8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 16, 2019

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 January 16, 2019, U.S. Bancorp (the “Company”) issued a press release reporting quarter-ended December 31, 2018 results, and posted on its website its 4Q18 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 4Q18 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated herein by reference. The information included in the 4Q18 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 4Q18 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.

(d) Exhibits.

99.1 Press Release issued by U.S. Bancorp on January  16, 2019, deemed “filed” under the Securities Exchange Act of 1934.

99.2 4Q18 Earnings Conference Call Presentation, deemed “furnished” under the Securities Exchange Act of 1934.

SIGNATURES

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

U.S. BANCORP

By /s/    Craig E. Gifford      

Craig E. Gifford

Executive Vice President and
Controller

DATE: January 16, 2019

EX-99.1

Exhibit 99.1

											U.S. Bancorp Reports Fourth Quarter and Full Year 2018 Results •  Record net revenue and diluted earnings per share for 4Q18 and Full Year •  Record net income for the Full Year
4Q18 and Full Year Key Financial Data											4Q18 and Full Year Highlights
PROFITABILITY METRICS		4Q18		3Q18		4Q17		Full Year 2018		Full Year 2017	• Net income of $1,856 million and diluted earnings per common share of $1.10 for 4Q18, including $45 million of notable items, net of taxes, representing an increase of $0.03 per diluted common share • Industry leading return on average assets of 1.59% and return on average common equity of 15.8% for 4Q18 • Return on tangible common equity of 20.2% for 4Q18 • Returned 80% of 4Q earnings to shareholders through dividends and share buybacks • Net interest income grew 4.0% year-over-year (3.2% on a taxable-equivalent basis) • Average total loans increased 0.9% and 1.4% compared to 3Q18 and 4Q17, respectively (1.5% and 2.6% excluding the impact of loan sales) • Total noninterest income grew 5.4% year-over year, driven by payments revenue and trust and investment management fees • Full year net income of $7,096 million and diluted earnings per common share of $4.14 • Positive operating leverage for full year 2018 with net revenue increase of 3.4% and noninterest expense decrease of 2.5%. Excluding notable items, net revenue increase of 3.0% and noninterest expense increase of 2.7%.
Return on average assets (%)		1.59		1.58		1.46		1.55		1.39
Return on average common equity (%)		15.8		15.5		14.7		15.4		13.8
Return on tangible common equity (%) (a)		20.2		19.9		18.8		19.8		17.6
Net interest margin (%)		3.15		3.15		3.11		3.14		3.10
Efficiency ratio (%) (a)		56.3		53.5		69.8		55.1		58.5
INCOME STATEMENT (b)	4Q18		3Q18		4Q17		Full Year 2018		Full Year 2017
Net interest income (taxable-equivalent basis)		$3,331		$3,281		$3,228		$13,035		$12,585
Noninterest income		$2,498		$2,418		$2,370		$9,602		$9,317
Net income attributable to U.S. Bancorp		$1,856		$1,815		$1,682		$7,096		$6,218
Diluted earnings per common share		$1.10		$1.06		$.97		$4.14		$3.51
Dividends declared per common share		$.37		$.37		$.30		$1.34		$1.16
BALANCE SHEET (b)	4Q18		3Q18		4Q17		Full Year 2018		Full Year 2017
Average total loans		$283,677		$281,065		$279,751		$280,701		$276,537
Average total deposits		$334,365		$330,121		$339,162		$333,462		$333,514
Net charge-off ratio		.49%		.46%		.46%		.48%		.48%
Book value per common share (period end)		$28.01		$27.35		$26.34
Basel III standardized CET1 (c)		9.1%		9.0%		9.1%
(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 as if fully implemented

CEO Commentary

“Fourth quarter results capped a strong year for U.S. Bank and the momentum we are seeing in our lending and fee businesses positions us well for 2019. This quarter we achieved record revenue and EPS and delivered a best-in-class return on tangible common equity of 20.2%. These strong results enabled us to return 80% to our shareholders through dividends and share repurchases. Loan growth accelerated in the fourth quarter even as we maintained our consistent and disciplined underwriting standards. Furthermore, we continued to see strong sales activity and expanded customer relationships across all of our businesses supported by our investments in technology and innovation, as well as our employees’ dedication to helping to make our customers’ financial lives simpler and more productive. I want to thank our employees for their efforts this year and every year, and for their unwavering commitment to making U.S. Bank the most trusted choice for our customers.”

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

In the Spotlight

Termination of AML-Related Consent Order

U.S. Bancorp recently announced that the Office of the Comptroller of the Currency has terminated its 2015 consent order related to the Company’s Anti-Money Laundering (AML) and Bank Secrecy Act (BSA) program and controls. Since 2014, U.S. Bancorp has made significant investments to risk management and compliance to enhance and strengthen our programs.

Elavon Acquisitions enhance Payments Capabilities

Recent acquisitions of financial technologies companies Electronic Transaction Systems and CenPOS, Inc. by Elavon, a global merchant payment processing provider and subsidiary of USB, enhances its eCommerce offerings and integrated payments capabilities.

U.S. Bank Pullman Community Center

The U.S. Bank Pullman Community Center, a 135,000-square-foot facility, recently opened in the historic Pullman neighborhood of Chicago and is the latest result of significant community investment U.S. Bank has made in the Pullman community since 2009. U.S. Bank has partnered with the community to help welcome major retailers, a grocery store, healthcare, workout facilities, restaurants and several plants and distribution centers to the community.

Digital Small Business Lending

We launched a fully digital small business lending experience in the third quarter that has successfully fostered small business digital adoption during the past few months. Small businesses, on a national basis, have started borrowing through the digital experience, and two-thirds of funded deals were approved in one day or less.

        Investor contact: Jennifer Thompson, 612.303.0778 | Media contact: Rebekah Fawcett, 612.303.9986

U.S. Bancorp Fourth Quarter 2018 Results

INCOME STATEMENT HIGHLIGHTS
($ in millions, except per-share data)							Percent Change
	4Q 2018		3Q 2018		4Q 2017		4Q18 vs 3Q18			4Q18 vs 4Q17		Full Year 2018		Full Year 2017		Percent Change
Net interest income		$3,303		$3,251		$3,175		1.6			4.0		$12,919		$12,380		4.4
Taxable-equivalent adjustment		28		30		53		(6.7)			(47.2)		116		205		(43.4)
Net interest income (taxable-equivalent basis)		3,331		3,281		3,228		1.5			3.2		13,035		12,585		3.6
Noninterest income		2,498		2,418		2,370		3.3			5.4		9,602		9,317		3.1
Total net revenue		5,829		5,699		5,598		2.3			4.1		22,637		21,902		3.4
Noninterest expense		3,280		3,044		3,899		7.8			(15.9)		12,464		12,790		(2.5)
Income before provision and income taxes		2,549		2,655		1,699		(4.0	)		50.0		10,173		9,112		11.6
Provision for credit losses		368		343		335		7.3			9.9		1,379		1,390		(.8)
Income before taxes		2,181		2,312		1,364		(5.7	)		59.9		8,794		7,722		13.9
Income taxes and taxable-equivalent adjustment		319		490		(322)		(34.9)			nm		1,670		1,469		13.7
Net income		1,862		1,822		1,686		2.2			10.4		7,124		6,253		13.9
Net (income) loss attributable to noncontrolling interests		(6)		(7)		(4)		14.3			(50.0)		(28)		(35)		20.0
Net income attributable to U.S. Bancorp		$1,856		$1,815		$1,682		2.3			10.3		$7,096		$6,218		14.1
Net income applicable to U.S. Bancorp common shareholders		$1,777		$1,732		$1,611		2.6			10.3		$6,784		$5,913		14.7
Diluted earnings per common share		$1.10		$1.06		$.97		3.8			13.4		$4.14		$3.51		17.9

Net income attributable to U.S. Bancorp was $1,856 million for the fourth quarter of 2018, which was 10.3 percent higher than the $1,682 million for the fourth quarter of 2017, and 2.3 percent higher than the $1,815 million for the third quarter of 2018. Diluted earnings per common share were $1.10 in the fourth quarter of 2018, compared with $0.97 in the fourth quarter of 2017 and $1.06 in the third quarter of 2018. The fourth quarter of 2018 included $0.03 per diluted common share of notable items related to the impact of the gain from the sale of the Company’s ATM servicing business and the sale of a majority of the Company’s FDIC covered loans, charges related to severance, certain asset impairments, an accrual for legal matters, and the favorable impact to deferred tax assets and liabilities related to changes in estimates from tax reform.

The increase in net income year-over-year was due to total net revenue growth of 4.1 percent and a decrease in noninterest expense of 15.9 percent. Net interest income increased 4.0 percent (3.2 percent on a taxable-equivalent basis), mainly a result of the impact of rising interest rates on assets, earning assets growth, and higher yields on reinvestment of securities, partially offset by higher rates on deposits and funding mix. Excluding the notable items, noninterest income increased 2.2 percent compared with a year ago, driven by strong growth in payment services revenue and trust and investment management fees, along with higher other noninterest revenue, partially offset by decreases in mortgage banking revenue and ATM processing services. Excluding the notable items, noninterest expense increased 1.0 percent primarily due to increased compensation expense supporting business growth and compliance programs, merit increases, and variable compensation related to revenue growth, higher employee benefits expense, an increase in legal and professional expense, and higher technology and communications expense in support of business growth. Partially offsetting these increases was lower other noninterest expense driven by lower costs related to tax-advantaged projects, lower FDIC assessment costs, and a reduction in mortgage servicing costs.

