8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 15, 2021

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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock, $.01 par value per share	USB	New York Stock Exchange
Depositary Shares (each representing 1/100th interest in a share of Series A Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrA	New York Stock Exchange
Depositary Shares (each representing 1/1,000th interest in a share of Series B Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrH	New York Stock Exchange
Depositary Shares (each representing 1/1,000th interest in a share of Series F Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrM	New York Stock Exchange
Depositary Shares (each representing 1/1,000th interest in a share of Series K Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrP	New York Stock Exchange
Depositary Shares (each representing 1/1,000th interest in a share of Series L Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrQ	New York Stock Exchange
Depositary Shares (each representing 1/1,000th interest in a share of Series M Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrR	New York Stock Exchange
0.850% Medium-Term Notes, Series X (Senior), due June 7, 2024	USB/24B	New York Stock Exchange

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

Emerging growth company  ☐

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

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On April 15, 2021, U.S. Bancorp (the “Company”) issued a press release reporting quarter-ended March 31, 2021 results, and posted on its website its 1Q21 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 1Q21 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated herein by reference. The information included in the 1Q21 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 1Q21 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 April 15, 2021, deemed “filed” under the Securities Exchange Act of 1934.

99.2 1Q21 Earnings Conference Call Presentation, deemed “furnished” under the Securities Exchange Act of 1934.

 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

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/    Lisa R. Stark

Lisa R. Stark

Executive Vice President and
Controller

DATE: April 15, 2021

EX-99.1

Exhibit 99.1

	U.S. Bancorp Reports First Quarter 2021 Results • Net revenue of $5.5 billion and net income of $2.3 billion • Return on average assets of 1.69% and return on average common equity of 19.0% • Common Equity Tier 1 capital ratio of 9.9% and strong levels of liquidity
1Q21 Key Financial Data	1Q21 Highlights

PROFITABILITY METRICS	1Q21	4Q20	1Q20	•  Net income of $2,280 million and diluted earnings per common share of $1.45 •  Return on average assets of 1.69% and return on average common equity of 19.0% •  Net revenue of $5,470 million, including $3,089 million of net interest income and $2,381 million of noninterest income •  Average total earning assets growth of 11.2% year-over-year •  Average total deposits growth of 17.5% year-over-year •  Net charge-off ratio of 0.31% in 1Q21 compared with 0.58% in 4Q20 and 0.53% in the 1Q20 •  Allowance for credit losses declined $1,050 million during the quarter given improving economic outlook and credit trends •  Nonperforming assets decreased 7.4% on a linked quarter basis and increased 27.1% year-over year •  CET1 capital ratio increased to 9.9% at March 31, 2021, compared with 9.7% at December 31, 2020
Return on average assets (%)	1.69	1.10	.95
Return on average common equity (%)	19.0	12.1	9.7
Return on tangible common  equity (%) (a)	24.3	15.6	12.6
Net interest margin (%)	2.50	2.57	2.91
Efficiency ratio (%) (a)	62.1	58.8	58.0
INCOME STATEMENT (b)	1Q21	4Q20	1Q20
Net interest income (taxable-equivalent basis)	$3,089	$3,201	$3,247
Noninterest income	$2,381	$2,550	$2,525
Net income attributable to U.S. Bancorp	$2,280	$1,519	$1,171
Diluted earnings per common share	$1.45	$.95	$.72
Dividends declared per common share	$.42	$.42	$.42
BALANCE SHEET (b)	1Q21	4Q20	1Q20
Average total loans	$293,989	$302,308	$297,657
Average total deposits	$426,364	$422,413	$362,804
Net charge-off ratio	.31%	.58%	.53%
Book value per common share (period end)	$30.53	$31.26	$30.24
Basel III standardized CET1 (c)	9.9%	9.7%	9.0%
(a) See Non-GAAP Financial Measures reconciliation on page 16
(b) Dollars in millions, except per share data
(c) CET1 = Common equity tier 1 capital ratio

CEO Commentary

“A lot has changed in the last year, and our first quarter results were reflective of improving economic conditions and increasing consumer confidence and spending activity. Credit quality continues to perform better than we had expected – in fact, we incurred the bank’s lowest net charge-off ratio in recent decades – and an improved outlook for future performance allowed us to release over a billion dollars in reserves for credit losses. Our payments businesses are well-positioned to take advantage of the cyclical recovery and renewed business and consumer activity. In a similar fashion, we will continue to invest in capabilities to create growth, as evidenced by our advances in digital, our alliance with State Farm and our acquisition of talech, an important small business payments capability. These investments will drive revenue growth and further efficiencies that will create value for our business, customers and shareholders. Although the pandemic has disrupted most aspects of personal and professional life for more than a year, our employees have dedicated themselves to service and our company’s success. I appreciate their hard work and everything they continue to do to position us for better days ahead.”

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

In the Spotlight

U.S. Bank Access Commitment

U.S. Bank’s Access Commitment is a long-term approach bringing the strengths of the Company to help build wealth while redefining how the bank serves diverse communities and provides more opportunities for diverse employees. The focus is on supporting businesses owned by people of color, helping individuals and communities of color advance economically and enhancing career opportunities for employees and prospective employees. This includes a new fund focused on businesses owned by women of color, a mortgage program focused on homeownership education, a focus on building sustained wealth, financial inclusion partnerships, supply chain financing focused on diverse businesses, customized employee leadership development, and a change to how U.S. Bank fills open positions.

Most Ethical

For the seventh consecutive year, U.S. Bank has been named one of the World’s Most Ethical Companies by the Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices.

Best in Class Mobile Banking

The mobile check deposit feature of the U.S. Bank Mobile App has been recognized as best in class by Cornerstone Advisors in its 2021 Mobile Deposit Benchmark report. It was rated No. 1 in the industry for customer experience based on factors including deposit limits, real-time status updates, auto-capture functionality and more.

Most Admired

U.S. Bancorp was ranked No. 1 in the Superregional Banks category for the eleventh straight year in Fortune magazine’s annual World’s Most Admired Companies list. Fortune highlighted the following key U.S. Bancorp attributes that render success: Quality of Leadership, Value as a Long-term Investment, Soundness of Financial Position, and Wise Use of Corporate Assets.

        Investor contact: Jennifer Thompson, 612.303.0778 | Media contact: Jeff Shelman, 612.422.1423

U.S. Bancorp First Quarter 2021 Results

INCOME STATEMENT HIGHLIGHTS
($ in millions, except per-share data)							Percent Change
	1Q  2021		4Q  2020		1Q  2020		1Q21 vs  4Q20		1Q21 vs  1Q20
Net interest income		$3,063		$3,175		$3,223		(3.5)		(5.0)
Taxable-equivalent adjustment		26		26		24		--		8.3
Net interest income (taxable-equivalent basis)		3,089		3,201		3,247		(3.5)		(4.9)
Noninterest income		2,381		2,550		2,525		(6.6)		(5.7)
Total net revenue		5,470		5,751		5,772		(4.9)		(5.2)
Noninterest expense		3,379		3,364		3,316		.4		1.9
Income before provision and income taxes		2,091		2,387		2,456		(12.4)		(14.9)
Provision for credit losses		(827)		441		993		nm		nm
Income before taxes		2,918		1,946		1,463		49.9		99.5
Income taxes and taxable-equivalent adjustment		633		421		284		50.4		nm
Net income		2,285		1,525		1,179		49.8		93.8
Net (income) loss attributable to noncontrolling interests		(5)		(6)		(8)		16.7		37.5
Net income attributable to U.S. Bancorp		$2,280		$1,519		$1,171		50.1		94.7
Net income applicable to U.S. Bancorp common shareholders		$2,175		$1,425		$1,088		52.6		99.9
Diluted earnings per common share		$1.45		$.95		$.72		52.6		nm

Net income attributable to U.S. Bancorp was $2,280 million for the first quarter of 2021, which was 94.7 percent higher than the $1,171 million for the first quarter of 2020, and 50.1 percent higher than the $1,519 million for the fourth quarter of 2020. Diluted earnings per common share were $1.45 in the first quarter of 2021, compared with $0.72 in the first quarter of 2020 and $0.95 in the fourth quarter of 2020.

The increase in net income year-over-year was primarily due to lower provision for credit losses, partially offset by lower net interest income and noninterest income in addition to higher noninterest expense. Net interest income decreased 4.9 percent on a year-over-year tax-equivalent basis, primarily due to the impact of lower rates compared with a year ago and higher premium amortization in the investment portfolio related to mortgage refinancing activities, partially offset by the benefit of deposit and funding mix as well as higher loan fees related to the Small Business Administration (“SBA”) Paycheck Protection Program. Net interest margin declined from a year ago to 2.50 percent in the first quarter of 2021 primarily due to the impact of a lower yield curve on earning assets, higher levels of liquidity and higher premium amortization within the investment portfolio, partially offset by the net benefit of deposit repricing and funding composition and higher loan fees. Noninterest income decreased 5.7 percent compared with a year ago, driven by lower mortgage banking revenue, deposit service charges, securities gains and other noninterest income, partially offset by improvement in trust and investment management fees and commercial products revenue. Noninterest expense increased 1.9 percent reflecting increases in personnel expense, primarily related to performance-based incentive compensation, as well as technology and communications expense, partially offset by lower net occupancy and equipment expense, marketing and business development expense, and other noninterest expense.

Net income increased on a linked quarter basis primarily due to lower provision for credit losses, partially offset by lower net interest income and noninterest income. Net interest income decreased 3.5 percent primarily due to lower average loan balances, the yield impact of prepayments, and two less days in the quarter, partially offset by the benefit of deposit and funding mix as well as higher loan fees. The net interest margin decreased on a linked quarter basis primarily reflecting the dilutive impact of investment portfolio reinvestment rates, premium amortization and mortgage prepayments, partially offset by lower cash balances. Noninterest income decreased 6.6 percent compared with the fourth quarter of 2020 driven by a decline in mortgage banking revenue, credit and debit card revenue, and other noninterest income, partially offset by higher commercial product revenue. Noninterest expense was relatively flat, reflecting higher personnel expense related to incentive compensation and the seasonal impact of payroll taxes, partially offset by lower professional services expense, marketing and business development expense and other noninterest expense.

