Exhibit 99.1
News Release
U.S. Bancorp Receives its Preliminary 2020 Stress Capital Buffer of 2.5 percent
MINNEAPOLIS(June 29, 2020) — U.S. Bancorp (NYSE: USB) today commented on the results of the Federal Reserve’s 2020 Dodd-Frank Act stress tests and related Comprehensive Capital Analysis and Review (CCAR).
Based on its 2020 CCAR results, the company will be subject to a preliminary stress capital buffer (SCB) of 2.5 percent for the period beginning October 1, 2020 and ending on September 30, 2021. The Federal Reserve has stated that it expects to finalize the SCB for all firms by August 31, 2020. The SCB, when added to the Basel III Common Equity Tier 1 (CET1) minimum of 4.5 percent, requires the company to remain above 7.0 percent through this period. The Company’s CET1 ratio was 9.0 percent at March 31, 2020 under the CECL transition rules.
The Federal Reserve also announced that due to the economic uncertainty from the coronavirus event, it will require all large banks to preserve capital through the suspension of share repurchase programs and by capping dividends to existing rates that do not to exceed the average of the last four quarters’ earnings. These capital preservation actions apply to the third quarter but may be extended by the Federal Reserve as economic conditions develop. U.S. Bancorp expects to recommend to its Board that the company continue to maintain its current quarterly common dividend of $0.42 per common share. The company will continue to monitor the impact of COVID-19 and will adjust its capital distributions as circumstances warrant. Additional capital distributions, including share repurchases, are subject to the approval of the company’s board of directors, and will be consistent with regulatory requirements.
“We are committed to creating and delivering value to our shareholders and our capital and liquidity position remain strong as we manage through the economic fallout from the COVID-19 pandemic,” said Andy Cecere, chairman, president and CEO of U.S. Bancorp. “We have a long and successful history of working through challenging environments and I believe these results reflect our strong balance sheet, our diverse businesses and our well- established financial discipline that will enable us to manage through this difficult COVID-19 pandemic environment.”
About U.S. Bank
U.S. Bancorp, with more than 70,000 employees and $543 billion in assets as of March 31, 2020, is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. The Minneapolis- based bank blends its relationship teams, branches and ATM network with mobile and online tools that allow customers to bank how, when and where they prefer. U.S. Bank is committed to serving its millions of retail, business, wealth management, payment, commercial and corporate, and investment services customers across the country and around the world as a trusted financial partner, a commitment recognized by the Ethisphere Institute naming the bank one of the 2020 World’s Most Ethical Companies. Visit U.S. Bank atwww.usbank.com or follow on social media to stay up to date with company news.
Forward-looking statements
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This press release containsforward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. The forward-looking statements contained in this press release include, among other things, anticipated U.S. Bancorp capital distributions by dividends and share repurchases. There can be no assurance that U.S. Bancorp will return this or any amount of capital to its shareholders in the form of dividends or share repurchases in the future.
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. The COVID-19 pandemic is