Net income increased on a linked quarter basis primarily driven by total net revenue growth of 2.3 percent offset by an increase in noninterest expense of 7.8 percent. Net interest income increased 1.6 percent (1.5 percent on a taxable-equivalent basis) due to the impact of rising interest rates on assets, earning assets growth, and interest recoveries, partially offset by higher rates on deposits and funding mix. Excluding the notable items, noninterest income increased 0.2 percent compared with the third quarter of 2018 driven by higher payment services revenue primarily due to seasonally higher credit and debit card revenue and higher commercial products revenue, partially offset by lower ATM processing services due to the ATM servicing sale. Excluding the notable items, noninterest expense increased 2.0 percent primarily driven by compensation expense due to timing of payroll cycles and variable compensation related to revenue growth, along with an increase in employee benefits expense due to higher medical costs, seasonally higher professional services expense, and seasonally higher costs related to investments in tax-advantaged projects. Partially offsetting these increases was lower FDIC assessment costs.

        2

U.S. Bancorp Fourth Quarter 2018 Results

NET INTEREST INCOME
(Taxable-equivalent basis; $ in millions)							Change
	4Q 2018		3Q 2018		4Q 2017		4Q18 vs 3Q18		4Q18 vs 4Q17		Full Year 2018		Full Year 2017		Change
Components of net interest income
Income on earning assets		$4,341		$4,155		$3,785		$186		$556		$16,298		$14,559		$1,739
Expense on interest-bearing liabilities		1,010		874		557		136		453		3,263		1,974		1,289
Net interest income		$3,331		$3,281		$3,228		$50		$103		$13,035		$12,585		$450
Average yields and rates paid
Earning assets yield		4.11%		3.98%		3.64%		.13%		.47%		3.93%		3.58%		.35%
Rate paid on interest-bearing liabilities		1.26		1.10		.72		.16		.54		1.04		.65		.39
Gross interest margin		2.85%		2.88%		2.92%		(.03)%		(.07)%		2.89%		2.93%		(.04)%
Net interest margin		3.15%		3.15%		3.11%		--%		.04%		3.14%		3.10%		.04%
Average balances
Investment securities (a)		$114,138		$113,547		$113,287		$591		$851		$113,940		$111,820		$2,120
Loans		283,677		281,065		279,751		2,612		3,926		280,701		276,537		4,164
Earning assets		420,472		415,177		413,510		5,295		6,962		415,067		406,421		8,646
Interest-bearing liabilities		319,289		314,816		308,976		4,473		10,313		314,506		302,204		12,302
(a) Excludes unrealized gain (loss)

Net interest income on a taxable-equivalent basis in the fourth quarter of 2018 was $3,331 million, an increase of $103 million (3.2 percent) over the fourth quarter of 2017. The increase was principally driven by the impact of rising interest rates, earning assets growth, and higher yields on securities, partially offset by higher rates on deposits and funding mix shift, as well as the impact of tax reform which reduced the taxable-equivalent adjustment benefit related to tax exempt assets. Average earning assets were $7.0 billion (1.7 percent) higher than the fourth quarter of 2017, reflecting increases of $3.9 billion (1.4 percent) in average total loans and $3.0 billion (18.0 percent) in average other earning assets. Excluding the impact of the second quarter of 2018 sale of the Company’s federally guaranteed student loan portfolio and the fourth quarter of 2018 sale of the majority of the Company’s FDIC covered loans, average total loans grew 2.6 percent compared with the fourth quarter of 2017.

Net interest income on a taxable-equivalent basis increased $50 million (1.5 percent) on a linked quarter basis primarily driven by the impact of higher interest rates on assets and earning assets growth, partially offset by higher rates on deposits and funding mix shift. Average earning assets were $5.3 billion (1.3 percent) higher on a linked quarter basis, reflecting increases of $2.6 billion (0.9 percent) in average total loans and $2.1 billion (11.8 percent) in average other earning assets. Excluding the impact of the fourth quarter of 2018 sale of the majority of FDIC covered loans, total average loans grew 1.5 percent over the third quarter of 2018.

The net interest margin in the fourth quarter of 2018 was 3.15 percent, compared with 3.11 percent in the fourth quarter of 2017 and 3.15 percent in the third quarter of 2018. The increase in the net interest margin year-over-year was primarily due to higher interest rates, partially offset by deposit and funding mix, lower loan spreads due to mix, higher cash balances, and the impact of tax reform. Net interest margin was flat on a linked quarter basis reflecting the impact of higher rates on assets and higher interest recoveries, offset by deposit and funding mix, as well as higher cash balances.

Average investment securities in the fourth quarter of 2018 increased $851 million (0.8 percent) from the fourth quarter of 2017 and $591 million (0.5 percent) from the third quarter of 2018 due to purchases of U.S. Treasury, mortgage-backed and state and political securities, net of prepayments and maturities.

        3

U.S. Bancorp Fourth Quarter 2018 Results

AVERAGE LOANS
($ in millions)							Percent Change
	4Q		3Q		4Q		4Q18 vs			4Q18 vs			Full Year		Full Year		Percent
	2018		2018		2017		3Q18			4Q17			2018		2017		Change
Commercial		$95,025		$93,541		$92,101		1.6			3.2			$93,342		$90,393		3.3
Lease financing		5,490		5,507		5,457		(.3	)		.6			5,512		5,511		--
Total commercial		100,515		99,048		97,558		1.5			3.0			98,854		95,904		3.1
Commercial mortgages		28,930		28,362		29,543		2.0			(2.1	)		28,793		30,430		(5.4	)
Construction and development		11,219		11,180		11,466		.3			(2.2	)		11,184		11,647		(4.0	)
Total commercial real estate		40,149		39,542		41,009		1.5			(2.1	)		39,977		42,077		(5.0	)
Residential mortgages		64,476		62,042		59,639		3.9			8.1			61,893		58,784		5.3
Credit card		22,396		21,774		21,218		2.9			5.6			21,672		20,906		3.7
Retail leasing		8,489		8,383		7,982		1.3			6.4			8,253		7,354		12.2
Home equity and second mortgages		16,065		16,000		16,299		.4			(1.4	)		16,076		16,278		(1.2	)
Other		31,587		31,520		32,856		.2			(3.9	)		31,807		31,784		.1
Total other retail		56,141		55,903		57,137		.4			(1.7	)		56,136		55,416		1.3
Covered loans (a)		--		2,756		3,190		nm			nm			2,169		3,450		(37.1	)
Total loans		$283,677		$281,065		$279,751		.9			1.4			$280,701		$276,537		1.5
(a)  During the fourth quarter of 2018, the majority of the Company’s covered loans were sold or the loss share coverage expired. At December 31, 2018, remaining acquired loan balances are included in the portfolio type they would have otherwise been included in had the loss share coverage not been in place.

Average total loans were $3.9 billion (1.4 percent) higher than the fourth quarter of 2017. Excluding the impact of the second quarter of 2018 sale of the Company’s federally guaranteed student loan portfolio and the fourth quarter of 2018 sale of the majority of the Company’s FDIC covered loans, average total loans grew 2.6 percent over the prior year quarter. The increase was due to growth in residential mortgages (8.1 percent), total commercial loans (3.0 percent), credit card loans (5.6 percent), and retail leasing (6.4 percent). These increases were partially offset by a decrease in total commercial real estate loans (2.1 percent) due to customers paying down balances and a decrease in other loans (3.9 percent) impacted by the sale of student loans.

Average total loans were $2.6 billion (0.9 percent) higher than the third quarter of 2018 driven by growth in residential mortgages (3.9 percent) and total commercial loans (1.5 percent), partially offset by the sale of covered loans in the fourth quarter of 2018. Excluding the impact of the fourth quarter of 2018 covered loans sale, total average loans grew 1.5 percent over the third quarter of 2018.

        4

U.S. Bancorp Fourth Quarter 2018 Results

AVERAGE DEPOSITS
($ in millions)							Percent Change
	4Q		3Q		4Q		4Q18 vs			4Q18 vs			Full Year		Full Year		Percent
	2018		2018		2017		3Q18			4Q17			2018		2017		Change
Noninterest-bearing deposits		$77,160		$77,192		$82,303		--			(6.2	)		$78,196		$81,933		(4.6	)
Interest-bearing savings deposits
Interest checking		71,013		69,330		70,717		2.4			.4			70,154		67,953		3.2
Money market savings		99,594		100,688		105,348		(1.1	)		(5.5	)		101,732		106,476		(4.5	)
Savings accounts		44,544		44,848		43,772		(.7	)		1.8			44,713		43,393		3.0
Total savings deposits		215,151		214,866		219,837		.1			(2.1	)		216,599		217,822		(.6	)
Time deposits		42,054		38,063		37,022		10.5			13.6			38,667		33,759		14.5
Total interest-bearing deposits		257,205		252,929		256,859		1.7			.1			255,266		251,581		1.5
Total deposits		$334,365		$330,121		$339,162		1.3			(1.4	)		$333,462		$333,514		--

Average total deposits for the fourth quarter of 2018 were $4.8 billion (1.4 percent) lower than the fourth quarter of 2017. Average noninterest-bearing deposits decreased $5.1 billion (6.2 percent) year-over-year primarily due to decreases in business deposits within Corporate and Commercial Banking and corporate trust balances within Wealth Management and Investment Services. Average total savings deposits were $4.7 billion (2.1 percent) lower year-over-year driven by decreases in Wealth Management and Investment Services and Corporate and Commercial Banking, partially offset by an increase in Consumer and Business Banking. Average time deposits were $5.0 billion (13.6 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 $4.2 billion (1.3 percent) from the third quarter of 2018. On a linked quarter basis, average noninterest-bearing deposits were essentially flat reflecting seasonal growth in Wealth Management and Investment Services balances, offset by decreases in balances within Corporate and Commercial Banking. Average total savings deposits increased $285 million (0.1 percent) primarily due to increases in Corporate and Commercial Banking, partially offset by decreases in Wealth Management and Investment Services and Consumer and Business Banking. Average time deposits increased $4.0 billion (10.5 percent) during the quarter. Average time deposit growth partially reflects consumer customers’ migration to certificates of deposit for higher yields. In addition, the balance of time deposits is managed based on funding needs, relative pricing and liquidity characteristics.