        2

U.S. Bancorp First Quarter 2021 Results

NET INTEREST INCOME
(Taxable-equivalent basis; $ in millions)							Change
	1Q 2021		4Q 2020		1Q 2020		1Q21 vs 4Q20		1Q21 vs 1Q20
Components of net interest income
Income on earning assets		$3,367		$3,505		$4,142		$(138)		$(775)
Expense on interest-bearing liabilities		278		304		895		(26)		(617)
Net interest income		$3,089		$3,201		$3,247		$(112)		$(158)
Average yields and rates paid
Earning assets yield		2.73%		2.81%		3.71%		(.08)%		(.98)%
Rate paid on interest-bearing liabilities		.31		.33		1.02		(.02)		(.71)
Gross interest margin		2.42%		2.48%		2.69%		(.06)%		(.27)%
Net interest margin		2.50%		2.57%		2.91%		(.07)%		(.41)%
Average balances
Investment securities (a)		$145,520		$133,430		$120,843		$12,090		$24,677
Loans		293,989		302,308		297,657		(8,319)		(3,668)
Earning assets		497,711		497,437		447,722		274		49,989
Interest-bearing liabilities		360,582		362,445		352,761		(1,863)		7,821

(a) Excludes unrealized gain (loss)

Net interest income on a taxable-equivalent basis in the first quarter of 2021 was $3,089 million, a decrease of $158 million (4.9 percent) compared with the first quarter of 2020. The decrease was primarily due to the impact of lower rates compared with a year ago and higher premium amortization related to securities prepayments, partially offset by the benefit of deposit and funding mix as well as higher loan fees. Average earning assets were $50.0 billion (11.2 percent) higher than the first quarter of 2020, reflecting increases of $24.7 billion (20.4 percent) in average investment securities and $23.7 billion (96.8 percent) in average other earning assets, including cash balances being maintained for liquidity given the current economic environment, while average total loans decreased $3.7 billion (1.2 percent) due to continued paydowns by corporate customers that accessed the capital markets last year.

Net interest income on a taxable-equivalent basis decreased $112 million (3.5 percent) on a linked quarter basis primarily due to a decline in average loan balances, the yield impact of prepayments on mortgage loans and securities and two less days in the quarter, partially offset by the benefit of deposit and funding mix as well as higher loan fees. Average earning assets were flat on a linked quarter basis, reflecting increases of $12.1 billion (9.1 percent) in average investment securities, partially offset by a decrease of $8.3 billion (2.8 percent) in average total loans, primarily due to continued paydowns by corporate customers, as well as a decrease of $4.7 billion (8.8 percent) in average other earning assets driven by lower cash balances on a linked quarter basis.

Net interest margin in the first quarter of 2021 was 2.50 percent, compared with 2.91 percent in the first quarter of 2020 and 2.57 percent in the fourth quarter of 2020. The decrease in the net interest margin from the prior year was primarily due to the impact of a lower yield curve on earning assets, higher premium amortization within the investment portfolio and decisions to maintain higher levels of liquidity, partially offset by the net benefit of deposit repricing and funding composition and higher loan fees. The decrease in net interest margin on a linked quarter basis reflects the dilutive impact of investment portfolio reinvestment rates, premium amortization and mortgage prepayments, partially offset by lower cash balances.

Given the current interest rates, we believe the first quarter will be the low point for net interest income with opportunity for growth in future quarters.

The increase in average investment securities on a linked quarter and year-over-year basis was due to purchases of mortgage-backed, U.S. Treasury and state and political securities net of prepayments and maturities.

        3

U.S. Bancorp First Quarter 2021 Results

AVERAGE LOANS
($ in millions)							Percent Change
	1Q 2021		4Q 2020		1Q 2020		1Q21 vs 4Q20			1Q21 vs 1Q20
Commercial		$96,757		$100,863		$100,329		(4.1	)		(3.6	)
Lease financing		5,334		5,558		5,658		(4.0	)		(5.7	)
Total commercial		102,091		106,421		105,987		(4.1	)		(3.7	)
Commercial mortgages		27,968		29,004		29,523		(3.6	)		(5.3	)
Construction and development		10,818		11,094		10,555		(2.5	)		2.5
Total commercial real estate		38,786		40,098		40,078		(3.3	)		(3.2	)
Residential mortgages		75,201		76,809		70,892		(2.1	)		6.1
Credit card		21,144		21,937		23,836		(3.6	)		(11.3	)
Retail leasing		7,975		8,299		8,474		(3.9	)		(5.9	)
Home equity and second mortgages		12,062		12,816		14,838		(5.9	)		(18.7	)
Other		36,730		35,928		33,552		2.2			9.5
Total other retail		56,767		57,043		56,864		(.5	)		(.2	)
Total loans		$293,989		$302,308		$297,657		(2.8	)		(1.2	)

Average total loans for the first quarter of 2021 were $3.7 billion (1.2 percent) lower than the first quarter of 2020. The decrease was primarily due to lower total commercial loans (3.7 percent) driven by continued paydowns by corporate customers that accessed the capital markets last year, lower credit card loans (11.3 percent) driven by higher customer payment rates given their excess liquidity from the government stimulus, and lower home equity and second mortgages (18.7 percent) as more customers chose to refinance their existing first lien residential mortgage balances during the prior year due to the low interest rate environment. These decreases were partially offset by growth in residential mortgages (6.1 percent) driven by loan repurchases from the Government National Mortgage Association (“GNMA”), as well as growth in other retail loans (9.5 percent) driven by growth in installment loans due to the impact of COVID-19 on recreational vehicle sales.

Average total loans were $8.3 billion (2.8 percent) lower than the fourth quarter of 2020 primarily driven by lower total commercial loans (4.1 percent), lower residential mortgages (2.1 percent), and lower home equity and second mortgages (5.9 percent), all as a result of customer paydowns.

        4

U.S. Bancorp First Quarter 2021 Results

AVERAGE DEPOSITS
($ in millions)							Percent Change
	1Q  2021		4Q  2020		1Q  2020		1Q21 vs 4Q20			1Q21 vs 1Q20
Noninterest-bearing deposits	$	118,352	$	115,148	$	74,142		2.8			59.6
Interest-bearing savings deposits
Interest checking		97,385		91,384		77,359		6.6			25.9
Money market savings		124,825		127,390		121,946		(2.0	)		2.4
Savings accounts		58,848		55,730		48,048		5.6			22.5
Total savings deposits		281,058		274,504		247,353		2.4			13.6
Time deposits		26,954		32,761		41,309		(17.7	)		(34.8)
Total interest-bearing deposits		308,012		307,265		288,662		.2			6.7
Total deposits	$	426,364	$	422,413	$	362,804		.9			17.5

Average total deposits for the first quarter of 2021 were $63.6 billion (17.5 percent) higher than the first quarter of 2020, including approximately $10 billion related to the acquisition of deposit balances from State Farm Bank in the fourth quarter of 2020. Average noninterest-bearing deposits increased $44.2 billion (59.6 percent) across all business lines. Average total savings deposits were $33.7 billion (13.6 percent) higher year-over-year driven by Consumer and Business Banking and Wealth Management and Investment Services. Average time deposits were $14.4 billion (34.8 percent) lower than the prior year quarter primarily within Corporate and Commercial Banking. Changes in time deposits are largely related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics.

Average total deposits increased $4.0 billion (0.9 percent) from the fourth quarter of 2020. On a linked quarter basis, average noninterest-bearing deposits increased $3.2 billion (2.8 percent) driven by Corporate and Commercial Banking and Wealth Management and Investment Services. Average total savings deposits increased $6.6 billion (2.4 percent) compared with the fourth quarter of 2020 primarily due to increases in Consumer and Business Banking and Wealth Management and Investment Services. Average time deposits, which are managed based on funding needs, relative pricing and liquidity characteristics, decreased $5.8 billion (17.7 percent) on a linked quarter basis across all business lines.

The growth in average noninterest-bearing deposits and total average savings deposits year-over-year was primarily a result of the actions by the federal government to increase liquidity in the financial system, customers maintaining balance sheet liquidity by utilizing existing credit facilities and government stimulus programs.

        5

U.S. Bancorp First Quarter 2021 Results

NONINTEREST INCOME
($ in millions)							Percent Change
	1Q 2021		4Q 2020		1Q 2020		1Q21 vs 4Q20			1Q21 vs 1Q20
Credit and debit card revenue		$336		$362		$304		(7.2	)		10.5
Corporate payment products revenue		126		126		145		--			(13.1	)
Merchant processing services		318		311		337		2.3			(5.6	)
Trust and investment management fees		444		441		427		.7			4.0
Deposit service charges		161		165		209		(2.4	)		(23.0	)
Treasury management fees		147		143		143		2.8			2.8
Commercial products revenue		280		239		246		17.2			13.8
Mortgage banking revenue		299		468		395		(36.1	)		(24.3	)
Investment products fees		55		50		49		10.0			12.2
Securities gains (losses), net		25		34		50		(26.5	)		(50.0	)
Other		190		211		220		(10.0	)		(13.6	)
Total noninterest income		$2,381		$2,550		$2,525		(6.6	)		(5.7	)

First quarter noninterest income of $2,381 million was $144 million (5.7 percent) lower than the first quarter of 2020 primarily reflecting lower mortgage banking revenue, including a $145 million reduction in the fair value of mortgage servicing rights, net of hedging activities driven by the impact of prepayments on the servicing portfolio partially offset by higher production volume and related gain on sale margins compared with a year ago. During the past year, payment services revenue has been adversely affected by the impact of the pandemic on consumer spending, particularly related to travel and entertainment activities. However, consumer spending continues to strengthen across most sectors driven by government stimulus, local jurisdictions reducing restrictions and consumer behaviors normalizing. As a result, payments revenues are essentially flat compared with the first quarter of 2020. The components of payments revenue included higher credit and debit card revenue of $32 million (10.5 percent) driven by higher net interchange revenue related to sales volumes and higher prepaid fees as a result of government stimulus programs, more than offset by lower corporate payment products revenue of $19 million (13.1 percent) primarily due to lower business spending related to travel and entertainment and lower merchant processing services revenue of $19 million (5.6 percent) driven by lower sales volume and merchant fees. Deposit service charges decreased $48 million (23.0 percent) primarily due to lower consumer spending activities and higher consumer deposit levels related to government stimulus. Other noninterest income decreased $30 million (13.6 percent) primarily due to lower gains on sale of certain businesses and tax-advantaged investment syndication revenue in the first quarter of 2021, partially offset by higher retail leasing end of term residual gains. Partially offsetting the unfavorable impact of these fee categories, trust and investment management fees increased $17 million (4.0 percent) driven by business growth and favorable market conditions, while commercial products revenue increased $34 million (13.8 percent) primarily due to better market conditions and higher non-yield loan fees on unused commitments.

