8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549  

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 19, 2023

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 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
Depositary Shares (each representing 1/1,000th interest in a share of Series O Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrS	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 July 19, 2023, U.S. Bancorp (the “Company”) issued a press release reporting quarter-ended June 30, 2023 results, and posted on its website its 2Q23 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 2Q23 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated herein by reference. The information included in the 2Q23 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 2Q23 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 July 19, 2023, deemed “filed” under the Securities Exchange Act of 1934.

99.2 2Q23 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: July 19, 2023

EX-99.1

Exhibit 99.1

2Q23 Key Financial Data	2Q23 Financial Highlights

PROFITABILITY METRICS	2Q23	1Q23	2Q22
Return on average assets (%)	.81	1.03	1.06
Return on average common equity (%)	10.9	14.1	13.9
Return on tangible common equity (%) (a)	17.1	22.0	18.6
Net interest margin (%)	2.90	3.10	2.59
Efficiency ratio (%) (a)	63.7	63.2	62.1
Tangible efficiency ratio (%) (a)	61.5	61.0	61.5
INCOME STATEMENT (b)	2Q23	1Q23	2Q22
Net interest income (taxable-equivalent basis)	$4,449	$4,668	$3,464
Noninterest income	$2,726	$2,507	$2,548
Net income attributable to U.S. Bancorp	$1,361	$1,698	$1,531
Diluted earnings per common share	$.84	$1.04	$.99
Dividends declared per common share	$.48	$.48	$.46
BALANCE SHEET (b)	2Q23	1Q23	2Q22
Average total loans	$388,817	$386,750	$324,187
Average total deposits	$497,265	$510,324	$456,516
Net charge-off ratio	.67%	.39%	.20%
Book value per common share (period end)	$30.14	$30.12	$28.13
Basel III standardized CET1 (c)	9.1%	8.5%	9.7%
(a) See Non-GAAP Financial Measures reconciliation on page 18
(b) Dollars in millions, except per share data
(c) CET1 = Common equity tier 1 capital ratio

•  CET1 capital ratio of 9.1% at June 30, 2023, compared with 8.5% at March 31, 2023

•  Net income of $1,793 million and diluted earnings per common share of $1.12 as adjusted for notable items related to merger and integration-related charges associated with the acquisition of MUFG Union Bank (“MUB”) and balance sheet optimization activities

•  Net revenue of $7,197 million as adjusted for notable items including $4,449 million of net interest income on a taxable- equivalent basis and $2,748 million of noninterest income

•  Reported results included notable items related to merger and integration-related charges of $310 million and balance sheet optimization costs of $265 million, with a total impact, net of tax, of $(0.28) on diluted earnings per common share

•  Return on average assets of 1.07%, return on average common equity of 14.6%, and efficiency ratio of 59.2% as adjusted for notable items

•  Net interest income on a taxable-equivalent basis increased 28.4% year-over-year due to the impact of the acquisition of MUB and rising interest rates on earning assets and decreased 4.7% linked quarter due to deposit pricing

•  Average total loan growth of 19.9% year-over-year and 0.5% on a linked quarter basis

•  Average total deposit growth of 8.9% year-over-year and a decrease of 2.6% on a linked quarter basis

CEO Commentary

“In the second quarter, we successfully completed our conversion of Union Bank and further accelerated our accretion of capital, ending the quarter with a common equity tier 1 ratio of 9.1%. We posted diluted earnings per common share of $1.12, as adjusted, driven by continued momentum across our businesses supplemented by positive operating leverage on a linked quarter basis. We ended the quarter with $522 billion in total deposits, an increase of 3.2% versus the prior quarter. Our lower net interest margin this quarter reflects both higher levels of cash given debt ceiling concerns as well as higher deposit costs due to the rate environment. Credit quality remains strong, however we continued to strengthen our balance sheet by increasing our loan loss reserve reflecting prudent credit risk management.

Entering the second half of this year, we are well-positioned as a national bank with greater scale and the opportunity to capture significant cost synergies from Union Bank and to execute on revenue growth strategies that leverage our digital offerings, payment services capabilities and broad product set. I want to thank all our employees for their continued focus on best serving our clients, communities and shareholders.”

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

Business and Other Highlights

Key metrics

• MUB conversion was successfully completed over Memorial Day weekend, over 1.2 million consumer and small business customers were added, of which approximately 50% were digitally active in the first 30 days

• Robust liquidity highlighted by total available liquidity of $316 billion and a first quarter 2023 Liquidity Coverage Ratio (LCR) of 118%

• Ending total deposits increased 3.2% over linked quarter

• Strong fee growth of 9.6%, as adjusted, on a linked quarter basis

• Strong credit quality and diversified loan portfolio; with commercial real estate office accounting for only 2% of total loans and 1% of total commitments

Notable Item Impacts 2Q23

($ in million, except per-share data)	Income Before Taxes		Net Income Attributable to U.S. Bancorp		Diluted Earnings Per Common Share
Reported		$1,785		$1,361		$.84
Notable items		575		432		.28
Adjusted		$2,360		$1,793		$1.12
Notable Items
($ in millions)	2Q23		1Q23		2Q22
Balance sheet optimization		$22		$ —		$ —
Merger and integration charges		310		244		197
Provision for credit losses		243		—		—
Total notable items		$575		$244		$197

         Investor contact: George Andersen, 612.303.3620 | Media contact: Jeff Shelman, 612.303.9933

U.S. Bancorp Second Quarter 2023 Results

INCOME STATEMENT HIGHLIGHTS
($ in millions, except per-share data)																ADJUSTED (a) (b)
										Percent Change															Percent Change
	2Q			1Q			2Q			2Q23 vs			2Q23 vs			2Q			1Q			2Q			2Q23 vs			2Q23 vs
	2023			2023			2022			1Q23			2Q22			2023			2023			2022			1Q23			2Q22
Net interest income	$	4,415		$	4,634		$	3,435			(4.7	)		28.5		$	4,415		$	4,634		$	3,435			(4.7	)		28.5
Taxable-equivalent adjustment		34			34			29			--			17.2			34			34			29			--			17.2
Net interest income (taxable-equivalent basis)		4,449			4,668			3,464			(4.7	)		28.4			4,449			4,668			3,464			(4.7	)		28.4
Noninterest income		2,726			2,507			2,548			8.7			7.0			2,748			2,507			2,548			9.6			7.8
Total net revenue		7,175			7,175			6,012			--			19.3			7,197			7,175			6,012			.3			19.7
Noninterest expense		4,569			4,555			3,724			.3			22.7			4,259			4,311			3,527			(1.2	)		20.8
Income before provision and income taxes		2,606			2,620			2,288			(.5	)		13.9			2,938			2,864			2,485			2.6			18.2
Provision for credit losses		821			427			311			92.3			nm			578			427			311			35.4			85.9
Income before taxes		1,785			2,193			1,977			(18.6	)		(9.7	)		2,360			2,437			2,174			(3.2	)		8.6
Income taxes and taxable-equivalent adjustment		416			489			443			(14.9	)		(6.1	)		559			550			487			1.6			14.8
Net income		1,369			1,704			1,534			(19.7	)		(10.8	)		1,801			1,887			1,687			(4.6	)		6.8
Net (income) loss attributable to noncontrolling interests		(8	)		(6	)		(3	)		(33.3	)		nm			(8	)		(6	)		(3	)		(33.3	)		nm
Net income attributable to U.S. Bancorp	$	1,361		$	1,698		$	1,531			(19.8	)		(11.1	)	$	1,793		$	1,881		$	1,684			(4.7	)		6.5
Net income applicable to U.S. Bancorp common shareholders	$	1,281		$	1,592		$	1,464			(19.5	)		(12.5	)	$	1,710		$	1,773		$	1,617			(3.6	)		5.8
Diluted earnings per common share	$	.84		$	1.04		$	.99			(19.2	)		(15.2	)	$	1.12		$	1.16		$	1.09			(3.4	)		2.8
(a) 2Q23 excludes $575 million ($432 million net-of-tax) of notable items including: $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $310 million of merger and integration-related charges and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions. 1Q23 excludes $244 million ($183 million net-of-tax) of merger and integration-related charges. 2Q22 excludes $197 million ($153 million net-of-tax) of merger and integration-related charges.
(b) See Non-GAAP Financial Measures reconciliation on page 18

INCOME STATEMENT HIGHLIGHTS
($ in millions, except per-share data)										ADJUSTED (c) (d)
	YTD			YTD			Percent			YTD			YTD			Percent
	2023			2022			Change			2023			2022			Change
Net interest income	$	9,049		$	6,608			36.9		$	9,049		$	6,608			36.9
Taxable-equivalent adjustment		68			56			21.4			68			56			21.4
Net interest income (taxable-equivalent basis)		9,117			6,664			36.8			9,117			6,664			36.8
Noninterest income		5,233			4,944			5.8			5,255			4,944			6.3
Total net revenue		14,350			11,608			23.6			14,372			11,608			23.8
Noninterest expense		9,124			7,226			26.3			8,570			7,029			21.9
Income before provision and income taxes		5,226			4,382			19.3			5,802			4,579			26.7
Provision for credit losses		1,248			423			nm			1,005			423			nm
Income before taxes		3,978			3,959			.5			4,797			4,156			15.4
Income taxes and taxable-equivalent adjustment		905			867			4.4			1,109			911			21.7
Net income		3,073			3,092			(.6	)		3,688			3,245			13.7
Net (income) loss attributable to noncontrolling interests		(14	)		(4	)		nm			(14	)		(4	)		nm
Net income attributable to U.S. Bancorp	$	3,059		$	3,088			(.9	)	$	3,674		$	3,241			13.4
Net income applicable to U.S. Bancorp common shareholders	$	2,873		$	2,930			(1.9	)	$	3,483		$	3,083			13.0
Diluted earnings per common share	$	1.87		$	1.97			(5.1	)	$	2.27		$	2.07			9.7
(c)  2023 excludes $819 million ($615 million net-of-tax) of notable items including: $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $554 million of merger and integration-related charges and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions. 2022 excludes $197 million ($153 million net-of-tax) of merger and integration-related charges.
(d) See Non-GAAP Financial Measures reconciliation on page 18

        2

U.S. Bancorp Second Quarter 2023 Results

Net income attributable to U.S. Bancorp was $1,361 million for the second quarter of 2023, which was $170 million lower than the $1,531 million for the second quarter of 2022 and $337 million lower than the $1,698 million for the first quarter of 2023. Diluted earnings per common share were $0.84 in the second quarter of 2023, compared with $0.99 in the second quarter of 2022 and $1.04 in the first quarter of 2023. The second quarter of 2023 included $432 million, or $(0.28) per diluted common share, of notable items including merger and integration-related charges associated with the acquisition of MUB and activities to optimize balance sheet capital management, compared with $153 million $(0.10) per diluted common share in the second quarter of 2022, and $183 million, or $(0.12) per diluted common share, in the first quarter of 2023. On an adjusted basis, excluding the impacts of these notable items, net income applicable to common shareholders was $1,710 million, which was $93 million higher than the second quarter of 2022 and $63 million lower than the first quarter of 2023. Adjusted diluted earnings per common share were $1.12 in the second quarter of 2023, representing a 2.8 percent increase from the second quarter of 2022 and a 3.4 percent decrease from the first quarter of 2023.

The decrease in net income attributable to U.S. Bancorp year-over-year was driven by higher provision expense, including the balance sheet optimization activities, and noninterest expense, including the merger and integration-related charges, partially offset by higher total net revenue. Pretax income excluding notable items in the current quarter increased 8.6 percent compared with a year ago. Net interest income increased 28.4 percent on a year-over-year taxable-equivalent basis due to the impact of rising interest rates on earning assets and the impact of the MUB acquisition. The net interest margin increased to 2.90 percent in the second quarter of 2023 from 2.59 percent in the second quarter of 2022 primarily due to the impact of higher rates on earning assets and the acquisition of MUB. Noninterest income increased 7.0 percent (7.8 percent excluding notable items) compared with a year ago driven by higher payment services revenue, trust and investment management fees, and commercial products revenue. Noninterest expense increased 22.7 percent (20.8 percent excluding merger and integration-related charges), primarily driven by MUB operating expenses, including core deposit intangible amortization expense, and higher compensation expense to support business growth. Provision for credit losses increased $510 million ($267 million excluding notable items) compared with the second quarter of 2022 driven by the acquisition of MUB, normalizing credit losses and continued economic uncertainty.