        5

U.S. Bancorp Fourth Quarter 2018 Results

NONINTEREST INCOME
($ in millions)							Percent Change
	4Q		3Q		4Q		4Q18 vs		4Q18 vs		Full Year		Full Year		Percent
	2018		2018		2017		3Q18		4Q17		2018		2017		Change
Credit and debit card revenue		$382		$344		$342		11.0		11.7		$1,401		$1,289		8.7
Corporate payment products revenue		163		169		148		(3.6)		10.1		644		575		12.0
Merchant processing services		389		392		374		(.8)		4.0		1,531		1,486		3.0
ATM processing services		54		85		80		(36.5)		(32.5)		308		303		1.7
Trust and investment management fees		409		411		394		(.5)		3.8		1,619		1,522		6.4
Deposit service charges		199		198		194		.5		2.6		762		732		4.1
Treasury management fees		143		146		152		(2.1)		(5.9)		594		618		(3.9)
Commercial products revenue		225		216		224		4.2		.4		895		954		(6.2)
Mortgage banking revenue		171		174		202		(1.7)		(15.3)		720		834		(13.7)
Investment products fees		48		47		45		2.1		6.7		188		173		8.7
Securities gains (losses), net		5		10		10		(50.0)		(50.0)		30		57		(47.4)
Other		310		226		205		37.2		51.2		910		774		17.6
Total noninterest income		$2,498		$2,418		$2,370		3.3		5.4		$9,602		$9,317		3.1

Fourth quarter noninterest income of $2,498 million was $128 million (5.4 percent) higher than the fourth quarter of 2017 led by strong growth in payment services revenue and trust and investment management fees. Payment services revenue increased $70 million (8.1 percent) due to higher credit and debit card revenue of $40 million (11.7 percent), an increase in corporate payment products revenue of $15 million (10.1 percent), and higher merchant processing services of $15 million (4.0 percent) all driven by higher sales volumes. Trust and investment management fees increased $15 million (3.8 percent) due to business growth. Other noninterest income included the impacts of notable items related to the gain from the sale of the Company’s ATM servicing business of $340 million and charges for asset impairments related to the sale of a majority of the Company’s covered loans and other certain assets of $264 million. Excluding these notable items, other noninterest income increased year-over-year primarily due to higher equity investment income. Partially offsetting these increases was a decline in mortgage banking revenue of $31 million (15.3 percent) primarily due to lower mortgage production. Also, ATM processing services decreased $26 million (32.5 percent) due to the sale of the Company’s ATM servicing business.

Noninterest income was $80 million (3.3 percent) higher in the fourth quarter of 2018 compared with the third quarter of 2018 reflecting higher payment services revenue as credit and debit card revenue grew $38 million (11.0 percent) due to seasonally higher sales volumes, partially offset by seasonally lower corporate payment products revenue of $6 million (3.6 percent). Due to the sale of the Company’s ATM third party servicing business, ATM processing services fees declined $31 million (36.5 percent) in the fourth quarter. Excluding the notable items, noninterest income increased 0.2 percent on a linked quarter basis.

        6

U.S. Bancorp Fourth Quarter 2018 Results

NONINTEREST EXPENSE
($ in millions)							Percent Change
	4Q 2018		3Q 2018		4Q 2017		4Q18 vs 3Q18			4Q18 vs 4Q17			Full Year 2018		Full Year 2017		Percent Change
Compensation	$	1,568	$	1,529	$	1,499		2.6			4.6		$	6,162	$	5,746		7.2
Employee benefits		308		294		291		4.8			5.8			1,231		1,134		8.6
Net occupancy and equipment		266		270		259		(1.5	)		2.7			1,063		1,019		4.3
Professional services		133		96		114		38.5			16.7			407		419		(2.9	)
Marketing and business development		115		106		251		8.5			(54.2	)		429		542		(20.8	)
Technology and communications		254		247		236		2.8			7.6			978		903		8.3
Postage, printing and supplies		80		84		79		(4.8	)		1.3			324		323		.3
Other intangibles		41		41		44		--			(6.8	)		161		175		(8.0	)
Other		515		377		1,126		36.6			(54.3	)		1,709		2,529		(32.4	)
Total noninterest expense	$	3,280	$	3,044	$	3,899		7.8			(15.9	)	$	12,464	$	12,790		(2.5	)

Fourth quarter noninterest expense of $3,280 million was $619 million (15.9 percent) lower than the fourth quarter of 2017. Included in the fourth quarter are Company expenses related to severance charges and accruals of legal matters of $174 million in 2018 and incurred expenses of $825 million in 2017 related to a special employee bonus and contribution to its foundation as well as the settlement of a regulatory matter. Excluding the impact of the notable items, fourth quarter noninterest expense was 1.0 percent higher than fourth quarter of 2017 primarily due to an increase in compensation expense driven by the impact of hiring to support business growth and compliance programs, merit increases, and higher variable compensation related to business production. Employee benefits expense increased primarily due to higher medical costs compared with a year ago. Partially offsetting these increases was a decrease in other noninterest expense due to lower costs related to tax-advantaged projects, lower FDIC assessment costs, driven by the elimination of the surcharge in the fourth quarter of 2018, and a reduction in mortgage servicing costs.

Noninterest expense increased $236 million (7.8 percent) on a linked quarter basis. Excluding the impact of the notable items, fourth quarter noninterest expense increased 2.0 percent primarily due to an increase in compensation expense, including higher incentives, seasonally higher professional services expenses, and growth in other noninterest expense due to seasonally higher costs related to tax-advantaged projects, partially offset by lower FDIC assessment costs driven by the elimination of the surcharge in the fourth quarter of 2018.

Provision for Income Taxes

The provision for income taxes for the fourth quarter of 2018 resulted in a tax rate of 14.6 percent on a taxable-equivalent basis (effective tax rate of 13.5 percent), compared with 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, and a tax rate of 21.2 percent on a taxable-equivalent basis (effective tax rate of 20.2 percent) in the third quarter of 2018. The tax benefit in the fourth quarter of 2017 reflected the impact of tax reform legislation that was enacted during that quarter. The 2018 tax rates reflected the reduced statutory tax rate for corporations from 35 percent to 21 percent effective beginning in 2018 and the fourth quarter of 2018 tax rates reflected the favorable impact of deferred tax assets and liabilities adjustments related to tax reform estimates. Excluding the changes in estimates related to deferred tax assets and liabilities, the taxable-equivalent rate was 20.1 percent in the fourth quarter of 2018.

        7

U.S. Bancorp Fourth Quarter 2018 Results

ALLOWANCE FOR CREDIT LOSSES
($ in millions)	4Q				3Q				2Q				1Q				4Q
	2018		% (b)		2018		% (b)		2018		% (b)		2018		% (b)		2017		% (b)
Balance, beginning of period		$4,426				$4,411				$4,417				$4,417				$4,407
Net charge-offs
Commercial		64		.27		63		.27		54		.23		56		.25		22	.09
Lease financing		3		.22		3		.22		4		.29		4		.29		6	.44
Total commercial		67		.26		66		.26		58		.24		60		.25		28	.11
Commercial mortgages		(8)		(.11)		(5)		(.07)		--		--		(4)		(.06)		18	.24
Construction and development		1		.04		(4)		(.14)		--		--		1		.04		--	--
Total commercial real estate		(7)		(.07)		(9)		(.09)		--		--		(3)		(.03)		18	.17
Residential mortgages		2		.01		4		.03		4		.03		7		.05		10	.07
Credit card		219		3.88		206		3.75		210		3.97		211		4.02		205	3.83
Retail leasing		3		.14		3		.14		3		.15		3		.15		3	.15
Home equity and second mortgages		1		.02		(1)		(.02)		(2)		(.05)		(1)		(.03)		(2)	(.05)
Other		68		.85		59		.74		59		.76		64		.79		63	.76
Total other retail		72		.51		61		.43		60		.43		66		.47		64	.44
Total net charge-offs		353		.49		328		.46		332		.48		341		.49		325	.46
Provision for credit losses		368				343				327				341				335
Other changes (a)		--				--				(1)				--				--
Balance, end of period		$4,441				$4,426				$4,411				$4,417				$4,417
Components
Allowance for loan losses		$3,973				$3,954				$3,920				$3,918				$3,925
Liability for unfunded credit commitments		468				472				491				499				492
Total allowance for credit losses		$4,441				$4,426				$4,411				$4,417				$4,417
Gross charge-offs		$442				$428				$437				$453				$464
Gross recoveries		$89				$100				$105				$112				$139
Allowance for credit losses as a percentage of
Period-end loans		1.55				1.57				1.57				1.59				1.58
Nonperforming loans		544				544				484				431				438
Nonperforming assets		449				441				404				367				368
(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 Fourth Quarter 2018 Results

Credit quality was relatively stable on both a linked quarter and year-over-year basis. The Company’s provision for credit losses for the fourth quarter of 2018 was $368 million, which was $25 million (7.3 percent) higher than the prior quarter and $33 million (9.9 percent) higher than the fourth quarter of 2017.

