☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 41-0255900 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading symbols | 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 | ||||
Non-Cumulative Perpetual Preferred Stock, par value $1.00) | USB P | 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 |
Large accelerated filer ☑ | Accelerated filer ☐ | |
Non-accelerated filer ☐ | Smaller reporting company ☐ Emerging growth company ☐ |
Class | Outstanding as of April 30, | |
Common Stock, $0.01 Par Value |
Part I — Financial Information | ||||
6 | ||||
30 | ||||
32 | ||||
32 | ||||
21 | ||||
21 | ||||
21 | ||||
21 | ||||
23 | ||||
24 | ||||
27 | ||||
33 | ||||
Part II — Other Information | ||||
U.S. Bancorp | 1 |
2 |
Table 1 | Selected Financial Data |
Three Months Ended March 31 | Three Months Ended March 31 | |||||||||||||||||||||||
(Dollars and Shares in Millions, Except Per Share Data) | 2021 | 2020 | Percent Change | 2022 | 2021 | Percent Change | ||||||||||||||||||
Condensed Income Statement | Condensed Income Statement | |||||||||||||||||||||||
Net interest income | $ | 3,063 | $ | 3,223 | (5.0 | )% | $ | 3,173 | $ | 3,063 | 3.6 | % | ||||||||||||
Taxable-equivalent adjustment (a) | 26 | 24 | 8.3 | 27 | 26 | 3.8 | ||||||||||||||||||
Net interest income (taxable-equivalent basis) (b) | 3,089 | 3,247 | (4.9 | ) | 3,200 | 3,089 | 3.6 | |||||||||||||||||
Noninterest income | 2,381 | 2,525 | (5.7 | ) | 2,396 | 2,381 | .6 | |||||||||||||||||
Total net revenue | 5,470 | 5,772 | (5.2 | ) | 5,596 | 5,470 | 2.3 | |||||||||||||||||
Noninterest expense | 3,379 | 3,316 | 1.9 | 3,502 | 3,379 | 3.6 | ||||||||||||||||||
Provision for credit losses | (827 | ) | 993 | * | 112 | (827 | ) | * | ||||||||||||||||
Income before taxes | 2,918 | 1,463 | 99.5 | 1,982 | 2,918 | (32.1 | ) | |||||||||||||||||
Income taxes and taxable-equivalent adjustment | 633 | 284 | * | 424 | 633 | (33.0 | ) | |||||||||||||||||
Net income | 2,285 | 1,179 | 93.8 | 1,558 | 2,285 | (31.8 | ) | |||||||||||||||||
Net (income) loss attributable to noncontrolling interests | (5 | ) | (8 | ) | 37.5 | (1 | ) | (5 | ) | 80.0 | ||||||||||||||
Net income attributable to U.S. Bancorp | $ | 2,280 | $ | 1,171 | 94.7 | $ | 1,557 | $ | 2,280 | (31.7 | ) | |||||||||||||
Net income applicable to U.S. Bancorp common shareholders | $ | 2,175 | $ | 1,088 | 99.9 | $ | 1,466 | $ | 2,175 | (32.6 | ) | |||||||||||||
Per Common Share | Per Common Share | |||||||||||||||||||||||
Earnings per share | $ | 1.45 | $ | .72 | * | % | $ | .99 | $ | 1.45 | (31.7 | )% | ||||||||||||
Diluted earnings per share | 1.45 | .72 | * | .99 | 1.45 | (31.7 | ) | |||||||||||||||||
Dividends declared per share | .42 | .42 | — | .46 | .42 | 9.5 | ||||||||||||||||||
Book value per share (c) | 30.53 | 30.24 | 1.0 | 29.87 | 30.53 | (2.2 | ) | |||||||||||||||||
Market value per share | 55.31 | 34.45 | 60.6 | 53.15 | 55.31 | (3.9 | ) | |||||||||||||||||
Average common shares outstanding | 1,502 | 1,518 | (1.1 | ) | 1,485 | 1,502 | (1.1 | ) | ||||||||||||||||
Average diluted common shares outstanding | 1,503 | 1,519 | (1.1 | ) | 1,486 | 1,503 | (1.1 | ) | ||||||||||||||||
Financial Ratios | ||||||||||||||||||||||||
Return on average assets | 1.69 | % | .95 | % | 1.09 | % | 1.69 | % | ||||||||||||||||
Return on average common equity | 19.0 | 9.7 | 12.7 | 19.0 | ||||||||||||||||||||
Net interest margin (taxable-equivalent basis) (a) | 2.50 | 2.91 | 2.44 | 2.50 | ||||||||||||||||||||
Efficiency ratio (b) | 62.1 | 58.0 | 62.8 | 62.1 | ||||||||||||||||||||
Net charge-offs as a percent of average loans outstanding | .31 | .53 | .21 | .31 | ||||||||||||||||||||
Average Balances | Average Balances | |||||||||||||||||||||||
Loans | $ | 293,989 | $ | 297,657 | (1.2 | )% | $ | 312,966 | $ | 293,989 | 6.5 | % | ||||||||||||
Loans held for sale | 10,032 | 4,748 | * | 5,479 | 10,032 | (45.4 | ) | |||||||||||||||||
Investment securities (d) | 145,520 | 120,843 | 20.4 | 174,762 | 145,520 | 20.1 | ||||||||||||||||||
Earning assets | 497,711 | 447,722 | 11.2 | 529,837 | 497,711 | 6.5 | ||||||||||||||||||
Assets | 548,734 | 494,807 | 10.9 | 577,402 | 548,734 | 5.2 | ||||||||||||||||||
Noninterest-bearing deposits | 118,352 | 74,142 | 59.6 | 127,963 | 118,352 | 8.1 | ||||||||||||||||||
Deposits | 426,364 | 362,804 | 17.5 | 454,176 | 426,364 | 6.5 | ||||||||||||||||||
Short-term borrowings | 13,107 | 20,253 | (35.3 | ) | 19,038 | 13,107 | 45.3 | |||||||||||||||||
Long-term debt | 39,463 | 43,846 | (10.0 | ) | 32,972 | 39,463 | (16.4 | ) | ||||||||||||||||
Total U.S. Bancorp shareholders’ equity | 52,729 | 51,146 | 3.1 | 53,466 | 52,729 | 1.4 | ||||||||||||||||||
March 31, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||
Period End Balances | Period End Balances | |||||||||||||||||||||||
Loans | $ | 294,427 | $ | 297,707 | (1.1 | )% | $ | 318,934 | $ | 312,028 | 2.2 | % | ||||||||||||
Investment securities | 156,003 | 136,840 | 14.0 | 167,247 | 174,821 | (4.3 | ) | |||||||||||||||||
Assets | 553,375 | 553,905 | (.1 | ) | 586,517 | 573,284 | 2.3 | |||||||||||||||||
Deposits | 433,761 | 429,770 | .9 | 461,546 | 456,083 | 1.2 | ||||||||||||||||||
Long-term debt | 37,419 | 41,297 | (9.4 | ) | 32,931 | 32,125 | 2.5 | |||||||||||||||||
Total U.S. Bancorp shareholders’ equity | 51,678 | 53,095 | (2.7 | ) | 51,200 | 54,918 | (6.8 | ) | ||||||||||||||||
Asset Quality | ||||||||||||||||||||||||
Nonperforming assets | $ | 1,202 | $ | 1,298 | (7.4 | )% | $ | 811 | $ | 878 | (7.6 | )% | ||||||||||||
Allowance for credit losses | 6,960 | 8,010 | (13.1 | ) | 6,105 | 6,155 | (.8 | ) | ||||||||||||||||
Allowance for credit losses as a percentage of period-end loans | 2.36 | % | 2.69 | % | 1.91 | % | 1.97 | % | ||||||||||||||||
Capital Ratios | ||||||||||||||||||||||||
Common equity tier 1 capital | 9.9 | % | 9.7 | % | 9.8 | % | 10.0 | % | ||||||||||||||||
Tier 1 capital | 11.5 | 11.3 | 11.5 | 11.6 | ||||||||||||||||||||
Total risk-based capital | 13.5 | 13.4 | 13.4 | 13.4 | ||||||||||||||||||||
Leverage | 8.4 | 8.3 | 8.6 | 8.6 | ||||||||||||||||||||
Total leverage exposure | 7.4 | 7.3 | 7.0 | 6.9 | ||||||||||||||||||||
Tangible common equity to tangible assets (b) | 6.6 | 6.9 | 6.0 | 6.8 | ||||||||||||||||||||
Tangible common equity to risk-weighted assets (b) | 9.1 | 9.5 | 8.0 | 9.2 | ||||||||||||||||||||
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (b) | 9.5 | 9.3 | 9.5 | 9.6 |
* | Not meaningful |
(a) | 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. |
(b) | See Non-GAAP Financial Measures beginning on page 30. |
(c) | Calculated as U.S. Bancorp common shareholders’ equity divided by common shares outstanding at end of the period. |
(d) | Excludes unrealized gains and losses on available-for-sale available-for-sale held-to-maturity. |
3 |
4 |
Table 2 | Noninterest Income |
Three Months Ended March 31 | Three Months Ended March 31 | |||||||||||||||||||||||||||
(Dollars in Millions) | 2021 | 2020 | Percent Change | 2022 | 2021 | Percent Change | ||||||||||||||||||||||
Credit and debit card revenue | Credit and debit card revenue | $ | 336 | $ | 304 | 10.5 | % | $ | 338 | $ | 336 | .6 | % | |||||||||||||||
Corporate payment products revenue | Corporate payment products revenue | 126 | 145 | (13.1 | ) | 158 | 126 | 25.4 | ||||||||||||||||||||
Merchant processing services | Merchant processing services | 318 | 337 | (5.6 | ) | 363 | 318 | 14.2 | ||||||||||||||||||||
Trust and investment management fees | Trust and investment management fees | 444 | 427 | 4.0 | 500 | 444 | 12.6 | |||||||||||||||||||||
Deposit service charges | Deposit service charges | 161 | 209 | (23.0 | ) | 177 | 161 | 9.9 | ||||||||||||||||||||
Treasury management fees | Treasury management fees | 147 | 143 | 2.8 | 156 | 147 | 6.1 | |||||||||||||||||||||
Commercial products revenue | Commercial products revenue | 280 | 246 | 13.8 | 266 | 280 | (5.0 | ) | ||||||||||||||||||||
Mortgage banking revenue | Mortgage banking revenue | 299 | 395 | (24.3 | ) | 200 | 299 | (33.1 | ) | |||||||||||||||||||
Investment products fees | Investment products fees | 55 | 49 | 12.2 | 62 | 55 | 12.7 | |||||||||||||||||||||
Securities gains (losses), net | Securities gains (losses), net | 25 | 50 | (50.0 | ) | 18 | 25 | (28.0 | ) | |||||||||||||||||||
Other | 190 | 220 | (13.6 | ) | 158 | 190 | (16.8 | ) | ||||||||||||||||||||
Total noninterest income | Total noninterest income | $ | 2,381 | $ | 2,525 | (5.7 | )% | $ | 2,396 | $ | 2,381 | .6 | % |
5 |
Table 3 | Noninterest Expense |
Three Months Ended March 31 | Three Months Ended March 31 | |||||||||||||||||||||||
(Dollars in Millions) | 2021 | 2020 | Percent Change | 2022 | 2021 | Percent Change | ||||||||||||||||||
Compensation | $ | 1,803 | $ | 1,620 | 11.3 | % | $ | 1,853 | $ | 1,803 | 2.8 | % | ||||||||||||
Employee benefits | 384 | 352 | 9.1 | 396 | 384 | 3.1 | ||||||||||||||||||
Net occupancy and equipment | 263 | 276 | (4.7 | ) | 269 | 263 | 2.3 | |||||||||||||||||
Professional services | 98 | 99 | (1.0 | ) | 114 | 98 | 16.3 | |||||||||||||||||
Marketing and business development | 48 | 74 | (35.1 | ) | 80 | 48 | 66.7 | |||||||||||||||||
Technology and communications | 359 | 289 | 24.2 | 349 | 359 | (2.8 | ) | |||||||||||||||||
Postage, printing and supplies | 69 | 72 | (4.2 | ) | 72 | 69 | 4.3 | |||||||||||||||||
Other intangibles | 38 | 42 | (9.5 | ) | 47 | 38 | 23.7 | |||||||||||||||||
Other | 317 | 492 | (35.6 | ) | 322 | 317 | 1.6 | |||||||||||||||||
Total noninterest expense | $ | 3,379 | $ | 3,316 | 1.9 | % | $ | 3,502 | $ | 3,379 | 3.6 | % | ||||||||||||
Efficiency ratio (a) | 62.1 | % | 58.0 | % | 62.8 | % | 62.1 | % |
(a) | See Non-GAAP Financial Measures beginning on page 30. |
6 | U.S. Bancorp |
Table 4 |
March 31, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Amortized Cost | Fair Value | Weighted- Average Maturity in Years | Weighted- Average Yield (d) | Amortized Cost | Fair Value | Weighted- Average Maturity in Years | Weighted- Average Yield (d) | Amortized Cost | Fair Value | Weighted- Average Maturity in Years | Weighted- Average Yield (d) | Amortized Cost | Fair Value | Weighted- Average Maturity in Years | Weighted- Average Yield (d) | ||||||||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities (a) | $ | 43,654 | $ | 40,572 | 9.7 | 1.64 | % | $ | 41,858 | $ | 41,812 | 7.4 | 1.45 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total held-to-maturity | $ | 43,654 | $ | 40,572 | 9.7 | 1.64 | % | $ | 41,858 | $ | 41,812 | 7.4 | 1.45 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agencies | $ | 24,401 | $ | 24,317 | 4.4 | 1.31 | % | $ | 21,954 | $ | 22,391 | 3.8 | 1.37 | % | $ | 27,653 | $ | 26,350 | 7.2 | 1.83 | % | $ | 36,648 | $ | 36,609 | 6.7 | 1.54 | % | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities (a) | 122,883 | 122,262 | 6.1 | 1.44 | 103,282 | 105,374 | 3.0 | 1.47 | 91,277 | 86,955 | 7.3 | 1.80 | 85,394 | 85,564 | 4.9 | 1.58 | ||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities (a) | 197 | 202 | 5.9 | 1.09 | 200 | 205 | 6.2 | 1.47 | 4 | 7 | 4.1 | 2.00 | 62 | 66 | 5.2 | 1.53 | ||||||||||||||||||||||||||||||||||||||||||||||||
Obligations of state and political subdivisions (b) (c) | 8,687 | 9,215 | 6.7 | 3.89 | 8,166 | 8,861 | 6.3 | 3.99 | 10,701 | 10,274 | 9.5 | 3.64 | 10,130 | 10,717 | 6.6 | 3.67 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | 7 | 7 | .1 | 2.07 | 9 | 9 | .1 | 1.81 | 7 | 7 | .1 | 2.07 | 7 | 7 | 3.4 | 2.07 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total investment securities | $ | 156,175 | $ | 156,003 | 5.9 | 1.55 | % | $ | 133,611 | $ | 136,840 | 3.4 | 1.61 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale | $ | 129,642 | $ | 123,593 | 7.5 | 1.96 | % | $ | 132,241 | $ | 132,963 | 5.5 | 1.73 | % |
(a) | Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments. |
(b) | Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount. |
(c) | Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par. |
(d) | Yields on investment securities are computed based on amortized cost balances. Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. |
U.S. Bancorp | 7 |
8 | U.S. Bancorp |
U.S. Bancorp | 9 |
10 | U.S. Bancorp |
Residential Mortgages (Dollars in Millions) | Interest Only | Amortizing | Total | Percent of Total | Interest Only | Amortizing | Total | Percent of Total | ||||||||||||||||||||||||
Loan-to-Value | ||||||||||||||||||||||||||||||||
Less than or equal to 80% | $ | 3,138 | $ | 55,505 | $ | 58,643 | 79.7 | % | $ | 4,097 | $ | 64,696 | $ | 68,793 | 87.6 | % | ||||||||||||||||
Over 80% through 90% | 7 | 3,146 | 3,153 | 4.3 | 1 | 2,277 | 2,278 | 2.9 | ||||||||||||||||||||||||
Over 90% through 100% | — | 291 | 291 | .4 | — | 210 | 210 | .3 | ||||||||||||||||||||||||
Over 100% | — | 91 | 91 | .1 | — | 63 | 63 | .1 | ||||||||||||||||||||||||
No LTV available | — | 10 | 10 | — | — | 19 | 19 | — | ||||||||||||||||||||||||
Loans purchased from GNMA mortgage pools (a) | — | 11,436 | 11,436 | 15.5 | — | 7,124 | 7,124 | 9.1 | ||||||||||||||||||||||||
Total (b) | $ | 3,145 | $ | 70,479 | $ | 73,624 | 100.0 | % | $ | 4,098 | $ | 74,389 | $ | 78,487 | 100.0 | % |
(a) | Represents loans purchased from Government National Mortgage Association (“GNMA”) mortgage pools whose payments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. |
(b) | At March 31, sub-prime. |
Home Equity and Second Mortgages (Dollars in Millions) | Lines | Loans | Total | Percent of Total | Lines | Loans | Total | Percent of Total | ||||||||||||||||||||||||
Loan-to-Value | ||||||||||||||||||||||||||||||||
Loan-to-Value Loan-to-Value | ||||||||||||||||||||||||||||||||
Less than or equal to 80% | $ | 9,796 | $ | 654 | $ | 10,450 | 89.5 | % | $ | 9,065 | $ | 681 | $ | 9,746 | 93.2 | % | ||||||||||||||||
Over 80% through 90% | 625 | 317 | 942 | 8.1 | 340 | 215 | 555 | 5.3 | ||||||||||||||||||||||||
Over 90% through 100% | 98 | 36 | 134 | 1.1 | 38 | 21 | 59 | .6 | ||||||||||||||||||||||||
Over 100% | 67 | 6 | 73 | .6 | 39 | 4 | 43 | .4 | ||||||||||||||||||||||||
No LTV/CLTV available | 76 | 4 | 80 | .7 | 52 | 2 | 54 | .5 | ||||||||||||||||||||||||
Total (a) | $ | 10,662 | $ | 1,017 | $ | 11,679 | 100.0 | % | $ | 9,534 | $ | 923 | $ | 10,457 | 100.0 | % |
(a) | At March 31, sub-prime. |
U.S. Bancorp | 11 |
Junior Liens Behind | Junior Liens Behind | |||||||||||||||||||||||
(Dollars in Millions) | Company Owned or Serviced First Lien | Third Party First Lien | Total | Company Owned or Serviced First Lien | Third Party First Lien | Total | ||||||||||||||||||
Total | $ | 3,145 | $ | 5,225 | $ | 8,370 | $ | 2,644 | $ | 4,840 | $ | 7,484 | ||||||||||||
Percent 30—89 days past due | .31 | % | .34 | % | .33 | % | .43 | % | .33 | % | .36 | % | ||||||||||||
Percent 90 days or more past due | .07 | % | .06 | % | .07 | % | .10 | % | .09 | % | .09 | % | ||||||||||||
Weighted-average CLTV | 64 | % | 62 | % | 62 | % | 59 | % | 57 | % | 58 | % | ||||||||||||
Weighted-average credit score | 780 | 778 | 779 | 782 | 783 | 783 |
12 | U.S. Bancorp |
Table 5 | Delinquent Loan Ratios as a Percent of Ending Loan Balances |
90 days or more past due excluding | March 31, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | ||||||||||||||||
Commercial | ||||||||||||||||||||
Commercial | .06 | % | .06 | % | .07 | % | .05 | % | ||||||||||||
Lease financing | — | — | — | — | ||||||||||||||||
Total commercial | .06 | .05 | .06 | .04 | ||||||||||||||||
Commercial Real Estate | ||||||||||||||||||||
Commercial mortgages | — | — | — | — | ||||||||||||||||
Construction and development | .03 | .02 | .01 | .10 | ||||||||||||||||
Total commercial real estate | .01 | .01 | — | .03 | ||||||||||||||||
Residential Mortgages (a) | .19 | .18 | .18 | .24 | ||||||||||||||||
Credit Card | .95 | .88 | .74 | .73 | ||||||||||||||||
Other Retail | ||||||||||||||||||||
Retail leasing | .01 | .05 | .03 | .04 | ||||||||||||||||
Home equity and second mortgages | .36 | .36 | .42 | .35 | ||||||||||||||||
Other | .07 | .10 | .05 | .06 | ||||||||||||||||
Total other retail | .12 | .15 | .11 | .11 | ||||||||||||||||
Total loans | .16 | % | .16 | % | .14 | % | .15 | % | ||||||||||||
90 days or more past due including | March 31, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | ||||||||||||||||
Commercial | .39 | % | .42 | % | .21 | % | .20 | % | ||||||||||||
Commercial real estate | .94 | 1.15 | .55 | .76 | ||||||||||||||||
Residential mortgages (a) | .54 | .50 | .45 | .53 | ||||||||||||||||
Credit card | .95 | .88 | .74 | .73 | ||||||||||||||||
Other retail | .42 | .42 | .37 | .35 | ||||||||||||||||
Total loans | .54 | % | .57 | % | .38 | % | .42 | % |
(a) | Delinquent loan ratios exclude |
Amount | As a Percent of Ending Loan Balances | Amount | As a Percent of Ending Loan Balances | |||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | March 31, 2021 | December 31, 2020 | March 31, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||
Residential Mortgages (a) | ||||||||||||||||||||||||||||||||||||||||
30-89 days | $ | 204 | $ | 244 | .28 | % | .32 | % | $ | 105 | $ | 124 | .13 | % | .15 | % | ||||||||||||||||||||||||
90 days or more | 143 | 137 | .19 | .18 | 140 | 181 | .18 | .24 | ||||||||||||||||||||||||||||||||
Nonperforming | 253 | 245 | .34 | .32 | 214 | 226 | .27 | .30 | ||||||||||||||||||||||||||||||||
Total | $ | 600 | $ | 626 | .81 | % | .82 | % | $ | 459 | $ | 531 | .58 | % | .69 | % | ||||||||||||||||||||||||
Credit Card | ||||||||||||||||||||||||||||||||||||||||
30-89 days | $ | 188 | $ | 231 | .90 | % | 1.04 | % | $ | 194 | $ | 193 | .88 | % | .86 | % | ||||||||||||||||||||||||
90 days or more | 198 | 197 | .95 | .88 | 165 | 165 | .74 | .73 | ||||||||||||||||||||||||||||||||
Nonperforming | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 386 | $ | 428 | 1.85 | % | 1.92 | % | $ | 359 | $ | 358 | 1.62 | % | 1.59 | % | ||||||||||||||||||||||||
Other Retail | ||||||||||||||||||||||||||||||||||||||||
Retail Leasing | ||||||||||||||||||||||||||||||||||||||||
30-89 days | $ | 27 | $ | 35 | .34 | % | .43 | % | $ | 27 | $ | 29 | .39 | % | .40 | % | ||||||||||||||||||||||||
90 days or more | 1 | 4 | .01 | .05 | 2 | 3 | .03 | .04 | ||||||||||||||||||||||||||||||||
Nonperforming | 14 | 13 | .18 | .16 | 10 | 10 | .14 | .14 | ||||||||||||||||||||||||||||||||
Total | $ | 42 | $ | 52 | .53 | % | .64 | % | $ | 39 | $ | 42 | .56 | % | .58 | % | ||||||||||||||||||||||||
Home Equity and Second Mortgages | ||||||||||||||||||||||||||||||||||||||||
30-89 days | $ | 44 | $ | 68 | .37 | % | .54 | % | $ | 41 | $ | 55 | .40 | % | .53 | % | ||||||||||||||||||||||||
90 days or more | 42 | 45 | .36 | .36 | 44 | 37 | .42 | .35 | ||||||||||||||||||||||||||||||||
Nonperforming | 127 | 107 | 1.09 | .86 | 129 | 116 | 1.23 | 1.11 | ||||||||||||||||||||||||||||||||
Total | $ | 213 | $ | 220 | 1.82 | % | 1.76 | % | $ | 214 | $ | 208 | 2.05 | % | 1.99 | % | ||||||||||||||||||||||||
Other (b) | ||||||||||||||||||||||||||||||||||||||||
30-89 days | $ | 150 | $ | 215 | .40 | % | .60 | % | $ | 169 | $ | 191 | .38 | % | .43 | % | ||||||||||||||||||||||||
90 days or more | 27 | 37 | .07 | .10 | 22 | 26 | .05 | .06 | ||||||||||||||||||||||||||||||||
Nonperforming | 31 | 34 | .08 | .09 | 22 | 24 | .05 | .05 | ||||||||||||||||||||||||||||||||
Total | $ | 208 | $ | 286 | .55 | % | .79 | % | $ | 213 | $ | 241 | .48 | % | .54 | % |
(a) | Excludes 30-89 days past due and |
(b) | Includes revolving credit, installment, automobile and student loans. |
U.S. Bancorp | 13 |
As a Percent of Performing TDRs | As a Percent of Performing TDRs | |||||||||||||||||||||||||||||||||||||||
At March 31, 2021 (Dollars in Millions) | Performing TDRs | 30-89 Days Past Due | 90 Days or More Past Due | Nonperforming TDRs | Total TDRs | |||||||||||||||||||||||||||||||||||
At March 31, 2022 (Dollars in Millions) | Performing TDRs | 30-89 Days Past Due | 90 Days or More Past Due | Nonperforming TDRs | Total TDRs | |||||||||||||||||||||||||||||||||||
Commercial | $ | 183 | 5.1 | % | 2.6 | % | $ | 212 | (a) | $ | 395 | $ | 137 | 5.3 | % | 2.2 | % | $ | 76 | (a) | $ | 213 | ||||||||||||||||||
Commercial real estate | 139 | 1.8 | — | 156 | (b) | 295 | 86 | 2.0 | — | 145 | (b) | 231 | ||||||||||||||||||||||||||||
Residential mortgages | 1,449 | 6.0 | 4.2 | 140 | 1,589 | (d) | 1,521 | 3.3 | 3.5 | 116 | 1,637 | (d) | ||||||||||||||||||||||||||||
Credit card | 235 | 8.4 | 4.2 | — | 235 | 243 | 11.8 | 5.6 | — | 243 | ||||||||||||||||||||||||||||||
Other retail | 198 | 10.1 | 5.4 | 46 | (c) | 244 | (e) | 179 | 9.4 | 4.8 | 39 | (c) | 218 | (e) | ||||||||||||||||||||||||||
TDRs, excluding loans purchased from GNMA mortgage pools | 2,204 | 6.3 | 3.9 | 554 | 2,758 | 2,166 | 4.9 | 3.6 | 376 | 2,542 | ||||||||||||||||||||||||||||||
Loans purchased from GNMA mortgage pools (g) | 1,322 | — | — | — | 1,322 | (f) | 978 | — | — | — | 978 | (f) | ||||||||||||||||||||||||||||
Total | $ | 3,526 | 3.9 | % | 2.4 | % | $ | 554 | $ | 4,080 | $ | 3,144 | 3.4 | % | 2.5 | % | $ | 376 | $ | 3,520 |
(a) | Primarily represents loans less than six months from the modification date that have not met the performance period required to return to accrual status (generally six months) and small business credit cards with a modified rate equal to 0 percent. |
(b) | Primarily represents loans less than six months from the modification date that have not met the performance period required to return to accrual status (generally six months). |
(c) | Primarily represents loans with a modified rate equal to 0 percent. |
(d) | Includes |
(e) | Includes |
(f) | Includes |
(g) | Approximately 30-89 days past due and 90 days or more past due, respectively, but are not classified as delinquent as their repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. |
14 |
Percentage of Loan Accounts in Payment Relief Programs | Percentage of Loan Balances in Payment Relief Programs | Program Details | ||||||||
Commercial | .07 | % | .03 | % | Primarily 3 month payment deferral up to a maximum of 6 months; interest continues to accrue with various payment options; may include short-term covenant waivers | |||||
