U.S. Bancorp 8K Reports First Quarter 2015 Earnings | USB 15 Apr 15

Richard K. Davis

Kathy Rogers

U.S. Bancorp

1Q15 Earnings

Conference Call

U.S. Bancorp

1Q15 Earnings

Conference Call

April 15, 2015

Exhibit 99.2

Chairman, President and CEO

Vice Chairman and CFO

Forward-looking Statements and Additional Information

The following information appears in accordance with the Private Securities Litigation Reform Act of 1995:

This presentation contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including

statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and

estimates made by, management as of the date made. These forward-looking statements cover, among other things, anticipated future

revenue and expenses and the future plans and prospects of U.S. Bancorp. Forward-looking statements involve inherent risks and

uncertainties, and important factors could cause actual results to differ materially from those anticipated. A reversal or slowing of the current

economic recovery or another severe contraction could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities.

Global financial markets could experience a recurrence of significant turbulence, which could reduce the availability of funding to certain

financial institutions and lead to a tightening of credit, a reduction of business activity, and increased market volatility. Stress in the commercial

real estate markets, as well as a downturn in the residential real estate markets, could cause credit losses and deterioration in asset values. In

addition, U.S. Bancorp’s business and financial performance is likely to be negatively impacted by recently enacted and future legislation and

regulation. U.S. Bancorp’s results could also be adversely affected by deterioration in general business and economic conditions; changes in

interest rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; deterioration in the

value of securities held in its investment securities portfolio; legal and regulatory developments; litigation; increased competition from both

banks and non-banks; changes in customer behavior and preferences; breaches in data security; effects of mergers and acquisitions and related

integration; effects of critical accounting policies and judgments; and management’s ability to effectively manage credit risk, residual value risk,

market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputational risk.

For discussion of these and other risks that may cause actual results to differ from expectations, refer to U.S. Bancorp’s Annual Report on

Form 10-K for the year ended December 31, 2014, on file with the Securities and Exchange Commission, including the sections entitled “Risk

Factors” and “Corporate Risk Profile” contained in Exhibit 13, and all subsequent filings with the Securities and Exchange Commission under

Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934. Forward-looking statements speak only as of the date they are made,

and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.

This presentation includes non-GAAP financial measures to describe U.S. Bancorp’s performance. The calculations of these measures are

provided within or in the appendix of the presentation. These disclosures should not be viewed as a substitute for operating results determined

in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

1Q15 Earnings

Conference Call

1Q15 Highlights

Net income of $1.4 billion; $0.76 per diluted common share

Average loan growth of 5.1% vs. 1Q14 and 0.6% vs. 4Q14 (0.8% excluding the

reclassification of certain municipal loans to securities)

Average deposit growth of 8.1% vs. 1Q14 (6.4% excluding Charter One

acquisition) and 1.1% vs. 4Q14

Net charge-offs declined 18.2% vs. 1Q14 and 9.4% vs 4Q14

Nonperforming assets declined 15.2% vs. 1Q14 and 6.2% vs 4Q14

Capital generation continues to reinforce capital position

•

Common equity tier 1 capital ratio of 9.2% estimated for the Basel III fully implemented

standardized approach

Returned 70% of earnings to shareholders in 1Q15

•

Repurchased 12 million shares of common stock during the quarter

1Q15 Earnings

Conference Call

Performance Ratios

Return on Average Common Equity

and Return on Average Assets

Efficiency Ratio and

Net Interest Margin

Return on Avg Common Equity

Return on Avg Assets

Efficiency Ratio

Net Interest Margin

* Excluding $214 million gain on Visa Inc. Class B common stock sale and $200 million FHA DOJ settlement

** Excluding $124 million gain related to an equity interest in Nuveen and $88 million expense for charitable contributions and legal accruals

