U.S.バンコープの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 18, 2023

U.S. BANCORP

(Exact name of registrant as specified in its charter)

1-6880

(Commission File Number)


Delaware		41-0255900
(State or other jurisdiction		(I.R.S. Employer Identification
of incorporation)		Number)

800 Nicollet Mall

Minneapolis, Minnesota 55402

(Address of principal executive offices and zip code)

(651) 466-3000

(Registrant’s telephone number, including area code)

(not applicable)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 Under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	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 K Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrP	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

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule l2b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section l3(a) of the Exchange Act. ☐

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On October 18, 2023, U.S. Bancorp (the “Company”) issued a press release reporting quarter-ended September 30, 2023 results, and posted on its website its 3Q23 Earnings Conference Call Presentation, which contains certain additional historical and forward-looking information relating to the Company. The press release is included as Exhibit 99.1 hereto and is incorporated herein by reference. The information included in the press release is considered to be “filed” under the Securities Exchange Act of 1934. The 3Q23 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated herein by reference. The information included in the 3Q23 Earnings Conference Call Presentation is considered to be “furnished” under the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference in any filings under the Securities Act of 1933. The press release and 3Q23 Earnings Conference Call Presentation contain forward-looking statements regarding the Company and each includes a cautionary statement identifying important factors that could cause actual results to differ materially from those anticipated.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits.

99.1

Press Release issued by U.S. Bancorp on October 18, 2023, deemed “filed” under the Securities Exchange Act of 1934.

99.2

3Q23 Earnings Conference Call Presentation, deemed “furnished” under the Securities Exchange Act of 1934.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

U.S. BANCORP

By /s/ Lisa R. Stark

Lisa R. Stark

Executive Vice President and
Controller

DATE: October 18, 2023

EX-99.1 2 d575514dex991.htm EX-99.1 EX-99.1

Exhibit 99.1




3Q23 Key Financial Data		3Q23 Financial Highlights



PROFITABILITY METRICS	3Q23	2Q23	3Q22
Return on average assets (%)	.91	.81	1.22

Return on average common equity (%)	11.9	10.9	15.8

Return on tangible common equity (%) (a)	18.4	17.1	21.0

Net interest margin (%)	2.81	2.90	2.83

Efficiency ratio (%) (a)	64.4	63.7	57.5

Tangible efficiency ratio (%) (a)	62.1	61.5	56.8
INCOME STATEMENT (b)	3Q23	2Q23	3Q22
Net interest income (taxable-equivalent basis)	$4,268	$4,449	$3,857

Noninterest income	$2,764	$2,726	$2,469

Net income attributable to U.S. Bancorp	$1,523	$1,361	$1,812

Diluted earnings per common share	$.91	$.84	$1.16

Dividends declared per common share	$.48	$.48	$.48
BALANCE SHEET (b)	3Q23	2Q23	3Q22
Average total loans	$376,877	$388,817	$336,778

Average total deposits	$512,291	$497,265	$456,769

Net charge-off ratio	.44%	.67%	.19%

Book value per common share (period end)	$29.74	$30.14	$27.39

Basel III standardized CET1 (c)	9.7%	9.1%	9.7%

(a) See Non-GAAP Financial Measures reconciliation on page 18

(b) Dollars in millions, except per share data

• CET1 capital ratio of 9.7% at September 30, 2023, compared with 9.1% at June 30, 2023

• Net income of $1,736 million and diluted earnings per common share of $1.05 as adjusted for merger and integration-related charges associated with the acquisition of MUFG Union Bank (“MUB”)

• Net revenue of $7,032 million including $4,268 million of net interest income on a taxable-equivalent basis and $2,764 million of noninterest income

• Reported results include merger and integration-related charges of $213 million net-of-tax, or $(0.14) per diluted common share

• Return on average assets of 1.04%, return on average common equity of 13.7%, and efficiency ratio of 60.4% as adjusted for merger and integration-related charges

• Net interest income on a taxable-equivalent basis increased 10.7% year-over-year due to the impact of the acquisition of MUB and rising interest rates on earning assets and decreased 4.1% linked quarter due to deposit mix and pricing

• Noninterest income increased 11.9% year-over-year and 0.6% on linked quarter basis, as adjusted for notable items

• Average total loan growth of 11.9% year-over-year and a decrease of 3.1% on a linked quarter basis (a decrease of 0.9% adjusted for balance sheet repositioning and capital management actions)

• Average total deposit growth of 12.2% year-over-year and 3.0% on linked quarter basis

CEO Commentary

“In the third quarter we delivered earnings per diluted share of $1.05 and a return on tangible common equity of 21.0 percent, both as adjusted for merger and integration-related charges. This quarter our common equity tier 1 ratio increased 60 basis points to 9.7 percent, as we continued to build capital through enhanced earnings generation and capital accretive initiatives. Notably, on October 16th, the Federal Reserve granted us full relief from certain Category II commitments made in connection with the Union Bank acquisition and we are now subject to the same capital rules as all other Category III banks. While the challenging interest rate environment continues to impact net interest income growth for us and the industry, average total deposits increased 3.0 percent, to $512 billion, and third quarter profitability benefited from strength across our diversified fee businesses and disciplined expense management. Third quarter credit quality trends were in line with expectations and we continued to add to our reserve level reflecting prudent assessment of the evolving credit environment. I want to thank all of our employees for their dedication to helping our clients, communities, and shareholders.”

— Andy Cecere, Chairman, President and CEO, U.S. Bancorp

Business and Other Highlights

Number One in Mobile Banking

We continue to lead the way in digital banking. U.S. Bank was ranked number one for mobile banking capabilities and customer experience by Keynova Group for the fifth time in a row, during the third quarter 2023.

Connected Partnership Network

During the quarter, we launched the Connected Partnership Network, an online marketplace of third-party payment and treasury solutions that enables our customers to be more fully integrated with U.S. Bank. The Connected Partnership Network helps corporate treasury teams easily identify and adopt payments capabilities, such as treasury management and working capital automation tools, in an integrated fashion with our banking services.

Notable Item Impacts 2Q23


($ in million, except per-share data)	Income Before Taxes		Net Income Attributable to U.S. Bancorp		Diluted Earnings Per Common Share
Reported		$1,987		$1,523		$ .91
Notable items		284		213		.14
Adjusted		$2,271		$1,736		$1.05

Notable Items
($ in millions)	3Q23		2Q23		3Q22
Balance sheet optimization		$ —		$22		$ —
Merger and integration charges		284		310		42
Provision for credit losses		—		243		—
Total notable items		$284		$575		$42

LOGO

Investor contact: George Andersen, 612.303.3620 | Media contact: Jeff Shelman, 612.303.9933


		U.S. Bancorp Third Quarter 2023 Results


INCOME STATEMENT HIGHLIGHTS
($ in millions, except per-share data)																ADJUSTED (a) (b)
										Percent Change															Percent Change
	3Q			2Q			3Q			3Q23 vs			3Q23 vs			3Q			2Q			3Q			3Q23 vs			3Q23 vs
	2023			2023			2022			2Q23			3Q22			2023			2023			2022			2Q23			3Q22
Net interest income	$	4,236		$	4,415		$	3,827			(4.1	)		10.7		$	4,236		$	4,415		$	3,827			(4.1	)		10.7
Taxable-equivalent adjustment		32			34			30			(5.9	)		6.7			32			34			30			(5.9	)		6.7
Net interest income (taxable-equivalent basis)		4,268			4,449			3,857			(4.1	)		10.7			4,268			4,449			3,857			(4.1	)		10.7
Noninterest income		2,764			2,726			2,469			1.4			11.9			2,764			2,748			2,469			.6			11.9
Total net revenue		7,032			7,175			6,326			(2.0	)		11.2			7,032			7,197			6,326			(2.3	)		11.2
Noninterest expense		4,530			4,569			3,637			(.9	)		24.6			4,246			4,259			3,595			(.3	)		18.1
Income before provision and income taxes		2,502			2,606			2,689			(4.0	)		(7.0	)		2,786			2,938			2,731			(5.2	)		2.0
Provision for credit losses		515			821			362			(37.3	)		42.3			515			578			362			(10.9	)		42.3
Income before taxes		1,987			1,785			2,327			11.3			(14.6	)		2,271			2,360			2,369			(3.8	)		(4.1	)
Income taxes and taxable-equivalent adjustment		463			416			511			11.3			(9.4	)		534			559			520			(4.5	)		2.7
Net income		1,524			1,369			1,816			11.3			(16.1	)		1,737			1,801			1,849			(3.6	)		(6.1	)
Net (income) loss attributable to noncontrolling interests		(1	)		(8	)		(4	)		87.5			75.0			(1	)		(8	)		(4	)		87.5			75.0
Net income attributable to U.S. Bancorp	$	1,523		$	1,361		$	1,812			11.9			(15.9	)	$	1,736		$	1,793		$	1,845			(3.2	)		(5.9	)
Net income applicable to U.S. Bancorp common shareholders	$	1,412		$	1,281		$	1,718			10.2			(17.8	)	$	1,624		$	1,710		$	1,751			(5.0	)		(7.3	)
Diluted earnings per common share	$	.91		$	.84		$	1.16			8.3			(21.6	)	$	1.05		$	1.12		$	1.18			(6.3	)		(11.0	)

(a) 3Q23 excludes $284 ($213 million net-of-tax) of merger and integration-related charges. 2Q23 excludes $575 million ($432 million net-of-tax) of notable items including: $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $310 million of merger and integration-related charges and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions. 3Q22 excludes $42 million ($33 million net-of-tax) of merger and integration-related charges.
(b) See Non-GAAP Financial Measures reconciliation on page 18


INCOME STATEMENT HIGHLIGHTS
($ in millions, except per-share data)										ADJUSTED (c) (d)
	YTD			YTD			Percent			YTD			YTD			Percent
	2023			2022			Change			2023			2022			Change
Net interest income	$	13,285		$	10,435			27.3		$	13,285		$	10,435			27.3
Taxable-equivalent adjustment		100			86			16.3			100			86			16.3
Net interest income (taxable-equivalent basis)		13,385			10,521			27.2			13,385			10,521			27.2
Noninterest income		7,997			7,413			7.9			8,019			7,413			8.2
Total net revenue		21,382			17,934			19.2			21,404			17,934			19.3
Noninterest expense		13,654			10,863			25.7			12,816			10,624			20.6
Income before provision and income taxes		7,728			7,071			9.3			8,588			7,310			17.5
Provision for credit losses		1,763			785			nm			1,520			785			93.6
Income before taxes		5,965			6,286			(5.1	)		7,068			6,525			8.3
Income taxes and taxable-equivalent adjustment		1,368			1,378			(.7	)		1,643			1,431			14.8
Net income		4,597			4,908			(6.3	)		5,425			5,094			6.5
Net (income) loss attributable to noncontrolling interests		(15	)		(8	)		(87.5	)		(15	)		(8	)		(87.5	)
Net income attributable to U.S. Bancorp	$	4,582		$	4,900			(6.5	)	$	5,410		$	5,086			6.4
Net income applicable to U.S. Bancorp common shareholders	$	4,285		$	4,648			(7.8	)	$	5,107		$	4,834			5.6
Diluted earnings per common share	$	2.79		$	3.13			(10.9	)	$	3.32		$	3.25			2.2

(c) 2023 excludes $1.1 billion ($828 million net-of-tax) of notable items including: $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $838 million of merger and integration-related charges and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions. 2022 excludes $239 million ($186 million net-of-tax) of merger and integration-related charges.
(d) See Non-GAAP Financial Measures reconciliation on page 18

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		U.S. Bancorp Third Quarter 2023 Results

Net income attributable to U.S. Bancorp was $1,523 million for the third quarter of 2023, which was $289 million lower than the $1,812 million for the third quarter of 2022 and $162 million higher than the $1,361 million for the second quarter of 2023. Diluted earnings per common share was $0.91 in the third quarter of 2023, compared with $1.16 in the third quarter of 2022 and $0.84 in the second quarter of 2023. The third quarter of 2023 included $213 million, or $(0.14) per diluted common share, of merger and integration-related charges net-of-tax associated with the acquisition of MUB, compared with $33 million $(0.02) per diluted common share in the third quarter of 2022, and notable items net-of-tax of $432 million, or $(0.28) per diluted common share, in the second quarter of 2023. On an adjusted basis, excluding the impacts of these merger and integration-related charges and other notable items, net income applicable to common shareholders for the third quarter of 2023 was $1,624 million, which was $127 million lower than the third quarter of 2022 and $86 million lower than the second quarter of 2023. Adjusted diluted earnings per common share was $1.05 in the third quarter of 2023, representing a 11.0 percent decrease from the third quarter of 2022 and a 6.3 percent decrease from the second quarter of 2023.

