U.S. Bancorp 8K Reports Third Quarter 2016 Earnings | USB 19 Oct 16

U.S. Bancorp

3Q16 Earnings

Conference Call

Richard K. Davis

Chairman and CEO

October 19, 2016

Terry Dolan

Vice Chairman and CFO

Exhibit 99.2

U.S. BANCORP | 2

Forward-looking Statements

and Additional Information

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

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

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

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

the

residential

real

estate

markets,

could

cause

credit

losses

and

deterioration

asset

values.

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

adversely

affected

deterioration

general

business

and

economic

conditions

(which

could

result,

part,

from

the

United

Kingdom’s withdrawal from the European Union); changes in interest rates; deterioration in the credit quality of its loan portfolios or in the value of

the

collateral

securing

those

loans;

deterioration

the

value

securities

held

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

mergers

and

acquisitions

and

integration;

effects

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, 2015, on file with the Securities and Exchange Commission, including the sections entitled “Risk

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

Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934. However, factors other than these also could adversely affect U.S.

Bancorp’s results, and the reader should not consider these factors to be a complete set of all potential risks or uncertainties. Forward-looking

statements speak only as of the date hereof, and U.S. Bancorp undertakes no obligation to update them in light of new information or future

events.

This

presentation

includes

non-GAAP

financial

measures

describe

U.S.

Bancorp’s

performance.

The

calculations

these

measures

are

provided in the Appendix. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor

are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

U.S. BANCORP | 3

3Q16 Highlights

•

Net income of $1.5 billion; $0.84 per diluted common share

•

Average loans grew 1.1% vs. 2Q16 and 7.6% vs. 3Q15

–

Loan growth of 6.4% vs. 3Q15 excluding the credit card portfolio acquisition at the end of 4Q15

and student loans which were transferred from held for sale to held for investment in 3Q15

•

Average deposits grew 3.6% vs. 2Q16 and 10.0% vs. 3Q15

•

Net interest income grew 1.6%* vs. 2Q16 and 4.3%* vs. 3Q15

–

Average earning assets increased 2.2% vs. 2Q16 and 6.6% vs. 3Q15

•

Noninterest income increased 5.1% vs. 3Q15

–

Mortgage banking revenue rose 31.9% vs. 2Q16 and 40.2% vs. 3Q15

•

Nonperforming assets and net charge-offs decreased slightly on a linked quarter basis

•

Returned 79% of earnings to shareholders through dividends and share buybacks

* Taxable equivalent basis; increases of 1.7% and 4.5%, respectively, as reported on a GAAP basis; see slide 24 for reconciliation

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

* Excludes notable items

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)

54.0%

1.0%

1.5%

2.0%

2.5%

3.0%

3Q15

4Q15

1Q16

2Q16

3Q16

14.1%

13.7%

13.0%

13.8%

13.5%

1.44%

1.41%

1.32%

1.43%

1.36%

11%

14%

17%

20%

53.9%

54.6%

54.9%

54.5%

3.04%

3.06%

3.02%

2.98%

1.6%

2.2%

2.8%

3.4%

4.0%

48%

52%

56%

60%

64%

3Q15

4Q15

1Q16

2Q16

3Q16

U.S. BANCORP | 4

Revenue Growth

* Notable item: 2Q16 Visa Europe sale gain $180 million

Year-Over-Year Change

3.1%

0.8%

2.7%

8.1%

4.7%

$ in millions

4.5%

excluding 2Q16

notable item*

U.S. BANCORP | 5

$5,147

$5,211

$5,037

$5,388

4,000

4,500

5,000

5,500

6,000

3Q15

4Q15

1Q16

2Q16

3Q16

$5,448

$180

Loan and Deposit Growth

Year-Over-Year Growth

Average Balances

180

220

260

300

340

3Q15

4Q15

1Q16

2Q16

3Q16

Loans

Deposits

6.5% *

6.4% *

5.8%

$262.3

8.1%

$266.6

2.7%

$250.5

4.2%

$256.7

6.9%

$294.5

6.3%

$295.9

7.6%

$307.4

6.9%

$289.7

$ in billions

3.8% *

* Adjusted for credit card portfolio acquisition and student loan classification

5.2% *

10.0%

$318.5

7.6%

$269.6

U.S. BANCORP | 6

Credit Quality

Net Charge-offs

Nonperforming Assets

Net Charge-offs (Left Scale)

NCOs to Avg Loans (Right Scale)

Nonperforming Assets (Left Scale)