Efficiency ratio computed as noninterest expense divided by the sum of net interest income on a taxable-equivalent basis and noninterest

income excluding securities gains (losses) net

14.6%

15.1%

14.5%

14.4%

14.1%

1.56%

1.60%

1.51%

1.50%

1.44%

1.0%

1.5%

2.0%

2.5%

3.0%

11%

14%

17%

20%

1Q14

2Q14

3Q14

4Q14

1Q15

52.9%

53.1%

52.4%

54.3%

53.8%**

51.3%*

3.35%

3.27%

3.16%

3.14%

3.08%

1.6%

2.2%

2.8%

3.4%

4.0%

48%

52%

56%

60%

64%

1Q14

2Q14

3Q14

4Q14

1Q15

54.3%

1Q15 Earnings

Conference Call

* Gain on Visa Inc. Class B common stock sale

** Gain related to an equity interest in Nuveen

Taxable-equivalent basis

Revenue Growth

Year-Over-Year Change

(1.2%)

4.9%

2.0%

5.7%

1.9%

$ in millions

$4,906

$4,814

$4,990

$5,188

$214*

$124**

3,500

4,000

4,500

5,000

5,500

1Q14

2Q14

3Q14

4Q14

1Q15

$5,169

1Q15 Earnings

Conference Call

Loan and Deposit Growth

Year-Over-Year Growth

Average Balances

$ in billions

5.9%

$246.4

5.1%

$248.0

6.0%

$235.9

6.8%

$240.5

6.3%

$243.9

7.2%

$275.5

8.1%

$278.5

5.1%

$257.5

6.0%

$262.4

7.4%

$271.0

210.0

230.0

250.0

270.0

290.0

1Q14

2Q14

3Q14

4Q14

1Q15

Loans

Deposits

1Q15 Earnings

Conference Call

Credit Quality

Net Charge-offs

Nonperforming Assets

$ in millions

Net Charge-offs (Left Scale)

NCOs to Avg Loans (Right Scale)

Nonperforming Assets (Left Scale)

NPAs to Loans plus ORE (Right Scale)

$341

$349

$336

$308

$279

0.59%

0.58%

0.55%

0.50%

0.46%

0.00%

0.75%

1.50%

2.25%

3.00%

130

260

390

520

1Q14

2Q14

3Q14

4Q14

1Q15

$1,999

$1,943

$1,923

$1,808

$1,696

0.84%

0.80%

0.78%

0.73%

0.69%

0.00%

0.75%

1.50%

2.25%

3.00%

700

1,400

2,100

2,800

1Q14

2Q14

3Q14

4Q14

1Q15

1Q15 Earnings

Conference Call

Earnings Summary

$ and shares in millions, except per-share data

Taxable-equivalent basis

1Q15

4Q14

1Q14

vs 4Q14

vs 1Q14

Net Interest Income

2,752

2,799

2,706

(1.7)

1.7

Noninterest Income

2,154

2,370

2,108

(9.1)

2.2

Net Revenue

4,906

5,169

4,814

(5.1)

1.9

Noninterest Expense

2,665

2,804

2,544

5.0

(4.8)

Operating Income

2,241

2,365

2,270

(5.2)

(1.3)

Net Charge-offs

279

308

341

9.4

18.2

Excess Provision

(15)

(20)

(35)

(25.0)

(57.1)

Income before Taxes

1,977

2,077

1,964

(4.8)

0.7

Applicable Income Taxes

533

576

552

7.5

3.4

Noncontrolling Interests

(13)

(15)

13.3

Net Income

1,431

1,488

1,397

(3.8)

2.4

Preferred Dividends/Other

2.9

NI to Common

1,365

1,420

1,331

(3.9)

2.6

Diluted EPS

0.76

0.79

0.73

(3.8)

4.1

Average Diluted Shares

1,789

1,796

1,828

0.4

2.1

% B/(W)

1Q15 Earnings

Conference Call

1Q15 Results -

Key Drivers

vs. 1Q14

Net Revenue increase of 1.9%

•

Net interest income increase of 1.7%; net interest margin of 3.08% vs. 3.35% in 1Q14

•

Noninterest income increase of 2.2%

Noninterest expense increase of 4.8%

Provision for credit losses declined by $42 million

•

Net charge-offs lower by $62 million, or 18.2%

•

Provision lower than NCOs by $15 million vs. $35 million in 1Q14

vs. 4Q14

Net Revenue decrease of 5.1% (2.8% decrease excluding notable item in 4Q14)