The decrease in net income attributable to U.S. Bancorp year-over-year was driven by higher provision expense and noninterest expense, including the merger and integration-related charges, partially offset by higher total net revenue. Pretax income excluding merger and integration charges in the third quarter decreased 4.1 percent compared with a year ago. Net interest income increased 10.7 percent on a year-over-year taxable-equivalent basis due to the impact of rising interest rates on earning assets and the impact of the MUB acquisition. The net interest margin decreased to 2.81 percent in the third quarter of 2023 from 2.83 percent in the third quarter of 2022 primarily due to deposit mix and pricing, partially offset by the impact of higher rates on earning assets and the acquisition of MUB. Noninterest income increased 11.9 percent compared with a year ago driven by higher payment services revenue, trust and investment management fees, commercial products revenue, mortgage banking revenue and other noninterest income. Noninterest expense increased 24.6 percent (18.1 percent excluding merger and integration-related charges), primarily driven by MUB operating expenses, including core deposit intangible amortization expense, and higher compensation expense to support business growth. Provision for credit losses increased $153 million compared with the third quarter of 2022 driven by the acquisition of MUB, normalizing credit losses and continued economic uncertainty.

Net income attributable to U.S. Bancorp increased 11.9 percent on a linked quarter basis reflecting higher noninterest income and lower provision for credit losses, partially offset by lower net interest income. Pretax income excluding notable items decreased 3.8 percent on a linked quarter basis. Net interest income decreased 4.1 percent on a taxable-equivalent basis due to deposit mix and pricing, partially offset by the impact of rising interest rates on earning assets and balance sheet repositioning. The net interest margin decreased to 2.81 percent in the third quarter of 2023 from 2.90 percent in the second quarter of 2023 driven by similar factors. Noninterest income increased 1.4 percent (0.6 percent excluding notable items) compared with the second quarter of 2023 driven by higher other noninterest income. Noninterest expense decreased 0.9 percent on a linked quarter basis driven by lower merger and integration-related charges. Excluding merger and integration-related charges, noninterest expense decreased 0.3 percent due to prudent expense management. Provision for credit losses decreased $306 million ($63 million excluding prior quarter notable items) compared with the second quarter of 2023 primarily due to relative stability in the economic outlook, partially offset by commercial real estate credit quality and normalizing credit losses.

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		U.S. Bancorp Third Quarter 2023 Results


NET INTEREST INCOME
(Taxable-equivalent basis; $ in millions)							Change
	2Q 2023		2Q 2023		3Q 2022		3Q23 vs 2Q23		3Q23 vs 3Q22		YTD 2023		YTD 2022		Change

Components of net interest income
Income on earning assets		$7,788		$7,562		$4,759		$226		$3,029		$22,349		$12,058		$10,291
Expense on interest-bearing liabilities		3,520		3,113		902		407		2,618		8,964		1,537		7,427
Net interest income		$4,268		$4,449		$3,857		$(181)		$411		$13,385		$10,521		$2,864

Average yields and rates paid
Earning assets yield		5.12%		4.94%		3.50%		.18%		1.62%		4.90%		3.00%		1.90%
Rate paid on interest-bearing liabilities		2.87		2.60		.89		.27		1.98		2.52		.53		1.99
Gross interest margin		2.25%		2.34%		2.61%		(.09)%		(.36)%		2.38%		2.47%		(.09)%
Net interest margin		2.81%		2.90%		2.83%		(.09)%		(.02)%		2.94%		2.62%		.32%

Average balances
Investment securities (a)		$163,236		$159,824		$164,851		$3,412		$(1,615)		$163,051		$170,267		$(7,216)
Loans		376,877		388,817		336,778		(11,940)		40,099		384,112		324,731		59,381
Interest-bearing deposits with banks		53,100		51,972		29,130		1,128		23,970		49,495		30,030		19,465
Earning assets		605,245		613,839		541,666		(8,594)		63,579		608,891		536,131		72,760
Interest-bearing liabilities		486,143		480,450		403,573		5,693		82,570		474,992		390,816		84,176

(a) Excludes unrealized gain (loss)

Net interest income on a taxable-equivalent basis in the third quarter of 2023 was $4,268 million, an increase of $411 million (10.7 percent) over the third quarter of 2022. The increase was primarily due to the impact of rising interest rates on earning assets and the acquisition of MUB. Average earning assets were $63.6 billion (11.7 percent) higher than the third quarter of 2022, reflecting increases of $40.1 billion (11.9 percent) in average total loans and $24.0 billion (82.3 percent) in average interest-bearing deposits with banks. Average investment securities decreased $1.6 billion (1.0 percent) reflecting balance sheet repositioning and liquidity management.

Net interest income on a taxable-equivalent basis decreased $181 million (4.1 percent) on a linked quarter basis primarily due to the impact of deposit mix and pricing, partially offset by higher rates on earning assets and balance sheet repositioning and liquidity management. Average earning assets were $8.6 billion (1.4 percent) lower on a linked quarter basis, reflecting a decrease of $11.9 billion (3.1 percent) in average total loans partially offset by an increase of $1.1 billion (2.2 percent) in average interest-bearing deposits with banks. Average investment securities increased $3.4 billion (2.1 percent) reflecting balance sheet repositioning and liquidity management.

The net interest margin in the third quarter of 2023 was 2.81 percent, compared with 2.83 percent in the third quarter of 2022 and 2.90 percent in the second quarter of 2023. The decrease in the net interest margin from the prior year was primarily due to deposit mix and pricing partially offset by higher rates on earning assets and the acquisition of MUB. The decrease in the net interest margin on a linked quarter basis reflected deposit mix and pricing, partially offset by the impact of rising interest rates on earning assets and balance sheet repositioning and liquidity management.

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		U.S. Bancorp Third Quarter 2023 Results


AVERAGE LOANS
($ in millions)							Percent Change
	2Q 2023		2Q 2023		3Q 2022		3Q23 vs 2Q23			3Q23 vs 3Q22			YTD 2023		YTD 2022		Percent Change

Commercial		$130,415		$133,697		$123,745		(2.5	)		5.4		$	131,777	$	115,832		13.8
Lease financing		4,305		4,388		4,774		(1.9	)		(9.8	)		4,382		4,891		(10.4	)
Total commercial		134,720		138,085		128,519		(2.4	)		4.8			136,159		120,723		12.8

Commercial mortgages		42,665		43,214		30,002		(1.3	)		42.2			43,165		29,506		46.3
Construction and development		11,588		11,720		10,008		(1.1	)		15.8			11,758		10,035		17.2
Total commercial real estate		54,253		54,934		40,010		(1.2	)		35.6			54,923		39,541		38.9

Residential mortgages		114,627		117,606		84,018		(2.5	)		36.4			116,167		80,589		44.1

Credit card		26,883		26,046		24,105		3.2			11.5			26,171		22,907		14.2

Retail leasing		4,436		4,829		6,259		(8.1	)		(29.1	)		4,832		6,689		(27.8	)
Home equity and second mortgages		12,809		12,753		11,142		.4			15.0			12,779		10,757		18.8
Other		29,149		34,564		42,725		(15.7	)		(31.8	)		33,081		43,525		(24.0	)
Total other retail		46,394		52,146		60,126		(11.0	)		(22.8	)		50,692		60,971		(16.9	)

Total loans		$376,877		$388,817		$336,778		(3.1	)		11.9		$	384,112	$	324,731		18.3

Average total loans for the third quarter of 2023 were $40.1 billion (11.9 percent) higher than the third quarter of 2022. The increase was driven by growth in the Company’s legacy loan portfolio as well as from the MUB acquisition, which are primarily reflected in commercial loans, commercial mortgages and residential mortgages. Increases in total commercial loans (4.8 percent), total commercial real estate loans (35.6 percent), residential mortgages (36.4 percent) and credit card loans (11.5 percent) were partially offset by lower total other retail loans (22.8 percent). The increase in legacy portfolio commercial loans was due to higher utilization driven by working capital needs of corporate customers, slower pay-offs given higher volatility in the capital markets and core growth. The increase in legacy residential mortgages was driven by on-balance sheet loan activities and slower refinancing activity, partially offset by the sales late in the second quarter of 2023. The increase in credit card loans was primarily driven by higher spend volume and lower payment rates. The decrease in other retail loans was primarily due to balance sheet repositioning and capital management activities.

Average total loans were $11.9 billion (3.1 percent) lower than the second quarter of 2023, 0.9 percent lower when adjusted for balance sheet repositioning and capital management actions. Decreases in total commercial loans (2.4 percent), total commercial real estate loans (1.2 percent), residential mortgages (2.5 percent), and lower total other retail loans (11.0 percent) were partially offset by higher credit card loans (3.2 percent).

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		U.S. Bancorp Third Quarter 2023 Results


AVERAGE DEPOSITS
($ in millions)							Percent Change
	3Q 2023		2Q 2023		3Q 2022		3Q23 vs 2Q23			3Q23 vs 3Q22			YTD 2023		YTD 2022		Percent Change

Noninterest-bearing deposits	$	97,524	$	113,758	$	114,044		(14.3	)		(14.5	)	$	113,556	$	120,893		(6.1	)
Interest-bearing savings deposits
Interest checking		132,560		127,994		113,364		3.6			16.9			129,980		115,095		12.9
Money market savings		177,340		152,893		125,389		16.0			41.4			159,178		122,943		29.5
Savings accounts		50,138		58,993		67,782		(15.0	)		(26.0	)		59,251		67,632		(12.4	)
Total savings deposits		360,038		339,880		306,535		5.9			17.5			348,409		305,670		14.0
Time deposits		54,729		43,627		36,190		25.4			51.2			44,668		29,266		52.6
Total interest-bearing deposits		414,767		383,507		342,725		8.2			21.0			393,077		334,936		17.4

Total deposits	$	512,291	$	497,265	$	456,769		3.0			12.2		$	506,633	$	455,829		11.1

Average total deposits for the third quarter of 2023 were $55.5 billion (12.2 percent) higher than the third quarter of 2022, including the impact of the MUB acquisition. Average noninterest-bearing deposits decreased $16.5 billion (14.5 percent) driven by decreases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking, partially offset by the impact of the acquisition of MUB. Average total savings deposits were $53.5 billion (17.5 percent) higher year-over-year driven by increases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking, including the impact of the acquisition of MUB. Average time deposits were $18.5 billion (51.2 percent) higher than the prior year third quarter due to the acquisition of MUB partially offset by decreases in Wealth, Corporate, Commercial and Institutional Banking. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics.