NPAs to Loans plus ORE (Right Scale)

$ in millions

U.S. BANCORP | 7

$292

$305

$315

$317

$315

0.46%

0.47%

0.48%

0.46%

0.00%

0.75%

1.50%

2.25%

3.00%

130

260

390

520

3Q15

4Q15

1Q16

2Q16

3Q16

$1,567

$1,523

$1,719

$1,672

$1,664

0.61%

0.58%

0.65%

0.62%

0.61%

0.00%

0.75%

1.50%

2.25%

3.00%

700

1,400

2,100

2,800

3Q15

4Q15

1Q16

2Q16

3Q16

Earnings Summary

$ and shares in millions, except per-share data

Notable

Items

3Q16

2Q16

3Q15

vs 2Q16

vs 3Q15

2Q16

vs 2Q16

Net Interest Income

2,893

2,845

2,768

1.7

4.5

1.7

Taxable-equivalent Adjustment

(2.0)

(5.7)

(2.0)

2,943

2,896

2,821

1.6

4.3

1.6

Noninterest Income

2,445

2,552

2,326

(4.2)

5.1

180

3.1

Net Revenue

5,388

5,448

5,147

(1.1)

4.7

180

2.3

Noninterest Expense

2,931

2,992

2,775

2.0

(5.6)

150

(3.1)

Operating Income

2,457

2,456

2,372

3.6

1.3

Net Charge-offs

315

317

292

0.6

(7.9)

0.6

Excess Provision

(10)

Income before Taxes

2,132

2,129

2,090

0.1

2.0

1.6

Applicable Income Taxes

616

593

587

(3.9)

(4.9)

(5.3)

Noncontrolling Interests

(14)

Net Income

1,502

1,522

1,489

(1.3)

0.9

0.1

Preferred Dividends/Other

21.8

(1.5)

21.8

NI to Common

1,434

1,435

1,422

(0.1)

0.8

1.5

Diluted EPS

0.84

0.83

0.81

1.2

3.7

$0.01

2.4

Average Diluted Shares

1,716

1,731

1,766

0.9

2.8

Excl Notable

Net Interest Income

(taxable-equivalent basis)

% B/(W)

Reported

Items 3Q16

% B/(W)

U.S. BANCORP | 8

Net Interest Income

Key Points

vs. 3Q15

•

Average earning assets grew $24.5 billion, or 6.6%

•

Net interest margin lower 6 bps (2.98% vs. 3.04%)

–

Principally due to increased funding costs and higher

average cash balances, along with lower reinvestment rates

on investment securities, partially offset by higher rates on

new loans

vs. 2Q16

•

Average earning assets grew $8.4 billion, or 2.2%

•

Net interest margin lower 4 bps (2.98% vs. 3.02%)

–

Primarily reflected higher average cash balances as well as

lower reinvestment rates on securities partially offset by

LIBOR rate benefit on loans

Year-Over-Year Change

2.7%

2.6%

4.9%

4.5% 4.3%

$ in millions

Taxable-equivalent basis

U.S. BANCORP | 9

$2,821

$2,871

$2,888

$2,896

$2,943

3.04%

3.06%

3.02%

2.98%

0.0%

2.0%

4.0%

6.0%

8.0%

1,000

2,000

3,000

4,000

3Q15

4Q15

1Q16

2Q16

3Q16

Net Interest Income

Net Interest Margin

Noninterest Income

$505

$536

$424

$666

$442

$224

$211

$187

$238

$314

$409

$400

$390

$410

$426

$329

$336

$339

$358

$362

$859

$857

$809

$880

$901

750

1,500

2,250

3,000

3Q15

4Q15

1Q16

2Q16

3Q16

Noninterest Income

Key Points

vs. 3Q15

•

Noninterest income increased $119 million, or 5.1%

–

Higher mortgage banking revenue (40.2% increase) driven by higher

origination and sales volume in part due to refinancing activities in the

marketplace

–

Higher trust and investment management fees (10.0% increase)

reflecting lower money market fee waivers along with account growth

and improved market conditions

–

Higher credit and debit card revenue (11.2% increase) due to higher

transaction volumes, including acquired portfolios

–

Lower commercial products revenue (5.2% decrease) primarily

driven by a large syndication transaction in 3Q15

vs. 2Q16

•

Noninterest income decreased $107 million, or 4.2% (3.1%

increase excluding the 2Q16 Visa Europe gain)

