U.S. Bancorp 8K Reports Fourth Quarter and Full Year 2015 Earnings | USB 15 Jan 16

U.S. Bancorp

4Q15 Earnings

Conference Call

Richard K. Davis

Chairman, President and CEO

January 15, 2016

Kathy Rogers

Vice Chairman and CFO

Exhibit 99.2

U.S. BANCORP |

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

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

tightening

credit,

reduction

business

activity,

and

increased

market

volatility.

Stress

the

commercial

real

estate

markets,

well

downturn

the

residential

real

estate

markets,

could

cause

credit

losses

and

deterioration

asset

values.

addition,

U.S.

Bancorp’s

business

and

financial

performance

likely

negatively

impacted

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, 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

describe

U.S.

Bancorp’s

performance.

The

calculations

these

measures

are

provided

within

the

appendix

the

presentation.

These

disclosures

should

not

viewed

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.

U.S. BANCORP |

Full Year 2015 Highlights

•

Record net income of $5.9 billion; $3.16 per diluted common share

•

Industry-leading profitability measures, including ROA of 1.44%, ROCE of

14.0% and efficiency ratio of 53.8%

•

Average loan growth of 4.1%* vs. 2014 and average deposit growth of 7.7%

vs. 2014

•

Net charge-offs declined 12.1% vs. 2014

•

Nonperforming

assets

declined

15.8%

vs.

2014

•

Capital generation continues to reinforce capital position

–

End of period common equity tier 1 capital ratio of 9.1% estimated for the Basel III

fully implemented standardized approach

–

Repurchased 52 million shares of common stock during 2015

•

Returned

$4.0

billion,

72%,

earnings

shareholders

2015

* Loan growth excludes student loans, which were transferred from held for sale at the end of 1Q15 and returned to held for investment during 3Q15

U.S. BANCORP |

4Q15 Highlights

•

Record revenue of $5.2 billion

•

Net income of $1.5 billion; $0.80 per diluted common share

•

Average loan growth of 1.7%* vs. 3Q15 and 4.2% vs. 4Q14

•

Average deposit growth of 1.7% vs. 3Q15 and 6.9% vs. 4Q14

•

Continued momentum in payment-related fee revenue led by a year-over-year

increase in credit and debit card revenue of 8.1%

•

Net charge-offs declined 1.0% vs. 4Q14 and increased 4.5% vs. 3Q15

•

Nonperforming assets declined 15.8% vs. 4Q14 and 2.8% vs. 3Q15

•

Capital generation continues to reinforce capital position

–

End of period common equity tier 1 capital ratio of 9.1% estimated for the Basel III

fully implemented standardized approach

–

Returned 61% of earnings to shareholders in 4Q15

* Loan growth excludes student loans, which were transferred from held for sale at the end of 1Q15 and returned to held for investment during 3Q15

U.S. BANCORP |

Performance Ratios

Return on Average Common Equity

and Return on Average Assets

Efficiency Ratio and

Net Interest Margin

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

income excluding net securities gains (losses)

14.4%

14.1%

14.3%

14.1%

13.7%

1.50%

1.44%

1.46%

1.44%

1.41%

1.0%

1.5%

2.0%

2.5%

3.0%

11%

14%

17%

20%

4Q14

1Q15

2Q15

3Q15

4Q15

Return on Avg Common Equity

Return on Avg Assets

Efficiency Ratio

Net Interest Margin

54.3%

53.2%

53.9%

3.14%

3.08%

3.03%

3.04%

3.06%

1.6%

2.2%

2.8%

3.4%

4.0%

48%

52%

56%

60%

64%

4Q14

1Q15

2Q15

3Q15

4Q15

U.S. BANCORP |

Revenue Growth

Notable items: 2Q14 Visa gain $214 million; 4Q14 Nuveen gain $124 million; 3Q15 Visa gain $135 million, student loan market value adjustment ($58) million