•

Net interest income decrease of 1.7%; net interest margin

of 3.08% vs. 3.14% in 4Q14

•

Noninterest income decrease of 9.1% (4.1% decrease

excluding notable item in 4Q14)

Noninterest expense decrease of 5.0% (1.9% decrease

excluding notable items in 4Q14)

Provision for credit losses lower by $24 million

•

Net charge-offs decreased by $29 million, or 9.4%

•

Provision lower than NCOs by $15 million vs. $20 million in 4Q14

1Q15 Earnings

Conference Call

Capital Position

$ in billions

RWA = risk-weighted assets

1Q15

4Q14

3Q14

2Q14

1Q14

Total U.S. Bancorp shareholders' equity

44.3

43.5

43.1

42.7

42.1

Standardized Approach

Basel III transitional standardized approach

Common equity tier 1 capital

31.3

30.9

30.2

29.8

29.5

Tier 1 capital

36.4

36.0

35.4

34.9

34.6

Total risk-based capital

43.6

43.2

42.5

41.0

40.7

Common equity tier 1 capital ratio

9.6%

9.7%

9.6%

9.7%

Tier 1 capital ratio

11.1%

11.3%

11.4%

Total risk-based capital ratio

13.3%

13.6%

13.2%

13.5%

Leverage ratio

9.3%

9.4%

9.6%

9.7%

Common equity tier 1 capital to RWA estimated for the

Basel III fully implemented standardized approach

9.2%

9.0%

8.9%

9.0%

Advanced Approaches

Common equity tier 1 capital to RWA for the Basel III

transitional advanced approaches

12.3%

12.4%

12.3%

Common equity tier 1 capital to RWA estimated for the

Basel III fully implemented advanced approaches

11.8%

11.7%

Tangible common equity ratio

7.6%

7.5%

7.6%

7.5%

7.8%

Tangible common equity as a % of RWA

9.3%

9.2%

9.3%

1Q15 Earnings

Conference Call

Capital Actions

Reinvest and

Acquisitions

Dividends

Repurchases

20 -

40%

Targets:

30 -

40%

30 -

40%

30%

1Q15

Actual:

38%

32%

Earnings Distribution

Share repurchase authorization and expected dividend increase announced

March 11

•

Expect to increase annual dividend from $0.98 to $1.02, a 4.1% increase, effective 2Q15

•

Five-quarter authorization to repurchase up to $3.022 billion of outstanding common stock

effective April 1, 2015

Returned 70% of earnings to shareholders during 1Q15

1Q15 Earnings

Conference Call

1Q15 Earnings

Conference Call

Appendix

1Q15 Earnings

Conference Call

Average Loans

Key Points

$ in billions

vs. 1Q14

Average total loans grew by $12.1 billion, or

5.1% (4.8% excluding Charter One acquisition)

Average total commercial loans increased

$10.7 billion, or 15.1%; average commercial

real estate loans increased $2.6 billion, or 6.5%

vs. 4Q14

Average total loans grew by $1.6 billion, or

0.6% (0.8% increase excluding reclassification

of certain municipal loans to securities at the

end of 4Q14)

Average total commercial loans increased $1.9

billion, or 2.4%; average commercial real estate

loans increased $1.7 billion, or 4.2%

Year-Over-Year Growth

6.0%

6.8%

6.3%

5.9%

5.1%

Covered

Commercial

CRE

Res Mtg

Retail

Credit Card

Average Loans

8.5%

12.4%

13.6%

15.5%

15.1%

7.6%

6.9%

6.1%

4.2%

6.5%

14.4%

10.5%

5.8%

2.2%

(0.3%)

5.3%

5.9%

4.9%

3.6%

2.4%

140

280

1Q14

2Q14

3Q14

4Q14

1Q15

0.9%

2.3%

3.6%

3.5%

210

$235.9

$240.5

$243.9

$246.4

$248.0

1Q15 Earnings

Conference Call

Average Deposits

Key Points

$ in billions

vs. 1Q14

Average total deposits increased by $21.0

billion, or 8.1% (6.4% excluding Charter One

acquisition)