Total net charge-offs in the fourth quarter of 2018 were $353 million, compared with $328 million in the third quarter of 2018, and $325 million in the fourth quarter of 2017. Net charge-offs increased $25 million (7.6 percent) compared with the third quarter of 2018 mainly due to seasonally lower credit card net charge-offs in the third quarter and higher total other retail net charge-offs in the fourth quarter. Net charge-offs increased $28 million (8.6 percent) compared with the fourth quarter of 2017 primarily due to higher total commercial and credit card net charge-offs, partially offset by lower total commercial real estate net charge-offs. The net charge-off ratio was 0.49 percent in the fourth quarter of 2018, compared with 0.46 percent in both the third quarter of 2018 and in the fourth quarter of 2017.

The allowance for credit losses was $4,441 million at December 31, 2018, compared with $4,426 million at September 30, 2018, and $4,417 million at December 31, 2017. The ratio of the allowance for credit losses to period-end loans was 1.55 percent at December 31, 2018, compared with 1.57 percent at September 30, 2018, and 1.58 percent at December 31, 2017. The ratio of the allowance for credit losses to nonperforming loans was 544 percent at December 31, 2018, and at September 30, 2018, compared with 438 percent at December 31, 2017.

Nonperforming assets were $989 million at December 31, 2018, compared with $1,004 million at September 30, 2018, and $1,200 million at December 31, 2017. The ratio of nonperforming assets to loans and other real estate was 0.34 percent at December 31, 2018, compared with 0.36 percent at September 30, 2018, and 0.43 percent at December 31, 2017. The year-over-year decrease in nonperforming assets was driven by improvements in nonperforming residential mortgages, total commercial loans, total commercial real estate and other real estate owned. Accruing loans 90 days or more past due were $584 million at December 31, 2018, compared with $551 million at September 30, 2018, and $720 million at December 31, 2017.

DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES
(Percent)	Dec 31 2018		Sep 30 2018		Jun 30 2018		Mar 31 2018		Dec 31 2017
Delinquent loan ratios - 90 days or more past due excluding nonperforming loans
Commercial		.07		.06		.06		.06		.06
Commercial real estate		--		.01		.01		.01		.01
Residential mortgages		.18		.19		.18		.22		.22
Credit card		1.25		1.18		1.15		1.29		1.28
Other retail		.19		.17		.16		.18		.17
Covered loans		--		.86		4.46		4.57		4.74
Total loans		.20		.20		.23		.25		.26
Delinquent loan ratios - 90 days or more past due including nonperforming loans
Commercial		.27		.28		.28		.37		.31
Commercial real estate		.29		.27		.27		.31		.37
Residential mortgages		.63		.69		.84		.93		.96
Credit card		1.25		1.18		1.15		1.29		1.28
Other retail		.54		.49		.48		.48		.46
Covered loans		--		.86		4.68		4.77		4.93
Total loans		.49		.48		.55		.62		.62

        9

U.S. Bancorp Fourth Quarter 2018 Results

ASSET QUALITY (a)
($ in millions)
	Dec 31 2018		Sep 30 2018		Jun 30 2018		Mar 31 2018		Dec 31 2017
Nonperforming loans
Commercial		$186		$193		$199		$274		$225
Lease financing		23		23		25		27		24
Total commercial		209		216		224		301		249
Commercial mortgages		76		77		72		86		108
Construction and development		39		28		32		33		34
Total commercial real estate		115		105		104		119		142
Residential mortgages		296		317		400		430		442
Credit card		--		--		--		--		1
Other retail		197		175		178		168		168
Covered loans		--		--		6		6		6
Total nonperforming loans		817		813		912		1,024		1,008
Other real estate		111		100		108		124		141
Covered other real estate		--		19		20		20		21
Other nonperforming assets		61		72		51		36		30
Total nonperforming assets		$989		$1,004		$1,091		$1,204		$1,200
Accruing loans 90 days or more past due		$584		$551		$640		$702		$720
Performing restructured loans, excluding GNMA		$2,218		$2,272		$2,194		$2,222		$2,338
Performing restructured GNMA		$1,639		$1,668		$1,665		$1,566		$1,681
Nonperforming assets to loans plus ORE (%)		.34		.36		.39		.43		.43
(a) Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due

        10

U.S. Bancorp Fourth Quarter 2018 Results

COMMON SHARES
(Millions)	4Q 2018		3Q 2018		2Q 2018		1Q 2018		4Q 2017
Beginning shares outstanding		1,623		1,636		1,649		1,656	1,667
Shares issued for stock incentive plans, acquisitions and other corporate purposes		1		1		--		4	1
Shares repurchased		(16)		(14)		(13)		(11)	(12)
Ending shares outstanding		1,608		1,623		1,636		1,649	1,656

CAPITAL POSITION
($ in millions)	Dec 31 2018			Sep 30 2018			Jun 30 2018			Mar 31 2018			Dec 31 2017
Total U.S. Bancorp shareholders’ equity	$	51,029		$	50,375		$	49,628		$	49,187		$	49,040
Basel III Standardized Approach (a)
Common equity tier 1 capital	$	34,724		$	34,097		$	34,161		$	33,539		$	34,369
Tier 1 capital		40,741			40,114			39,611			38,991			39,806
Total risk-based capital		48,178			47,531			47,258			46,640			47,503
Fully implemented common equity tier 1 capital ratio (a)		9.1	%		9.0	%		9.1	%		9.0	%		9.1	%  (b)
Tier 1 capital ratio		10.7			10.6			10.5			10.4			10.8
Total risk-based capital ratio		12.6			12.6			12.6			12.5			12.9
Leverage ratio		9.0			9.0			8.9			8.8			8.9
Basel III Advanced Approaches (a)
Fully implemented common equity tier 1 capital ratio (a)		11.8			11.8			11.6			11.5			11.6	(b)
Tangible common equity to tangible assets (b)		7.8			7.7			7.8			7.7			7.6
Tangible common equity to risk-weighted assets (b)		9.4			9.3			9.3			9.3			9.4
Common equity tier 1 capital ratio calculated under the transitional standardized approach (a)		--			--			--			--			9.3
Common equity tier 1 capital ratio calculated under the transitional advanced approaches (a)		--			--			--			--			12.0
(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 $51.0 billion at December 31, 2018, compared with $50.4 billion at September 30, 2018, and $49.0 billion at December 31, 2017. During the fourth quarter, the Company returned 80 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 9.1 percent at December 31, 2018, compared with 9.0 percent at September 30, 2018, and 9.3 percent at December 31, 2017. The common equity tier 1 capital to risk-weighted assets ratio using the Basel III advanced approaches method was 11.8 percent at December 31, 2018, and at September 30, 2018, compared with 12.0 percent at December 31, 2017.

        11

U.S. Bancorp Fourth Quarter 2018 Results

  Investor Conference Call

On Wednesday, January 16, 2019, at 8:00 a.m. CST, 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 1486427. For those unable to participate during the live call, a recording will be available at approximately 11:00 a.m. CST on Wednesday, January 16 and will be accessible until Wednesday, January 23 at 11:00 p.m. CST. 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 1486427.

  About U.S. Bancorp

U.S. Bancorp, with 74,000 employees and $467 billion in assets as of December 31, 2018, is the parent company of U.S. Bank, the fifth-largest commercial bank in the United States. The Minneapolis-based bank blends its relationship teams, branches and ATM network with mobile and online tools that allow customers to bank how, when and where they prefer. U.S. Bank is committed to serving its millions of retail, business, wealth management, payment, commercial and corporate, and investment services customers across the country and around the world as a trusted financial partner, a commitment recognized by the Ethisphere Institute naming the bank a 2018 World’s Most Ethical Company. Visit U.S. Bank at www.usbank.com or follow on social media to stay up to date with company news.

  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. Deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price 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 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 the level of tariffs and other trade policies of the United States and its global trading partners; changes in customer behavior and preferences; breaches in data security; failures to safeguard personal information; 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 “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 Fourth 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 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 capital measures 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				Year Ended
(Dollars and Shares in Millions, Except Per Share Data)	December 31,				December 31,
(Unaudited)	2018		2017		2018		2017
Interest Income
Loans		$3,475		$3,060		$13,120		$11,788
Loans held for sale		57		40		165		144
Investment securities		689		579		2,616		2,232
Other interest income		90		51		272		182
Total interest income		4,311		3,730		16,173		14,346
Interest Expense
Deposits		606		311		1,869		1,041
Short-term borrowings		113		45		378		141
Long-term debt		289		199		1,007		784
Total interest expense		1,008		555		3,254		1,966
Net interest income		3,303		3,175		12,919		12,380
Provision for credit losses		368		335		1,379		1,390
Net interest income after provision for credit losses		2,935		2,840		11,540		10,990
Noninterest Income
Credit and debit card revenue		382		342		1,401		1,289
Corporate payment products revenue		163		148		644		575
Merchant processing services		389		374		1,531		1,486
ATM processing services		54		80		308		303
Trust and investment management fees		409		394		1,619		1,522
Deposit service charges		199		194		762		732
Treasury management fees		143		152		594		618
Commercial products revenue		225		224		895		954
Mortgage banking revenue		171		202		720		834
Investment products fees		48		45		188		173
Securities gains (losses), net		5		10		30		57
Other		310		205		910		774
Total noninterest income		2,498		2,370		9,602		9,317
Noninterest Expense
Compensation		1,568		1,499		6,162		5,746
Employee benefits		308		291		1,231		1,134
Net occupancy and equipment		266		259		1,063		1,019
Professional services		133		114		407		419
Marketing and business development		115		251		429		542
Technology and communications		254		236		978		903
Postage, printing and supplies		80		79		324		323
Other intangibles		41		44		161		175
Other		515		1,126		1,709		2,529
Total noninterest expense		3,280		3,899		12,464		12,790
Income before income taxes		2,153		1,311		8,678		7,517
Applicable income taxes		291		(375)		1,554		1,264
Net income		1,862		1,686		7,124		6,253
Net (income) loss attributable to noncontrolling interests		(6)		(4)		(28)		(35)
Net income attributable to U.S. Bancorp		$1,856		$1,682		$7,096		$6,218
Net income applicable to U.S. Bancorp common shareholders		$1,777		$1,611		$6,784		$5,913
Earnings per common share		$1.10		$.97		$4.15		$3.53
Diluted earnings per common share		$1.10		$.97		$4.14		$3.51
Dividends declared per common share		$.37		$.30		$1.34		$1.16
Average common shares outstanding		1,615		1,659		1,634		1,677
Average diluted common shares outstanding		1,618		1,664		1,638		1,683

