bancorp First Quarter 2018 Results

INCOME STATEMENT HIGHLIGHTS
($ in millions, except per-share data)							Percent Change
	1Q		4Q		1Q		1Q18 vs		1Q18 vs
	2018		2017		2017		4Q17		1Q17
Net interest income		$3,168		$3,175		$2,980		(.2)		6.3
Taxable-equivalent adjustment		29		53		50		(45.3)		(42.0)
Net interest income (taxable-equivalent basis)		3,197		3,228		3,030		(1.0)		5.5
Noninterest income		2,272		2,370		2,259		(4.1)		.6
Total net revenue		5,469		5,598		5,289		(2.3)		3.4
Noninterest expense		3,055		3,899		2,909		(21.6)		5.0
Income before provision and income taxes		2,414		1,699		2,380		42.1		1.4
Provision for credit losses		341		335		345		1.8		(1.2)
Income before taxes		2,073		1,364		2,035		52.0		1.9
Income taxes and taxable-equivalent adjustment		391		(322)		549		nm		(28.8)
Net income		1,682		1,686		1,486		(.2)		13.2
Net (income) loss attributable to noncontrolling interests		(7)		(4)		(13)		(75.0)		46.2
Net income attributable to U.S. Bancorp		$1,675		$1,682		$1,473		(.4)		13.7
Net income applicable to U.S. Bancorp common shareholders		$1,597		$1,611		$1,387		(.9)		15.1
Diluted earnings per common share		$.96		$.97		$.82		(1.0)		17.1

Net income attributable to U.S. Bancorp was $1,675 million for the first quarter of 2018, 13.7 percent higher than the $1,473 million for the first quarter of 2017, and 0.4 percent lower than the $1,682 million for the fourth quarter of 2017. Excluding notable items in the fourth quarter of 2017, net income attributable to U.S. Bancorp increased 9.3 percent. Diluted earnings per common share were $0.96 in the first quarter of 2018. Results for the first quarter of 2018 included favorable tax matters partially offset by the impact of a transitional change in stock-based compensation vesting provisions, that combined, increased diluted earnings per common share by $0.01. Diluted earnings per common share were $0.97 in the fourth quarter of 2017, which included $0.09 of notable items, including a benefit of $910 million related to the estimated impact of tax reform on the Company’s tax related assets and liabilities, partially offset by a $608 million accrual for regulatory and legal matters, and $152 million, net of tax, for a charitable contribution to the U.S. Bank Foundation and a special bonus to certain eligible employees. The increase in net income year-over-year was primarily due to total net revenue growth of 3.4 percent (3.9 percent excluding the impact of tax reform related to taxable-equivalent adjustments for tax exempt assets), including an increase in net interest income of 5.5 percent, mainly a result of the impact of rising interest rates and loan growth. Noninterest income increased 0.6 percent principally due to higher payment services revenue, trust and investment management fees and deposit service charges, offset by decreases in mortgage banking revenue and commercial product revenue in addition to lower equity investment income and securities gains compared with a year ago. The increase in total net revenue was partially offset by higher noninterest expense of 5.0 percent (3.7 percent excluding the impact of stock-based compensation vesting changes), primarily due to increased compensation expense related to hiring to support business growth and compliance programs, merit increases, variable compensation related to revenue growth, increased expense from a change to a shorter vesting period for new stock-based compensation grants, and higher employee benefits expense, partially offset by lower professional services expense driven by lower consulting costs for risk and compliance programs, and other expenses.

Excluding the fourth quarter 2017 notable items, net income increased on a linked quarter basis primarily due to the impact of the lower corporate tax rate effective in 2018. Total net revenue decreased 2.3 percent and noninterest expense decreased 0.6 percent. The decrease in total net revenue reflected a decrease in net interest income of 1.0 percent, due to two fewer days in the first quarter, and a decrease in noninterest income of 4.1 percent driven by seasonally lower payment services fees and mortgage banking revenue and lower equity investment income. The decrease in noninterest expense was primarily driven by seasonally lower costs related to investments in tax-advantaged projects, mortgage banking costs and professional services expense, offset by increased compensation expense primarily related to the timing of stock-based compensation grants, and associated vesting period changes, and seasonally higher employee benefits expense.

        2

U.S. Bancorp First Quarter 2018 Results

NET INTEREST INCOME
(Taxable-equivalent basis; $ in millions)							Change
	1Q		4Q		1Q		1Q18 vs		1Q18 vs
	2018		2017		2017		4Q17		1Q17
Components of net interest income
Income on earning assets		$3,822		$3,785		$3,444		$37		$378
Expense on interest-bearing liabilities		625		557		414		68		211
Net interest income		$3,197		$3,228		$3,030		$(31)		$167
Average yields and rates paid
Earning assets yield		3.75%		3.64%		3.48%		.11%		.27%
Rate paid on interest-bearing liabilities		.81		.72		.57		.09		.24
Gross interest margin		2.94%		2.92%		2.91%		.02%		.03%
Net interest margin		3.13%		3.11%		3.06%		.02%		.07%
Average balances
Investment securities (a)		$113,493		$113,287		$110,764		$206		$2,729
Loans		279,388		279,751		273,158		(363)		6,230
Earning assets		411,849		413,510		399,281		(1,661)		12,568
Interest-bearing liabilities		311,615		308,976		296,170		2,639		15,445
(a) Excludes unrealized gain (loss)

Net interest income on a taxable-equivalent basis in the first quarter of 2018 was $3,197 million, an increase of $167 million (5.5 percent) over the first quarter of 2017. The increase was principally driven by the impact of rising interest rates and loan growth, partially offset by deposit and funding mix and the impact of tax reform which reduced the taxable-equivalent adjustment benefit related to tax exempt assets. Average earning assets were $12.6 billion (3.1 percent) higher than the first quarter of 2017, reflecting increases of $6.2 billion (2.3 percent) in average total loans, $2.7 billion (2.5 percent) in average investment securities and $4.1 billion (34.9 percent) in average other earning assets. Net interest income on a taxable-equivalent basis decreased $31 million (1.0 percent) on a linked quarter basis primarily driven by the impact of two fewer days in the first quarter, tax reform, and deposit and funding mix, partially offset by the impact of higher rates. Average earning assets were $1.7 billion (0.4 percent) lower on a linked quarter basis, reflecting decreases of $363 million (0.1 percent) in average total loans and $717 million (4.3 percent) in average other earning assets, partially offset by an increase of $206 million (0.2 percent) in average investment securities.

The net interest margin in the first quarter of 2018 was 3.13 percent, compared with 3.06 percent in the first quarter of 2017, and 3.11 percent in the fourth quarter of 2017. Excluding the impact of tax reform related to tax exempt income, the linked quarter increase in net interest margin was 4 basis points. The increase in the net interest margin year-over-year and on a linked quarter basis was primarily due to higher interest rates, partially offset by loan mix, higher funding costs and higher cash balances year-over-year. The first quarter 2018 adoption of a new accounting standard related to revenue recognition increased net interest income and the related margin compared with previously reported results. All periods have been adjusted to reflect this change.

Average investment securities in the first quarter of 2018 were $2.7 billion (2.5 percent) higher year-over-year and $206 million (0.2 percent) higher than the prior quarter. The increase year-over-year was 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.