Commercial real estate | .30 | .62 | Primarily 3 month payment deferral up to a maximum of 6 months; interest continues to accrue with various payment options; may include short-term covenant waivers | |||||||
Residential mortgages (a) | 2.28 | 2.99 | Primarily 6 month payment forbearance, which may be extended up to 18 months; interest continues to accrue; cumulative payments suspended during forbearance period are either paid-off immediately or under a short-term repayment plan, or addressed through a permanent loan modification that either requires repayment at maturity or through restructured payments over time | |||||||
Credit cards | .10 | .22 | Primarily payment reduction up to 6 months; payment relief of up to 3 months; interest continues to accrue | |||||||
Other retail | .35 | .65 | Home equity loan programs are similar to residential mortgage programs; programs for other loan portfolios are primarily 2 month payment deferral up to a maximum of 4 months; interest continues to accrue | |||||||
Total loans (a) | .18 | % | .91 | % |
Amount | As a Percent of Ending Loan Balances | |||||||||||||||||||
(Dollars in Millions) | March 31, 2021 | December 31, 2020 | March 31, 2021 | December 31, 2020 | ||||||||||||||||
Residential | ||||||||||||||||||||
California | $ | 3 | $ | 2 | .01 | % | .01 | % | ||||||||||||
New York | 2 | 2 | .16 | .17 | ||||||||||||||||
Oregon | 2 | 2 | .07 | .07 | ||||||||||||||||
Illinois | 1 | 2 | .02 | .04 | ||||||||||||||||
Florida | 1 | 1 | .03 | .03 | ||||||||||||||||
All other states | 9 | 14 | .02 | .03 | ||||||||||||||||
Total residential | 18 | 23 | .02 | .03 | ||||||||||||||||
Commercial | ||||||||||||||||||||
Iowa | 1 | 1 | .05 | .04 | ||||||||||||||||
All other states | – | – | – | – | ||||||||||||||||
Total commercial | 1 | 1 | – | – | ||||||||||||||||
Total | $ | 19 | $ | 24 | .01 | % | .01 | % |
U.S. Bancorp | 15 |
Table 6 | Nonperforming Assets (a) |
(Dollars in Millions) | March 31, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | ||||||||||||
Commercial | ||||||||||||||||
Commercial | $ | 298 | $ | 321 | $139 | $139 | ||||||||||
Lease financing | 49 | 54 | 35 | 35 | ||||||||||||
Total commercial | 347 | 375 | 174 | 174 | ||||||||||||
Commercial Real Estate | ||||||||||||||||
Commercial mortgages | 266 | 411 | 178 | 213 | ||||||||||||
Construction and development | 90 | 39 | 38 | 71 | ||||||||||||
Total commercial real estate | 356 | 450 | 216 | 284 | ||||||||||||
Residential Mortgages (b) | 253 | 245 | 214 | 226 | ||||||||||||
Credit Card | – | – | — | — | ||||||||||||
Other Retail | ||||||||||||||||
Retail leasing | 14 | 13 | 10 | 10 | ||||||||||||
Home equity and second mortgages | 127 | 107 | 129 | 116 | ||||||||||||
Other | 31 | 34 | 22 | 24 | ||||||||||||
Total other retail | 172 | 154 | 161 | 150 | ||||||||||||
Total nonperforming loans | 1,128 | 1,224 | 765 | 834 | ||||||||||||
Other Real Estate (c) | 19 | 24 | 23 | 22 | ||||||||||||
Other Assets | 55 | 50 | 23 | 22 | ||||||||||||
Total nonperforming assets | $ | 1,202 | $ | 1,298 | $811 | $878 | ||||||||||
Accruing loans 90 days or more past due (b) | $ | 476 | $ | 477 | $450 | $472 | ||||||||||
Nonperforming loans to total loans | .38 | % | .41 | % | ||||||||||||
Period-end loans (2) | $318,934 | $312,028 | ||||||||||||||
Nonperforming loans to total loans (1)/(2) | .24 | % | .27 | % | ||||||||||||
Nonperforming assets to total loans plus other real estate (c) | .41 | % | .44 | % | .25 | % | .28 | % |
(Dollars in Millions) | Commercial and Commercial Real Estate | Residential Mortgages, Credit Card and Other Retail | Total | Commercial and Commercial Real Estate | Residential Mortgages, Credit Card and Other Retail | Total | ||||||||||||||||||
Balance December 31, 2020 | $ | 854 | $ | 444 | $ | 1,298 | ||||||||||||||||||
Balance December 31, 2021 | $ | 461 | $ | 417 | $ | 878 | ||||||||||||||||||
Additions to nonperforming assets | ||||||||||||||||||||||||
New nonaccrual loans and foreclosed properties | 178 | 79 | 257 | 92 | 58 | 150 | ||||||||||||||||||
Advances on loans | 3 | – | 3 | 4 | — | 4 | ||||||||||||||||||
Total additions | 181 | 79 | 260 | 96 | 58 | 154 | ||||||||||||||||||
Reductions in nonperforming assets | ||||||||||||||||||||||||
Paydowns, payoffs | (80 | ) | (21 | ) | (101 | ) | (134 | ) | (15 | ) | (149 | ) | ||||||||||||
Net sales | (148 | ) | (6 | ) | (154 | ) | — | (4 | ) | (4 | ) | |||||||||||||
Return to performing status | (24 | ) | (19 | ) | (43 | ) | (9 | ) | (35 | ) | (44 | ) | ||||||||||||
Charge-offs (d) | (52 | ) | (6 | ) | (58 | ) | (21 | ) | (3 | ) | (24 | ) | ||||||||||||
Total reductions | (304 | ) | (52 | ) | (356 | ) | (164 | ) | (57 | ) | (221 | ) | ||||||||||||
Net additions to (reductions in) nonperforming assets | (123 | ) | 27 | (96 | ) | (68 | ) | 1 | (67 | ) | ||||||||||||||
Balance March 31, 2021 | $ | 731 | $ | 471 | $ | 1,202 | ||||||||||||||||||
Balance March 31, 2022 | $ | 393 | $ | 418 | $ | 811 |
(a) | Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due. |
(b) | Excludes |
(c) | Foreclosed GNMA loans of |
(d) | Charge-offs exclude actions for certain card products and loan sales that were not classified as nonperforming at the time the charge-off occurred. |
16 | U.S. Bancorp |
Table 7 | Net Charge-offs as a Percent of Average Loans Outstanding |
Three Months Ended March 31 | Three Months Ended March 31 | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||||||||||||||
Loan | Net | Loan | Net | |||||||||||||||||||||||||||||||||
(Dollars in Millions) | Balance | Charge-offs | Percent | Balance | Charge-offs | Percent | ||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||
Commercial | .22 | % | .28 | % | $ | 107,819 | $ | 26 | .10 | % | $ | 96,757 | $ | 52 | .22 | % | ||||||||||||||||||||
Lease financing | .30 | .36 | 5,003 | 6 | .49 | 5,334 | 4 | .30 | ||||||||||||||||||||||||||||
Total commercial | .22 | .28 | 112,822 | 32 | .12 | 102,091 | 56 | .22 | ||||||||||||||||||||||||||||
Commercial Real Estate | ||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||
Commercial mortgages | (.17 | ) | (.01 | ) | 28,826 | — | — | 27,968 | (12 | ) | (.17 | ) | ||||||||||||||||||||||||
Construction and development | .19 | (.04 | ) | |||||||||||||||||||||||||||||||||
Construction | 10,258 | (5 | ) | (.20 | ) | 10,818 | 5 | .19 | ||||||||||||||||||||||||||||
Total commercial real estate | (.07 | ) | (.02 | ) | 39,084 | (5 | ) | (.05 | ) | 38,786 | (7 | ) | (.07 | ) | ||||||||||||||||||||||
Residential Mortgages | (.03 | ) | .01 | |||||||||||||||||||||||||||||||||
Credit Card | 2.76 | 3.95 | ||||||||||||||||||||||||||||||||||
Other Retail | ||||||||||||||||||||||||||||||||||||
Residential mortgages | 77,449 | (6 | ) | (.03 | ) | 75,201 | (5 | ) | (.03 | ) | ||||||||||||||||||||||||||
Credit card | 21,842 | 112 | 2.08 | 21,144 | 144 | 2.76 | ||||||||||||||||||||||||||||||
Other retail | ||||||||||||||||||||||||||||||||||||
Retail leasing | .05 | .90 | 7,110 | 1 | .06 | 7,975 | 1 | .05 | ||||||||||||||||||||||||||||
Home equity and second mortgages | (.07 | ) | .03 | 10,394 | (2 | ) | (.08 | ) | 12,062 | (2 | ) | (.07 | ) | |||||||||||||||||||||||
Other | .40 | .79 | 44,265 | 30 | .27 | 36,730 | 36 | .40 | ||||||||||||||||||||||||||||
Total other retail | .25 | .61 | 61,769 | 29 | .19 | 56,767 | 35 | .25 | ||||||||||||||||||||||||||||
Total loans | .31 | % | .53 | % | $ | 312,966 | $ | 162 | .21 | % | $ | 293,989 | $ | 223 | .31 | % |
U.S. Bancorp | 17 |
18 | U.S. Bancorp |
March 31, 2021 | December 31, 2020 | |||||||
United States unemployment rate for the three months ending (a) | ||||||||
March 31, 2021 | 6.3 | % | 6.9 | % | ||||
June 30, 2021 | 6.0 | 7.1 | ||||||
December 31, 2021 | 5.0 | 6.8 | ||||||
United States real gross domestic product for the three months ending (b) | ||||||||
March 31, 2021 | (1.3 | )% | (2.1 | )% | ||||
June 30, 2021 | .2 | (1.1 | ) | |||||
December 31, 2021 | 3.7 | 1.5 |
March 31, 2022 | December 31, 2021 | |||||||
United States unemployment rate for the three months ending (a) | ||||||||
March 31, 2022 | 3.9 | % | 3.9 | % | ||||
June 30, 2022 | 3.7 | 3.6 | ||||||
December 31, 2022 | 3.5 | 3.5 | ||||||
United States real gross domestic product for the three months ending (b) | ||||||||
March 31, 2022 | 4.1 | % | 5.2 | % | ||||
June 30, 2022 | 3.7 | 4.4 | ||||||
December 31, 2022 | 2.7 | 3.4 |
(a) | Reflects quarterly average of forecasted reported United States unemployment rate. |
(b) | Reflects |
Loans | Outstanding Commitments | |||||||
Retail | 3.6 | % | 5.0 | % | ||||
Energy (includes Oil and gas) | .9 | 2.2 | ||||||
Media and entertainment | 1.9 | 2.2 | ||||||
Lodging | 1.2 | .9 | ||||||
Airline | .3 | .5 |
U.S. Bancorp | 19 |
Table 8 | Summary of Allowance for Credit Losses |
Three Months Ended March 31 | ||||||||
(Dollars in Millions) | 2021 | 2020 | ||||||
Balance at beginning of period | $ | 8,010 | $ | 4,491 | ||||
Change in accounting principle (a) | — | 1,499 | ||||||
Charge-Offs | ||||||||
Commercial | ||||||||
Commercial | 80 | 81 | ||||||
Lease financing | 6 | 7 | ||||||
Total commercial | 86 | 88 | ||||||
Commercial real estate | ||||||||
Commercial mortgages | 5 | — | ||||||
Construction and development | 5 | — | ||||||
Total commercial real estate | 10 | — | ||||||
Residential mortgages | 5 | 8 | ||||||
Credit card | 190 | 274 | ||||||
Other retail | ||||||||
Retail leasing | 11 | 25 | ||||||
Home equity and second mortgages | 4 | 5 | ||||||
Other | 68 | 91 | ||||||
Total other retail | 83 | 121 | ||||||
Total charge-offs | 374 | 491 | ||||||
Recoveries | ||||||||
Commercial | ||||||||
Commercial | 28 | 12 | ||||||
Lease financing | 2 | 2 | ||||||
Total commercial | 30 | 14 | ||||||
Commercial real estate | ||||||||
Commercial mortgages | 17 | 1 | ||||||
Construction and development | — | 1 | ||||||
Total commercial real estate | 17 | 2 | ||||||
Residential mortgages | 10 | 7 | ||||||
Credit card | 46 | 40 | ||||||
Other retail | ||||||||
Retail leasing | 10 | 6 | ||||||
Home equity and second mortgages | 6 | 4 | ||||||
Other | 32 | 25 | ||||||
Total other retail | 48 | 35 | ||||||
Total recoveries | 151 | 98 | ||||||
Net Charge-Offs | ||||||||
Commercial | ||||||||
Commercial | 52 | 69 | ||||||
Lease financing | 4 | 5 | ||||||
Total commercial | 56 | 74 | ||||||
Commercial real estate | ||||||||
Commercial mortgages | (12 | ) | (1 | ) | ||||
Construction and development | 5 | (1 | ) | |||||
Total commercial real estate | (7 | ) | (2 | ) | ||||
Residential mortgages | (5 | ) | 1 | |||||
Credit card | 144 | 234 | ||||||
Other retail | ||||||||
Retail leasing | 1 | 19 | ||||||
Home equity and second mortgages | (2 | ) | 1 | |||||
Other | 36 | 66 | ||||||
Total other retail | 35 | 86 | ||||||
Total net charge-offs | 223 | 393 | ||||||
Provision for credit losses | (827 | ) | 993 | |||||
Balance at end of period | $ | 6,960 | $ | 6,590 | ||||
Components | ||||||||
Allowance for loan losses | $ | 6,343 | $ | 6,216 | ||||
Liability for unfunded credit commitments | 617 | 374 | ||||||
Total allowance for credit losses | $ | 6,960 | $ | 6,590 | ||||
Allowance for Credit Losses as a Percentage of | ||||||||
Period-end loans | 2.36 | % | 2.07 | % | ||||
Nonperforming loans | 617 | 809 | ||||||
Nonperforming and accruing loans 90 days or more past due | 434 | 473 | ||||||
Nonperforming assets | 579 | 697 | ||||||
Annualized net charge-offs | 770 | 417 |
Three Months Ended | ||||||||
March 31 | ||||||||
(Dollars in Millions) | 2022 | 2021 | ||||||
Balance at beginning of period | $ | 6,155 | $ | 8,010 | ||||
Charge-Offs | ||||||||
Commercial | ||||||||
Commercial | 47 | 80 | ||||||
Lease financing | 8 | 6 | ||||||
Total commercial | 55 | 86 | ||||||
Commercial real estate | ||||||||
Commercial mortgages | — | 5 | ||||||
Construction and development | 1 | 5 | ||||||
Total commercial real estate | 1 | 10 | ||||||
Residential mortgages | 5 | 5 | ||||||
Credit card | 158 | 190 | ||||||
Other retail | ||||||||
Retail leasing | 5 | 11 | ||||||
Home equity and second mortgages | 3 | 4 | ||||||
Other | 53 | 68 | ||||||
Total other retail | 61 | 83 | ||||||
Total charge-offs | 280 | 374 | ||||||
Recoveries | ||||||||
Commercial | ||||||||
Commercial | 21 | 28 | ||||||
Lease financing | 2 | 2 | ||||||
Total commercial | 23 | 30 | ||||||
Commercial real estate | ||||||||
Commercial mortgages | — | 17 | ||||||
Construction and development | 6 | — | ||||||
Total commercial real estate | 6 | 17 | ||||||
Residential mortgages | 11 | 10 | ||||||
Credit card | 46 | 46 | ||||||
Other retail | ||||||||
Retail leasing | 4 | 10 | ||||||
Home equity and second mortgages | 5 | 6 | ||||||
Other | 23 | 32 | ||||||
Total other retail | 32 | 48 | ||||||
Total recoveries | 118 | 151 | ||||||
Net Charge-Offs | ||||||||
Commercial | ||||||||
Commercial | 26 | 52 | ||||||
Lease financing | 6 | 4 | ||||||
Total commercial | 32 | 56 | ||||||
Commercial real estate | ||||||||
Commercial mortgages | — | (12 | ) | |||||
Construction and development | (5 | ) | 5 | |||||
Total commercial real estate | (5 | ) | (7 | ) | ||||
Residential mortgages | (6 | ) | (5 | ) | ||||
Credit card | 112 | 144 | ||||||
Other retail | ||||||||
Retail leasing | 1 | 1 | ||||||
Home equity and second mortgages | (2 | ) | (2 | ) | ||||
Other | 30 | 36 | ||||||
Total other retail | 29 | 35 | ||||||
Total net charge-offs | 162 | 223 | ||||||
Provision for credit losses | 112 | (827 | ) | |||||
Balance at end of period | $ | 6,105 | $ | 6,960 | ||||
Components | ||||||||
Allowance for loan losses | $ | 5,664 | $ | 6,343 | ||||
Liability for unfunded credit commitments | 441 | 617 | ||||||
Total allowance for credit losses (1) | $ | 6,105 | $ | 6,960 | ||||
Period-end loans (2) | $ | 318,934 | $ | 294,427 | ||||
Nonperforming loans (3) | 765 | 1,128 | ||||||
Allowance for Credit Losses as a Percentage of | ||||||||
Period-end loans (1)/(2) | 1.91 | % | 2.36 | % | ||||
Nonperforming loans (1)/(3) | 798 | 617 | ||||||
Nonperforming and accruing loans 90 days or more past due | 502 | 434 | ||||||
Nonperforming assets | 753 | 579 | ||||||
Annualized net charge-offs | 929 | 770 |
20 | U.S. Bancorp |
U.S. Bancorp | 21 |
Table 9 | Sensitivity of Net Interest Income |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
Down 50 bps Immediate | Up 50 bps Immediate | Down 200 bps Gradual | Up 200 bps Gradual | Down 50 bps Immediate | Up 50 bps Immediate | Down 200 bps Gradual | Up 200 bps Gradual | |||||||||||||||||||||||||||||
Net interest income | (3.02 | )% | 2.57 | % | * | 3.23 | % | (4.48 | )% | 4.58 | % | * | 6.57 | % |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||
Down 50 bps Immediate | Up 50 bps Immediate | Down 200 bps Gradual | Up 200 bps Gradual | Down 50 bps Immediate | Up 50 bps Immediate | Down 200 bps Gradual | Up 200 bps Gradual | |||||||||||||||||||||||||||||
Net interest income | (2.47 | )% | 2.15 | % | * | 3.31 | % | (3.77 | )% | 3.09 | % | * | 5.39 | % |
* | Given the level of interest rates, downward rate scenario is not computed. |
22 | U.S. Bancorp |
U.S. Bancorp | 23 |
Three Months Ended March 31 (Dollars in Millions) | 2021 | 2020 | 2022 | 2021 | ||||||||||||
Average | $ | 3 | $ | 2 | $ | 2 | $ | 3 | ||||||||
High | 4 | 3 | 2 | 4 | ||||||||||||
Low | 1 | 1 | 1 | 1 | ||||||||||||
Period-end | 2 | 3 | 2 | 2 |
Three Months Ended March 31 (Dollars in Millions) | 2021 | 2020 | 2022 | 2021 | ||||||||||||
Average | $ | 7 | $ | 6 | $ | 7 | $ | 7 | ||||||||
High | 9 | 7 | 8 | 9 | ||||||||||||
Low | 5 | 4 | 6 | 5 | ||||||||||||
Period-end | 9 | 7 | 7 | 9 |
Three Months Ended March 31 (Dollars in Millions) | 2021 | 2020 | 2022 | 2021 | ||||||||||||
Residential Mortgage Loans Held For Sale and Related Hedges | ||||||||||||||||
Average | $ | 12 | $ | 5 | $ | 2 | $ | 12 | ||||||||
High | 19 | 12 | 5 | 19 | ||||||||||||
Low | 7 | 2 | 1 | 7 | ||||||||||||
Mortgage Servicing Rights and Related Hedges | ||||||||||||||||
Average | $ | 5 | $ | 13 | $ | 6 | $ | 5 | ||||||||
High | 11 | 34 | 13 | 11 | ||||||||||||
Low | 2 | 6 | 3 | 2 |
24 | U.S. Bancorp |
U.S. Bancorp | 25 |
Table 10 | Regulatory Capital Ratios |
(Dollars in Millions) | March 31, 2022 | December 31, 2021 | ||||||||
Basel III standardized approach: | ||||||||||
Common equity tier 1 capital | $ | 41,950 | $ | 41,701 | ||||||
Tier 1 capital | 49,198 | 48,516 | ||||||||
Total risk-based capital | 57,403 | 56,250 | ||||||||
Risk-weighted assets | 427,174 | 418,571 | ||||||||
Common equity tier 1 capital as a percent of risk-weighted assets | 9.8 | % | 10.0 | % | ||||||
Tier 1 capital as a percent of risk-weighted assets | 11.5 | 11.6 | ||||||||
Total risk-based capital as a percent of risk-weighted assets | 13.4 | 13.4 | ||||||||
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) | 8.6 | 8.6 | ||||||||
Tier 1 capital as a percent of total on- andoff-balance sheet leverage exposure (total leverage exposure ratio) | 7.0 | 6.9 |
(Dollars in Millions) | March 31, 2021 | December 31, 2020 | ||||||||
Basel III standardized approach: | ||||||||||
Common equity tier 1 capital | $ | 39,103 | $ | 38,045 | ||||||
Tier 1 capital | 45,517 | 44,474 | ||||||||
Total risk-based capital | 53,625 | 52,602 | ||||||||
Risk-weighted assets | 396,351 | 393,648 | ||||||||
Common equity tier 1 capital as a percent of risk-weighted assets | 9.9 | % | 9.7 | % | ||||||
Tier 1 capital as a percent of risk-weighted assets | 11.5 | 11.3 | ||||||||
Total risk-based capital as a percent of risk-weighted assets | 13.5 | 13.4 | ||||||||
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) | 8.4 | 8.3 | ||||||||
Tier 1 capital as a percent of total on- andoff-balance sheet leverage exposure (total leverage exposure ratio) | 7.4 | 7.3 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Program (a) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (In Millions) | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (In Millions) | ||||||||||||||||||||||||
January | 5,559,648 | (b) | $ | 44.91 | 5,194,648 | $ | 2,767 | 208,269 | (a) | $ | 56.22 | 8,269 | $ | 1,444 | ||||||||||||||||||
February | 5,343,085 | 49.37 | 5,343,085 | 2,503 | 620,109 | 58.98 | 620,109 | 1,407 | ||||||||||||||||||||||||
March | 2,838,065 | 54.13 | 2,838,065 | 2,350 | 412,339 | (b) | 55.54 | 312,339 | 1,390 | |||||||||||||||||||||||
Total | 13,740,798 | (b) | $ | 48.55 | 13,375,798 | $ | 2,350 | 1,240,717 | (c) | $ | 57.37 | 940,717 | $ | 1,390 |
(a) |
Includes |
(b) | Includes 100,000 shares of common stock purchased, at an average price per share of $56.46, in open-market transactions by U.S. Bank National Association in its capacity as trustee of the U.S. Bank 401(k) Savings Plan. |
(c) | Includes 300,000 shares of common stock purchased, at an average price per share of $56.31, in open-market transactions by U.S. Bank National Association in its capacity as trustee of the U.S. Bank 401(k) Savings Plan. |
26 | U.S. Bancorp |
U.S. Bancorp | 27 |
taxable-equivalent basis, increased $12 million (0.8 percent) in the first quarter of 2022, compared with the first quarter of 2021, reflecting strong growth in interest-bearing deposit balances and favorable funding mix, partially offset by lower loan fees related to the SBA Paycheck Protection Program. |
Corporate and Commercial Banking | Consumer and Business Banking | |||||||||||||||||||||||||||||
Three Month Ended March 31 (Dollars in Millions) | 2021 | 2020 | Percent Change | 2021 | 2020 | Percent Change | ||||||||||||||||||||||||
Condensed Income Statement | ||||||||||||||||||||||||||||||
Net interest income (taxable-equivalent basis) | $ | 666 | $ | 784 | (15.1 | )% | $ | 1,625 | $ | 1,531 | 6.1 | % | ||||||||||||||||||
Noninterest income | 259 | 271 | (4.4 | ) | 617 | 757 | (18.5 | ) | ||||||||||||||||||||||
Total net revenue | 925 | 1,055 | (12.3 | ) | 2,242 | 2,288 | (2.0 | ) | ||||||||||||||||||||||
Noninterest expense | 406 | 443 | (8.4 | ) | 1,388 | 1,336 | 3.9 | |||||||||||||||||||||||
Other intangibles | – | – | – | 3 | 4 | (25.0 | ) | |||||||||||||||||||||||
Total noninterest expense | 406 | 443 | (8.4 | ) | 1,391 | 1,340 | 3.8 | |||||||||||||||||||||||
Income (loss) before provision and income taxes | 519 | 612 | (15.2 | ) | 851 | 948 | (10.2 | ) | ||||||||||||||||||||||
Provision for credit losses | (40 | ) | 424 | * | (44 | ) | 123 | * | ||||||||||||||||||||||
Income (loss) before income taxes | 559 | 188 | * | 895 | 825 | 8.5 | ||||||||||||||||||||||||
Income taxes and taxable-equivalent adjustment | 140 | 47 | * | 224 | 206 | 8.7 | ||||||||||||||||||||||||
Net income (loss) | 419 | 141 | * | 671 | 619 | 8.4 | ||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | – | – | – | – | – | – | ||||||||||||||||||||||||
Net income (loss) attributable to U.S. Bancorp | $ | 419 | $ | 141 | * | $ | 671 | $ | 619 | 8.4 | ||||||||||||||||||||
Average Balance Sheet | ||||||||||||||||||||||||||||||
Commercial | $ | 74,055 | $ | 82,167 | (9.9 | )% | $ | 13,378 | $ | 8,860 | 51.0 | % | ||||||||||||||||||
Commercial real estate | 20,808 | 21,190 | (1.8 | ) | 15,151 | 16,305 | (7.1 | ) | ||||||||||||||||||||||
Residential mortgages | 2 | 3 | (33.3 | ) | 70,085 | 66,634 | 5.2 | |||||||||||||||||||||||
Credit card | – | – | – | – | – | – | ||||||||||||||||||||||||
Other retail | 7 | 8 | (12.5 | ) | 54,563 | 54,919 | (.6 | ) | ||||||||||||||||||||||
Total loans | 94,872 | 103,368 | (8.2 | ) | 153,177 | 146,718 | 4.4 | |||||||||||||||||||||||
Goodwill | 1,647 | 1,647 | – | 3,475 | 3,574 | (2.8 | ) | |||||||||||||||||||||||
Other intangible assets | 5 | 7 | (28.6 | ) | 2,491 | 2,411 | 3.3 | |||||||||||||||||||||||
Assets | 107,022 | 115,308 | (7.2 | ) | 175,541 | 161,886 | 8.4 | |||||||||||||||||||||||
Noninterest-bearing deposits | 51,020 | 29,370 | 73.7 | 39,186 | 27,866 | 40.6 | ||||||||||||||||||||||||
Interest checking | 13,024 | 14,064 | (7.4 | ) | 69,785 | 53,017 | 31.6 | |||||||||||||||||||||||
Savings products | 46,112 | 48,207 | (4.3 | ) | 80,220 | 64,189 | 25.0 | |||||||||||||||||||||||