Average total deposits increased $15.0 billion (3.0 percent) from the second quarter of 2023. On a linked quarter basis, average noninterest-bearing deposits decreased $16.2 billion (14.3 percent) driven by a product change for certain MUB retail checking accounts into interest checking accounts at conversion to create a better customer experience as well as pricing pressures from rising interest rates. Average total savings deposits increased $20.2 billion (5.9 percent) driven by increases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking. Average time deposits were $11.1 billion (25.4 percent) higher on a linked quarter basis mainly in Consumer and Business Banking. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics.

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		U.S. Bancorp Third Quarter 2023 Results


NONINTEREST INCOME
($ in millions)								Percent Change
	3Q 2023		2Q 2023			3Q 2022		3Q23 vs 2Q23			3Q23 vs 3Q22		YTD 2023			YTD 2022		Percent Change

Card revenue	$	412	$	422		$	391		(2.4	)		5.4	$	1,194		$	1,128		5.9
Corporate payment products revenue		198		190			190		4.2			4.2		577			520		11.0
Merchant processing services		427		436			406		(2.1	)		5.2		1,250			1,194		4.7
Trust and investment management fees		627		621			572		1.0			9.6		1,838			1,638		12.2
Service charges		334		324			317		3.1			5.4		982			984		(.2	)
Commercial products revenue		354		358			285		(1.1	)		24.2		1,046			841		24.4
Mortgage banking revenue		144		161			81		(10.6	)		77.8		433			423		2.4
Investment products fees		70		68			56		2.9			25.0		206			177		16.4
Securities gains (losses), net		--		3			1		nm			nm		(29	)		38		nm
Other		198		165			170		20.0			16.5		522			470		11.1
Total before balance sheet optimization		2,764		2,748			2,469		.6			11.9		8,019			7,413		8.2
Balance sheet optimization		--		(22	)		--		nm			nm		(22	)		--		nm

Total noninterest income	$	2,764	$	2,726		$	2,469		1.4			11.9	$	7,997		$	7,413		7.9

Third quarter noninterest income of $2,764 million was $295 million (11.9 percent) higher than the third quarter of 2022 driven by higher payment services revenue, trust and investment management fees, commercial products revenue, mortgage banking revenue, and other noninterest income. Payment services revenue increased $50 million (5.1 percent) compared with the third quarter of 2022. Within payment services, card revenue increased $21 million (5.4 percent) driven by higher spend volume and favorable rates, and merchant processing revenue increased $21 million (5.2 percent) due to higher sales volume. Trust and investment management fees increased $55 million (9.6 percent) driven by the acquisition of MUB and core business growth. Commercial products revenue increased $69 million (24.2 percent) driven by higher trading revenue and commercial loan fees. Mortgage banking revenue increased $63 million (77.8 percent) driven by higher gain on sale margins and a favorable change in the valuation of mortgage servicing rights, net of hedging activities. Other revenue increased $28 million (16.5 percent).

Noninterest income was $38 million (1.4 percent) higher in the third quarter of 2023 compared with the second quarter of 2023. Excluding notable items of $(22) million in the second quarter of 2023, third quarter noninterest income increased $16 million (0.6 percent) compared with the second quarter of 2023. The increase was primarily driven by higher other revenue.

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		U.S. Bancorp Third Quarter 2023 Results


NONINTEREST EXPENSE
($in millions)							Percent Change
	3Q		2Q		3Q		3Q23 vs			3Q23 vs			YTD		YTD		Percent
	2023		2023		2022		2Q23			3Q22			2023		2022		Change

Compensation and employee benefits	$	2,615	$	2,646	$	2,260		(1.2	)		15.7		$	7,907	$	6,755		17.1
Net occupancy and equipment		313		316		272		(.9	)		15.1			950		806		17.9
Professional services		127		141		131		(9.9	)		(3.1	)		402		356		12.9
Marketing and business development		176		122		126		44.3			39.7			420		312		34.6
Technology and communications		511		522		427		(2.1	)		19.7			1,536		1,267		21.2
Other intangibles		161		159		43		1.3			nm			480		130		nm
Other		343		353		336		(2.8	)		2.1			1,121		998		12.3
Total before merger and integration		4,246		4,259		3,595		(.3	)		18.1			12,816		10,624		20.6
Merger and integration charges		284		310		42		(8.4	)		nm			838		239		nm

Total noninterest expense	$	4,530	$	4,569	$	3,637		(.9	)		24.6		$	13,654	$	10,863		25.7

Third quarter noninterest expense of $4,530 million was $893 million (24.6 percent) higher than the third quarter of 2022. Excluding merger and integration-related charges of $284 million in the third quarter of 2023 and $42 million in the third quarter of 2022, third quarter noninterest expense increased $651 million (18.1 percent) compared with the third quarter of 2022, driven by the impact of MUB operating expenses, core deposit intangible amortization expense, and higher compensation expense. Compensation expense increased $355 million (15.7 percent) compared with the third quarter of 2022 primarily due to MUB expense as well as merit and hiring to support business growth. Intangible amortization increased $118 million driven by the core deposit intangible created as a result of the MUB acquisition.

Noninterest expense decreased $39 million (0.9 percent) on a linked quarter basis. Excluding merger and integration-related charges of $284 million in the third quarter of 2023 and $310 million in the second quarter of 2023, third quarter noninterest expense decreased $13 million (0.3 percent) from the second quarter of 2023 driven by lower compensation expense offset by an increase in marketing and business development. Compensation expense decreased $31 million (1.2 percent) compared to the second quarter of 2023 primarily due to prudent expense management and continued focus on operational efficiency. Marketing and business development expense increased $54 million (44.3 percent) as the Company continues to invest in its national brand and global reach.

Provision for Income Taxes

The provision for income taxes for the third quarter of 2023 resulted in a tax rate of 23.3 percent on a taxable-equivalent basis (effective tax rate of 22.0 percent), compared with 22.0 percent on a taxable-equivalent basis (effective tax rate of 20.9 percent) in the third quarter of 2022, and a tax rate of 23.3 percent on a taxable-equivalent basis (effective tax rate of 21.8 percent) in the second quarter of 2023.

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		U.S. Bancorp Third Quarter 2023 Results


ALLOWANCE FOR CREDIT LOSSES
($ in millions)	3Q				2Q				1Q					4Q					3Q
	2023		% (a)		2023		% (a)		2023			% (a)		2022			% (a)		2022		% (a)
Balance, beginning of period	$	7,695			$	7,523			$	7,404				$	6,455				$	6,255
Change in accounting principle (b)		--				--				(62	)				--					--
Allowance for acquired credit losses (c)		--				--				127					336					--
Net charge-offs
Total excluding acquisition and optimization impacts		420		.44		340		.35		282			.30		210			.23		162		.19
Balance sheet optimization impact		--				309				--					189					--
Acquisition impact		--				--				91					179					--

Total net charge-offs		420		.44		649		.67		373			.39		578			.64		162		.19
Provision for credit losses
Total excluding acquisition and optimization impacts		515				578				427					401					362
Balance sheet optimization impact		--				243				--					129					--
Acquisition impact of initial provision		--				--				--					662					--

Total provision for credit losses		515				821				427					1,192					362
Other changes		--				--				--					(1	)				--

Balance, end of period	$	7,790			$	7,695			$	7,523				$	7,404				$	6,455

Components
Allowance for loan losses	$	7,218			$	7,164			$	7,020				$	6,936				$	6,017
Liability for unfunded credit commitments		572				531				503					468					438

Total allowance for credit losses	$	7,790			$	7,695			$	7,523				$	7,404				$	6,455

Allowance for credit losses as a percentage of
Period-end loans (%)		2.08				2.03				1.94					1.91					1.88
Nonperforming loans (%)		615				739				660					762					1,025
Nonperforming assets (%)		595				709				637					729					953

(a) Annualized and calculated on average loan balances (b) Effective January 1, 2023, the Company adopted accounting guidance which removed the separate recognition and measurement of troubled debt restructurings (c) Allowance for purchased credit deteriorated and charged-off loans acquired from MUB


SUMMARY OF NET CHARGE-OFFS
($ in millions)	3Q						2Q						1Q						4Q						3Q
	2023			% (a)			2023			% (a)			2023			% (a)			2022			% (a)			2022			% (a)
Net charge-offs
Commercial	$	86			.26		$	87			.26		$	42			.13		$	133			.41		$	24			.08
Lease financing		6			.55			3			.27			5			.46			5			.43			3			.25

Total commercial		92			.27			90			.26			47			.14			138			.41			27			.08
Commercial mortgages		49			.46			26			.24			115			1.07			25			.28			(6	)		(.08	)
Construction and development		--			--			--			--			2			.07			17			.63			--			--

Total commercial real estate		49			.36			26			.19			117			.85			42			.36			(6	)		(.06	)
Residential mortgages		(3	)		(.01	)		114			.39			(1	)		--			(3	)		(.01	)		(5	)		(.02	)
Credit card		220			3.25			199			3.06			175			2.78			175			2.76			119			1.96
Retail leasing		2			.18			1			.08			1			.08			1			.07			1			.06
Home equity and second mortgages		1			.03			(1	)		(.03	)		(1	)		(.03	)		--			--			(2	)		(.07	)
Other		59			.80			220			2.55			35			.40			225			2.17			28			.26

Total other retail		62			.53			220			1.69			35			.26			226			1.52			27			.18

Total net charge-offs	$	420			.44		$	649			.67		$	373			.39		$	578			.64		$	162			.19

Gross charge-offs	$	508					$	755					$	469					$	669					$	275
Gross recoveries	$	88					$	106					$	96					$	91					$	113

(a) Annualized and calculated on average loan balances

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		U.S. Bancorp Third Quarter 2023 Results

The Company’s provision for credit losses for the third quarter of 2023 was $515 million, compared with $821 million in the second quarter of 2023 and $362 million in the third quarter of 2022. The third quarter of 2023 provision was $306 million (37.3 percent) lower than the second quarter of 2023 and $153 million (42.3 percent) higher than the third quarter of 2022. Excluding the second quarter of 2023 notable item related to balance sheet optimization activities, the provision for credit losses for the third quarter of 2023 decreased $63 million (10.9 percent) compared with the second quarter of 2023. During 2022 and continuing into 2023, economic uncertainty and recession risk have increased due to rising interest rates, inflationary concerns, market volatility, and pressure on corporate earnings related to these factors. Expected loss estimates consider various factors including customer specific information impacting changes in risk ratings, projected delinquencies, and the impact of economic deterioration on borrowers’ liquidity and ability to repay. While these credit quality factors have continued to perform better than pre-pandemic levels, changing economic conditions have contributed to increased provision for credit losses. Consumer portfolio credit losses are normalizing amid rising delinquencies and lower collateral values. Some stress in commercial portfolios is anticipated as the impact of rising interest rates filters through companies’ financials. Commercial real estate valuations are also affected by rising interest rates and the changing demand for office properties.