        3

U.S. Bancorp First Quarter 2018 Results

AVERAGE LOANS
($ in millions)							Percent Change
	1Q 2018		4Q 2017		1Q 2017		1Q18 vs 4Q17		1Q18 vs 1Q17
Commercial		$91,933		$92,101		$88,284		(.2)		4.1
Lease financing		5,532		5,457		5,455		1.4		1.4
Total commercial		97,465		97,558		93,739		(.1)		4.0
Commercial mortgages		29,176		29,543		31,461		(1.2)		(7.3)
Construction and development		11,190		11,466		11,697		(2.4)		(4.3)
Total commercial real estate		40,366		41,009		43,158		(1.6)		(6.5)
Residential mortgages		60,174		59,639		57,900		.9		3.9
Credit card		21,284		21,218		20,845		.3		2.1
Retail leasing		7,982		7,982		6,469		--		23.4
Home equity and second mortgages		16,195		16,299		16,259		(.6)		(.4)
Other		32,874		32,856		31,056		.1		5.9
Total other retail		57,051		57,137		53,784		(.2)		6.1
Total loans, excluding covered loans		276,340		276,561		269,426		(.1)		2.6
Covered loans		3,048		3,190		3,732		(4.5)		(18.3)
Total loans		$279,388		$279,751		$273,158		(.1)		2.3

Average total loans were $6.2 billion (2.3 percent) higher than the first quarter of 2017. The increase was due to growth in total commercial loans (4.0 percent), residential mortgages (3.9 percent), retail leasing (23.4 percent) and other retail loans (5.9 percent). These increases were muted somewhat by a decrease in total commercial real estate loans (6.5 percent) due to disciplined underwriting and customers paying down balances. Loan growth was also muted by continued run-off of the covered loans portfolio (18.3 percent). Average total loans were $363 million (0.1 percent) lower than the fourth quarter of 2017. This decrease reflects continued pay-offs of commercial real estate loans (1.6 percent) and the run-off of covered loans (4.5 percent), offset by growth in residential mortgages (0.9 percent). At the end of the first quarter, approximately $1.5 billion of student loans were transferred from the loan portfolio to loans held for sale.

        4

U.S. Bancorp First Quarter 2018 Results

AVERAGE DEPOSITS
($ in millions)							Percent Change
	1Q 2018		4Q 2017		1Q 2017		1Q18 vs 4Q17		1Q18 vs 1Q17
Noninterest-bearing deposits		$79,482		$82,303		$80,738		(3.4)		(1.6)
Interest-bearing savings deposits
Interest checking		70,358		70,717		65,681		(.5)		7.1
Money market savings		103,367		105,348		108,759		(1.9)		(5.0)
Savings accounts		44,388		43,772		42,609		1.4		4.2
Total savings deposits		218,113		219,837		217,049		(.8)		.5
Time deposits		36,985		37,022		30,646		(.1)		20.7
Total interest-bearing deposits		255,098		256,859		247,695		(.7)		3.0
Total deposits		$334,580		$339,162		$328,433		(1.4)		1.9

Average total deposits for the first quarter of 2018 were $6.1 billion (1.9 percent) higher than the first quarter of 2017. Average noninterest-bearing deposits decreased $1.3 billion (1.6 percent) year-over-year primarily due to a decrease in Corporate and Commercial Banking, partially offset by increases in Consumer and Business Banking and Wealth Management and Investment Services. Average total savings deposits were $1.1 billion (0.5 percent) higher year-over-year driven by growth in Consumer and Business Banking, partially offset by a decrease in Corporate and Commercial Banking. Average time deposits were $6.3 billion (20.7 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 decreased $4.6 billion (1.4 percent) from the fourth quarter of 2017. On a linked quarter basis, average noninterest-bearing deposits decreased $2.8 billion (3.4 percent) across all business lines primarily due to seasonality. This compares with a decline in noninterest-bearing deposits of $4.2 billion (4.9 percent) in the first quarter of 2017 compared with the fourth quarter of 2016. Average total savings deposits decreased $1.7 billion (0.8 percent) reflecting a decline in Wealth Management and Investment Services of $2.1 billion and Corporate and Commercial Banking of $1.3 billion, partially offset by growth in average savings balances within Consumer and Business Banking. The change in Corporate and Commercial Banking balances primarily reflects seasonality, while the decline in Wealth Management and Investment Services is the result of seasonally lower trust balances, timing of escrowed balances, deployment of cash balances by investment managers and the impact of rising interest rates. Average time deposits, which are managed based on funding needs, relative pricing and liquidity characteristics, were flat on a linked quarter basis.

        5

U.S. Bancorp First Quarter 2018 Results

NONINTEREST INCOME
($ in millions)							Percent Change
	1Q 2018		4Q 2017		1Q 2017		1Q18 vs 4Q17		1Q18 vs 1Q17
Credit and debit card revenue		$324		$342		$299		(5.3)		8.4
Corporate payment products revenue		154		148		137		4.1		12.4
Merchant processing services		363		374		354		(2.9)		2.5
ATM processing services		79		80		71		(1.3)		11.3
Trust and investment management fees		398		394		368		1.0		8.2
Deposit service charges		182		194		172		(6.2)		5.8
Treasury management fees		150		152		153		(1.3)		(2.0)
Commercial products revenue		220		224		247		(1.8)		(10.9)
Mortgage banking revenue		184		202		207		(8.9)		(11.1)
Investment products fees		46		45		42		2.2		9.5
Securities gains (losses), net		5		10		29		(50.0)		(82.8)
Other		167		205		180		(18.5)		(7.2)
Total noninterest income		$2,272		$2,370		$2,259		(4.1)		.6

First quarter noninterest income of $2,272 million was $13 million (0.6 percent) higher than the first quarter of 2017 reflecting strong growth in payment services revenue, trust and investment management fees, and deposit service charges, partially offset by lower commercial products revenue and mortgage banking revenue reflecting industry trends in these revenue categories. Payment services revenue increased 6.5 percent due to stronger credit and debit card revenue of $25 million (8.4 percent) and an increase in corporate payment products revenue of $17 million (12.4 percent), and improving merchant processing revenue due to higher sales volumes. Trust and investment management fees increased $30 million (8.2 percent) due to business growth, net asset inflows and favorable market conditions. Deposit service charges increased $10 million (5.8 percent) primarily due to higher transaction volumes and account growth. These increases were partially offset by a decrease in commercial products revenue of $27 million (10.9 percent) mainly due to lower corporate bond underwriting fees and syndication fees. Mortgage banking revenue decreased $23 million (11.1 percent) primarily due to lower margin on mortgage loan sales.

Noninterest income was $98 million (4.1 percent) lower in the first quarter of 2018 compared with the fourth quarter of 2017 reflecting seasonally lower payment services revenue, mortgage banking revenue and deposit service charges. In addition, other revenue decreased $38 million (18.5 percent) primarily due to lower equity investment income. Payment services revenue decreased principally due to seasonally lower sales volume after the holidays. Credit and debit card revenue declined $18 million (5.3 percent) while merchant processing services revenue declined $11 million (2.9 percent). Corporate payments products revenue increased from the fourth quarter by 4.1 percent reflecting stronger corporate and government spending. Mortgage banking revenue decreased $18 million (8.9 percent) primarily due to lower margin on mortgage loan sales, partially offset by the valuation of mortgage servicing rights, net of hedging activities. Deposit service charges decreased $12 million (6.2 percent) due to seasonally lower transaction volumes.

        6

U.S. Bancorp First Quarter 2018 Results

NONINTEREST EXPENSE
($ in millions)							Percent Change
	1Q 2018		4Q 2017		1Q 2017		1Q18 vs 4Q17		1Q18 vs 1Q17
Compensation		$1,523		$1,499		$1,391		1.6		9.5
Employee benefits		330		291		301		13.4		9.6
Net occupancy and equipment		265		259		247		2.3		7.3
Professional services		83		114		96		(27.2)		(13.5)
Marketing and business development		97		251		90		(61.4)		7.8
Technology and communications		235		236		217		(.4)		8.3
Postage, printing and supplies		80		79		81		1.3		(1.2)
Other intangibles		39		44		44		(11.4)		(11.4)
Other		403		1,126		442		(64.2)		(8.8)
Total noninterest expense		$3,055		$3,899		$2,909		(21.6)		5.0

First quarter noninterest expense of $3,055 million was $146 million (5.0 percent) higher than the first quarter of 2017 primarily due to higher personnel expense, occupancy costs, technology investment and seasonal marketing and development expenses, partially offset by lower professional services expense and other noninterest expense. Compensation expense increased $132 million (9.5 percent) principally due to the impact of hiring to support business growth and compliance programs, merit increases, and higher variable compensation related to business production, and the impact of changes in vesting provisions related to stock-based compensation programs. Excluding the impact of the change in vesting provisions, compensation would have increased 6.9 percent from a year ago. Employee benefits expense increased $29 million (9.6 percent) primarily driven by increased medical costs and staffing. Other noninterest expense decreased $39 million (8.8 percent) due to lower mortgage servicing-related costs and lower pension-related costs as a result of contributions to the plans in 2017. Professional services expense decreased $13 million (13.5 percent) primarily due to fewer consulting services as compliance programs near maturity.