        14

CONSOLIDATED ENDING BALANCE SHEET
	December 31,			December 31,
(Dollars in Millions)	2018			2017
Assets
Cash and due from banks		$21,453			$19,505
Investment securities
Held-to-maturity		46,050			44,362
Available-for-sale		66,115			68,137
Loans held for sale		2,056			3,554
Loans
Commercial		102,444			97,561
Commercial real estate		39,539			40,463
Residential mortgages		65,034			59,783
Credit card		23,363			22,180
Other retail		56,430			57,324
Covered loans		--			3,121
Total loans		286,810			280,432
Less allowance for loan losses		(3,973	)		(3,925	)
Net loans		282,837			276,507
Premises and equipment		2,457			2,432
Goodwill		9,369			9,434
Other intangible assets		3,392			3,228
Other assets		33,645			34,881
Total assets		$467,374			$462,040
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing		$81,811			$87,557
Interest-bearing		263,664			259,658
Total deposits		345,475			347,215
Short-term borrowings		14,139			16,651
Long-term debt		41,340			32,259
Other liabilities		14,763			16,249
Total liabilities		415,717			412,374
Shareholders’ equity
Preferred stock		5,984			5,419
Common stock		21			21
Capital surplus		8,469			8,464
Retained earnings		59,065			54,142
Less treasury stock		(20,188	)		(17,602	)
Accumulated other comprehensive income (loss)		(2,322	)		(1,404	)
Total U.S. Bancorp shareholders’ equity		51,029			49,040
Noncontrolling interests		628			626
Total equity		51,657			49,666
Total liabilities and equity		$467,374			$462,040

        15

NON-GAAP FINANCIAL MEASURES
	December 31,			September 30,				June 30,			March 31,			December 31,
(Dollars in Millions, Unaudited)	2018			2018				2018			2018			2017
Total equity		$51,657			$51,007				$50,257			$49,812			$49,666
Preferred stock		(5,984	)		(5,984	)			(5,419	)		(5,419	)		(5,419	)
Noncontrolling interests		(628	)		(632	)			(629	)		(625	)		(626	)
Goodwill (net of deferred tax liability) (1)		(8,549	)		(8,682	)			(8,585	)		(8,609	)		(8,613	)
Intangible assets, other than mortgage servicing rights		(601	)		(627	)			(571	)		(608	)		(583	)
Tangible common equity (a)		35,895			35,082				35,053			34,551			34,425
Total assets		467,374			464,607				461,329			460,119			462,040
Goodwill (net of deferred tax liability) (1)		(8,549	)		(8,682	)			(8,585	)		(8,609	)		(8,613	)
Intangible assets, other than mortgage servicing rights		(601	)		(627	)			(571	)		(608	)		(583	)
Tangible assets (b)		458,224			455,298				452,173			450,902			452,844
Risk-weighted assets, determined in accordance with the Basel III standardized approach (c)		381,661	*		377,713				375,466			373,141			367,771
Tangible common equity (as calculated above)															34,425
Adjustments (2)															(550	)
Common equity tier 1 capital estimated for the Basel III fully implemented standardized and advanced approaches (d)															33,875
Risk-weighted assets, determined in accordance with prescribed transitional standardized approach regulatory requirements															367,771
Adjustments (3)															4,473
Risk-weighted assets estimated for the Basel III fully implemented standardized approach (e)															372,244
Risk-weighted assets, determined in accordance with prescribed transitional advanced approaches regulatory requirements															287,211
Adjustments (4)															4,769
Risk-weighted assets estimated for the Basel III fully implemented advanced approaches (f)															291,980
Ratios*
Tangible common equity to tangible assets (a)/(b)		7.8	%		7.7		%		7.8	%		7.7	%		7.6		%
Tangible common equity to risk-weighted assets (a)/(c)		9.4			9.3				9.3			9.3			9.4
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach (d)/(e)															9.1
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches (d)/(f)															11.6
	Three Months Ended
	December 31,			September 30,				June 30,			March 31,			December 31,
	2018			2018				2018			2018			2017
Net income applicable to U.S. Bancorp common shareholders		$1,777			$1,732				$1,678			$1,597			$1,611
Intangibles amortization (net-of-tax)		32			32				32			31			28
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization		1,809			1,764				1,710			1,628			1,639
Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization (g)		7,177			6,998				6,859			6,602			6,503
Average total equity		51,370			50,768				49,950			49,450			49,461
Less: Average preferred stock		5,984			5,714				5,419			5,419			5,419
Less: Average noncontrolling interests		630			630				628			625			627
Less: Average goodwill (net of deferred tax liability) (1)		8,574			8,620				8,602			8,627			8,154
Less: Average intangible assets, other than mortgage servicing rights		605			584				588			603			591
Average U.S. Bancorp common shareholders’ equity, excluding intangible assets (h)		35,577			35,220				34,713			34,176			34,670
Return on tangible common equity (g)/(h)		20.2	%		19.9		%		19.8	%		19.3	%		18.8		%

  * 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											Year Ended
(Dollars in Millions, Unaudited)		December 31, 2018		September 30, 2018		June 30, 2018		March 31, 2018		December 31, 2017			December 31, 2018	December 31, 2017
Net interest income		$3,303		$3,251		$3,197		$3,168		$3,175			$12,919		$12,380
Taxable-equivalent adjustment (1)		28		30		29		29		53			116		205
Net interest income, on a taxable-equivalent basis		3,331		3,281		3,226		3,197		3,228			13,035		12,585
Net interest income, on a taxable-equivalent basis (as calculated above)		3,331		3,281		3,226		3,197		3,228			13,035		12,585
Noninterest income		2,498		2,418		2,414		2,272		2,370			9,602		9,317
Less: Securities gains (losses), net		5		10		10		5		10			30		57
Total net revenue, excluding net securities gains (losses) (a)		5,824		5,689		5,630		5,464		5,588			22,607		21,845
Noninterest expense (b)		3,280		3,044		3,085		3,055		3,899			12,464		12,790
Less: Intangible amortization		41		41		40		39		44			161		175
Noninterest expense, excluding intangible amortization (c)		3,239		3,003		3,045		3,016		3,855			12,303		12,615
Efficiency ratio (b)/(a)		56.3	%	53.5	%	54.8	%	55.9	%	69.8	%		55.1	%	58.5	%
Tangible efficiency ratio (c)/(a)		55.6		52.8		54.1		55.2		69.0			54.4		57.7

(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									Net Income Attributable
	to U.S. Bancorp						Percent Change						to U.S. Bancorp							4Q 2018
Business Line	4Q   2018		3Q 2018		4Q 2017		4Q18 vs 3Q18			4Q18 vs 4Q17			Full Year 2018		Full Year 2017		Percent Change			Earnings Composition
Corporate and Commercial
Banking		$400		$394		$370		1.5			8.1			$1,601		$1,447		10.6			22	%
Consumer and Business
Banking		577		581		453		(.7	)		27.4			2,242		1,777		26.2			31
Wealth Management and
Investment Services		187		220		170		(15.0	)		10.0			806		646		24.8			10
Payment Services		395		389		315		1.5			25.4			1,481		1,200		23.4			21
Treasury and Corporate
Support		297		231		374		28.6			(20.6	)		966		1,148		(15.9	)		16
Consolidated Company		$1,856		$1,815		$1,682		2.3			10.3			$7,096		$6,218		14.1			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.