Average low-cost deposits (NIB, interest

checking, money market and savings)

increased by $24.5 billion, or 11.4%

vs. 4Q14

Average total deposits increased by $3.0

billion, or 1.1%

Average low-cost deposits increased by $4.1

billion, or 1.7%

Year-Over-Year Growth

5.1%

6.0%

7.4%

7.2%

8.1%

Time

Money Market

Checking and Savings

Noninterest-bearing

$257.5

$262.4

$271.0

$275.5

$278.5

(6.1%)

(5.9%)

(13.1%)

(4.9%)

(8.2%)

11.6%

10.8%

18.3%

19.7%

24.7%

5.9%

8.3%

10.9%

8.3%

7.3%

6.7%

7.4%

8.6%

3.3%

5.2.%

160

240

320

1Q14

2Q14

3Q14

4Q14

1Q15

1Q15 Earnings

Conference Call

Net Interest Income

Key Points

$ in millions

Taxable-equivalent basis

vs. 1Q14

Average earning assets grew by $34.6 billion,

or 10.6%

Net interest margin lower by 27 bps (3.08% vs. 3.35%)

driven by:

•

growth in the investment portfolio at lower average rates, as

well as lower reinvestment rates on investment securities,

lower loan fees due to the CAA product wind down, lower

rates on new loans and a change in loan portfolio mix

•

Partially offset by lower funding costs

vs. 4Q14

Average earning assets grew by $5.9 billion,

or 1.7%

Net interest margin lower by 6 bps (3.08% vs. 3.14%)

driven by:

•

Growth in lower rate investment securities and lower

reinvestment rates, lower interest recoveries, lower rates on

new loans and a change in loan portfolio mix, along with the

impact of higher cash balances at the Federal Reserve as a

result of continued deposit growth

Year-Over-Year Change

(0.1%)

2.7%

1.3%

2.4%

1.7%

$2,706

$2,744

$2,748

$2,799

$2,752

3.35%

3.27%

3.16%

3.14%

3.08%

0.0%

2.0%

4.0%

6.0%

8.0%

1,000

2,000

3,000

4,000

1Q14

2Q14

3Q14

4Q14

1Q15

Net Interest Income

Net Interest Margin

1Q15 Earnings

Conference Call

Noninterest Income

Key Points

$ in millions

Payments = credit and debit card revenue, corporate payment products revenue and merchant processing;

Service charges = deposit service charges, treasury management fees and ATM processing services

vs. 1Q14

Noninterest income increased by $46 million, or

2.2%, driven by:

•

Higher trust and investment management fees (5.9% increase)

due to account growth and improved market conditions

•

Higher other income due primarily to equity investment gains

•

Mortgage revenue increase of $4 million

•

Partially offset by lower commercial products revenue (2.4%

decrease) due to lower wholesale transaction activity and lower

commercial leasing revenue, partially offset by increased bond

underwriting fees

vs. 4Q14

Noninterest income decreased by $216 million, or

9.1%, driven by:

•

Lower credit and debit card revenue (11.4% decrease) primarily

due to seasonally lower sales volume and fewer days

•

Lower merchant processing revenue (6.5% decrease) due to

seasonally lower product fees and fewer days

•

Lower deposit service charges (10.6% decrease) due to fewer

days and seasonally lower volumes

•

Lower commercial products revenue (8.7% decrease) due to

lower wholesale transaction activity partially offset by increased

bond underwriting fees

•

Lower other income due primarily to 4Q Nuveen gain

•

Partially offset by mortgage revenue increase of $5 million

Year-Over-Year Change

(2.6%)