–

Higher mortgage banking revenue (31.9% increase) reflecting higher

origination and sales volume and a favorable change in the valuation

of mortgage servicing rights, net of hedging activities

–

Higher corporate payment products revenue (5.0% increase) due to

seasonally higher transaction volumes

–

Lower commercial products revenue (8.0% decrease) primarily due

to higher capital markets volume in 2Q16 given market conditions

–

Lower other income due to the notable item in 2Q16 ($180 million

Visa Europe gain); excluding this, other noninterest income was

lower (16.5% decrease) primarily due to lower end-of-term gains on

auto leases

Year-Over-Year Change

3.7%

(1.3%)

(0.2%)

12.3% 5.1%

$2,552

$2,326

$2,340

$2,149

All Other

Mortgage

Service Charges

Trust and Inv Mgmt

Payments

* Adjusted for notable item: 2Q16 Visa Europe sale gain $180 million

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

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

$ in millions

4.4%

adjusted*

$2,445

U.S. BANCORP | 10

Noninterest Expense

$501

$554

$465

$606

$520

$222

$230

$233

$241

$243

$291

$295

$254

$347

$309

$251

$246

$248

$243

$250

$1,510

$1,484

$1,549

$1,555

$1,609

900

1,800

2,700

3,600

3Q15

4Q15

1Q16

2Q16

3Q16

Noninterest Expense

Key Points

vs. 3Q15

•

Noninterest expense increased $156 million, or 5.6%

–

Higher compensation (8.5% increase) principally due to the

impact of hiring decisions to support business growth and

compliance programs

–

Higher professional services expense (10.4% increase) primarily

due to compliance programs

–

Higher technology and communications expense (9.5% increase)

including the impact of capital investments and costs related to

acquired card portfolios

–

Higher other noninterest expense (3.5% increase) reflecting the

impact of the FDIC surcharge which began 3Q16

vs. 2Q16

•

Noninterest expense decreased $61 million, or 2.0%

(3.1% increase excluding notable expense items in 2Q16)

–

Higher compensation expense (4.1% increase) due to an

additional business day in the quarter compared to 2Q16 and

increased staffing

–

Excluding notable items in 2Q16, higher other noninterest

expense (5.1% increase) due to seasonally higher costs related

to tax-advantaged projects and the impact of the FDIC surcharge

and lower marketing and business development expense (6.4%

decrease) due to the timing of various marketing programs

Year-Over-Year Change

6.2%

0.2%

3.2%

11.6% 5.6%

$2,992

$2,775

$2,809

$2,749

All Other

Tech and Communications

Prof Svcs, Marketing and PPS

Occupancy and Equipment

Compensation and Benefits

* Adjusted for notable items: 2Q16 related to accruals for legal and regulatory matters ($110 million) and charitable contribution ($40 million)

$ in millions

$2,931

6.0%

adjusted*

U.S. BANCORP | 11

Capital Position

* RWA = risk-weighted assets,

See slide 24

$ in billions

3Q16

2Q16

1Q16

4Q15

3Q15

Total U.S. Bancorp shareholders' equity

47.8

47.4

46.7

46.1

45.1

Standardized Approach

Basel III transitional standardized approach

Common equity tier 1 capital ratio

9.5%

9.6%

Tier 1 capital ratio

11.1%

11.3%

11.1%

Total risk-based capital ratio

13.3%

13.4%

13.1%

13.3%

13.1%

Leverage ratio

9.2%

9.3%

9.5%

9.3%

Common equity tier 1 capital to RWA* estimated for the

Basel III fully implemented standardized approach

9.3%

9.2%

9.1%

9.2%

Advanced Approaches

Common equity tier 1 capital to RWA for the Basel III

transitional advanced approaches

12.4%

12.3%

12.5%

13.0%

Common equity tier 1 capital to RWA estimated for the

Basel III fully implemented advanced approaches

12.1%

12.0%

11.9%

12.4%

Tangible common equity ratio

7.5%

7.6%

7.7%

7.6%

7.7%

Tangible common equity as a % of RWA

9.3%

9.2%

9.3%

U.S. BANCORP | 12

Appendix

U.S. BANCORP | 13

Average Loans

9.5%

9.0%

10.2%

10.7%

9.0%

3.6%

3.1%

(0.6%)

1.3%

2.5%

(0.3%)

2.1%

5.4%

8.6%

1.1%

4.7%

5.2%*

5.8%*

5.9%*

4.0%

3.6%

4.1%*

5.2%*

160

240

320

3Q15

4Q15

1Q16

2Q16

3Q16

6.5%*

Average Loans

Key Points

vs. 3Q15

•

Average total loans increased by $19.1 billion,

or 7.6% (6.4% growth excluding student loans

and the credit card portfolio acquisition)