Noninterest income was $169 million (6.6 percent) lower in the first quarter of 2021 compared with the fourth quarter of 2020, reflecting lower mortgage banking revenue, payment services revenue and other noninterest income, partially offset by higher commercial product revenue. Mortgage banking revenue decreased $169 million (36.1 percent) due to the unfavorable net impact of the change in fair value of mortgage servicing rights, net of hedging activities, and lower production volume and related gain on sale margins. Payment services revenue decreased $19 million (2.4 percent) compared with the fourth quarter of 2020 primarily driven by lower credit and debit card revenue of $26 million (7.2 percent) due to seasonally lower sales volume and lower prepaid fees related to the timing of government stimulus. Other noninterest income decreased $21 million (10.0 percent) primarily due to lower tax-advantaged investment syndication revenue, partially offset by a gain on sale of a business. These decreases were partially offset by higher commercial products revenue of $41 million (17.2 percent) primarily due to higher corporate bond fees and trading revenue.

        6

U.S. Bancorp First Quarter 2021 Results

NONINTEREST EXPENSE
($ in millions)							Percent Change
	1Q 2021		4Q 2020		1Q 2020		1Q21 vs 4Q20			1Q21 vs 1Q20
Compensation	$	1,803	$	1,643	$	1,620		9.7			11.3
Employee benefits		384		302		352		27.2			9.1
Net occupancy and equipment		263		269		276		(2.2	)		(4.7	)
Professional services		98		123		99		(20.3	)		(1.0	)
Marketing and business development		48		105		74		(54.3	)		(35.1	)
Technology and communications		359		362		289		(.8	)		24.2
Postage, printing and supplies		69		74		72		(6.8	)		(4.2	)
Other intangibles		38		47		42		(19.1	)		(9.5	)
Other		317		439		492		(27.8	)		(35.6	)
Total noninterest expense	$	3,379	$	3,364	$	3,316		.4			1.9

First quarter noninterest expense of $3,379 million was $63 million (1.9 percent) higher than the first quarter of 2020 reflecting increases in compensation expense, employee benefits expense, and technology and communications expense, partially offset by lower net occupancy and equipment expense, marketing and business development expense, and other noninterest expense. Compensation expense increased $183 million (11.3 percent) compared with the first quarter of 2020 due to merit, revenue-related compensation driven by business production in mortgage banking, performance-based incentives, and stock-based compensation. Employee benefits expense increased $32 million (9.1 percent) primarily due to payroll taxes and related benefits, as well as higher medical claims expense compared with the first quarter of 2020. Technology and communications expense increased $70 million (24.2 percent) primarily due to higher call center volume related to prepaid cards and capital expenditures supporting business technology investments. These increases were partially offset by lower net occupancy and equipment expense of $13 million (4.7 percent) primarily due to branch optimization initiatives and lower marketing and business development expense of $26 million (35.1 percent) due to a reduction in travel as a result of COVID-19. In addition, other noninterest expense decreased $175 million (35.6 percent) primarily due to higher COVID-19 related accruals in the first quarter of 2020 including recognizing liabilities related to future delivery exposures related to merchant and airline processing.

Noninterest expense increased $15 million (0.4 percent) on a linked quarter basis reflecting higher compensation and employee benefits expense, mostly offset by lower professional services expense, marketing and business development expense and other noninterest expense. Compensation expense increased $160 million (9.7 percent) primarily due to higher performance-based incentives and seasonally higher stock-based compensation as well as seasonally higher employee benefits of $82 million (27.2 percent) related to payroll taxes and medical claims expense. Partially offsetting these increases, professional services expense decreased $25 million (20.3 percent) and marketing and business development expense decreased $57 million (54.3 percent) primarily due to a seasonal reduction in spending. Other noninterest expense decreased $122 million (27.8 percent) due to higher COVID-19 related accruals in the fourth quarter of 2020, including liabilities related to future delivery exposures associated with merchant and airline processing as well as lower costs related to tax-advantaged projects in the first quarter of 2021.

Provision for Income Taxes

The provision for income taxes for the first quarter of 2021 resulted in a tax rate of 21.7 percent on a taxable-equivalent basis (effective tax rate of 21.0 percent), compared with 19.4 percent on a taxable-equivalent basis (effective tax rate of 18.1 percent) in the first quarter of 2020, and a tax rate of 21.6 percent on a taxable-equivalent basis (effective tax rate of 20.6 percent) in the fourth quarter of 2020. The increase in the tax rate, on a taxable-equivalent basis, is due to the marginal impact of providing taxes on higher pretax earnings in the first quarter of 2021.

        7

U.S. Bancorp First Quarter 2021 Results

ALLOWANCE FOR CREDIT LOSSES
($ in millions)	1Q 2021			% (a)			4Q 2020			% (a)			3Q 2020			% (a)			2Q 2020			% (a)			1Q 2020			% (a)
Balance, beginning of period	$	8,010					$	8,010					$	7,890					$	6,590					$	4,491
Change in accounting principle (b)		--						--						--						--						1,499
Net charge-offs
Commercial		52			.22			142			.56			167			.60			105			.34			69			.28
Lease financing		4			.30			8			.57			11			.78			6			.43			5			.36
Total commercial		56			.22			150			.56			178			.61			111			.35			74			.28
Commercial mortgages		(12	)		(.17	)		82			1.12			85			1.13			19			.25			(1	)		(.01	)
Construction and development		5			.19			2			.07			(2	)		(.07	)		3			.11			(1	)		(.04	)
Total commercial real estate		(7	)		(.07	)		84			.83			83			.81			22			.22			(2	)		(.02	)
Residential mortgages		(5	)		(.03	)		(7	)		(.04	)		(3	)		(.02	)		(3	)		(.02	)		1			.01
Credit card		144			2.76			165			2.99			201			3.63			229			4.28			234			3.95
Retail leasing		1			.05			9			.43			20			.94			33			1.58			19			.90
Home equity and second mortgages		(2	)		(.07	)		(3	)		(.09	)		(2	)		(.06	)		--			--			1			.03
Other		36			.40			43			.48			38			.43			45			.54			66			.79
Total other retail		35			.25			49			.34			56			.39			78			.56			86			.61
Total net charge-offs		223			.31			441			.58			515			.66			437			.55			393			.53
Provision for credit losses		(827	)					441						635						1,737						993
Balance, end of period	$	6,960					$	8,010					$	8,010					$	7,890					$	6,590
Components
Allowance for loan losses	$	6,343					$	7,314					$	7,407					$	7,383					$	6,216
Liability for unfunded credit commitments		617						696						603						507						374
Total allowance for credit losses	$	6,960					$	8,010					$	8,010					$	7,890					$	6,590
Gross charge-offs	$	374					$	556					$	611					$	522					$	491
Gross recoveries	$	151					$	115					$	96					$	85					$	98
Allowance for credit losses as a percentage of Period-end loans		2.36						2.69						2.61						2.54						2.07
Nonperforming loans		617						654						678						737						809
Nonperforming assets		579						617						631						673						697
(a)  Annualized and calculated on average loan balances
(b)  Effective January 1, 2020, the Company adopted accounting guidance which changed impairment recognition of financial instruments to a model that is based on expected losses rather than incurred losses

        8

U.S. Bancorp First Quarter 2021 Results

The Company’s provision for credit losses for the first quarter of 2021 was a benefit of $827 million, which was $1,268 million lower than the prior quarter and $1,820 million lower than the first quarter of 2020. During the first quarter of 2021, factors affecting economic conditions, including passing of additional government stimulus, widespread vaccine availability in the U.S. and reduced levels of new virus cases, have shifted to a clear improving trend not present in the fourth quarter of 2020 or a year ago. In addition to these factors, expected loss estimates considered various factors including customer specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts designed to limit long term effects of the pandemic. Currently, consumer credit trends continue to perform better than expected, although select commercial portfolios continue to be monitored for structural shifts associated with the pandemic.

Total net charge-offs in the first quarter of 2021 were $223 million, compared with $441 million in the fourth quarter of 2020, and $393 million in the first quarter of 2020. The net charge-off ratio was 0.31 percent in the first quarter of 2021, compared with 0.58 percent in the fourth quarter of 2020 and 0.53 percent in the first quarter of 2020. Net charge-offs decreased $218 million (49.4 percent) compared with the fourth quarter of 2020 mainly due to lower total commercial and total commercial real estate net charge-offs. Net charge-offs decreased $170 million (43.3 percent) compared with the first quarter of 2020 primarily due to lower total commercial, credit card and total other retail net charge-offs.

Nonperforming assets were $1,202 million at March 31, 2021, compared with $1,298 million at December 31, 2020, and $946 million at March 31, 2020. The ratio of nonperforming assets to loans and other real estate was 0.41 percent at March 31, 2021, compared with 0.44 percent at December 31, 2020, and 0.30 percent at March 31, 2020. The year-over-year increase in nonperforming assets was primarily due to increases in total commercial and total commercial real estate nonperforming loans. Accruing loans 90 days or more past due were $476 million at March 31, 2021, compared with $477 million at December 31, 2020, and $579 million at March 31, 2020. The Company expects credit quality to return to more normalized levels throughout the remainder of the year as the economy rebounds and consumer spending resumes. However, some manageable levels of elevated nonperforming assets in certain industries and loan categories yet to recover from pandemic related impacts are expected.