7.4%

3.0%

9.9%

2.2%

$2,108

$2,444

$2,242

$2,370

All Other

Mortgage

Service Charges

Trust and Inv Mgmt

Payments

1Q14

2Q14

3Q14

4Q14

1Q15

Nuveen Gain

124

Visa Gain

214

Total

214

124

Notable Noninterest Income Items

700

1,400

2,100

2,800

1Q14

2Q14

3Q14

4Q14

1Q15

$2,154

3.2%

1.7%

2.2%

5.9%

0.3%

1Q15 Earnings

Conference Call

Noninterest Expense

Key Points

$ in millions

vs. 1Q14

Noninterest expense was higher by $121 million,

or 4.8%, driven by:

•

Higher compensation expense (5.7% increase) reflecting the

impact of merit increases, acquisitions, and higher staffing for

risk and compliance activities, and higher employee benefits

expense (9.7% increase) due to higher pension costs

•

Higher other expense (12.4% increase) primarily due to higher

mortgage servicing-related expenses

vs. 4Q14

Noninterest expense was lower by $139 million, or

5.0%, driven by:

•

Lower marketing and business development expense (45.7%

decrease) due to the fourth quarter 2014 charitable

contributions and lower advertising costs

•

Lower professional services expense (41.7% decrease) due to

seasonally lower costs

•

Lower other expense due to seasonally lower costs related to

investments in tax-advantaged projects and the impact of the

fourth quarter 2014 legal accruals, partially offset by increased

mortgage servicing-related expenses

•

Partially offset by higher employee benefit expense (29.4%

increase) due to increased pension costs and seasonally

higher payroll taxes and higher compensation expense (2.4%

increase) reflecting the seasonal impact of stock based

compensation grants and commissions related to mortgage

production

Year-Over-Year Change

3.0%

7.7%

1.9%

4.5%

4.8%

$2,544

$2,753

$2,614

$2,804

$2,665

All Other

Tech and Communications

Prof Svcs, Marketing and PPS

Occupancy and Equipment

Compensation and Benefits

1Q14

2Q14

3Q14

4Q14

1Q15

Charitable contributions

Accruals for legal matters

FHA DOJ settlement

200

Total

200

Notable Noninterest Expense Items

9.6%

1.4%

(0.8%)

6.6%

800

1,600

2,400

3,200

1Q14

2Q14

3Q14

4Q14

1Q15

(5.8%)

1Q15 Earnings

Conference Call

Credit Quality

Commercial Loans

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

Continued new client growth led to 2.5% linked quarter loan growth and 16.1% year-over-year

growth; utilization rates improved modestly

Net charge-offs declined on a linked quarter basis and the NCO ratio was flat year-over-year

Nonperforming loans and delinquencies continued at historically low levels

1Q14

4Q14

1Q15

Average Loans

$65,645

$74,333

$76,183

30-89 Delinquencies

0.25%

0.27%

0.19%

90+ Delinquencies

0.07%

0.05%

0.06%

Nonperforming Loans

0.25%

0.13%

0.10%

$ in millions

$65,645

$69,920

$72,190

$74,333

$76,183

0.21%

0.30%

0.29%

0.26%

0.21

0.0%

0.5%

1.0%

1.5%

2.0%

25,000

50,000

75,000

100,000

1Q14

2Q14

3Q14

4Q14

1Q15

Average Loans

Net Charge

-offs Ratio

20%

24%

28%

32%

36%

Revolving Line Utilization Trend

1Q15 Earnings

Conference Call

Credit Quality

Commercial Leases

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

Commercial

lease

balances

increased

slightly

linked

quarter

basis

Net charge-offs increased as recoveries returned to normal levels

Nonperforming loans and delinquencies continued at modest levels

1Q14

4Q14

1Q15

Average Loans

$5,189

$5,292

$5,325

30-89 Delinquencies

0.74%

0.78%

0.84%

90+ Delinquencies

0.00%

Nonperforming Loans

0.27%

0.24%

$ in millions

Small Ticket

$3,095

Equipment

Finance

$2,230

Commercial Leases

$5,189

$5,100

$5,155

$5,292

$5,325

0.16%

0.24%

0.46%

-0.15%

0.23%

-0.7%

0.0%

0.7%

1.4%

2.1%

3,000

6,000

9,000

1Q14

2Q14

3Q14

4Q14

1Q15

Average Loans

Net Charge

-offs Ratio

1Q15 Earnings

Conference Call

Credit

Quality

Commercial

Real

Estate

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

Credit quality is stable at low levels; non-performing loans improved quarter-over-quarter