Taxable-equivalent basis

Year-Over-Year Change

5.7%

1.9%

(2.8%)

3.1%

0.8%

$ in millions

$5,169

$4,906

$5,042

$5,147

$5,211

3,500

4,000

4,500

5,000

5,500

4Q14

1Q15

2Q15

3Q15

4Q15

U.S. BANCORP |

Loan and Deposit Growth

Year-Over-Year Growth

Average Balances

200

225

250

275

300

4Q14

1Q15

2Q15

3Q15

4Q15

Loans

Deposits

2.5%

$246.6

2.7%

$250.5

4.2%

$256.7

5.9%

$246.4

5.1%

$248.0

8.9%

$285.7

6.9%

$289.7

6.9%

$294.5

7.2%

$275.5

8.1%

$278.5

$ in billions

3.8%

adjusted*

4.0%

adjusted*

* Loan growth excludes student loans, which were transferred from held for sale at the end of 1Q15 and returned to held for investment during 3Q15

U.S. BANCORP |

Credit Quality

Net Charge-offs

Nonperforming Assets

$ in millions

$308

$279

$296

$292

$305

0.50%

0.46%

0.48%

0.46%

0.47%

0.00%

0.75%

1.50%

2.25%

3.00%

130

260

390

520

4Q14

1Q15

2Q15

3Q15

4Q15

$1,808

$1,696

$1,577

$1,567

$1,523

0.73%

0.69%

0.63%

0.61%

0.58%

0.00%

0.75%

1.50%

2.25%

3.00%

700

1,400

2,100

2,800

4Q14

1Q15

2Q15

3Q15

4Q15

Net Charge-offs (Left Scale)

NCOs to Avg Loans (Right Scale)

Nonperforming Assets (Left Scale)

NPAs to Loans plus ORE (Right Scale)

U.S. BANCORP |

Earnings Summary

Taxable-equivalent basis

$ and shares in millions, except per-share data

4Q15

3Q15

4Q14

vs 3Q15

vs 4Q14

2015

2014

%B/(W)

Net Interest Income

2,871

2,821

2,799

1.8

2.6

11,214

10,997

2.0

Noninterest Income

2,340

2,326

2,370

0.6

(1.3)

9,092

9,164

(0.8)

Net Revenue

5,211

5,147

5,169

1.2

0.8

20,306

20,161

0.7

Noninterest Expense

2,809

2,775

2,804

(1.2)

(0.2)

10,931

10,715

(2.0)

Operating Income

2,402

2,372

2,365

1.3

1.6

9,375

9,446

(0.8)

Net Charge-offs

305

292

308

(4.5)

1.0

1,172

1,334

12.1

Excess Provision

(10)

(20)

(40)

(105)

(61.9)

Income before Taxes

2,097

2,090

2,077

0.3

1.0

8,243

8,217

0.3

Applicable Income Taxes

608

587

576

(3.6)

(5.6)

2,310

2,309

Noncontrolling Interests

(13)

(14)

(13)

7.1

(54)

(57)

5.3

Net Income

1,476

1,489

1,488

(0.9)

(0.8)

5,879

5,851

0.5

Preferred Dividends/Other

(7.5)

(5.9)

271

268

(1.1)

NI to Common

1,404

1,422

1,420

(1.3)

(1.1)

5,608

5,583

0.4

Diluted EPS

$0.80

0.81

0.79

(1.2)

1.3

3.16

3.08

2.6

Average Diluted Shares

1,754

1,766

1,796

0.7

2.3

1,772

1,813

2.3

% B/(W)

U.S. BANCORP |

Net Interest Income

Key Points

vs. 4Q14

•

Average earning assets grew $18.1 billion, or 5.1%

•

Net interest margin lower 8 bps (3.06% vs. 3.14%)

–

Change in loan portfolio mix, as well as growth in the

investment portfolio at lower average rates and lower

reinvestment rates on investment securities

vs. 3Q15

•

Average earning assets grew $3.8 billion, or 1.0%

•

Net interest margin higher 2 bps (3.06% vs. 3.04%)