Total net charge-offs in the third quarter of 2023 were $420 million, compared with $649 million in the second quarter of 2023 and $162 million in the third quarter of 2022. Net charge-offs for the second quarter of 2023 included $309 million of charge-offs related to balance sheet optimization activities. The net charge-off ratio was 0.44 percent in the third quarter of 2023, compared with 0.67 percent in the second quarter of 2023 (0.35 percent excluding the impact of the balance sheet optimization activities) and 0.19 percent in the third quarter of 2022. Net charge-offs, excluding the impact of the second quarter of 2023 balance sheet optimization activities, increased $80 million (23.5 percent) on a linked quarter basis reflecting higher charge-offs in most loan categories consistent with normalizing credit conditions and adverse conditions in commercial real estate.

The allowance for credit losses was $7,790 million at September 30, 2023, compared with $7,695 million at June 30, 2023, and $6,455 million at September 30, 2022. The linked quarter increase in the allowance for credit losses was primarily driven by normalizing credit losses and commercial real estate credit quality, partially offset by relative stability in economic conditions. The ratio of the allowance for credit losses to period-end loans was 2.08 percent at September 30, 2023, compared with 2.03 percent at June 30, 2023, and 1.88 percent at September 30, 2022. The ratio of the allowance for credit losses to nonperforming loans was 615 percent at September 30, 2023, compared with 739 percent at June 30, 2023, and 1,025 percent at September 30, 2022.

Nonperforming assets were $1,310 million at September 30, 2023, compared with $1,085 million at June 30, 2023, and $677 million at September 30, 2022. The ratio of nonperforming assets to loans and other real estate was 0.35 percent at September 30, 2023, compared with 0.29 percent at June 30, 2023, and 0.20 percent at September 30, 2022. The increase in nonperforming assets on a linked quarter basis was primarily due to higher commercial real estate nonperforming loans, partially offset by lower nonperforming residential mortgages. The year-over-year increase in nonperforming assets primarily reflected nonperforming assets acquired from MUB, along with higher commercial real estate nonperforming loans. Accruing loans 90 days or more past due were $569 million at September 30, 2023, compared with $474 million at June 30, 2023, and $393 million at September 30, 2022.

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		U.S. Bancorp Third Quarter 2023 Results


DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES
(Percent)	Sep 30 2023		Jun 30 2023		Mar 31 2023		Dec 31 2022		Sep 30 2022
Delinquent loan ratios - 90 days or more past due
Commercial		.05		.04		.05		.07		.03
Commercial real estate		--		--		.01		.01		.05
Residential mortgages		.11		.08		.08		.08		.10
Credit card		1.17		1.02		1.00		.88		.74
Other retail		.13		.12		.12		.12		.11
Total loans		.15		.12		.13		.13		.11

Delinquent loan ratios - 90 days or more past due and nonperforming loans
Commercial		.24		.21		.18		.19		.12
Commercial real estate		1.33		.87		.98		.62		.46
Residential mortgages		.25		.26		.33		.36		.35
Credit card		1.17		1.02		1.01		.88		.74
Other retail		.41		.39		.37		.37		.32
Total loans		.49		.40		.42		.38		.30


ASSET QUALITY (a)
($ in millions)
	Sep 30		Jun 30		Mar 31		Dec 31		Sep 30
	2023		2023		2023		2022		2022
Nonperforming loans
Commercial	$	231	$	204	$	150	$	139	$	92
Lease financing		25		27		28		30		30
Total commercial		256		231		178		169		122
Commercial mortgages		566		361		432		251		110
Construction and development		155		113		103		87		57
Total commercial real estate		721		474		535		338		167
Residential mortgages		161		207		292		325		211
Credit card		--		--		1		1		--
Other retail		129		129		133		139		130
Total nonperforming loans		1,267		1,041		1,139		972		630
Other real estate		25		25		23		23		24
Other nonperforming assets		18		19		19		21		23
Total nonperforming assets	$	1,310	$	1,085	$	1,181	$	1,016	$	677

Accruing loans 90 days or more past due	$	569	$	474	$	494	$	491	$	393

Nonperforming assets to loans plus ORE (%)		.35		.29		.30		.26		.20

(a) Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due

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		U.S. Bancorp Third Quarter 2023 Results


COMMON SHARES
(Millions)	3Q 2023		2Q 2023		1Q 2023			4Q 2022		3Q 2022
Beginning shares outstanding		1,533		1,533		1,531			1,486		1,486
Shares issued for stock incentive plans, acquisitions and other corporate purposes		24		--		3			45		--
Shares repurchased		--		--		(1	)		--		--

Ending shares outstanding		1,557		1,533		1,533			1,531		1,486


CAPITAL POSITION										Preliminary Data
($in millions)	Sep 30 2023			Jun 30 2023			Mar 31 2023			Dec 31 2022			Sep 30 2022

Total U.S. Bancorp shareholders’ equity	$	53,113		$	53,019		$	52,989		$	50,766		$	47,513

Basel III Standardized Approach (a)
Common equity tier 1 capital	$	44,655		$	42,944		$	42,027		$	41,560		$	44,094
Tier 1 capital		51,906			50,187			49,278			48,813			51,346
Total risk-based capital		61,737			60,334			59,920			59,015			60,738

Common equity tier 1 capital ratio		9.7	%		9.1	%		8.5	%		8.4	%		9.7	%
Tier 1 capital ratio		11.2			10.6			10.0			9.8			11.2
Total risk-based capital ratio		13.4			12.7			12.1			11.9			13.3
Leverage ratio		7.9			7.5			7.5			7.9			8.7

Tangible common equity to tangible assets (b)		5.0			4.8			4.8			4.5			5.2
Tangible common equity to risk-weighted assets (b)		7.0			6.8			6.5			6.0			6.7

Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (b)		9.5			8.9			8.3			8.1			9.4

(a) Amounts and ratios calculated in accordance with transitional regulatory requirements related to the current expected credit losses methodology
(b) See Non-GAAP Financial Measures reconciliation on page 18

Total U.S. Bancorp shareholders’ equity was $53.1 billion at September 30, 2023, compared with $53.0 billion at June 30, 2023 and $47.5 billion at September 30, 2022. The third quarter of 2023 reflects the impact of the issuance of 24 million shares of common stock to Mitsubishi UFG Financial Group, Inc. (“MUFG”), for which the proceeds from the issuance were used to repay a portion of the debt obligation with MUFG for the acquisition of MUB. The Company suspended all common stock repurchases at the beginning of the third quarter of 2021, except for those done exclusively in connection with its stock-based compensation programs, due to the acquisition of MUB. The Company will evaluate its share repurchases in connection with the potential capital requirements given the proposed regulatory capital rules and related landscape.

All regulatory ratios continue to be in excess of “well-capitalized” requirements. The common equity tier 1 capital to risk-weighted assets ratio using the Basel III standardized approach was 9.7 percent at September 30, 2023, compared with 9.1 percent at June 30, 2023, and 9.7 percent at September 30, 2022. The common equity tier 1 capital to risk-weighted assets ratio, reflecting the full implementation of the current expected credit losses methodology was 9.5 percent at September 30, 2023, compared with 8.9 percent at June 30, 2023, and 9.4 percent at September 30, 2022.

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		U.S. Bancorp Third Quarter 2023 Results

Investor Conference Call

On Wednesday, October 18, 2023 at 7 a.m. CT, Chairman, President and Chief Executive Officer Andy Cecere and Senior Executive Vice President and Chief Financial Officer John Stern will host a conference call to review the financial results. The live conference call will be available online or by telephone. To access the webcast and presentation, visit the U.S. Bancorp website at usbank.com and click on “About Us”, “Investor Relations” and “Webcasts & Presentations.” To access the conference call from locations within the United States and Canada, please dial 877-692-8955. Participants calling from outside the United States and Canada, please dial 234-720-6979. The access code for all participants is 6030554. For those unable to participate during the live call, a replay will be available at approximately 10 a.m. CT on Wednesday, October 18, 2023. To access the replay, please visit the U.S. Bancorp website at usbank.com and click on “About Us”, “Investor Relations” and “Webcasts & Presentations.”


About U.S. Bancorp

U.S. Bancorp, with approximately 75,000 employees and $668 billion in assets as of September 30, 2023, is the parent company of U.S. Bank National Association. Headquartered in Minneapolis, the company serves millions of customers locally, nationally and globally through a diversified mix of businesses including consumer banking, business banking, commercial banking, institutional banking, payments and wealth management. U.S. Bancorp has been recognized for its approach to digital innovation, community partnerships and customer service, including being named one of the 2023 World’s Most Ethical Companies and Fortune’s most admired superregional bank. To learn more, please visit the U.S. Bancorp website at usbank.com and click on “About Us.”

Forward-looking Statements

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:

This press release 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, future economic conditions and the anticipated future revenue, expenses, financial condition, asset quality, capital and liquidity levels, plans, prospects and operations of U.S. Bancorp. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “projects,” “forecasts,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.”

Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those set forth in forward-looking statements, including the following risks and uncertainties:

•

Deterioration in general business and economic conditions or turbulence in domestic or global financial markets, which could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price volatility;

•

Turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions, which could affect the ability of depository institutions, including U.S. Bank National Association, to attract and retain depositors, and could affect the ability of financial services providers, including U.S. Bancorp, to borrow or raise capital;

•

Increases in Federal Deposit Insurance Corporation (“FDIC”) assessments due to bank failures;

•

Actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions;

•

Changes to regulatory capital, liquidity and resolution-related requirements applicable to large banking organizations in response to recent developments affecting the banking sector;

•

Changes to statutes, regulations, or regulatory policies or practices, including capital and liquidity requirements, and the enforcement and interpretation of such laws and regulations, and U.S. Bancorp’s ability to address or satisfy those requirements and other requirements or conditions imposed by regulatory entities;

•

Changes in interest rates;

•

Increases in unemployment rates;

•

Deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans;

•

Risks related to originating and selling mortgages, including repurchase and indemnity demands, and related to U.S. Bancorp’s role as a loan servicer;

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		U.S. Bancorp Third Quarter 2023 Results

•

Impacts of current, pending or future litigation and governmental proceedings;

•

Increased competition from both banks and non-banks;

•

Effects of climate change and related physical and transition risks;

•

Changes in customer behavior and preferences and the ability to implement technological changes to respond to customer needs and meet competitive demands;

•

Breaches in data security;

•

Failures or disruptions in or breaches of U.S. Bancorp’s operational, technology or security systems or infrastructure, or those of third parties;

•

Failures to safeguard personal information;

•

Impacts of pandemics, including the COVID-19 pandemic, natural disasters, terrorist activities, civil unrest, international hostilities and geopolitical events;

•

Impacts of supply chain disruptions, rising inflation, slower growth or a recession;

•

Failure to execute on strategic or operational plans;

•

Effects of mergers and acquisitions and related integration;

•

Effects of critical accounting policies and judgments;

•

Effects of changes in or interpretations of tax laws and regulations;

•

Management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk; and

•

The risks and uncertainties more fully discussed in the section entitled “Risk Factors” of U.S. Bancorp’s Form 10-K for the year ended December 31, 2022, and subsequent filings with the Securities and Exchange Commission.