Time deposits | 8,614 | 18,386 | (53.1 | ) | 16,871 | 16,512 | 2.2 | |||||||||||||||||||||||
Total deposits | 118,770 | 110,027 | 7.9 | 206,062 | 161,584 | 27.5 | ||||||||||||||||||||||||
Total U.S. Bancorp shareholders’ equity | 13,074 | 14,182 | (7.8 | ) | 13,453 | 13,422 | .2 |
28 | U.S. Bancorp |
Table 11 | Line of Business Financial Performance |
Corporate and Commercial Banking | Consumer and Business Banking | Wealth Management and Investment Services | ||||||||||||||||||||||||||||||||||||||||||||||
Three Month Ended March 31 (Dollars in Millions) | 2022 | 2021 | Percent Change | 2022 | 2021 | Percent Change | 2022 | 2021 | Percent Change | |||||||||||||||||||||||||||||||||||||||
Condensed Income Statement | ||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (taxable-equivalent basis) | $ | 735 | $ | 719 | 2.2 | % | $ | 1,517 | $ | 1,505 | .8 | % | $ | 274 | $ | 268 | 2.2 | % | ||||||||||||||||||||||||||||||
Noninterest income | 245 | 268 | (8.6 | ) | 461 | 569 | (19.0 | ) | 596 | 531 | 12.2 | |||||||||||||||||||||||||||||||||||||
Total net revenue | 980 | 987 | (.7 | ) | 1,978 | 2,074 | (4.6 | ) | 870 | 799 | 8.9 | |||||||||||||||||||||||||||||||||||||
Noninterest expense | 419 | 409 | 2.4 | 1,405 | 1,344 | 4.5 | 587 | 494 | 18.8 | |||||||||||||||||||||||||||||||||||||||
Income (loss) before provision and income taxes | 561 | 578 | (2.9 | ) | 573 | 730 | (21.5 | ) | 283 | 305 | (7.2 | ) | ||||||||||||||||||||||||||||||||||||
Provision for credit losses | 3 | (48 | ) | * | 49 | (37 | ) | * | 8 | 5 | 60.0 | |||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 558 | 626 | (10.9 | ) | 524 | 767 | (31.7 | ) | 275 | 300 | (8.3 | ) | ||||||||||||||||||||||||||||||||||||
Income taxes and taxable-equivalent adjustment | 140 | 157 | (10.8 | ) | 131 | 192 | (31.8 | ) | 69 | 75 | (8.0 | ) | ||||||||||||||||||||||||||||||||||||
Net income (loss) | 418 | 469 | (10.9 | ) | 393 | 575 | (31.7 | ) | 206 | 225 | (8.4 | ) | ||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to U.S. Bancorp | $ | 418 | $ | 469 | (10.9 | ) | $ | 393 | $ | 575 | (31.7 | ) | $ | 206 | $ | 225 | (8.4 | ) | ||||||||||||||||||||||||||||||
Average Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans | $ | 115,634 | $ | 101,927 | 13.4 | $ | 141,106 | $ | 141,719 | (.4 | ) | $ | 20,666 | $ | 16,846 | 22.7 | ||||||||||||||||||||||||||||||||
Goodwill | 1,912 | 1,647 | 16.1 | 3,261 | 3,475 | (6.2 | ) | 1,761 | 1,619 | 8.8 | ||||||||||||||||||||||||||||||||||||||
Other intangible assets | 4 | 5 | (20.0 | ) | 3,176 | 2,493 | 27.4 | 265 | 42 | * | ||||||||||||||||||||||||||||||||||||||
Assets | 127,651 | 114,069 | 11.9 | 157,696 | 164,131 | (3.9 | ) | 24,446 | 20,120 | 21.5 | ||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 62,285 | 56,281 | 10.7 | 32,094 | 32,861 | (2.3 | ) | 27,350 | 21,338 | 28.2 | ||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 86,618 | 71,377 | 21.4 | 166,765 | 151,406 | 10.1 | 69,909 | 83,474 | (16.3 | ) | ||||||||||||||||||||||||||||||||||||||
Total deposits | 148,903 | 127,658 | 16.6 | 198,859 | 184,267 | 7.9 | 97,259 | 104,812 | (7.2 | ) | ||||||||||||||||||||||||||||||||||||||
Total U.S. Bancorp shareholders’ equity | 13,710 | 14,354 | (4.5 | ) | 12,275 | 12,496 | (1.8 | ) | 3,595 | 3,034 | 18.5 |
Payment Services | Treasury and Corporate Support | Consolidated Company | ||||||||||||||||||||||||||||||||||||||||||||||
Three Month Ended March 31 (Dollars in Millions) | 2022 | 2021 | Percent Change | 2022 | 2021 | Percent Change | 2022 | 2021 | Percent Change | |||||||||||||||||||||||||||||||||||||||
Condensed Income Statement | ||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (taxable-equivalent basis) | $ | 622 | $ | 629 | (1.1 | )% | $ | 52 | $ | (32 | ) | * | % | $ | 3,200 | $ | 3,089 | 3.6 | % | |||||||||||||||||||||||||||||
Noninterest income | 858 | 785 | 9.3 | 236 | 228 | 3.5 | 2,396 | 2,381 | .6 | |||||||||||||||||||||||||||||||||||||||
Total net revenue | 1,480 | 1,414 | 4.7 | 288 | 196 | 46.9 | 5,596 | 5,470 | 2.3 | |||||||||||||||||||||||||||||||||||||||
Noninterest expense | 854 | 805 | 6.1 | 237 | 327 | (27.5 | ) | 3,502 | 3,379 | 3.6 | ||||||||||||||||||||||||||||||||||||||
Income (loss) before provision and income taxes | 626 | 609 | 2.8 | 51 | (131 | ) | * | 2,094 | 2,091 | .1 | ||||||||||||||||||||||||||||||||||||||
Provision for credit losses | 130 | (41 | ) | * | (78 | ) | (706 | ) | 89.0 | 112 | (827 | ) | * | |||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 496 | 650 | (23.7 | ) | 129 | 575 | (77.6 | ) | 1,982 | 2,918 | (32.1 | ) | ||||||||||||||||||||||||||||||||||||
Income taxes and taxable-equivalent adjustment | 124 | 163 | (23.9 | ) | (40 | ) | 46 | * | 424 | 633 | (33.0 | ) | ||||||||||||||||||||||||||||||||||||
Net income (loss) | 372 | 487 | (23.6 | ) | 169 | 529 | (68.1 | ) | 1,558 | 2,285 | (31.8 | ) | ||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | — | — | — | (1 | ) | (5 | ) | 80.0 | (1 | ) | (5 | ) | 80.0 | |||||||||||||||||||||||||||||||||||
Net income (loss) attributable to U.S. Bancorp | $ | 372 | $ | 487 | (23.6 | ) | $ | 168 | $ | 524 | (67.9 | ) | $ | 1,557 | $ | 2,280 | (31.7 | ) | ||||||||||||||||||||||||||||||
Average Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans | $ | 31,740 | $ | 29,630 | 7.1 | $ | 3,820 | $ | 3,867 | (1.2 | ) | $ | 312,966 | $ | 293,989 | 6.5 | ||||||||||||||||||||||||||||||||
Goodwill | 3,325 | 3,173 | 4.8 | — | — | — | 10,259 | 9,914 | 3.5 | |||||||||||||||||||||||||||||||||||||||
Other intangible assets | 464 | 542 | (14.4 | ) | — | — | — | 3,909 | 3,082 | 26.8 | ||||||||||||||||||||||||||||||||||||||
Assets | 38,540 | 35,091 | 9.8 | 229,069 | 215,323 | 6.4 | 577,402 | 548,734 | 5.2 | |||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 3,673 | 5,264 | (30.2 | ) | 2,561 | 2,608 | (1.8 | ) | 127,963 | 118,352 | 8.1 | |||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 160 | 132 | 21.2 | 2,761 | 1,623 | 70.1 | 326,213 | 308,012 | 5.9 | |||||||||||||||||||||||||||||||||||||||
Total deposits | 3,833 | 5,396 | (29.0 | ) | 5,322 | 4,231 | 25.8 | 454,176 | 426,364 | 6.5 | ||||||||||||||||||||||||||||||||||||||
Total U.S. Bancorp shareholders’ equity | 8,019 | 7,658 | 4.7 | 15,867 | 15,187 | 4.5 | 53,466 | 52,729 | 1.4 |
* | Not meaningful |
Wealth Management and Investment Services | Payment Services | Treasury and Corporate Support | Consolidated Company | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Percent Change | 2021 | 2020 | Percent Change | 2021 | 2020 | Percent Change | 2021 | 2020 | Percent Change | |||||||||||||||||||||||||||||||||||||||
$ | 204 | $ | 284 | (28.2 | )% | $ | 628 | $ | 661 | (5.0 | )% | $ | (34) | $ | (13 | ) | * | % | $ | 3,089 | $ | 3,247 | (4.9 | )% | ||||||||||||||||||||||||||
492 | 466 | 5.6 | 785 | 794 | (1.1 | ) | 228 | 237 | (3.8 | ) | 2,381 | 2,525 | (5.7 | ) | ||||||||||||||||||||||||||||||||||||
696 | 750 | (7.2 | ) | 1,413 | 1,455 | (2.9 | ) | 194 | 224 | (13.4 | ) | 5,470 | 5,772 | (5.2 | ) | |||||||||||||||||||||||||||||||||||
459 | 449 | 2.2 | 782 | 754 | 3.7 | 306 | 292 | 4.8 | 3,341 | 3,274 | 2.0 | |||||||||||||||||||||||||||||||||||||||
2 | 3 | (33.3 | ) | 33 | 35 | (5.7 | ) | – | – | – | 38 | 42 | (9.5 | ) | ||||||||||||||||||||||||||||||||||||
461 | 452 | 2.0 | 815 | 789 | 3.3 | 306 | 292 | 4.8 | 3,379 | 3,316 | 1.9 | |||||||||||||||||||||||||||||||||||||||
235 | 298 | (21.1 | ) | 598 | 666 | (10.2 | ) | (112 | ) | (68 | ) | (64.7 | ) | 2,091 | 2,456 | (14.9 | ) | |||||||||||||||||||||||||||||||||
7 | 23 | (69.6 | ) | (41 | ) | 262 | * | (709 | ) | 161 | * | (827 | ) | 993 | * | |||||||||||||||||||||||||||||||||||
228 | 275 | (17.1 | ) | 639 | 404 | 58.2 | 597 | (229 | ) | * | 2,918 | 1,463 | 99.5 | |||||||||||||||||||||||||||||||||||||
57 | 69 | (17.4 | ) | 160 | 101 | 58.4 | 52 | (139 | ) | * | 633 | 284 | * | |||||||||||||||||||||||||||||||||||||
171 | 206 | (17.0 | ) | 479 | 303 | 58.1 | 545 | (90 | ) | * | 2,285 | 1,179 | 93.8 | |||||||||||||||||||||||||||||||||||||
– | – | – | – | – | – | (5 | ) | (8 | ) | 37.5 | (5 | ) | (8 | ) | 37.5 | |||||||||||||||||||||||||||||||||||
$ | 171 | $ | 206 | (17.0 | ) | $ | 479 | $ | 303 | 58.1 | $ | 540 | $ | (98 | ) | * | $ | 2,280 | $ | 1,171 | 94.7 | |||||||||||||||||||||||||||||
$ | 4,838 | $ | 4,189 | 15.5 | % | $ | 8,266 | $ | 9,543 | (13.4 | )% | $ | 1,554 | $ | 1,228 | 26.5 | % | $ | 102,091 | $ | 105,987 | (3.7 | )% | |||||||||||||||||||||||||||
514 | 536 | (4.1 | ) | – | – | – | 2,313 | 2,047 | 13.0 | 38,786 | 40,078 | (3.2 | ) | |||||||||||||||||||||||||||||||||||||
5,114 | 4,255 | 20.2 | – | – | – | – | – | – | 75,201 | 70,892 | 6.1 | |||||||||||||||||||||||||||||||||||||||
– | – | – | 21,144 | 23,836 | (11.3 | ) | – | – | – | 21,144 | 23,836 | (11.3 | ) | |||||||||||||||||||||||||||||||||||||
1,977 | 1,628 | 21.4 | 220 | 309 | (28.8 | ) | – | – | – | 56,767 | 56,864 | (.2 | ) | |||||||||||||||||||||||||||||||||||||
12,443 | 10,608 | 17.3 | 29,630 | 33,688 | (12.0 | ) | 3,867 | 3,275 | 18.1 | 293,989 | 297,657 | (1.2 | ) | |||||||||||||||||||||||||||||||||||||
1,619 | 1,617 | .1 | 3,173 | 2,856 | 11.1 | – | – | – | 9,914 | 9,694 | 2.3 | |||||||||||||||||||||||||||||||||||||||
42 | 44 | (4.5 | ) | 544 | 557 | (2.3 | ) | – | – | – | 3,082 | 3,019 | 2.1 | |||||||||||||||||||||||||||||||||||||
15,662 | 13,950 | 12.3 | 35,095 | 38,285 | (8.3 | ) | 215,414 | 165,378 | 30.3 | 548,734 | 494,807 | 10.9 | ||||||||||||||||||||||||||||||||||||||
20,277 | 13,232 | 53.2 | 5,264 | 1,471 | * | 2,605 | 2,203 | 18.2 | 118,352 | 74,142 | 59.6 | |||||||||||||||||||||||||||||||||||||||
13,829 | 10,027 | 37.9 | – | – | – | 747 | 251 | * | 97,385 | 77,359 | 25.9 | |||||||||||||||||||||||||||||||||||||||
56,398 | 56,646 | (.4 | ) | 132 | 112 | 17.9 | 811 | 840 | (3.5 | ) | 183,673 | 169,994 | 8.0 | |||||||||||||||||||||||||||||||||||||
1,402 | 2,169 | (35.4 | ) | – | 2 | * | 67 | 4,240 | (98.4 | ) | 26,954 | 41,309 | (34.8 | ) | ||||||||||||||||||||||||||||||||||||
91,906 | 82,074 | 12.0 | 5,396 | 1,585 | * | 4,230 | 7,534 | (43.9 | ) | 426,364 | 362,804 | 17.5 | ||||||||||||||||||||||||||||||||||||||
2,634 | 2,571 | 2.5 | 7,480 | 7,619 | (1.8 | ) | 16,088 | 13,352 | 20.5 | 52,729 | 51,146 | 3.1 |
U.S. Bancorp | 29 |
30 | U.S. Bancorp |
(Dollars in Millions) | March 31, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | ||||||||||||
Total equity | $ | 52,308 | $ | 53,725 | $ | 51,668 | $ | 55,387 | ||||||||
Preferred stock | (5,968 | ) | (5,983 | ) | (6,808 | ) | (6,371 | ) | ||||||||
Noncontrolling interests | (630 | ) | (630 | ) | (468 | ) | (469 | ) | ||||||||
Goodwill (net of deferred tax liability) (1) | (8,992 | ) | (9,014 | ) | (9,304 | ) | (9,323 | ) | ||||||||
Intangible assets, other than mortgage servicing rights | (675 | ) | (654 | ) | (762 | ) | (785 | ) | ||||||||
Tangible common equity (a) | 36,043 | 37,444 | 34,326 | 38,439 | ||||||||||||
Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements related to the CECL methodology implementation | 39,103 | 38,045 | 41,950 | 41,701 | ||||||||||||
Adjustments (2) | (1,732 | ) | (1,733 | ) | (1,298 | ) | (1,733 | ) | ||||||||
Common equity tier 1 capital, reflecting the full implementation of the CECL methodology (b) | 37,371 | 36,312 | 40,652 | 39,968 | ||||||||||||
Total assets | 553,375 | 553,905 | 586,517 | 573,284 | ||||||||||||
Goodwill (net of deferred tax liability) (1) | (8,992 | ) | (9,014 | ) | (9,304 | ) | (9,323 | ) | ||||||||
Intangible assets, other than mortgage servicing rights | (675 | ) | (654 | ) | (762 | ) | (785 | ) | ||||||||
Tangible assets (c) | 543,708 | 544,237 | 576,451 | 563,176 | ||||||||||||
Risk-weighted assets, determined in accordance with prescribed regulatory capital requirements effective for the Company (d) | 396,351 | 393,648 | 427,174 | 418,571 | ||||||||||||
Adjustments (3) | (1,440 | ) | (1,471 | ) | (351 | ) | (357 | ) | ||||||||
Risk-weighted assets, reflecting the full implementation of the CECL methodology (e) | 394,911 | 392,177 | 426,823 | 418,214 | ||||||||||||
Ratios | ||||||||||||||||
Tangible common equity to tangible assets (a)/(c) | 6.6 | % | 6.9 | % | 6.0 | % | 6.8 | % | ||||||||
Tangible common equity to risk-weighted assets (a)/(d) | 9.1 | 9.5 | 8.0 | 9.2 | ||||||||||||
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the CECL methodology (b)/(e) | 9.5 | 9.3 | 9.5 | 9.6 |
Three Months Ended March 31 | Three Months Ended March 31 | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Net interest income | $ | 3,063 | $ | 3,223 | $ | 3,173 | $ | 3,063 | ||||||||
Taxable-equivalent adjustment (4) | 26 | 24 | 27 | 26 | ||||||||||||
Net interest income, on a taxable-equivalent basis | 3,089 | 3,247 | 3,200 | 3,089 | ||||||||||||
Net interest income, on a taxable-equivalent basis (as calculated above) | 3,089 | 3,247 | 3,200 | 3,089 | ||||||||||||
Noninterest income | 2,381 | 2,525 | 2,396 | 2,381 | ||||||||||||
Less: Securities gains (losses), net | 25 | 50 | 18 | 25 | ||||||||||||
Total net revenue, excluding net securities gains (losses) (f) | 5,445 | 5,722 | 5,578 | 5,445 | ||||||||||||
Noninterest expense (g) | 3,379 | 3,316 | 3,502 | 3,379 | ||||||||||||
Efficiency ratio (g)/(f) | 62.1 | % | 58.0 | % | 62.8 | % | 62.1 | % |
(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 CECL 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 CECL 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. |
U.S. Bancorp | 31 |
32 | U.S. Bancorp |
(Dollars in Millions) | March 31, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | ||||||||
(Unaudited) | (Unaudited) | |||||||||||
Assets | ||||||||||||
Cash and due from banks | $ 43,501 | $ 62,580 | $ | 44,303 | $ | 28,905 | ||||||
Available-for-sale | 156,003 | 136,840 | ||||||||||
Loans held for sale (including $8,869 and $8,524 of mortgage loans carried at fair value, respectively) | 8,991 | 8,761 | ||||||||||
Investment securities | ||||||||||||
Held-to-maturity | 43,654 | 41,858 | ||||||||||
Available-for-sale | 123,593 | 132,963 | ||||||||||
Loans held for sale (including $2,203 and $6,623 of mortgage loans carried at fair value, respectively) | 3,321 | 7,775 | ||||||||||
Loans | ||||||||||||
Commercial | 104,158 | 102,871 | 117,470 | 112,023 | ||||||||
Commercial real estate | 38,432 | 39,311 | 39,191 | 39,053 | ||||||||
Residential mortgages | 73,624 | 76,155 | 78,487 | 76,493 | ||||||||
Credit card | 20,872 | 22,346 | 22,163 | 22,500 | ||||||||
Other retail | 57,341 | 57,024 | 61,623 | 61,959 | ||||||||
Total loans | 294,427 | 297,707 | 318,934 | 312,028 | ||||||||
Less allowance for loan losses | (6,343) | (7,314) | (5,664 | ) | (5,724 | ) | ||||||
Net loans | 288,084 | 290,393 | 313,270 | 306,304 | ||||||||
Premises and equipment | 3,388 | 3,468 | 3,207 | 3,305 | ||||||||
Goodwill | 9,905 | 9,918 | 10,250 | 10,262 | ||||||||
Other intangible assets | 3,462 | 2,864 | 4,194 | 3,738 | ||||||||
Other assets (including $1,313 and $1,255 of trading securities at fair value pledged as collateral, respectively) (a) | 40,041 | 39,081 | ||||||||||
Other assets (including $1,111 and $1,193 of trading securities at fair value pledged as collateral, respectively) (a) | 40,725 | 38,174 | ||||||||||
Total assets | $553,375 | $553,905 | $ | 586,517 | $ | 573,284 | ||||||
Liabilities and Shareholders’ Equity | ||||||||||||
Deposits | ||||||||||||
Noninterest-bearing | $126,754 | $118,089 | $ | 129,793 | $ | 134,901 | ||||||
Interest-bearing (b) | 307,007 | 311,681 | ||||||||||
Interest-bearing | 331,753 | 321,182 | ||||||||||
Total deposits | 433,761 | 429,770 | 461,546 | 456,083 | ||||||||
Short-term borrowings | 12,098 | 11,766 | 21,042 | 11,796 | ||||||||
Long-term debt | 37,419 | 41,297 | 32,931 | 32,125 | ||||||||
Other liabilities | 17,789 | 17,347 | 19,330 | 17,893 | ||||||||
Total liabilities | 501,067 | 500,180 | 534,849 | 517,897 | ||||||||
Shareholders’ equity | ||||||||||||
Preferred stock | 5,968 | 5,983 | 6,808 | 6,371 | ||||||||
Common stock, par value $0.01 a share—authorized: 4,000,000,000 shares; issued: 3/31/21 and 12/31/20—2,125,725,742 shares | 21 | 21 | ||||||||||
Common stock, par value $0.01 a share—authorized: 4,000,000,000 shares; issued: 3/31/22 and 12/31/21—2,125,725,742 shares | 21 | 21 | ||||||||||
Capital surplus | 8,487 | 8,511 | 8,515 | 8,539 | ||||||||
Retained earnings | 65,740 | 64,188 | 69,987 | 69,201 | ||||||||
Less cost of common stock in treasury: 3/31/21—628,716,254 shares; 12/31/20—618,618,084 shares | (26,443) | (25,930) | ||||||||||
Less cost of common stock in treasury: 3/31/22 - 640,053,754 shares; 12/31/21—642,223,571 shares | (27,193 | ) | (27,271 | ) | ||||||||
Accumulated other comprehensive income (loss) | (2,095) | 322 | (6,938 | ) | (1,943 | ) | ||||||
Total U.S. Bancorp shareholders’ equity | 51,678 | 53,095 | 51,200 | 54,918 | ||||||||
Noncontrolling interests | 630 | 630 | 468 | 469 | ||||||||
Total equity | 52,308 | 53,725 | 51,668 | 55,387 | ||||||||
Total liabilities and equity | $553,375 | $553,905 | $ | 586,517 | $ | 573,284 |
(a) | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
U.S. Bancorp |
(Dollars and Shares in Millions, Except Per Share Data) (Unaudited) | Three Months Ended March 31 | |||||||
2022 | 2021 | |||||||
Interest Income | ||||||||
Loans | $ | 2,599 | $ | 2,724 | ||||
Loans held for sale | 60 | 67 | ||||||
Investment securities | 717 | 517 | ||||||
Other interest income | 42 | 33 | ||||||
Total interest income | 3,418 | 3,341 | ||||||
Interest Expense | ||||||||
Deposits | 80 | 85 | ||||||
Short-term borrowings | 21 | 16 | ||||||
Long-term debt | 144 | 177 | ||||||
Total interest expense | 245 | 278 | ||||||
Net interest income | 3,173 | 3,063 | ||||||
Provision for credit losses | 112 | (827 | ) | |||||
Net interest income after provision for credit losses | 3,061 | 3,890 | ||||||
Noninterest Income | ||||||||
Credit and debit card revenue | 338 | 336 | ||||||
Corporate payment products revenue | 158 | 126 | ||||||
Merchant processing services | 363 | 318 | ||||||
Trust and investment management fees | 500 | 444 | ||||||
Deposit service charges | 177 | 161 | ||||||
Treasury management fees | 156 | 147 | ||||||
Commercial products revenue | 266 | 280 | ||||||
Mortgage banking revenue | 200 | 299 | ||||||
Investment products fees | 62 | 55 | ||||||
Securities gains (losses), net | 18 | 25 | ||||||
Other | 158 | 190 | ||||||
Total noninterest income | 2,396 | 2,381 | ||||||
Noninterest Expense | ||||||||
Compensation | 1,853 | 1,803 | ||||||
Employee benefits | 396 | 384 | ||||||
Net occupancy and equipment | 269 | 263 | ||||||
Professional services | 114 | 98 | ||||||
Marketing and business development | 80 | 48 | ||||||
Technology and communications | 349 | 359 | ||||||
Postage, printing and supplies | 72 | 69 | ||||||
Other intangibles | 47 | 38 | ||||||
Other | 322 | 317 | ||||||
Total noninterest expense | 3,502 | 3,379 | ||||||
Income before income taxes | 1,955 | 2,892 | ||||||
Applicable income taxes | 397 | 607 | ||||||
Net income | 1,558 | 2,285 | ||||||
Net (income) loss attributable to noncontrolling interests | (1 | ) | (5 | ) | ||||
Net income attributable to U.S. Bancorp | $ | 1,557 | $ | 2,280 | ||||
Net income applicable to U.S. Bancorp common shareholders | $ | 1,466 | $ | 2,175 | ||||
Earnings per common share | $ | .99 | $ | 1.45 | ||||
Diluted earnings per common share | $ | .99 | $ | 1.45 | ||||
Average common shares outstanding | 1,485 | 1,502 | ||||||
Average diluted common shares outstanding | 1,486 | 1,503 |
34 | U.S. Bancorp |
(Dollars in Millions) (Unaudited) | Three Months Ended March 31 | |||||||
2022 | 2021 | |||||||
Net income | $ | 1,558 | $ | 2,285 | ||||
Other Comprehensive Income (Loss) | ||||||||
Changes in unrealized gains (losses) on investment securities available-for-sale | (6,754 | ) | (3,378 | ) | ||||
Changes in unrealized gains (losses) on derivative hedges | – | 99 | ||||||
Foreign currency translation | – | 25 | ||||||
Reclassification to earnings of realized (gains) losses | 67 | 18 | ||||||
Income taxes related to other comprehensive income (loss) | 1,692 | 819 | ||||||
Total other comprehensive income (loss) | (4,995 | ) | (2,417 | ) | ||||
Comprehensive income (loss) | (3,437 | ) | (132 | ) | ||||
Comprehensive (income) loss attributable to noncontrolling interests | (1 | ) | (5 | ) | ||||
Comprehensive income (loss) attributable to U.S. Bancorp | $ | (3,438 | ) | $ | (137 | ) |
U.S. Bancorp |
(Dollars and Shares in Millions, Except Per Share Data) (Unaudited) | Three Months Ended March 31 | |||||||
2021 | 2020 | |||||||
Interest Income | ||||||||
Loans | $2,724 | $3,311 | ||||||
Loans held for sale | 67 | 44 | ||||||
Investment securities | 517 | 692 | ||||||
Other interest income | 33 | 69 | ||||||
Total interest income | 3,341 | 4,116 | ||||||
Interest Expense | ||||||||
Deposits | 85 | 525 | ||||||
Short-term borrowings | 16 | 71 | ||||||
Long-term debt | 177 | 297 | ||||||
Total interest expense | 278 | 893 | ||||||
Net interest income | 3,063 | 3,223 | ||||||
Provision for credit losses | (827 | ) | 993 | |||||
Net interest income after provision for credit losses | 3,890 | 2,230 | ||||||
Noninterest Income | ||||||||
Credit and debit card revenue | 336 | 304 | ||||||
Corporate payment products revenue | 126 | 145 | ||||||
Merchant processing services | 318 | 337 | ||||||
Trust and investment management fees | 444 | 427 | ||||||
Deposit service charges | 161 | 209 | ||||||
Treasury management fees | 147 | 143 | ||||||
Commercial products revenue | 280 | 246 | ||||||
Mortgage banking revenue | 299 | 395 | ||||||
Investment products fees | 55 | 49 | ||||||
Securities gains (losses), net | 25 | 50 | ||||||
Other | 190 | 220 | ||||||
Total noninterest income | 2,381 | 2,525 | ||||||
Noninterest Expense | ||||||||
Compensation | 1,803 | 1,620 | ||||||
Employee benefits | 384 | 352 | ||||||
Net occupancy and equipment | 263 | 276 | ||||||
Professional services | 98 | 99 | ||||||
Marketing and business development | 48 | 74 | ||||||
Technology and communications | 359 | 289 | ||||||
Postage, printing and supplies | 69 | 72 | ||||||