The allowance for credit losses was $6,960 million at March 31, 2021, compared with $8,010 million at December 31, 2020, and $6,590 million at March 31, 2020. The decrease on a linked quarter basis was driven by improvement in the global economy combined with government stimulus programs and vaccine availability compared with the reserve build during 2020 driven by the concerns associated with the economic impact of COVID-19. The ratio of the allowance for credit losses to period-end loans was 2.36 percent at March 31, 2021, compared with 2.69 percent at December 31, 2020, and 2.07 percent at March 31, 2020. The ratio of the allowance for credit losses to nonperforming loans was 617 percent at March 31, 2021, compared with 654 percent at December 31, 2020, and 809 percent at March 31, 2020.

        9

U.S. Bancorp First Quarter 2021 Results

DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES
(Percent)	Mar 31 2021		Dec 31 2020		Sep 30 2020		Jun 30 2020		Mar 31 2020
Delinquent loan ratios - 90 days or more past due excluding nonperforming loans
Commercial		.06		.05		.06		.07		.06
Commercial real estate		.01		.01		--		--		--
Residential mortgages		.19		.18		.15		.16		.15
Credit card		.95		.88		.91		1.22		1.29
Other retail		.12		.15		.14		.16		.17
Total loans		.16		.16		.15		.18		.18
Delinquent loan ratios - 90 days or more past due including nonperforming loans
Commercial		.39		.42		.48		.45		.31
Commercial real estate		.94		1.15		.82		.48		.25
Residential mortgages		.54		.50		.46		.50		.49
Credit card		.95		.88		.91		1.22		1.29
Other retail		.42		.42		.40		.48		.45
Total loans		.54		.57		.53		.52		.44

ASSET QUALITY (a)
($ in millions)
	Mar 31 2021		Dec 31 2020		Sep 30 2020		Jun 30 2020		Mar 31 2020
Nonperforming loans
Commercial		$298		$321		$403		$403		$276
Lease financing		49		54		56		53		33
Total commercial		347		375		459		456		309
Commercial mortgages		266		411		323		188		89
Construction and development		90		39		7		7		12
Total commercial real estate		356		450		330		195		101
Residential mortgages		253		245		240		242		243
Credit card		--		--		--		--		--
Other retail		172		154		152		178		162
Total nonperforming loans		1,128		1,224		1,181		1,071		815
Other real estate		19		24		35		52		70
Other nonperforming assets		55		50		54		50		61
Total nonperforming assets		$1,202		$1,298		$1,270		$1,173		$946
Accruing loans 90 days or more past due		$476		$477		$461		$556		$579
Nonperforming assets to loans plus ORE (%)		.41		.44		.41		.38		.30
(a) Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due

        10

U.S. Bancorp First Quarter 2021 Results

COMMON SHARES
(Millions)	1Q			4Q		3Q		2Q		1Q
	2021			2020		2020		2020		2020
Beginning shares outstanding		1,507			1,506		1,506		1,506		1,534
Shares issued for stock incentive plans, acquisitions and other corporate purposes		3			1		--		--		3
Shares repurchased		(13	)		--		--		--		(31	)
Ending shares outstanding		1,497			1,507		1,506		1,506		1,506

CAPITAL POSITION
($ in millions)	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
	2021			2020			2020			2020			2020
Total U.S. Bancorp shareholders’ equity	$	51,678		$	53,095		$	52,565		$	51,850		$	51,532
Basel III Standardized Approach (a)
Common equity tier 1 capital	$	39,103		$	38,045		$	37,485		$	36,351		$	36,224
Tier 1 capital		45,517			44,474			43,916			42,781			42,651
Total risk-based capital		53,625			52,602			52,086			51,457			51,277
Common equity tier 1 capital ratio		9.9	%		9.7	%		9.4	%		9.0	%		9.0	%
Tier 1 capital ratio		11.5			11.3			11.0			10.6			10.5
Total risk-based capital ratio		13.5			13.4			13.1			12.8			12.7
Leverage ratio		8.4			8.3			8.3			8.0			8.8
Tangible common equity to tangible assets (b)		6.6			6.9			7.0			6.7			6.7
Tangible common equity to risk-weighted assets (b)		9.1			9.5			9.3			9.0			8.9
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (b)		9.5			9.3			9.0			8.7			8.6
(a) Amounts and ratios calculated in accordance with transitional regulatory requirements related to the current expected credit losses methodology
(b) See Non-GAAP Financial Measures reconciliation on page 16

Total U.S. Bancorp shareholders’ equity was $51.7 billion at March 31, 2021, compared with $53.1 billion at December 31, 2020, and $51.5 billion at March 31, 2020. Beginning in March of 2020 and continuing through the remainder of 2020, the Company suspended all common stock repurchases except for those done exclusively in connection with its stock-based compensation programs. This action was initially taken to maintain strong capital levels given the impact and uncertainties of COVID-19 on the economy and global markets. Due to continued economic uncertainty, the Federal Reserve Board implemented measures beginning in the fourth quarter of 2020 and extending through the first quarter of 2021, restricting capital distributions of all large bank holding companies, including U.S. Bancorp. These restrictions include capping common stock dividends at existing rates and limiting the aggregate amount of common stock dividends and share repurchases to an amount not exceeding the average net income of the four preceding calendar quarters. Based on the results of the December 2020 Federal Reserve Stress Test, the Company announced its Board of Directors had approved an authorization to repurchase up to $3.0 billion of its common stock beginning January 1, 2021.

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 9.9 percent at March 31, 2021, compared with 9.7 percent at December 31, 2020, and 9.0 percent at March 31, 2020. The Company’s common equity tier 1 capital to risk-weighted assets ratio, reflecting the full implementation of the current expected credit losses methodology was 9.5 percent at March 31, 2021, compared with 9.3 percent at December 31, 2020, and 8.6 percent at March 31, 2020.

        11

U.S. Bancorp First Quarter 2021 Results

  Investor Conference Call

On Thursday, April 15, 2021, at 10 a.m. CT, Chairman, President and Chief Executive Officer Andy Cecere and Vice Chair and Chief Financial Officer Terry Dolan 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 2351343. For those unable to participate during the live call, a recording will be available at approximately 1 p.m. CT on Thursday, April 15 and will be accessible until Thursday, April 22 at 10:59 p.m. CT. 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 2351343.

  About U.S. Bancorp

U.S. Bancorp, with nearly 70,000 employees and $553 billion in assets as of March 31, 2021, is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. The Minneapolis-based bank blends its relationship teams, branches and ATM network with digital tools that allow customers to bank when, where and how they prefer. U.S. Bank is committed to serving its millions of retail, business, wealth management, payment, commercial, corporate, and investment customers across the country and around the world as a trusted and responsible financial partner. This commitment continues to earn a spot on the Ethisphere Institute’s World’s Most Ethical Companies list and puts U.S. Bank in the top 5% of global companies assessed on the CDP A List for climate change action. Visit usbank.com for more.

  Forward-looking Statements

“Safe Harbor” Statement under 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. The COVID-19 pandemic is adversely affecting U.S. Bancorp, its customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity, and prospects is uncertain. Continued 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. 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; further increases in unemployment 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; civil unrest; 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 reputation 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, 2020, 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. In addition, factors other than these risks also could adversely affect U.S. Bancorp’s results, and the reader should not consider these risks to be a complete set of all potential risks or uncertainties. Forward-looking statements speak only as of the date hereof, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.

        12

U.S. Bancorp First Quarter 2021 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

• Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology, and

• 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 currently effective or defined in banking regulations. In addition, certain of these measures differ from currently effective capital ratios defined by banking regulations principally in that the currently effective ratios, which are subject to certain transitional provisions, temporarily exclude the impact of the 2020 adoption of accounting guidance related to impairment of financial instruments based on the current expected credit losses methodology. As a result, these capital measures disclosed by the Company may be considered non-GAAP financial measures. 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

U.S. Bancorp First Quarter 2021 Results

CONSOLIDATED STATEMENT OF INCOME
	Three Months Ended
(Dollars and Shares in Millions, Except Per Share Data)	March 31,
(Unaudited)	2021			2020
Interest Income
Loans		$2,724			$3,311
Loans held for sale		67			44
Investment securities		517			692
Other interest income		33			69
Total interest income		3,341			4,116
Interest Expense
Deposits		85			525
Short-term borrowings		16			71
Long-term debt		177			297
Total interest expense		278			893
Net interest income		3,063			3,223
Provision for credit losses		(827	)		993
Net interest income after provision for credit losses		3,890			2,230
Noninterest Income
Credit and debit card revenue		336			304
Corporate payment products revenue		126			145
Merchant processing services		318			337
Trust and investment management fees		444			427
Deposit service charges		161			209
Treasury management fees		147			143
Commercial products revenue		280			246
Mortgage banking revenue		299			395
Investment products fees		55			49
Securities gains (losses), net		25			50
Other		190			220
Total noninterest income		2,381			2,525
Noninterest Expense
Compensation		1,803			1,620
Employee benefits		384			352
Net occupancy and equipment		263			276
Professional services		98			99
Marketing and business development		48			74
Technology and communications		359			289
Postage, printing and supplies		69			72
Other intangibles		38			42
Other		317			492
Total noninterest expense		3,379			3,316
Income before income taxes		2,892			1,439
Applicable income taxes		607			260
Net income		2,285			1,179
Net (income) loss attributable to noncontrolling interests		(5	)		(8	)
Net income attributable to U.S. Bancorp		$2,280			$1,171
Net income applicable to U.S. Bancorp common shareholders		$2,175			$1,088
Earnings per common share		$1.45			$.72
Diluted earnings per common share		$1.45			$.72
Dividends declared per common share		$.42			$.42
Average common shares outstanding		1,502			1,518
Average diluted common shares outstanding		1,503			1,519