–

Principally due to loan growth which also resulted in lower

cash balances

Year-Over-Year Change

2.4%

1.7%

0.9%

2.7%

2.6%

$ in millions

Taxable-equivalent basis

$2,799

$2,752

$2,770

$2,821

$2,871

3.14%

3.08%

3.03%

3.04%

3.06%

0.0%

2.0%

4.0%

6.0%

8.0%

1,000

2,000

3,000

4,000

4Q14

1Q15

2Q15

3Q15

4Q15

Net Interest Income

Net Interest Margin

U.S. BANCORP |

Noninterest Income

$587

$446

$472

$505

$536

$235

$240

$231

$224

$211

$396

$376

$396

$409

$400

$322

$334

$329

$336

$830

$770

$839

$859

$857

700

1,400

2,100

2,800

4Q14

1Q15

2Q15

3Q15

4Q15

Noninterest Income

Key Points

vs. 4Q14

•

Noninterest income decreased $30 million, or 1.3%

–

Higher credit and debit card revenue (8.1% increase) due to higher

transaction volumes and higher merchant processing services

revenues (2.3% increase) due to higher transaction volumes,

account growth and equipment sales to merchants

–

Higher trust and investment management fees (4.3% increase)

–

Lower mortgage banking revenue primarily due to an unfavorable

change in the valuation of MSRs, net of hedging activities

–

Lower other income due to the impact of the 4Q14 Nuveen gain,

partially offset by the HSA deposit sale

vs. 3Q15

•

Noninterest income increased $14 million, or 0.6%

–

Higher credit and debit card revenue (9.3% increase) primarily due

to seasonally higher sales volumes

–

Lower mortgage banking revenue primarily due to lower

origination revenue

–

Lower corporate payment products revenue (10.5% decrease)

reflecting the impact of seasonally higher 3Q15 government-

related transaction volumes

–

Higher other income reflecting the net impact of prior quarter

notable items including the Visa Inc. Class B common stock sales

and the student loan market adjustment, offset by the HSA deposit

sale and other equity investment income

Year-Over-Year Change

9.9%

2.2%

(7.0%)

3.7%

(1.3%)

$2,340

$2,370

$2,154

$2,272

$2,326

All Other

Mortgage

Service Charges

Trust and Inv Mgmt

Payments

Notable items: 4Q14 Nuveen gain $124 million; 3Q15 Visa gain $135 million, student loan market value adjustment ($58) million

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

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

$ in millions

U.S. BANCORP |

Noninterest Expense

$594

$479

$459

$501

$554

$219

$214

$221

$222

$230

$347

$229

$266

$291

$295

$248

$247

$251

$246

$1,396

$1,496

$1,489

$1,510

$1,484

800

1,600

2,400

3,200

4Q14

1Q15

2Q15

3Q15

4Q15

Noninterest Expense

Key Points

vs. 4Q14

•

Noninterest expense increased $5 million, or 0.2%

–

Higher compensation (5.3% increase) reflecting the impact of merit

increases and higher staffing for risk and compliance activities

–

Higher employee benefits expense (11.0% increase) mainly due to

higher pension costs

–

Lower marketing and business development expense (25.6%

decrease) primarily due to charitable contributions in 4Q14

–

Lower other noninterest expense reflecting the impact of prior year

legal accruals partially offset by higher compliance-related expenses

vs. 3Q15

•

Noninterest expense increased $34 million, or 1.2%

–

Lower compensation expense (1.1% decrease) reflecting the impact

of expense management initiatives and decreases in variable

compensation

–

Lower employee benefits expense (4.6% decrease) driven by lower

payroll tax expense and healthcare costs

–

Higher other noninterest expense due to seasonally higher costs

related to investments in tax-advantaged projects and accruals

related to legal and compliance matters, partially offset by the

favorable impact of reduced mortgage-related compliance and talent

upgrade costs which were elevated in 3Q15

Year-Over-Year Change

4.5%

4.8%

(2.6%)