Net income decreased 19.8 percent on a linked quarter basis reflecting lower net interest income and higher provision for credit losses, partially offset by higher noninterest income. Pretax income excluding notable items decreased 3.2 percent on a linked quarter basis. Net interest income decreased 4.7 percent on a taxable-equivalent basis due to deposit pricing, partially offset by the impact of rising interest rates on earning assets. The net interest margin decreased to 2.90 percent in the second quarter of 2023 from 3.10 percent in the first quarter of 2023 primarily due to deposit pricing and the impact of elevated cash balances, partially offset by the impact of rising interest rates on earning assets. Noninterest income increased 8.7 percent (9.6 percent excluding notable items) compared with the first quarter of 2023 driven by higher payment services revenue, trust and investment management fees, commercial products revenue, mortgage banking revenue, and gains on securities. Noninterest expense increased 0.3 percent on a linked quarter basis driven by merger and integration-related charges. Excluding merger and integration-related charges, noninterest expense decreased 1.2 percent due to prudent expense management and a reduction in the liability for future delivery contingencies within the merchant processing business. Provision for credit losses increased $394 million ($151 million excluding notable items) compared with the first quarter primarily due to normalizing credit losses and continued economic uncertainty.

        3

U.S. Bancorp Second Quarter 2023 Results

NET INTEREST INCOME
(Taxable-equivalent basis; $ in millions)							Change
	2Q  2023		1Q  2023		2Q  2022		2Q23 vs  1Q23		2Q23 vs  2Q22		YTD  2023		YTD  2022		Change
Components of net interest income
Income on earning assets		$7,562		$6,999		$3,854		$563		$3,708		$14,561		$7,299		$7,262
Expense on interest-bearing liabilities		3,113		2,331		390		782		2,723		5,444		635		4,809
Net interest income		$4,449		$4,668		$3,464		$(219)		$985		$9,117		$6,664		$2,453
Average yields and rates paid
Earning assets yield		4.94%		4.65%		2.88%		.29%		2.06%		4.80%		2.75%		2.05%
Rate paid on interest-bearing liabilities		2.60		2.06		.40		.54		2.20		2.34		.33		2.01
Gross interest margin		2.34%		2.59%		2.48%		(.25)%		(.14)%		2.46%		2.42%		.04%
Net interest margin		2.90%		3.10%		2.59%		(.20)%		.31%		3.00%		2.51%		.49%
Average balances
Investment securities (a)		$159,824		$166,125		$171,296		$(6,301)		$(11,472)		$162,957		$173,019		$(10,062)
Loans		388,817		386,750		324,187		2,067		64,630		387,789		318,608		69,181
Interest-bearing deposits with banks		51,972		43,305		31,116		8,667		20,856		47,662		30,487		17,175
Earning assets		613,839		607,614		536,761		6,225		77,078		610,744		533,318		77,426
Interest-bearing liabilities		480,450		458,074		390,373		22,376		90,077		469,324		384,332		84,992
(a) Excludes unrealized gain (loss)

Net interest income on a taxable-equivalent basis in the second quarter of 2023 was $4,449 million, an increase of $985 million (28.4 percent) over the second quarter of 2022. The increase was primarily due to the impact of rising interest rates on earning assets and the acquisition of MUB. Average earning assets were $77.1 billion (14.4 percent) higher than the second quarter of 2022, reflecting increases of $64.6 billion (19.9 percent) in average total loans and $20.9 billion (67.0 percent) in average interest-bearing deposits with banks. Average investment securities decreased $11.5 billion (6.7 percent) reflecting balance sheet repositioning and liquidity management in connection with the acquisition of MUB.

Net interest income on a taxable-equivalent basis decreased $219 million (4.7 percent) on a linked quarter basis primarily due to the impact of deposit pricing, partially offset by higher rates on earning assets. Average earning assets were $6.2 billion (1.0 percent) higher on a linked quarter basis, reflecting increases of $2.1 billion (0.5 percent) in average total loans and $8.7 billion (20.0 percent) in cash deposits with other banks. Average investment securities decreased by $6.3 billion (3.8 percent) reflecting balance sheet repositioning and liquidity management in connection with the acquisition of MUB.

The net interest margin in the second quarter of 2023 was 2.90 percent, compared with 2.59 percent in the second quarter of 2022 and 3.10 percent in the first quarter of 2023. The increase in the net interest margin from the prior year was primarily due to the impact of higher rates on earning assets and the acquisition of MUB. The decrease in the net interest margin on a linked quarter basis reflected the impact of maintaining higher cash balances given the debt ceiling concerns and deposit pricing, partially offset by rising interest rates on earning assets.

        4

U.S. Bancorp Second Quarter 2023 Results

AVERAGE LOANS
($ in millions)							Percent Change
	2Q  2023		1Q  2023		2Q  2022		2Q23 vs  1Q23			2Q23 vs  2Q22			YTD  2023		YTD  2022		Percent  Change
Commercial		$133,697		$131,227		$115,758		1.9			15.5		$	132,469	$	111,810		18.5
Lease financing		4,388		4,456		4,899		(1.5	)		(10.4	)		4,422		4,951		(10.7	)
Total commercial		138,085		135,683		120,657		1.8			14.4			136,891		116,761		17.2
Commercial mortgages		43,214		43,627		29,676		(.9	)		45.6			43,420		29,253		48.4
Construction and development		11,720		11,968		9,841		(2.1	)		19.1			11,843		10,049		17.9
Total commercial real estate		54,934		55,595		39,517		(1.2	)		39.0			55,263		39,302		40.6
Residential mortgages		117,606		116,287		80,228		1.1			46.6			116,950		78,847		48.3
Credit card		26,046		25,569		22,748		1.9			14.5			25,809		22,297		15.8
Retail leasing		4,829		5,241		6,708		(7.9	)		(28.0	)		5,034		6,908		(27.1	)
Home equity and second mortgages		12,753		12,774		10,726		(.2	)		18.9			12,763		10,561		20.9
Other		34,564		35,601		43,603		(2.9	)		(20.7	)		35,079		43,932		(20.2	)
Total other retail		52,146		53,616		61,037		(2.7	)		(14.6	)		52,876		61,401		(13.9	)
Total loans		$388,817		$386,750		$324,187		.5			19.9		$	387,789	$	318,608		21.7

Average total loans for the second quarter of 2023 were $64.6 billion (19.9 percent) higher than the second quarter of 2022. The increase was driven by growth in the Company’s legacy loan portfolio as well as from the MUB acquisition, which are primarily reflected in commercial loans, commercial mortgages and residential mortgages. Increases in total commercial loans (14.4 percent), total commercial real estate loans (39.0 percent), residential mortgages (46.6 percent) and credit card loans (14.5 percent) were partially offset by lower total other retail loans (14.6 percent). The increase in legacy portfolio commercial loans was due to higher utilization driven by working capital needs of corporate customers, slower pay-offs given higher volatility in the capital markets and core growth. The increase in legacy residential mortgages was driven by on-balance sheet loan activities and slower refinancing activity. The increase in credit card loans was primarily driven by higher spend volumes, account growth and lower payment rates. The decrease in other retail loans was primarily due to balance sheet optimization activities.

Average total loans were $2.1 billion (0.5 percent) higher than the first quarter of 2023. Increases in total commercial loans (1.8 percent), residential mortgages (1.1 percent) and credit card loans (1.9 percent) were partially offset by lower total commercial real estate loans (1.2 percent) and lower total other retail loans (2.7 percent).

        5

U.S. Bancorp Second Quarter 2023 Results

AVERAGE DEPOSITS
($ in millions)							Percent Change
	2Q  2023		1Q  2023		2Q  2022		2Q23 vs 1Q23			2Q23 vs 2Q22			YTD  2023		YTD  2022		Percent Change
Noninterest-bearing deposits	$	113,758	$	129,741	$	120,827		(12.3	)		(5.9	)	$	121,705	$	124,375		(2.1	)
Interest-bearing savings deposits
Interest checking		127,994		129,350		116,878		(1.0	)		9.5			128,668		115,975		10.9
Money market savings		152,893		146,970		123,788		4.0			23.5			149,948		121,700		23.2
Savings accounts		58,993		68,827		68,127		(14.3	)		(13.4	)		63,883		67,555		(5.4	)
Total savings deposits		339,880		345,147		308,793		(1.5	)		10.1			342,499		305,230		12.2
Time deposits		43,627		35,436		26,896		23.1			62.2			39,554		25,747		53.6
Total interest-bearing deposits		383,507		380,583		335,689		.8			14.2			382,053		330,977		15.4
Total deposits	$	497,265	$	510,324	$	456,516		(2.6	)		8.9		$	503,758	$	455,352		10.6

Average total deposits for the second quarter of 2023 were $40.7 billion (8.9 percent) higher than the second quarter of 2022, including the impact of the MUB acquisition. Average noninterest-bearing deposits decreased $7.1 billion (5.9 percent) driven by decreases within Corporate and Commercial Banking and Wealth Management and Investment Services, partially offset by the impact of the acquisition of MUB. Average total savings deposits were $31.1 billion (10.1 percent) higher year-over-year driven by increases within Corporate and Commercial Banking and Consumer and Business Banking, including the impact of the acquisition of MUB. Average time deposits were $16.7 billion (62.2 percent) higher than the prior year second quarter due to the acquisition of MUB and increases across most business lines. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics.

Average total deposits decreased $13.1 billion (2.6 percent) from the first quarter of 2023. On a linked quarter basis, average noninterest-bearing deposits decreased $16.0 billion (12.3 percent) driven by an at conversion reclassification of MUB retail checking balances to create a better customer experience and pricing pressures from rising interest rates. Average total savings deposits decreased $5.3 billion (1.5 percent) driven by decreases within Consumer and Business Banking and Wealth Management and Investment Services, partially offset by increases within Corporate and Commercial Banking. Average time deposits were $8.2 billion (23.1 percent) higher on a linked quarter basis across Consumer and Business Banking and Wealth Management and Investment Services, partially offset by decreases within Corporate and Commercial Banking. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics. Ending total deposits at June 30, 2023, were $16.3 billion (3.2 percent) higher than March 31, 2023, reflecting the normal operational fluctuation of deposits associated with corporate trust activities.

The Company maintains a diverse and stable funding base that includes a mix of both consumer and operational wholesale deposits and continues to actively manage the composition in the current environment. Consumer deposits account for more than 50 percent of total deposits and a significant portion of the operational wholesale deposits are contractual or relationship based, not yield-seeking. At June 30, 2023, approximately 50 percent of deposits are insured through the FDIC insurance fund. Of the uninsured deposits, approximately 80 percent of these deposits are retail customers or operational in nature, which are generally more stable. In addition, the Company has total available liquidity representing 120 percent of uninsured balances.

        6

U.S. Bancorp Second Quarter 2023 Results

NONINTEREST INCOME
($ in millions)									Percent Change
	2Q  2023			1Q  2023			2Q  2022		2Q23 vs 1Q23		2Q23 vs 2Q22			YTD  2023			YTD  2022		Percent Change
Card revenue	$	422		$	360		$	399		17.2		5.8		$	782		$	737		6.1
Corporate payment products revenue		190			189			172		.5		10.5			379			330		14.8
Merchant processing services		436			387			425		12.7		2.6			823			788		4.4
Trust and investment management fees		621			590			566		5.3		9.7			1,211			1,066		13.6
Service charges		324			324			334		--		(3.0	)		648			667		(2.8	)
Commercial products revenue		358			334			290		7.2		23.4			692			556		24.5
Mortgage banking revenue		161			128			142		25.8		13.4			289			342		(15.5	)
Investment products fees		68			68			59		--		15.3			136			121		12.4
Securities gains (losses), net		3			(32	)		19		nm		(84.2	)		(29	)		37		nm
Other		165			159			142		3.8		16.2			324			300		8.0
Total before balance sheet optimization		2,748			2,507			2,548		9.6		7.8			5,255			4,944		6.3
Balance sheet optimization		(22	)		--			--		nm		nm			(22	)		--		nm
Total noninterest income	$	2,726		$	2,507		$	2,548		8.7		7.0		$	5,233		$	4,944		5.8

Second quarter noninterest income of $2,726 million was $178 million (7.0 percent) higher than the second quarter of 2022. Excluding notable items of $(22) million in the second quarter of 2023, second quarter noninterest income increased $200 (7.8 percent) compared with the second quarter of 2022 driven by higher payment services revenue, trust and investment management fees, commercial products revenue and other noninterest income. Payment services revenue increased $52 million (5.2 percent) compared with the second quarter of 2022. Within payment services, card revenue increased $23 million (5.8 percent) driven by higher rates and sales volume, and corporate payment products revenue increased $18 million (10.5 percent) due to higher business spending. Trust and investment management fees increased $55 million (9.7 percent) driven by the acquisition of MUB and core business growth. Commercial products revenue increased $68 million (23.4 percent) driven by higher trading revenue, corporate bond fees, and commercial loan fees. Other revenue increased $23 million (16.2 percent).