Noninterest expense decreased $844 million (21.6 percent) on a linked quarter basis primarily due to notable items recognized in the fourth quarter of 2017. Excluding the notable items, noninterest expense was $19 million (0.6 percent) lower in the first quarter of 2018 compared with the fourth quarter of 2017 primarily due to seasonally lower costs related to investments in tax-advantaged projects and professional services expense, partially offset by higher personnel expense. Compensation expense increased $82 million (5.7 percent) reflecting the impact of variable compensation including the timing of stock-based compensation grants due to the vesting change, and merit increases, as well as a seasonal increase in employee benefits expense of $48 million (17.0 percent) primarily driven by seasonally higher payroll taxes.

Provision for Income Taxes

The provision for income taxes for the first quarter of 2018 resulted in a tax rate of 18.9 percent on a taxable-equivalent basis (effective tax rate of 17.7 percent), compared with 27.0 percent (effective tax rate of 25.1 percent) in the first quarter of 2017, and a tax benefit of 23.6 percent on a taxable-equivalent basis (effective tax benefit of 28.6 percent) in the fourth quarter of 2017. The first quarter of 2018 tax rate reflected the tax reform legislation enacted during the fourth quarter of 2017, favorable settlement of tax matters, and the tax benefit of restricted stock vesting and option exercises.

        7

U.S. Bancorp First Quarter 2018 Results

ALLOWANCE FOR CREDIT LOSSES
($ in millions)	1Q				4Q				3Q				2Q				1Q
	2018		% (b)		2017		% (b)		2017		% (b)		2017		% (b)		2017		% (b)
Balance, beginning of period		$4,417				$4,407				$4,377				$4,366				$4,357
Net charge-offs
Commercial		56		.25		22		.09		79		.34		75		.33		71	.33
Lease financing		4		.29		6		.44		4		.29		3		.22		4	.30
Total commercial		60		.25		28		.11		83		.34		78		.33		75	.32
Commercial mortgages		(4)		(.06)		18		.24		(2)		(.03)		(7)		(.09)		(1)	(.01)
Construction and development		1		.04		--		--		(5)		(.17)		(2)		(.07)		(1)	(.03)
Total commercial real estate		(3)		(.03)		18		.17		(7)		(.07)		(9)		(.08)		(2)	(.02)
Residential mortgages		7		.05		10		.07		7		.05		8		.05		12	.08
Credit card		211		4.02		205		3.83		187		3.55		204		3.97		190	3.70
Retail leasing		3		.15		3		.15		2		.10		2		.11		3	.19
Home equity and second mortgages		(1)		(.03)		(2)		(.05)		(1)		(.02)		(1)		(.02)		(1)	(.02)
Other		64		.79		63		.76		59		.73		58		.75		58	.76
Total other retail		66		.47		64		.44		60		.42		59		.43		60	.45
Total net charge-offs, excluding covered loans		341		.50		325		.47		330		.48		340		.50		335	.50
Covered loans		--		--		--		--		--		--		--		--		--	--
Total net charge-offs		341		.49		325		.46		330		.47		340		.49		335	.50
Provision for credit losses		341				335				360				350				345
Other changes (a)		--				--				--				1				(1)
Balance, end of period		$4,417				$4,417				$4,407				$4,377				$4,366
Components
Allowance for loan losses		$3,918				$3,925				$3,908				$3,856				$3,816
Liability for unfunded credit commitments		499				492				499				521				550
Total allowance for credit losses		$4,417				$4,417				$4,407				$4,377				$4,366
Gross charge-offs		$453				$464				$433				$437				$417
Gross recoveries		$112				$139				$103				$97				$82
Allowance for credit losses as a percentage of
Period-end loans, excluding covered loans		1.60				1.58				1.59				1.59				1.61
Nonperforming loans, excluding covered loans		431				438				425				385				338
Nonperforming assets, excluding covered assets		373				374				359				331				296
Period-end loans		1.59				1.58				1.58				1.58				1.60
Nonperforming loans		431				438				426				383				338
Nonperforming assets		367				368				352				324				292
(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

        8

U.S. Bancorp First Quarter 2018 Results

The Company’s provision for credit losses for the first quarter of 2018 was $341 million, which was $6 million (1.8 percent) higher than the prior quarter and $4 million (1.2 percent) lower than the first quarter of 2017. Credit quality was relatively stable compared with the fourth quarter of 2017.

Total net charge-offs in the first quarter of 2018 were $341 million, compared with $325 million in the fourth quarter of 2017, and $335 million in the first quarter of 2017. Net charge-offs increased $16 million (4.9 percent) compared with the fourth quarter of 2017 mainly due to higher total commercial loan net charge-offs driven by lower recoveries, partially offset by lower total commercial real estate net charge-offs. Net charge-offs increased $6 million (1.8 percent) compared with the first quarter of 2017 primarily due to higher credit card loan net charge-offs, partially offset by lower total commercial loan net charge-offs driven by higher recoveries. The net charge-off ratio was 0.49 percent in the first quarter of 2018, compared with 0.46 percent in the fourth quarter of 2017 and 0.50 percent in the first quarter of 2017.

The allowance for credit losses was $4,417 million at March 31, 2018, and at December 31, 2017, compared with $4,366 million at March 31, 2017. The ratio of the allowance for credit losses to period-end loans was 1.59 percent at March 31, 2018, compared with 1.58 percent at December 31, 2017, and 1.60 percent at March 31, 2017. The ratio of the allowance for credit losses to nonperforming loans was 431 percent at March 31, 2018, compared with 438 percent at December 31, 2017, and 338 percent at March 31, 2017.

Nonperforming assets were $1,204 million at March 31, 2018, compared with $1,200 million at December 31, 2017, and $1,495 million at March 31, 2017. The ratio of nonperforming assets to loans and other real estate was 0.43 percent at March 31, 2018, and at December 31, 2017, compared with 0.55 percent at March 31, 2017. The year-over-year decrease in nonperforming assets was driven by improvements in nonperforming total commercial loans, residential mortgages and other real estate owned, partially offset by increases in nonperforming other retail loans and total commercial real estate loans. Accruing loans 90 days or more past due were $702 million ($566 million excluding covered loans) at March 31, 2018, compared with $720 million ($572 million excluding covered loans) at December 31, 2017, and $718 million ($524 million excluding covered loans) at March 31, 2017.

DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES
(Percent)	Mar 31 2018		Dec 31 2017		Sep 30 2017		Jun 30 2017		Mar 31 2017
Delinquent loan ratios - 90 days or more past due excluding nonperforming loans
Commercial		.06		.06		.05		.05		.06
Commercial real estate		.01		.01		.01		--		.01
Residential mortgages		.22		.22		.18		.20		.24
Credit card		1.29		1.28		1.20		1.10		1.23
Other retail		.18		.17		.15		.14		.14
Total loans, excluding covered loans		.21		.21		.18		.17		.19
Covered loans		4.57		4.74		4.66		4.71		5.34
Total loans		.25		.26		.23		.23		.26
Delinquent loan ratios - 90 days or more past due including nonperforming loans
Commercial		.37		.31		.33		.39		.52
Commercial real estate		.31		.37		.30		.29		.27
Residential mortgages		.93		.96		.98		1.10		1.23
Credit card		1.29		1.28		1.20		1.10		1.24
Other retail		.48		.46		.43		.42		.43
Total loans, excluding covered loans		.58		.57		.55		.59		.67
Covered loans		4.77		4.93		4.84		5.06		5.53
Total loans		.62		.62		.60		.64		.73