6.2%

0.2%

$2,809

$2,804

$2,665

$2,682

$2,775

All Other

Tech and Communications

Prof Svcs, Marketing and PPS

Occupancy and Equipment

Compensation and Benefits

Notable items: 4Q14 charitable contributions and accruals for legal matters $88 million; 3Q15 elevated expenses related to mortgage-related compliance

and the company-wide talent upgrade costs $60 million

$ in millions

U.S. BANCORP |

Capital Position

* RWA = risk-weighted assets

$ in billions

4Q15

3Q15

2Q15

1Q15

4Q14

Total U.S. Bancorp shareholders' equity

46.1

45.1

44.5

44.3

43.5

Standardized Approach

Basel III transitional standardized approach

Common equity tier 1 capital ratio

9.6%

9.5%

9.6%

9.7%

Tier 1 capital ratio

11.3%

11.1%

11.0%

11.1%

11.3%

Total risk-based capital ratio

13.3%

13.1%

13.3%

13.6%

Leverage ratio

9.5%

9.3%

9.2%

9.3%

Common equity tier 1 capital to RWA* estimated for the

Basel III fully implemented standardized approach

9.1%

9.2%

9.0%

Advanced Approaches

Common equity tier 1 capital to RWA for the Basel III

transitional advanced approaches

12.5%

13.0%

12.9%

12.3%

12.4%

Common equity tier 1 capital to RWA estimated for the

Basel III fully implemented advanced approaches

11.9%

12.4%

11.8%

Tangible common equity ratio

7.6%

7.7%

7.5%

7.6%

7.5%

Tangible common equity as a % of RWA

9.2%

9.3%

9.2%

9.3%

U.S. BANCORP |

Appendix

U.S. BANCORP |

Average Loans

15.5%

15.1%

11.0%

9.5%

9.0%

4.2%

6.5%

4.8%

3.6%

3.1%

2.2%

(0.3%)

(1.4%)

(0.3%)

2.1%

3.6%

2.4%

1.3%

1.1%

4.7%

3.6%

3.5%

0.3%

5.6%*

(1.8%)

5.7%*

4.0%

140

210

280

4Q14

1Q15

2Q15

3Q15

4Q15

Average Loans

Key Points

vs. 4Q14

•

Average total loans increased by $10.3 billion,

or 4.2%

•

Average total commercial loans increased

$7.2 billion, or 9.0%

•

Average retail loans increased 4.0% which

includes an increase in average auto loans of

13.0%

vs. 3Q15

•

Average total loans increased by $6.2 billion, or

2.5% (1.7% excluding student loans, which

were transferred to held for sale at the end of

first quarter of 2015 and returned to held for

investment during 3Q15)

•

Average total commercial loans increased

$2.1 billion, or 2.5%

Year-Over-Year Growth

5.9%

5.1%

2.5%

2.7%

4.2%

Covered

Commercial

CRE

Res Mtg

Retail

Credit Card

$256.7

$246.4

$248.0

$246.6

$250.5

4.0%*

$ in billions

3.8%*

* Loan growth excludes student loans, which were transferred from held for sale at the end of 1Q15 and returned to held for investment during 3Q15

U.S. BANCORP |

Average Deposits

(4.9%)

(8.2%)

(14.1)

(18.1%)

(19.2%)