Other intangibles | 38 | 42 | ||||||
Other | 317 | 492 | ||||||
Total noninterest expense | 3,379 | 3,316 | ||||||
Income before income taxes | 2,892 | 1,439 | ||||||
Applicable income taxes | 607 | 260 | ||||||
Net income | 2,285 | 1,179 | ||||||
Net (income) loss attributable to noncontrolling interests | (5 | ) | (8 | ) | ||||
Net income attributable to U.S. Bancorp | $2,280 | $1,171 | ||||||
Net income applicable to U.S. Bancorp common shareholders | $2,175 | $1,088 | ||||||
Earnings per common share | $ 1.45 | $ .72 | ||||||
Diluted earnings per common share | $ 1.45 | $ .72 | ||||||
Average common shares outstanding | 1,502 | 1,518 | ||||||
Average diluted common shares outstanding | 1,503 | 1,519 |
(Dollars in Millions) (Unaudited) | Three Months Ended March 31 | |||||||
2021 | 2020 | |||||||
Net income | $ | 2,285 | $1,179 | |||||
Other Comprehensive Income (Loss) | ||||||||
Changes in unrealized gains and losses on investment securities available-for-sale | (3,378 | ) | 2,787 | |||||
Changes in unrealized gains and losses on derivative hedges | 99 | (257 | ) | |||||
Foreign currency translation | 25 | (13 | ) | |||||
Reclassification to earnings of realized gains and losses | 18 | (6 | ) | |||||
Income taxes related to other comprehensive income (loss) | 819 | (635 | ) | |||||
Total other comprehensive income (loss) | (2,417 | ) | 1,876 | |||||
Comprehensive income (loss) | (132 | ) | 3,055 | |||||
Comprehensive (income) loss attributable to noncontrolling interests | (5 | ) | (8 | ) | ||||
Comprehensive income (loss) attributable to U.S. Bancorp | $ | (137 | ) | $3,047 |
U.S. Bancorp Shareholders | U.S. Bancorp Shareholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars and Shares in Millions, Except Per Share Data) (Unaudited) | Common Shares Outstanding | Preferred Stock | Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total U.S. Bancorp Shareholders’ Equity | Noncontrolling Interests | Total Equity | Common Shares Outstanding | Preferred Stock | Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total U.S. Bancorp Shareholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2019 | 1,534 | $ | 5,984 | $ | 21 | $ | 8,475 | $ | 63,186 | $ | (24,440 | ) | $ | (1,373 | ) | $ | 51,853 | $ | 630 | $ | 52,483 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in accounting principle (a) | (1,099 | ) | (1,099 | ) | (1,099 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 1,171 | 1,171 | 8 | 1,179 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 1,876 | 1,876 | 1,876 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends (b) | (78 | ) | (78 | ) | (78 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($.42 per share) | (636 | ) | (636 | ) | (636 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common and treasury stock | 3 | (108 | ) | 117 | 9 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | (31 | ) | (1,649 | ) | (1,649 | ) | (1,649 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | (8 | ) | (8 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option and restricted stock grants | 85 | 85 | 85 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance March 31, 2020 | 1,506 | $ | 5,984 | $ | 21 | $ | 8,452 | $ | 62,544 | $ | (25,972 | ) | $ | 503 | $ | 51,532 | $ | 630 | $ | 52,162 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2020 | 1,507 | $ | 5,983 | $ | 21 | $ | 8,511 | $ | 64,188 | $ | (25,930 | ) | $ | 322 | $ | 53,095 | $ | 630 | $ | 53,725 | 1,507 | $ | 5,983 | $ | 21 | $ | 8,511 | $ | 64,188 | $ | (25,930 | ) | $ | 322 | $ | 53,095 | $ | 630 | $ | 53,725 | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 2,280 | 2,280 | 5 | 2,285 | 2,280 | 2,280 | 5 | 2,285 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (2,417 | ) | (2,417 | ) | (2,417 | ) | (2,417 | ) | (2,417 | ) | (2,417 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends (c) | (90 | ) | (90 | ) | (90 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($.42 per share) | (633 | ) | (633 | ) | (633 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends (a) | (90 | ) | (90 | ) | (90 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($.42 per share) | (633 | ) | (633 | ) | (633 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | 730 | 730 | 730 | 730 | 730 | 730 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Call of preferred stock | (745 | ) | (5 | ) | (750 | ) | (750 | ) | (745 | ) | (5 | ) | (750 | ) | (750 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common and treasury stock | 3 | (119 | ) | 137 | 18 | 18 | 3 | (119 | ) | 137 | 18 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | (13 | ) | (650 | ) | (650 | ) | (650 | ) | (13 | ) | (650 | ) | (650 | ) | (650 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | (5 | ) | (5 | ) | — | (5 | ) | (5 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option and restricted stock grants | 95 | 95 | 95 | 95 | 95 | 95 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance March 31, 2021 | 1,497 | $ | 5,968 | $ | 21 | $ | 8,487 | $ | 65,740 | $ | (26,443 | ) | $ | (2,095 | ) | $ | 51,678 | $ | 630 | $ | 52,308 | 1,497 | $ | 5,968 | $ | 21 | $ | 8,487 | $ | 65,740 | $ | (26,443 | ) | $ | (2,095 | ) | $ | 51,678 | $ | 630 | $ | 52,308 | ||||||||||||||||||||||||||||||||||||||
Balance December 31, 2021 | 1,484 | $ | 6,371 | $ | 21 | $ | 8,539 | $ | 69,201 | $ | (27,271 | ) | $ | (1,943 | ) | $ | 54,918 | $ | 469 | $ | 55,387 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 1,557 | 1,557 | 1 | 1,558 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (4,995 | ) | (4,995 | ) | (4,995 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends (b) | (84 | ) | (84 | ) | (84 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($.46 per share) | (687 | ) | (687 | ) | (687 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | 437 | 437 | 437 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common and treasury stock | 3 | (116 | ) | 132 | 16 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | (1 | ) | (54 | ) | (54 | ) | (54 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | (2 | ) | (2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option and restricted stock grants | 92 | 92 | 92 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance March 31, 2022 | 1,486 | $ | 6,808 | $ | 21 | $ | 8,515 | $ | 69,987 | $ | (27,193 | ) | $ | (6,938 | ) | $ | 51,200 | $ | 468 | $ | 51,668 |
(a) |
Reflects dividends declared per share on the Company’s Series A, Series B, Series F, Series I, Series J, Series K, Series L and Series M Non-Cumulative Perpetual Preferred Stock of $875.00, $218.75, $406.25, $232.953, $662.50, $343.75, $234.375, and $202.778 respectively. |
(b) | Reflects dividends declared per share on the Company’s Series A, Series B, Series J, Series K, Series L, Series M, Series N and Series O Non-Cumulative Perpetual Preferred Stock of $875.00, $218.75, $662.50, $343.75, $234.375, $250.00, $231.25 and $206.25 respectively. |
36 | U.S. Bancorp |
(Dollars in Millions) (Unaudited) | Three Months Ended March 31 | Three Months Ended March 31 | ||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Operating Activities | ||||||||||||||||
Net income attributable to U.S. Bancorp | $ | 2,280 | $ | 1,171 | $ | 1,557 | $ | 2,280 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||
Provision for credit losses | (827 | ) | 993 | 112 | (827 | ) | ||||||||||
Depreciation and amortization of premises and equipment | 84 | 87 | 85 | 84 | ||||||||||||
Amortization of intangibles | 38 | 42 | 47 | 38 | ||||||||||||
(Gain) loss on sale of loans held for sale | (213 | ) | (303 | ) | 62 | (213 | ) | |||||||||
(Gain) loss on sale of securities and other assets | �� | (66 | ) | (120 | ) | (42 | ) | (66 | ) | |||||||
Loans originated for sale, net of repayments | (20,928 | ) | (10,882 | ) | (9,827 | ) | (20,928 | ) | ||||||||
Proceeds from sales of loans held for sale | 20,397 | 12,032 | 13,874 | 20,397 | ||||||||||||
Other, net | 172 | (666 | ) | 2,609 | 172 | |||||||||||
Net cash provided by operating activities | 937 | 2,354 | 8,477 | 937 | ||||||||||||
Investing Activities | ||||||||||||||||
Proceeds from sales of available-for-sale | 1,062 | 9,916 | 12,527 | 1,062 | ||||||||||||
Proceeds from maturities of held-to-maturity | 1,173 | — | ||||||||||||||
Proceeds from maturities of available-for-sale | 12,550 | 5,649 | 5,498 | 12,550 | ||||||||||||
Purchases of held-to-maturity | (2,932 | ) | — | |||||||||||||
Purchases of available-for-sale | (36,182 | ) | (14,937 | ) | (15,989 | ) | (36,182 | ) | ||||||||
Net decrease (increase) in loans outstanding | 3,562 | (22,272 | ) | |||||||||||||
Net (increase) decrease in loans outstanding | (7,278 | ) | 3,562 | |||||||||||||
Proceeds from sales of loans | 1,062 | 575 | 1,309 | 1,062 | ||||||||||||
Purchases of loans | (1,600 | ) | (893 | ) | (1,073 | ) | (1,600 | ) | ||||||||
Net (increase) decrease in securities purchased under agreements to resell | (26 | ) | 788 | |||||||||||||
Net increase in securities purchased under agreements to resell | (147 | ) | (26 | ) | ||||||||||||
Other, net | 106 | (1,085 | ) | (452 | ) | 106 | ||||||||||
Net cash used in investing activities | (19,466 | ) | (22,259 | ) | (7,364 | ) | (19,466 | ) | ||||||||
Financing Activities | ||||||||||||||||
Net increase in deposits | 3,991 | 32,938 | 5,463 | 3,991 | ||||||||||||
Net increase in short-term borrowings | 332 | 2,621 | 9,246 | 332 | ||||||||||||
Proceeds from issuance of long-term debt | 69 | 11,271 | 2,153 | 69 | ||||||||||||
Principal payments or redemption of long-term debt | (3,830 | ) | (156 | ) | (1,118 | ) | (3,830 | ) | ||||||||
Proceeds from issuance of preferred stock | 730 | – | 437 | 730 | ||||||||||||
Proceeds from issuance of common stock | 17 | 9 | 15 | 17 | ||||||||||||
Repurchase of preferred stock | (500 | ) | – | (1,100 | ) | (500 | ) | |||||||||
Repurchase of common stock | (646 | ) | (1,660 | ) | (54 | ) | (646 | ) | ||||||||
Cash dividends paid on preferred stock | (76 | ) | (71 | ) | (70 | ) | (76 | ) | ||||||||
Cash dividends paid on common stock | (637 | ) | (647 | ) | (687 | ) | (637 | ) | ||||||||
Net cash (used in) provided by financing activities | (550 | ) | 44,305 | |||||||||||||
Net cash provided by (used in) financing activities | 14,285 | (550 | ) | |||||||||||||
Change in cash and due from banks | (19,079 | ) | 24,400 | 15,398 | (19,079 | ) | ||||||||||
Cash and due from banks at beginning of period | 62,580 | 22,405 | 28,905 | 62,580 | ||||||||||||
Cash and due from banks at end of period | $ | 43,501 | $ | 46,805 | $ | 44,303 | $ | 43,501 |
U.S. Bancorp | 37 |
Note 1 | Basis of Presentation |
Note 2 | Accounting Changes |
Note 3 | Business Combinations |
Note 4 | Investment Securities |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||
(Dollars in Millions) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||
U.S. Treasury and agencies | $ | 24,401 | $ | 288 | $ | (372 | ) | $ | 24,317 | $ | 21,954 | $ | 462 | $ | (25 | ) | $ | 22,391 | ||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||||
Residential agency | 116,629 | 1,230 | (1,683 | ) | 116,176 | 98,031 | 1,950 | (13 | ) | 99,968 | ||||||||||||||||||||||
Commercial agency | 6,254 | 53 | (221 | ) | 6,086 | 5,251 | 170 | (15 | ) | 5,406 | ||||||||||||||||||||||
Asset-backed securities | 197 | 5 | – | 202 | 200 | 5 | – | 205 | ||||||||||||||||||||||||
Obligations of state and political subdivisions | 8,687 | 546 | (18 | ) | 9,215 | 8,166 | 695 | – | 8,861 | |||||||||||||||||||||||
Other | 7 | – | – | 7 | 9 | – | – | 9 | ||||||||||||||||||||||||
Total available-for-sale | $ | 156,175 | $ | 2,122 | $ | (2,294 | ) | $ | 156,003 | $ | 133,611 | $ | 3,282 | $ | (53 | ) | $ | 136,840 |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||
(Dollars in Millions) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||||||||
Residential agency mortgage-backed securities | $ | 43,654 | $ | – | $ | (3,082 | ) | $ | 40,572 | $ | 41,858 | $ | 2 | $ | (48 | ) | $ | 41,812 | ||||||||||||||
Total held-to-maturity | $ | 43,654 | $ | – | $ | (3,082 | ) | $ | 40,572 | $ | 41,858 | $ | 2 | $ | (48 | ) | $ | 41,812 | ||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||
U.S. Treasury and agencies | $ | 27,653 | $ | 28 | $ | (1,331 | ) | $ | 26,350 | $ | 36,648 | $ | 205 | $ | (244 | ) | $ | 36,609 | ||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||||
Residential agency | 82,508 | 70 | (3,586 | ) | 78,992 | 76,761 | 665 | (347 | ) | 77,079 | ||||||||||||||||||||||
Commercial agency | 8,769 | – | (806 | ) | 7,963 | 8,633 | 53 | (201 | ) | 8,485 | ||||||||||||||||||||||
Asset-backed securities | 4 | 3 | – | 7 | 62 | 4 | – | 66 | ||||||||||||||||||||||||
Obligations of state and political subdivisions | 10,701 | 148 | (575 | ) | 10,274 | 10,130 | 607 | (20 | ) | 10,717 | ||||||||||||||||||||||
Other | 7 | – | – | 7 | 7 | – | – | 7 | ||||||||||||||||||||||||
Total available-for-sale | $ | 129,642 | $ | 249 | $ | (6,298 | ) | $ | 123,593 | $ | 132,241 | $ | 1,534 | $ | (812 | ) | $ | 132,963 |
Three Months Ended March 31 | Three Months Ended March 31 | |||||||||||||||
(Dollars in Millions) | 2021 | 2020 | 2022 | 2021 | ||||||||||||
Taxable | $ | 455 | $ | 640 | $ | 646 | $ | 455 | ||||||||
Non-taxable | 62 | 52 | 71 | 62 | ||||||||||||
Total interest income from investment securities | $ | 517 | $ | 692 | $ | 717 | $ | 517 |
U.S. Bancorp | 39 |
Three Months Ended March 31 | Three Months Ended March 31 | |||||||||||||||
(Dollars in Millions) | 2021 | 2020 | 2022 | 2021 | ||||||||||||
Realized gains | $ | 25 | $ | 73 | $ | 242 | $ | 25 | ||||||||
Realized losses | – | (23 | ) | (224 | ) | – | ||||||||||
Net realized gains | $ | 25 | $ | 50 | $ | 18 | $ | 25 | ||||||||
Income tax on net realized gains | $ | 6 | $ | 13 | $ | 4 | $ | 6 |
Less Than 12 Months | 12 Months or Greater | Total | Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||
U.S. Treasury and agencies | $ | 9,519 | $ | (372 | ) | $ | – | $ | – | $ | 9,519 | $ | (372 | ) | $ | 18,851 | $ | (982 | ) | $ | 3,784 | $ | (349 | ) | $ | 22,635 | $ | (1,331 | ) | |||||||||||||||||||
Residential agency mortgage-backed securities | 59,916 | (1,678 | ) | 150 | (5 | ) | 60,066 | (1,683 | ) | 66,323 | (3,181 | ) | 5,090 | (405 | ) | 71,413 | (3,586 | ) | ||||||||||||||||||||||||||||||
Commercial agency mortgage-backed securities | 4,130 | (221 | ) | 6 | – | 4,136 | (221 | ) | 5,105 | (414 | ) | 2,856 | (392 | ) | 7,961 | (806 | ) | |||||||||||||||||||||||||||||||
Asset-backed securities | – | – | 2 | – | 2 | – | – | – | 2 | – | 2 | – | ||||||||||||||||||||||||||||||||||||
Obligations of state and political subdivisions | 1,037 | (18 | ) | – | – | 1,037 | (18 | ) | 4,378 | (514 | ) | 222 | (61 | ) | 4,600 | (575 | ) | |||||||||||||||||||||||||||||||
Other | 4 | – | – | – | 4 | – | ||||||||||||||||||||||||||||||||||||||||||
Total investment securities | $ | 74,602 | $ | (2,289 | ) | $ | 158 | $ | (5 | ) | $ | 74,760 | $ | (2,294 | ) | $ | 94,661 | $ | (5,091 | ) | $ | 11,954 | $ | (1,207 | ) | $ | 106,615 | $ | (6,298 | ) |
40 |
(Dollars in Millions) | Amortized Cost | Fair Value | Weighted- Average Maturity in Years | Weighted- Average Yield (e) | Amortized Cost | Fair Value | Weighted- Average Maturity in Years | Weighted- Average Yield (e) | ||||||||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||||||||
Mortgage-Backed Securities (a) | ||||||||||||||||||||||||||||||||
Maturing in one year or less | $ | – | $ | – | – | – | % | |||||||||||||||||||||||||
Maturing after one year through five years | – | – | – | – | ||||||||||||||||||||||||||||
Maturing after five years through ten years | 30,703 | 28,569 | 9.5 | 1.58 | ||||||||||||||||||||||||||||
Maturing after ten years | 12,951 | 12,003 | 10.3 | 1.78 | ||||||||||||||||||||||||||||
Total | $ | 43,654 | $ | 40,572 | 9.7 | 1.64 | % | |||||||||||||||||||||||||
Total held-to-maturity | $ | 43,654 | $ | 40,572 | 9.7 | 1.64 | % | |||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||
U.S. Treasury and Agencies | ||||||||||||||||||||||||||||||||
Maturing in one year or less | $ | 4,264 | $ | 4,292 | .4 | 1.54 | % | $ | 2,226 | $ | 2,236 | .5 | 1.97 | % | ||||||||||||||||||
Maturing after one year through five years | 11,534 | 11,694 | 2.6 | 1.15 | 3,246 | 3,086 | 4.7 | 1.36 | ||||||||||||||||||||||||
Maturing after five years through ten years | 7,364 | 7,150 | 8.1 | 1.33 | 19,476 | 18,644 | 7.7 | 1.88 | ||||||||||||||||||||||||
Maturing after ten years | 1,239 | 1,181 | 13.0 | 1.78 | 2,705 | 2,384 | 12.0 | 1.99 | ||||||||||||||||||||||||
Total | $ | 24,401 | $ | 24,317 | 4.4 | 1.31 | % | $ | 27,653 | $ | 26,350 | 7.2 | 1.83 | % | ||||||||||||||||||
Mortgage-Backed Securities (a) | ||||||||||||||||||||||||||||||||
Maturing in one year or less | $ | 110 | $ | 112 | .6 | 2.07 | % | $ | 64 | $ | 65 | .7 | 2.19 | % | ||||||||||||||||||
Maturing after one year through five years | 47,936 | 49,021 | 3.6 | 1.40 | 15,629 | 15,395 | 3.3 | 1.89 | ||||||||||||||||||||||||
Maturing after five years through ten years | 74,785 | 73,077 | 7.8 | 1.46 | 69,960 | 66,155 | 8.0 | 1.76 | ||||||||||||||||||||||||
Maturing after ten years | 52 | 52 | 11.9 | 1.13 | 5,624 | 5,340 | 10.4 | 2.09 | ||||||||||||||||||||||||
Total | $ | 122,883 | $ | 122,262 | 6.1 | 1.44 | % | $ | 91,277 | $ | 86,955 | 7.3 | 1.80 | % | ||||||||||||||||||
Asset-Backed Securities (a) | ||||||||||||||||||||||||||||||||
Maturing in one year or less | $ | – | $ | – | .9 | 2.69 | % | $ | – | $ | – | .5 | 2.69 | % | ||||||||||||||||||
Maturing after one year through five years | 3 | 4 | 2.9 | 1.74 | 2 | 3 | 3.0 | 1.91 | ||||||||||||||||||||||||
Maturing after five years through ten years | 194 | 197 | 6.0 | 1.08 | 2 | 2 | 6.0 | 2.13 | ||||||||||||||||||||||||
Maturing after ten years | – | 1 | 13.6 | 2.41 | – | 2 | 13.0 | 2.41 | ||||||||||||||||||||||||
Total | $ | 197 | $ | 202 | 5.9 | 1.09 | % | $ | 4 | $ | 7 | 4.1 | 2.00 | % | ||||||||||||||||||
Obligations of State and Political Subdivisions (b) (c) | ||||||||||||||||||||||||||||||||
Maturing in one year or less | $ | 178 | $ | 182 | .7 | 4.21 | % | $ | 409 | $ | 412 | .4 | 4.74 | % | ||||||||||||||||||
Maturing after one year through five years | 1,451 | 1,539 | 3.5 | 4.39 | 3,046 | 3,120 | 4.0 | 4.34 | ||||||||||||||||||||||||
Maturing after five years through ten years | 6,624 | 7,066 | 6.9 | 3.86 | 3,326 | 3,335 | 6.5 | 3.83 | ||||||||||||||||||||||||
Maturing after ten years | 434 | 428 | 17.4 | 2.57 | 3,920 | 3,407 | 17.1 | 2.82 | ||||||||||||||||||||||||
Total | $ | 8,687 | $ | 9,215 | 6.7 | 3.89 | % | $ | 10,701 | $ | 10,274 | 9.5 | 3.64 | % | ||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Maturing in one year or less | $ | 7 | $ | 7 | .1 | 2.07 | % | $ | 7 | $ | 7 | .1 | 2.07 | % | ||||||||||||||||||
Maturing after one year through five years | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||
Maturing after five years through ten years | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||
Maturing after ten years | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||
Total | $ | 7 | $ | 7 | .1 | 2.07 | % | $ | 7 | $ | 7 | .1 | 2.07 | % | ||||||||||||||||||
Total investment securities (d) | $ | 156,175 | $ | 156,003 | 5.9 | 1.55 | % | |||||||||||||||||||||||||
Total available-for-sale | $ | 129,642 | $ | 123,593 | 7.5 | 1.96 | % |
(a) | Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments. |
(b) | Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount. |
(c) | Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par. |
(d) | The weighted-average maturity of total available-for-sale |
(e) | Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. Yields on investment securities are computed based on amortized cost available-for-sale held-to-maturity. |
41 |
Note | Loans and Allowance for Credit |
March 31, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Amount | Percent of Total | Amount | Percent of Total | Amount | Percent of Total | Amount | Percent of Total | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 98,847 | 33.6 | % | $ | 97,315 | 32.7 | % | $ | 112,479 | 35.3 | % | $ | 106,912 | 34.3 | % | ||||||||||||||||||||||||
Lease financing | 5,311 | 1.8 | 5,556 | 1.9 | 4,991 | 1.6 | 5,111 | 1.6 | ||||||||||||||||||||||||||||||||
Total commercial | 104,158 | 35.4 | 102,871 | 34.6 | 117,470 | 36.9 | 112,023 | 35.9 | ||||||||||||||||||||||||||||||||
Commercial Real Estate | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgages | 27,649 | 9.4 | 28,472 | 9.6 | 29,501 | 9.3 | 28,757 | 9.2 | ||||||||||||||||||||||||||||||||
Construction and development | 10,783 | 3.6 | 10,839 | 3.6 | 9,690 | 3.0 | 10,296 | 3.3 | ||||||||||||||||||||||||||||||||
Total commercial real estate | 38,432 | 13.0 | 39,311 | 13.2 | 39,191 | 12.3 | 39,053 | 12.5 | ||||||||||||||||||||||||||||||||
Residential Mortgages | ||||||||||||||||||||||||||||||||||||||||
Residential mortgages | 64,238 | 21.8 | 66,525 | 22.4 | 69,680 | 21.8 | 67,546 | 21.6 | ||||||||||||||||||||||||||||||||
Home equity loans, first liens | 9,386 | 3.2 | 9,630 | 3.2 | 8,807 | 2.8 | 8,947 | 2.9 | ||||||||||||||||||||||||||||||||
Total residential mortgages | 73,624 | 25.0 | 76,155 | 25.6 | 78,487 | 24.6 | 76,493 | 24.5 | ||||||||||||||||||||||||||||||||
Credit Card | 20,872 | 7.1 | 22,346 | 7.5 | 22,163 | 6.9 | 22,500 | 7.2 | ||||||||||||||||||||||||||||||||
Other Retail | ||||||||||||||||||||||||||||||||||||||||
Retail leasing | 7,880 | 2.7 | 8,150 | 2.7 | 6,941 | 2.2 | 7,256 | 2.3 | ||||||||||||||||||||||||||||||||
Home equity and second mortgages | 11,679 | 4.0 | 12,472 | 4.2 | 10,457 | 3.3 | 10,446 | 3.4 | ||||||||||||||||||||||||||||||||
Revolving credit | 2,536 | .9 | 2,688 | .9 | 2,652 | .8 | 2,750 | .9 | ||||||||||||||||||||||||||||||||
Installment | 14,562 | 4.9 | 13,823 | 4.6 | 16,732 | 5.2 | 16,514 | 5.3 | ||||||||||||||||||||||||||||||||
Automobile | 20,527 | 7.0 | 19,722 | 6.6 | 24,724 | 7.8 | 24,866 | 8.0 | ||||||||||||||||||||||||||||||||
