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): | June 28, 2017 |
U.S. Bancorp
__________________________________________
(Exact name of registrant as specified in its charter)
Delaware | 1-6880 | 41-0255900 |
_____________________ (State or other jurisdiction |
_____________ (Commission |
______________ (I.R.S. Employer |
of incorporation) | File Number) | Identification No.) |
800 Nicollet Mall, Minneapolis, Minnesota | 55402 | |
_________________________________ (Address of principal executive offices) |
___________ (Zip Code) |
Registrants telephone number, including area code: | 651-466-3000 |
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-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 13(a) of the Exchange Act. [ ]
Item 8.01 Other Events.
On June 28, 2017, U.S. Bancorp announced that the Board of Governors of the Federal Reserve System did not object to the capital distribution plan included in U.S. Bancorp’s 2017 capital plan submitted as part of its 2017 Comprehensive Capital Analysis and Review. As a result of this non-objection, U.S. Bancorp expects to recommend in July that its board of directors approve an increase in the annual dividend rate on U.S. Bancorp common stock to $1.20, or $0.30 on a quarterly basis, beginning with the third quarter dividend payable in October 2017. U.S. Bancorp also announced that the board of directors has approved a four-quarter authorization to repurchase up to $2.6 billion of its outstanding common stock beginning on July 1, 2017. A copy of the press release is attached as Exhibit 99.1 hereto and is incorporated into this Item 8.01 by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Press release dated June 28, 2017.
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 | ||||
June 28, 2017 | By: |
/s/ James L. Chosy
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Name: James L. Chosy | ||||
Title: Executive Vice President and General Counsel |
Exhibit Index
Exhibit No. | Description | |
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99.1
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Press release dated June 28, 2017. |
News Release
U.S. Bancorp Receives No Objection to its 2017 Capital Plan
MINNEAPOLIS, MN (June 28, 2017) U.S. Bancorp today announced that the Federal Reserve did not object to the Companys 2017 Capital Plan following its conclusion and assessment of the 2017 Comprehensive Capital Analysis and Review (CCAR).
As a result of the Federal Reserves non-objection to U.S. Bancorps plan to increase its dividend rate, the Company will recommend in July that its board of directors approve an increase to the quarterly dividend rate beginning with the third quarter dividend payable in October 2017. The Company expects to recommend a third quarter dividend of $0.30 per common share, a 7.1 percent increase over the current dividend rate. At this quarterly dividend rate, the annual dividend will be equivalent to $1.20 per common share.
Additionally, the board of directors of U.S. Bancorp has approved a four-quarter authorization to repurchase up to $2.6 billion of its outstanding stock, beginning on July 1, 2017, to replace the current four-quarter authorization, which expires on June 30, 2017. U.S. Bancorps common stock may be repurchased through June 2018 in the open market or in privately negotiated transactions. The acquired common shares will be held as treasury shares and may be reissued for various corporate purposes.
We are very pleased to receive the Federal Reserves non-objection to our plan to increase our dividend and authorize a new share repurchase program, said Andy Cecere, president and chief executive officer of U.S. Bancorp. The results of this years Stress Test highlight the Companys ability to withstand and remain profitable under extraordinarily adverse economic conditions. This consistent performance will enable us to once again achieve our objective of returning 60 to 80 percent of earnings to shareholders in 2017 through dividends and share buybacks.
Minneapolis-based U.S. Bancorp (NYSE: USB), with $450 billion in assets as of March 31, 2017, is the parent company of U.S. Bank National Association, the fifth largest commercial bank in the United States. The Company operates 3,091 banking offices in 25 states and 4,838 ATMs, and provides a comprehensive line of banking, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.
Forward-looking Statements:
The following information appears in accordance with the Private Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. The forward-looking statements contained in this press release include, among other things, anticipated U.S. Bancorp capital distributions by dividends and share repurchases. There can be no assurance that U.S. Bancorp will distribute this or any amount of capital to its shareholders in the form of dividends or share repurchases in the future.
Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. A reversal or slowing of the current economic recovery or another severe contraction could adversely affect U.S. Bancorps revenues and the values of its assets and liabilities. Global financial markets could experience a recurrence of significant turbulence, which could reduce the availability of funding to certain financial institutions and lead to a tightening of credit, a reduction of business activity, and increased market volatility. Stress in the commercial real estate markets, as well as a downturn in the residential real estate markets could cause credit losses and deterioration in asset values. In addition, changes to statutes, regulations, or regulatory policies or practices could affect U.S. Bancorp in substantial and unpredictable ways. U.S. Bancorps results could also be adversely affected by deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in its investment securities portfolio; legal and regulatory developments; litigation; increased competition from both banks and non-banks; changes in customer behavior and preferences; breaches in data security; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and managements ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputational risk.
For discussion of these and other risks that may cause actual results to differ from expectations, refer to U.S. Bancorps Annual Report on Form 10-K for the year ended December 31, 2016, on file with the Securities and Exchange Commission, including the sections entitled Risk Factors and Corporate Risk Profile contained in Exhibit 13, and all subsequent filings with the Securities and Exchange Commission under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934. However, factors other than these also could adversely affect U.S. Bancorps results, and the reader should not consider these factors to be a complete set of all potential risks or uncertainties. Forward-looking statements speak only as of the date hereof, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.
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Contact:
Jennifer Thompson, U.S. Bank Investor Relations 612.303.0778; jen.thompson@usbank.com
Dana Ripley, U.S. Bank Corporate Communications 612.303.3167; dana.ripley@usbank.com