19.7%

24.7%

30.2%

21.3%

20.2%

8.3%

7.3%

6.1%

5.9%

6.7%

3.3%

5.2%

7.7%

9.2%

9.0%

160

240

320

4Q14

1Q15

2Q15

3Q15

4Q15

Average Deposits

Key Points

vs. 4Q14

•

Average total deposits increased by

$19.0 billion, or 6.9%

•

Average low-cost deposits (NIB, interest

checking, money market and savings)

increased by $26.8 billion, or 11.4%

vs. 3Q15

•

Average total deposits increased by

$4.8 billion, or 1.7%

•

Average low-cost deposits increased by

$6.2 billion, or 2.4%

Year-Over-Year Growth

7.2%

8.1%

8.9%

6.9%

Time

Money Market

Checking and Savings

Noninterest-bearing

$275.5

$278.5

$285.7

$289.7

$294.5

$ in billions

U.S. BANCORP |

Credit Quality –

Commercial Loans

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

•

Average linked quarter loan growth of 2.5% and year-over-year loan growth of 9.0% demonstrates continued momentum

with customers

•

Net charge-offs increased slightly from 4Q14 but declined on a linked quarter basis

•

Nonperforming loans remained stable on a linked quarter basis

•

Line utilization remained relatively stable

4Q14

3Q15

4Q15

Average Loans

$79,625

$84,704

$86,803

30-89 Delinquencies

0.31%

0.24%

0.36%

90+ Delinquencies

0.05%

Nonperforming Loans

0.14%

0.20%

$ in millions

$79,625

$81,508

$83,253

$84,704

$86,803

0.23%

0.21%

0.20%

0.33%

0.29%

0.0%

0.5%

1.0%

1.5%

2.0%

25,000

50,000

75,000

100,000

4Q14

1Q15

2Q15

3Q15

4Q15

20%

24%

28%

32%

36%

Revolving Line Utilization Trend

Average Loans

Net Charge-offs Ratio

U.S. BANCORP |

A&D

Construction

$702

Credit Quality –

Commercial Real Estate

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

•

Year-over-year average loans increased 3.1%

•

Historically low nonperforming loan levels improved on a quarter-over-quarter and year-over-year basis

•

Recovery performance within the CRE portfolio continues to largely offset minimal loan charge-offs

4Q14

3Q15

4Q15

Average Loans

$40,966

$42,316

$42,231

30-89 Delinquencies

0.26%

0.15%

0.21%

90+ Delinquencies

0.05%

0.03%

Nonperforming Loans

0.61%

0.34%

0.30%

Performing TDRs*

$365

$218

$209

$ in millions

Investor

$20,624

Owner

Occupied

$11,206

Multi-family

$3,297

Retail

$893

Residential

Construction

$2,327

Office

$976

Other

$2,206

* TDR = troubled debt restructuring

CRE Construction

$40,966

$42,446

$42,316

$42,231

-0.10%

-0.17%

0.01%

-0.10%

0.00%

-0.5%

0.0%

0.5%

1.0%

1.5%

20,000

40,000

60,000

4Q14

1Q15

2Q15

3Q15

4Q15

Average Loans

Net Charge-offs Ratio

CRE Mortgage

$42,671

U.S. BANCORP |

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%)

•

85% 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

•

Net charge-offs continue to decline

$ in millions

4Q14

3Q15

4Q15

Average Loans

$51,872

$51,831

$52,970

30-89 Delinquencies

0.43%

0.35%

0.32%

90+ Delinquencies

0.40%

0.33%

Nonperforming Loans

1.67%

1.40%

1.33%

$1,866

$1,851

$1,931

$1,903

$1,863

1,000

2,000

3,000

4,000

4Q14

1Q15

2Q15

3Q15

4Q15

Residential Mortgage Performing TDRs*

*Excludes GNMA loans, whose repayments are insured by the FHA or guaranteed by the Department of VA ($1,913 million in 4Q15)

$51,872

$51,426

$51,114

$51,831

$52,970

0.30%

0.28%

0.26%

0.19%

0.12%

0.0%

0.5%

1.0%

1.5%

2.0%

15,000

30,000

45,000

60,000

4Q14

1Q15

2Q15

3Q15

4Q15

Average Loans

Net Charge-offs Ratio

U.S. BANCORP |

Credit Quality –

Credit Card

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

•

Originations remained strong and of high credit quality with a commitment weighted average FICO of 757