Student | 157 | – | 169 | .1 | 117 | -- | 127 | -- | ||||||||||||||||||||||||||||||||
Total other retail | 57,341 | 19.5 | 57,024 | 19.1 | 61,623 | 19.3 | 61,959 | 19.9 | ||||||||||||||||||||||||||||||||
Total loans | $ | 294,427 | 100.0 | % | $ | 297,707 | 100.0 | % | $ | 318,934 | 100.0 | % | $ | 312,028 | 100.0 | % |
42 | U.S. Bancorp |
43 |
(Dollars in Millions) | Commercial | Commercial Real Estate | Residential Mortgages | Credit Card | Other Retail | Total Loans | Commercial | Commercial Real Estate | Residential Mortgages | Credit Card | Other Retail | Total Loans | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $1,849 | $1,123 | $565 | $1,673 | $ 945 | $6,155 | ||||||||||||||||||||||||||||||||||||||||||
Add | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | 19 | (54 | ) | 29 | 78 | 40 | 112 | |||||||||||||||||||||||||||||||||||||||||
Deduct | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans charged-off | 55 | 1 | 5 | 158 | 61 | 280 | ||||||||||||||||||||||||||||||||||||||||||
Less recoveries of loans charged-off | (23 | ) | (6 | ) | (11 | ) | (46 | ) | (32 | ) | (118 | ) | ||||||||||||||||||||||||||||||||||||
Net loan charge-offs (recoveries) | 32 | (5 | ) | (6 | ) | 112 | 29 | 162 | ||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $1,836 | $1,074 | $600 | $1,639 | $956 | $6,105 | ||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 2,423 | $ | 1,544 | $ | 573 | $ | 2,355 | $ | 1,115 | $ | 8,010 | $2,423 | $1,544 | $573 | $2,355 | $1,115 | $8,010 | ||||||||||||||||||||||||||||||
Add | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | (435 | ) | (19 | ) | (39 | ) | (259 | ) | (75 | ) | (827 | ) | (435 | ) | (19 | ) | (39 | ) | (259 | ) | (75 | ) | (827 | ) | ||||||||||||||||||||||||
Deduct | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans charged-off | 86 | 10 | 5 | 190 | 83 | 374 | 86 | 10 | 5 | 190 | 83 | 374 | ||||||||||||||||||||||||||||||||||||
Less recoveries of loans charged-off | (30 | ) | (17 | ) | (10 | ) | (46 | ) | (48 | ) | (151 | ) | (30 | ) | (17 | ) | (10 | ) | (46 | ) | (48 | ) | (151 | ) | ||||||||||||||||||||||||
Net loan charge-offs (recoveries ) | 56 | (7 | ) | (5 | ) | 144 | 35 | 223 | ||||||||||||||||||||||||||||||||||||||||
Net loan charge-offs (recoveries) | 56 | (7 | ) | (5 | ) | 144 | 35 | 223 | ||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | 1,932 | $ | 1,532 | $ | 539 | $ | 1,952 | $ | 1,005 | $ | 6,960 | $1,932 | $1,532 | $539 | $1,952 | $1,005 | $6,960 | ||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 1,484 | $ | 799 | $ | 433 | $ | 1,128 | $ | 647 | $ | 4,491 | ||||||||||||||||||||||||||||||||||||
Add | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in accounting principle (a) | 378 | (122 | ) | (30 | ) | 872 | 401 | 1,499 | ||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | 452 | 162 | 10 | 246 | 123 | 993 | ||||||||||||||||||||||||||||||||||||||||||
Deduct | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans charged-off | 88 | – | 8 | 274 | 121 | 491 | ||||||||||||||||||||||||||||||||||||||||||
Less recoveries of loans charged-off | (14 | ) | (2 | ) | (7 | ) | (40 | ) | (35 | ) | (98 | ) | ||||||||||||||||||||||||||||||||||||
Net loan charge-offs (recoveries ) | 74 | (2 | ) | 1 | 234 | 86 | 393 | |||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | 2,240 | $ | 841 | $ | 412 | $ | 2,012 | $ | 1,085 | $ | 6,590 |
44 | U.S. Bancorp |
Accruing | ||||||||||||||||||||
(Dollars in Millions) | Current | 30-89 Days Past Due | 90 Days or More Past Due | Nonperforming (b) | Total | |||||||||||||||
March 31, 2021 | ||||||||||||||||||||
Commercial | $ | 103,557 | $ | 193 | $ | 61 | $ | 347 | $ | 104,158 | ||||||||||
Commercial real estate | 37,953 | 119 | 4 | 356 | 38,432 | |||||||||||||||
Residential mortgages (a) | 73,024 | 204 | 143 | 253 | 73,624 | |||||||||||||||
Credit card | 20,486 | 188 | 198 | – | 20,872 | |||||||||||||||
Other retail | 56,878 | 221 | 70 | 172 | 57,341 | |||||||||||||||
Total loans | $ | 291,898 | $ | 925 | $ | 476 | $ | 1,128 | $ | 294,427 | ||||||||||
December 31, 2020 | ||||||||||||||||||||
Commercial | $ | 102,127 | $ | 314 | $ | 55 | $ | 375 | $ | 102,871 | ||||||||||
Commercial real estate | 38,676 | 183 | 2 | 450 | 39,311 | |||||||||||||||
Residential mortgages (a) | 75,529 | 244 | 137 | 245 | 76,155 | |||||||||||||||
Credit card | 21,918 | 231 | 197 | – | 22,346 | |||||||||||||||
Other retail | 56,466 | 318 | 86 | 154 | 57,024 | |||||||||||||||
Total loans | $ | 294,716 | $ | 1,290 | $ | 477 | $ | 1,224 | $ | 297,707 |
Accruing | ||||||||||||||||||||
(Dollars in Millions) | Current | 30-89 Days Past Due | 90 Days or More Past Due | Nonperforming (b) | Total | |||||||||||||||
March 31, 2022 | ||||||||||||||||||||
Commercial | $ | 116,986 | $ 234 | $ 76 | $ 174 | $117,470 | ||||||||||||||
Commercial real estate | 38,888 | 86 | 1 | 216 | 39,191 | |||||||||||||||
Residential mortgages (a) | 78,028 | 105 | 140 | 214 | 78,487 | |||||||||||||||
Credit card | 21,804 | 194 | 165 | — | 22,163 | |||||||||||||||
Other retail | 61,157 | 237 | 68 | 161 | 61,623 | |||||||||||||||
Total loans | $ | 316,863 | $ 856 | $450 | $ 765 | $318,934 | ||||||||||||||
December 31, 2021 | ||||||||||||||||||||
Commercial | $ | 111,270 | $530 | $49 | $ 174 | $112,023 | ||||||||||||||
Commercial real estate | 38,678 | 80 | 11 | 284 | 39,053 | |||||||||||||||
Residential mortgages (a) | 75,962 | 124 | 181 | 226 | 76,493 | |||||||||||||||
Credit card | 22,142 | 193 | 165 | — | 22,500 | |||||||||||||||
Other retail | 61,468 | 275 | 66 | 150 | 61,959 | |||||||||||||||
Total loans | $ | 309,520 | $1,202 | $472 | $ 834 | $312,028 |
(a) | At March 31, |
(b) | Substantially all nonperforming loans at March 31, million for the three months ended March 31, |
45 |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||
Criticized | Criticized | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Pass | Special Mention | Classified (a) | Total Criticized | Total | Pass | Special Mention | Classified (a) | Total Criticized | Total | ||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||
Originated in 2021 | $ | 12,604 | $ | 313 | $ | 218 | $ | 531 | $ | 13,135 | $ | – | $ | – | $ | – | $ | – | $ | – | ||||||||||||||||||||||||
Originated in 2020 | 28,890 | 1,003 | 1,302 | 2,305 | 31,195 | 34,557 | 1,335 | 1,753 | 3,088 | 37,645 | ||||||||||||||||||||||||||||||||||
Originated in 2019 | 15,710 | 351 | 223 | 574 | 16,284 | 17,867 | 269 | 349 | 618 | 18,485 | ||||||||||||||||||||||||||||||||||
Originated in 2018 | 10,909 | 372 | 151 | 523 | 11,432 | 12,349 | 351 | 176 | 527 | 12,876 | ||||||||||||||||||||||||||||||||||
Originated in 2017 | 4,658 | 81 | 181 | 262 | 4,920 | 5,257 | 117 | 270 | 387 | 5,644 | ||||||||||||||||||||||||||||||||||
Originated prior to 2017 | 4,133 | 168 | 73 | 241 | 4,374 | 4,954 | 128 | 115 | 243 | 5,197 | ||||||||||||||||||||||||||||||||||
Revolving | 22,377 | 206 | 235 | 441 | 22,818 | 22,445 | 299 | 280 | 579 | 23,024 | ||||||||||||||||||||||||||||||||||
Total commercial | 99,281 | 2,494 | 2,383 | 4,877 | 104,158 | 97,429 | 2,499 | 2,943 | 5,442 | 102,871 | ||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||
Originated in 2021 | 2,368 | 39 | 408 | 447 | 2,815 | – | – | – | – | – | ||||||||||||||||||||||||||||||||||
Originated in 2020 | 8,889 | 336 | 901 | 1,237 | 10,126 | 9,446 | 461 | 1,137 | 1,598 | 11,044 | ||||||||||||||||||||||||||||||||||
Originated in 2019 | 8,788 | 450 | 947 | 1,397 | 10,185 | 9,514 | 454 | 1,005 | 1,459 | 10,973 | ||||||||||||||||||||||||||||||||||
Originated in 2018 | 5,296 | 373 | 499 | 872 | 6,168 | 6,053 | 411 | 639 | 1,050 | 7,103 | ||||||||||||||||||||||||||||||||||
Originated in 2017 | 2,375 | 141 | 350 | 491 | 2,866 | 2,650 | 198 | 340 | 538 | 3,188 | ||||||||||||||||||||||||||||||||||
Originated prior to 2017 | 4,272 | 151 | 161 | 312 | 4,584 | 4,762 | 240 | 309 | 549 | 5,311 | ||||||||||||||||||||||||||||||||||
Revolving | 1,457 | 5 | 226 | 231 | 1,688 | 1,445 | 9 | 238 | 247 | 1,692 | ||||||||||||||||||||||||||||||||||
Total commercial real estate | 33,445 | 1,495 | 3,492 | 4,987 | 38,432 | 33,870 | 1,773 | 3,668 | 5,441 | 39,311 | ||||||||||||||||||||||||||||||||||
Residential mortgages (b) | ||||||||||||||||||||||||||||||||||||||||||||
Originated in 2021 | 4,208 | – | – | – | 4,208 | – | – | – | – | – | ||||||||||||||||||||||||||||||||||
Originated in 2020 | 22,053 | – | 5 | 5 | 22,058 | 23,262 | 1 | 3 | 4 | 23,266 | ||||||||||||||||||||||||||||||||||
Originated in 2019 | 12,084 | 1 | 23 | 24 | 12,108 | 13,969 | 1 | 17 | 18 | 13,987 | ||||||||||||||||||||||||||||||||||
Originated in 2018 | 4,989 | 1 | 25 | 26 | 5,015 | 5,670 | 1 | 22 | 23 | 5,693 | ||||||||||||||||||||||||||||||||||
Originated in 2017 | 6,091 | 1 | 22 | 23 | 6,114 | 6,918 | 1 | 24 | 25 | 6,943 | ||||||||||||||||||||||||||||||||||
Originated prior to 2017 | 23,782 | 3 | 335 | 338 | 24,120 | 25,921 | 2 | 342 | 344 | 26,265 | ||||||||||||||||||||||||||||||||||
Revolving | 1 | – | – | – | 1 | 1 | – | – | – | 1 | ||||||||||||||||||||||||||||||||||
Total residential mortgages | 73,208 | 6 | 410 | 416 | 73,624 | 75,741 | 6 | 408 | 414 | 76,155 | ||||||||||||||||||||||||||||||||||
Credit card (c) | 20,674 | – | 198 | 198 | 20,872 | 22,149 | – | 197 | 197 | 22,346 | ||||||||||||||||||||||||||||||||||
Other retail | ||||||||||||||||||||||||||||||||||||||||||||
Originated in 2021 | 5,690 | – | 1 | 1 | 5,691 | – | – | – | – | – | ||||||||||||||||||||||||||||||||||
Originated in 2020 | 15,954 | – | 6 | 6 | 15,960 | 17,589 | – | 7 | 7 | 17,596 | ||||||||||||||||||||||||||||||||||
Originated in 2019 | 10,351 | – | 16 | 16 | 10,367 | 11,605 | – | 23 | 23 | 11,628 | ||||||||||||||||||||||||||||||||||
Originated in 2018 | 5,822 | – | 20 | 20 | 5,842 | 6,814 | – | 27 | 27 | 6,841 | ||||||||||||||||||||||||||||||||||
Originated in 2017 | 3,106 | – | 14 | 14 | 3,120 | 3,879 | – | 22 | 22 | 3,901 | ||||||||||||||||||||||||||||||||||
Originated prior to 2017 | 3,134 | – | 18 | 18 | 3,152 | 3,731 | – | 29 | 29 | 3,760 | ||||||||||||||||||||||||||||||||||
Revolving | 12,536 | – | 135 | 135 | 12,671 | 12,647 | – | 110 | 110 | 12,757 | ||||||||||||||||||||||||||||||||||
Revolving converted to term | 495 | – | 43 | 43 | 538 | 503 | – | 38 | 38 | 541 | ||||||||||||||||||||||||||||||||||
Total other retail | 57,088 | – | 253 | 253 | 57,341 | 56,768 | – | 256 | 256 | 57,024 | ||||||||||||||||||||||||||||||||||
Total loans | $ | 283,696 | $ | 3,995 | $ | 6,736 | $ | 10,731 | $ | 294,427 | $ | 285,957 | $ | 4,278 | $ | 7,472 | $ | 11,750 | $ | 297,707 | ||||||||||||||||||||||||
Total outstanding commitments | $ | 629,280 | $ | 8,140 | $ | 9,239 | $ | 17,379 | $ | 646,659 | $ | 627,606 | $ | 8,772 | $ | 9,374 | $ | 18,146 | $ | 645,752 |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
Criticized | Criticized | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Pass | Special Mention | Classified (a) | Total Criticized | Total | Pass | Special Mention | Classified (a) | Total Criticized | Total | ||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||
Originated in 2022 | $ 13,554 | $ 8 | $ 45 | $ 53 | $ 13,607 | $ – | $ – | $ – | $ – | $ – | ||||||||||||||||||||||||||||||||||
Originated in 2021 | 47,131 | 378 | 283 | 661 | 47,792 | 51,155 | 387 | 287 | 674 | 51,829 | ||||||||||||||||||||||||||||||||||
Originated in 2020 | 11,779 | 38 | 312 | 350 | 12,129 | 14,091 | 304 | 133 | 437 | 14,528 | ||||||||||||||||||||||||||||||||||
Originated in 2019 | 8,761 | 24 | 99 | 123 | 8,884 | 10,159 | 151 | 54 | 205 | 10,364 | ||||||||||||||||||||||||||||||||||
Originated in 2018 | 4,475 | 11 | 44 | 55 | 4,530 | 5,122 | 3 | 36 | 39 | 5,161 | ||||||||||||||||||||||||||||||||||
Originated prior to 2018 | 4,251 | 17 | 49 | 66 | 4,317 | 4,923 | 30 | 81 | 111 | 5,034 | ||||||||||||||||||||||||||||||||||
Revolving | 25,756 | 261 | 194 | 455 | 26,211 | 24,722 | 268 | 117 | 385 | 25,107 | ||||||||||||||||||||||||||||||||||
Total commercial | 115,707 | 737 | 1,026 | 1,763 | 117,470 | 110,172 | 1,143 | 708 | 1,851 | 112,023 | ||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||
Originated in 2022 | 3,170 | 110 | 185 | 295 | 3,465 | – | – | – | – | – | ||||||||||||||||||||||||||||||||||
Originated in 2021 | 12,419 | 17 | 705 | 722 | 13,141 | 13,364 | 6 | 990 | 996 | 14,360 | ||||||||||||||||||||||||||||||||||
Originated in 2020 | 6,907 | 78 | 241 | 319 | 7,226 | 7,459 | 198 | 263 | 461 | 7,920 | ||||||||||||||||||||||||||||||||||
Originated in 2019 | 5,750 | 310 | 556 | 866 | 6,616 | 6,368 | 251 | 610 | 861 | 7,229 | ||||||||||||||||||||||||||||||||||
Originated in 2018 | 2,847 | 42 | 213 | 255 | 3,102 | 2,996 | 29 | 229 | 258 | 3,254 | ||||||||||||||||||||||||||||||||||
Originated prior to 2018 | 3,898 | 19 | 152 | 171 | 4,069 | 4,473 | 55 | 224 | 279 | 4,752 | ||||||||||||||||||||||||||||||||||
Revolving | 1,530 | – | 42 | 42 | 1,572 | 1,494 | 1 | 43 | 44 | 1,538 | ||||||||||||||||||||||||||||||||||
Total commercial real estate | 36,521 | 576 | 2,094 | 2,670 | 39,191 | 36,154 | 540 | 2,359 | 2,899 | 39,053 | ||||||||||||||||||||||||||||||||||
Residential mortgages (b) | ||||||||||||||||||||||||||||||||||||||||||||
Originated in 2022 | 6,431 | – | – | – | 6,431 | – | – | – | – | – | ||||||||||||||||||||||||||||||||||
Originated in 2021 | 29,721 | – | 4 | 4 | 29,725 | 29,882 | – | 3 | 3 | 29,885 | ||||||||||||||||||||||||||||||||||
Originated in 2020 | 14,850 | – | 10 | 10 | 14,860 | 15,948 | 1 | 8 | 9 | 15,957 | ||||||||||||||||||||||||||||||||||
Originated in 2019 | 6,154 | – | 23 | 23 | 6,177 | 6,938 | – | 36 | 36 | 6,974 | ||||||||||||||||||||||||||||||||||
Originated in 2018 | 2,553 | – | 20 | 20 | 2,573 | 2,889 | – | 30 | 30 | 2,919 | ||||||||||||||||||||||||||||||||||
Originated prior to 2018 | 18,407 | – | 313 | 313 | 18,720 | 20,415 | – | 342 | 342 | 20,757 | ||||||||||||||||||||||||||||||||||
Revolving | 1 | – | – | – | 1 | 1 | – | – | – | 1 | ||||||||||||||||||||||||||||||||||
Total residential mortgages | 78,117 | – | 370 | 370 | 78,487 | 76,073 | 1 | 419 | 420 | 76,493 | ||||||||||||||||||||||||||||||||||
Credit card (c) | 21,998 | – | 165 | 165 | 22,163 | 22,335 | – | 165 | 165 | 22,500 | ||||||||||||||||||||||||||||||||||
Other retail | ||||||||||||||||||||||||||||||||||||||||||||
Originated in 2022 | 4,644 | – | – | – | 4,644 | – | – | – | – | – | ||||||||||||||||||||||||||||||||||
Originated in 2021 | 20,495 | – | 7 | 7 | 20,502 | 22,455 | – | 6 | 6 | 22,461 | ||||||||||||||||||||||||||||||||||
Originated in 2020 | 10,972 | – | 9 | 9 | 10,981 | 12,071 | – | 9 | 9 | 12,080 | ||||||||||||||||||||||||||||||||||
Originated in 2019 | 6,327 | – | 14 | 14 | 6,341 | 7,223 | – | 17 | 17 | 7,240 | ||||||||||||||||||||||||||||||||||
Originated in 2018 | 2,675 | – | 12 | 12 | 2,687 | 3,285 | – | 14 | 14 | 3,299 | ||||||||||||||||||||||||||||||||||
Originated prior to 2018 | 3,174 | – | 20 | 20 | 3,194 | 3,699 | – | 24 | 24 | 3,723 | ||||||||||||||||||||||||||||||||||
Revolving | 12,644 | – | 127 | 127 | 12,771 | 12,532 | – | 112 | 112 | 12,644 | ||||||||||||||||||||||||||||||||||
Revolving converted to term | 460 | – | 43 | 43 | 503 | 472 | – | 40 | 40 | 512 | ||||||||||||||||||||||||||||||||||
Total other retail | 61,391 | – | 232 | 232 | 61,623 | 61,737 | – | 222 | 222 | 61,959 | ||||||||||||||||||||||||||||||||||
Total loans | $313,734 | $1,313 | $3,887 | $ 5,200 | $318,934 | $306,471 | $1,684 | $3,873 | $ 5,557 | $312,028 | ||||||||||||||||||||||||||||||||||
Total outstanding commitments | $678,366 | $2,372 | $5,684 | $8,056 | $686,422 | $662,363 | $3,372 | $5,684 | $ 9,056 | $671,419 |
Note: | Year of origination is based on the origination date of a loan, or for existing loans the date when the maturity date, pricing or commitment amount is amended. |
(a) | Classified rating on consumer loans primarily based on delinquency status. |
(b) | At March 31, |
(c) | All credit card loans are considered revolving loans. |
46 |
2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31 (Dollars in Millions) | Number of Loans | Pre-Modification Outstanding Loan Balance | Post-Modification Outstanding Loan Balance | Number of Loans | Pre-Modification Outstanding Loan Balance | Post-Modification Outstanding Loan Balance | Number of Loans | Pre-Modification Outstanding Loan Balance | Post-Modification Outstanding Loan Balance | Number of Loans | Pre-Modification Outstanding Loan Balance | Post-Modification Outstanding Loan Balance | ||||||||||||||||||||||||||||||||||||||||||||
Commercial | 704 | $ | 75 | $ | 60 | 999 | $ | 99 | $ | 101 | 509 | $ 38 | $ 32 | 704 | $ 75 | $ 60 | ||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 56 | 86 | 71 | 27 | 21 | 21 | 9 | 11 | 10 | 56 | 86 | 71 | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgages | 336 | 104 | 104 | 90 | 10 | 10 | 840 | 228 | 226 | 336 | 104 | 104 | ||||||||||||||||||||||||||||||||||||||||||||
Credit card | 5,786 | 33 | 34 | 8,415 | 46 | 47 | 9,339 | 50 | 50 | 5,786 | 33 | 34 | ||||||||||||||||||||||||||||||||||||||||||||
Other retail | 1,325 | 37 | 32 | 655 | 15 | 14 | 728 | 37 | 37 | 1,325 | 37 | 32 | ||||||||||||||||||||||||||||||||||||||||||||
Total loans, excluding loans purchased from GNMA mortgage pools | 8,207 | 335 | 301 | 10,186 | 191 | 193 | 11,425 | 364 | 355 | 8,207 | 335 | 301 | ||||||||||||||||||||||||||||||||||||||||||||
Loans purchased from GNMA mortgage pools | 559 | 87 | 89 | 1,904 | 266 | 260 | 390 | 55 | 55 | 559 | 87 | 89 | ||||||||||||||||||||||||||||||||||||||||||||
Total loans | 8,766 | $ | 422 | $ | 390 | 12,090 | $ | 457 | $ | 453 | 11,815 | $ 419 | $410 | 8,766 | $ 422 | $ 390 |
47 |
2021 | 2020 | |||||||||||||||||||
Three Months Ended March 31 (Dollars in Millions) | Number of Loans | Amount Defaulted | Number of Loans | Amount Defaulted | ||||||||||||||||
Commercial | 285 | $ | 16 | 287 | $ | 20 | ||||||||||||||
Commercial real estate | 7 | 5 | 16 | 10 | ||||||||||||||||
Residential mortgages | 15 | 2 | 13 | 1 | ||||||||||||||||
Credit card | 1,764 | 9 | 2,070 | 10 | ||||||||||||||||
Other retail | 280 | 5 | 108 | 1 | ||||||||||||||||
Total loans, excluding loans purchased from GNMA mortgage pools | 2,351 | 37 | 2,494 | 42 | ||||||||||||||||
Loans purchased from GNMA mortgage pools | 30 | 4 | 304 | 41 | ||||||||||||||||
Total loans | 2,381 | $ | 41 | 2,798 | $ | 83 |
Three Months Ended March 31 (Dollars in Millions) | 2022 | 2021 | ||||||||||||||||||
Number of Loans | Amount Defaulted | Number of Loans | Amount Defaulted | |||||||||||||||||
Commercial | 214 | $ 3 | 285 | $ 16 | ||||||||||||||||
Commercial real estate | 3 | 1 | 7 | 5 | ||||||||||||||||
Residential mortgages | 34 | 3 | 15 | 2 | ||||||||||||||||
Credit card | 1,634 | 9 | 1,764 | 9 | ||||||||||||||||
Other retail | 83 | 1 | 280 | 5 | ||||||||||||||||
Total loans, excluding loans purchased from GNMA mortgage pools | 1,968 | 17 | 2,351 | 37 | ||||||||||||||||
Loans purchased from GNMA mortgage pools | 49 | 8 | 30 | 4 | ||||||||||||||||
Total loans | 2,017 | $25 | 2,381 | $ 41 |
Note | Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities |
48 |
(Dollars in Millions) | March 31, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | ||||||||||||
Investment carrying amount | $ | 5,161 | $ | 5,378 | $ | 5,106 | $ | 4,484 | ||||||||
Unfunded capital and other commitments | 2,236 | 2,334 | 2,331 | 1,890 | ||||||||||||
Maximum exposure to loss | 10,903 | 11,219 | 9,764 | 9,899 |
49 |
Note | Mortgage Servicing Rights |
Three Months Ended March 31 | Three Months Ended March 31 | |||||||||||||||
(Dollars in Millions) | 2021 | 2020 | 2022 | 2021 | ||||||||||||
Balance at beginning of period | $ | 2,210 | $ | 2,546 | $ | 2,953 | $ | 2,210 | ||||||||
Rights purchased | 16 | 5 | 3 | 16 | ||||||||||||
Rights capitalized | 319 | 201 | 237 | 319 | ||||||||||||
Rights sold (a) | — | 1 | 1 | — | ||||||||||||
Changes in fair value of MSRs | ||||||||||||||||
Due to fluctuations in market interest rates (b) | 486 | (743 | ) | 368 | 486 | |||||||||||
Due to revised assumptions or models (c) | (102 | ) | 17 | (27 | ) | (102 | ) | |||||||||
Other changes in fair value (d) | (142 | ) | (140 | ) | (103 | ) | (142 | ) | ||||||||
Balance at end of period | $ | 2,787 | $ | 1,887 | $ | 3,432 | $ | 2,787 |
(a) | MSRs sold include those having a negative fair value, resulting from the loans being severely delinquent. |
(b) | Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits. |
(c) | Includes changes in MSR value not caused by changes in market interest rates, such as changes in assumed cost to service, ancillary income and option adjusted spread, as well as the impact of any model changes. |
(d) | Primarily the change in MSR value from passage of time and cash flows realized (decay), but also includes the impact of changes to expected cash flows not associated with changes in market interest rates, such as the impact of delinquencies. |
March 31, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Down 100 bps | Down 50 bps | Down 25 bps | Up 25 bps | Up 50 bps | Up 100 bps | Down 100 bps | Down 50 bps | Down 25 bps | Up 25 bps | Up 50 bps | Up 100 bps | Down 100 bps | Down 50 bps | Down 25 bps | Up 25 bps | Up 50 bps | Up 100 bps | Down 100 bps | Down 50 bps | Down 25 bps | Up 25 bps | Up 50 bps | Up 100 bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MSR portfolio | $ | (563 | ) | $ | (293 | ) | $ | (149 | ) | $ | 143 | $ | 272 | $ | 483 | $ | (442 | ) | $ | (271 | ) | $ | (150 | ) | $ | 169 | $ | 343 | $ | 671 | $ | (485 | ) | $ | (227 | ) | $ | (109 | ) | $ | 99 | $ | 189 | $ | 338 | $ | (636 | ) | $ | (324 | ) | $ | (160 | ) | $ | 150 | $ | 287 | $ | 511 | ||||||||||||||||||||||||||||||||||||||||||||
Derivative instrument hedges | 611 | 299 | 146 | (136 | ) | (266 | ) | (513 | ) | 523 | 281 | 145 | (149 | ) | (304 | ) | (625 | ) | 485 | 224 | 106 | (94 | ) | (180 | ) | (333 | ) | 614 | 309 | 152 | (142 | ) | (278 | ) | (536 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sensitivity | $ | 48 | $ | 6 | $ | (3 | ) | $ | 7 | $ | 6 | $ | (30 | ) | $ | 81 | $ | 10 | $ | (5 | ) | $ | 20 | $ | 39 | $ | 46 | $ | 0 | $ | (3 | ) | $ | (3 | ) | $ | 5 | $ | 9 | $ | 5 | $ | (22 | ) | $ | (15 | ) | $ | (8 | ) | $ | 8 | $ | 9 | $ | (25 | ) |