Noninterest income was $219 million (8.7 percent) higher in the second quarter of 2023 compared with the first quarter of 2023. Excluding notable items of $(22) million in the second quarter of 2023, second quarter noninterest income increased $241 (9.6 percent) compared with the first quarter of 2023 driven by higher payment services revenue, trust and investment management fees, commercial products revenue and gains on securities. Payment services revenue increased $112 million (12.0 percent) compared with the first quarter of 2023. Within payment services, card revenue increased $62 million (17.2 percent) driven by higher rates and sales volume and merchant processing services revenue increased $49 million (12.7 percent) driven by price increases. Trust and investment management fees increased $31 million (5.3 percent) primarily due to core business growth and an increase in fees driven by higher market rates. Commercial products revenue increased $24 million (7.2 percent) driven by an increase in trading revenue, corporate bond fees and commercial leasing.

        7

U.S. Bancorp Second Quarter 2023 Results

NONINTEREST EXPENSE
($ in millions)							Percent Change
	2Q		1Q		2Q		2Q23 vs			2Q23 vs		YTD		YTD		Percent
	2023		2023		2022		1Q23			2Q22		2023		2022		Change
Compensation and employee benefits	$	2,646	$	2,646	$	2,246		--			17.8	$	5,292	$	4,495		17.7
Net occupancy and equipment		316		321		265		(1.6	)		19.2		637		534		19.3
Professional services		141		134		111		5.2			27.0		275		225		22.2
Marketing and business development		122		122		106		--			15.1		244		186		31.2
Technology and communications		522		503		419		3.8			24.6		1,025		840		22.0
Other intangibles		159		160		40		(.6	)		nm		319		87		nm
Other		353		425		340		(16.9	)		3.8		778		662		17.5
Total before merger and integration		4,259		4,311		3,527		(1.2	)		20.8		8,570		7,029		21.9
Merger and integration charges		310		244		197		27.0			57.4		554		197		nm
Total noninterest expense	$	4,569	$	4,555	$	3,724		.3			22.7	$	9,124	$	7,226		26.3

Second quarter noninterest expense of $4,569 million was $845 million (22.7 percent) higher than the second quarter of 2022. Excluding merger and integration-related charges of $310 million in the second quarter of 2023 and $197 million in the second quarter of 2022, second quarter noninterest expense increased $732 million (20.8 percent) compared with the second quarter of 2022, driven by the impact of MUB operating expenses, core deposit intangible amortization expense, higher compensation expense and higher other noninterest expense. Compensation expense increased $400 million (17.8 percent) compared with the second quarter of 2022 primarily due to MUB expense as well as merit and hiring to support business growth. Intangible amortization increased $119 million driven by the core deposit intangible created as a result of the MUB acquisition. Other noninterest expense increased $13 million (3.8 percent) due to higher FDIC insurance expense driven by an increase in the assessment base and rate along with the inclusion of MUB in the current year, partially offset by lower accruals related to future delivery exposures for merchant and airline processing and other liabilities.

Noninterest expense increased $14 million (0.3 percent) on a linked quarter basis. Excluding merger and integration-related charges of $310 million in the second quarter of 2023 and $244 million in the first quarter of 2023, second quarter noninterest expense decreased $52 million (1.2 percent) from the first quarter of 2023 driven by lower other noninterest expense. Other noninterest expense decreased $72 million (16.9 percent) primarily due to lower accruals related to future delivery exposures for merchant and airline processing and other liabilities.

Provision for Income Taxes

The provision for income taxes for the second quarter of 2023 resulted in a tax rate of 23.3 percent on a taxable-equivalent basis (effective tax rate of 21.8 percent), compared with 22.4 percent on a taxable-equivalent basis (effective tax rate of 21.3 percent) in the second quarter of 2022, and a tax rate of 22.3 percent on a taxable-equivalent basis (effective tax rate of 21.1 percent) in the first quarter of 2023.

        8

U.S. Bancorp Second Quarter 2023 Results

ALLOWANCE FOR CREDIT LOSSES
($ in millions)	2Q				1Q					4Q					3Q				2Q
	2023		% (a)		2023			% (a)		2022			% (a)		2022		% (a)		2022		% (a)
Balance, beginning of period	$	7,523			$	7,404				$	6,455				$	6,255			$	6,105
Change in accounting principle (b)		--				(62	)				--					--				--
Allowance for acquired credit losses (c)		--				127					336					--				--
Net charge-offs
Total excluding acquisition and optimization impacts		340		.35		282			.30		210			.23		162		.19		161		.20
Balance sheet optimization impact		309				--					189					--				--
Acquisition impact		--				91					179					--				--
Total net charge-offs		649		.67		373			.39		578			.64		162		.19		161		.20
Provision for credit losses
Total excluding acquisition and optimization impacts		578				427					401					362				311
Balance sheet optimization impact		243				--					129					--				--
Acquisition impact of initial provision		--				--					662					--				--
Total provision for credit losses		821				427					1,192					362				311
Other changes		--				--					(1	)				--				--
Balance, end of period	$	7,695			$	7,523				$	7,404				$	6,455			$	6,255
Components
Allowance for loan losses	$	7,164			$	7,020				$	6,936				$	6,017			$	5,832
Liability for unfunded credit commitments		531				503					468					438				423
Total allowance for credit losses	$	7,695			$	7,523				$	7,404				$	6,455			$	6,255
Allowance for credit losses as a percentage of
Period-end loans (%)		2.03				1.94					1.91					1.88				1.88
Nonperforming loans (%)		739				660					762					1,025				863
Nonperforming assets (%)		709				637					729					953				812
(a)  Annualized and calculated on average loan balances (b)  Effective January 1, 2023, the Company adopted accounting guidance which removed the separate recognition and measurement of troubled debt restructurings (c)   Allowance for purchased credit deteriorated and charged-off loans acquired from MUB

SUMMARY OF NET CHARGE-OFFS
($ in millions)	2Q						1Q						4Q						3Q						2Q
	2023			% (a)			2023			% (a)			2022			% (a)			2022			% (a)			2022			% (a)
Net charge-offs
Commercial	$	87			.26		$	42			.13		$	133			.41		$	24			.08		$	28			.10
Lease financing		3			.27			5			.46			5			.43			3			.25			2			.16
Total commercial		90			.26			47			.14			138			.41			27			.08			30			.10
Commercial mortgages		26			.24			115			1.07			25			.28			(6	)		(.08	)		(2	)		(.03	)
Construction and development		--			--			2			.07			17			.63			--			--			8			.33
Total commercial real estate		26			.19			117			.85			42			.36			(6	)		(.06	)		6			.06
Residential mortgages		114			.39			(1	)		--			(3	)		(.01	)		(5	)		(.02	)		(9	)		(.04	)
Credit card		199			3.06			175			2.78			175			2.76			119			1.96			118			2.08
Retail leasing		1			.08			1			.08			1			.07			1			.06			--			--
Home equity and second mortgages		(1	)		(.03	)		(1	)		(.03	)		--			--			(2	)		(.07	)		(3	)		(.11	)
Other		220			2.55			35			.40			225			2.17			28			.26			19			.17
Total other retail		220			1.69			35			.26			226			1.52			27			.18			16			.11
Total net charge-offs	$	649			.67		$	373			.39		$	578			.64		$	162			.19		$	161			.20
Gross charge-offs	$	755					$	469					$	669					$	275					$	276
Gross recoveries	$	106					$	96					$	91					$	113					$	115
(a)  Annualized and calculated on average loan balances

        9

U.S. Bancorp Second Quarter 2023 Results

The Company’s provision for credit losses for the second quarter of 2023 was $821 million, compared with $427 million in the first quarter of 2023 and $311 million in the second quarter of 2022. The second quarter of 2023 provision was $394 million (92.3 percent) higher than the first quarter of 2023 and $510 million higher than the second quarter of 2022. Excluding the notable item related to balance sheet optimization activities, the provision for credit losses for the second quarter of 2023 increased $151 million (35.4 percent) compared with the first quarter of 2023 and $267 million (85.9 percent) compared with the second quarter of 2022. During 2022 and continuing into 2023, economic uncertainty and recession risk have been increasing due to rising interest rates, inflationary concerns, market volatility, and pressure on corporate earnings related to these factors. Expected loss estimates consider various factors including customer specific information impacting changes in risk ratings, projected delinquencies, and the impact of economic deterioration on borrowers’ liquidity and ability to repay. While these credit quality factors have continued to perform better than pre-pandemic levels, the changing economic outlook is contributing to increased provision for credit losses. Consumer portfolio credit losses are stabilizing amid rising delinquencies and lower collateral values. Some stress in commercial portfolios is also anticipated as the impact of rising interest rates filters through financials. Commercial real estate valuations are also affected by rising interest rates and the changing demand for office properties.

Total net charge-offs in the second quarter of 2023 were $649 million, compared with $373 million in the first quarter of 2023 and $161 million in the second quarter of 2022. Net charge-offs for the second quarter of 2023 included $309 million of charge-offs related to balance sheet optimization activities. Net charge-offs for the first quarter of 2023 included $91 million of charge-offs related to uncollectible acquired loans, considered purchase credit deteriorated as of the date of the MUB acquisition. The net charge-off ratio was 0.67 percent in the second quarter of 2023 (0.35 percent excluding the impact of the balance sheet optimization activities), compared with 0.39 percent in the first quarter of 2023 (0.30 percent excluding the impact of the MUB acquisition-related charge-offs) and 0.20 percent in the second quarter of 2022. Net charge-offs, excluding the impact of the balance sheet optimization activities and acquisition-related charge offs, increased $58 million (20.6 percent) compared with the first quarter of 2023 and $179 million compared with the second quarter of 2022, reflecting higher charge-offs in most loan categories consistent with normalizing credit conditions.

The allowance for credit losses was $7,695 million at June 30, 2023, compared with $7,523 million at March 31, 2023, and $6,255 million at June 30, 2022. The increase in the allowance for credit losses was primarily driven by economic uncertainty and normalizing credit losses. The ratio of the allowance for credit losses to period-end loans was 2.03 percent at June 30, 2023, compared with 1.94 percent at March 31, 2023, and 1.88 percent at June 30, 2022. The ratio of the allowance for credit losses to nonperforming loans was 739 percent at June 30, 2023, compared with 660 percent at March 31, 2023, and 863 percent at June 30, 2022.

Nonperforming assets were $1,085 million at June 30, 2023, compared with $1,181 million at March 31, 2023, and $770 million at June 30, 2022. The ratio of nonperforming assets to loans and other real estate was 0.29 percent at June 30, 2023, compared with 0.30 percent at March 31, 2023, and 0.23 percent at June 30, 2022. The decrease in nonperforming assets on a linked quarter basis was primarily due to lower residential mortgage and commercial real estate nonperforming loans. The year-over-year increase in nonperforming assets primarily reflected nonperforming assets acquired from MUB. Accruing loans 90 days or more past due were $474 million at June 30, 2023, compared with $494 million at March 31, 2023, and $423 million at June 30, 2022.