        14

CONSOLIDATED ENDING BALANCE SHEET
(Dollars in Millions)	March 31, 2021			December 31, 2020			March 31, 2020
Assets		(Unaudited)						(Unaudited)
Cash and due from banks		$43,501			$62,580			$46,805
Available-for-sale investment securities		156,003			136,840			123,681
Loans held for sale		8,991			8,761			4,623
Loans
Commercial		104,158			102,871			126,317
Commercial real estate		38,432			39,311			40,980
Residential mortgages		73,624			76,155			71,175
Credit card		20,872			22,346			22,781
Other retail		57,341			57,024			57,052
Total loans		294,427			297,707			318,305
Less allowance for loan losses		(6,343	)		(7,314	)		(6,216	)
Net loans		288,084			290,393			312,089
Premises and equipment		3,388			3,468			3,660
Goodwill		9,905			9,918			9,836
Other intangible assets		3,462			2,864			2,629
Other assets		40,041			39,081			39,586
Total assets		$553,375			$553,905			$542,909
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing		126,754			$118,089			$91,432
Interest-bearing		307,007			311,681			303,422
Total deposits		433,761			429,770			394,854
Short-term borrowings		12,098			11,766			26,344
Long-term debt		37,419			41,297			52,298
Other liabilities		17,789			17,347			17,251
Total liabilities		501,067			500,180			490,747
Shareholders’ equity
Preferred stock		5,968			5,983			5,984
Common stock		21			21			21
Capital surplus		8,487			8,511			8,452
Retained earnings		65,740			64,188			62,544
Less treasury stock		(26,443	)		(25,930	)		(25,972	)
Accumulated other comprehensive income (loss)		(2,095	)		322			503
Total U.S. Bancorp shareholders’ equity		51,678			53,095			51,532
Noncontrolling interests		630			630			630
Total equity		52,308			53,725			52,162
Total liabilities and equity		$553,375			$553,905			$542,909

        15

NON-GAAP FINANCIAL MEASURES
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in Millions, Unaudited)	2021			2020			2020			2020			2020
Total equity		$52,308			$53,725			$53,195			$52,480			$52,162
Preferred stock		(5,968	)		(5,983	)		(5,984	)		(5,984	)		(5,984	)
Noncontrolling interests		(630	)		(630	)		(630	)		(630	)		(630	)
Goodwill (net of deferred tax liability) (1)		(8,992	)		(9,014	)		(8,992	)		(8,954	)		(8,958	)
Intangible assets, other than mortgage servicing rights		(675	)		(654	)		(676	)		(678	)		(742	)
Tangible common equity (a)		36,043			37,444			36,913			36,234			35,848
Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements related to the current expected credit losses methodology implementation		39,103			38,045			37,485			36,351			36,224
Adjustments (2)		(1,732	)		(1,733	)		(1,733	)		(1,702	)		(1,377	)
Common equity tier 1 capital, reflecting the full implementation of the current expected credit losses methodology (b)		37,371			36,312			35,752			34,649			34,847
Total assets		553,375			553,905			540,455			546,652			542,909
Goodwill (net of deferred tax liability) (1)		(8,992	)		(9,014	)		(8,992	)		(8,954	)		(8,958	)
Intangible assets, other than mortgage servicing rights		(675	)		(654	)		(676	)		(678	)		(742	)
Tangible assets (c)		543,708			544,237			530,787			537,020			533,209
Risk-weighted assets, determined in accordance with prescribed regulatory capital requirements effective for the Company (d)		396,351	*		393,648			397,657			401,832			404,627
Adjustments (3)		(1,440)	*		(1,471	)		(1,449	)		(1,394	)		(958	)
Risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (e)		394,911	*		392,177			396,208			400,438			403,669
Ratios *
Tangible common equity to tangible assets (a)/(c)		6.6	%		6.9	%		7.0	%		6.7	%		6.7	%
Tangible common equity to risk-weighted assets (a)/(d)		9.1			9.5			9.3			9.0			8.9
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (b)/(e)		9.5			9.3			9.0			8.7			8.6
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2021			2020			2020			2020			2020
Net income applicable to U.S. Bancorp common shareholders		$2,175			$1,425			$1,494			$614			$1,088
Intangibles amortization (net-of-tax)		30			37			35			34			33
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization		2,205			1,462			1,529			648			1,121
Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangible amortization (f)		8,943			5,816			6,083			2,606			4,509
Average total equity		53,359			53,801			53,046			52,871			51,776
Average preferred stock		(6,213)			(6,217)			(5,984)			(5,984)			(5,984)
Average noncontrolling interests		(630)			(630)			(630)			(630)			(630)
Average goodwill (net of deferred tax liability) (1)		(9,010)			(9,003)			(8,975)			(8,960)			(8,825)
Average intangible assets, other than mortgage servicing rights		(649)			(673)			(711)			(706)			(688)
Average tangible common equity (g)		36,857			37,278			36,746			36,591			35,649
Return on tangible common equity (f)/(g)		24.3	%		15.6	%		16.6	%		7.1	%		12.6	%
Net interest income		$3,063			$3,175			$3,227			$3,200			$3,223
Taxable-equivalent adjustment (4)		26			26			25			24			24
Net interest income, on a taxable-equivalent basis		3,089			3,201			3,252			3,224			3,247
Net interest income, on a taxable-equivalent basis (as calculated above)		3,089			3,201			3,252			3,224			3,247
Noninterest income		2,381			2,550			2,712			2,614			2,525
Less: Securities gains (losses), net		25			34			12			81			50
Total net revenue, excluding net securities gains (losses) (h)		5,445			5,717			5,952			5,757			5,722
Noninterest expense (i)		3,379			3,364			3,371			3,318			3,316
Efficiency ratio (i)/(h)		62.1%			58.8%			56.6%			57.6%			58.0%

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

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

(2) Includes the estimated increase in the allowance for credit losses related to the adoption of the current expected credit losses methodology net of deferred taxes.

(3) Includes the impact of the estimated increase in the allowance for credit losses related to the adoption of the current expected credit losses methodology.

(4) Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.

        16

LINE OF BUSINESS FINANCIAL PERFORMANCE (a)
($ in millions)	Net Income Attributable
	to U.S. Bancorp							Percent Change
Business Line	1Q 2021		4Q 2020			1Q   2020		1Q21 vs 4Q20			1Q21 vs 1Q20
Corporate and Commercial Banking		$419		$381			$141		10.0			nm
Consumer and Business Banking		671		730			619		(8.1	)		8.4
Wealth Management and Investment Services		171		151			206		13.2			(17.0	)
Payment Services		479		282			303		69.9			58.1
Treasury and Corporate Support		540		(25	)		(98)		nm			nm
Consolidated Company	$	2,280	$	1,519		$	1,171		50.1			94.7
(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. Business line results are derived from the Company’s business unit profitability reporting systems by specifically attributing managed balance sheet assets, deposits and other liabilities and their related income or 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 2021, 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
	1Q 2021			4Q 2020		1Q   2020		1Q21 vs 4Q20			1Q21 vs 1Q20
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$666			$731		$784		(8.9	)		(15.1	)
Noninterest income		259			208		271		24.5			(4.4	)
Securities gains (losses), net		--			--		--		--			--
Total net revenue		925			939		1,055		(1.5	)		(12.3	)
Noninterest expense		406			392		443		3.6			(8.4	)
Other intangibles		--			--		--		--			--
Total noninterest expense		406			392		443		3.6			(8.4	)
Income before provision and taxes		519			547		612		(5.1	)		(15.2	)
Provision for credit losses		(40	)		39		424		nm			nm
Income before income taxes		559			508		188		10.0			nm
Income taxes and taxable-equivalent adjustment		140			127		47		10.2			nm
Net income		419			381		141		10.0			nm
Net (income) loss attributable to noncontrolling interests		--			--		--		--			--
Net income attributable to U.S. Bancorp		$419			$381		$141		10.0			nm
Average Balance Sheet Data
Loans		$94,872			$98,919		$103,368		(4.1	)		(8.2	)
Other earning assets		4,308			4,141		4,555		4.0			(5.4	)
Goodwill		1,647			1,647		1,647		--			--
Other intangible assets		5			6		7		(16.7	)		(28.6	)
Assets		107,022			111,599		115,308		(4.1	)		(7.2	)
Noninterest-bearing deposits		51,020			48,889		29,370		4.4			73.7
Interest-bearing deposits		67,750			76,357		80,657		(11.3	)		(16.0	)
Total deposits		118,770			125,246		110,027		(5.2	)		7.9
Total U.S. Bancorp shareholders’ equity		13,074			14,146		14,182		(7.6	)		(7.8	)
(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 $419 million of the Company’s net income in the first quarter of 2021, compared with $141 million in the first quarter of 2020. Total net revenue decreased $130 million (12.3 percent) due to a decrease of $118 million (15.1 percent) in net interest income and a decrease of $12 million (4.4 percent) in total noninterest income. Net interest income decreased primarily due to the impact of declining interest rates on the margin benefit from deposits and lower loan balances, partially offset by favorable deposit mix with higher noninterest-bearing balances and higher loan fees. Total noninterest income decreased year-over-year primarily driven by lower capital markets activities, including trading revenue, and commercial leasing fees, partially offset by higher non-yield loan fees on unused commitments. Total noninterest expense declined $37 million (8.4 percent) compared with a year ago primarily due to lower net shared services expense and production incentives as well as lower marketing and business development expense driven by a reduction in travel as a result of COVID-19. The provision for credit losses decreased $464 million primarily due to a favorable change in the reserve allocation driven by improving credit risk ratings.