50 |
March 31, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | HFA | Government | Conventional (d) | Total | HFA | Government | Conventional (d) | Total | HFA | Government | Conventional (d) | Total | HFA | Government | Conventional (d) | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing portfolio (a) | $ | 39,757 | $ | 23,734 | $ | 145,171 | $ | 208,662 | $ | 40,396 | $ | 25,474 | $ | 143,085 | $ | 208,955 | $ | 41,430 | $ | 21,619 | $ | 160,611 | $ | 223,660 | $ | 40,652 | $ | 21,919 | $ | 156,382 | $ | 218,953 | ||||||||||||||||||||||||||||||||||||||||
Fair value | $ | 499 | $ | 312 | $ | 1,976 | $ | 2,787 | $ | 406 | $ | 261 | $ | 1,543 | $ | 2,210 | $ | 628 | $ | 365 | $ | 2,439 | $ | 3,432 | $ | 527 | $ | 308 | $ | 2,118 | $ | 2,953 | ||||||||||||||||||||||||||||||||||||||||
Value (bps) (b) | 126 | 131 | 136 | 134 | 101 | 102 | 108 | 106 | 152 | 169 | 152 | 153 | 130 | 141 | 135 | 135 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average servicing fees (bps) | 35 | 40 | 30 | 32 | 35 | 40 | 30 | 32 | 36 | 41 | 30 | 32 | 36 | 41 | 30 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multiple (value/servicing fees) | 3.56 | 3.31 | 4.47 | 4.12 | 2.87 | 2.56 | 3.55 | 3.26 | 4.23 | 4.12 | 5.02 | 4.75 | 3.63 | 3.43 | 4.50 | 4.18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average note rate | 4.33 | % | 3.88 | % | 3.64 | % | 3.80 | % | 4.43 | % | 3.91 | % | 3.78 | % | 3.92 | % | 4.02 | % | 3.66 | % | 3.38 | % | 3.53 | % | 4.07 | % | 3.70 | % | 3.41 | % | 3.56 | % | ||||||||||||||||||||||||||||||||||||||||
Weighted-average age (in years) | 3.8 | 5.9 | 3.8 | 4.0 | 3.8 | 5.6 | 4.2 | 4.3 | 3.8 | 6.0 | 3.3 | 3.7 | 3.8 | 5.9 | 3.3 | 3.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average expected prepayment (constant prepayment rate) | 11.2 | % | 13.3 | % | 9.5 | % | 10.3 | % | 14.1 | % | 18.0 | % | 13.8 | % | 14.4 | % | 9.6 | % | 10.6 | % | 8.1 | % | 8.6 | % | 11.5 | % | 13.2 | % | 9.6 | % | 10.3 | % | ||||||||||||||||||||||||||||||||||||||||
Weighted-average expected life (in years) | 6.8 | 5.6 | 6.9 | 6.7 | 5.6 | 4.3 | 5.5 | 5.4 | 7.5 | 6.5 | 7.5 | 7.4 | 6.5 | 5.6 | 6.9 | 6.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average option adjusted spread (c) | 7.7 | % | 7.3 | % | 6.3 | % | 6.7 | % | 7.7 | % | 7.3 | % | 6.2 | % | 6.6 | % | 6.8 | % | 6.7 | % | 6.0 | % | �� | 6.2 | % | 7.3 | % | 7.3 | % | 6.3 | % | 6.6 | % |
(a) | Represents principal balance of mortgages having corresponding MSR asset. |
(b) | Calculated as fair value divided by the servicing portfolio. |
(c) | Option adjusted spread is the incremental spread added to the risk-free rate to reflect optionality and other risk inherent in the MSRs. |
(d) | Represents loans sold primarily to GSEs. |
Note | Preferred Stock |
March 31, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Shares Issued and Outstanding | Liquidation Preference | Discount | Carrying Amount | Shares Issued and Outstanding | Liquidation Preference | Discount | Carrying Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31 (Dollars in Millions) | Shares Issued and Outstanding | Liquidation Preference | Discount | Carrying Amount | Shares Issued and Outstanding | Liquidation Preference | Discount | Carrying Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A | 12,510 | $ | 1,251 | $ | 145 | $ | 1,106 | 12,510 | $ | 1,251 | $ | 145 | $ | 1,106 | 12,510 | $ | 1,251 | $ | 145 | $ | 1,106 | 12,510 | $ | 1,251 | $ | 145 | $ | 1,106 | ||||||||||||||||||||||||||||||||||||||||||||
Series B | 40,000 | 1,000 | — | 1,000 | 40,000 | 1,000 | — | 1,000 | 40,000 | 1,000 | — | 1,000 | 40,000 | 1,000 | — | 1,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series F | 44,000 | 1,100 | 12 | 1,088 | 44,000 | 1,100 | 12 | 1,088 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series I | — | — | — | — | 30,000 | 750 | 5 | 745 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series J | 40,000 | 1,000 | 7 | 993 | 40,000 | 1,000 | 7 | 993 | 40,000 | 1,000 | 7 | 993 | 40,000 | 1,000 | 7 | 993 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series K | 23,000 | 575 | 10 | 565 | 23,000 | 575 | 10 | 565 | 23,000 | 575 | 10 | 565 | 23,000 | 575 | 10 | 565 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series L | 20,000 | 500 | 14 | 486 | 20,000 | 500 | 14 | 486 | 20,000 | 500 | 14 | 486 | 20,000 | 500 | 14 | 486 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series M | 30,000 | 750 | 20 | 730 | — | — | — | — | 30,000 | 750 | 21 | 729 | 30,000 | 750 | 21 | 729 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series N | 60,000 | 1,500 | 8 | 1,492 | 60,000 | 1,500 | 8 | 1,492 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series O | 18,000 | 450 | 13 | 437 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total preferred stock (a) | 209,510 | $ | 6,176 | $ | 208 | $ | 5,968 | 209,510 | $ | 6,176 | $ | 193 | $ | 5,983 | 243,510 | $ | 7,026 | $ | 218 | $ | 6,808 | 225,510 | $ | 6,576 | $ | 205 | $ | 6,371 |
(a) | The par value of all shares issued and outstanding at March 31, |
51 |
Note | Accumulated Other Comprehensive Income (Loss) |
(Dollars in Millions) | Unrealized Gains (Losses) on Investment Securities Available-For- Sale | Unrealized Gains (Losses) on Derivative Hedges | Unrealized Gains (Losses) on Retirement Plans | Foreign Currency Translation | Total | Unrealized Gains (Losses) on Investment Securities Available-For- Sale | Unrealized Gains (Losses) on Investment Securities Transferred From Available- For-Sale toHeld-To-Maturity | Unrealized Gains (Losses) on Derivative Hedges | Unrealized Gains (Losses) on Retirement Plans | Foreign Currency Translation | Total | |||||||||||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 540 | $ | (935 | ) | $ | (85 | ) | $ | (1,426 | ) | $ | (37 | ) | $ | (1,943 | ) | |||||||||||||||||||||||||||
Changes in unrealized gains (losses) | (6,754 | ) | — | — | — | — | (6,754 | ) | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment (a) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Reclassification to earnings of realized (gains) losses | (18 | ) | 42 | 11 | 32 | — | 67 | |||||||||||||||||||||||||||||||||||||
Applicable income taxes | 1,714 | (11 | ) | (3 | ) | (8 | ) | — | 1,692 | |||||||||||||||||||||||||||||||||||
Balance at end of period | $ | (4,518 | ) | $ | (904 | ) | $ | (77 | ) | $ | (1,402 | ) | $ | (37 | ) | $ | (6,938 | ) | ||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 2,417 | $ | (189 | ) | $ | (1,842 | ) | $ | (64 | ) | $ | 322 | $ | 2,417 | $ | — | $ | (189 | ) | $ | (1,842 | ) | $ | (64 | ) | $ | 322 | ||||||||||||||||
Changes in unrealized gains and losses | (3,378 | ) | 99 | 0 | — | (3,279 | ) | |||||||||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) | (3,378 | ) | — | 99 | — | — | (3,279 | ) | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment (a) | — | — | — | 25 | 25 | — | — | — | — | 25 | 25 | |||||||||||||||||||||||||||||||||
Reclassification to earnings of realized gains and losses | (25 | ) | 4 | 39 | — | 18 | ||||||||||||||||||||||||||||||||||||||
Reclassification to earnings of realized (gains) losses | (25 | ) | — | 4 | 39 | — | 18 | |||||||||||||||||||||||||||||||||||||
Applicable income taxes | 861 | (26 | ) | (10 | ) | (6 | ) | 819 | 861 | — | (26 | ) | (10 | ) | (6 | ) | 819 | |||||||||||||||||||||||||||
Balance at end of period | $ | (125 | ) | $ | (112 | ) | $ | (1,813 | ) | $ | (45 | ) | $ | (2,095 | ) | $ | (125 | ) | $ | — | $ | (112 | ) | $ | (1,813 | ) | $ | (45 | ) | $ | (2,095 | ) | ||||||||||||
2020 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 379 | $ | (51 | ) | $ | (1,636 | ) | $ | (65 | ) | $ | (1,373 | ) | ||||||||||||||||||||||||||||||
Changes in unrealized gains and losses | 2,787 | (257 | ) | — | — | 2,530 | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment (a) | — | — | — | (13 | ) | (13 | ) | |||||||||||||||||||||||||||||||||||||
Reclassification to earnings of realized gains and losses | (50 | ) | 13 | 31 | — | (6 | ) | |||||||||||||||||||||||||||||||||||||
Applicable income taxes | (692 | ) | 62 | (8 | ) | 3 | (635 | ) | ||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 2,424 | $ | (233 | ) | $ | (1,613 | ) | $ | (75 | ) | $ | 503 |
(a) | Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges. |
Impact to Net Income | Affected Line Item in the Consolidated Statement of Income | Impact to Net Income | Affected Line Item in the Consolidated Statement of Income | |||||||||||||||||||||
(Dollars in Millions) | 2021 | 2020 | 2022 | 2021 | ||||||||||||||||||||
Unrealized gains (losses) on investment securities available-for-sale | Unrealized gains (losses) on investment securities available-for-sale | |||||||||||||||||||||||
Realized gains (losses) on sale of investment securities | $ | 25 | $ | 50 | Securities gains (losses), net | $ | 18 | $ | 25 | Securities gains (losses), net | ||||||||||||||
(5 | ) | (6 | ) | Applicable income taxes | ||||||||||||||||||||
13 | 19 | Net-of-tax | ||||||||||||||||||||||
Unrealized gains (losses) on investment securities transferred from available-for-sale held-to-maturity | ||||||||||||||||||||||||
Amortization of unrealized gains | (42 | ) | — | Interest income | ||||||||||||||||||||
(6 | ) | (13 | ) | Applicable income taxes | 11 | — | Applicable income taxes | |||||||||||||||||
19 | 37 | Net-of-tax | (31 | ) | — | Net-of-tax | ||||||||||||||||||
Unrealized gains (losses) on derivative hedges | ||||||||||||||||||||||||
Realized gains (losses) on derivative hedges | (4 | ) | (13 | ) | Interest expense | (11 | ) | (4 | ) | Interest expense | ||||||||||||||
1 | 3 | Applicable income taxes | 3 | 1 | Applicable income taxes | |||||||||||||||||||
(3 | ) | (10 | ) | Net-of-tax | (8 | ) | (3 | ) | Net-of-tax | |||||||||||||||
Unrealized gains (losses) on retirement plans | ||||||||||||||||||||||||
Actuarial gains (losses) and prior service cost (credit) amortization | (39 | ) | (31 | ) | Other noninterest expense | (32 | ) | (39 | ) | Other noninterest expense | ||||||||||||||
10 | 8 | Applicable income taxes | 8 | 10 | Applicable income taxes | |||||||||||||||||||
(29 | ) | (23 | ) | Net-of-tax | (24 | ) | (29 | ) | Net-of-tax | |||||||||||||||
Total impact to net income | $ | (13 | ) | $ | 4 | $ | (50 | ) | $ | (13 | ) |
52 | U.S. Bancorp |
Note | Earnings Per Share |
Three Months March 31 | Three Months Ended March 31 | |||||||||||||||||||
(Dollars and Shares in Millions, Except Per Share Data) | 2021 | 2020 | 2022 | 2021 | ||||||||||||||||
Net income attributable to U.S. Bancorp | $ | 2,280 | �� | $ | 1,171 | $ | 1,557 | $ | 2,280 | |||||||||||
Preferred dividends | (90 | ) | (78 | ) | (84 | ) | (90 | ) | ||||||||||||
Impact of preferred stock call (a) | (5 | ) | — | — | (5 | ) | ||||||||||||||
Earnings allocated to participating stock awards | (10 | ) | (5 | ) | (7 | ) | (10 | ) | ||||||||||||
Net income applicable to U.S. Bancorp common shareholders | $ | 2,175 | $ | 1,088 | $ | 1,466 | $ | 2,175 | ||||||||||||
Average common shares outstanding | 1,502 | 1,518 | 1,485 | 1,502 | ||||||||||||||||
Net effect of the exercise and assumed purchase of stock awards | 1 | 1 | 1 | 1 | ||||||||||||||||
Average diluted common shares outstanding | 1,503 | 1,519 | 1,486 | 1,503 | ||||||||||||||||
Earnings per common share | $ | 1.45 | $ | .72 | $ | .99 | $ | 1.45 | ||||||||||||
Diluted earnings per common share | $ | 1.45 | $ | .72 | $ | .99 | $ | 1.45 |
(a) | Represents stock issuance costs originally recorded in preferred stock upon issuance of the Company’s Series I Preferred Stock that were reclassified to retained earnings on the date the Company announced its intent to redeem the outstanding shares. |
Note | Employee Benefits |
Three Months Ended March 31 | Three Months Ended March 31 | |||||||||||||||||||||||||||||||||||
Pension Plans | Postretirement Welfare Plan | Pension Plans | Postretirement Welfare Plan | |||||||||||||||||||||||||||||||||
(Dollars in Millions) | 2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||
Service cost | $ | 66 | $ | 59 | $ | — | $ | — | $ | 69 | $ | 66 | $ | — | $ | — | ||||||||||||||||||||
Interest cost | 55 | 58 | — | 1 | 61 | 55 | — | — | ||||||||||||||||||||||||||||
Expected return on plan assets | (112 | ) | (101 | ) | — | (1 | ) | (119 | ) | (112 | ) | — | — | |||||||||||||||||||||||
Prior service cost (credit) amortization | — | — | (1 | ) | (1 | ) | (1 | ) | — | — | (1 | ) | ||||||||||||||||||||||||
Actuarial loss (gain) amortization | 42 | 34 | (2 | ) | (2 | ) | 35 | 42 | (2 | ) | (2 | ) | ||||||||||||||||||||||||
Net periodic benefit cost (a) | $ | 51 | $ | 50 | $ | (3 | ) | $ | (3 | ) | $ | 45 | $ | 51 | $ | (2 | ) | $ | (3 | ) |
(a) | Service cost is included in employee benefits expense on the Consolidated Statement of Income. All other components are included in other noninterest expense on the Consolidated Statement of Income. |
Note | Income Taxes |
Three Months Ended March 31 | Three Months Ended March 31 | |||||||||||||||
(Dollars in Millions) | 2021 | 2020 | 2022 | 2021 | ||||||||||||
Federal | ||||||||||||||||
Current | $ | 353 | $ | 315 | $ | 404 | $ | 353 | ||||||||
Deferred | 130 | (106 | ) | (102 | ) | 130 | ||||||||||
Federal income tax | 483 | 209 | 302 | 483 | ||||||||||||
State | ||||||||||||||||
Current | 94 | 70 | 89 | 94 | ||||||||||||
Deferred | 30 | (19 | ) | 6 | 30 | |||||||||||
State income tax | 124 | 51 | 95 | 124 | ||||||||||||
Total income tax provision | $ | 607 | $ | 260 | $ | 397 | $ | 607 |
U.S. Bancorp | 53 |
Three Months Ended March 31 | Three Months Ended March 31 | |||||||||||||||
(Dollars in Millions) | 2021 | 2020 | 2022 | 2021 | ||||||||||||
Tax at statutory rate | $ | 607 | $ | 302 | $ | 411 | $ | 607 | ||||||||
State income tax, at statutory rates, net of federal tax benefit | 114 | 59 | 84 | 114 | ||||||||||||
Tax effect of | ||||||||||||||||
Tax credits and benefits, net of related expenses | (93 | ) | (102 | ) | (106 | ) | (93 | ) | ||||||||
Tax-exempt income | (28 | ) | (29 | ) | (28 | ) | (28 | ) | ||||||||
Other items | 7 | 30 | 36 | 7 | ||||||||||||
Applicable income taxes | $ | 607 | $ | 260 | $ | 397 | $ | 607 |
Note | Derivative Instruments |
54 | U.S. Bancorp |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Notional Value | Fair Value | Notional Value | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Notional Value | Fair Value | Weighted- Average Remaining Maturity In Years | Notional Value | Fair Value | Weighted- Average Remaining Maturity In Years | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receive fixed/pay floating swaps | $ | 6,600 | $ | – | 1.96 | $ | – | $ | – | – | $ | 2,250 | $ | — | $ | — | $ | 12,350 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pay fixed/receive floating swaps | – | – | – | 3,250 | – | 4.34 | 8,600 | — | — | 16,650 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net investment hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 781 | 10 | .05 | – | – | – | 807 | — | 7 | 793 | — | 4 | ||||||||||||||||||||||||||||||||||||||||||||
Other economic hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Futures and forwards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Buy | 6,044 | 31 | .06 | 11,179 | 107 | .10 | 16,432 | 54 | 179 | 9,322 | 10 | 16 | ||||||||||||||||||||||||||||||||||||||||||||
Sell | 30,218 | 349 | .19 | 9,364 | 66 | .04 | 12,509 | 193 | 60 | 29,348 | 25 | 27 | ||||||||||||||||||||||||||||||||||||||||||||
Options | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchased | 18,370 | 290 | 3.68 | – | – | – | 9,310 | 281 | — | 18,570 | 256 | — | ||||||||||||||||||||||||||||||||||||||||||||
Written | 4,373 | 109 | .12 | 6,740 | 300 | 2.33 | 10,783 | 15 | 165 | 9,662 | 52 | 231 | ||||||||||||||||||||||||||||||||||||||||||||
Receive fixed/pay floating swaps | 4,333 | – | 4.72 | 6,373 | – | 10.03 | 10,829 | — | — | 9,653 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Pay fixed/receive floating swaps | 3,379 | – | 4.20 | 4,389 | – | 4.85 | 13,666 | — | — | 7,033 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 270 | 1 | .06 | 344 | 2 | .04 | 647 | 1 | 5 | 735 | 2 | 6 | ||||||||||||||||||||||||||||||||||||||||||||
Equity contracts | 117 | – | .33 | 74 | 2 | .19 | 212 | 4 | 1 | 209 | 5 | — | ||||||||||||||||||||||||||||||||||||||||||||
Other (a) | 311 | 5 | .03 | 2,096 | 172 | 1.92 | 2,753 | 5 | 100 | 1,792 | — | 125 | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 74,796 | $ | 795 | $ | 43,809 | $ | 649 | $ | 88,798 | $ | 553 | $ | 517 | $ | 116,117 | $ | 350 | $ | 409 | ||||||||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receive fixed/pay floating swaps | $ | 8,400 | $ | – | 1.76 | $ | – | $ | – | – | ||||||||||||||||||||||||||||||||||||||||||||||
Pay fixed/receive floating swaps | – | – | – | 100 | – | 9.63 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pay fixed/receive floating swaps | – | – | – | 3,250 | – | 4.59 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 479 | – | .06 | 336 | 3 | .06 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other economic hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Futures and forwards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Buy | 16,431 | 73 | .50 | 1,925 | 5 | .07 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sell | 10,440 | 48 | .04 | 28,976 | 157 | .07 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Options | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchased | 11,610 | 121 | 4.11 | – | – | – | ||||||||||||||||||||||||||||||||||||||||||||||||||
Written | 5,073 | 202 | .13 | 7,770 | 198 | 2.53 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Receive fixed/pay floating swaps | 11,064 | – | 7.31 | 907 | – | 23.43 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pay fixed/receive floating swaps | 78 | – | 13.68 | 8,538 | – | 5.67 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 292 | 1 | .04 | 341 | 2 | .05 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity contracts | 127 | 3 | .39 | 45 | – | .46 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other (a) | 47 | 1 | .11 | 1,832 | 183 | 2.44 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 64,041 | $ | 449 | $ | 54,020 | $ | 548 |
(a) | Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common and preferred shares of Visa Inc. The Visa swap agreements had a total notional value and fair value |
55 |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Notional Value | Fair Value | Notional Value | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Notional Value | Fair Value | Weighted- Average Remaining Maturity In Years | Notional Value | Fair Value | Weighted- Average Remaining Maturity In Years | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receive fixed/pay floating swaps | $ | 121,392 | $ | 2,416 | 4.42 | $ | 40,305 | $ | 494 | 7.50 | $ | 189,323 | $ | 752 | $ | 2,028 | $ | 178,701 | $ | 2,007 | $ | 438 | ||||||||||||||||||||||||||||||||||
Pay fixed/receive floating swaps | 39,173 | 115 | 7.22 | 115,251 | 801 | 4.32 | 181,909 | 831 | 341 | 174,176 | 134 | 670 | ||||||||||||||||||||||||||||||||||||||||||||
Other (a) | 9,128 | 2 | 3.74 | 6,901 | 2 | 4.73 | 17,471 | 1 | 3 | 16,267 | 1 | 2 | ||||||||||||||||||||||||||||||||||||||||||||
Options | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchased | 80,134 | 204 | 1.32 | 1,465 | 31 | 2.71 | 87,564 | 667 | 2 | 89,679 | 194 | 36 | ||||||||||||||||||||||||||||||||||||||||||||
Written | 1,391 | 31 | 2.77 | 75,365 | 195 | 1.25 | 84,177 | 2 | 649 | 85,211 | 36 | 176 | ||||||||||||||||||||||||||||||||||||||||||||
Futures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Buy | 921 | – | .95 | 1,628 | – | 1.14 | 291 | — | — | 3,607 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Sell | 1,468 | – | 1.10 | 1,310 | – | .45 | 5,185 | — | — | 3,941 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange rate contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forwards, spots and swaps | 41,612 | 1,307 | 1.09 | 41,887 | 1,284 | 1.25 | 102,688 | 1,468 | 1,473 | 89,321 | 1,145 | 1,143 | ||||||||||||||||||||||||||||||||||||||||||||
Options | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchased | 650 | 23 | .98 | – | – | – | 910 | 25 | — | 805 | 19 | — | ||||||||||||||||||||||||||||||||||||||||||||
Written | – | – | – | 650 | 20 | .98 | 910 | — | 25 | 805 | — | 19 | ||||||||||||||||||||||||||||||||||||||||||||
Credit contracts | 2,906 | 1 | 2.68 | 7,495 | 10 | 4.45 | 9,537 | 1 | 10 | 9,331 | 1 | 5 | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 298,775 | $ | 4,099 | $ | 292,257 | $ | 2,837 | $ | 679,965 | $ | 3,747 | $ | 4,531 | $ | 651,844 | $ | 3,537 | $ | 2,489 | ||||||||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receive fixed/pay floating swaps | $ | 144,859 | $ | 3,782 | 4.93 | $ | 12,027 | $ | 99 | 8.72 | ||||||||||||||||||||||||||||||||||||||||||||||
Pay fixed/receive floating swaps | 15,048 | 2 | 8.43 | 134,963 | 1,239 | 4.71 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other (a) | 9,921 | 6 | 3.75 | 6,387 | 3 | 4.22 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Options | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchased | 72,655 | 111 | 1.40 | 1,454 | 46 | 2.96 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Written | 1,736 | 46 | 2.76 | 68,205 | 81 | 1.25 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Futures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Buy | 1,851 | – | 1.22 | 924 | – | .05 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sell | – | – | – | 4,090 | – | .72 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange rate contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forwards, spots and swaps | 44,845 | 1,590 | .96 | 45,992 | 1,565 | 1.13 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Options | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchased | 519 | 14 | .90 | – | – | – | ||||||||||||||||||||||||||||||||||||||||||||||||||