        10

U.S. Bancorp Second Quarter 2023 Results

DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES
(Percent)	Jun 30 2023		Mar 31 2023		Dec 31 2022		Sep 30 2022		Jun 30 2022
Delinquent loan ratios - 90 days or more past due
Commercial		.04		.05		.07		.03		.07
Commercial real estate		--		.01		.01		.05		.01
Residential mortgages		.08		.08		.08		.10		.12
Credit card		1.02		1.00		.88		.74		.69
Other retail		.12		.12		.12		.11		.10
Total loans		.12		.13		.13		.11		.13
Delinquent loan ratios - 90 days or more past due and nonperforming loans
Commercial		.21		.18		.19		.12		.19
Commercial real estate		.87		.98		.62		.46		.53
Residential mortgages		.26		.33		.36		.35		.40
Credit card		1.02		1.01		.88		.74		.69
Other retail		.39		.37		.37		.32		.35
Total loans		.40		.42		.38		.30		.35
ASSET QUALITY (a)
($ in millions)
	Jun 30		Mar 31		Dec 31		Sep 30		Jun 30
	2023		2023		2022		2022		2022
Nonperforming loans
Commercial	$	204	$	150	$	139	$	92	$	116
Lease financing		27		28		30		30		32
Total commercial		231		178		169		122		148
Commercial mortgages		361		432		251		110		147
Construction and development		113		103		87		57		59
Total commercial real estate		474		535		338		167		206
Residential mortgages		207		292		325		211		223
Credit card		--		1		1		--		--
Other retail		129		133		139		130		148
Total nonperforming loans		1,041		1,139		972		630		725
Other real estate		25		23		23		24		23
Other nonperforming assets		19		19		21		23		22
Total nonperforming assets	$	1,085	$	1,181	$	1,016	$	677	$	770
Accruing loans 90 days or more past due	$	474	$	494	$	491	$	393	$	423
Nonperforming assets to loans plus ORE (%)		.29		.30		.26		.20		.23
(a) Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due

        11

U.S. Bancorp Second Quarter 2023 Results

COMMON SHARES
(Millions)	2Q  2023		1Q  2023			4Q  2022		3Q  2022		2Q  2022
Beginning shares outstanding		1,533		1,531			1,486		1,486		1,486
Shares issued for stock incentive plans, acquisitions and other corporate purposes		--		3			45		--		--
Shares repurchased		--		(1	)		--		--		--
Ending shares outstanding		1,533		1,533			1,531		1,486		1,486

CAPITAL POSITION										Preliminary Data
($ in millions)	Jun 30 2023			Mar 31 2023			Dec 31 2022			Sep 30 2022			Jun 30 2022
Total U.S. Bancorp shareholders’ equity	$	53,019		$	52,989		$	50,766		$	47,513		$	48,605
Basel III Standardized Approach (a)
Common equity tier 1 capital	$	42,944		$	42,027		$	41,560		$	44,094		$	42,944
Tier 1 capital		50,187			49,278			48,813			51,346			50,195
Total risk-based capital		60,334			59,920			59,015			60,738			58,307
Common equity tier 1 capital ratio		9.1	%		8.5	%		8.4	%		9.7	%		9.7	%
Tier 1 capital ratio		10.6			10.0			9.8			11.2			11.4
Total risk-based capital ratio		12.7			12.1			11.9			13.3			13.2
Leverage ratio		7.5			7.5			7.9			8.7			8.6
Tangible common equity to tangible assets (b)		4.8			4.8			4.5			5.2			5.5
Tangible common equity to risk-weighted assets (b)		6.8			6.5			6.0			6.7			7.2
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (b)		8.9			8.3			8.1			9.4			9.4
(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 18

Total U.S. Bancorp shareholders’ equity was $53.0 billion at June 30, 2023, and at March 31, 2023, compared with $48.6 billion at June 30, 2022. The Company suspended all common stock repurchases at the beginning of the third quarter of 2021, except for those done exclusively in connection with its stock-based compensation programs, due to its pending acquisition of MUB’s core regional banking franchise. The Company will evaluate potential repurchases in connection with the potential capital requirements given the regulatory landscape.

All regulatory ratios continue to be in excess of “well-capitalized” requirements. The common equity tier 1 capital to risk-weighted assets ratio using the Basel III standardized approach was 9.1 percent at June 30, 2023, compared with 8.5 percent at March 31, 2023, and 9.7 percent at June 30, 2022. The common equity tier 1 capital to risk-weighted assets ratio, reflecting the full implementation of the current expected credit losses methodology was 8.9 percent at June 30, 2023, compared with 8.3 percent at March 31, 2023, and 9.4 percent at June 30, 2022.

        12

U.S. Bancorp Second Quarter 2023 Results

  Investor Conference Call

On Wednesday, July 19, 2023 at 9 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 live conference call will be available online or by telephone. To access the webcast and presentation, visit the U.S. Bancorp 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 877-692-8955. Participants calling from outside the United States and Canada, please dial 234-720-6979. The access code for all participants is 6030554. For those unable to participate during the live call, a replay will be available at approximately 12 p.m. CT on Wednesday, July 19, 2023. To access the replay, please visit the U.S. Bancorp website at usbank.com and click on “About Us”, “Investor Relations” and “Webcasts & Presentations.”

  About U.S. Bancorp

U.S. Bancorp, with approximately 77,000 employees and $681 billion in assets as of June 30, 2023, is the parent company of U.S. Bank National Association. The Minneapolis-based company serves millions of customers locally, nationally and globally through a diversified mix of businesses: Consumer and Business Banking; Payment Services; Corporate & Commercial Banking; and Wealth Management and Investment Services. Union Bank, consisting primarily of retail banking branches on the West Coast, joined U.S. Bancorp in 2022. U.S. Bancorp has been recognized for its approach to digital innovation, social responsibility, and customer service, including being named one of the 2023 World’s Most Ethical Companies and Fortune’s most admired superregional bank. To learn more, please visit the U.S. Bancorp website at usbank.com and click on “About Us”.

  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, future economic conditions and the anticipated future revenue, expenses, financial condition, asset quality, capital and liquidity levels, plans, prospects and operations of U.S. Bancorp. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “projects,” “forecasts,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.”

Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those set forth in forward-looking statements, including the following risks and uncertainties:

• Deterioration in general business and economic conditions or turbulence in domestic or global financial markets, which 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;

• Turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions, which could affect the ability of depository institutions, including U.S. Bank National Association, to attract and retain depositors, and could affect the ability of financial services providers, including U.S. Bancorp, to borrow or raise capital;

• Increases in Federal Deposit Insurance Corporation (“FDIC”) assessments due to bank failures;

• Actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions;

• Changes to regulatory capital, liquidity and resolution-related requirements applicable to large banking organizations in response to recent developments affecting the banking sector;

• Changes to statutes, regulations, or regulatory policies or practices, including capital and liquidity requirements, and the enforcement and interpretation of such laws and regulations, and U.S. Bancorp’s ability to address or satisfy those requirements and other requirements or conditions imposed by regulatory entities;

• Changes in interest rates;

• Increases in unemployment rates;

• Deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans;

• Risks related to originating and selling mortgages, including repurchase and indemnity demands, and related to U.S. Bancorp’s role as a loan servicer;

• Impacts of current, pending or future litigation and governmental proceedings;

        13

U.S. Bancorp Second Quarter 2023 Results

• Increased competition from both banks and non-banks;

• Effects of climate change and related physical and transition risks;

• Changes in customer behavior and preferences and the ability to implement technological changes to respond to customer needs and meet competitive demands;

• Breaches in data security;

• Failures or disruptions in or breaches of U.S. Bancorp’s operational, technology or security systems or infrastructure, or those of third parties;

• Failures to safeguard personal information;

• Impacts of pandemics, including the COVID-19 pandemic, natural disasters, terrorist activities, civil unrest, international hostilities and geopolitical events;

• Impacts of supply chain disruptions, rising inflation, slower growth or a recession;

• Failure to execute on strategic or operational plans;

• Effects of mergers and acquisitions and related integration;

• Effects of critical accounting policies and judgments;

• Effects of changes in or interpretations of tax laws and regulations;

• Management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk; and

• The risks and uncertainties more fully discussed in the section entitled “Risk Factors” of U.S. Bancorp’s Form 10-K for the year ended December 31, 2022, and subsequent filings with the Securities and Exchange Commission.

In addition, U.S. Bancorp’s acquisition of MUB presents risks and uncertainties, including, among others: the risk that the cost savings, any revenue synergies and other anticipated benefits of the acquisition may not be realized or may take longer than anticipated to be realized; and the possibility that the combination of MUB with U.S. Bancorp, including the integration of MUB, may be more costly or difficult to complete than anticipated or have unanticipated adverse results.

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. Readers are cautioned not to place undue reliance on any forward-looking statements. 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.

        14

U.S. Bancorp Second Quarter 2023 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.

The adjusted return on average assets, adjusted return on average common equity, adjusted net income and adjusted diluted earnings per common share exclude notable items related to the acquisition of MUB. Management uses these measures in their analysis of the Company’s performance and believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods.

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.

        15

CONSOLIDATED STATEMENT OF INCOME
(Dollars and Shares in Millions, Except Per Share Data)	Three Months Ended June 30,						Six Months Ended June 30,
(Unaudited)	2023			2022			2023			2022
Interest Income
Loans		$5,605			$2,869			$10,882			$5,468
Loans held for sale		38			54			69			114
Investment securities		1,077			806			2,151			1,523
Other interest income		806			96			1,388			138
Total interest income		7,526			3,825			14,490			7,243
Interest Expense
Deposits		1,939			177			3,444			257
Short-term borrowings		740			57			1,189			78
Long-term debt		432			156			808			300
Total interest expense		3,111			390			5,441			635
Net interest income		4,415			3,435			9,049			6,608
Provision for credit losses		821			311			1,248			423
Net interest income after provision for credit losses		3,594			3,124			7,801			6,185
Noninterest Income
Card revenue		422			399			782			737
Corporate payment products revenue		190			172			379			330
Merchant processing services		436			425			823			788
Trust and investment management fees		621			566			1,211			1,066
Service charges		324			334			648			667
Commercial products revenue		358			290			692			556
Mortgage banking revenue		131			142			259			342
Investment products fees		68			59			136			121
Securities gains (losses), net		3			19			(29	)		37
Other		173			142			332			300
Total noninterest income		2,726			2,548			5,233			4,944
Noninterest Expense
Compensation and employee benefits		2,646			2,246			5,292			4,495
Net occupancy and equipment		316			265			637			534
Professional services		141			111			275			225
Marketing and business development		122			106			244			186
Technology and communications		522			419			1,025			840
Other intangibles		159			40			319			87
Merger and integration charges		310			197			554			197
Other		353			340			778			662
Total noninterest expense		4,569			3,724			9,124			7,226
Income before income taxes		1,751			1,948			3,910			3,903
Applicable income taxes		382			414			837			811
Net income		1,369			1,534			3,073			3,092
Net (income) loss attributable to noncontrolling interests		(8	)		(3	)		(14	)		(4	)
Net income attributable to U.S. Bancorp		$1,361			$1,531			$3,059			$3,088
Net income applicable to U.S. Bancorp common shareholders		$1,281			$1,464			$2,873			$2,930
Earnings per common share		$.84			$.99			$1.87			$1.97
Diluted earnings per common share		$.84			$.99			$1.87			$1.97
Dividends declared per common share		$.48			$.46			$.96			$.92
Average common shares outstanding		1,533			1,486			1,532			1,485
Average diluted common shares outstanding		1,533			1,487			1,533			1,486

        16

CONSOLIDATED ENDING BALANCE SHEET
(Dollars in Millions)	June 30, 2023			December 31, 2022			June 30, 2022
Assets		(Unaudited	)					(Unaudited	)
Cash and due from banks		$70,642			$53,542			$39,124
Investment securities
Held-to-maturity		86,938			88,740			61,503
Available-for-sale		69,221			72,910			98,806
Loans held for sale		2,361			2,200			3,943
Loans
Commercial		136,775			135,690			125,983
Commercial real estate		54,357			55,487			39,753
Residential mortgages		114,449			115,845			82,114
Credit card		26,626			26,295			23,697
Other retail		47,221			54,896			60,822
Total loans		379,428			388,213			332,369
Less allowance for loan losses		(7,164	)		(6,936	)		(5,832	)
Net loans		372,264			381,277			326,537
Premises and equipment		3,695			3,858			3,177
Goodwill		12,486			12,373			10,157
Other intangible assets		6,634			7,155			4,487
Other assets		56,584			52,750			43,647
Total assets		$680,825			$674,805			$591,381
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing		$104,996			$137,743			$129,130
Interest-bearing		416,604			387,233			337,972
Total deposits		521,600			524,976			467,102
Short-term borrowings		32,334			31,216			24,963
Long-term debt		45,283			39,829			29,408
Other liabilities		28,124			27,552			20,839
Total liabilities		627,341			623,573			542,312
Shareholders’ equity
Preferred stock		6,808			6,808			6,808
Common stock		21			21			21
Capital surplus		8,742			8,712			8,555
Retained earnings		73,355			71,901			70,772
Less treasury stock		(25,189	)		(25,269	)		(27,190	)
Accumulated other comprehensive income (loss)		(10,718	)		(11,407	)		(10,361	)
Total U.S. Bancorp shareholders’ equity		53,019			50,766			48,605
Noncontrolling interests		465			466			464
Total equity		53,484			51,232			49,069
Total liabilities and equity		$680,825			$674,805			$591,381