Net

recovery

ratio

0.17%,

continuing

trend

recoveries

the

portfolio

1Q14

4Q14

1Q15

Average Loans

$40,050

$40,966

$42,671

30-89 Delinquencies

0.14%

0.26%

0.24%

90+ Delinquencies

0.06%

0.05%

0.07%

Nonperforming Loans

0.67%

0.61%

0.51%

Performing TDRs*

$359

$365

$259

$ in millions

Investor

$21,551

Owner

Occupied

$11,568

Multi-family

$2,931

Retail

$745

Residential

Construction

$2,061

A&D

Construction

$714

Office

$1,024

Other

$2,077

* TDR = troubled debt restructuring

$40,050

$40,497

$40,839

$40,966

$42,671

-0.03%

-0.04%

0.04%

-0.10%

-0.17%

-0.5%

0.0%

0.5%

1.0%

1.5%

20,000

40,000

60,000

1Q14

2Q14

3Q14

4Q14

1Q15

Average Loans

Net Charge

-offs Ratio

CRE Mortgage

CRE Construction

1Q15 Earnings

Conference Call

Credit Quality

Residential Mortgage

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

Originations are of high credit quality (weighted average FICO 755, weighted average LTV 69%)

82% of the balances have been originated since the beginning of 2009; the origination quality

metrics and performance to date have significantly outperformed prior vintages

with similar seasoning

1Q14

4Q14

1Q15

Average Loans

$51,584

$51,872

$51,426

30-89 Delinquencies

0.59%

0.43%

0.38%

90+ Delinquencies

0.64%

0.40%

0.33%

Nonperforming Loans

1.50%

1.67%

1.61%

$ in millions

*Excludes

GNMA

loans,

whose

repayments

are

insured

the

FHA

guaranteed

the

Department

($2,157

million

1Q15)

$51,584

$51,815

$51,994

$51,872

$51,426

0.45%

0.44%

0.32%

0.30%

0.0%

0.5%

1.0%

1.5%

2.0%

15,000

30,000

45,000

60,000

1Q14

2Q14

3Q14

4Q14

1Q15

Average Loans

Net Charge

-offs Ratio

$1,962

$1,922

$1,899

$1,866

$1,851

1,000

2,000

3,000

4,000

1Q14

2Q14

3Q14

4Q14

1Q15

Residential Mortgage Performing TDRs*

0.28%

1Q15 Earnings

Conference Call

1Q14

4Q14

1Q15

Average Loans

$17,407

$17,990

$17,823

30-89 Delinquencies

1.19%

1.24%

1.16%

90+ Delinquencies

1.21%

1.13%

1.19%

Nonperforming Loans

0.38%

0.16%

0.13%

Credit Quality -

Credit Card

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

Average loans seasonally declined 0.9% on a linked quarter basis; up 2.4% year-over-year

Delinquencies and losses remain near historically low levels with some seasonal impacts

Nonperforming loans continued to decline

$ in millions

5,000

10,000

15,000

20,000

1Q14

2Q14

3Q14

4Q14

1Q15

0.0%

2.0%

4.0%

6.0%

8.0%

$17,407

$17,384

$17,753

$17,990

$17,823

3.96%

3.92%

3.53%

3.71%

Average Loans

Net Charge

-offs Ratio

Credit Card Nonperforming Loans

0.0%

0.5%

1.0%

1.5%

2.0%

1Q14

2Q14

3Q14

4Q14

1Q15

$65

$52

$40

$30

$22

0.38%

0.29%

0.22%

0.16%

0.13%

1Q15 Earnings

Conference Call

Credit Quality -

Home Equity

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

High-quality originations (weighted average FICO on commitments was 766, weighted average