Written | – | – | – | 519 | 14 | .90 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Credit contracts | 2,876 | 1 | 2.75 | 7,479 | 7 | 3.81 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 294,310 | $ | 5,552 | $ | 282,040 | $ | 3,054 |
(a) | Primarily represents floating rate interest rate swaps that pay based on differentials between specified interest rate indexes. |
Gains (Losses) Recognized in Other Comprehensive Income (Loss) | Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings | Gains (Losses) Recognized in Other Comprehensive Income (Loss) | Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings | ||||||||||||||||||||||||||||||||||
(Dollars in Millions) | 2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Asset and Liability Management Positions | |||||||||||||||||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 74 | $ | (192 | ) | $ | (3 | ) | $ | (10 | ) | $ | — | $ | 74 | $ | (8 | ) | $ | (3 | ) | ||||||||||||||||
Net investment hedges | |||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 7 | 16 | – | – | (1 | ) | 7 | — | — | ||||||||||||||||||||||||||||
Non-derivative debt instruments | 48 | 25 | – | – | 20 | 48 | — | — |
Note: | The Company does not exclude components from effectiveness testing for cash flow and net investment hedges. |
Interest Income | Interest Expense | Interest Income | Interest Expense | |||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | 2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
Total amount of income and expense line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded | $ | 3,341 | $ | 4,116 | $ | 278 | $ | 893 | $ | 3,418 | $ | 3,341 | $ | 245 | $ | 278 | ||||||||||||||||||||||||
Asset and Liability Management Positions | ||||||||||||||||||||||||||||||||||||||||
Fair value hedges | ||||||||||||||||||||||||||||||||||||||||
Interest rate contract derivatives | (1 | ) | – | 55 | (1,035 | ) | 517 | (1 | ) | 72 | 55 | |||||||||||||||||||||||||||||
Hedged items | 1 | – | (55 | ) | 1,028 | (518 | ) | 1 | (71 | ) | (55 | ) | ||||||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||||||||||||||||||
Interest rate contract derivatives | – | – | 4 | 13 | — | — | 11 | 4 |
Note: | The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company reclassified losses of $11 million and $15 million into earnings during the three months ended March 31, 2022 and 2021, respectively, as a result of |
56 | U.S. Bancorp |
Carrying Amount of the Hedged Assets and Liabilities | Cumulative Hedging Adjustment (a) | Carrying Amount of the Hedged Assets and Liabilities | Cumulative Hedging Adjustment (a) | |||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | March 31, 2021 | December 31, 2020 | March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||
At December 31 (Dollars in Millions) | March 31, 2022 | December 31, 2021 | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||
Line Item in the Consolidated Balance Sheet | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale | $ | – | $ | 99 | $ | (4 | ) | $ | (1 | ) | $ | 7,962 | $ | 16,445 | $ | (579 | ) | $ | (26 | ) | ||||||||||||||||||||
Long-term debt | 6,713 | 8,567 | 800 | 903 | 2,148 | 12,278 | 382 | 585 |
(a) | available-for-sale (40 ) million and $509 million, respectively, at March 31, 2022, compared with $(6) million and $640 million at December 31, |
(Dollars in Millions) | Location of Gains (Losses) Recognized in Earnings | 2021 | 2020 | Location of Gains (Losses) Recognized in Earnings | 2022 | 2021 | ||||||||||||||||||
Asset and Liability Management Positions | ||||||||||||||||||||||||
Other economic hedges | ||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||
Futures and forwards | Mortgage banking revenue/ other noninterest income | $ | 430 | $ | (75 | ) | Mortgage banking revenue | $ | 223 | $ | 430 | |||||||||||||
Purchased and written options | Mortgage banking revenue | 12 | 280 | Mortgage banking revenue | (47 | ) | 12 | |||||||||||||||||
Swaps | Mortgage banking revenue | (390 | ) | 729 | Mortgage banking revenue | (204 | ) | (390 | ) | |||||||||||||||
Foreign exchange forward contracts | Other noninterest income | (3 | ) | 17 | Other noninterest income | (3 | ) | (3 | ) | |||||||||||||||
Equity contracts | Compensation expense | 4 | (4 | ) | Compensation expense | (2 | ) | 4 | ||||||||||||||||
Other | Other noninterest income | – | (1 | ) | Other noninterest income | (1 | ) | — | ||||||||||||||||
Customer-Related Positions | ||||||||||||||||||||||||
Customer-Related Position s | ||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||
Swaps | Commercial products revenue | 27 | (22 | ) | Commercial products revenue | 17 | 27 | |||||||||||||||||
Purchased and written options | Commercial products revenue | (7 | ) | 17 | Commercial products revenue | 4 | (7 | ) | ||||||||||||||||
Futures | Commercial products revenue | – | (18 | ) | Commercial products revenue | 16 | — | |||||||||||||||||
Foreign exchange rate contracts | ||||||||||||||||||||||||
Forwards, spots and swaps | Commercial products revenue | 19 | 17 | Commercial products revenue | 15 | 19 | ||||||||||||||||||
Purchased and written options | Commercial products revenue | – | – | |||||||||||||||||||||
Credit contracts | Commercial products revenue | 2 | 18 | Commercial products revenue | 5 | 2 |
Note | Netting Arrangements for Certain Financial Instruments and Securities Financing Activities | |
U.S. Bancorp | 57 |
58 |
(Dollars in Millions) | Overnight and Continuous | Less Than 30 Days | 30-89 Days | Greater Than 90 Days | Total | Overnight and Continuous | Less Than 30 Days | 30-89 Days | Greater Than 90 Days | Total | ||||||||||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||
Repurchase agreements | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agencies | $ | 272 | $ | – | $ | – | $ | – | $ | 272 | $ | 499 | $ | – | $ | – | $ | – | $ | 499 | ||||||||||||||||||||
Residential agency mortgage-backed securities | 588 | – | – | – | 588 | 843 | – | – | – | 843 | ||||||||||||||||||||||||||||||
Corporate debt securities | 814 | – | – | – | 814 | 537 | – | – | – | 537 | ||||||||||||||||||||||||||||||
Total repurchase agreements | 1,674 | – | – | – | 1,674 | 1,879 | – | – | – | 1,879 | ||||||||||||||||||||||||||||||
Securities loaned | ||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 230 | – | – | – | 230 | 70 | – | – | – | 70 | ||||||||||||||||||||||||||||||
Total securities loaned | 230 | – | – | – | 230 | 70 | – | – | – | 70 | ||||||||||||||||||||||||||||||
Gross amount of recognized liabilities | $ | 1,904 | $ | – | $ | – | $ | – | $ | 1,904 | $ | 1,949 | $ | – | $ | – | $ | – | $ | 1,949 | ||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Repurchase agreements | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agencies | $ | 472 | $ | – | $ | – | $ | – | $ | 472 | $ | 378 | $ | – | $ | – | $ | – | $ | 378 | ||||||||||||||||||||
Residential agency mortgage-backed securities | 398 | – | – | – | 398 | 551 | – | – | – | 551 | ||||||||||||||||||||||||||||||
Corporate debt securities | 560 | – | – | – | 560 | 646 | – | – | – | 646 | ||||||||||||||||||||||||||||||
Total repurchase agreements | 1,430 | – | – | – | 1,430 | 1,575 | – | – | – | 1,575 | ||||||||||||||||||||||||||||||
Securities loaned | ||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 218 | – | – | – | 218 | 169 | – | – | – | 169 | ||||||||||||||||||||||||||||||
Total securities loaned | 218 | – | – | – | 218 | 169 | – | – | – | 169 | ||||||||||||||||||||||||||||||
Gross amount of recognized liabilities | $ | 1,648 | $ | – | $ | – | $ | – | $ | 1,648 | $ | 1,744 | $ | – | $ | – | $ | – | $ | 1,744 |
(Dollars in Millions) | Gross Recognized Assets | Gross Amounts Offset on the Consolidated Balance Sheet (a) | Net Amounts Presented on the Consolidated Balance Sheet | Gross Amounts Not Offset on the Consolidated Balance Sheet | Net Amount | Gross Recognized Assets | Gross Amounts Offset on the Consolidated Balance Sheet (a) | Net Amounts Presented on the Consolidated Balance Sheet | Gross Amounts Not Offset on the Consolidated Balance Sheet | Net Amount | ||||||||||||||||||||||||||||||||||||||
Financial Instruments (b) | Collateral Received (c) | Financial Instruments (b) | Collateral Received (c) | |||||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets (d) | $ | 4,776 | $ | (1,938 | ) | $ | 2,838 | $ | (159 | ) | $ | (147 | ) | $ | 2,532 | $ | 4,279 | $ | (2,313 | ) | $ | 1,966 | $ | (168 | ) | $ | (24 | ) | $ | 1,774 | ||||||||||||||||||
Reverse repurchase agreements | 403 | – | 403 | (207 | ) | (196 | ) | – | 506 | – | 506 | (405 | ) | (101 | ) | – | ||||||||||||||||||||||||||||||||
Securities borrowed | 1,915 | – | 1,915 | – | (1,862 | ) | 53 | 1,452 | – | 1,452 | – | (1,412 | ) | 40 | ||||||||||||||||||||||||||||||||||
Total | $ | 7,094 | $ | (1,938 | ) | $ | 5,156 | $ | (366 | ) | $ | (2,205 | ) | $ | 2,585 | $ | 6,237 | $ | (2,313 | ) | $ | 3,924 | $ | (573 | ) | $ | (1,537 | ) | $ | 1,814 | ||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets (d) | $ | 5,744 | $ | (1,874 | ) | $ | 3,870 | $ | (109 | ) | $ | (287 | ) | $ | 3,474 | $ | 3,830 | $ | (1,609 | ) | $ | 2,221 | $ | (142 | ) | $ | (106 | ) | $ | 1,973 | ||||||||||||||||||
Reverse repurchase agreements | 377 | – | 377 | (262 | ) | (115 | ) | – | 359 | – | 359 | (249 | ) | (110 | ) | – | ||||||||||||||||||||||||||||||||
Securities borrowed | 1,716 | – | 1,716 | – | (1,670 | ) | 46 | 1,868 | – | 1,868 | – | (1,818 | ) | 50 | ||||||||||||||||||||||||||||||||||
Total | $ | 7,837 | $ | (1,874 | ) | $ | 5,963 | $ | (371 | ) | $ | (2,072 | ) | $ | 3,520 | $ | 6,057 | $ | (1,609 | ) | $ | 4,448 | $ | (391 | ) | $ | (2,034 | ) | $ | 2,023 |
(a) | Includes |
(b) | For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any repurchase agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in the event of counterparty default. |
(c) | Includes the fair value of securities received by the Company from the counterparty. These securities are not included on the Consolidated Balance Sheet unless the counterparty defaults. |
(d) | Excludes |
59 |
(Dollars in Millions) | Gross Recognized Liabilities | Gross Amounts Offset on the Consolidated Balance Sheet (a) | Net Amounts Presented on the Consolidated Balance Sheet | Gross Amounts Not Offset on the Consolidated Balance Sheet | Net Amount | Gross Recognized Assets | Gross Amounts Offset on the Consolidated Balance Sheet (a) | Net Amounts Presented on the Consolidated Balance Sheet | Gross Amounts Not Offset on the Consolidated Balance Sheet | Net Amount | ||||||||||||||||||||||||||||||||||||||
Financial Instruments (b) | Collateral Pledged (c) | Financial Instruments (b) | Collateral Received (c) | |||||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities (d) | $ | 3,280 | $ | (2,084 | ) | $ | 1,196 | $ | (159 | ) | $ | – | $ | 1,037 | $ | 4,908 | $ | (2,084 | ) | $ | 2,824 | $ | (168 | ) | $ | – | $ | 2,656 | ||||||||||||||||||||
Repurchase agreements | 1,674 | — | 1,674 | (207 | ) | (1,465 | ) | 2 | 1,879 | – | 1,879 | (405 | ) | (1,474 | ) | – | ||||||||||||||||||||||||||||||||
Securities loaned | 230 | — | 230 | — | (227 | ) | 3 | 70 | – | 70 | – | (69 | ) | 1 | ||||||||||||||||||||||||||||||||||
Total | $ | 5,184 | $ | (2,084 | ) | $ | 3,100 | $ | (366 | ) | $ | (1,692 | ) | $ | 1,042 | $ | 6,857 | $ | (2,084 | ) | $ | 4,773 | $ | (573 | ) | $ | (1,543 | ) | $ | 2,657 | ||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities (d) | $ | 3,419 | $ | (2,312 | ) | $ | 1,107 | $ | (109 | ) | $ | – | $ | 998 | $ | 2,761 | $ | (1,589 | ) | $ | 1,172 | $ | (142 | ) | $ | – | $ | 1,030 | ||||||||||||||||||||
Repurchase agreements | 1,430 | — | 1,430 | (262 | ) | (1,168 | ) | — | 1,575 | – | 1,575 | (249 | ) | (1,326 | ) | – | ||||||||||||||||||||||||||||||||
Securities loaned | 218 | — | 218 | — | (215 | ) | 3 | 169 | – | 169 | – | (167 | ) | 2 | ||||||||||||||||||||||||||||||||||
Total | $ | 5,067 | $ | (2,312 | ) | $ | 2,755 | $ | (371 | ) | $ | (1,383 | ) | $ | 1,001 | $ | 4,505 | $ | (1,589 | ) | $ | 2,916 | $ | (391 | ) | $ | (1,493 | ) | $ | 1,032 |
(a) | Includes |
(b) | For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse repurchase agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be offset in the event of counterparty default. |
(c) | Includes the fair value of securities pledged by the Company to the counterparty. These securities are included on the Consolidated Balance Sheet unless the Company defaults. |
(d) | Excludes |
Note | Fair Values of Assets and Liabilities |
60 |
61 |
Minimum | Maximum | Weighted- average (a) | Minimum | Maximum | Weighted- Average (a) | |||||||||||||||||||
Expected prepayment | 4 | % | 15 | % | 10 | % | 7 | % | 12 | % | 9 | % | ||||||||||||
Option adjusted spread | 6 | 11 | 7 | 5 | 11 | 6 |
(a) | Determined based on the relative fair value of the related mortgage loans serviced. |
Minimum | Maximum | Weighted- average (a) | Minimum | Maximum | Weighted- Average (a) | |||||||||||||||||||
Expected loan close rate | 4 | % | 100 | % | 76 | % | 6 | % | 100 | % | 82 | % | ||||||||||||
Inherent MSR value (basis points per loan) | 53 | 201 | 123 | 38 | 207 | 110 |
(a) | Determined based on the relative fair value of the related mortgage loans. |
62 |
(Dollars in Millions) | Level 1 | Level 2 | Level 3 | Netting | Total | Level 1 | Level 2 | Level 3 | Netting | Total | ||||||||||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agencies | $ | 21,406 | $ | 2,911 | $ | – | $ | – | $ | 24,317 | $ | 20,924 | $ | 5,426 | $ | – | $ | – | $ | 26,350 | ||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||||||||||||
Residential agency | – | 116,176 | – | – | 116,176 | – | 78,992 | – | – | 78,992 | ||||||||||||||||||||||||||||||
Commercial agency | – | 6,086 | – | – | 6,086 | – | 7,963 | – | – | 7,963 | ||||||||||||||||||||||||||||||
Asset-backed securities | – | 195 | 7 | – | 202 | – | – | 7 | – | 7 | ||||||||||||||||||||||||||||||
Obligations of state and political subdivisions | – | 9,214 | 1 | – | 9,215 | – | 10,273 | 1 | – | 10,274 | ||||||||||||||||||||||||||||||
Other | – | 7 | – | – | 7 | – | 7 | – | – | 7 | ||||||||||||||||||||||||||||||
Total available-for-sale | 21,406 | 134,589 | 8 | – | 156,003 | 20,924 | 102,661 | 8 | – | 123,593 | ||||||||||||||||||||||||||||||
Mortgage loans held for sale | – | 8,869 | – | – | 8,869 | – | 2,203 | – | – | 2,203 | ||||||||||||||||||||||||||||||
Mortgage servicing rights | – | – | 2,787 | – | 2,787 | – | – | 3,432 | – | 3,432 | ||||||||||||||||||||||||||||||
Derivative assets | 7 | 3,066 | 1,821 | (1,938 | ) | 2,956 | 5 | 3,385 | 910 | (2,313 | ) | 1,987 | ||||||||||||||||||||||||||||
Other assets | 120 | 2,029 | – | – | 2,149 | 256 | 1,589 | – | – | 1,845 | ||||||||||||||||||||||||||||||
Total | $ | 21,533 | $ | 148,553 | $ | 4,616 | $ | (1,938 | ) | $ | 172,764 | $ | 21,185 | $ | 109,838 | $ | 4,350 | $ | (2,313 | ) | $ | 133,060 | ||||||||||||||||||
Derivative liabilities | $ | – | $ | 2,821 | $ | 665 | $ | (2,084 | ) | $ | 1,402 | $ | – | $ | 3,127 | $ | 1,921 | $ | (2,084 | ) | $ | 2,964 | ||||||||||||||||||
Short-term borrowings and other liabilities (a) | 199 | 1,890 | – | – | 2,089 | 215 | 1,429 | – | – | 1,644 | ||||||||||||||||||||||||||||||
Total | $ | 199 | $ | 4,711 | $ | 665 | $ | (2,084 | ) | $ | 3,491 | $ | 215 | $ | 4,556 | $ | 1,921 | $ | (2,084 | ) | $ | 4,608 | ||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agencies | $ | 19,251 | $ | 3,140 | $ | – | $ | – | $ | 22,391 | $ | 30,917 | $ | 5,692 | $ | – | $ | – | $ | 36,609 | ||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||||||||||||||||
Residential agency | – | 99,968 | – | – | 99,968 | |||||||||||||||||||||||||||||||||||
Residential agenc y | – | 77,079 | – | – | 77,079 | |||||||||||||||||||||||||||||||||||
Commercial agency | – | 5,406 | – | – | 5,406 | – | 8,485 | – | – | 8,485 | ||||||||||||||||||||||||||||||
Asset-backed securities | – | 198 | 7 | – | 205 | – | 59 | 7 | – | 66 | ||||||||||||||||||||||||||||||
Obligations of state and political subdivisions | – | 8,860 | 1 | – | 8,861 | – | 10,716 | 1 | – | 10,717 | ||||||||||||||||||||||||||||||
Other | – | 9 | – | – | 9 | – | 7 | – | – | 7 | ||||||||||||||||||||||||||||||
Total available-for-sale | 19,251 | 117,581 | 8 | – | 136,840 | 30,917 | 102,038 | 8 | – | 132,963 | ||||||||||||||||||||||||||||||
Mortgage loans held for sale | – | 8,524 | – | – | 8,524 | – | 6,623 | – | – | 6,623 | ||||||||||||||||||||||||||||||
Mortgage servicing rights | – | – | 2,210 | – | 2,210 | – | – | 2,953 | – | 2,953 | ||||||||||||||||||||||||||||||
Derivative assets | 4 | 3,235 | 2,762 | (1,874 | ) | 4,127 | 8 | 2,490 | 1,389 | (1,609 | ) | 2,278 | ||||||||||||||||||||||||||||
Other assets | 302 | 1,601 | – | – | 1,903 | 278 | 1,921 | – | – | 2,199 | ||||||||||||||||||||||||||||||
Total | $ | 19,557 | $ | 130,941 | $ | 4,980 | $ | (1,874 | ) | $ | 153,604 | $ | 31,203 | $ | 113,072 | $ | 4,350 | $ | (1,609 | ) | $ | 147,016 | ||||||||||||||||||
Derivative liabilities | $ | – | $ | 3,166 | $ | 436 | $ | (2,312 | ) | $ | 1,290 | $ | – | $ | 2,308 | $ | 590 | $ | (1,589 | ) | $ | 1,309 | ||||||||||||||||||
Short-term borrowings and other liabilities (a) | 85 | 1,672 | – | – | 1,757 | 209 | 1,837 | – | – | 2,046 | ||||||||||||||||||||||||||||||
Total | $ | 85 | $ | 4,838 | $ | 436 | $ | (2,312 | ) | $ | 3,047 | $ | 209 | $ | 4,145 | $ | 590 | $ | (1,589 | ) | $ | 3,355 |
Note: | Excluded from the table above are equity investments without readily determinable fair values. The Company has elected to carry these investments at historical cost, adjusted for impairment and any changes resulting from observable price changes for identical or similar investments of the issuer. The aggregate carrying amount of these equity investments was |
(a) | Primarily represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance. |
63 |
(Dollars in Millions) | Beginning of Period Balance | Net Gains (Losses) Included in Net Income | Net Gains (Losses) Included in Other Comprehensive Income (Loss) | Purchases | Sales | Issuances | Settlements | End of Period Balance | Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period | |||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | 7 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 7 | $ | – | ||||||||||||||||||
Obligations of state and political subdivisions | 1 | – | – | – | – | – | – | 1 | – | |||||||||||||||||||||||||||
Total available-for-sale | 8 | – | – | – | – | – | – | 8 | – | |||||||||||||||||||||||||||
Mortgage servicing rights | 2,210 | 242 | (a) | – | 16 | – | 319 | (c) | – | 2,787 | 242 | (a) | ||||||||||||||||||||||||
Net derivative assets and liabilities | 2,326 | (935 | ) (b) | – | 2 | – | – | (237 | ) | 1,156 | (900 | ) (d) | ||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | 8 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 8 | $ | – | ||||||||||||||||||
Obligations of state and political subdivisions | 1 | – | 1 | – | – | – | – | 2 | 1 | |||||||||||||||||||||||||||
Total available-for-sale | 9 | – | 1 | – | – | – | – | 10 | 1 | |||||||||||||||||||||||||||
Mortgage servicing rights | 2,546 | (866 | ) (a) | – | 5 | 1 | 201 | (c) | – | 1,887 | (866 | ) (a) | ||||||||||||||||||||||||
Net derivative assets and liabilities | 810 | 1,742 | (e) | – | 4 | – | – | (60 | ) | 2,496 | 1,726 | (f) |
(Dollars in Millions) | Beginning of Period Balance | Net Gains (Losses) Included in Net Income | Purchases | Sales | Issuances | Settlements | End of Period Balance | Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period | ||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||
Asset-backed securities | $ | 7 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 7 | $ | – | ||||||||||||||||
Obligations of state and political subdivisions | 1 | – | – | – | – | – | 1 | – | ||||||||||||||||||||||||
Total available-for-sale | 8 | – | – | – | – | – | 8 | – | ||||||||||||||||||||||||
Mortgage servicing rights | 2,953 | 238 | (a) | 3 | 1 | 237 | (c) | – | 3,432 | 238 | (a) | |||||||||||||||||||||
Net derivative assets and liabilities | �� | 799 | (1,867 | ) (b) | 11 | (1 | ) | – | $ | 47 | (1,011 | ) | (1,697 | ) (d) | ||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||
Asset-backed securities | $ | 7 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 7 | $ | – | ||||||||||||||||
Obligations of state and political subdivisions | 1 | – | – | – | – | – | 1 | – | ||||||||||||||||||||||||
Total available-for-sale | 8 | – | – | – | – | – | 8 | – | ||||||||||||||||||||||||
Mortgage servicing rights | 2,210 | 242 | (a) | 16 | – | 319 | (c) | – | 2,787 | 242 | (a) | |||||||||||||||||||||
Net derivative assets and liabilities | 2,326 | (935 | ) (e) | 2 | – | – | (237 | ) | 1,156 | (900 | ) (f) |
(a) | Included in mortgage banking revenue. |
(b) | Approximately |
(c) | Represents MSRs capitalized during the period. |
(d) | Approximately $(24) million, |
Approximately |
(f) | Approximately $78 million included in mortgage banking revenue and |
March 31, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans (a) | $ | – | $ | – | $ | 81 | $ | 81 | $ | – | $ | – | $ | 385 | $ | 385 | $ | – | $ | – | $ | 28 | $ | 28 | $ | – | $ | – | $ | 59 | $ | 59 | ||||||||||||||||||||||||||||||||||||
Other assets (b) | – | – | 9 | 9 | – | – | 30 | 30 | – | – | 3 | 3 | – | – | 77 | 77 |
(a) | Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off. |
(b) | Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition. |
(Dollars in Millions) | 2021 | 2020 | 2022 | 2021 | ||||||||||||
Loans (a) | $ | 31 | $ | 5 | $ | 11 | $ | 31 | ||||||||
Other assets (b) | 1 | 3 | 1 | 1 |
(a) | Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off. |
(b) | Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition. |
64 |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||