•

Charge-offs and delinquencies remain low while nonperforming loans continued to decline

$ in millions

4Q14

3Q15

4Q15

Average Loans

$17,990

$17,944

$18,838

30-89 Delinquencies

1.24%

1.27%

1.15%

90+ Delinquencies

1.13%

1.10%

1.09%

Nonperforming Loans

0.16%

0.06%

0.04%

$17,990

$17,823

$17,613

$17,944

$18,838

3.53%

3.71%

3.85%

3.38%

3.50%

0.0%

3.0%

6.0%

9.0%

12.0%

6,000

12,000

18,000

24,000

4Q14

1Q15

2Q15

3Q15

4Q15

Average Loans

Net Charge-offs Ratio

$30

$22

$16

$12

0.16%

0.13%

0.09%

0.06%

0.04%

0.0%

0.5%

1.0%

1.5%

2.0%

4Q14

1Q15

2Q15

3Q15

4Q15

Credit Card Nonperforming Loans

U.S. BANCORP |

Credit Quality –

Home Equity

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

•

High-quality originations (weighted average FICO on commitments was 761, weighted average CLTV 71%)

originated primarily through the retail branch network to existing bank customers on their primary residences

•

Net charge-offs ratio continued to decline on a linked quarter and year-over-year basis

$ in millions

4Q14

3Q15

4Q15

Average Loans

$15,853

$16,083

$16,241

30-89 Delinquencies

0.54%

0.36%

90+ Delinquencies

0.26%

0.25%

Nonperforming Loans

1.07%

0.91%

0.83%

Subprime: 1%

Wtd Avg LTV*: 89%

NCO: 2.00%

Prime: 96%

Wtd Avg LTV*: 72%

NCO: 0.10%

Other: 3%

Wtd Avg LTV*: 71%

NCO: 0.95%

*LTV at origination

$15,853

$15,897

$15,958

$16,083

$16,241

0.43%

0.36%

0.28%

0.17%

0.15%

0.0%

1.0%

2.0%

3.0%

4.0%

5,000

10,000

15,000

20,000

4Q14

1Q15

2Q15

3Q15

4Q15

Average Loans

Net Charge

-offs Ratio

Home Equity

U.S. BANCORP |

Credit Quality –

Retail Leasing

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

•

Continued high-quality originations (weighted average FICO 787) support the portfolio’s stable credit profile

•

Delinquencies remained at very low levels

•

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

$ in millions

4Q14

3Q15

4Q15

Average Loans

$5,939

$5,480

$5,265

30-89 Delinquencies

0.18%

0.21%

90+ Delinquencies

0.02%

Nonperforming Loans

0.02%

0.04%

0.06%

$5,939

$5,819

$5,696

$5,480

$5,265

0.07%

0.14%

0.08%

0.0%

0.2%

0.4%

0.6%

0.8%

2,000

4,000

6,000

8,000

4Q14

1Q15

2Q15

3Q15

4Q15

Average Loans

Net Charge-offs Ratio

100

110

120

130

140

Manheim Used Vehicle Index*

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

U.S. BANCORP |

Credit Quality –

Other Retail

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

•

Overall growth continues to be driven by auto loans and installment, which were up 13.0% and 12.5%

year-over-year, respectively

•

Delinquency rates and net charge-off rates experienced slight seasonal increases; however, they remain low