        9

U.S. Bancorp First Quarter 2018 Results

ASSET QUALITY (a)
($ in millions)
	Mar 31 2018		Dec 31 2017		Sep 30 2017		Jun 30 2017		Mar 31 2017
Nonperforming loans
Commercial		$274		$225		$231		$283		$397
Lease financing		27		24		38		39		42
Total commercial		301		249		269		322		439
Commercial mortgages		86		108		89		84		74
Construction and development		33		34		33		35		36
Total commercial real estate		119		142		122		119		110
Residential mortgages		430		442		474		530		575
Credit card		--		1		1		1		2
Other retail		168		168		163		158		157
Total nonperforming loans, excluding covered loans		1,018		1,002		1,029		1,130		1,283
Covered loans		6		6		6		12		7
Total nonperforming loans		1,024		1,008		1,035		1,142		1,290
Other real estate		124		141		164		157		155
Covered other real estate		20		21		26		25		22
Other nonperforming assets		36		30		26		25		28
Total nonperforming assets		$1,204		$1,200		$1,251		$1,349		$1,495
Total nonperforming assets, excluding covered assets		$1,178		$1,173		$1,219		$1,312		$1,466
Accruing loans 90 days or more past due, excluding covered loans		$566		$572		$497		$477		$524
Accruing loans 90 days or more past due		$702		$720		$649		$639		$718
Performing restructured loans, excluding GNMA and covered loans		$2,190		$2,306		$2,419		$2,473		$2,478
Performing restructured GNMA and covered loans		$1,598		$1,713		$1,600		$1,803		$1,746
Nonperforming assets to loans plus ORE, excluding covered assets (%)		.43		.42		.44		.48		.54
Nonperforming assets to loans plus ORE (%)		.43		.43		.45		.49		.55
(a) Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due

        10

U.S. Bancorp First Quarter 2018 Results

COMMON SHARES
(Millions)	1Q 2018		4Q 2017		3Q 2017		2Q 2017		1Q 2017
Beginning shares outstanding		1,656		1,667		1,679		1,692		1,697
Shares issued for stock incentive plans, acquisitions and other corporate purposes		4		1		--		1		6
Shares repurchased		(11)		(12)		(12)		(14)		(11)
Ending shares outstanding		1,649		1,656		1,667		1,679		1,692

CAPITAL POSITION
($ in millions)	Mar 31 2018			Dec 31 2017			Sep 30 2017			Jun 30 2017			Mar 31 2017
Total U.S. Bancorp shareholders’ equity	$	49,187		$	49,040		$	48,723		$	48,320		$	47,798
Basel III Standardized Approach (a)
Common equity tier 1 capital	$	33,539		$	34,369		$	34,876		$	34,408		$	33,847
Tier 1 capital		38,991			39,806			40,411			39,943			39,374
Total risk-based capital		46,640			47,503			48,104			47,824			47,279
Fully implemented common equity tier 1 capital ratio (a)		9.0	%		9.1	% (b)		9.4	% (b)		9.3	% (b)		9.2	% (b)
Tier 1 capital ratio		10.4			10.8			11.1			11.1			11.0
Total risk-based capital ratio		12.5			12.9			13.2			13.2			13.3
Leverage ratio		8.8			8.9			9.1			9.1			9.1
Basel III Advanced Approaches (a)
Fully implemented common equity tier 1 capital ratio (a)		11.5			11.6	(b)		11.8	(b)		11.7	(b)		11.5	(b)
Tangible common equity to tangible assets (b)		7.7			7.6			7.7			7.5			7.6
Tangible common equity to risk-weighted assets (b)		9.3			9.4			9.5			9.4			9.4
Common equity tier 1 capital ratio calculated under the transitional standardized approach (a)		--			9.3			9.6			9.5			9.5
Common equity tier 1 capital ratio calculated under the transitional advanced approaches (a)		--			12.0			12.1			12.0			11.8
(a) Beginning January 1, 2018, the regulatory capital requirements fully reflect implementation of Basel III. Prior to 2018, the Company’s capital ratios reflected certain transitional adjustments. 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. (b) See Non-GAAP Financial Measures reconciliation on page 16

Total U.S. Bancorp shareholders’ equity was $49.2 billion at March 31, 2018, compared with $49.0 billion at December 31, 2017, and $47.8 billion at March 31, 2017. During the first quarter, the Company returned 68 percent of earnings to shareholders through dividends and share buybacks.

All regulatory ratios continue to be in excess of “well-capitalized” requirements. The common equity tier 1 capital to risk-weighted assets ratio using the Basel III standardized approach was 9.0 percent at March 31, 2018, compared with 9.3 percent at December 31, 2017, and 9.5 percent at March 31, 2017. The common equity tier 1 capital to risk-weighted assets ratio using the Basel III advanced approaches method was 11.5 percent at March 31, 2018, compared with 12.0 percent at December 31, 2017, and 11.8 percent at March 31, 2017.

        11

U.S. Bancorp First Quarter 2018 Results

  Investor Conference Call

On Wednesday, April 18, 2018, at 8:00 a.m. CDT, Andy Cecere, Chairman, 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, visit U.S. Bancorp’s website at usbank.com and click on “About US”, “Investor Relations” and “Webcasts & Presentations.” 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 8771339. For those unable to participate during the live call, a recording will be available at approximately 11:00 a.m. CDT on Wednesday, April 18 and will be accessible until Wednesday, April 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 8771339.

  About U.S. Bancorp

Minneapolis-based U.S. Bancorp (NYSE: USB), with $460 billion in assets as of March 31, 2018, is the parent company of U.S. Bank National Association, the fifth largest commercial bank in the United States. The Company operates 3,054 banking offices in 25 states and 4,729 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.

  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 its investment securities; 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 could 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, 2017, on file with the Securities and Exchange Commission, including the sections entitled “Corporate Risk Profile” and “Risk Factors” 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.

        12

U.S. Bancorp First Quarter 2018 Results

  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

• Return on tangible common equity

These capital measures are viewed by management as useful additional methods of evaluating the Company’s utilization of its capital held and 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 capital measures are not defined in generally accepted accounting principles (“GAAP”) or are not defined in federal banking regulations. As a result, these capital measures disclosed by the Company may be considered non-GAAP financial measures. In addition, certain capital measures related to prior periods are presented on the same basis as those in the current period. The effective capital ratios defined by banking regulations for these periods were subject to certain transitional provisions. Management believes this information helps investors assess trends in the Company’s capital adequacy.

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.

        13

CONSOLIDATED STATEMENT OF INCOME
	Three Months Ended
(Dollars and Shares in Millions, Except Per Share Data)	March 31,
(Unaudited)	2018		2017
Interest Income
Loans		$3,095		$2,790
Loans held for sale		33		35
Investment securities		613		530
Other interest income		50		38
Total interest income		3,791		3,393
Interest Expense
Deposits		345		199
Short-term borrowings		75		24
Long-term debt		203		190
Total interest expense		623		413
Net interest income		3,168		2,980
Provision for credit losses		341		345
Net interest income after provision for credit losses		2,827		2,635
Noninterest Income
Credit and debit card revenue		324		299
Corporate payment products revenue		154		137
Merchant processing services		363		354
ATM processing services		79		71
Trust and investment management fees		398		368
Deposit service charges		182		172
Treasury management fees		150		153
Commercial products revenue		220		247
Mortgage banking revenue		184		207
Investment products fees		46		42
Securities gains (losses), net		5		29
Other		167		180
Total noninterest income		2,272		2,259
Noninterest Expense
Compensation		1,523		1,391
Employee benefits		330		301
Net occupancy and equipment		265		247
Professional services		83		96
Marketing and business development		97		90
Technology and communications		235		217
Postage, printing and supplies		80		81
Other intangibles		39		44
Other		403		442
Total noninterest expense		3,055		2,909
Income before income taxes		2,044		1,985
Applicable income taxes		362		499
Net income		1,682		1,486
Net (income) loss attributable to noncontrolling interests		(7)		(13)
Net income attributable to U.S. Bancorp		$1,675		$1,473
Net income applicable to U.S. Bancorp common shareholders		$1,597		$1,387
Earnings per common share		$.97		$.82
Diluted earnings per common share		$.96		$.82
Dividends declared per common share		$.30		$.28
Average common shares outstanding		1,652		1,694
Average diluted common shares outstanding		1,657		1,701