        17

NON-GAAP FINANCIAL MEASURES
(Dollars in Millions, Unaudited)	June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022
Total equity		$53,484			$53,454			$51,232			$47,978			$49,069
Preferred stock		(6,808	)		(6,808	)		(6,808	)		(6,808	)		(6,808	)
Noncontrolling interests		(465	)		(465	)		(466	)		(465	)		(464	)
Goodwill (net of deferred tax liability) (1)		(11,493	)		(11,575	)		(11,395	)		(9,165	)		(9,204	)
Intangible assets (net of deferred tax liability), other than mortgage servicing rights		(2,490	)		(2,611	)		(2,792	)		(735	)		(780	)
Tangible common equity (a)		32,228			31,995			29,771			30,805			31,813
Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements related to the current expected credit losses methodology implementation		42,944			42,027			41,560			44,094			42,944
Adjustments (2)		(866	)		(866	)		(1,299	)		(1,300	)		(1,300	)
Common equity tier 1 capital, reflecting the full implementation of the current expected credit losses methodology (b)		42,078			41,161			40,261			42,794			41,644
Total assets		680,825			682,377			674,805			600,973			591,381
Goodwill (net of deferred tax liability) (1)		(11,493	)		(11,575	)		(11,395	)		(9,165	)		(9,204	)
Intangible assets (net of deferred tax liability), other than mortgage servicing rights		(2,490	)		(2,611	)		(2,792	)		(735	)		(780	)
Tangible assets (c)		666,842			668,191			660,618			591,073			581,397
Risk-weighted assets, determined in accordance with transitional regulatory capital requirements related to the current expected credit losses methodology implementation (d)		473,393	*		494,048			496,500			456,928			441,804
Adjustments (3)		(735	)*		(735	)		(620	)		(337	)		(317	)
Risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (e)		472,658	*		493,313			495,880			456,591			441,487
Ratios*
Tangible common equity to tangible assets (a)/(c)		4.8	%		4.8	%		4.5	%		5.2	%		5.5	%
Tangible common equity to risk-weighted assets (a)/(d)		6.8			6.5			6.0			6.7			7.2
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (b)/(e)		8.9			8.3			8.1			9.4			9.4
	Three Months Ended
	June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022
Net income applicable to U.S. Bancorp common shareholders		$1,281			$1,592			$853			$1,718			$1,464
Intangibles amortization (net-of-tax)		126			126			67			34			32
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization		1,407			1,718			920			1,752			1,496
Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangible amortization (f)		5,643			6,967			3,650			6,951			6,000
Average total equity		54,287			53,132			49,731			50,284			49,633
Average preferred stock		(6,808	)		(6,808	)		(6,808	)		(6,808	)		(6,808	)
Average noncontrolling interests		(465	)		(465	)		(466	)		(464	)		(467	)
Average goodwill (net of deferred tax liability) (1)		(11,527	)		(11,444	)		(9,202	)		(9,192	)		(9,246	)
Average intangible assets (net of deferred tax liability), other than mortgage servicing rights		(2,530	)		(2,681	)		(1,637	)		(758	)		(783	)
Average tangible common equity (g)		32,957			31,734			31,618			33,062			32,329
Return on tangible common equity (f)/(g)		17.1	%		22.0	%		11.5	%		21.0	%		18.6	%
Net interest income		$4,415			$4,634			$4,293			$3,827			$3,435
Taxable-equivalent adjustment (4)		34			34			32			30			29
Net interest income, on a taxable-equivalent basis		4,449			4,668			4,325			3,857			3,464
Net interest income, on a taxable-equivalent basis
(as calculated above)		4,449			4,668			4,325			3,857			3,464
Noninterest income		2,726			2,507			2,043			2,469			2,548
Less: Securities gains (losses), net		3			(32	)		(18	)		1			19
Total net revenue, excluding net securities gains (losses) (h)		7,172			7,207			6,386			6,325			5,993
Noninterest expense (i)		4,569			4,555			4,043			3,637			3,724
Less: Intangible amortization		159			160			85			43			40
Noninterest expense, excluding intangible amortization (j)		4,410			4,395			3,958			3,594			3,684
Efficiency ratio (i)/(h)		63.7	%		63.2	%		63.3	%		57.5	%		62.1	%
Tangible efficiency ratio (j)/(h)		61.5			61.0			62.0			56.8			61.5

* 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.

        18

NON-GAAP FINANCIAL MEASURES
	Three Months Ended									Six Months Ended
(Dollars and Shares in Millions, Except Per Share Data, Unaudited)	June 30, 2023			March 31, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Net income applicable to U.S. Bancorp common shareholders	$	1,281		$	1,592		$	1,464		$	2,873		$	2,930
Less: Notable items, including the impact of earnings allocated to participating stock awards (1), (2)		(429	)		(181	)		(153	)		(610	)		(153	)
Net income applicable to U.S. Bancorp common shareholders, excluding notable items (a)		1,710			1,773			1,617			3,483			3,083
Average diluted common shares outstanding (b)		1,533			1,532			1,487			1,533			1,486
Diluted earnings per common share, excluding notable items (a)/(b)	$	1.12		$	1.16		$	1.09		$	2.27		$	2.07
Net income attributable to U.S. Bancorp	$	1,361
Less: Notable items (1)		(432	)
Net income attributable to U.S. Bancorp, excluding notable items		1,793
Annualized net income attributable to U.S. Bancorp, excluding notable items (c)		7,192
Average assets (d)		673,012
Return on average assets, excluding notable items (c)/(d)		1.07	%
Net income applicable to U.S. Bancorp common shareholders, excluding notable items (as calculated above)	$	1,710
Annualized net income applicable to U.S. Bancorp common shareholders, excluding notable items (e)		6,859
Average common equity (f)		47,014
Return on average common equity, excluding notable items (e)/(f)		14.6	%
Net interest income	$	4,415
Taxable-equivalent adjustment (3)		34
Net interest income, on a taxable-equivalent basis		4,449
Net interest income, on a taxable-equivalent basis (as calculated above)		4,449
Noninterest income		2,726
Less: Securities gains (losses), net		3
Total net revenue, excluding net securities gains (losses)		7,172
Less: Notable items (1)		(22	)
Total net revenue, excluding net securities gains (losses) and notable items (g)		7,194
Noninterest expense		4,569
Less: Notable items (1)		310
Noninterest expense, excluding notable items (h)		4,259
Efficiency ratio, excluding notable items (h)/(g)		59.2	%
	Three Months Ended
	June 30, 2023			March 31, 2023			December 31, 2022
Net charge-offs	$	649		$	373		$	578
Less: Notable items (4)		309			91			368
Net charge-offs, excluding notable items		340			282			210
Annualized net charge-offs, excluding notable items (i)		1,364			1,144			833
Average loan balances (j)		388,817			386,750			359,811
Net charge-off ratio, excluding notable items (i)/(j)		.35	%		.30	%		.23	%

(1) Notable items of $575 million ($432 million net-of-tax) for the three months ended June 30, 2023 included $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $310 million of merger and integration-related charges and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions. Notable items for the three months ended March 31, 2023 included $244 million ($183 million net-of-tax) of merger and integration-related charges. Notable items for the three months ended June 30, 2022 included $197 million ($153 million net-of-tax) of merger and integration-related charges.

(2) Notable items of $819 million ($615 million net-of-tax) for the six months ended June 30, 2023 included $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $554 million of merger and integration-related charges and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions. Notable items for the six months ended June 30, 2022 included $197 million ($153 million net-of-tax) of merger and integration-related charges.

(3) 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.

(4) Notable items for the three months ended June 30, 2023 included $309 million of net charge-offs related to balance sheet repositioning and capital management actions. Notable items for the three months ended March 31, 2023 included $91 million of net charge-offs related to uncollectible acquired loans, considered purchase credit deteriorated as of the date of the acquisition. Notable items for the three months ended December 31, 2022 included $179 million of net charge-offs related to uncollectible MUB acquired loans as well as $189 million of net charge-offs related to balance sheet repositioning and capital management actions.

        19

LINE OF BUSINESS FINANCIAL PERFORMANCE																			Preliminary data
($ in millions)	Net Income Attributable to U.S. Bancorp									Percent Change						Net Income Attributable to U.S. Bancorp
Business Line	2Q 2023			1Q 2023			2Q 2022			2Q23 vs 1Q23			2Q23 vs 2Q22			YTD 2023			YTD 2022			Percent Change
Corporate and Commercial Banking	$	435		$	607		$	376			(28.3	)		15.7		$	1,042		$	784			32.9
Consumer and Business Banking		598			680			483			(12.1	)		23.8			1,278			846			51.1
Wealth Management and Investment Services		403			417			365			(3.4	)		10.4			820			609			34.6
Payment Services		350			343			394			2.0			(11.2	)		693			771			(10.1	)
Treasury and Corporate Support		(425	)		(349	)		(87	)		(21.8	)		nm			(774	)		78			nm
Consolidated Company	$	1,361		$	1,698		$	1,531			(19.8	)		(11.1	)	$	3,059		$	3,088			(.9	)
	Income Before Provision and Taxes									Percent Change						Income Before Provision and Taxes
	2Q 2023			1Q 2023			2Q 2022			2Q23 vs 1Q23			2Q23 vs 2Q22			YTD 2023			YTD 2022			Percent Change
Corporate and Commercial Banking	$	730		$	786		$	600			(7.1	)		21.7		$	1,516		$	1,150			31.8
Consumer and Business Banking		821			914			569			(10.2	)		44.3			1,735			1,100			57.7
Wealth Management and Investment Services		540			553			483			(2.4	)		11.8			1,093			817			33.8
Payment Services		781			678			747			15.2			4.6			1,459			1,380			5.7
Treasury and Corporate Support		(266	)		(311	)		(111	)		14.5			nm			(577	)		(65	)		nm
Consolidated Company	$	2,606		$	2,620		$	2,288			(.5	)		13.9		$	5,226		$	4,382			19.3

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 2023, 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 Preliminary  data 

($ in millions)								Percent Change
	2Q 2023		1Q 2023			2Q   2022		2Q23 vs 1Q23			2Q23 vs 2Q22			YTD 2023		YTD 2022		Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,019	$	1,080		$	799		(5.6	)		27.5		$	2,099	$	1,546		35.8
Noninterest income		347		319			272		8.8			27.6			666		519		28.3
Securities gains (losses), net		--		--			--		--			--			--		--		--
Total net revenue		1,366		1,399			1,071		(2.4	)		27.5			2,765		2,065		33.9
Noninterest expense		609		587			471		3.7			29.3			1,196		915		30.7
Other intangibles		27		26			--		3.8			nm			53		--		nm
Total noninterest expense		636		613			471		3.8			35.0			1,249		915		36.5
Income before provision and taxes		730		786			600		(7.1	)		21.7			1,516		1,150		31.8
Provision for credit losses		150		(24	)		98		nm			53.1			126		104		21.2
Income before income taxes		580		810			502		(28.4	)		15.5			1,390		1,046		32.9
Income taxes and
taxable-equivalent adjustment		145		203			126		(28.6	)		15.1			348		262		32.8
Net income		435		607			376		(28.3	)		15.7			1,042		784		32.9
Net (income) loss attributable to
noncontrolling interests		--		--			--		--			--			--		--		--
Net income attributable to U.S. Bancorp	$	435	$	607		$	376		(28.3	)		15.7		$	1,042	$	784		32.9
Average Balance Sheet Data
Loans	$	151,123	$	149,776		$	123,245		.9			22.6		$	150,455	$	119,598		25.8
Other earning assets		6,250		5,644			4,161		10.7			50.2			5,949		4,417		34.7
Goodwill		2,859		2,825			1,912		1.2			49.5			2,842		1,912		48.6
Other intangible assets		537		592			4		(9.3	)		nm			564		4		nm
Assets		173,101		169,654			137,809		2.0			25.6			171,389		132,899		29.0
Noninterest-bearing deposits		51,242		58,413			59,226		(12.3	)		(13.5	)		54,808		61,195		(10.4	)
Interest-bearing deposits		107,724		104,912			93,830		2.7			14.8			106,326		90,509		17.5
Total deposits		158,966		163,325			153,056		(2.7	)		3.9			161,134		151,704		6.2
Total U.S. Bancorp shareholders’ equity		18,244		17,302			13,992		5.4			30.4			17,776		13,862		28.2

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 generated $730 million of income before provision and taxes in the second quarter of 2023, compared with $600 million in the second quarter of 2022, and contributed $435 million of the Company’s net income in the second quarter of 2023. The provision for credit losses increased $52 million (53.1 percent) compared with the second quarter of 2022 primarily due to credit downgrades in commercial real estate and select commercial portfolios in the current quarter. Total net revenue was $295 million (27.5 percent) higher in the second quarter of 2023 due to an increase of $220 million (27.5 percent) in net interest income, and an increase of $75 million (27.6 percent) in total noninterest income. Net interest income increased due to the impact of rising interest rates on earning assets and the acquisition of MUB. Total noninterest income increased primarily due to the MUB acquisition and higher commercial products revenue mainly due to higher trading revenue. Total noninterest expense increased $165 million (35.0 percent) compared with the second quarter of 2022 primarily due to higher FDIC insurance expense driven by an increase in the assessment base and rate along with the inclusion of MUB in the current year, and higher net shared services expense driven by investment in support of business growth and the impact of the MUB acquisition, including intangible amortization driven by the core deposit intangible.