        2

CORPORATE AND COMMERCIAL BANKING (a)
($ in millions)							Percent Change
	4Q 2018		3Q 2018		4Q   2017		4Q18 vs 3Q18			4Q18 vs 4Q17			Full Year   2018		Full Year   2017			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$747		$741		$736		.8			1.5			$2,938		$2,905			1.1
Noninterest income		212		201		206		5.5			2.9			844		915			(7.8	)
Securities gains (losses), net		--		--		--		--			--			--		(3)			nm
Total net revenue		959		942		942		1.8			1.8			3,782		3,817			(.9	)
Noninterest expense		397		380		382		4.5			3.9			1,578		1,552			1.7
Other intangibles		1		1		1		--			--			4		4			--
Total noninterest expense		398		381		383		4.5			3.9			1,582		1,556			1.7
Income before provision and taxes		561		561		559		--			.4			2,200		2,261			(2.7	)
Provision for credit losses		28		35		(23)		(20.0	)		nm			65		(14	)		nm
Income before income taxes		533		526		582		1.3			(8.4	)		2,135		2,275			(6.2	)
Income taxes and taxable-equivalent adjustment		133		132		212		.8			(37.3	)		534		828			(35.5	)
Net income		400		394		370		1.5			8.1			1,601		1,447			10.6
Net (income) loss attributable to noncontrolling interests		--		--		--		--			--			--		--			--
Net income attributable to U.S. Bancorp		$400		$394		$370		1.5			8.1			$1,601		$1,447			10.6
Average Balance Sheet Data
Loans		$94,824		$93,364		$93,992		1.6			.9			$93,886		$93,941			(.1	)
Other earning assets		3,292		3,042		2,988		8.2			10.2			3,072		2,958			3.9
Goodwill		1,647		1,647		1,647		--			--			1,647		1,647			--
Other intangible assets		10		10		12		--			(16.7	)		11		13			(15.4	)
Assets		104,072		102,146		102,558		1.9			1.5			102,834		102,528			.3
Noninterest-bearing deposits		31,991		32,539		35,362		(1.7	)		(9.5	)		33,074		36,030			(8.2	)
Interest-bearing deposits		70,765		68,552		73,486		3.2			(3.7	)		69,901		71,850			(2.7	)
Total deposits		102,756		101,091		108,848		1.6			(5.6	)		102,975		107,880			(4.5	)
Total U.S. Bancorp shareholders’ equity		10,520		10,426		9,929		.9			6.0			10,465		9,870			6.0
(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 $400 million of the Company’s net income in the fourth quarter of 2018, compared with $370 million in the fourth quarter of 2017. Total net revenue increased $17 million (1.8 percent) due to an $11 million (1.5 percent) increase in net interest income and an increase of $6 million (2.9 percent) in total noninterest income. Net interest income increased primarily due to the impact of rising rates on the margin benefit from deposits, partially offset by lower spreads on loans, reflecting a competitive marketplace, and lower deposit balances from a year ago. Noninterest bearing deposits are declining as customers deploy balances to support business growth. Interest-bearing deposits reflect expected balance run-off related to the business merger of a larger financial services customer. Total noninterest income increased year-over-year primarily due to higher syndication fees, partially offset by lower corporate bond underwriting fees. Total noninterest expense was $15 million (3.9 percent) higher compared with a year ago primarily due to an increase in net shared services expense driven by technology development and investment in infrastructure and higher personnel expense, reflecting increased staffing to support business development and merit increases, as well as higher variable compensation expense related to capital markets activities. The provision for credit losses increased $51 million reflecting a reserve increase in 2018 due to the impact of loan growth during the year and a reduction in the reserve in 2017 reflecting a stabilizing energy sector last year, partially offset by lower net charge-offs.

        3

CONSUMER AND BUSINESS BANKING (a)
($ in millions)							Percent Change
	4Q		3Q		4Q		4Q18 vs			4Q18 vs			Full Year		Full Year		Percent
	2018		2018		2017		3Q18			4Q17			2018		2017		Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$1,579		$1,555		$1,495		1.5			5.6			$6,164		$5,832	5.7
Noninterest income		561		582		594		(3.6	)		(5.6	)		2,302		2,386	(3.5)
Securities gains (losses), net		--		--		--		--			--			--		--	--
Total net revenue		2,140		2,137		2,089		.1			2.4			8,466		8,218	3.0
Noninterest expense		1,297		1,301		1,274		(.3	)		1.8			5,217		5,056	3.2
Other intangibles		6		7		8		(14.3	)		(25.0	)		27		30	(10.0)
Total noninterest expense		1,303		1,308		1,282		(.4	)		1.6			5,244		5,086	3.1
Income before provision and taxes		837		829		807		1.0			3.7			3,222		3,132	2.9
Provision for credit losses		68		54		95		25.9			(28.4	)		232		337	(31.2)
Income before income taxes		769		775		712		(.8	)		8.0			2,990		2,795	7.0
Income taxes and taxable-equivalent adjustment		192		194		259		(1.0	)		(25.9	)		748		1,018	(26.5)
Net income		577		581		453		(.7	)		27.4			2,242		1,777	26.2
Net (income) loss attributable to noncontrolling interests		--		--		--		--			--			--		--	--
Net income attributable to U.S. Bancorp		$577		$581		$453		(.7	)		27.4			$2,242		$1,777	26.2
Average Balance Sheet Data
Loans		$141,002		$141,339		$141,331		(.2	)		(.2	)		$140,835		$139,265	1.1
Other earning assets		3,400		3,385		4,250		.4			(20.0	)		3,501		3,946	(11.3)
Goodwill		3,526		3,631		3,632		(2.9	)		(2.9	)		3,605		3,632	(.7)
Other intangible assets		3,034		2,974		2,760		2.0			9.9			2,953		2,740	7.8
Assets		155,444		155,586		156,585		(.1	)		(.7	)		155,290		153,815	1.0
Noninterest-bearing deposits		27,774		28,005		28,548		(.8	)		(2.7	)		27,526		27,680	(.6)
Interest-bearing deposits		125,746		125,555		121,800		.2			3.2			124,940		120,621	3.6
Total deposits		153,520		153,560		150,348		--			2.1			152,466		148,301	2.8
Total U.S. Bancorp shareholders’ equity		11,717		11,847		11,070		(1.1	)		5.8			11,816		11,133	6.1
(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 $577 million of the Company’s net income in the fourth quarter of 2018, compared with $453 million in the fourth quarter of 2017. Total net revenue increased $51 million (2.4 percent) due to an $84 million (5.6 percent) increase in net interest income, partially offset by a $33 million (5.6 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 core deposit balances, partially offset by lower spreads on loans. Total noninterest income decreased principally due to a decline in mortgage banking revenue driven by lower mortgage production and a reduction in ATM processing services fees due to the sale of the Company’s ATM servicing business during the fourth quarter of 2018. Total noninterest expense in the fourth quarter of 2018 increased $21 million (1.6 percent) primarily due to higher net shared services expense and higher personnel expense, reflecting the impact of investments supporting business growth as well as higher production related incentives, partially offset by lower mortgage servicing costs. The provision for credit losses decreased $27 million (28.4 percent) primarily reflecting a favorable change in the reserve allocation reflecting improving home valuations along with lower net charge-offs.

        4

WEALTH MANAGEMENT AND INVESTMENT SERVICES (a)
($ in millions)								Percent Change
	4Q		3Q			4Q		4Q18 vs			4Q18 vs			Full Year			Full Year		Percent
		2018		2018			2017		3Q18			4Q17			2018			2017		Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$284		$281			$265		1.1			7.2			$1,122			$1,007		11.4
Noninterest income		443		444			422		(.2	)		5.0			1,748			1,643		6.4
Securities gains (losses), net		--		--			--		--			--			--			--		--
Total net revenue		727		725			687		.3			5.8			2,870			2,650		8.3
Noninterest expense		473		430			417		10.0			13.4			1,780			1,617		10.1
Other intangibles		4		4			5		--			(20.0	)		16			20		(20.0	)
Total noninterest expense		477		434			422		9.9			13.0			1,796			1,637		9.7
Income before provision and taxes		250		291			265		(14.1	)		(5.7	)		1,074			1,013		6.0
Provision for credit losses		--		(3	)		(2)		nm			nm			(2	)		(1)		nm
Income before income taxes		250		294			267		(15.0	)		(6.4	)		1,076			1,014		6.1
Income taxes and taxable-equivalent adjustment		63		74			97		(14.9	)		(35.1	)		270			368		(26.6	)
Net income		187		220			170		(15.0	)		10.0			806			646		24.8
Net (income) loss attributable to noncontrolling interests		--		--			--		--			--			--			--		--
Net income attributable to U.S. Bancorp		$187		$220			$170		(15.0	)		10.0			$806			$646		24.8
Average Balance Sheet Data
Loans		$9,784		$9,483			$8,909		3.2			9.8			$9,372			$8,533		9.8
Other earning assets		232		172			168		34.9			38.1			184			157		17.2
Goodwill		1,618		1,618			1,618		--			--			1,618			1,617		.1
Other intangible assets		57		61			74		(6.6	)		(23.0	)		63			81		(22.2	)
Assets		12,829		12,663			12,135		1.3			5.7			12,445			11,750		5.9
Noninterest-bearing deposits		13,730		13,190			14,804		4.1			(7.3	)		14,011			14,846		(5.6	)
Interest-bearing deposits		54,326		55,937			58,796		(2.9	)		(7.6	)		56,010			57,715		(3.0	)
Total deposits		68,056		69,127			73,600		(1.5	)		(7.5	)		70,021			72,561		(3.5	)
Total U.S. Bancorp shareholders’ equity		2,487		2,486			2,398		--			3.7			2,475			2,421		2.2
(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 four businesses: Wealth Management, Global Corporate Trust & Custody, U.S. Bancorp Asset Management, and Fund Services.

Wealth Management and Investment Services contributed $187 million of the Company’s net income in the fourth quarter of 2018, compared with $170 million in the fourth quarter of 2017. Total net revenue increased $40 million (5.8 percent) year-over-year driven by increases in net interest income of $19 million (7.2 percent) and total noninterest income of $21 million (5.0 percent). Net interest income increased year-over-year primarily due to the impact of rising rates on the margin benefit from deposits. Total noninterest income increased year-over-year principally due to business growth and net asset inflows. Total noninterest expense increased $55 million (13.0 percent) primarily due to increased net shared services expense and higher personnel expense driven by investments to support business growth, higher production related incentives and increased staffing to support business development. The provision for credit losses increased $2 million reflecting an unfavorable change in the reserve allocation.