        14

CONSOLIDATED ENDING BALANCE SHEET
	March 31,			December 31,			March 31,
(Dollars in Millions)	2018			2017			2017
Assets		(Unaudited	)					(Unaudited	)
Cash and due from banks		$19,246			$19,505			$20,319
Investment securities
Held-to-maturity		44,612			44,362			43,393
Available-for-sale		67,125			68,137			67,031
Loans held for sale		4,777			3,554			2,738
Loans
Commercial		98,097			97,561			94,491
Commercial real estate		40,140			40,463			42,832
Residential mortgages		60,477			59,783			58,266
Credit card		20,901			22,180			20,387
Other retail		55,317			57,324			53,966
Total loans, excluding covered loans		274,932			277,311			269,942
Covered loans		2,979			3,121			3,635
Total loans		277,911			280,432			273,577
Less allowance for loan losses		(3,918	)		(3,925	)		(3,816	)
Net loans		273,993			276,507			269,761
Premises and equipment		2,441			2,432			2,432
Goodwill		9,440			9,434			9,348
Other intangible assets		3,388			3,228			3,313
Other assets		35,097			34,881			31,187
Total assets		$460,119			$462,040			$449,522
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing		$82,211			$87,557			$85,222
Interest-bearing		262,315			259,658			251,651
Total deposits		344,526			347,215			336,873
Short-term borrowings		17,703			16,651			12,183
Long-term debt		33,201			32,259			35,948
Other liabilities		14,877			16,249			16,085
Total liabilities		410,307			412,374			401,089
Shareholders’ equity
Preferred stock		5,419			5,419			5,419
Common stock		21			21			21
Capital surplus		8,438			8,464			8,388
Retained earnings		55,549			54,142			51,069
Less treasury stock		(18,047	)		(17,602	)		(15,660	)
Accumulated other comprehensive income (loss)		(2,193	)		(1,404	)		(1,439	)
Total U.S. Bancorp shareholders’ equity		49,187			49,040			47,798
Noncontrolling interests		625			626			635
Total equity		49,812			49,666			48,433
Total liabilities and equity		$460,119			$462,040			$449,522

        15

NON-GAAP FINANCIAL MEASURES
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in Millions, Unaudited)	2018			2017			2017			2017			2017
Total equity		$49,812			$49,666			$49,351			$48,949			$48,433
Preferred stock		(5,419)			(5,419)			(5,419)			(5,419)			(5,419)
Noncontrolling interests		(625)			(626)			(628)			(629)			(635)
Goodwill (net of deferred tax liability) (1)		(8,609)			(8,613)			(8,141)			(8,181)			(8,186)
Intangible assets, other than mortgage servicing rights		(608)			(583)			(595)			(634)			(671)
Tangible common equity (a)		34,551			34,425			34,568			34,086			33,522
Total assets		460,119			462,040			459,227			463,844			449,522
Goodwill (net of deferred tax liability) (1)		(8,609)			(8,613)			(8,141)			(8,181)			(8,186)
Intangible assets, other than mortgage servicing rights		(608)			(583)			(595)			(634)			(671)
Tangible assets (b)		450,902			452,844			450,491			455,029			440,665
Risk-weighted assets, determined in accordance with the Basel III standardized approach (c)		373,141	*		367,771			363,957			361,164			356,373
Tangible common equity (as calculated above)					34,425			34,568			34,086			33,522
Adjustments (2)					(550)			(52)			(51)			(136)
Common equity tier 1 capital estimated for the Basel III fully implemented standardized and advanced approaches (d)					33,875			34,516			34,035			33,386
Risk-weighted assets, determined in accordance with prescribed transitional standardized approach regulatory requirements					367,771			363,957			361,164			356,373
Adjustments (3)					4,473			3,907			3,967			4,731
Risk-weighted assets estimated for the Basel III fully implemented standardized approach (e)					372,244			367,864			365,131			361,104
Risk-weighted assets, determined in accordance with prescribed transitional advanced approaches regulatory requirements					287,211			287,800			287,124			285,963
Adjustments (4)					4,769			4,164			4,231			5,046
Risk-weighted assets estimated for the Basel III fully implemented advanced approaches (f)					291,980			291,964			291,355			291,009
Ratios *
Tangible common equity to tangible assets (a)/(b)		7.7	%		7.6	%		7.7	%		7.5	%		7.6	%
Tangible common equity to risk-weighted assets (a)/(c)		9.3			9.4			9.5			9.4			9.4
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach (d)/(e)					9.1			9.4			9.3			9.2
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches (d)/(f)					11.6			11.8			11.7			11.5
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2018			2017			2017			2017			2017
Net income applicable to U.S. Bancorp common shareholders		$1,597			$1,611			$1,485			$1,430			$1,387
Intangibles amortization (net-of-tax)		31			28			29			28			29
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization		1,628			1,639			1,514			1,458			1,416
Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization (g)		6,602			6,503			6,007			5,848			5,743
Average total equity		49,450			49,461			49,447			48,909			48,558
Less: Average preferred stock		5,419			5,419			5,419			5,419			5,706
Less: Average noncontrolling interests		625			627			628			636			635
Less: Average goodwill (net of deferred tax liability) (1)		8,627			8,154			8,153			8,160			8,175
Less: Average intangible assets, other than mortgage servicing rights		603			591			615			650			691
Average U.S. Bancorp common shareholders’ equity, excluding intangible assets (h)		34,176			34,670			34,632			34,044			33,351
Return on tangible common equity (g)/(h)		19.3	%		18.8	%		17.3	%		17.2	%		17.2	%

 *  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.

        16

NON-GAAP FINANCIAL MEASURES
	Three Months Ended
(Dollars in Millions, Unaudited)		March 31,   2018		December 31,   2017		September 30,   2017		June 30,   2017		March 31,   2017
Net interest income		$3,168		$3,175		$3,176		$3,049		$2,980
Taxable-equivalent adjustment (1)		29		53		51		51		50
Net interest income, on a taxable-equivalent basis		3,197		3,228		3,227		3,100		3,030
Net interest income, on a taxable-equivalent basis (as calculated above)		3,197		3,228		3,227		3,100		3,030
Noninterest income		2,272		2,370		2,340		2,348		2,259
Less: Securities gains (losses), net		5		10		9		9		29
Total net revenue, excluding net securities gains (losses) (a)		5,464		5,588		5,558		5,439		5,260
Noninterest expense (b)		3,055		3,899		2,998		2,984		2,909
Less: Intangible amortization		39		44		44		43		44
Noninterest expense, excluding intangible amortization (c)		3,016		3,855		2,954		2,941		2,865
Efficiency ratio (b)/(a)		55.9	%	69.8	%	53.9	%	54.9	%	55.3	%
Tangible efficiency ratio (c)/(a)		55.2		69.0		53.1		54.1		54.5

(1) Interest and rates are presented on a fully taxable-equivalent basis based on a federal income tax rate of 21 percent for 2018 and 35 percent for 2017.

        17

LINE OF BUSINESS FINANCIAL PERFORMANCE (a)
($ in millions)	Net Income Attributable
	to U.S. Bancorp						Percent Change						1Q 2018
Business Line	1Q 2018		4Q 2017		1Q 2017		1Q18 vs 4Q17			1Q18 vs 1Q17			Earnings Composition
Corporate and Commercial
Banking		$384		$366		$334		4.9			15.0			23	%
Consumer and Business
Banking		553		459		422		20.5			31.0			33
Wealth Management and
Investment Services		217		177		156		22.6			39.1			13
Payment Services		343		315		295		8.9			16.3			20
Treasury and Corporate
Support		178		365		266		(51.2	)		(33.1	)		11
Consolidated Company		$1,675		$1,682		$1,473		(.4	)		13.7			100	%
(a) preliminary data

Lines of Business

The Company’s major lines of business are Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment 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 2018, certain organization and methodology changes were made and, accordingly, prior period results were restated and presented on a comparable basis.

Income taxes are assessed to each line of business at a managerial rate of 25 percent starting in the first quarter of 2018 compared with a managerial rate of 36.4 percent during 2017 due to the tax reform legislation enacted during the fourth quarter of 2017. Stock-based compensation is charged to each line of business through net shared services and includes the impact of changes in vesting provisions.