        3

 CONSUMER AND BUSINESS BANKING Preliminary  data 

($ in millions)								Percent Change
	2Q 2023		1Q 2023		2Q 2022			2Q23 vs 1Q23			2Q23 vs 2Q22			YTD 2023		YTD 2022			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	2,196	$	2,284	$	1,580			(3.9	)		39.0		$	4,480	$	3,063			46.3
Noninterest income		426		397		390			7.3			9.2			823		844			(2.5	)
Securities gains (losses), net		--		--		--			--			--			--		--			--
Total net revenue		2,622		2,681		1,970			(2.2	)		33.1			5,303		3,907			35.7
Noninterest expense		1,714		1,679		1,398			2.1			22.6			3,393		2,801			21.1
Other intangibles		87		88		3			(1.1	)		nm			175		6			nm
Total noninterest expense		1,801		1,767		1,401			1.9			28.6			3,568		2,807			27.1
Income before provision and taxes		821		914		569			(10.2	)		44.3			1,735		1,100			57.7
Provision for credit losses		24		7		(74	)		nm			nm			31		(26	)		nm
Income before income taxes		797		907		643			(12.1	)		24.0			1,704		1,126			51.3
Income taxes and taxable-equivalent adjustment		199		227		160			(12.3	)		24.4			426		280			52.1
Net income		598		680		483			(12.1	)		23.8			1,278		846			51.1
Net (income) loss attributable to noncontrolling interests		--		--		--			--			--			--		--			--
Net income attributable to U.S. Bancorp	$	598	$	680	$	483			(12.1	)		23.8		$	1,278	$	846			51.1
Average Balance Sheet Data
Loans	$	169,704	$	170,097	$	140,747			(.2	)		20.6		$	169,898	$	140,586			20.8
Other earning assets		2,512		2,179		2,576			15.3			(2.5	)		2,346		3,475			(32.5	)
Goodwill		4,531		4,490		3,244			.9			39.7			4,511		3,253			38.7
Other intangible assets		5,393		5,594		3,635			(3.6	)		48.4			5,493		3,406			61.3
Assets		187,507		187,928		155,700			(.2	)		20.4			187,715		156,320			20.1
Noninterest-bearing deposits		35,489		43,216		30,492			(17.9	)		16.4			39,331		30,721			28.0
Interest-bearing deposits		187,793		181,439		164,269			3.5			14.3			184,632		163,123			13.2
Total deposits		223,282		224,655		194,761			(.6	)		14.6			223,963		193,844			15.5
Total U.S. Bancorp shareholders’ equity		16,516		16,702		12,326			(1.1	)		34.0			16,608		12,270			35.4

Consumer and Business Banking comprises consumer banking, small business banking and consumer lending. Products and services are delivered through banking offices, telephone servicing and sales, on-line services, direct mail, ATM processing, mobile devices, distributed mortgage loan officers, and intermediary relationships including auto dealerships, mortgage banks, and strategic business partners.

Consumer and Business Banking generated $821 million of income before provision and taxes in the second quarter of 2023, compared with $569 million in the second quarter of 2022, and contributed $598 million of the Company’s net income in the second quarter of 2023. The provision for credit losses increased $98 million compared with the second quarter of 2022 due to normalizing credit conditions. Total net revenue was higher by $652 million (33.1 percent) in the second quarter of 2023 due to an increase of $616 million (39.0 percent) in net interest income, and an increase in total noninterest income of $36 million (9.2 percent). Net interest income increased due to the to the impact of rising interest rates on earning assets and the acquisition of MUB. Total noninterest income increased due to the acquisition of MUB. Total noninterest expense increased $400 million (28.6 percent) in the second quarter of 2023 compared with the second quarter of 2022 due to increases in net shared services expense due to investments in digital capabilities and the impact of the MUB acquisition, including intangible amortization driven by the core deposit intangible.

        4

WEALTH MANAGEMENT AND INVESTMENT SERVICES																	Preliminary data
($ in millions)									Percent Change
	2Q 2023		1Q 2023			2Q 2022			2Q23 vs 1Q23			2Q23 vs 2Q22			YTD 2023		YTD 2022		Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	482	$	517		$	370			(6.8	)		30.3		$	999	$	662		50.9
Noninterest income		728		701			652			3.9			11.7			1,429		1,247		14.6
Securities gains (losses), net		--		--			--			--			--			--		--		--
Total net revenue		1,210		1,218			1,022			(.7	)		18.4			2,428		1,909		27.2
Noninterest expense		653		648			536			.8			21.8			1,301		1,079		20.6
Other intangibles		17		17			3			--			nm			34		13		nm
Total noninterest expense		670		665			539			.8			24.3			1,335		1,092		22.3
Income before provision and taxes		540		553			483			(2.4	)		11.8			1,093		817		33.8
Provision for credit losses		3		(3	)		(4	)		nm			nm			--		4		nm
Income before income taxes		537		556			487			(3.4	)		10.3			1,093		813		34.4
Income taxes and
taxable-equivalent adjustment		134		139			122			(3.6	)		9.8			273		204		33.8
Net income		403		417			365			(3.4	)		10.4			820		609		34.6
Net (income) loss attributable to
noncontrolling interests		--		--			--			--			--			--		--		--
Net income attributable to U.S. Bancorp	$	403	$	417		$	365			(3.4	)		10.4		$	820	$	609		34.6
Average Balance Sheet Data
Loans	$	24,568	$	24,311		$	22,285			1.1			10.2		$	24,441	$	21,483		13.8
Other earning assets		421		380			233			10.8			80.7			401		237		69.2
Goodwill		1,792		1,787			1,718			.3			4.3			1,790		1,739		2.9
Other intangible assets		426		442			300			(3.6	)		42.0			434		283		53.4
Assets		29,008		28,604			25,728			1.4			12.7			28,808		25,062		14.9
Noninterest-bearing deposits		21,199		22,043			25,194			(3.8	)		(15.9	)		21,619		26,378		(18.0	)
Interest-bearing deposits		80,061		87,290			75,824			(8.3	)		5.6			83,656		75,007		11.5
Total deposits		101,260		109,333			101,018			(7.4	)		.2			105,275		101,385		3.8
Total U.S. Bancorp shareholders’ equity		3,976		4,104			3,615			(3.1	)		10.0			4,040		3,604		12.1

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 generated $540 million of income before provision and taxes in the second quarter of 2023, compared with $483 million in the second quarter of 2022, and contributed $403 million of the Company’s net income in the second quarter of 2023. The provision for credit losses increased $7 million compared with the second quarter of 2022 primarily due to higher ending loan balance growth in the second quarter of 2023. Total net revenue increased $188 million (18.4 percent) in the second quarter of 2023 reflecting an increase of $112 million (30.3 percent) in net interest income and $76 million (11.7 percent) in total noninterest income. Net interest income increased primarily due to the acquisition of MUB. Total noninterest income increased primarily due to higher trust and investment management fees driven by the acquisition of MUB and core business growth. Total noninterest expense increased $131 million (24.3 percent) compared with the second quarter of 2022 reflecting the impact of the MUB acquisition.

        5

PAYMENT SERVICES											Preliminary data
($ in millions)							Percent Change
	2Q 2023		1Q 2023		2Q 2022		2Q23 vs 1Q23		2Q23 vs 2Q22		YTD 2023		YTD 2022		Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$645		$654		$619		(1.4)		4.2		$1,299		$1,241		4.7
Noninterest income		1,051		937		993		12.2		5.8		1,988		1,850		7.5
Securities gains (losses), net		--		--		--		--		--		--		--		--
Total net revenue		1,696		1,591		1,612		6.6		5.2		3,287		3,091		6.3
Noninterest expense		887		884		831		.3		6.7		1,771		1,643		7.8
Other intangibles		28		29		34		(3.4)		(17.6)		57		68		(16.2)
Total noninterest expense		915		913		865		.2		5.8		1,828		1,711		6.8
Income before provision and taxes		781		678		747		15.2		4.6		1,459		1,380		5.7
Provision for credit losses		314		220		221		42.7		42.1		534		351		52.1
Income before income taxes		467		458		526		2.0		(11.2)		925		1,029		(10.1)
Income taxes and
taxable-equivalent adjustment		117		115		132		1.7		(11.4)		232		258		(10.1)
Net income		350		343		394		2.0		(11.2)		693		771		(10.1)
Net (income) loss attributable to
noncontrolling interests		--		--		--		--		--		--		--		--
Net income attributable to U.S. Bancorp		$350		$343		$394		2.0		(11.2)		$693		$771		(10.1)
Average Balance Sheet Data
Loans		$37,913		$36,935		$33,854		2.6		12.0		$37,426		$32,802		14.1
Other earning assets		74		302		1,023		(75.5)		(92.8)		187		1,023		(81.7)
Goodwill		3,330		3,320		3,318		.3		.4		3,325		3,321		.1
Other intangible assets		359		385		437		(6.8)		(17.8)		372		450		(17.3)
Assets		44,127		42,854		41,014		3.0		7.6		43,493		39,762		9.4
Noninterest-bearing deposits		3,179		3,184		3,396		(.2)		(6.4)		3,181		3,534		(10.0)
Interest-bearing deposits		104		108		167		(3.7)		(37.7)		106		164		(35.4)
Total deposits		3,283		3,292		3,563		(.3)		(7.9)		3,287		3,698		(11.1)
Total U.S. Bancorp shareholders’ equity		9,127		8,968		8,113		1.8		12.5		9,048		8,065		12.2

Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate, government and purchasing card services and merchant processing.

Payment Services generated $781 million of income before provision and taxes in the second quarter of 2023, compared with $747 million in the second quarter of 2022, and contributed $350 million of the Company’s net income in the second quarter of 2023. The provision for credit losses increased $93 million (42.1 percent) compared with the second quarter of 2022 primarily due to normalizing credit conditions exhibited through increasing delinquency rates and lower consumer liquidity. Total net revenue increased $84 million (5.2 percent) in the second quarter of 2023 due to higher net interest income of $26 million (4.2 percent) and higher total noninterest income of $58 million (5.8 percent). Net interest income increased primarily due to higher loan yields driven by higher interest rates net of lower customer revolve rates, higher loan balances, and higher loan fees, mostly offset by higher funding costs. Total noninterest income increased year-over-year mainly due to continued strengthening of consumer and business spending across most sectors. Total noninterest expense increased $50 million (5.8 percent) reflecting higher net shared services expense driven by investment in infrastructure and technology development, in addition to higher compensation expense due to merit and core business growth.