In addition, U.S. Bancorp’s acquisition of MUB presents risks and uncertainties, including, among others: the risk that the cost savings, any revenue synergies and other anticipated benefits of the acquisition may not be realized or may take longer than anticipated to be realized; and the possibility that the combination of MUB with U.S. Bancorp, including the integration of MUB, may be more costly or difficult to complete than anticipated or have unanticipated adverse results.

In addition, factors other than these risks also could adversely affect U.S. Bancorp’s results, and the reader should not consider these risks to be a complete set of all potential risks or uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements. 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.

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		U.S. Bancorp Third Quarter 2023 Results

Non-GAAP Financial Measures

In addition to capital ratios defined by banking regulators, the Company considers various other measures when evaluating capital utilization and adequacy, including:

•

Tangible common equity to tangible assets

•

Tangible common equity to risk-weighted assets

•

Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology, and

•

Return on tangible common equity.

These measures are viewed by management as useful additional methods of evaluating the Company’s utilization of its capital held and the level of capital available to withstand unexpected negative market or economic conditions. Additionally, presentation of these measures allows investors, analysts and banking regulators to assess the Company’s capital position and use of capital relative to other financial services companies. These measures are not defined in generally accepted accounting principles (“GAAP”), or are not currently effective or defined in banking regulations. In addition, certain of these measures differ from currently effective capital ratios defined by banking regulations principally in that the currently effective ratios, which are subject to certain transitional provisions, temporarily exclude the impact of the 2020 adoption of accounting guidance related to impairment of financial instruments based on the current expected credit losses methodology. As a result, these measures disclosed by the Company may be considered non-GAAP financial measures. Management believes this information helps investors assess trends in the Company’s capital utilization and adequacy.

The Company also discloses net interest income and related ratios and analysis on a taxable-equivalent basis, which may also be considered non-GAAP financial measures. The Company believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures, including the efficiency ratio, tangible efficiency ratio and net interest margin, utilize net interest income on a taxable-equivalent basis.

The adjusted return on average assets, adjusted return on average common equity, adjusted efficiency ratio, adjusted return on tangible common equity, adjusted net income and adjusted diluted earnings per common share exclude notable items related to the acquisition of MUB, and other balance sheet repositioning and capital management actions taken by the Company. Management uses these measures in their analysis of the Company’s performance and believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods.

There may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider the consolidated financial statements and other financial information contained in this press release in their entirety, and not to rely on any single financial measure. A table follows that shows the Company’s calculation of these non-GAAP financial measures.

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CONSOLIDATED STATEMENT OF INCOME
(Dollars and Shares in Millions, Except Per Share Data)	Three Months Ended September 30,						Nine Months Ended September 30,
(Unaudited)	2023			2022			2023			2022
Interest Income
Loans		$5,700			$3,603			$16,582			$9,071
Loans held for sale		42			49			111			163
Investment securities		1,152			867			3,303			2,390
Other interest income		860			209			2,248			347
Total interest income		7,754			4,728			22,244			11,971
Interest Expense
Deposits		2,580			534			6,024			791
Short-term borrowings		450			169			1,639			247
Long-term debt		488			198			1,296			498
Total interest expense		3,518			901			8,959			1,536
Net interest income		4,236			3,827			13,285			10,435
Provision for credit losses		515			362			1,763			785
Net interest income after provision for credit losses		3,721			3,465			11,522			9,650
Noninterest Income
Card revenue		412			391			1,194			1,128
Corporate payment products revenue		198			190			577			520
Merchant processing services		427			406			1,250			1,194
Trust and investment management fees		627			572			1,838			1,638
Service charges		334			317			982			984
Commercial products revenue		354			285			1,046			841
Mortgage banking revenue		144			81			403			423
Investment products fees		70			56			206			177
Securities gains (losses), net		--			1			(29	)		38
Other		198			170			530			470
Total noninterest income		2,764			2,469			7,997			7,413
Noninterest Expense
Compensation and employee benefits		2,615			2,260			7,907			6,755
Net occupancy and equipment		313			272			950			806
Professional services		127			131			402			356
Marketing and business development		176			126			420			312
Technology and communications		511			427			1,536			1,267
Other intangibles		161			43			480			130
Merger and integration charges		284			42			838			239
Other		343			336			1,121			998
Total noninterest expense		4,530			3,637			13,654			10,863
Income before income taxes		1,955			2,297			5,865			6,200
Applicable income taxes		431			481			1,268			1,292
Net income		1,524			1,816			4,597			4,908
Net (income) loss attributable to noncontrolling interests		(1	)		(4	)		(15	)		(8	)
Net income attributable to U.S. Bancorp		$1,523			$1,812			$4,582			$4,900
Net income applicable to U.S. Bancorp common shareholders		$1,412			$1,718			$4,285			$4,648
Earnings per common share		$.91			$1.16			$2.79			$3.13
Diluted earnings per common share		$.91			$1.16			$2.79			$3.13
Dividends declared per common share		$.48			$.48			$1.44			$1.40
Average common shares outstanding		1,548			1,486			1,538			1,485
Average diluted common shares outstanding		1,549			1,486			1,538			1,486


CONSOLIDATED ENDING BALANCE SHEET

(Dollars in Millions)	September 30, 2023			December 31, 2022			September 30, 2022
Assets		(Unaudited	)					(Unaudited	)
Cash and due from banks		$64,354			$53,542			$41,652
Investment securities
Held-to-maturity		85,342			88,740			85,574
Available-for-sale		67,207			72,910			68,523
Loans held for sale		2,336			2,200			3,647
Loans
Commercial		133,319			135,690			131,687
Commercial real estate		54,131			55,487			40,329
Residential mortgages		115,055			115,845			86,274
Credit card		27,080			26,295			24,538
Other retail		45,649			54,896			59,880
Total loans		375,234			388,213			342,708
Less allowance for loan losses		(7,218	)		(6,936	)		(6,017	)
Net loans		368,016			381,277			336,691
Premises and equipment		3,616			3,858			3,155
Goodwill		12,472			12,373			10,125
Other intangible assets		6,435			7,155			4,604
Other assets		58,261			52,750			47,002
Total assets		$668,039			$674,805			$600,973

Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing		$98,006			$137,743			$115,206
Interest-bearing		420,352			387,233			355,942
Total deposits		518,358			524,976			471,148
Short-term borrowings		21,900			31,216			25,066
Long-term debt		43,074			39,829			32,228
Other liabilities		31,129			27,552			24,553
Total liabilities		614,461			623,573			552,995
Shareholders’ equity
Preferred stock		6,808			6,808			6,808
Common stock		21			21			21
Capital surplus		8,684			8,712			8,590
Retained earnings		74,023			71,901			71,782
Less treasury stock		(24,168	)		(25,269	)		(27,188	)
Accumulated other comprehensive income (loss)		(12,255	)		(11,407	)		(12,500	)
Total U.S. Bancorp shareholders’ equity		53,113			50,766			47,513
Noncontrolling interests		465			466			465
Total equity		53,578			51,232			47,978
Total liabilities and equity		$668,039			$674,805			$600,973


NON-GAAP FINANCIAL MEASURES

(Dollars in Millions, Unaudited)	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Total equity		$53,578			$53,484			$53,454			$51,232			$47,978
Preferred stock		(6,808	)		(6,808	)		(6,808	)		(6,808	)		(6,808	)
Noncontrolling interests		(465	)		(465	)		(465	)		(466	)		(465	)
Goodwill (net of deferred tax liability) (1)		(11,470	)		(11,493	)		(11,575	)		(11,395	)		(9,165	)
Intangible assets (net of deferred tax liability), other than mortgage servicing rights		(2,370	)		(2,490	)		(2,611	)		(2,792	)		(735	)
Tangible common equity (a)		32,465			32,228			31,995			29,771			30,805

Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements related to the current expected credit losses methodology implementation		44,655			42,944			42,027			41,560			44,094
Adjustments (2)		(867	)		(866	)		(866	)		(1,299	)		(1,300	)
Common equity tier 1 capital, reflecting the full implementation of the current expected credit losses methodology (b)		43,788			42,078			41,161			40,261			42,794

Total assets		668,039			680,825			682,377			674,805			600,973
Goodwill (net of deferred tax liability) (1)		(11,470	)		(11,493	)		(11,575	)		(11,395	)		(9,165	)
Intangible assets (net of deferred tax liability), other than mortgage servicing rights		(2,370	)		(2,490	)		(2,611	)		(2,792	)		(735	)
Tangible assets (c)		654,199			666,842			668,191			660,618			591,073

Risk-weighted assets, determined in accordance with transitional regulatory capital requirements related to the current expected credit losses methodology implementation (d)		462,250	*		473,393			494,048			496,500			456,928
Adjustments (3)		(736	)*		(735	)		(735	)		(620	)		(337	)
Risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (e)		461,514	*		472,658			493,313			495,880			456,591

Ratios*
Tangible common equity to tangible assets (a)/(c)		5.0	%		4.8	%		4.8	%		4.5	%		5.2	%
Tangible common equity to risk-weighted assets (a)/(d)		7.0			6.8			6.5			6.0			6.7
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (b)/(e)		9.5			8.9			8.3			8.1			9.4
	Three Months Ended

	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Net income applicable to U.S. Bancorp common shareholders		$1,412			$1,281			$1,592			$853			$1,718
Intangibles amortization (net-of-tax)		127			126			126			67			34
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization		1,539			1,407			1,718			920			1,752
Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangible amortization (f)		6,106			5,643			6,967			3,650			6,951

Average total equity		54,283			54,287			53,132			49,731			50,284
Average preferred stock		(6,808	)		(6,808	)		(6,808	)		(6,808	)		(6,808	)
Average noncontrolling interests		(466	)		(465	)		(465	)		(466	)		(464	)
Average goodwill (net of deferred tax liability) (1)		(11,493	)		(11,527	)		(11,444	)		(9,202	)		(9,192	)
Average intangible assets (net of deferred tax liability), other than mortgage servicing rights		(2,418	)		(2,530	)		(2,681	)		(1,637	)		(758	)
Average tangible common equity (g)		33,098			32,957			31,734			31,618			33,062

Return on tangible common equity (f)/(g)		18.4	%		17.1	%		22.0	%		11.5	%		21.0	%

Net interest income		$4,236			$4,415			$4,634			$4,293			$3,827
Taxable-equivalent adjustment (4)		32			34			34			32			30
Net interest income, on a taxable-equivalent basis		4,268			4,449			4,668			4,325			3,857

Net interest income, on a taxable-equivalent basis
(as calculated above)		4,268			4,449			4,668			4,325			3,857
Noninterest income		2,764			2,726			2,507			2,043			2,469
Less: Securities gains (losses), net		--			3			(32	)		(18	)		1
Total net revenue, excluding net securities gains (losses) (h)		7,032			7,172			7,207			6,386			6,325

Noninterest expense (i)		4,530			4,569			4,555			4,043			3,637
Less: Intangible amortization		161			159			160			85			43
Noninterest expense, excluding intangible amortization (j)		4,369			4,410			4,395			3,958			3,594

Efficiency ratio (i)/(h)		64.4	%		63.7	%		63.2	%		63.3	%		57.5	%
Tangible efficiency ratio (j)/(h)		62.1			61.5			61.0			62.0			56.8

*	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 the estimated increase in the allowance for credit losses related to the adoption of the current expected credit losses 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 current expected credit losses 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.