        2

CORPORATE AND COMMERCIAL BANKING (a)
($ in millions)							Percent Change
	1Q		4Q		1Q		1Q18 vs			1Q18 vs
	2018		2017		2017		4Q17			1Q17
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$724		$736		$712		(1.6	)		1.7
Noninterest income		207		206		247		.5			(16.2	)
Securities gains (losses), net		--		--		(3)		--			nm
Total net revenue		931		942		956		(1.2	)		(2.6	)
Noninterest expense		404		389		394		3.9			2.5
Other intangibles		1		1		1		--			--
Total noninterest expense		405		390		395		3.8			2.5
Income before provision and taxes		526		552		561		(4.7	)		(6.2	)
Provision for credit losses		14		(23)		36		nm			(61.1	)
Income before income taxes		512		575		525		(11.0	)		(2.5	)
Income taxes and taxable-equivalent adjustment		128		209		191		(38.8	)		(33.0	)
Net income		384		366		334		4.9			15.0
Net (income) loss attributable to noncontrolling interests		--		--		--		--			--
Net income attributable to U.S. Bancorp		$384		$366		$334		4.9			15.0
Average Balance Sheet Data
Loans		$93,951		$94,047		$93,727		(.1	)		.2
Other earning assets		2,858		2,988		2,882		(4.4	)		(.8	)
Goodwill		1,647		1,647		1,647		--			--
Other intangible assets		12		12		15		--			(20.0	)
Assets		102,642		102,613		102,309		--			.3
Noninterest-bearing deposits		34,388		35,332		36,939		(2.7	)		(6.9	)
Interest-bearing deposits		69,954		73,506		70,560		(4.8	)		(.9	)
Total deposits		104,342		108,838		107,499		(4.1	)		(2.9	)
Total U.S. Bancorp shareholders’ equity		10,417		9,930		9,680		4.9			7.6
(a) preliminary data

Corporate and Commercial Banking 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.

Corporate and Commercial Banking contributed $384 million of the Company’s net income in the first quarter of 2018, compared with $334 million in the first quarter of 2017. Total net revenue decreased $25 million (2.6 percent) due to a $37 million (15.2 percent) decrease in total noninterest income, partially offset by a $12 million (1.7 percent) increase in net interest income. Net interest income grew year-over-year primarily due to the impact of rising rates on the margin benefit from deposits, partially offset by lower rates on loans, reflecting a competitive marketplace, and lower noninterest-bearing deposits. Total noninterest income decreased year-over-year primarily due to stronger capital markets volume in the first quarter of 2017 and lower loan fees in the current year reflecting industry trends in these revenue categories. Total noninterest expense was $10 million (2.5 percent) higher compared with a year ago due to an increase in net shared services expense allocated to manage the business, partially offset by lower variable compensation related to business production. The provision for credit losses decreased $22 million (61.1 percent) primarily due to lower net charge-offs.

        3

CONSUMER AND BUSINESS BANKING (a)
($ in millions)							Percent Change
	1Q		4Q		1Q		1Q18 vs			1Q18 vs
	2018		2017		2017		4Q17			1Q17
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$1,524		$1,514		$1,418		.7		7.5
Noninterest income		568		591		571		(3.9	)	(.5)
Securities gains (losses), net		--		--		--		--		--
Total net revenue		2,092		2,105		1,989		(.6	)	5.2
Noninterest expense		1,291		1,274		1,253		1.3		3.0
Other intangibles		7		8		7		(12.5	)	--
Total noninterest expense		1,298		1,282		1,260		1.2		3.0
Income before provision and taxes		794		823		729		(3.5	)	8.9
Provision for credit losses		56		102		65		(45.1	)	(13.8)
Income before income taxes		738		721		664		2.4		11.1
Income taxes and taxable-equivalent adjustment		185		262		242		(29.4	)	(23.6)
Net income		553		459		422		20.5		31.0
Net (income) loss attributable to noncontrolling interests		--		--		--		--		--
Net income attributable to U.S. Bancorp		$553		$459		$422		20.5		31.0
Average Balance Sheet Data
Loans		$143,179		$143,395		$139,107		(.2	)	2.9
Other earning assets		3,409		4,250		4,022		(19.8	)	(15.2)
Goodwill		3,681		3,681		3,681		--		--
Other intangible assets		2,871		2,760		2,768		4.0		3.7
Assets		157,544		158,625		153,647		(.7	)	2.5
Noninterest-bearing deposits		27,381		28,936		26,965		(5.4	)	1.5
Interest-bearing deposits		123,519		122,029		119,355		1.2		3.5
Total deposits		150,900		150,965		146,320		--		3.1
Total U.S. Bancorp shareholders’ equity		12,219		11,424		11,522		7.0		6.0
(a) preliminary data

Consumer and 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 Business Banking contributed $553 million of the Company’s net income in the first quarter of 2018, compared with $422 million in the first quarter of 2017. Total net revenue increased $103 million (5.2 percent) due to a $106 million (7.5 percent) increase in net interest income, partially offset by a $3 million (0.5 percent) decrease in total noninterest income. Net interest income increased primarily due to the impact of rising rates on the margin benefit from deposits along with growth in average loan and deposit balances, partially offset by lower rates on loans. Total noninterest income decreased slightly year-over-year principally driven by lower mortgage banking revenue, in line with industry trends, due to lower margin on mortgage loan sales, partially offset by the valuation of mortgage servicing rights, net of hedging activities. Partially offsetting the impact of lower mortgage banking revenue were higher deposit service charges reflecting higher transaction volumes and account growth, and higher ATM processing services fees. Total noninterest expense in the first quarter of 2018 increased $38 million (3.0 percent) primarily due to higher net shared services expense allocated to manage the business, reflecting the impact of investments supporting business growth, and higher personnel expense, reflecting the impact of merit increases and variable compensation related to business production, partially offset by lower mortgage banking costs. The provision for credit losses decreased $9 million (13.8 percent) reflecting a favorable change in the reserve allocation as well as lower net charge-offs.

        4

WEALTH MANAGEMENT AND INVESTMENT SERVICES (a)
($ in millions)								Percent Change
	1Q		4Q			1Q		1Q18 vs			1Q18 vs
	2018		2017			2017		4Q17			1Q17
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$284		$272			$250		4.4		13.6
Noninterest income		432		423			399		2.1		8.3
Securities gains (losses), net		--		--			--		--		--
Total net revenue		716		695			649		3.0		10.3
Noninterest expense		421		413			398		1.9		5.8
Other intangibles		4		5			5		(20.0	)	(20.0)
Total noninterest expense		425		418			403		1.7		5.5
Income before provision and taxes		291		277			246		5.1		18.3
Provision for credit losses		1		(2	)		1		nm		--
Income before income taxes		290		279			245		3.9		18.4
Income taxes and taxable-equivalent adjustment		73		102			89		(28.4	)	(18.0)
Net income		217		177			156		22.6		39.1
Net (income) loss attributable to noncontrolling interests		--		--			--		--		--
Net income attributable to U.S. Bancorp		$217		$177			$156		22.6		39.1
Average Balance Sheet Data
Loans		$8,882		$8,805			$7,966		.9		11.5
Other earning assets		164		168			153		(2.4	)	7.2
Goodwill		1,570		1,569			1,566		.1		.3
Other intangible assets		70		74			87		(5.4	)	(19.5)
Assets		11,875		11,982			11,446		(.9	)	3.7
Noninterest-bearing deposits		14,329		14,765			13,841		(3.0	)	3.5
Interest-bearing deposits		56,780		58,622			56,987		(3.1	)	(.4)
Total deposits		71,109		73,387			70,828		(3.1	)	.4
Total U.S. Bancorp shareholders’ equity		2,399		2,346			2,403		2.3		(.2)
(a) preliminary data

Wealth Management and Investment 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 Investment Services contributed $217 million of the Company’s net income in the first quarter of 2018, compared with $156 million in the first quarter of 2017. Total net revenue increased $67 million (10.3 percent) year-over-year driven by an increase in net interest income of $34 million (13.6 percent) and a $33 million (8.3 percent) increase in total noninterest income. Net interest income increased year-over-year primarily due to the impact of rising rates on the margin benefit from deposits along with growth in average loan and deposit balances, partially offset by lower rates on loans. Total noninterest income increased year-over-year principally due to business growth, net asset inflows and favorable market conditions. Total noninterest expense increased $22 million (5.5 percent) primarily as a result of higher net shared services expense allocated to manage the business, reflecting the impact of implementation costs of capital investments to support business growth, and higher compensation expense, reflecting higher staffing along with merit increases and variable compensation related to business production, partially offset by lower professional services expense. The provision for credit losses was flat compared with the prior year quarter.