(Dollars in Millions) | Fair Value Carrying Amount | Aggregate Unpaid Principal | Carrying Amount Over (Under) Unpaid Principal | Fair Value Carrying Amount | Aggregate Unpaid Principal | Carrying Amount Over (Under) Unpaid Principal | ||||||||||||||||||||||
Total loans | $ | 8,869 | $ | 8,685 | $ | 184 | $ | 8,524 | $ | 8,136 | $ | 388 | ||||||||||||||||
Nonaccrual loans | 1 | 1 | – | 1 | 1 | – | ||||||||||||||||||||||
Loans 90 days or more past due | 1 | 1 | – | 2 | 2 | – |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||
(Dollars in Millions) | Fair Value Carrying Amount | Aggregate Unpaid Principal | Carrying Amount Over (Under) Unpaid Principal | Fair Value Carrying Amount | Aggregate Unpaid Principal | Carrying Amount Over (Under) Unpaid Principal | ||||||||||||||||||||||
Total loans | $ | 2,203 | $ | 2,200 | $ | 3 | $ | 6,623 | $ | 6,453 | $ | 170 | ||||||||||||||||
Nonaccrual loans | 1 | 1 | – | 1 | 1 | – | ||||||||||||||||||||||
Loans 90 days or more past due | 2 | 2 | – | 2 | 2 | – |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 43,501 | $ | 43,501 | $ | – | $ | – | $ | 43,501 | $ | 62,580 | $ | 62,580 | $ | – | $ | – | $ | 62,580 | ||||||||||||||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 403 | – | 403 | – | 403 | 377 | – | 377 | – | 377 | ||||||||||||||||||||||||||||||||||||||||||
Loans held for sale (a) | 122 | – | – | 122 | 122 | 237 | – | – | 237 | 237 | ||||||||||||||||||||||||||||||||||||||||||
Loans | 288,084 | – | – | 296,703 | 296,703 | 290,393 | – | – | 300,419 | 300,419 | ||||||||||||||||||||||||||||||||||||||||||
Other (b) | 1,877 | – | 899 | 978 | 1,877 | 1,772 | – | 731 | 1,041 | 1,772 | ||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Time deposits | 23,711 | – | 23,834 | – | 23,834 | 30,694 | – | 30,864 | – | 30,864 | ||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings (c) | 10,009 | – | 9,963 | – | 9,963 | 10,009 | – | 9,956 | – | 9,956 | ||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 37,419 | – | 38,086 | – | 38,086 | 41,297 | – | 42,485 | – | 42,485 | ||||||||||||||||||||||||||||||||||||||||||
Other (d) | 3,905 | – | 1,175 | 2,730 | 3,905 | 4,052 | – | 1,234 | 2,818 | 4,052 |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 44,303 | $ | 44,303 | $ | – | $ | – | $ | 44,303 | $ | 28,905 | $ | 28,905 | $ | – | $ | – | $ | 28,905 | ||||||||||||||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 513 | – | 513 | – | 513 | 359 | – | 359 | – | 359 | ||||||||||||||||||||||||||||||||||||||||||
Investment securities held-to-maturity | 43,654 | – | 40,572 | – | 40,572 | 41,858 | – | 41,812 | – | 41,812 | ||||||||||||||||||||||||||||||||||||||||||
Loans held for sale (a) | 1,118 | – | – | 1,118 | 1,118 | 1,152 | – | – | 1,152 | 1,152 | ||||||||||||||||||||||||||||||||||||||||||
Loans | 313,270 | – | – | 311,120 | 311,120 | 306,304 | – | – | 312,724 | 312,724 | ||||||||||||||||||||||||||||||||||||||||||
Other (b) | 1,941 | – | 1,129 | 812 | 1,941 | 1,521 | – | 630 | 891 | 1,521 | ||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Time deposits | 24,304 | – | 23,952 | – | 23,952 | 22,665 | – | 22,644 | – | 22,644 | ||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings (c) | 19,398 | – | 19,140 | – | 19,140 | 9,750 | – | 9,646 | – | 9,646 | ||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 32,931 | – | 32,228 | – | 32,228 | 32,125 | – | 32,547 | – | 32,547 | ||||||||||||||||||||||||||||||||||||||||||
Other (d) | 3,797 | – | 1,151 | 2,646 | 3,797 | 3,862 | – | 1,170 | 2,692 | 3,862 |
(a) | Excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected. |
(b) | Includes investments in Federal Reserve Bank and Federal Home Loan Bank stock and tax-advantaged investments. |
(c) | Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance. |
(d) | Includes operating lease liabilities and liabilities related to tax-advantaged investments. |
Note | Guarantees and Contingent Liabilities |
U.S. Bancorp | 65 |
The following table is a summary of other guarantees and contingent liabilities of the Company at March 31, 2021: | ||||||||||||||||||||||||
(Dollars in Millions) | Collateral Held | Carrying Amount | Maximum Potential Future Payments | Collateral Held | Carrying Amount | Maximum Potential Future Payments | ||||||||||||||||||
Standby letters of credit | $ | – | $ | 68 | $ | 9,789 | $ | – | $ | 55 | $ | 9,705 | ||||||||||||
Third party borrowing arrangements | – | – | 3 | – | – | 6 | ||||||||||||||||||
Securities lending indemnifications | 8,254 | – | 8,106 | 10,342 | – | 9,933 | ||||||||||||||||||
Asset sales | – | 82 | 6,132 | (a) | – | 85 | 7,382 | (a) | ||||||||||||||||
Merchant processing | 559 | 179 | 91,183 | 968 | 106 | 121,205 | ||||||||||||||||||
Tender option bond program guarantee | 1,720 | – | 1,493 | 1,615 | – | 1,488 | ||||||||||||||||||
Other | – | 27 | 1,214 | – | 21 | 1,331 |
(a) | The maximum potential future payments do not include loan sales where the Company provides standard representation and warranties to the buyer against losses related to loan underwriting documentation defects that may have existed at the time of sale that generally are identified after the occurrence of a triggering event such as delinquency. For these types of loan sales, the maximum potential future payments is generally the unpaid principal balance of loans sold measured at the end of the current reporting period. Actual losses will be significantly less than the maximum exposure, as only a fraction of loans sold will have a representation and warranty breach, and any losses on repurchase would generally be mitigated by any collateral held against the loans. |
66 | U.S. Bancorp |
U.S. Bancorp | 67 |
Note | Business Segments |
68 | U.S. Bancorp |
Corporate and Commercial Banking | Consumer and Business Banking | Wealth Management and Investment Services | Corporate and Commercial Banking | Consumer and Business Banking | Wealth Management and Investment Services | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Income Statement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (taxable-equivalent basis) | $ | 666 | $ | 784 | $ | 1,625 | $ | 1,531 | $ | 204 | $ | 284 | $ | 735 | $ | 719 | $ | 1,517 | $ | 1,505 | $ | 274 | $ | 268 | ||||||||||||||||||||||||||||||||||||||||
Noninterest income | 259 | 271 | 617 | 757 | 492 | 466 | 245 | 268 | 461 | 569 | 596 | 531 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net revenue | 925 | 1,055 | 2,242 | 2,288 | 696 | 750 | 980 | 987 | 1,978 | 2,074 | 870 | 799 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest expense | 406 | 443 | 1,388 | 1,336 | 459 | 449 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other intangibles | – | – | 3 | 4 | 2 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total noninterest expense | 406 | 443 | 1,391 | 1,340 | 461 | 452 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nointerest expense | 419 | 409 | 1,405 | 1,344 | 587 | 494 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before provision and income taxes | 519 | 612 | 851 | 948 | 235 | 298 | 561 | 578 | 573 | 730 | 283 | 305 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | (40 | ) | 424 | (44 | ) | 123 | 7 | 23 | 3 | (48 | ) | 49 | (37 | ) | 8 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 559 | 188 | 895 | 825 | 228 | 275 | 558 | 626 | 524 | 767 | 275 | 300 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes and taxable-equivalent adjustment | 140 | 47 | 224 | 206 | 57 | 69 | 140 | 157 | 131 | 192 | 69 | 75 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 419 | 141 | 671 | 619 | 171 | 206 | 418 | 469 | 393 | 575 | 206 | 225 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | – | – | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to U.S. Bancorp | $ | 419 | $ | 141 | $ | 671 | $ | 619 | $ | 171 | $ | 206 | $ | 418 | $ | 469 | $ | 393 | $ | 575 | $ | 206 | $ | 225 | ||||||||||||||||||||||||||||||||||||||||
Average Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | $ | 94,872 | $ | 103,368 | $ | 153,177 | $ | 146,718 | $ | 12,443 | $ | 10,608 | $ | 115,634 | $ | 101,927 | $ | 141,106 | $ | 141,719 | $ | 20,666 | $ | 16,846 | ||||||||||||||||||||||||||||||||||||||||
Other earning assets | 4,308 | 4,555 | 10,203 | 4,967 | 279 | 281 | 4,676 | 4,321 | 4,381 | 10,177 | 259 | 279 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 1,647 | 1,647 | 3,475 | 3,574 | 1,619 | 1,617 | 1,912 | 1,647 | 3,261 | 3,475 | 1,761 | 1,619 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets | 5 | 7 | 2,491 | 2,411 | 42 | 44 | 4 | 5 | 3,176 | 2,493 | 265 | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | 107,022 | 115,308 | 175,541 | 161,886 | 15,662 | 13,950 | 127,651 | 114,069 | 157,696 | 164,131 | 24,446 | 20,120 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 51,020 | 29,370 | 39,186 | 27,866 | 20,277 | 13,232 | 62,285 | 56,281 | 32,094 | 32,861 | 27,350 | 21,338 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 67,750 | 80,657 | 166,876 | 133,718 | 71,629 | 68,842 | 86,618 | 71,377 | 166,765 | 151,406 | 69,909 | 83,474 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits | 118,770 | 110,027 | 206,062 | 161,584 | 91,906 | 82,074 | 148,903 | 127,658 | 198,859 | 184,267 | 97,259 | 104,812 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total U.S. Bancorp shareholders’ equity | 13,074 | 14,182 | 13,453 | 13,422 | 2,634 | 2,571 | 13,710 | 14,354 | 12,275 | 12,496 | 3,595 | 3,034 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment Services | Treasury and Corporate Support | Consolidated Company | Payment Services | Treasury and Corporate Support | Consolidated Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Income Statement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (taxable-equivalent basis) | $ | 628 | $ | 661 | $ | (34 | ) | $ | (13 | ) | $ | 3,089 | $ | 3,247 | $ | 622 | $ | 629 | $ | 52 | $ | (32 | ) | $ | 3,200 | $ | 3,089 | |||||||||||||||||||||||||||||||||||||
Noninterest income | 785 | (a) | 794 | (a) | 228 | 237 | 2,381 | (b) | 2,525 | (b) | 858 | (a) | 785 | (a) | 236 | 228 | 2,396 | (b) | 2,381 | (b) | ||||||||||||||||||||||||||||||||||||||||||||
Total net revenue | 1,413 | 1,455 | 194 | 224 | 5,470 | (c) | 5,772 | (c) | 1,480 | 1,414 | 288 | 196 | 5,596 | (c) | 5,470 | (c) | ||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest expense | 782 | 754 | 306 | 292 | 3,341 | 3,274 | 854 | 805 | 237 | 327 | 3,502 | 3,379 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other intangibles | 33 | 35 | – | – | 38 | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total noninterest expense | 815 | 789 | 306 | 292 | 3,379 | 3,316 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before provision and income taxes | 598 | 666 | (112 | ) | (68 | ) | 2,091 | 2,456 | 626 | 609 | 51 | (131 | ) | 2,094 | 2,091 | |||||||||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | (41 | ) | 262 | (709 | ) | 161 | (827 | ) | 993 | 130 | (41 | ) | (78 | ) | (706 | ) | 112 | (827 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 639 | 404 | 597 | (229 | ) | 2,918 | 1,463 | 496 | 650 | 129 | 575 | 1,982 | 2,918 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes and taxable-equivalent adjustment | 160 | 101 | 52 | (139 | ) | 633 | 284 | 124 | 163 | (40 | ) | 46 | 424 | 633 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 479 | 303 | 545 | (90 | ) | 2,285 | 1,179 | 372 | 487 | 169 | 529 | 1,558 | 2,285 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | – | – | (5 | ) | (8 | ) | (5 | ) | (8 | ) | – | – | (1 | ) | (5 | ) | (1 | ) | (5 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to U.S. Bancorp | $ | 479 | $ | 303 | $ | 540 | $ | (98 | ) | $ | 2,280 | $ | 1,171 | $ | 372 | $ | 487 | $ | 168 | $ | 524 | $ | 1,557 | $ | 2,280 | |||||||||||||||||||||||||||||||||||||||
Average Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | $ | 29,630 | $ | 33,688 | $ | 3,867 | $ | 3,275 | $ | 293,989 | $ | 297,657 | $ | 31,740 | $ | 29,630 | $ | 3,820 | $ | 3,867 | $ | 312,966 | $ | 293,989 | ||||||||||||||||||||||||||||||||||||||||
Other earning assets | 5 | 6 | 188,927 | 140,256 | 203,722 | 150,065 | 1,023 | 5 | 206,532 | 188,940 | 216,871 | 203,722 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 3,173 | 2,856 | – | – | 9,914 | 9,694 | 3,325 | 3,173 | – | – | 10,259 | 9,914 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets | 544 | 557 | – | – | 3,082 | 3,019 | 464 | 542 | – | – | 3,909 | 3,082 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | 35,095 | 38,285 | 215,414 | 165,378 | 548,734 | 494,807 | 38,540 | 35,091 | 229,069 | 215,323 | 577,402 | 548,734 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 5,264 | 1,471 | 2,605 | 2,203 | 118,352 | 74,142 | 3,673 | 5,264 | 2,561 | 2,608 | 127,963 | 118,352 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 132 | 114 | 1,625 | 5,331 | 308,012 | 288,662 | 160 | 132 | 2,761 | 1,623 | 326,213 | 308,012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits | 5,396 | 1,585 | 4,230 | 7,534 | 426,364 | 362,804 | 3,833 | 5,396 | 5,322 | 4,231 | 454,176 | 426,364 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total U.S. Bancorp shareholders’ equity | 7,480 | 7,619 | 16,088 | 13,352 | 52,729 | 51,146 | 8,019 | 7,658 | 15,867 | 15,187 | 53,466 | 52,729 |
(a) | Presented net of related rewards and rebate costs and certain partner payments of |
(b) | Includes revenue generated from certain contracts with customers of $1.9 billion and $1.7 billion for the three months ended March 31, 2022 and 2021, |
(c) | The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Under these |
69 |
Note | Subsequent Events |
70 |
For the Three Months Ended March 31 | For the Three Months Ended March 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) (Unaudited) | Average Balances | Interest | Yields and Rates | Average Balances | Interest | Yields and Rates | % Change Average Balances | Average Balances | Interest | Yields and Rates | Average Balances | Interest | Yields and Rates | % Change Average Balances | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities | $ | 145,520 | $ | 534 | 1.47 | % | $ | 120,843 | $ | 706 | 2.34 | % | 20.4 | % | $ | 174,762 | $ | 736 | 1.68 | % | $ | 145,520 | $ | 534 | 1.47 | % | 20.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 10,032 | 67 | 2.69 | 4,748 | 44 | 3.75 | * | 5,479 | 60 | 4.40 | 10,032 | 67 | 2.69 | (45.4 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans (b) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 102,091 | 673 | 2.67 | 105,987 | 941 | 3.57 | (3.7 | ) | 112,822 | 629 | 2.26 | 102,091 | 673 | 2.67 | 10.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 38,786 | 305 | 3.19 | 40,078 | 428 | 4.30 | (3.2 | ) | 39,084 | 295 | 3.06 | 38,786 | 305 | 3.19 | .8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgages | 75,201 | 645 | 3.44 | 70,892 | 663 | 3.74 | 6.1 | 77,449 | 612 | 3.17 | 75,201 | 645 | 3.44 | 3.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit card | 21,144 | 578 | 11.08 | 23,836 | 659 | 11.11 | (11.3 | ) | 21,842 | 562 | 10.44 | 21,144 | 578 | 11.08 | 3.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other retail | 56,767 | 532 | 3.80 | 56,864 | 632 | 4.47 | (.2 | ) | 61,769 | 509 | 3.34 | 56,767 | 532 | 3.80 | 8.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | 293,989 | 2,733 | 3.76 | 297,657 | 3,323 | 4.49 | (1.2 | ) | 312,966 | 2,607 | 3.37 | 293,989 | 2,733 | 3.76 | 6.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits with banks | 29,851 | 14 | .19 | 41,784 | 9 | .08 | (28.6 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other earning assets | 48,170 | 33 | .27 | 24,474 | 69 | 1.14 | 96.8 | 6,779 | 28 | 1.68 | 6,386 | 24 | 1.53 | 6.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total earning assets | 497,711 | 3,367 | 2.73 | 447,722 | 4,142 | 3.71 | 11.2 | 529,837 | 3,445 | 2.62 | 497,711 | 3,367 | 2.73 | 6.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (7,272 | ) | (5,588 | ) | (30.1 | ) | (5,701 | ) | (7,272 | ) | 21.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on investment securities | 1,838 | 1,426 | 28.9 | (2,551 | ) | 1,838 | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 56,457 | 51,247 | 10.2 | 55,817 | 56,457 | (1.1 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 548,734 | $ | 494,807 | 10.9 | $ | 577,402 | $ | 548,734 | 5.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 118,352 | $ | 74,142 | 59.6 | % | $ | 127,963 | $ | 118,352 | 8.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest checking | 97,385 | 6 | .02 | 77,359 | 39 | .21 | 25.9 | 115,062 | 9 | .03 | 97,385 | 6 | .02 | 18.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money market savings | 124,825 | 50 | .16 | 121,946 | 311 | 1.02 | 2.4 | 119,588 | 52 | .18 | 124,825 | 50 | .16 | (4.2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings accounts | 58,848 | 2 | .01 | 48,048 | 26 | .22 | 22.5 | 66,978 | 2 | .01 | 58,848 | 2 | .01 | 13.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time deposits | 26,954 | 27 | .41 | 41,309 | 149 | 1.46 | (34.8 | ) | 24,585 | 17 | .28 | 26,954 | 27 | .41 | (8.8 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 308,012 | 85 | .11 | 288,662 | 525 | .73 | 6.7 | 326,213 | 80 | .10 | 308,012 | 85 | .11 | 5.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | 13,107 | 16 | .51 | 20,253 | 73 | 1.45 | (35.3 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal funds purchased | 1,236 | — | .04 | 1,471 | — | .02 | (16.0 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 1,895 | 1 | .03 | 1,673 | 1 | .04 | 13.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | 6,473 | — | .01 | 6,145 | — | — | 5.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other short-term borrowings | 9,434 | 20 | .21 | 3,818 | 15 | .40 | * | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total short- term borrowings | 19,038 | 21 | .46 | 13,107 | 16 | .51 | 45.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 39,463 | 177 | 1.81 | 43,846 | 297 | 2.73 | (10.0 | ) | 32,972 | 144 | 1.77 | 39,463 | 177 | 1.81 | (16.4 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 360,582 | 278 | .31 | 352,761 | 895 | 1.02 | 2.2 | 378,223 | 245 | .26 | 360,582 | 278 | .31 | 4.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 16,441 | 16,128 | 1.9 | 17,282 | 16,441 | 5.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred equity | 6,213 | 5,984 | 3.8 | 6,619 | 6,213 | 6.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common equity | 46,516 | 45,162 | 3.0 | 46,847 | 46,516 | .7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total U.S. Bancorp shareholders’ equity | 52,729 | 51,146 | 3.1 | 53,466 | 52,729 | 1.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | 630 | 630 | – | 468 | 630 | (25.7 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 53,359 | 51,776 | 3.1 | 53,934 | 53,359 | 1.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 548,734 | $ | 494,807 | 10.9 | $ | 577,402 | $ | 548,734 | 5.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 3,089 | $ | 3,247 | $ | 3,200 | $ | 3,089 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross interest margin | 2.42 | % | 2.69 | % | 2.36 | % | 2.42 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross interest margin without taxable-equivalent increments | 2.40 | % | 2.67 | % | 2.34 | % | 2.40 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percent of Earning Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | 2.73 | % | 3.71 | % | 2.62 | % | 2.73 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | .23 | .80 | .18 | .23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin | 2.50 | % | 2.91 | % | 2.44 | % | 2.50 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin without taxable-equivalent increments | 2.48 | % | 2.89 | % | 2.42 | % | 2.48 | % |
* | Not meaningful |
(a) | Interest and rates are presented on a fully taxable-equivalent basis based on a federal income tax rate of 21 percent. |
(b) | Interest income and rates on loans include loan fees. Nonaccrual loans are included in average loan balances. |
71 |
3.1 | Restated Certificate of Incorporation | |||
3.2 | Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to the Company’s | |||
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. | |||
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. | |||
32 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. section 1350 as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002. | |||
The 10-Q for the quarter ended March 31, | ||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit |
72 |
U.S. BANCORP | ||||||
By: | /s/ L ISA R. STARK | |||||
Dated: May | Lisa R. Stark Controller (Principal Accounting Officer and Duly Authorized Officer) |
73 |
(1) | I have reviewed this Quarterly Report on Form 10-Q of U.S. Bancorp; |
(2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
(3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
(4) | The registrant’s other certifying 13a-15(e) and15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules13a-15(f) and15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
(5) | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/ S / ANDREW CECERE |
Andrew Cecere |
Chief Executive Officer |
74 |
(1) | I have reviewed this Quarterly Report on Form 10-Q of U.S. Bancorp; |
(2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
(3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
(4) | The registrant’s other certifying 13a-15(e) and15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules13a-15(f) and15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
(5) | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/ ERRANCE R. DOLAN |
Terrance R. Dolan Chief Financial Officer |
75 |
(1) | The Quarterly Report on Form 10-Q for the quarter ended March 31, 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ A NDREW CECERE | /s/ T ERRANCE R. DOLAN | |||
Andrew Cecere Chief Executive Officer Dated: May | Terrance R. Dolan Chief Financial Officer |
76 |
This report has been produced on recycled paper. |