NON-GAAP FINANCIAL MEASURES
	Three Months Ended									Nine Months Ended
(Dollars and Shares in Millions, Except Per Share Data, Unaudited)	September 30, 2023			June 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
Net income applicable to U.S. Bancorp common shareholders	$	1,412		$	1,281		$	1,718		$	4,285		$	4,648
Less: Notable items, including the impact of earnings allocated to participating stock awards (1), (2)		(212	)		(429	)		(33	)		(822	)		(186	)
Net income applicable to U.S. Bancorp common shareholders, excluding notable items (a)		1,624			1,710			1,751			5,107			4,834

Average diluted common shares outstanding (b)		1,549			1,533			1,486			1,538			1,486
Diluted earnings per common share, excluding notable items (a)/(b)	$	1.05		$	1.12		$	1.18		$	3.32		$	3.25

Net income attributable to U.S. Bancorp	$	1,523
Less: Notable items (1)		(213	)
Net income attributable to U.S. Bancorp, excluding notable items		1,736
Annualized net income attributable to U.S. Bancorp, excluding notable items (c)		6,887

Average assets (d)		663,999
Return on average assets, excluding notable items (c)/(d)		1.04	%

Net income applicable to U.S. Bancorp common shareholders, excluding notable items (as calculated above)	$	1,624
Annualized net income applicable to U.S. Bancorp common shareholders, excluding notable items (e)		6,443

Average common equity (f)		47,009
Return on average common equity, excluding notable items (e)/(f)		13.7	%

Net income applicable to U.S. Bancorp common shareholders	$	1,412
Intangibles amortization (net-of-tax)		127
Less: Notable items, including the impact of earnings allocated to participating stock awards (1)		(212	)
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization and notable items		1,751
Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangible amortization and notable items (g)		6,947

Average total equity		54,283
Average preferred stock		(6,808	)

Average noncontrolling interests		(466	)
Average goodwill (net of deferred tax liability) (1)		(11,493	)
Average intangible assets (net of deferred tax liability), other than mortgage servicing rights		(2,418	)

Average tangible common equity (h)		33,098
Return on tangible common equity, excluding notable items (g)/(h)		21.0	%

Net interest income	$	4,236
Taxable-equivalent adjustment (3)		32
Net interest income, on a taxable-equivalent basis		4,268

Net interest income, on a taxable-equivalent basis (as calculated above)		4,268
Noninterest income		2,764
Less: Securities gains (losses), net		--
Total net revenue, excluding net securities gains (losses) (i)		7,032
Noninterest expense		4,530
Less: Notable items (1)		284
Noninterest expense, excluding notable items (j)		4,246

Efficiency ratio, excluding notable items (j)/(i)		60.4	%
	Three Months Ended
	June 30, 2023			March 31, 2023			December 31, 2022
Net charge-offs	$	649		$	373		$	578
Less: Notable items (4)		309			91			368
Net charge-offs, excluding notable items		340			282			210
Annualized net charge-offs, excluding notable items (k)		1,364			1,144			833

Average loan balances (l)		388,817			386,750			359,811
Net charge-off ratio, excluding notable items (k)/(l)		.35	%		.30	%		.23	%

(1)

Notable items for the three months ended September 30, 2023 included $284 million ($213 million net-of-tax) of merger and integration-related charges. Notable items of $575 million ($432 million net-of-tax) for the three months ended June 30, 2023 included $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $310 million of merger and integration-related charges and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions. Notable items for the three months ended September 30, 2022 included $42 million ($33 million net-of-tax) of merger and integration-related charges.

(2)

Notable items of $1.1 billion ($828 million net-of-tax) for the nine months ended September 30, 2023 included $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $838 million of merger and integration-related charges and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions. Notable items for the nine months ended September 30, 2022 included $239 million ($186 million net-of-tax) of merger and integration-related charges.

(3)	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.

(4)

Notable items for the three months ended June 30, 2023 included $309 million of net charge-offs related to balance sheet repositioning and capital management actions. Notable items for the three months ended March 31, 2023 included $91 million of net charge-offs related to uncollectible acquired loans, considered purchase credit deteriorated as of the date of the acquisition. Notable items for the three months ended December 31, 2022 included $179 million of net charge-offs related to uncollectible MUB acquired loans as well as $189 million of net charge-offs related to balance sheet repositioning and capital management actions.

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LINE OF BUSINESS FINANCIAL PERFORMANCE																		Preliminary data
($ in millions)	Net Income Attributable to U.S. Bancorp								Percent Change						Net Income Attributable to U.S. Bancorp
Business Line	3Q 2023			2Q 2023			3Q 2022		3Q23 vs 2Q23			3Q23 vs 3Q22			YTD 2023			YTD 2022			Percent Change
Wealth, Corporate, Commercial and Institutional Banking	$	838		$	871		$	945		(3.8	)		(11.3	)	$	2,778		$	2,341			18.7
Consumer and Business Banking		550			566			434		(2.8	)		26.7			1,758			1,278			37.6
Payment Services		274			351			334		(21.9	)		(18.0	)		968			1,107			(12.6	)
Treasury and Corporate Support		(139	)		(427	)		99		67.4			nm			(922	)		174			nm
Consolidated Company	$	1,523		$	1,361		$	1,812		11.9			(15.9	)	$	4,582		$	4,900			(6.5	)

	Income Before Provision and Taxes								Percent Change						Income Before Provision and Taxes
	3Q 2023			2Q 2023			3Q 2022		3Q23 vs 2Q23			3Q23 vs 3Q22			YTD 2023			YTD 2022			Percent Change
Wealth, Corporate, Commercial and Institutional Banking	$	1,245		$	1,324		$	1,331		(6.0	)		(6.5	)	$	3,969		$	3,302			20.2
Consumer and Business Banking		741			770			620		(3.8	)		19.5			2,374			1,719			38.1
Payment Services		764			782			731		(2.3	)		4.5			2,223			2,113			5.2
Treasury and Corporate Support		(248	)		(270	)		7		8.1			nm			(838	)		(63	)		nm
Consolidated Company	$	2,502		$	2,606		$	2,689		(4.0	)		(7.0	)	$	7,728		$	7,071			9.3

Lines of Business

The Company’s major lines of business are Wealth, Corporate, Commercial and Institutional Banking, Consumer and Business Banking, Payment Services, and Treasury and Corporate Support. These operating segments are components of the Company about which financial information is prepared and is evaluated regularly by management in deciding how to allocate resources and assess performance. Business line results are derived from the Company’s business unit profitability reporting systems by specifically attributing managed balance sheet assets, deposits and other liabilities and their related income or expense. Designations, assignments and allocations change from time to time as management systems are enhanced, methods of evaluating performance or product lines change or business segments are realigned to better respond to the Company’s diverse customer base. During 2023, certain organization and methodology changes were made, including the Company combining its Wealth Management and Investment Services and Corporate and Commercial Banking lines of businesses to create the Wealth, Corporate, Commercial and Institutional Banking line of business during the third quarter. Prior period results were restated and presented on a comparable basis.

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WEALTH, CORPORATE, COMMERCIAL AND INSTITUTIONAL BANKING															Preliminary data
($ in millions)							Percent Change
	3Q 2023		2Q 2023		3Q 2022		3Q23 vs 2Q23			3Q23 vs 3Q22			YTD 2023		YTD 2022		Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,472	$	1,559	$	1,439		(5.6	)		2.3		$	4,691	$	3,650		28.5
Noninterest income		1,031		1,073		906		(3.9	)		13.8			3,122		2,672		16.8
Securities gains (losses), net		--		--		--		--			--			--		--		--
Total net revenue		2,503		2,632		2,345		(4.9	)		6.7			7,813		6,322		23.6
Noninterest expense		1,214		1,264		1,008		(4.0	)		20.4			3,713		3,001		23.7
Other intangibles		44		44		6		--			nm			131		19		nm
Total noninterest expense		1,258		1,308		1,014		(3.8	)		24.1			3,844		3,020		27.3
Income before provision and taxes		1,245		1,324		1,331		(6.0	)		(6.5	)		3,969		3,302		20.2
Provision for credit losses		128		162		71		(21.0	)		80.3			264		180		46.7
Income before income taxes		1,117		1,162		1,260		(3.9	)		(11.3	)		3,705		3,122		18.7
Income taxes and taxable-equivalent adjustment		279		291		315		(4.1	)		(11.4	)		927		781		18.7
Net income		838		871		945		(3.8	)		(11.3	)		2,778		2,341		18.7
Net (income) loss attributable to noncontrolling interests		--		--		--		--			--			--		--		--
Net income attributable to U.S. Bancorp	$	838	$	871	$	945		(3.8	)		(11.3	)	$	2,778	$	2,341		18.7

Average Balance Sheet Data
Loans	$	175,579	$	178,722	$	154,473		(1.8	)		13.7		$	177,081	$	145,594		21.6
Other earning assets		6,458		6,671		4,737		(3.2	)		36.3			6,386		4,682		36.4
Goodwill		4,638		4,651		3,612		(.3	)		28.4			4,634		3,638		27.4
Other intangible assets		921		962		314		(4.3	)		nm			972		295		nm
Assets		203,784		205,138		174,077		(.7	)		17.1			203,358		163,392		24.5

Noninterest-bearing deposits		66,083		73,699		77,471		(10.3	)		(14.7	)		74,003		84,200		(12.1	)
Interest-bearing deposits		206,622		192,584		178,080		7.3			16.0			198,702		169,892		17.0
Total deposits		272,705		266,283		255,551		2.4			6.7			272,705		254,092		7.3

Total U.S. Bancorp shareholders’ equity		22,831		22,358		18,334		2.1			24.5			22,246		17,758		25.3

Wealth, Corporate, Commercial and Institutional Banking provides core banking, specialized lending, transaction and payment processing, capital markets, asset management, and brokerage and investment related services to wealth, middle market, large corporate, government and institutional clients.

Wealth, Corporate, Commercial and Institutional Banking generated $1,245 million of income before provision and taxes in the third quarter of 2023, compared with $1,331 million in the third quarter of 2022, and contributed $838 million of the Company’s net income in the third quarter of 2023. The provision for credit losses increased $57 million (80.3 percent) compared with the third quarter of 2022 primarily due to commercial real estate credit quality, partially offset by balance reductions in the current quarter. Total net revenue was $158 million (6.7 percent) higher in the third quarter of 2023 due to an increase of $33 million (2.3 percent) in net interest income, and an increase of $125 million (13.8 percent) in total noninterest income. Net interest income increased due to the impact of rising interest rates on earning assets and the acquisition of MUB. Total noninterest income increased primarily due to higher trust and investment management fees due to the MUB acquisition and core business growth, and higher commercial products revenue mainly due to higher trading revenue. Total noninterest expense increased $244 million (24.1 percent) compared with the third quarter of 2022 primarily due to higher FDIC insurance expense driven by an increase in the assessment base and rate along with the inclusion of MUB in the current year, and higher compensation expense and net shared services expense driven by investment in support of business growth and the impact of the MUB acquisition, including intangible amortization driven by the core deposit intangible.