        6

TREASURY AND CORPORATE SUPPORT													Preliminary data
($ in millions)							Percent Change
	2Q 2023		1Q 2023		2Q 2022		2Q23 vs 1Q23		2Q23 vs 2Q22		YTD 2023		YTD 2022		Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)		$107		$133		$96		(19.5)		11.5		$240		$152		57.9
Noninterest income		171		185		222		(7.6)		(23.0)		356		447		(20.4)
Securities gains (losses), net		3		(32)		19		nm		(84.2)		(29)		37		nm
Total net revenue		281		286		337		(1.7)		(16.6)		567		636		(10.8)
Noninterest expense		547		597		448		(8.4)		22.1		1,144		701		63.2
Other intangibles		--		--		--		--		--		--		--		--
Total noninterest expense		547		597		448		(8.4)		22.1		1,144		701		63.2
Income (loss) before provision and taxes		(266)		(311)		(111)		14.5		nm		(577)		(65)		nm
Provision for credit losses		330		227		70		45.4		nm		557		(10)		nm
Income (loss) before income taxes		(596)		(538)		(181)		(10.8)		nm		(1,134)		(55)		nm
Income taxes and
taxable-equivalent adjustment		(179)		(195)		(97)		8.2		(84.5)		(374)		(137)		nm
Net income (loss)		(417)		(343)		(84)		(21.6)		nm		(760)		82		nm
Net (income) loss attributable to
noncontrolling interests		(8)		(6)		(3)		(33.3)		nm		(14)		(4)		nm
Net income (loss) attributable to U.S. Bancorp		$(425)		$(349)		$(87)		(21.8)		nm		$(774)		$78		nm
Average Balance Sheet Data
Loans		$5,509		$5,631		$4,056		(2.2)		35.8		$5,569		$4,139		34.5
Other earning assets		215,765		212,359		204,581		1.6		5.5		214,072		205,558		4.1
Goodwill		--		--		--		--		--		--		--		--
Other intangible assets		9		36		--		(75.0)		nm		22		--		nm
Assets		239,269		236,407		219,660		1.2		8.9		237,846		224,620		5.9
Noninterest-bearing deposits		2,649		2,885		2,519		(8.2)		5.2		2,766		2,547		8.6
Interest-bearing deposits		7,825		6,834		1,599		14.5		nm		7,333		2,174		nm
Total deposits		10,474		9,719		4,118		7.8		nm		10,099		4,721		nm
Total U.S. Bancorp shareholders’ equity		5,959		5,591		11,120		6.6		(46.4)		5,776		13,503		(57.2)

Treasury and Corporate Support includes the Company’s investment portfolios, funding, capital management, interest rate risk management, income taxes not allocated to business segments, 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 generated a $266 million loss before provision and taxes in the second quarter of 2023, compared with a $111 million loss in the second quarter of 2022, and recorded a net loss of $425 million in the second quarter of 2023. The provision for credit losses increased $260 million compared with the second quarter of 2022 primarily due to balance sheet optimization activities and increased economic uncertainty. Total net revenue was lower by $56 million (16.6 percent) in the second quarter of 2023 due to an increase of $11 million (11.5 percent) in net interest income, offset by a decrease of $67 million (27.8 percent) in total noninterest income. Net interest income increased primarily due to the acquisition of MUB, partially offset by higher funding costs. The decrease in total noninterest income was primarily due to balance sheet optimization activities, along with lower securities gains and commercial products revenue. Total noninterest expense increased $99 million (22.1 percent) compared with the second quarter of 2022 primarily due to higher merger and integration-related charges related to the acquisition of MUB, the impact of the acquisition of MUB and higher compensation expense due to higher merit and hiring to support business growth, partially offset by lower net shared services costs. 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 2Q23 Earnings Conference Call July 19, 2023 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, future economic conditions and the anticipated future revenue, expenses, financial condition, asset quality, capital and liquidity levels, plans, prospects and operations of U.S. Bancorp. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “projects,” “forecasts,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those set forth in forward-looking statements, including the following risks and uncertainties: deterioration in general business and economic conditions or turbulence in domestic or global financial markets, which 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; turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions, which could affect the ability of depository institutions, including U.S. Bank National Association, to attract and retain depositors, and could affect the ability of financial services providers, including U.S. Bancorp, to borrow or raise capital; increase in Federal Deposit Insurance Corporation (“FDIC”) assessments due to bank failures; actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions; changes to regulatory capital, liquidity and resolution-related requirements applicable to large banking organizations in response to recent developments affecting the banking sector; changes to statutes, regulations, or regulatory policies or practices, including capital and liquidity requirements, and the enforcement and interpretation of such laws and regulations, and U.S. Bancorp’s ability to address or satisfy those requirements and other requirements or conditions imposed by regulatory entities; changes in interest rates; increases in unemployment rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; risks related to originating and selling mortgages, including repurchase and indemnity demands, and related to U.S. Bancorp’s role as a loan servicer; impacts of current, pending or future litigation and governmental proceedings; increased competition from both banks and non-banks; effects of climate change and related physical and transition risks; changes in customer behavior and preferences and the ability to implement technological changes to respond to customer needs and meet competitive demands; breaches in data security; failures or disruptions in or breaches of U.S. Bancorp’s operational or security systems or infrastructure, or those of third parties; failures to safeguard personal information; impacts of pandemics, including the COVID-19 pandemic, natural disasters, terrorist activities, civil unrest, international hostilities and geopolitical events; impacts of supply chain disruptions, rising inflation, slower growth or a recession; failure to execute on strategic or operational plans; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; effects of changes in or interpretations of tax laws and regulations; management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk; and the risks and uncertainties more fully discussed in the section entitled “Risk Factors” of U.S. Bancorp’s Form 10-K for the year ended December 31, 2022, and subsequent filings with the Securities and Exchange Commission. In addition, U.S. Bancorp’s acquisition of MUFG Union Bank presents risks and uncertainties, including, among others: the risk that the cost savings, any revenue synergies and other anticipated benefits of the acquisition may not be realized or may take longer than anticipated to be realized; and the possibility that the combination of MUFG Union Bank with U.S. Bancorp, including the integration of MUFG Union Bank, may be more costly or difficult to complete than anticipated or have unanticipated adverse results. 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. Readers are cautioned not to place undue reliance on any forward-looking statements. 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.

2Q23 Highlights 1 Adjusted for notable items (shown on slide 9) which include merger and integration-related charges, balance sheet optimization activities, and provisions for credit losses related to balance sheet repositioning and capital management actions 2 Non-GAAP; see slide 26 for calculation Successful conversion of Union Bank Accelerated accretion of CET1 capital Enhanced capital build driven by solid earnings generation and RWA initiatives Well maintained, strong balance sheet  Robust deposit levels inline with seasonality; prudent loan growth and robust liquidity Superior credit quality Strong, but normalizing, credit quality metrics driven by our through-the-cycle approach to risk management Strong financial performance Solid noninterest income growth and disciplined expense management $0.84 | $1.12 9.1% 60bps vs. 1Q23 $7.2 Billion $522 Billion $238 Million Reported Adjusted Earnings per share CET1 Ratio Net Revenue Period End Deposits Core Reserve Build 1,2

2Q23 Highlights Income Statement Balance Sheet Credit Quality Capital 1 2Q23 is adjusted for notable items (shown on slide 9) which include balance sheet repositioning and capital management actions, merger and integration-related charges and provisions for credit losses related to balance sheet repositioning and capital management actions. 1Q23 and 2Q22 is adjusted for notable items which include acquisition impacts related to merger and integration-related charges. 2 Non-GAAP; see slides 26 to 29 for calculations 3 Taxable-equivalent basis; see slide 26 for calculation 4 Common equity tier 1 capital to risk-weighted assets, reflecting Basel III standardized with 5 year current expected credit losses (CECL) transition 5 Earnings returned (millions) = total common dividends paid and aggregate value of common shares repurchased inclusive of treasury shares repurchased in connection with stock compensation plans

Performance Ratios Return on Average Assets Efficiency Ratio1 & Net Interest Margin2 Return on Average Common Equity Return on Tangible Common Equity1 1.15%3 1.07%3 15.7%3 14.6%3 24.3%3 22.3%3 63.2% 63.7% 1 Non-GAAP; see slides 26 and 27 for calculations 2 Net interest margin on a taxable-equivalent basis 3 Non-GAAP; see slides 26 and 27 for calculations; 2Q23 is adjusted for notable items (shown on slide 9) which include balance sheet repositioning and capital management actions, merger and integration-related charges, and provisions for credit losses related to balance sheet repositioning and capital management actions. 1Q23 and 2Q22 is adjusted for notable items which include acquisition impacts related to merger and integration-related charges. 1.16%3 15.3%3 20.5%3 62.1%

Successful Conversion of Union Bank We are now one company with one purpose and shared goals Conversion & integration complete Union Bank deposit accounts transition to U.S. Bank Enrollment in U.S. Bank mobile and online banking Conversion of Trust and Investment Management and card accounts ü ü Significant digital uptick Over a half-a-million enrollments to date and growing daily; leverage broad U.S. Bank product set ü Meaningful growth opportunities moving forward Added 1.2 million consumer and small business and 3,000 commercial customers Merger & Integration Costs: $883M Incurred through 2Q23 ~$1.4B Total expected Expected Cost Synergies ~$900M

Deposit Summary Our robust deposit base remains a granular and stable source of funding End of Period Deposit Balance Walk ($B) 3.2% Total Average Deposits ($B) Average Deposits by Business Line1 Strong deposit base driven by diverse mix of consumer / corporate and commercial customers Robust end of period deposits driven by normal operational seasonality (e.g., Corporate Trust) Noninterest-bearing mix shift trended lower in part due to creating a more positive experience for Union Bank customers Cumulative deposit beta of mid-40’s reflects the impact of rising rates and competitive industry dynamics 1 Consumer Banking includes Wealth Management; Corporate and Commercial Banking includes Treasury and Corporate Support deposits Our National footprint allows us the ability to digitally offer deposit products in all 50 states Highlights

Total Loan Portfolio Mix ($B) Prudent Loan Growth Disciplined loan growth focused on high margin / high return business; Commercial Real Estate (CRE) Office exposure remains manageable 1 OO = Owner Occupied 2 SFR = Single Family Residential CRE Exposure Loan growth in commercial, mortgage, and credit card continue to be offset by declines in auto and CRE 2Q23 end of period loan balance decline reflects balance sheet optimization actions while average loans are slightly up due to timing of actions CRE Office exposure represents 2% of total loans and 1% of total commitments CRE Office Key Metrics Balance $7.4B ACL % of Loans 8.5 % Origination LTV ~ 55 % CRE Office Type 53 % - Suburban areas 37 % - Central Business District 10 % - Specialty Highlights

2Q23 Earnings Summary – Notables 2Q23 Notable Items: Balance sheet optimization 2Q23 impacted by balance sheet repositioning and capital management actions Merger & integration charges Charges include the continued impact of merger and integrations costs associated with the Union Bank acquisition Provision for credit losses Provision impact related to balance sheet repositioning and capital management actions Prior Quarters Notable Items: Merger & integration charges 1Q23 and 2Q22 expenses of $244M and $197M, respectively, included merger and integration-related charges related to the Union Bank acquisition Notable Item Impacts: 1 Adjusted for notable items which include balance sheet optimization and acquisition impacts related to merger & integration charges

2Q23 Earnings Summary - Detail 1 Adjusted for notable items which include balance sheet repositioning and capital management actions and merger and integration charges 2 Taxable-equivalent basis 3 Non-GAAP; see slide 26 for calculation 3

Prior year period comparison impacted by rising rates and the acquisition of Union Bank Net interest income and margin decreased linked quarter as higher deposit pricing was partially offset by the impact of higher rates on earning assets Net Interest Income Net Interest Income (taxable-equivalent basis)1 - 4.7% Linked Quarter +28.4% Year-Over-Year $ in millions 1 Non-GAAP, see slide 26 for calculation

Noninterest income increased over prior year period driven by higher commercial products, payments, and Union Bank impact and core growth in trust & investment management On a linked quarter basis, noninterest income is higher from higher card revenue, merchant processing service revenue, core business growth in trust & investment management, and strength in our fixed income and capital markets business within commercial products Noninterest Income $ in millions Payments = card, corporate payment products and merchant processing All other = commercial products, investment products fees, securities gains (losses) and other 1 Adjusted for notable items related to balance sheet repositioning and capital management actions of ($22M) in 2Q23 2 Notable items include ($22M) of noninterest income related to balance sheet repositioning and capital management actions in 2Q23 Excluding Notable Items +9.6% Linked Quarter +7.8% Year-Over-Year Reported +8.7% Linked Quarter +7.0% Year-Over-Year

Noninterest Expense Adjusted expense increased vs. prior year driven by the impact of Union Bank operating expenses, core deposit intangibles, higher compensation, and other noninterest expenses  On a linked quarter basis, adjusted expense decreased due to prudent expense management This quarter includes $310M of merger and integration-related charges and $119M of intangible amortization driven by the core deposit intangible $ in millions 1 Adjusted for notable items of $310M in 2Q23, $244M in 1Q23, and $197M in 2Q22 2 Notable items include merger and integration charges of $310M in 2Q23, $244M in 1Q23, and $197M in 2Q22 Reported +0.3% Linked Quarter +22.7% Year-Over-Year Excluding Notable Items - 1.2% Linked Quarter +20.8% Year-Over-Year

Reported 2Q23 Adjusted1 2Q23 Change vs. Adjusted1 Reported 2Q23 Adjusted1 2Q23 1Q23 2Q22 Non-performing Assets Balance ($M) $1,085 $1,085 -$96 $315 NPAs/Period-end Loans plus OREO 0.29% 0.29% -1bps 6bps Net Charge-offs NCOs ($M) $649 $340 $58 $179 NCOs/Avg Loans 0.67% 0.35% 5bps 15bps Amount ($B) Loans and Leases Outstanding (%) Commercial $2.2 1.6% Commercial Real Estate 1.5 2.7% Residential Mortgage 0.9 0.8% Credit Card 2.2 8.2% Other Retail 0.9 2.0% Total $7.7 2.0% Core Provision for Credit Losses Trending Reserve Build Allowance for Credit Losses/Period-end Loans NCOs $311 $362 $4011 $427 $5781 $ in millions, unless specified 1Non-GAAP; see slide 28 for calculations; adjusted to exclude acquisition accounting treatment and balance sheet optimization Credit Quality Higher core net charge-offs as credit quality continues to normalize Increased reserve coverage driven by CRE Office, higher Credit Card balances, and changes in economic outlook Non-core credit losses were recognized in the Residential Mortgage and Auto portfolio driven by strategic balance sheet optimization actions Credit quality remains strong as we move toward normalized levels Allowance for Credit Losses by Loan Category, 2Q23 Net Charge-off and Nonperforming Assets Highlights 1 1