        3

CONSUMER AND BUSINESS BANKING (a)
($ in millions)								Percent Change
	1Q 2021			4Q 2020		1Q   2020		1Q21 vs 4Q20			1Q21 vs 1Q20
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$1,625			$1,634		$1,531		(.6	)		6.1
Noninterest income		617			791		757		(22.0	)		(18.5	)
Securities gains (losses), net		--			--		--		--			--
Total net revenue		2,242			2,425		2,288		(7.5	)		(2.0	)
Noninterest expense		1,388			1,431		1,336		(3.0	)		3.9
Other intangibles		3			4		4		(25.0	)		(25.0	)
Total noninterest expense		1,391			1,435		1,340		(3.1	)		3.8
Income before provision and taxes		851			990		948		(14.0	)		(10.2	)
Provision for credit losses		(44	)		16		123		nm			nm
Income before income taxes		895			974		825		(8.1	)		8.5
Income taxes and taxable-equivalent adjustment		224			244		206		(8.2	)		8.7
Net income		671			730		619		(8.1	)		8.4
Net (income) loss attributable to noncontrolling interests		--			--		--		--			--
Net income attributable to U.S. Bancorp		$671			$730		$619		(8.1	)		8.4
Average Balance Sheet Data
Loans		$153,177			$156,729		$146,718		(2.3	)		4.4
Other earning assets		10,203			8,966		4,967		13.8			nm
Goodwill		3,475			3,475		3,574		--			(2.8	)
Other intangible assets		2,491			2,137		2,411		16.6			3.3
Assets		175,541			176,811		161,886		(.7	)		8.4
Noninterest-bearing deposits		39,186			39,623		27,866		(1.1	)		40.6
Interest-bearing deposits		166,876			161,298		133,718		3.5			24.8
Total deposits		206,062			200,921		161,584		2.6			27.5
Total U.S. Bancorp shareholders’ equity		13,453			13,462		13,422		(.1	)		.2
(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 $671 million of the Company’s net income in the first quarter of 2021, compared with $619 million in the first quarter of 2020. Total net revenue decreased $46 million (2.0 percent) due to a decrease of $140 million (18.5 percent) in total noninterest income, partially offset by an increase in net interest income of $94 million (6.1 percent). Net interest income reflected continued strong growth in deposit balances and loan growth, driven by mortgage and indirect lending as well as by loans made under the SBA’s Paycheck Protection Program and GNMA buybacks. The increase in net interest income also reflected higher loan fees and favorable loan spreads, partially offset by the impact of declining interest rates on deposit spreads. Total noninterest income decreased primarily due to lower mortgage banking revenue reflecting a reduction in the fair value of mortgage servicing rights, net of hedging activities, partially offset by higher production volume and related gain of sale margins compared with a year ago as well as lower deposit service charges. Total noninterest expense increased $51 million (3.8 percent) primarily due to an increase in net shared services expense due to investments in digital capabilities and higher variable compensation related to mortgage banking origination activities. The provision for credit losses decreased $167 million due to a favorable change in the reserve allocation primarily reflecting lower delinquency rates in consumer portfolios and a reduction in end of period outstanding balances in the first quarter of 2021 compared with growth in the first quarter of 2020.

        4

WEALTH MANAGEMENT AND INVESTMENT SERVICES (a)
($ in millions)							Percent Change
	1Q 2021		4Q 2020		1Q   2020		1Q21 vs 4Q20			1Q21 vs 1Q20
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$204		$222		$284		(8.1	)		(28.2	)
Noninterest income		492		478		466		2.9			5.6
Securities gains (losses), net		--		--		--		--			--
Total net revenue		696		700		750		(.6	)		(7.2	)
Noninterest expense		459		490		449		(6.3	)		2.2
Other intangibles		2		3		3		(33.3	)		(33.3	)
Total noninterest expense		461		493		452		(6.5	)		2.0
Income before provision and taxes		235		207		298		13.5			(21.1	)
Provision for credit losses		7		5		23		40.0			(69.6	)
Income before income taxes		228		202		275		12.9			(17.1	)
Income taxes and taxable-equivalent adjustment		57		51		69		11.8			(17.4	)
Net income		171		151		206		13.2			(17.0	)
Net (income) loss attributable to noncontrolling interests		--		--		--		--			--
Net income attributable to U.S. Bancorp		$171		$151		$206		13.2			(17.0	)
Average Balance Sheet Data
Loans		$12,443		$12,043		$10,608		3.3			17.3
Other earning assets		279		292		281		(4.5	)		(.7	)
Goodwill		1,619		1,618		1,617		.1			.1
Other intangible assets		42		34		44		23.5			(4.5	)
Assets		15,662		14,968		13,950		4.6			12.3
Noninterest-bearing deposits		20,277		18,699		13,232		8.4			53.2
Interest-bearing deposits		71,629		68,328		68,842		4.8			4.0
Total deposits		91,906		87,027		82,074		5.6			12.0
Total U.S. Bancorp shareholders’ equity		2,634		2,597		2,571		1.4			2.5
(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 $171 million of the Company’s net income in the first quarter of 2021, compared with $206 million in the first quarter of 2020. Total net revenue decreased $54 million (7.2 percent) year-over-year reflecting a decrease in net interest income of $80 million (28.2 percent), partially offset by an increase of $26 million (5.6 percent) in noninterest income. Net interest income decreased year-over-year primarily due to the declining margin benefit of deposits given lower interest rates, partially offset by higher noninterest-bearing deposits and favorable deposit mix. Total noninterest income increased primarily due to the impact of core business growth on trust and investment management fees and favorable market conditions, partially offset by higher fee waivers related to money market funds. Total noninterest expense increased $9 million (2.0 percent) compared with the first quarter of 2020 reflecting increased other noninterest expense and higher salary expense due to merit in the current year quarter. The provision for credit losses decreased $16 million (69.6 percent) reflecting a favorable change in the reserve allocation primarily driven by stable credit quality relative to credit quality deterioration in the first quarter of 2020.

        5

PAYMENT SERVICES (a)
($ in millions)								Percent Change
	1Q 2021			4Q 2020		1Q   2020		1Q21 vs 4Q20			1Q21 vs 1Q20
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$628			$651		$661		(3.5	)		(5.0	)
Noninterest income		785			805		794		(2.5	)		(1.1	)
Securities gains (losses), net		--			--		--		--			--
Total net revenue		1,413			1,456		1,455		(3.0	)		(2.9	)
Noninterest expense		782			836		754		(6.5	)		3.7
Other intangibles		33			40		35		(17.5	)		(5.7	)
Total noninterest expense		815			876		789		(7.0	)		3.3
Income before provision and taxes		598			580		666		3.1			(10.2	)
Provision for credit losses		(41	)		204		262		nm			nm
Income before income taxes		639			376		404		69.9			58.2
Income taxes and taxable-equivalent adjustment		160			94		101		70.2			58.4
Net income		479			282		303		69.9			58.1
Net (income) loss attributable to noncontrolling interests		--			--		--		--			--
Net income attributable to U.S. Bancorp		$479			$282		$303		69.9			58.1
Average Balance Sheet Data
Loans		$29,630			$30,992		$33,688		(4.4	)		(12.0	)
Other earning assets		5			5		6		--			(16.7	)
Goodwill		3,173			3,160		2,856		.4			11.1
Other intangible assets		544			572		557		(4.9	)		(2.3	)
Assets		35,095			36,508		38,285		(3.9	)		(8.3	)
Noninterest-bearing deposits		5,264			5,836		1,471		(9.8	)		nm
Interest-bearing deposits		132			130		114		1.5			15.8
Total deposits		5,396			5,966		1,585		(9.6	)		nm
Total U.S. Bancorp shareholders’ equity		7,480			7,700		7,619		(2.9	)		(1.8	)
(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 $479 million of the Company’s net income in the first quarter of 2021, compared with $303 million in the first quarter of 2020. Total net revenue decreased $42 million (2.9 percent) primarily due to lower net interest income of $33 million (5.0 percent) and slightly lower noninterest income of $9 million (1.1 percent). Net interest income decreased primarily due to lower loan balances, related to higher credit card payment rates, and loan fees, mostly offset by higher deposit balances as a result of state unemployment programs utilizing prepaid debit cards. Total noninterest income decreased year-over-year mainly due to the impact of COVID-19 on consumer spending, particularly related to travel and entertainment activities. However, consumer spending continues to strengthen across most sectors driven by government stimulus, local jurisdictions reducing restrictions and consumer behaviors normalizing resulting in payments revenues being essentially flat. Payments revenue included higher credit and debit card revenue driven by higher net interchange revenue related to sales volumes and higher prepaid fees as a result of government stimulus programs, offset by lower corporate payment products revenue primarily due to lower business spending related to travel and entertainment and lower merchant processing services revenue driven by lower sales volume and merchant fees. Total noninterest expense increased $26 million (3.3 percent) reflecting incremental costs related to the prepaid card business. The provision for credit losses decreased $303 million primarily due to lower delinquency rates in the first quarter of 2021.

        6

TREASURY AND CORPORATE SUPPORT (a)
($ in millions)									Percent Change
	1Q 2021			4Q 2020			1Q 2020		1Q21 vs 4Q20			1Q21 vs 1Q20
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$(34)			$(37)			$(13)		8.1			nm
Noninterest income		203			234			187		(13.2	)		8.6
Securities gains (losses), net		25			34			50		(26.5	)		(50.0	)
Total net revenue		194			231			224		(16.0	)		(13.4	)
Noninterest expense		306			168			292		82.1			4.8
Other intangibles		--			--			--		--			--
Total noninterest expense		306			168			292		82.1			4.8
Income (loss) before provision and taxes		(112	)		63			(68)		nm			(64.7	)
Provision for credit losses		(709	)		177			161		nm			nm
Income (loss) before income taxes		597			(114	)		(229)		nm			nm
Income taxes and taxable-equivalent adjustment		52			(95	)		(139)		nm			nm
Net income (loss)		545			(19	)		(90)		nm			nm
Net (income) loss attributable to noncontrolling interests		(5	)		(6	)		(8)		16.7			37.5
Net income (loss) attributable to U.S. Bancorp		$540			$(25	)		$(98)		nm			nm
Average Balance Sheet Data
Loans		$3,867			$3,625			$3,275		6.7			18.1
Other earning assets		188,927			181,725			140,256		4.0			34.7
Goodwill		--			--			--		--			--
Other intangible assets		--			--			--		--			--
Assets		215,414			208,675			165,378		3.2			30.3
Noninterest-bearing deposits		2,605			2,101			2,203		24.0			18.2
Interest-bearing deposits		1,625			1,152			5,331		41.1			(69.5	)
Total deposits		4,230			3,253			7,534		30.0			(43.9	)
Total U.S. Bancorp shareholders’ equity		16,088			15,266			13,352		5.4			20.5
(a) preliminary data

Treasury and Corporate Support includes the Company’s investment portfolios, funding, capital management, interest rate risk management, income taxes not allocated to the business lines, including most investments in tax-advantaged projects, and the residual aggregate of those expenses associated with corporate activities that are managed on a consolidated basis.