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CONSUMER AND BUSINESS BANKING															Preliminary data
($ in millions)							Percent Change
	3Q 2023		2Q 2023		3Q 2022		3Q23 vs 2Q23			3Q23 vs 3Q22			YTD 2023		YTD 2022		Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	2,045	$	2,142	$	1,693		(4.5	)		20.8		$	6,413	$	4,752		35.0
Noninterest income		430		428		332		.5			29.5			1,256		1,177		6.7
Securities gains (losses), net		--		--		--		--			--			--		--		--
Total net revenue		2,475		2,570		2,025		(3.7	)		22.2			7,669		5,929		29.3
Noninterest expense		1,646		1,713		1,402		(3.9	)		17.4			5,032		4,201		19.8
Other intangibles		88		87		3		1.1			nm			263		9		nm
Total noninterest expense		1,734		1,800		1,405		(3.7	)		23.4			5,295		4,210		25.8
Income before provision and taxes		741		770		620		(3.8	)		19.5			2,374		1,719		38.1
Provision for credit losses		8		15		41		(46.7	)		(80.5	)		30		15		nm
Income before income taxes		733		755		579		(2.9	)		26.6			2,344		1,704		37.6
Income taxes and taxable-equivalent adjustment		183		189		145		(3.2	)		26.2			586		426		37.6
Net income		550		566		434		(2.8	)		26.7			1,758		1,278		37.6
Net (income) loss attributable to noncontrolling interests		--		--		--		--			--			--		--		--
Net income attributable to U.S. Bancorp	$	550	$	566	$	434		(2.8	)		26.7		$	1,758	$	1,278		37.6

Average Balance Sheet Data
Loans	$	157,357	$	167,030	$	142,640		(5.8	)		10.3		$	163,905	$	141,276		16.0
Other earning assets		2,688		2,512		3,043		7.0			(11.7	)		2,462		3,330		(26.1	)
Goodwill		4,515		4,531		3,241		(.4	)		39.3			4,512		3,248		38.9
Other intangible assets		5,154		5,393		3,726		(4.4	)		38.3			5,378		3,515		53.0

Assets		174,788		184,835		158,057		(5.4	)		10.6			181,595		156,904		15.7
Noninterest-bearing deposits		25,590		34,231		30,829		(25.2	)		(17.0	)		33,638		30,722		9.5
Interest-bearing deposits		196,374		182,991		161,778		7.3			21.4			185,476		162,528		14.1

Total deposits		221,964		217,222		192,607		2.2			15.2			219,114		193,250		13.4

Total U.S. Bancorp shareholders’ equity		15,763		16,387		12,431		(3.8	)		26.8			16,236		12,324		31.7

Consumer and Business Banking comprises consumer banking, small business banking and consumer lending. Products and services are delivered through banking offices, telephone servicing and sales, on-line services, direct mail, ATM processing, mobile devices, distributed mortgage loan officers, and intermediary relationships including auto dealerships, mortgage banks, and strategic business partners.

Consumer and Business Banking generated $741 million of income before provision and taxes in the third quarter of 2023, compared with $620 million in the third quarter of 2022, and contributed $550 million of the Company’s net income in the third quarter of 2023. The provision for credit losses decreased $33 million (80.5 percent) compared with the third quarter of 2022 due to recent strength in housing prices. Total net revenue was higher by $450 million (22.2 percent) in the third quarter of 2023 due to an increase of $352 million (20.8 percent) in net interest income, and an increase in total noninterest income of $98 million (29.5 percent). Net interest income increased due to the impact of rising interest rates on earning assets and the acquisition of MUB. Total noninterest income mainly increased due to higher mortgage banking revenue driven by higher gain on sale margins and a favorable change in the valuation of mortgage servicing rights, net of hedging activities. Total noninterest expense increased $329 million (23.4 percent) in the third quarter of 2023 compared with the third quarter of 2022 due to an increase in compensation expense and net shared services expense due to investments in digital capabilities, and the impact of the MUB acquisition, including intangible amortization driven by the core deposit intangible.

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PAYMENT SERVICES													Preliminary data
($ in millions)							Percent Change
	3Q 2023		2Q 2023		3Q 2022		3Q23 vs 2Q23			3Q23 vs 3Q22			YTD 2023		YTD 2022		Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	692	$	645	$	629		7.3			10.0		$	1,991	$	1,870		6.5
Noninterest income		1,039		1,051		994		(1.1	)		4.5			3,027		2,844		6.4
Securities gains (losses), net		--		--		--		--			--			--		--		--
Total net revenue		1,731		1,696		1,623		2.1			6.7			5,018		4,714		6.4
Noninterest expense		938		886		858		5.9			9.3			2,709		2,499		8.4
Other intangibles		29		28		34		3.6			(14.7	)		86		102		(15.7	)
Total noninterest expense		967		914		892		5.8			8.4			2,795		2,601		7.5
Income before provision and taxes		764		782		731		(2.3	)		4.5			2,223		2,113		5.2
Provision for credit losses		399		314		285		27.1			40.0			933		636		46.7
Income before income taxes		365		468		446		(22.0	)		(18.2	)		1,290		1,477		(12.7	)
Income taxes and taxable-equivalent adjustment		91		117		112		(22.2	)		(18.8	)		322		370		(13.0	)
Net income		274		351		334		(21.9	)		(18.0	)		968		1,107		(12.6	)
Net (income) loss attributable to noncontrolling interests		--		--		--		--			--			--		--		--
Net income attributable to U.S. Bancorp	$	274	$	351	$	334		(21.9	)		(18.0	)	$	968	$	1,107		(12.6	)

Average Balance Sheet Data
Loans	$	38,954	$	37,913	$	35,819		2.7			8.8		$	37,942	$	33,820		12.2
Other earning assets		5		74		392		(93.2	)		(98.7	)		126		810		(84.4	)
Goodwill		3,333		3,330		3,292		.1			1.2			3,328		3,312		.5
Other intangible assets		339		359		405		(5.6	)		(16.3	)		361		435		(17.0	)
Assets		44,774		44,128		42,053		1.5			6.5			43,928		40,536		8.4
Noninterest-bearing deposits		2,796		3,179		3,312		(12.0	)		(15.6	)		3,052		3,459		(11.8	)
Interest-bearing deposits		101		104		171		(2.9	)		(40.9	)		104		166		(37.3	)
Total deposits		2,897		3,283		3,483		(11.8	)		(16.8	)		3,156		3,625		(12.9	)

Total U.S. Bancorp shareholders’ equity		9,442		9,127		8,255		3.5			14.4			9,181		8,129		12.9

Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate, government and purchasing card services and merchant processing.

Payment Services generated $764 million of income before provision and taxes in the third quarter of 2023, compared with $731 million in the third quarter of 2022, and contributed $274 million of the Company’s net income in the third quarter of 2023. The provision for credit losses increased $114 million (40.0 percent) compared with the third quarter of 2022 primarily due to normalizing credit conditions exhibited through increasing delinquency rates and lower consumer liquidity. Total net revenue increased $108 million (6.7 percent) in the third quarter of 2023 due to higher net interest income of $63 million (10.0 percent) and higher total noninterest income of $45 million (4.5 percent). Net interest income increased primarily due to higher loan yields driven by higher interest rates and customer revolve rates, along with higher loan balances, partially offset by higher funding costs. Total noninterest income increased year-over-year driven by higher card revenue and merchant processing services, mainly due to higher volume and favorable rates. Total noninterest expense increased $75 million (8.4 percent) reflecting higher net shared services expense driven by investment in infrastructure and technology development, in addition to higher compensation expense due to merit and core business growth.

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TREASURY AND CORPORATE SUPPORT																			Preliminary data
($ in millions)										Percent Change
	3Q 2023			2Q 2023			3Q 2022			3Q23 vs 2Q23			3Q23 vs 3Q22			YTD 2023			YTD 2022			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	59		$	103		$	96			(42.7	)		(38.5	)	$	290		$	249			16.5
Noninterest income		264			171			236			54.4			11.9			621			682			(8.9	)
Securities gains (losses), net		--			3			1			nm			nm			(29	)		38			nm
Total net revenue		323			277			333			16.6			(3.0	)		882			969			(9.0	)
Noninterest expense		571			547			326			4.4			75.2			1,720			1,032			66.7
Other intangibles		--			--			--			--			--			--			--			--
Total noninterest expense		571			547			326			4.4			75.2			1,720			1,032			66.7
Income (loss) before provision and taxes		(248	)		(270	)		7			8.1			nm			(838	)		(63	)		nm
Provision for credit losses		(20	)		330			(35	)		nm			42.9			536			(46	)		nm
Income (loss) before income taxes		(228	)		(600	)		42			62.0			nm			(1,374	)		(17	)		nm
Income taxes and taxable-equivalent adjustment		(90	)		(181	)		(61	)		50.3			(47.5	)		(467	)		(199	)		nm
Net income (loss)		(138	)		(419	)		103			67.1			nm			(907	)		182			nm
Net (income) loss attributable to noncontrolling interests		(1	)		(8	)		(4	)		87.5			75.0			(15	)		(8	)		(87.5	)
Net income (loss) attributable to U.S. Bancorp	$	(139	)	$	(427	)	$	99			67.4			nm		$	(922	)	$	174			nm

Average Balance Sheet Data
Loans	$	4,987		$	5,152		$	3,846			(3.2	)		29.7		$	5,184		$	4,041			28.3
Other earning assets		219,217			215,765			196,716			1.6			11.4			215,805			202,578			6.5
Goodwill		--			--			--			--			--			--			--			--
Other intangible assets		11			10			--			10.0			nm			19			--			nm
Assets		240,653			238,911			214,577			.7			12.2			238,600			221,235			7.8

Noninterest-bearing deposits		3,055			2,649			2,432			15.3			25.6			2,863			2,512			14.0
Interest-bearing deposits		11,670			7,828			2,696			49.1			nm			8,795			2,350			nm
Total deposits		14,725			10,477			5,128			40.5			nm			11,658			4,862			nm

Total U.S. Bancorp shareholders’ equity		5,781			5,950			10,800			(2.8	)		(46.5	)		5,777			12,593			(54.1	)

Treasury and Corporate Support includes the Company’s investment portfolios, funding, capital management, interest rate risk management, income taxes not allocated to business segments, including most investments in tax-advantaged projects, and the residual aggregate of those expenses associated with corporate activities that are managed on a consolidated basis.

Treasury and Corporate Support generated a $248 million loss before provision and taxes in the third quarter of 2023, compared with $7 million of income before provision and taxes in the third quarter of 2022, and recorded a net loss of $139 million in the third quarter of 2023. The provision for credit losses increased $15 million (42.9 percent) compared with the third quarter of 2022 primarily due to credit impairment realized on certain loan portfolios not included in continuing operations. Total net revenue was lower by $10 million (3.0 percent) in the third quarter of 2023 due to an decrease of $37 million (38.5 percent) in net interest income, offset by an increase of $27 million (11.4 percent) in total noninterest income. Net interest income decreased primarily due to higher funding costs partially offset by higher yields on the investment portfolio and cash balances. The increase in total noninterest income was primarily due to higher commercial products revenue. Total noninterest expense increased $245 million (75.2 percent) compared with the third quarter of 2022 primarily due to higher merger and integration-related charges related to the acquisition of MUB, the impact of the acquisition of MUB, higher compensation expense due to higher merit and hiring to support business growth, and higher marketing and business development expense as the Company continues to invest in its national brand and global reach, partially offset by lower net shared services costs. Income taxes are assessed to each line of business at a managerial tax rate of 25.0 percent with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in Treasury and Corporate Support.