        5

PAYMENT SERVICES (a)
($ in millions)							Percent Change
	4Q 2018		3Q 2018		4Q   2017		4Q18 vs 3Q18		4Q18 vs 4Q17			Full Year 2018		Full Year   2017		Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$623		$619		$611		.6		2.0			$2,445		$2,403		1.7
Noninterest income		939		911		869		3.1		8.1			3,601		3,368		6.9
Securities gains (losses), net		--		--		--		--		--			--		--		--
Total net revenue		1,562		1,530		1,480		2.1		5.5			6,046		5,771		4.8
Noninterest expense		741		718		667		3.2		11.1			2,875		2,662		8.0
Other intangibles		30		29		30		3.4		--			114		121		(5.8	)
Total noninterest expense		771		747		697		3.2		10.6			2,989		2,783		7.4
Income before provision and taxes		791		783		783		1.0		1.0			3,057		2,988		2.3
Provision for credit losses		264		264		288		--		(8.3	)		1,081		1,082		(.1	)
Income before income taxes		527		519		495		1.5		6.5			1,976		1,906		3.7
Income taxes and taxable-equivalent adjustment		132		130		180		1.5		(26.7	)		495		693		(28.6	)
Net income		395		389		315		1.5		25.4			1,481		1,213		22.1
Net (income) loss attributable to noncontrolling interests		--		--		--		--		--			--		(13)		nm
Net income attributable to U.S. Bancorp		$395		$389		$315		1.5		25.4			$1,481		$1,200		23.4
Average Balance Sheet Data
Loans		$32,285		$31,443		$30,157		2.7		7.1			$31,102		$29,447		5.6
Other earning assets		320		266		246		20.3		30.1			291		246		18.3
Goodwill		2,631		2,563		2,482		2.7		6.0			2,569		2,465		4.2
Other intangible assets		435		400		372		8.8		16.9			406		400		1.5
Assets		37,810		37,128		35,691		1.8		5.9			36,916		35,009		5.4
Noninterest-bearing deposits		1,121		1,064		1,078		5.4		4.0			1,099		1,037		6.0
Interest-bearing deposits		111		111		106		--		4.7			110		104		5.8
Total deposits		1,232		1,175		1,184		4.9		4.1			1,209		1,141		6.0
Total U.S. Bancorp shareholders’ equity		6,710		6,584		6,248		1.9		7.4			6,629		6,270		5.7
(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 $395 million of the Company’s net income in the fourth quarter of 2018, compared with $315 million in the fourth quarter of 2017. Total net revenue increased $82 million (5.5 percent) due to increases in net interest income of $12 million (2.0 percent) and total noninterest income of $70 million (8.1 percent). Net interest income increased year-over-year primarily due to growth in average loans as well as loan fees, partially offset by compression on loan rates in a rising rate environment. Total noninterest income increased year-over-year mainly due to higher credit and debit card revenue, higher corporate payment products revenue and higher merchant processing services driven by sales volumes. Total noninterest expense increased $74 million (10.6 percent) over the fourth quarter of 2017 principally due to higher net shared services expense, marketing and business development expense, and personnel expense driven business investments, higher production related incentives and increased staffing to support business development. The provision for credit losses decreased $24 million (8.3 percent) reflecting a favorable change in the reserve allocation partially offset by higher net charge-offs.

        6

TREASURY AND CORPORATE SUPPORT (a)
($ in millions)							Percent Change
	4Q		3Q		4Q		4Q18 vs			4Q18 vs			Full Year		Full Year		Percent
	2018		2018		2017		3Q18			4Q17			2018		2017		Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$98		$85		$121		15.3			(19.0	)		$366		$438		(16.4)
Noninterest income		338		270		269		25.2			25.7			1,077		948		13.6
Securities gains (losses), net		5		10		10		(50.0	)		(50.0	)		30		60		(50.0)
Total net revenue		441		365		400		20.8			10.3			1,473		1,446		1.9
Noninterest expense		331		174		1,115		90.2			(70.3	)		853		1,728		(50.6)
Other intangibles		--		--		--		--			--			--		--		--
Total noninterest expense		331		174		1,115		90.2			(70.3	)		853		1,728		(50.6)
Income before provision and taxes		110		191		(715)		(42.4	)		nm			620		(282)		nm
Provision for credit losses		8		(7)		(23)		nm			nm			3		(14)		nm
Income before income taxes		102		198		(692)		(48.5	)		nm			617		(268)		nm
Income taxes and taxable-equivalent adjustment		(201)		(40)		(1,070)		nm			81.2			(377)		(1,438)		73.8
Net income		303		238		378		27.3			(19.8	)		994		1,170		(15.0)
Net (income) loss attributable to noncontrolling interests		(6)		(7)		(4)		14.3			(50.0	)		(28)		(22)		(27.3)
Net income attributable to U.S. Bancorp		$297		$231		$374		28.6			(20.6	)		$966		$1,148		(15.9)
Average Balance Sheet Data
Loans		$5,782		$5,436		$5,362		6.4			7.8			$5,506		$5,351		2.9
Other earning assets		129,551		127,247		126,107		1.8			2.7			127,318		122,577		3.9
Goodwill		--		--		--		--			--			--		--		--
Other intangible assets		--		--		--		--			--			--		--		--
Assets		152,121		149,393		149,129		1.8			2.0			149,529		145,480		2.8
Noninterest-bearing deposits		2,544		2,394		2,511		6.3			1.3			2,486		2,340		6.2
Interest-bearing deposits		6,257		2,774		2,671		nm			nm			4,305		1,291		nm
Total deposits		8,801		5,168		5,182		70.3			69.8			6,791		3,631		87.0
Total U.S. Bancorp shareholders’ equity		19,306		18,795		19,189		2.7			.6			18,378		18,772		(2.1)
(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 $297 million in the fourth quarter of 2018, compared with $374 million in the fourth quarter of 2017. Total net revenue increased $41 million (10.3 percent) year-over-year driven by an increase of $64 million (22.9 percent) in total noninterest income, partially offset by a decrease in net interest income of $23 million (19.0 percent). Net interest income decreased year-over-year primarily due to higher funding costs and changes in funding mix, partially offset by growth in the investment portfolio. Total noninterest income increased year-over-year reflecting the impacts of the notable items in the fourth quarter of 2018 related to the gain on sale of the Company’s ATM servicing business offset by certain asset impairments including the FDIC covered loans sold in the fourth quarter of 2018. Total noninterest expense decreased $784 million (70.3 percent) year-over-year primarily due to the impact of notable items including $825 million of expenses incurred in 2017 related to a special employee bonus and contribution to its foundation as well as the settlement of a regulatory matter compared with $174 million of accrued expenses in the fourth quarter of 2018 related to severance charges and legal matters. In addition to these notable items, noninterest expense decreased due to a favorable change in net shared services expense allocated to manage the business and lower costs related to tax-advantaged projects, partially offset by lower FDIC assessment costs. The provision for credit losses was $31 million higher year-over-year due to higher recoveries in the prior year quarter.

Income tax expense increased by $869 million primarily due to the favorable impacts of tax reform on the Company’s tax related assets and liabilities in the fourth quarter of 2017. Income taxes are assessed to each line of business at a managerial rate of 25.0 percent starting in 2018 due to tax reform, compared with 36.4 percent in 2017. The residual tax expense or benefit to arrive at the consolidated effective tax rate is included in Treasury and Corporate Support.

        7

EX-99.2

U.S. Bancorp 4Q18 Earnings Conference Call January 16, 2019 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. Deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price 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 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 the level of tariffs and other trade policies of the United States and its global trading partners; changes in customer behavior and preferences; breaches in data security; failures to safeguard personal information; 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.

4Q18 Highlights * Taxable-equivalent basis; see slide 26 for calculation ** Excluding the impact of student loans sold in 2Q18 and FDIC covered loans sold in 4Q18, average total loans grew 2.6% vs. 4Q17 and 1.5% vs. 3Q18

Performance Ratios Efficiency Ratio** & Net Interest Margin Net interest margin on a taxable-equivalent basis * Excluding notable items; see slides 26 and 27 for calculations ** Non-GAAP; see slides 26 and 27 for calculations Return on Average Common Equity Return on Tangible Common Equity** Return on Average Assets 69.8% 56.3% 1.46% 1.59% 14.7% 15.8% 18.8% 20.2%

Average Loans +0.9% linked quarter +1.4% year-over-year On a linked quarter basis, average total loan growth was driven by growth in residential mortgages and total commercial loans. On a year-over-year basis, growth in average total loans was driven by residential mortgages, total commercial loans, credit card loans and retail leasing. This growth was partially offset by a decrease in total commercial real estate loans due to elevated paydowns. $ in billions

Average Deposits +1.3% linked quarter -1.4% year-over-year $ in billions Interest-bearing Deposits On a linked quarter basis, average noninterest-bearing deposits were essentially flat reflecting seasonal growth in Wealth Management and Investment Services balances offset by decreases in Corporate and Commercial Banking balances. On a year-over-year basis, average noninterest-bearing deposits decreased 6.2 percent driven by decreases in business deposits within Corporate and Commercial Banking and corporate trust balances within Wealth Management and Investment Services. On both a linked quarter and year-over-year basis, growth in time deposits reflects the management of those deposits as an alternative to other funding sources based on relative pricing and liquidity characteristics. Linked quarter growth also reflects consumer customers’ migration to certificates of deposits for higher yields.