CLTV

71%)

originated

primarily

through

the

retail

branch

network

existing

bank

customers

their primary residences

Net charge-offs ratio declined on a linked quarter and year-over-year basis

1Q14

4Q14

1Q15

Average Loans

$15,366

$15,853

$15,897

30-89 Delinquencies

0.57%

0.54%

0.41%

90+ Delinquencies

0.33%

0.26%

0.25%

Nonperforming Loans

1.09%

1.07%

Subprime: 1%

Wtd Avg LTV*: 90%

NCO: 3.51%

$ in millions

Prime: 96%

Wtd Avg LTV*: 72%

NCO: 0.29%

*LTV at origination

Other: 3%

Wtd Avg LTV*: 72%

NCO: 0.81%

$15,366

$15,327

$15,704

$15,853

$15,897

0.82%

0.60%

0.61%

0.43%

0.36%

0.0%

1.0%

2.0%

3.0%

4.0%

5,000

10,000

15,000

20,000

1Q14

2Q14

3Q14

4Q14

1Q15

Average Loans

Net Charge

-offs Ratio

Home Equity

1Q15 Earnings

Conference Call

Credit Quality -

Retail Leasing

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

Continued high-quality originations (weighted average FICO 789) support the portfolio’s stable credit

profile

Delinquencies remained relatively stable at very low levels

Strong used auto values continued to contribute to historically low net charge-offs

1Q14

4Q14

1Q15

Average Loans

$5,979

$5,939

$5,819

30-89 Delinquencies

0.16%

0.18%

0.12%

90+ Delinquencies

0.02%

0.00%

Nonperforming Loans

0.02%

$ in millions

* Manheim Used Vehicle Value Index source: www.manheimconsulting.com, January 1995 = 100, quarter value = average of monthly ending values

$5,979

$6,014

$5,991

$5,939

$5,819

0.00%

0.07%

0.00%

0.07%

0.0%

0.2%

0.4%

0.6%

0.8%

2,000

4,000

6,000

8,000

1Q14

2Q14

3Q14

4Q14

1Q15

Average Loans

Net Charge

-offs Ratio

100

110

120

130

140

Manheim

Used Vehicle Index*

1Q15 Earnings

Conference Call

Credit Quality -

Other Retail

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

Growth in auto and installment loans continued to offset declines in student lending loan balances

Student lending balances were moved to held for sale at the end of the quarter

Net charge-offs and delinquencies improved on a linked quarter basis reflecting seasonality and

remained low year-over-year

1Q14

4Q14

1Q15

Average Loans

$26,312

$27,317

$27,604

30-89 Delinquencies

0.40%

0.51%

0.44%

90+ Delinquencies

0.13%

0.12%

0.11%

Nonperforming Loans

0.08%

0.06%

Installment

$6,274

Auto Loans

$15,013

Revolving

Credit

$3,272

Student

Lending

$3,045

$ in millions

$26,312

$26,587

$27,003

$27,317

$27,604

0.69%

0.68%

0.72%

0.76%

0.60%

0.0%

0.5%

1.0%

1.5%

2.0%

10,000

20,000

30,000

40,000

1Q14

2Q14

3Q14

4Q14

1Q15

Average Loans

Net Charge

-offs Ratio

Other Retail

1Q15 Earnings

Conference Call

Credit Quality -

Auto Loans

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

Continued growth (8.7% year-over-year) in auto loans driven by high-quality originations in

the indirect channel (weighted average FICO 765)

Net charge-offs seasonally improved on a linked quarter basis, and as expected, increased

year-over-year as growth initiatives continued to mature

1Q14

4Q14

1Q15

Average Loans

$13,815

$14,644

$15,013

30-89 Delinquencies

0.26%

0.45%

0.30%

90+ Delinquencies

0.03%

0.01%

Nonperforming Loans

0.02%

0.03%

$ in millions

Auto Loans are included in Other Retail category

Direct: 6%

Wtd Avg FICO: 748

NCO: 0.05%

Indirect: 94%

Wtd Avg FICO: 763

NCO: 0.20%

$13,815

$14,108

$14,404

$14,644

$15,013

0.09%

0.11%

0.25%

0.33%

0.19%

0.0%

0.5%

1.0%

1.5%

2.0%

4,000

8,000

12,000

16,000

1Q14

2Q14

3Q14

4Q14

1Q15

Average Loans

Net Charge

-offs Ratio

Indirect and Direct Channel

1Q15 Earnings

Conference Call

Mortgage Repurchase

Mortgages Repurchased and Make-whole Payments

Mortgage Representation and Warranties Reserve

$ in millions

1Q15

4Q14

3Q14

2Q14

1Q14

Beginning Reserve

$46

$62

$69

$75

$83

Net Realized Losses

(2)