•

Average total commercial loans increased $7.7

billion, or 9.0%

•

Average residential mortgage loans increased

$4.5 billion or 8.6%

vs. 2Q16

•

Average total loans increased by $3.1 billion, or

1.1%

•

Average residential mortgage loans increased

$0.8 billion or 1.4%

•

Average credit card loans increased $0.5 billion

or 2.4%

Year-Over-Year Growth

2.7%

4.2%

5.8%

8.1% 7.6%

Covered

Commercial

CRE

Res Mtg

Retail

Credit Card

$266.6

$250.5

$256.7

$262.3

$ in billions

3.8%*

5.2%*

0.3%

5.6%*

$269.6

6.4%*

U.S. BANCORP | 14

* Excluding student loans, which were transferred to held for sale at the end of 1Q15 and returned to held for investment during 3Q15, and the acquisition

of the Fidelity credit card portfolio at the end of 4Q15

Average Deposits

Key Points

vs. 3Q15

•

Average total deposits increased by

$28.9 billion, or 10.0%

•

Average low-cost deposits (NIB, interest

checking, money market and savings)

increased by $30.4 billion, or 11.9%

vs. 2Q16

•

Average total deposits increased by

$11.2 billion, or 3.6%

•

Average low-cost deposits increased by

$12.9 billion, or 4.7%

Year-Over-Year Growth

6.9%

6.3%

7.6%

10.0%

Time

Money Market

Checking and Savings

Noninterest-bearing

$289.7

$294.5

$295.9

$307.4

$ in billions

$318.5

U.S. BANCORP | 15

(18.1%)

(19.2%)

(14.4%)

(5.6%)

(4.7%)

21.3%

20.2%

17.0%

16.3%

24.4%

5.9%

6.7%

7.1%

9.6%

10.4%

9.2%

9.0%

5.4%

2.4%

1.3%

180

270

360

3Q15

4Q15

1Q16

2Q16

3Q16

Credit Quality –

Commercial Loans

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

•

Average year-over-year loan growth of 9.0% demonstrates continued momentum with customers

•

Net charge-offs increased slightly on both a year-over-year and linked quarter basis, but remained at historically low levels

•

Nonperforming loans increased year-over-year and linked quarter primarily due to weakness in energy

•

Line utilization decreased slightly

3Q15

2Q16

3Q16

Average Loans

$84,704

$92,154

$92,369

30-89 Delinquencies

0.24%

0.22%

0.24%

90+ Delinquencies

0.05%

Nonperforming Loans

0.20%

0.53%

0.55%

$ in millions

U.S. BANCORP | 16

$84,704

$86,803

$89,820

$92,154

$92,369

0.33%

0.29%

0.37%

0.34%

0.37%

0.0%

0.5%

1.0%

1.5%

2.0%

30,000

60,000

90,000

120,000

3Q15

4Q15

1Q16

2Q16

3Q16

Average Loans

Net Charge

-offs Ratio

20%

24%

28%

32%

36%

Revolving Line Utilization Trend

CRE Construction

A&D

Construction

$837

Credit Quality –

Commercial Real Estate

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

•

Average loans increased 2.5% year-over-year

•

Nonperforming loans remained stable at historically low levels

•

Recoveries within the CRE portfolio continued to offset loan charge-offs, resulting in net losses remaining near zero

3Q15

2Q16

3Q16

Average Loans

$42,316

$42,988

$43,374

30-89 Delinquencies

0.15%

0.11%

0.08%

90+ Delinquencies

0.05%

0.03%

0.02%

Nonperforming Loans

0.34%

0.24%

Performing TDRs*

$218

$185

$274

$ in millions

CRE Mortgage

Investor

$20,878

Owner

Occupied

$11,010

Multi-family

$3,986

Retail

$959

Residential

Construction

$2,352

Office

$1,024

Other

$2,328

* TDR = troubled debt restructuring

U.S. BANCORP | 17

$42,316

$42,231

$42,401

$42,988

$43,374

-0.10%

0.00%

-0.05%

0.00%

0.01%

-0.5%

0.0%

0.5%

1.0%

1.5%

20,000

40,000

60,000

3Q15

4Q15

1Q16

2Q16

3Q16

Average Loans

Net Charge

-offs Ratio

Credit Quality –

Residential Mortgage

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

•

Originations continued to be high credit quality (weighted average FICO 759, weighted average LTV 69%)