Treasury and Corporate Support contributed $540 million of the Company’s net income in the first quarter of 2021, compared with a net loss of $98 million in the first quarter of 2020. Total net revenue decreased $30 million (13.4 percent) year-over-year due to decrease of $21 million in net interest income and a decrease in noninterest income of $9 million (3.8 percent). Net interest income decreased primarily due to higher premium amortization and lower reinvestment yields within the investment portfolio compared with a year ago. Total noninterest income decreased primarily due to lower other noninterest income driven by lower gains on sales of businesses and tax-advantaged investment syndication revenue, mostly offset by the impact of favorable market conditions. Total noninterest expense increased $14 million (4.8 percent) primarily due to higher compensation expense as a result of merit, performance-based incentives and stock-based compensation as well as related payroll taxes and benefits, mostly offset by lower COVID-19 related accruals compared with the first quarter of 2020 including recognizing liabilities related to future delivery exposures for merchant and airline processing and lower net shared services expense. The provision for credit losses decreased $870 million reflecting the residual impact of changes in the allowance for credit losses being impacted by improving economic conditions. Income taxes are assessed to each line of business at a managerial tax rate of 25.0 percent with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in Treasury and Corporate Support.

        7

EX-99.2

U.S. Bancorp 1Q21 Earnings Conference Call April 15, 2021 Exhibit 99.2

Forward-looking Statements and Additional Information The following information appears in accordance with the Private Securities Litigation Reform Act of 1995: This 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. The COVID-19 pandemic is adversely affecting U.S. Bancorp, its customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity, and prospects is uncertain. Continued 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. 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; further increases in unemployment 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; civil unrest; 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 reputation 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, 2020, 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. In addition, factors other than these risks also could adversely affect U.S. Bancorp’s results, and the reader should not consider these risks 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.

1Q21 Highlights * Taxable-equivalent basis; see slide 29 for calculation ** Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology was 9.5% as of 3/31/21. *** Earnings returned (millions) = total common dividends paid and aggregate value of common shares repurchased

Performance Ratios Efficiency Ratio* & Net Interest Margin** Return on Average Common Equity Return on Tangible Common Equity* Return on Average Assets * Non-GAAP; see slides 29 and 30 for calculations ** Net interest margin on a taxable-equivalent basis

Digital Engagement Trends Three months ended Three months ended * Represents core Consumer Banking customers active in at least one channel in the previous 90 days Total Digital includes both online and mobile platforms

Average Loans -2.8% linked quarter -1.2% year-over-year On a linked quarter basis, average total loans were lower primarily driven by a decline in total commercial loans, lower residential mortgages, and lower home equity and second mortgages, all as a result of customer paydowns. On a year-over-year basis, average total loans were lower primarily driven by a decline in total commercial loans, lower credit card loans, and lower home equity and second mortgages, partially offset by growth in residential mortgages (6.1 percent) driven by GNMA buybacks. $ in billions

Average Deposits +0.9% linked quarter +17.5% year-over-year Interest-bearing Deposits Average noninterest-bearing (NIB) deposits increased on both a linked quarter and year-over-year basis. On a linked quarter basis, the increase was primarily driven by Corporate and Commercial Banking and Wealth Management and Investment Services, while increases across all business lines drove year-over-year growth. Average time deposits, which are managed based on funding needs, relative pricing and liquidity characteristics, were lower on both a linked quarter and year-over-year basis. The growth in average NIB deposits and total average savings deposits year-over-year was primarily a result of the actions by the federal government to increase liquidity in the financial system, customers maintaining balance sheet liquidity by utilizing existing credit facilities and government stimulus programs. $ in billions

Credit Quality NCO Ratio -27 bps QoQ -22 bps YoY NPAs -7.4% QoQ +27.1% YoY $ in millions

Credit Risk Management – Consistent Underwriting Allowance for Credit Losses by Loan Class, 1Q21 Key Points Prime-based lender for retail portfolios Investment grade equivalent in commercial portfolios with limited leveraged lending Commercial Real Estate lending is relationship-based with consistent underwriting Disciplined Credit Underwriting, 1Q21   Wtd Avg FICO/Bond rating equivalent* Avg LTV* Residential mortgage 773 69% Home equity 796 63% Auto loan 792 96% Auto lease 782 97% Credit card 775 N/A Commercial Baa3/BBB- N/A Commercial real estate Ba1/BB+ 58%   Amount ($B) Loans and Leases Outstanding (%) Commercial $1.9 1.9% Commercial Real Estate $1.5 4.0% Residential Mortgage $0.5 0.7% Credit Card $2.0 9.4% Other Retail $1.0 1.8% Total $7.0 2.4% Debt rating agencies: Moody’s and S&P * FICO and LTV at origination

Segments Outstanding Balances ($B) Segment Loans (%) Outstanding Balances ($B) Segment Loans (%) Commercial $0.1 0.1% $0.0 0.0% Commercial Real Estate $0.3 0.8% $0.2 0.6% Residential Mortgages** $2.8 4.2% $1.9 3.0% Credit Cards $0.1 0.4% $0.0 0.2% Other Retail $0.6 1.0% $0.4 0.6% Total $3.8 1.4% $2.5 0.9% Credit Risk Management – COVID-19 Impacted Industries Loans (%) Commitments (%) Loans (%) Commitments (%) Retail 3.8% 5.2% 3.6% 5.0% Malls (Secured & REITs) 0.4% 0.3% 0.3% 0.3% Energy 0.9% 2.2% 0.9% 2.2% Media & Entertainment 2.0% 2.2% 1.9% 2.2% Lodging 1.3% 1.0% 1.2% 0.9% Airline 0.3% 0.5% 0.3% 0.5% Payment Relief* Commitments for impacted industries were generally stable to slightly lower from the prior quarter Volume of new payment relief has reached a steady state since peaking in April 2020 Initial payment performance as borrowers exit payment relief is in line with expectations Commercial/Commercial Real Estate Exposures by Impacted Industries*** Key Points As of 12/31/20 As of 3/31/21 As of 12/31/20 As of 3/31/21 * Payment relief generally includes payment deferrals, forbearances, extensions and re-ages, and excludes loans made under the Small Business Administration’s (“SBA’s”) Paycheck Protection Program, as amounts due under that program are expected to be fully forgiven by the SBA. ** Residential mortgages are on balance sheet only and exclude GNMA Buybacks, which are government guaranteed. As of December 31, 2020, and March 31, 2021, 55.7% and 42.1%, respectively, of the GNMA Buybacks were in payment relief. *** Excludes operating leases and discretionary unfunded commitments

Earnings Summary

Net Interest Income Linked Quarter Net interest income decreased, primarily driven by a decline in average loan balances, the yield impact of prepayments on mortgage loans and securities and two fewer days in the quarter, partially offset by the benefit of deposit and funding mix as well as higher loan fees. The net interest margin decreased, reflecting the dilutive impact of investment portfolio reinvestment rates, premium amortization and mortgage prepayments, partially offset by lower cash balances. Year-over-Year Net interest income decreased, principally driven by the impact of lower rates from a year ago, and higher premium amortization related to securities prepayments, partially offset by the benefit of deposit and funding mix as well as higher loan fees. The net interest margin decreased, primarily due to the impact of a lower yield curve, higher premium amortization within the investment portfolio, and decisions to maintain higher cash balances for liquidity, partially offset by deposit repricing and funding mix and higher loan fees. -3.5% linked quarter -4.9% year-over-year $ in millions Net interest income on a taxable-equivalent basis; see slide 29 for calculation

Noninterest Income -6.6% linked quarter -5.7% year-over-year Linked Quarter Mortgage banking revenue decreased, due to lower production volume and related gain on sale margins, as well as the unfavorable net impact of the change in fair value of mortgage servicing rights, net of hedging activities. Payment services revenue declined, driven by lower credit and debit card revenue due to seasonally lower sales volume and lower prepaid fees related to the timing of government stimulus. Other noninterest income decreased, primarily due to lower tax-advantaged investment syndication revenue, partially offset by a gain on sale of a business. Year-over-Year Payment services revenues are essentially flat compared with the first quarter of 2020, driven by higher credit and debit card revenue due to higher net interchange revenue and higher prepaid fees as a result of government stimulus programs, offset by lower corporate payment products and merchant processing services revenue. Deposit service charges decreased, primarily due to lower consumer spending activities and higher consumer deposit levels. Other noninterest income decreased, primarily due to lower gains on sale of certain businesses and tax-advantaged investment syndication revenue, partially offset by higher retail leasing end-of-term residual gains. $ in millions Payments = credit and debit card, corporate payment products and merchant processing Service charges = deposit service charges and treasury management All other = commercial products, investment products fees, securities gains (losses) and other

Payment Services Payment Fees as a % of Net Revenue 2019 1Q21 Merchant Acquiring Retail Payment Solutions Corporate Payment Solutions All Other Revenue Total payments revenue, which includes net interest income and fee revenue, accounted for 27% of FY19 net revenue and 26% of 1Q21 net revenue Merchant Acquiring Travel & Hospitality* 22% 16% Airline 15% 5% All Other 63% 79% CPS Travel & Entertainment 18% 5% All Other 82% 95% RPS** Travel*** (Credit & Debit) 7% 3% All Other 93% 97% % of Merchant Acquiring Volume 2019 1Q21 % of CPS Volume 2019 1Q21 % of RPS Volume 2019 1Q21 * Travel & Hospitality includes hotels, restaurants, entertainment & travel ** RPS includes credit, debit, and prepaid *** Travel includes airlines, auto rental, hotel/motel, other transportation, travel agencies Segment Volume as a % of Total Category Volume Payments fee revenues are essentially flat compared with the first quarter of 2020 Payments sales volumes have rebounded since bottoming in April 2020 Travel & hospitality, airline, and travel & entertainment may take longer to recover, but the revenue impact is mitigated by our broad product set