        5

PAYMENT SERVICES (a)
($ in millions)							Percent Change
	1Q   2018		4Q 2017		1Q   2017		1Q18 vs 4Q17			1Q18 vs 1Q17
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$612		$611		$595		.2			2.9
Noninterest income		847		869		798		(2.5	)		6.1
Securities gains (losses), net		--		--		--		--			--
Total net revenue		1,459		1,480		1,393		(1.4	)		4.7
Noninterest expense		702		667		646		5.2			8.7
Other intangibles		27		30		31		(10.0	)		(12.9	)
Total noninterest expense		729		697		677		4.6			7.7
Income before provision and taxes		730		783		716		(6.8	)		2.0
Provision for credit losses		272		288		241		(5.6	)		12.9
Income before income taxes		458		495		475		(7.5	)		(3.6	)
Income taxes and
taxable-equivalent adjustment		115		180		173		(36.1	)		(33.5	)
Net income		343		315		302		8.9			13.6
Net (income) loss attributable to noncontrolling interests		--		--		(7)		--			nm
Net income attributable to U.S. Bancorp		$343		$315		$295		8.9			16.3
Average Balance Sheet Data
Loans		$30,062		$30,157		$28,936		(.3	)		3.9
Other earning assets		276		246		257		12.2			7.4
Goodwill		2,542		2,482		2,453		2.4			3.6
Other intangible assets		396		372		437		6.5			(9.4	)
Assets		36,173		35,704		34,566		1.3			4.6
Noninterest-bearing deposits		1,127		1,078		1,024		4.5			10.1
Interest-bearing deposits		106		106		100		--			6.0
Total deposits		1,233		1,184		1,124		4.1			9.7
Total U.S. Bancorp shareholders’ equity		6,622		6,249		6,405		6.0			3.4
(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 $343 million of the Company’s net income in the first quarter of 2018, compared with $295 million in the first quarter of 2017. Total net revenue increased $66 million (4.7 percent) due to a $17 million (2.9 percent) increase in net interest income and a $49 million (6.1 percent) increase in total noninterest income. Net interest income increased year-over-year primarily due to higher loan volumes. Total noninterest income increased year-over-year primarily due to higher credit and debit card revenue and corporate payment products revenue driven by higher sales volumes. Total noninterest expense increased $52 million (7.7 percent) over the first quarter of 2017 principally due to higher net shared services expense allocated to manage the business, reflecting the impact of investments supporting business growth and personnel expense, and higher equipment costs. The provision for credit losses increased $31 million (12.9 percent) primarily due to higher net charge-offs.

        6

TREASURY AND CORPORATE SUPPORT (a)
($ in millions)							Percent Change
	1Q		4Q		1Q		1Q18 vs			1Q18 vs
	2018		2017		2017		4Q17			1Q17
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$53		$95		$55		(44.2	)		(3.6	)
Noninterest income		213		271		215		(21.4	)		(.9	)
Securities gains (losses), net		5		10		32		(50.0	)		(84.4	)
Total net revenue		271		376		302		(27.9	)		(10.3	)
Noninterest expense		198		1,112		174		(82.2	)		13.8
Other intangibles		--		--		--		--			--
Total noninterest expense		198		1,112		174		(82.2	)		13.8
Income (loss) before provision and taxes		73		(736)		128		nm			(43.0	)
Provision for credit losses		(2)		(30)		2		93.3			nm
Income (loss) before income taxes		75		(706)		126		nm			(40.5	)
Income taxes and taxable-equivalent adjustment		(110)		(1,075)		(146)		89.8			24.7
Net income		185		369		272		(49.9	)		(32.0	)
Net (income) loss attributable to noncontrolling interests		(7)		(4)		(6)		(75.0	)		(16.7	)
Net income attributable to U.S. Bancorp		$178		$365		$266		(51.2	)		(33.1	)
Average Balance Sheet Data
Loans		$3,314		$3,347		$3,422		(1.0	)		(3.2	)
Other earning assets		125,754		126,107		118,809		(.3	)		5.8
Goodwill		--		--		--		--			--
Other intangible assets		--		--		--		--			--
Assets		146,054		147,174		139,343		(.8	)		4.8
Noninterest-bearing deposits		2,257		2,192		1,969		3.0			14.6
Interest-bearing deposits		4,739		2,596		693		82.6			nm
Total deposits		6,996		4,788		2,662		46.1			nm
Total U.S. Bancorp shareholders’ equity		17,168		18,885		17,913		(9.1	)		(4.2	)
(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 $178 million in the first quarter of 2018, compared with $266 million in the first quarter of 2017. Total net revenue decreased $31 million (10.3 percent) due to a decrease of $29 million (11.7 percent) in total noninterest income primarily due to lower income from equity investments and security gains compared with a year ago. Total noninterest expense increased $24 million (13.8 percent) year-over-year principally due to higher personnel expense, reflecting the impact of increased staffing and merit increases including variable compensation related to the impact of changes in vesting provisions related to stock-based compensation programs, as well as higher net occupancy and equipment costs. These increases were mostly offset by a favorable change in net shared services expense allocated to manage the business. The provision for credit losses was $4 million lower year-over-year due to a favorable change in the reserve allocation.

        7

EX-99.2

U.S. Bancorp 1Q18 Earnings Conference Call April 18, 2018 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 its investment securities; 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, 2017, 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.

1Q18 Highlights * Taxable-equivalent basis; see slide 27 for calculation

Performance Ratios Efficiency Ratio* & Net Interest Margin** * Non-GAAP; see slides 26 and 27 for calculations ** Taxable-equivalent basis Return on Average Common Equity Return on Tangible Common Equity* Return on Average Assets

Average Loans -0.1% linked quarter +2.3% year-over-year Average total loans declined slightly linked quarter, reflecting continued paydowns of commercial and commercial real estate loans and runoff of the covered loan portfolio. Year-over-year growth in total commercial loans, residential mortgages, retail leasing and other retail loans was partially offset by a decrease in total commercial real estate loans. $ in billions

Average Deposits -1.4% linked quarter +1.9% year-over-year $ in billions Rates are presented on a fully taxable-equivalent basis based on a federal income tax rate of 21 percent for 2018 and 35 percent for 2017 Interest-bearing Deposits Average noninterest-bearing deposits decreased 3.4% linked quarter, driven by seasonal declines across all business lines. Average noninterest-bearing deposits decreased 1.6% year-over-year, primarily due to a decrease in Corporate and Commercial Banking balances.

Credit Quality $ in millions NCO Ratio +3 bps QoQ -1 bp YoY NPAs +0.3% QoQ -19.5% YoY

Earnings Summary

1Q18 Impacts of New Accounting Standards and Tax Reform * Tax reform legislation enacted in late 4Q17 resulted in a reduction of the taxable-equivalent adjustment benefit related to tax exempt assets in 1Q18

Net Interest Income Linked Quarter The decline in net interest income reflects the impact of two fewer days in the quarter, tax reform and deposit and funding mix, partially offset by the impact of higher rates. Excluding the impact of tax reform related to tax exempt income, the net interest margin increased 4 basis points. Year-over-Year Net interest income growth was driven primarily by the impact of rising interest rates and loan growth. $ in millions Taxable-equivalent basis -1.0% linked quarter +5.5% 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 $2,259 $2,370 $2,272 Linked Quarter The decline in noninterest income reflects seasonally lower payment services revenue, mortgage banking revenue and deposit services charges. Year-over-Year Solid growth in payment services revenue was driven by stronger credit and debit card revenue, an increase in corporate payment products revenue and improving merchant processing revenue due to higher sales volumes. Higher trust and investment management fees were driven by business growth, net asset inflows and favorable market conditions. Deposit service charges increased primarily due to higher transaction volumes and account growth. Lower commercial products revenue and mortgage banking revenue reflect industry trends. -4.1% linked quarter +0.6% year-over-year