•

89% 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

$ in millions

3Q15

2Q16

3Q16

Average Loans

$51,831

$55,501

$56,284

30-89 Delinquencies

0.35%

0.28%

0.26%

90+ Delinquencies

0.33%

0.27%

0.28%

Nonperforming Loans

1.40%

1.12%

1.09%

*Excludes GNMA loans, whose repayments are insured by the FHA or guaranteed by the Department of VA ($1,344 million in 3Q16)

U.S. BANCORP | 18

$51,831

$52,970

$54,208

$55,501

$56,284

0.19%

0.12%

0.14%

0.12%

0.08%

0.0%

0.5%

1.0%

1.5%

2.0%

20,000

40,000

60,000

80,000

3Q15

4Q15

1Q16

2Q16

3Q16

Average Loans

Net Charge

-offs Ratio

$1,903

$1,863

$1,827

$1,772

$1,749

800

1,600

2,400

3,200

3Q15

4Q15

1Q16

2Q16

3Q16

Residential Mortgage Performing TDRs*

Credit Quality –

Credit Card

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

•

Year-over-year average loan growth of 15% was driven, in part, by the portfolio acquisition at the end of 4Q15

•

Origination credit quality remains strong, with a weighted average FICO of 759

$ in millions

3Q15

2Q16

3Q16

Average Loans

$17,944

$20,140

$20,628

30-89 Delinquencies

1.27%

1.15%

1.27%

90+ Delinquencies

1.10%

0.98%

1.11%

Nonperforming Loans

0.06%

0.02%

U.S. BANCORP | 19

$17,944

$18,838

$20,244

$20,140

$20,628

3.38%

3.50%

3.26%

3.39%

3.11%

0.0%

3.0%

6.0%

9.0%

12.0%

6,000

12,000

18,000

24,000

3Q15

4Q15

1Q16

2Q16

3Q16

Average Loans

Net Charge

-offs Ratio

$12

0.06%

0.04%

0.02%

0.0%

0.4%

0.8%

1.2%

3Q15

4Q15

1Q16

2Q16

3Q16

Credit Card Nonperforming Loans

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 72%)

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

•

Net charge-offs declined year-over-year due to strong recoveries.

$ in millions

3Q15

2Q16

3Q16

Average Loans

$16,083

$16,394

$16,470

30-89 Delinquencies

0.36%

0.41%

90+ Delinquencies

0.25%

0.24%

Nonperforming Loans

0.91%

0.78%

0.75%

Home Equity

Subprime: 1%

Wtd Avg LTV*: 89%

NCO: 0.00%

Prime: 97%

Wtd Avg LTV*: 72%

NCO: 0.02%

Other: 2%

Wtd Avg LTV*: 70%

NCO: 0.00%

*LTV at origination

U.S. BANCORP | 20

Average Loans

Net Charge

-offs Ratio

$16,083

$16,241

$16,368

$16,394

$16,470

0.17%

0.15%

0.05%

-0.02%

0.02%

0.0%

0.5%

1.0%

1.5%

2.0%

5,000

10,000

15,000

20,000

3Q15

4Q15

1Q16

2Q16

3Q16

Credit Quality –

Retail Leasing

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

•

Continued high-quality originations (weighted average FICO 783) support the portfolio’s stable credit profile

•

Delinquencies, nonperforming loans, and net charge-offs remained at very low levels

$5,480

$5,265

$5,179

$5,326

$5,773

0.14%

0.08%

0.15%

0.07%

0.0%

0.2%

0.4%

0.6%

0.8%

2,000

4,000

6,000

8,000

3Q15

4Q15

1Q16

2Q16

3Q16

Average Loans

$ in millions

3Q15

2Q16

3Q16

Average Loans

$5,480

$5,326

$5,773

30-89 Delinquencies

0.18%

0.21%

90+ Delinquencies

0.02%

0.00%

Nonperforming Loans

0.04%

0.05%

100

110

120

130

140

Manheim

Used Vehicle Index*

U.S. BANCORP | 21

Net Charge

-offs Ratio

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

Credit Quality –

Other Retail

Average Loans and Net Charge-offs Ratios

Key Statistics

Key Points

•

Overall growth continued to be driven by auto loans and installment, which were up 6.1% and 13.4%