$ in millions

4Q14

3Q15

4Q15

Average Loans

$27,317

$27,286

$29,556

30-89 Delinquencies

0.51%

0.46%

0.52%

90+ Delinquencies

0.12%

0.10%

0.11%

Nonperforming Loans

0.06%

0.07%

0.08%

Auto Loans

$16,551

Installment

$7,002

Revolving

Credit

$3,340

Student

Loans

$2,663

Other Retail

$27,317

$27,604

$25,415

$27,286

$29,556

0.76%

0.60%

0.62%

0.65%

0.71%

0.0%

0.5%

1.0%

1.5%

2.0%

10,000

20,000

30,000

40,000

4Q14

1Q15

2Q15

3Q15

4Q15

Average Loans

Net Charge-offs Ratio

U.S. BANCORP |

Credit Quality –

Auto Loans

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

•

Continued growth in auto loans driven by high-quality originations in the indirect channel (weighted average FICO 771)

•

Net charge-offs were up seasonally on a linked quarter basis, but remained relatively stable year-over-year

$ in millions

4Q14

3Q15

4Q15

Average Loans

$14,644

$16,220

$16,551

30-89 Delinquencies

0.45%

0.40%

0.51%

90+ Delinquencies

0.03%

0.02%

0.04%

Nonperforming Loans

0.03%

0.05%

0.07%

Direct: 6%

Wtd Avg FICO: 748

NCO: 0.15%

Indirect: 94%

Wtd Avg FICO: 765

NCO: 0.37%

Auto loans are included in Other Retail category

$14,644

$15,013

$15,609

$16,220

$16,551

0.33%

0.19%

0.15%

0.22%

0.36%

0.0%

0.5%

1.0%

1.5%

2.0%

5,000

10,000

15,000

20,000

4Q14

1Q15

2Q15

3Q15

4Q15

Average Loans

Net Charge-offs Ratio

Indirect and Direct Channel

U.S. BANCORP |

Non-GAAP Financial Measures

* 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 (loss) 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.

December 31,

September 30,

June 30,

March 31,

December 31,

(Dollars in Millions, Unaudited)

2015

2014

Total equity

$46,817

$45,767

$45,231

$44,965

$44,168

Preferred stock

(5,501)

(4,756)

Noncontrolling interests

(686)

(692)

(694)

(688)

(689)

Goodwill (net of deferred tax liability) (1)

(8,295)

(8,324)

(8,350)

(8,360)

(8,403)

Intangible assets, other than mortgage servicing rights

(838)

(779)

(744)

(783)

(824)

Tangible common equity (a)

31,497

31,216

30,687

30,378

29,496

Tangible common equity (as calculated above)

31,497

31,216

30,687

30,378

29,496

Adjustments (2)

118

125

158

172

Common equity tier 1 capital estimated for the Basel III fully

implemented standardized and advanced approaches (b)

31,564

31,334

30,812

30,536

29,668

Total assets

421,853

415,943

419,075

410,233

402,529

Goodwill (net of deferred tax liability) (1)

(8,295)

(8,324)

(8,350)

(8,360)

(8,403)

Intangible assets, other than mortgage servicing rights

(838)

(779)

(744)

(783)

(824)

Tangible assets (c)

412,720

406,840

409,981

401,090

393,302

Risk-weighted assets, determined in accordance with prescribed

transitional standardized approach regulatory requirements (d)

341,360

336,227

333,177

327,709

317,398

Adjustments (3)

3,892

3,532

3,153

11,110

Risk-weighted assets estimated for the Basel III fully implemented

standardized approach (e)

345,252

339,759

336,709

330,862

328,508

Risk-weighted assets, determined in accordance with prescribed

transitional advanced approaches regulatory requirements

261,668

248,048

245,038

254,892

248,596

Adjustments (4)

4,099

3,723

3,721

3,321

3,270

Risk-weighted assets estimated for the Basel III fully implemented

advanced approaches (f)

265,767

251,771

248,759

258,213

251,866

Ratios *

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

7.6

7.7

7.5

7.6

7.5

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

9.2

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)

9.1

9.2

9.0

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

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

11.9

12.4

11.8

U.S. Bancorp

4Q15 Earnings

Conference Call

January 15, 2016

U.S. Bancorp (USB) 8-KU.s. Bancorp Reports Fourth Quarter and Full Year 2015 Earnings