Noninterest Expense Linked Quarter Higher compensation expense was partially offset by seasonally lower costs related to investments in tax-advantaged projects, mortgage banking costs and professional services expense. Excluding 4Q17 notable items*, noninterest expense decreased 0.6 percent Year-over-Year Noninterest expense increased primarily due to higher compensation expense related to hiring to support business growth and compliance programs, merit increases, variable compensation related to revenue growth, increased expense from a change to a shorter vesting period for new stock-based compensation grants, and higher employee benefits expense. Growth in noninterest expense was partially offset by lower professional services expense driven by lower consulting costs for risk and compliance programs, and other expenses. $ in millions * 4Q17 notable items included a $608 million legal and regulatory accrual, a $150 million contribution to the U.S. Bank Foundation and a $67 million one-time bonus to certain eligible employees -21.6% linked quarter +5.0% year-over-year $2,909 $3,899 $3,055

Capital Position * See Non-GAAP Financial Measures reconciliation on slide 25

Appendix

Average Loans vs. 1Q17 Average total loans increased by $6.2 billion, or 2.3% Average commercial loans increased by $3.7 billion, or 4.0% Average retail loans increased by $3.3 billion, or 6.1% Average residential mortgage loans increased by $2.3 billion, or 3.9% vs. 4Q17 Average total loans declined $0.4 billion, or 0.1% Average residential mortgage loans increased by $0.5 billion, or 0.9% Average commercial loans declined $0.1 billion, or 0.1% Average commercial real estate loans declined $0.6 billion, or 1.6% Average covered loans declined $0.1 billion, or 4.5% Key Points Year-over-Year Growth 4.1% 3.4% 3.0% 2.6% 2.3% Covered Commercial CRE Res Mtg Retail Credit Card $277.6 $273.2 $275.5 5.3% $279.4 Average Loans ($bn) $279.8

Average Deposits Key Points Average Deposits ($bn) vs. 1Q17 Average total deposits increased by $6.1 billion, or 1.9% Average low-cost deposits (NIB, interest checking, money market and savings) declined $0.2 billion, or 0.1% vs. 4Q17 Average total deposits declined $4.6 billion, or 1.4% Average low-cost deposits declined $4.5 billion, or 1.5% Year-over-Year Growth 11.0% 7.7% 5.2% 3.0% 1.9% Time Money Market Checking and Savings Noninterest-bearing $334.6 $328.4 $331.2 $335.2 $339.2

Credit Quality – Commercial Loans Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm 1Q174Q17 1Q18 Average Loans$93,739$97,558 $97,465 30-89 Delinquencies0.23% 0.26% 0.25% 90+ Delinquencies0.06% 0.06% 0.06% Nonperforming Loans0.46% 0.26% 0.31% Average loan growth was essentially flat linked quarter consistent with historical results; equipment finance saw stronger growth as firms reinvested tax reform savings into equipment and other capital expenditures Net charge-offs normalized in 1Q18 following a quarter of strong credit recoveries in 4Q17, but improved on a year-over-year basis Linked Quarter Growth (0.1%) 2.0% 1.0% 1.0% (0.1%)

Investor $18,992 Owner Occupied $10,184 A&D Const $386 Multi-family $4,053 Retail $732 Residential Construction $1,877 Office $770 Other $2,726 Resi Land $646 $mm 1Q174Q17 1Q18 Average Loans$43,158$41,009 $40,366 30-89 Delinquencies0.15% 0.09% 0.09% 90+ Delinquencies0.01% 0.01% 0.01% Nonperforming Loans0.26% 0.35% 0.30% Performing TDRs*$153 $138$135 Credit Quality – Commercial Real Estate Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points * TDR = troubled debt restructuring Average loans declined on both a linked quarter and year-over-year basis as competition from non-banks resulted in continued early payoffs In 1Q18, recoveries exceeded gross charge-offs following higher retail-related charge-offs in 4Q17 Linked Quarter Growth (0.5%) (1.4%) (2.2%) (1.5%) (1.6%)

Credit Quality – Residential Mortgage Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm 1Q174Q171Q18 Average Loans$57,900$59,639 $60,174 30-89 Delinquencies0.21% 0.33% 0.24% 90+ Delinquencies0.24% 0.22% 0.22% Nonperforming Loans0.99% 0.74% 0.71% * Excludes GNMA loans, whose repayments are insured by the FHA or guaranteed by the Department of VA ($1,566 million in 1Q18) Originations continued to be high credit quality (weighted average FICO of 756, weighted average LTV of 70%) More than 92% 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 Linked Quarter Growth 2.1% 1.1% 0.8% 1.0% 0.9%

Credit Quality – Credit Card Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm 1Q174Q17 1Q18 Average Loans$20,845$21,218 $21,284 30-89 Delinquencies1.24%1.37%1.32% 90+ Delinquencies1.23%1.28%1.29% Nonperforming Loans0.01%0.00%0.00% Year-over-year average loan growth of 2.1% was driven by high credit quality originations The commitment weighted average FICO on new originations remained strong at 759 Year-over-year increases in delinquency and net charge-off rates primarily reflect vintage maturation Linked Quarter Growth (0.5%) (1.0%) 1.4% 1.4% 0.3%

Credit Quality – Home Equity Average Loans ($mm) and Net Charge-offs Ratio Key Points Key Statistics $mm 1Q174Q17 1Q18 Average Loans$16,259$16,299 $16,195 30-89 Delinquencies0.33% 0.48% 0.41% 90+ Delinquencies0.24% 0.28% 0.32% Nonperforming Loans0.79% 0.77% 0.79% Subprime: 1% Wtd Avg LTV*: 87% NCO: 0.00% Prime: 98% Wtd Avg LTV*: 72% NCO: -0.03% Other: 1% Wtd Avg LTV*: 69% NCO: 0.00% *LTV at origination High-quality originations (weighted average FICO on commitments of 766, weighted average CLTV of 69%) were originated primarily through the retail branch network to existing bank customers on their primary residences Net charge-offs were stable year-over-year with strong recoveries Linked Quarter Growth (1.1%) 0.0% 0.3% 0.0% (0.6%)

Credit Quality – Retail Leasing Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm 1Q174Q17 1Q18 Average Loans$6,469 $7,982 $7,982 30-89 Delinquencies0.24% 0.41% 0.34% 90+ Delinquencies0.01% 0.03% 0.02% Nonperforming Loans0.04% 0.10% 0.09% * Manheim Used Vehicle Value Index source: www.manheimconsulting.com, January 1995 = 100, quarter value = average monthly ending values Continued high-quality originations during 1Q18 (weighted average FICO of 781) support the portfolio’s stable credit profile Late stage delinquencies, nonperforming leases and net charge-offs remained at very low levels Linked Quarter Growth 4.5% 11.0% 8.1% 2.8% 0.0%

Credit Quality – Other Retail Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm 1Q174Q17 1Q18 Average Loans$31,056$32,856 $32,874 30-89 Delinquencies0.56% 0.80% 0.73% 90+ Delinquencies0.12% 0.15% 0.15% Nonperforming Loans0.09% 0.10% 0.11% Growth in average Other Retail loans continued to be driven by the auto loan and installment categories, which increased 7.6% and 11.2% year-over-year, respectively Net charge-offs remained relatively stable; 30-89 delinquencies were seasonally lower on a linked quarter basis Linked Quarter Growth (0.6%) 0.4% 2.6% 2.6% 0.1%

Credit Quality – Auto Loans Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm 1Q174Q17 1Q18 Average Loans$17,538 $18,754$18,868 30-89 Delinquencies0.64% 0.95% 0.85% 90+ Delinquencies0.05% 0.08% 0.08% Nonperforming Loans0.09% 0.12% 0.12% Direct: 5% Wtd Avg FICO: 747 NCO: 0.33% Indirect: 95% Wtd Avg FICO: 772 NCO: 0.48% Auto loans are included in Other Retail category Growth was driven by high-quality originations in the indirect channel (weighted average FICO 774) Net charge-offs remain relatively stable on a year-over-year basis Linked Quarter Growth (0.5%) 0.0% 2.7% 4.1% 0.6%

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

Non-GAAP Financial Measures (1) Interest and rates are presented on a fully taxable-equivalent basis based on a federal income tax rate of 21 percent for 2018 and 35 percent for 2017.

U.S. Bancorp 1Q18 Earnings Conference Call April 18, 2018