Accelerated Capital Accretion Ratios calculated in accordance with transitional regulatory requirements related to the current expected credit losses methodology 60 basis points of CET1 capital accretion this quarter 2nd Quarter Highlights Solid earnings accretion of ~20bps, net of distribution, reflecting our diversified business mix, resilient deposit base, and strong financial discipline Executed ~40bps of RWA / Balance Sheet optimization activities (e.g., targeted sales, securitization activity, return-focused initiatives), with low-to-neutral earnings impact We remain well-positioned to execute on our capital glide path as we move through 2023 and into 2024 60 bps

1 All results and guidance are on an adjusted basis 2 Taxable-equivalent basis 3 Adjusted for notable items (shown on slide 9) which include balance sheet repositioning and capital management actions and merger and integration charges 4 Non-GAAP; see slide 29 for calculation Third Quarter / Full Year 2023 Outlook1 Net interest income2 $4.4B $4.2B - $4.4B $17.5B - $18.0B Total Revenue, adjusted3 $7.2B $6.9B - $7.1B $28.0B - $29.0B Includes purchase accounting accretion $85M ~$75M ~$330M Total Noninterest expense, adjusted3 $4.3B ~$4.3B ~$17.0B Includes Core Deposit Intangibles Amortization related to Union Bank $119M ~$120M ~$500M Income Tax Rate, adjusted2,3,4 24% ~23-24% ~23-24% Notable Items: Merger & Integration $310M $150M - $200M $900M - $1.0B 2Q23 3Q23 FY 2023 Updated Guidance Bolded items indicates change in guidance

CET1 Capital Ratio1 9.1% 2023 CCAR Stress Capital Buffer 2.5% Enhanced Strength and Stability A stronger capital base enhances the strength and stability of U.S. Bancorp, which maintains a highly diverse mix of businesses, strong risk management capabilities, and “through-the-cycle” earnings power Robust Liquidity Profile Abundant cash levels and low-cost borrowing capacity Strong Capital Base Accelerated capital build through RWA optimization activities Proven Credit Quality Disciplined, through-the-cycle underwriting standards 1Q 2023 LCR 118% Total Available Liquidity $316B CRE Office to Total Loans, Commitments 2% | 1% Adjusted NCO Ratio2 35 bps Data as of 6/30/23 unless otherwise indicated 1 Common equity tier 1 capital to risk-weighted assets, reflecting Basel III standardized with 5 year CECL transition 2 Non-GAAP; see slide 28 for calculations; adjusted for notable items (shown on slide 9) 3 2023 second quarter taxable-equivalent basis; business line revenue percentages exclude Treasury and Corporate Support Diversified Business Mix Highly diversified business mix and scale creates sustainable earnings Business Mix3 38% Consumer & Business 25% Payments Services 20% Corporate & Commercial 17% Wealth Management & Investment Services

Appendix

Payment Services Fee Revenue Growth 1 Includes prepaid card Card revenue improved 5.8% YoY driven by sales growth and the Union Bank acquisition Merchant processing fee revenue increased 2.6% YoY driven by sales growth. 2Q YoY growth is lower than prior periods as travel continues to normalize Corporate Payments fee revenue increased 10.5% YoY driven by sales growth. Corporate T&E remains recovered over pre-pandemic levels at 101% 2Q23 vs. Prior Year

Payments Revenue Breakdown Total payments revenue, which includes net interest income and fee revenue, accounted for 24% of 2Q23 net revenue Total payment revenue grew 5.2% year-over-year due to higher sales volumes across all businesses Seasonal Considerations A Shift to Tech-led3 Revenue Historical Linked Quarter Seasonal Trends for Payment Fees Revenue2 1 Includes prepaid card 2 Linked quarter change based on trends from 2015 – 2019 3 Tech-led includes digital, omni-commerce and e-commerce as well as investments in integrated software providers; tech-led revenue also includes talech starting in 2022 Payment Fees as a % of Net Revenue (2Q23) 1Q payments fee revenue is typically seasonally down on a linked quarter basis reflecting lower post holiday sales activity Payments fee revenue growth, on a linked quarter basis, is typically seasonally strongest in 2Q Our multiyear investments in e-commerce and tech-led will continue to drive growth Payment Services 1 Tech-led3 Merchant Processing Fee Revenue Growth

Credit Quality – Commercial Key Statistics $ in millions2Q22 1Q23 2Q23 Average Loans$120,657 $135,683 $138,085 30-89 Delinquencies0.20% 0.33% 0.25% 90+ Delinquencies0.07% 0.05% 0.04% Nonperforming Loans0.12% 0.13% 0.17% Average Loans ($M) and Net Charge-offs Ratio 6.9% 6.5% 3.4% 2.1% 1.8% Linked Quarter Growth(a) Key Points Average loans increased by 1.8% on a linked quarter basis Utilization increased quarter over quarter from 23.7% to 24.7% 30-89 and 90+ day delinquencies are down slightly in 2Q23, while nonperforming loans increased by 4bps to 0.17% 1 Non-GAAP, see slide 28 for calculation; 4Q22 NCOs adjusted for acquisition related activities (a) Average loans at 4Q22 includes only 1 month of Union Bank (12/1 acquisition date), whereas 1Q23 and forward includes full quarter

Credit Quality – Commercial Real Estate $ in millions 2Q22 1Q23 2Q23 Average Loans$39,517 $ 55,595$54,934 30-89 Delinquencies0.06% 0.13% 0.13% 90+ Delinquencies0.01% 0.01% 0.00% Nonperforming Loans0.52% 0.97% 0.87% Key Points Average Loans ($M) and Net Charge-offs Ratio Key Statistics Linked Quarter Growth (a) 1.1% 1.2% 14.3% 21.6% (1.2%) 1 Average loans decreased (1.2%) on a linked quarter basis Net charge-off rate of 0.19% is flat to the adjusted net charge-off rate from the previous quarter 30-89, 90+ days delinquencies and nonperforming loans flat to slightly down from the previous quarter 1 Non-GAAP, see slide 28 for calculation; 4Q22 and 1Q23 NCOs adjusted for acquisition related activities 2 SFR = Single Family Residential (a) Average loans at 4Q22 includes only 1 month of Union Bank (12/1 acquisition date), whereas 1Q23 and forward includes full quarter

1 Credit Quality – Residential Mortgage $ in millions 2Q221Q232Q23 Average Loans$80,228 $116,287$117,606 30-89 Delinquencies0.12%0.13% 0.11% 90+ Delinquencies0.12% 0.08% 0.08% Nonperforming Loans0.27%0.25%0.18% 3.6% 4.7% 15.6% 19.8% 1.1% Key Points Average loans increased by 1.1% on a linked quarter basis Continued adjusted low losses and nonperforming loans were supported by strong portfolio credit quality and collateral values Reported net charge-off rate for 2Q23 includes impact of balance sheet optimization during the quarter Originations continued to reflect high credit quality (weighted average credit score of 770, weighted average LTV of 73%) Linked Quarter Growth (a) Average Loans ($M) and Net Charge-offs Ratio Key Statistics 1 Non-GAAP, see slide 28 for calculation, 2Q23 NCOs adjusted for balance sheet optimization activity (a) Average loans at 4Q22 includes only 1 month of Union Bank (12/1 acquisition date), whereas 1Q23 and forward includes full quarter

Credit Quality – Credit Card $ in millions 2Q221Q232Q23 Average Loans$22,748 $25,569 $26,046 30-89 Delinquencies0.84% 1.10% 1.15% 90+ Delinquencies0.69%1.00% 1.02% Nonperforming Loans - %- %- % Key Points Average loans increased by 1.9% on a linked quarter basis 30-89 and 90+ day delinquencies are up slightly in 2Q23 as credit quality continues to normalize Net charge-off rate of 3.06% reflects portfolio normalization Average Loans ($M) and Net Charge-offs Ratio Key Statistics 4.1% 6.0% 4.4% 1.6% 1.9% Linked Quarter Growth (a) 1 Non-GAAP, see slide 28 for calculation, 4Q22 NCOs adjusted for acquisition related activities (a) Average loans at 4Q22 includes only 1 month of Union Bank (12/1 acquisition date), whereas 1Q23 and forward includes full quarter 1

Credit Quality – Other Retail $ in millions 2Q221Q232Q23 Average Loans$61,037 $53,316$52,146 30-89 Delinquencies0.39%0.48% 0.50% 90+ Delinquencies0.10%0.12% 0.12% Nonperforming Loans0.24%0.25% 0.27% Key Points Average loans decreased by (2.7%) on a linked quarter basis Net charge-off rate was 0.22% on an adjusted basis Reported net charge-off rate of 1.69% includes impact of balance sheet optimization in the auto portfolio Average Loans ($M) and Net Charge-offs Ratio Key Statistics 1 Non-GAAP, see slide 28 for calculation, 4Q22 NCOs, adjusted, excludes acquisition impacts and balance sheet optimization and 2Q23 NCOs adjusted for balance sheet optimization activity (a) Average loans at 4Q22 includes only 1 month of Union Bank (12/1 acquisition date), whereas 1Q23 and forward includes full quarter Linked Quarter Growth (a) 1 (1.2%) (1.5%) (2.0%) (9.0%) (2.7%)

Non-GAAP Financial Measures (1), (2) – see slide 30 for corresponding notes

(2), (3) – see slide 30 for corresponding notes Non-GAAP Financial Measures

Non-GAAP Financial Measures (2) – see slide 30 for corresponding notes

Non-GAAP Financial Measures (1), (2), (3) – see slide 30 for corresponding notes

Notes 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. Notable items for the three months ended June 30, 2023 included $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $310 million of merger and integration-related charges and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions. $309 million of net charge-offs related to balance sheet optimization impact. Notable items for the three months ended March 31, 2023 included $244 million ($183 million net of tax) of merger and integration-related charges and $91 million of net charge-offs related to uncollectible acquired loans, considered purchase credit deteriorated as of the date of the acquisition. Notable items for the three months ended December 31, 2022 included $179 million of net charge-offs related to uncollectible acquired loans, considered purchase credit deteriorated as of the date of the acquisition, and $189 million of net charge-offs related to balance sheet optimization. Notable items for the three months ended June 30, 2022 included $197 million ($153 million net of tax) of merger and integration-related charges. Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.

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Document and Entity Information	Jul. 19, 2023
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Jul. 19, 2023
Entity Registrant Name	US BANCORP \DE\
Entity File Number	1-6880
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	41-0255900
Entity Address, Address Line One	800 Nicollet Mall
Entity Address, City or Town	Minneapolis
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55402
City Area Code	651
Local Phone Number	466-3000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0000036104
Amendment Flag	false
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $.01 par value per share
Trading Symbol	USB
Security Exchange Name	NYSE
Series A Preferred Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing 1/100th interest in a share of Series A Non-Cumulative Perpetual Preferred Stock, par value $1.00)
Trading Symbol	USB PrA
Security Exchange Name	NYSE
Series B Preferred Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing 1/1,000th interest in a share of Series B Non-Cumulative Perpetual Preferred Stock, par value $1.00)
Trading Symbol	USB PrH
Security Exchange Name	NYSE
Series K Preferred Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing 1/1,000th interest in a share of Series K Non-Cumulative Perpetual Preferred Stock, par value $1.00)
Trading Symbol	USB PrP
Security Exchange Name	NYSE
0.850% Medium-Term Notes, Series X (Senior), due June 7, 2024 [Member]
Document Information [Line Items]
Title of 12(b) Security	0.850% Medium-Term Notes, Series X (Senior), due June 7, 2024
Trading Symbol	USB/24B
Security Exchange Name	NYSE
Series L Preferred Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing 1/1,000th interest in a share of Series L Non-Cumulative Perpetual Preferred Stock, par value $1.00)
Trading Symbol	USB PrQ
Security Exchange Name	NYSE
Series M Preferred Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing 1/1,000th interest in a share of Series M Non-Cumulative Perpetual Preferred Stock, par value $1.00)
Trading Symbol	USB PrR
Security Exchange Name	NYSE
Series O Preferred Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing 1/1,000th interest in a share of Series O Non-Cumulative Perpetual Preferred Stock, par value $1.00)
Trading Symbol	USB PrS
Security Exchange Name	NYSE