(15)

(1)

(2)

(10)

Change in Reserve

(1)

(6)

(4)

Ending Reserve

$46

$62

$69

$75

Mortgages

repurchased

and make-whole

payments

$12

$14

$19

$30

$36

Repurchase activity lower than

peers due to:

•

Conservative credit and

underwriting culture

•

Disciplined origination process -

primarily conforming loans

(

95%

sold

GSEs)

Do not participate in private

placement securitization market

Outstanding repurchase and

make-whole requests balance

of $22 million

1Q15 Earnings

Conference Call

Non-GAAP Financial Measures

March 31,

December 31,

September 30,

June 30,

March 31,

(Dollars in Millions, Unaudited)

2015

2014

Total equity

$44,965

$44,168

$43,829

$43,386

$42,743

Preferred stock

(4,756)

Noncontrolling interests

(688)

(689)

(688)

(686)

(689)

Goodwill (net of deferred tax liability) (1)

(8,360)

(8,403)

(8,503)

(8,548)

(8,352)

Intangible assets, other than mortgage servicing rights

(783)

(824)

(877)

(925)

(804)

Tangible common equity (a)

30,378

29,496

29,005

28,471

28,142

Tangible common equity (as calculated above)

30,378

29,496

29,005

28,471

28,142

Adjustments (2)

158

172

187

224

239

Common equity tier 1 capital estimated for the Basel III fully

implemented standardized and advanced approaches (b)

30,536

29,668

29,192

28,695

28,381

Total assets

410,233

402,529

391,284

389,065

371,289

Goodwill (net of deferred tax liability) (1)

(8,360)

(8,403)

(8,503)

(8,548)

(8,352)

Intangible assets, other than mortgage servicing rights

(783)

(824)

(877)

(925)

(804)

Tangible assets (c)

401,090

393,302

381,904

379,592

362,133

Risk-weighted assets, determined in accordance with prescribed

regulatory requirements (d)

327,709

317,398

311,914

309,929

302,841

Adjustments (3)

3,153

11,110

12,837

12,753

13,238

Risk-weighted assets estimated for the Basel III fully implemented

standardized approach (e)

330,862

328,508

324,751

322,682

316,079

Risk-weighted assets, determined in accordance with prescribed

transitional advanced approaches regulatory requirements

254,892

248,596

243,909

241,929

Adjustments (4)

3,321

3,270

3,443

3,383

Risk-weighted assets estimated for the Basel III fully implemented

advanced approaches (f)

258,213

251,866

247,352

245,312

Ratios *

Tangible common equity to tangible assets (a)/(c)

7.6

7.5

7.6

7.5

7.8

Tangible common equity to risk-weighted assets (a)/(d)

9.3

9.2

9.3

Common equity tier 1 capital to risk-weighted assets estimated for the

Basel III fully implemented standardized approach (b)/(e)

9.2

9.0

8.9

9.0

Common equity tier 1 capital to risk-weighted assets estimated for the

Basel III fully implemented advanced approaches (b)/(f)

11.8

11.7

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

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

(2) Includes net losses on cash flow hedges included in accumulated other comprehensive income and other adjustments.

(3) Includes higher risk-weighting for unfunded loan commitments, investment securities, residential mortgages, mortgage servicing rights and other adjustments.

(4)

Primarily reflects higher risk-weighting for mortgage servicing rights.

April 15, 2015

U.S. Bancorp

1Q15 Earnings

Conference Call

U.S. Bancorp

1Q15 Earnings

Conference Call

U.S. Bancorp (USB) 8-KU.s. Bancorp Reports First Quarter 2015 Earnings