Payment Services Volume Growth * Travel & Hospitality includes hotels, restaurants, entertainment & travel ** RPS includes credit, debit, and prepaid *** Travel includes airlines, auto rental, hotel/motel, other transportation, travel agencies **** Monthly data ranging from January 2020 – March 2021 Merchant Sales Volume Growth**** 0% CPS Sales Volume Growth**** 0% RPS** Sales Volume Growth**** 0% Travel & Hospitality* All Other Total Airline Travel & Entertainment Total All Other Travel*** (Credit & Debit) All Other Total Volume Growth vs. 2019 Comparable Period Merchant Sales Volume Growth**** 0% CPS Sales Volume Growth**** 0% RPS** Sales Volume Growth**** 0% Travel & Hospitality* All Other Total Airline Travel & Entertainment Total All Other Travel*** (Credit & Debit) All Other Total Volume Growth YoY

Noninterest Expense +0.4% linked quarter +1.9% year-over-year Linked Quarter Compensation increased, primarily due to higher performance-based incentives and the first quarter impact of stock-based compensation. Employee benefits expense increased, driven by seasonally higher payroll taxes and medical claims expense. Other noninterest expense decreased, primarily due to higher COVID-19 related accruals in the fourth quarter of 2020, including liabilities related to future delivery exposures associated with merchant and airline processing as well as lower costs related to tax-advantaged projects in the first quarter of 2021. Year-over-Year Compensation expense increased, due to merit and variable compensation related to business production in mortgage banking and stock-based compensation. Technology and communications expense increased, primarily due to the impact of increased call center volume related to prepaid cards and capital expenditures supporting business growth. Other noninterest expense decreased, primarily due to higher COVID-19 related accruals in the first quarter of 2020 including recognizing liabilities related to future delivery exposures related to merchant and airline processing. $ in millions PPS = postage, printing and supplies

Capital Position * Ratios calculated in accordance with transitional regulatory requirements related to the current expected credit losses methodology ** Non-GAAP; see slide 31 for calculations

Appendix

Average Loans vs. 1Q20 Average total loans decreased by $3.7 billion, or 1.2% Average residential mortgage loans increased by $4.3 billion, or 6.1% Average commercial loans decreased by $3.9 billion, or 3.7% Average credit card loans decreased by $2.7 billion, or 11.3% vs. 4Q20 Average total loans decreased by $8.3 billion, or 2.8% Average commercial loans decreased by $4.3 billion, or 4.1% Average residential mortgage loans decreased by $1.6 billion, or 2.1% Key Points Year-over-Year Growth 4.0% 10.0% 6.4% 2.5% (1.2%) Commercial CRE Res Mtg Retail Credit Card Average Loans ($bn)

Year-over-Year Growth 8.2% 16.8% 15.9% 18.5% 17.5% Time Money Market Checking and Savings Noninterest-bearing Average Deposits Key Points Average Deposits ($bn) vs. 1Q20 Average total deposits increased by $63.6 billion, or 17.5% Average low-cost deposits (NIB, interest checking, savings and money market) increased by $77.9 billion, or 24.2% vs. 4Q20 Average total deposits increased by $4.0 billion, or 0.9% Average low-cost deposits (NIB, interest checking, savings and money market) increased by $9.8 billion, or 2.5%

Credit Quality – Commercial Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm1Q20 4Q20 1Q21 Average Loans$105,987 $106,421 $102,091 30-89 Delinquencies0.28% 0.31% 0.19% 90+ Delinquencies0.06% 0.05% 0.06% Nonperforming Loans0.24% 0.36% 0.33% Linked Quarter Growth 2.0% 20.8% (9.8%) (7.9%) (4.1%) Linked quarter loan decline of 4.1% was driven by lower revolving line utilization – utilization rates have continued to decline as corporate customers continue to pay down loans Net charge-offs declined due to lower gross charge-offs and higher recoveries linked quarter

A&D Const $203 Multi-family $4,040 Retail $221 Residential Construction $2,032 Office $1,049 Other $2,746 Residential Land $527 $mm1Q20 4Q20 1Q21 Average Loans$40,078 $40,098 $38,786 30-89 Delinquencies0.20% 0.47%0.31% 90+ Delinquencies0.00%0.01%0.01% Nonperforming Loans0.25% 1.14% 0.93% Credit Quality – Commercial Real Estate Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points Linked Quarter Growth 0.9% 2.5% (0.4%) (2.0%) (3.3%) Average loans decreased by 3.3% on a linked quarter basis Net charge-offs declined due to lower gross charge-offs and higher recoveries linked quarter

Credit Quality – Residential Mortgage Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm1Q204Q201Q21 Average Loans$70,892 $76,809 $75,201 30-89 Delinquencies0.23%0.32%0.28% 90+ Delinquencies0.15% 0.18% 0.19% Nonperforming Loans0.34%0.32%0.34% Linked Quarter Growth 1.4% 0.3% 6.6% 1.3% (2.1%) Originations continued to be high credit quality (weighted average FICO of 773, weighted average LTV of 69%) Customers in payment relief have continued to decline since peak in 2Q20 at 7.6% * Represents residential mortgage loan balances in forbearance; excludes GNMA loans, whose repayments are insured by the FHA or guaranteed by the Department of VA ($4.8 billion or 42.1% of loans in 1Q21)

Credit Quality – Credit Card Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm1Q204Q201Q21 Average Loans$23,836 $21,937$21,144 30-89 Delinquencies1.29% 1.04%0.90% 90+ Delinquencies1.29%0.88%0.95% Nonperforming Loans0.00%0.00%0.00% Linked Quarter Growth (1.1%) (9.8%) 2.5% (0.5%) (3.6%) Year over year decrease in average loans was driven by lower consumer spending and reduced marketing during the pandemic. Linked quarter decrease reflects seasonality and government stimulus payments used to pay down debt Credit quality of new originations remains strong Net charge-off rates decreased linked quarter driven by strong recoveries of previously charged off loans

Credit Quality – Home Equity Average Loans ($mm) and Net Charge-offs Ratio Key Points Linked Quarter Growth (2.5%) (3.0%) (5.8%) (5.4%) (5.9%) Key Statistics Key Statistics $mm1Q204Q201Q21 Average Loans$14,838 $12,816 $12,062 30-89 Delinquencies0.53%0.54%0.37% 90+ Delinquencies0.30%0.36%0.36% Nonperforming Loans0.75%0.86%1.09% Loans: 9% Wtd Avg LTV*: 75% Wtd Avg FICO*: 752 Lines: 91% Wtd Avg LTV*: 69% Wtd Avg FICO*: 758 *LTV and FICO at origination High-quality originations (weighted average FICO on commitments of 796, weighted average CLTV of 63%) driven primarily through the retail branch network to existing bank customers on their primary residences Net charge-offs continue to remain at low levels Nonperforming loans continue to increase due to foreclosure moratoria

Credit Quality – Retail Leasing Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm1Q204Q201Q21 Average Loans$8,474 $8,299 $7,975 30-89 Delinquencies0.52%0.43%0.34% 90+ Delinquencies0.04%0.05%0.01% Nonperforming Loans0.18%0.16%0.18% Linked Quarter Growth (0.1%) (0.7%) 0.3% (1.6%) (3.9%) Continued high-quality originations during 1Q21 (weighted average FICO of 782) Delinquencies remained at low levels and were favorably impacted by government stimulus payments in 1Q21 Charge-offs were lower driven by the favorable impact of higher vehicle values on both residual and credit losses * Manheim Used Vehicle Value Index source: www.manheimconsulting.com, January 1995 = 100, quarter value = average monthly ending values

Credit Quality – Other Retail Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm1Q204Q201Q21 Average Loans$33,552 $35,928 $36,730 30-89 Delinquencies0.79%0.60%0.40% 90+ Delinquencies0.14%0.10%0.07% Nonperforming Loans0.10%0.09%0.08% Linked Quarter Growth 0.1% 0.0% 3.6% 3.3% 2.2% Average loans increased linked quarter due to strong volume in auto loans and recreational vehicle and boat loans Delinquency and charge-offs remained at low levels driven by government stimulus payments to customers during the first quarter and generally lower consumer debt levels coming out of the pandemic

Credit Quality – Auto Loans Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $mm1Q204Q201Q21 Average Loans$19,276 $19,390 $19,881 30-89 Delinquencies1.08%0.83%0.55% 90+ Delinquencies0.12%0.11%0.06% Nonperforming Loans0.15%0.13%0.11% Direct: 4% Wtd Avg FICO: 761 NCO: 0.32% Indirect: 96% Wtd Avg FICO: 784 NCO: 0.24% Linked Quarter Growth (0.8%) (2.7%) 0.3% 3.0% 2.5% High quality originations reflect focus on prime credits (weighted average FICO of 792) Delinquency and charge-offs remained at low levels and were favorably impacted in 1Q21 by government stimulus payments Auto loans are included in Other Retail category

Non-GAAP Financial Measures (4) – see slide 32 for corresponding notes

Non-GAAP Financial Measures (1) – see slide 32 for corresponding notes

Non-GAAP Financial Measures * Preliminary data. Subject to change prior to filings with applicable regulatory agencies. (1), (2), (3) – see slide 32 for corresponding notes

Notes Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements. Includes the estimated increase in the allowance for credit losses related to the adoption of the current expected credit losses methodology net of deferred taxes. Includes the impact of the estimated increase in the allowance for credit losses related to the adoption of the current expected credit losses methodology. Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.

U.S. Bancorp 1Q21 Earnings Conference Call April 15, 2021

XML

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