Credit Quality $ in millions NCO Ratio +3 bps QoQ +3 bps YoY NPAs -1.5% QoQ -17.6% YoY

Earnings Summary

Notable Items 4Q18 notable items include: $340 million gain on sale of ATM servicing business $264 million in charges for asset impairments related to sale of FDIC covered loans and certain other assets $174 million in severance charges and legal accruals $140 million favorable adjustment to deferred tax assets and liabilities related to tax reform and other tax adjustments $ in millions

Net Interest Income Linked Quarter Net interest income growth was primarily driven by the impact of higher interest rates and earning assets growth, partially offset by higher rates on deposits and funding mix shift. The net interest margin was flat reflecting the impact of higher rates on assets and higher interest recoveries, offset by deposit and funding mix as well as higher cash balances. Year-over-Year Growth in net interest income was principally driven by the impact of rising interest rates, earning assets growth and higher yields on securities. This growth was partially offset by higher rates on deposits and funding mix shift. The increase in the net interest margin was primarily due to higher interest rates, partially offset by deposit and funding mix, lower loan spreads due to mix, higher cash balances and the impact of tax reform. $ in millions Net interest income on a taxable-equivalent basis; see slide 26 for calculation +1.5% linked quarter +3.2% 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 All other = commercial products, investment products fees, securities gains (losses) and other $2,370 $2,418 $2,498 Linked Quarter Payments revenue growth was driven by seasonally higher sales volumes in credit and debit card revenue, partially offset by seasonally lower corporate payment products revenue. Service charges revenue decreased, reflecting the sale of the Company’s ATM servicing business resulting in lower ATM processing services fees. Year-over-Year Strong payments revenue growth reflects higher sales volumes across all businesses. Solid growth in trust and investment management fees was driven by business growth. Mortgage banking revenue decreased primarily due to lower mortgage production. ATM processing services revenue decreased due to the sale of the Company’s ATM servicing business. +3.3% linked quarter +0.2% excluding notable items +5.4% year-over-year +2.2% excluding notable items

Noninterest Expense Linked Quarter Noninterest expense increased primarily due to an increase in compensation expense, seasonally higher professional services expense, and growth in other noninterest expense. Other noninterest expense growth reflects seasonally higher amortization costs related to tax-advantaged projects. Noninterest expense growth was partially offset by lower FDIC assessment costs driven by the elimination of the surcharge in 4Q18. Year-over-Year Excluding the impact of notable items, noninterest expense increased due to an increase in compensation expense driven by the impact of hiring to support business growth and compliance programs, merit increases, and higher variable compensation related to business production. Excluding the impact of notable items, the decrease in other noninterest expense reflects lower costs related to tax-advantaged projects, lower FDIC assessment costs and a reduction in mortgage servicing costs. $ in millions PPS = postage, printing and supplies $3,899 $3,044 $3,280 +7.8% linked quarter +2.0% excluding notable items -15.9% year-over-year +1.0% excluding notable items

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

Appendix

Average Loans vs. 4Q17 Average total loans increased by $3.9 billion, or 1.4% Average residential mortgage loans increased by $4.8 billion, or 8.1% Average commercial loans increased by $3.0 billion, or 3.0% Average credit card loans increased by $1.2 billion, or 5.6% Average commercial real estate loans decreased by $0.9 billion, or 2.1% vs. 3Q18 Average total loans increased by $2.6 billion, or 0.9% Average residential mortgage loans increased by $2.4 billion, or 3.9% Average commercial loans increased by $1.5 billion, or 1.5% Key Points Year-over-Year Growth 2.6% 2.3% 1.1% 1.2% 1.4% Covered Commercial CRE Res Mtg Retail Credit Card $278.6 $279.8 $279.4 6.0% $283.7 Average Loans ($bn) $281.1

Average Deposits Key Points Average Deposits ($bn) vs. 4Q17 Average total deposits decreased by $4.8 billion, or 1.4% Average low-cost deposits (NIB, interest checking, savings and money market) declined $9.8 billion, or 3.3% vs. 3Q18 Average total deposits increased by $4.2 billion, or 1.3% Average low-cost deposits increased by $0.3 billion, or 0.1% Year-over-Year Growth 3.0% 1.9% 1.1% (1.5%) (1.4%) Time Money Market Checking and Savings Noninterest-bearing $334.4 $339.2 $334.6 $334.8 $330.1

Credit Quality – Commercial Loans Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm4Q173Q184Q18 Average Loans$97,558$99,048$100,515 30-89 Delinquencies0.26%0.23%0.31% 90+ Delinquencies0.06%0.06%0.07% Nonperforming Loans0.26%0.22%0.20% Linked Quarter Growth 1.0% (0.1%) 0.9% 0.7% 1.5% Linked quarter growth was modest at 1.5%, while line utilization remained relatively stable Net charge-offs remained flat linked quarter and higher year-over-year due to large recoveries in 4Q17

Investor $19,047 Owner Occupied $9,883 A&D Const $328 Multi-family $4,088 Retail $416 Residential Construction $2,144 Office $1,051 Other $2,502 Resi Land $690 $mm4Q173Q184Q18 Average Loans$41,009$39,542$40,149 30-89 Delinquencies0.09%0.08%0.18% 90+ Delinquencies0.01%0.01%0.00% Nonperforming Loans0.35%0.26%0.29% Performing TDRs*$138$222$164 Credit Quality – Commercial Real Estate Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points * TDR = troubled debt restructuring Linked Quarter Growth (1.5%) (1.6%) (1.3%) (0.8%) 1.5% Average loans increased 1.5% on a linked quarter basis, while down year-over-year due to high market liquidity resulting in continued early payoffs Credit quality remained strong and stable; nonperforming loans remain low

Credit Quality – Residential Mortgage Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm4Q173Q184Q18 Average Loans$59,639$62,042$64,476 30-89 Delinquencies0.33%0.27%0.27% 90+ Delinquencies0.22%0.19%0.18% Nonperforming Loans0.74%0.50%0.46% * Excludes GNMA loans, whose repayments are insured by the FHA or guaranteed by the Department of VA ($1,639 million in 4Q18) Linked Quarter Growth 1.0% 0.9% 1.1% 2.0% 3.9% Originations continued to be high credit quality (weighted average FICO of 760, weighted average LTV of 72%) 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

Credit Quality – Credit Card Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm4Q173Q184Q18 Average Loans$21,218$21,774$22,396 30-89 Delinquencies1.37%1.42%1.39% 90+ Delinquencies1.28%1.18%1.25% Nonperforming Loans0.00%0.00%0.00% Linked Quarter Growth 1.4% 0.3% (0.3%) 2.6% 2.9% Year-over-year average loan growth of 5.6% was driven by high credit quality originations The commitment weighted average FICO on new originations remained strong at 763 Charge-offs were relatively stable year-over-year

Credit Quality – Home Equity Average Loans ($mm) and Net Charge-offs Ratio Key Points Linked Quarter Growth 0.0% (0.6%) (0.9%) (0.3%) 0.4% 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 due to continued strength in home values Key Statistics Key Statistics $mm4Q173Q184Q18 Average Loans$16,299$16,000$16,065 30-89 Delinquencies0.48%0.45%0.56% 90+ Delinquencies0.28%0.32%0.35% Nonperforming Loans0.77%0.78%0.90% Loans: 11% Wtd Avg LTV*: 78% Wtd Avg FICO*: 748 Lines: 89% Wtd Avg LTV*: 71% Wtd Avg FICO*: 753 *LTV and FICO at origination

Credit Quality – Retail Leasing Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm4Q173Q184Q18 Average Loans$7,982$8,383$8,489 30-89 Delinquencies0.41%0.38%0.43% 90+ Delinquencies0.03%0.02%0.04% Nonperforming Loans0.10%0.13%0.14% * Manheim Used Vehicle Value Index source: www.manheimconsulting.com, January 1995 = 100, quarter value = average monthly ending values Linked Quarter Growth 2.8% 0.0% 2.1% 2.9% 1.3% Continued high-quality originations during 4Q18 (weighted average FICO of 783) Delinquencies and net charge-offs remained at low levels

Credit Quality – Other Retail Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm4Q173Q184Q18 Average Loans$32,856$31,520$31,587 30-89 Delinquencies0.80%0.83%0.87% 90+ Delinquencies0.15%0.14%0.15% Nonperforming Loans0.10%0.12%0.13% Linked Quarter Growth 2.6% 0.1% (4.9%) 0.8% 0.2% Linked quarter average loans were essentially flat while the decrease year-over-year was primarily driven by the 2Q18 student loan portfolio sale Net charge-offs, delinquencies and nonperforming loans were all relatively stable and consistent with the low levels experienced in recent quarters

Credit Quality – Auto Loans Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm4Q173Q184Q18 Average Loans$18,754$18,563$18,500 30-89 Delinquencies0.95%1.00%1.04% 90+ Delinquencies0.08%0.08%0.09% Nonperforming Loans0.12%0.14%0.14% Direct: 4% Wtd Avg FICO: 746 NCO: 0.18% Indirect: 96% Wtd Avg FICO: 774 NCO: 0.49% Auto loans are included in Other Retail category Linked Quarter Growth 4.1% 0.6% (1.4%) (0.2%) (0.3)% New balances continue to be driven by high quality originations in the Indirect channel (weighted average FICO of 782) Late stage delinquencies remained stable while net charge-offs showed a seasonal increase

Non-GAAP Financial Measures * Preliminary data. Subject to change prior to filings with applicable regulatory agencies. (1) – see slide 28 for corresponding note

Non-GAAP Financial Measures (2), (3), (4), (5) – see slide 28 for corresponding notes

Non-GAAP Financial Measures (1), (5) – see slide 28 for corresponding notes

Notes Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements. 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. Notable items related to noninterest income for the three months ended December 31, 2018 include: $340 million gain on sale of ATM servicing business and $264 million of asset impairments. Notable items related to noninterest expense for the three months ended December 31, 2018 include: $174 million severance charges and legal accruals. Notable items related to noninterest expense for the three months ended December 31, 2017 include: $608 million legal and regulatory accrual, $150 million contribution to the U.S. Bank Foundation and $67 million special one-time bonus to certain eligible employees. Notable items for the three months ended December 31, 2018 include: $271 million (after-tax) gain on sale of ATM servicing business, $210 million (after-tax) of asset impairments, $139 million (after-tax) severance charges and legal accruals, $120 million reduction in income tax expense due to tax reform legislation estimate changes and $3 million noncontrolling interest adjustment. Notable items for the three months ended December 31, 2017 include: $910 million reduction in income tax expense due to tax reform legislation, $608 million legal and regulatory accrual, $105 million (after-tax) contribution to the U.S. Bank Foundation and $47 million (after-tax) special one-time bonus to certain eligible employees.

U.S. Bancorp 4Q18 Earnings Conference Call January 16, 2019