year-over-year, respectively

•

Delinquency rates, nonperforming loans, and net charge-offs remained stable

$27,286

$29,556

$29,550

$29,748

$30,608

0.65%

0.71%

0.69%

0.68%

0.0%

0.5%

1.0%

1.5%

2.0%

10,000

20,000

30,000

40,000

3Q15

4Q15

1Q16

2Q16

3Q16

Average Loans

$ in millions

3Q15

2Q16

3Q16

Average Loans

$27,286

$29,748

$30,608

30-89 Delinquencies

0.46%

0.47%

0.56%

90+ Delinquencies

0.10%

0.11%

Nonperforming Loans

0.07%

0.09%

0.08%

Auto Loans,

$17,205

Installment,

$7,783

Revolving

Credit,

$3,243

Student

Loans,

$2,377

Other Retail

U.S. BANCORP | 22

Net Charge

-offs Ratio

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 777)

•

Net charge-offs stayed relatively flat on a linked quarter basis

$ in millions

3Q15

2Q16

3Q16

Average Loans

$16,220

$16,690

$17,205

30-89 Delinquencies

0.40%

0.48%

0.59%

90+ Delinquencies

0.02%

0.03%

0.05%

Nonperforming Loans

0.05%

0.08%

Indirect and Direct Channel

Direct: 6%

Wtd Avg FICO: 748

NCO: 0.11%

Indirect: 94%

Wtd Avg FICO: 768

NCO: 0.34%

Auto loans are included in Other Retail category

U.S. BANCORP | 23

$16,220

$16,551

$16,623

$16,690

$17,205

0.22%

0.36%

0.41%

0.31%

0.32%

0.0%

0.5%

1.0%

1.5%

2.0%

5,000

10,000

15,000

20,000

3Q15

4Q15

1Q16

2Q16

3Q16

Average Loans

Net Charge

-offs Ratio

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.

(5) Utilizes a tax rate of 35 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.

September 30,

June 30,

March 31,

December 31,

September 30,

(Dollars in Millions, Unaudited)

2016

2015

Total equity

$48,399

$48,029

$47,393

$46,817

$45,767

Preferred stock

(5,501)

(4,756)

Noncontrolling interests

(640)

(639)

(638)

(686)

(692)

Goodwill (net of deferred tax liability) (1)

(8,239)

(8,246)

(8,270)

(8,295)

(8,324)

Intangible assets, other than mortgage servicing rights

(756)

(796)

(820)

(838)

(779)

Tangible common equity (a)

33,263

32,847

32,164

31,497

31,216

Tangible common equity (as calculated above)

33,263

32,847

32,164

31,497

31,216

Adjustments (2)

133

118

Common equity tier 1 capital estimated for the Basel III fully

33,360

implemented standardized and advanced approaches (b)

32,980

32,263

31,564

31,334

Total assets

454,134

438,463

428,638

421,853

415,943

Goodwill (net of deferred tax liability) (1)

(8,239)

(8,246)

(8,270)

(8,295)

(8,324)

Intangible assets, other than mortgage servicing rights

(756)

(796)

(820)

(838)

(779)

Tangible assets (c)

445,139

429,421

419,548

412,720

406,840

Risk-weighted assets, determined in accordance with prescribed

transitional standardized approach regulatory requirements (d)

356,733

351,462

346,227

341,360

336,227

Adjustments (3)

3,165

3,079

3,485

3,892

3,532

Risk-weighted assets estimated for the Basel III fully implemented

standardized approach (e)

359,898

354,541

349,712

345,252

339,759

Risk-weighted assets, determined in accordance with prescribed

transitional advanced approaches regulatory requirements

272,832

271,495

267,309

261,668

248,048

Adjustments (4)

3,372

3,283

3,707

4,099

3,723

Risk-weighted assets estimated for the Basel III fully implemented

advanced approaches (f)

276,204

274,778

271,016

265,767

251,771

Ratios*

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

7.5

7.6

7.7

7.6

7.7

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)

9.3

9.2

9.1

9.2

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

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

12.1

12.0

11.9

12.4

U.S. BANCORP | 24

September 30,

June 30,

September 30,

2016

2015

2016

2015

Net interest income

$2,893

$2,845

$2,768

$8,573

$8,182

Taxable-equivalent adjustment (5)

154

161

Net interest income, on a taxable-equivalent basis

$2,943

$2,896

$2,821

$8,727

$8,343

Three Months Ended

Nine Months Ended

U.S. Bancorp

3Q16 Earnings

Conference Call

October 19, 2016

U.S. Bancorp (USB) 8-KU.s. Bancorp Reports Third Quarter 2016 Earnings