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EX-99.2 3 d575514dex992.htm EX-99.2 EX-99.2

U.S. Bancorp 3Q23 Earnings Conference Call October 18, 2023 Exhibit 99.2

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, future economic conditions and the anticipated future revenue, expenses, financial condition, asset quality, capital and liquidity levels, plans, prospects and operations of U.S. Bancorp. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “projects,” “forecasts,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those set forth in forward-looking statements, including the following risks and uncertainties: deterioration in general business and economic conditions or turbulence in domestic or global financial markets, which could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price volatility; turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions, which could affect the ability of depository institutions, including U.S. Bank National Association, to attract and retain depositors, and could affect the ability of financial services providers, including U.S. Bancorp, to borrow or raise capital; increases in Federal Deposit Insurance Corporation (“FDIC”) assessments due to bank failures; actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions; changes to regulatory capital, liquidity and resolution-related requirements applicable to large banking organizations in response to recent developments affecting the banking sector; changes to statutes, regulations, or regulatory policies or practices, including capital and liquidity requirements, and the enforcement and interpretation of such laws and regulations, and U.S. Bancorp’s ability to address or satisfy those requirements and other requirements or conditions imposed by regulatory entities; changes in interest rates; increases in unemployment rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; risks related to originating and selling mortgages, including repurchase and indemnity demands, and related to U.S. Bancorp’s role as a loan servicer; impacts of current, pending or future litigation and governmental proceedings; increased competition from both banks and non-banks; effects of climate change and related physical and transition risks; changes in customer behavior and preferences and the ability to implement technological changes to respond to customer needs and meet competitive demands; breaches in data security; failures or disruptions in or breaches of U.S. Bancorp’s operational, technology or security systems or infrastructure, or those of third parties; failures to safeguard personal information; impacts of pandemics, including the COVID-19 pandemic, natural disasters, terrorist activities, civil unrest, international hostilities and geopolitical events; impacts of supply chain disruptions, rising inflation, slower growth or a recession; failure to execute on strategic or operational plans; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; effects of changes in or interpretations of tax laws and regulations; management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk; and the risks and uncertainties more fully discussed in the section entitled “Risk Factors” of U.S. Bancorp’s Form 10-K for the year ended December 31, 2022, and subsequent filings with the Securities and Exchange Commission. In addition, U.S. Bancorp’s acquisition of MUFG Union Bank presents risks and uncertainties, including, among others: the risk that the cost savings, any revenue synergies and other anticipated benefits of the acquisition may not be realized or may take longer than anticipated to be realized; and the possibility that the combination of MUFG Union Bank with U.S. Bancorp, including the integration of MUFG Union Bank, may be more costly or difficult to complete than anticipated or have unanticipated adverse results. In addition, factors other than these risks also could adversely affect U.S. Bancorp’s results, and the reader should not consider these risks to be a complete set of all potential risks or uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements. 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 to describe U.S. Bancorp’s performance. The calculations of 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.

3Q23 Highlights Post-Acquisition Commitment Relief U.S. Bancorp will not be required to meet Category II requirements by December 31st, 2024 Accelerated CET1 accretion Driven by enhanced earnings generation and capital accretive initiatives Well maintained, strong balance sheet 3.0% linked quarter increase in average total deposits; Disciplined asset and liability management Strong financial performance Diversified and sustainable fee income; Prudent expense management Normalizing credit quality Asset quality metrics in line with expectations; Through-the-cycle approach to credit risk management $0.91 | $1.05 9.7% 60bps vs. 2Q23 $7.0 Billion $512 Billion +3% vs 2Q23 $95 Million Reported Adjusted Earnings per share CET1 Ratio Net Revenue Average Deposits Core Reserve Build 1 1 Non-GAAP; see appendix for calculations and description of notable items

3Q23 Highlights Income Statement Balance Sheet Credit Quality Capital 1 Non-GAAP; see appendix for calculations and description of notable items 2 Taxable-equivalent basis; see appendix for calculation 3 Common equity tier 1 capital to risk-weighted assets, reflecting Basel III standardized with 5 year current expected credit losses (CECL) transition 4 Earnings returned (millions) = total common dividends paid and aggregate value of common shares repurchased inclusive of treasury shares repurchased in connection with stock compensation plans 1

Performance Ratios Return on Average Assets Efficiency Ratio1 & Net Interest Margin2 Return on Average Common Equity Return on Tangible Common Equity1 1.07%1 1.04%1 14.6%1 13.7%1 22.3%1 21.0%1 63.7% 64.4% 1.24%1 16.2%1 21.4%1 57.5% 1 Non-GAAP; see appendix for calculations and description of notable items 2 Net interest margin on a taxable-equivalent basis

Sustainable Earnings Power As a % of Total Revenue1 Strong annualized fee income generated by our diversified business model supports our short- and long-term growth objectives Payment Services Three distinct business lines: Retail Payment Solutions, Global Merchant Acquiring and Corporate Payment Solutions Wealth, Corporate, Commercial & Institutional Banking Wealth Management, Global Markets & Specialized Finance, Global Fund Services, Corporate and Commercial Banking, Commercial Real Estate Consumer & Business Banking Branch, Small Business & Mortgage Banking and Consumer Lending $0.5B | + ~14% Tech-led2 Merchant Processing fee revenue CAGR growth since 2019 $1.3B | + ~8% Commercial Products revenue CAGR growth since 2018 $2.4B | + ~9% Trust & Investment Management revenue CAGR growth since 2018 $0.3B | + ~12% Total noninterest income revenue 3Q23 year-over-year growth Unless otherwise noted all data represents trailing twelve months as of Q3 2023. 1 3Q23 YTD taxable-equivalent basis; Business line revenue percentages exclude Treasury and Corporate Support; see appendix for reconciliation 2 Tech-led includes digital, omni-commerce and e-commerce as well as investments in integrated software providers.

~1.5x ~1.2x Post Conversion Synergy Opportunities Legacy capture rate of Consumer clients with a Credit Card compared to Union Bank Merger & Integration Costs: $1.1B Incurred to date ~$1.4B Total expected Opportunity across Union Bank’s loyal customer base to leverage our broad product set, distribution network, digitization, and payments ecosystem Expected Cost Synergies ~$900M Legacy USB clients holding multi-product offerings2 compared to Union Bank 1 1 +~2x opportunity +~2.5x opportunity Legacy capture rate of Business clients with a Credit Card compared to Union Bank Union Bank Digital Enrollment Uptick Post Conversion Client data as of June 2023 post conversion 1Union Bank client data includes clients with legacy USB accounts (dual client) 2Product groups defined as: Merchant (Merchant processing services), Commercial Loan or Line, Credit Card, Equipment Leasing, Commercial Real Estate (Residential, including unused Commitments), Non-Interest-bearing deposits, Managed Rate deposits (money market and savings with interest), Time deposits, Investments (including Global Corporate Trust, U.S. Bank Asset Management & Fund Services), Treasury management revenue, Commercial product revenue Business Consumer ~

Balance Sheet Summary The strength and stability of our balance sheet enables us to withstand economic pressures while continuing to meet the needs of our customers Total Average Deposits ($B) Focused on efficient growth opportunities as we prudently allocate capital and focus on the strength of our business relationships Linked quarter average deposit balances increased 3.0% driven by seasonality and growth in CDs; Mix shift trending in line with expectations Decline in average balances partly reflects lower ending balances at 6/30/23 related to seasonality Highlights Total Average Loan Balance ($B) Total Average Assets ($B)

Investment Securities Portfolio Our balanced securities portfolio supports effective management of interest rate volatility AFS Portfolio Duration (Years) Duration continues to move lower Prudent management of our investment securities portfolio with emphasis on redeployment of runoff into short-term securities with higher yields Balanced mix of HTM/AFS provide flexibility to manage interest rate risk and ongoing volatility Effective hedging strategy continues to reduce AFS duration and manage our AOCI position Highlights < Meaningful yield improvement End of Period Balances ($B) Investment securities portfolio balance based on amortized cost $161.2 $163.8 $162.1 53% 47% 53% 47% 55% 45% AFS & MTM Transfer Burndown ($B) Expect meaningful burndown into 2025 ~25% Portfolio Burndown Avg. Yield

3Q23 Earnings Summary - Detail 1Taxable-equivalent basis 2 Non-GAAP; see appendix for calculations and description of notable items

Year-over-year performance impacted by rising rates and the acquisition of Union Bank Linked quarter decrease in net interest income and margin due to higher deposit pricing partially offset by the impact of higher rates on earning assets and balance sheet optimization Net Interest Income Net Interest Income (taxable-equivalent basis)1 - 4.1% Linked Quarter +10.7% Year-Over-Year $ in millions 1 Non-GAAP; see appendix for calculations

Year-over-year increase driven by higher payments service revenue, as well as trust and investment management fees, commercial products, mortgage banking, and other noninterest income. On a linked quarter basis, noninterest income increased due to higher other revenue. Noninterest Income $ in millions Payments = card, corporate payment products and merchant processing All other = commercial products, investment products fees, securities gains (losses) and other 1 Non-GAAP; see appendix for calculations and description of notable items Excluding Notable Items1 +0.6% Linked Quarter +11.9% Year-Over-Year Reported +1.4% Linked Quarter +11.9% Year-Over-Year

Noninterest Expense On a linked quarter basis, adjusted noninterest expense decrease driven by lower compensation expense offset by an increase in marketing and business development Merger and integration-related charges of $284M this quarter related to the Union Bank acquisition. Reported -0.9% Linked Quarter +24.6% Year-Over-Year Excluding Notable Items1 - 0.3% Linked Quarter +18.1% Year-Over-Year $ in millions 1 Non-GAAP; see appendix for calculations and description of notable items

Change vs. 3Q23 Reported 2Q23 Adjusted1 2Q23 3Q22 Non-performing Assets Balance ($M) $1,310 $225 $225 $633 NPAs/Period-end Loans plus OREO 0.35% 6bps 6bps 15bps Net Charge-offs NCOs ($M) $420 ($229) $801 $258 NCOs/Avg Loans 0.44% (23bps) 9bps1 25bps Core Provision for Credit Losses Trending Reserve Build Allowance for Credit Losses/Period-end Loans NCOs $ in millions, unless specified 1 Non-GAAP; see appendix for calculations and description of notable items Credit Quality Credit quality reflects continued normalization and the impacts of CRE Increased reserve coverage within CRE Office to 10% to reflect continued migration within the portfolio Continue to prudently manage our credit risk position, with increased criticized levels driven by CRE Credit quality migrating towards normalized levels Net Charge-off and Nonperforming Assets Highlights 1 1 Allowance for Credit Losses by Loan Category, 3Q23 $515 $362 $4011 $427 $5781 Amount ($B) Loans and Leases Outstanding (%) Commercial $2.1 1.6% Commercial Real Estate 1.7 3.1% Residential Mortgage 0.8 0.7% Credit Card 2.3 8.3% Other Retail 0.9 2.0% Total $7.8 2.1% 1 1 1

Accelerated Capital Accretion Ratios calculated in accordance with transitional regulatory requirements related to the current expected credit losses methodology CET1 capital ratio is 270 bps above our regulatory capital minimum 3rd Quarter Highlights Solid earnings accretion of ~20bps, net of capital distribution, reflective of our diversified business mix and enhanced earnings profile with Union Bank An additional ~20bps of risk-weighted asset and balance sheet optimization activities with low-to-neutral earnings impact August debt-to-equity conversion with MUFG was ~20bps accretive to CET1 ratio CET1 Ratio at pre-acquisition level 9.7% 8.4% 9.1% 9.7% +0.2% +0.2% +0.2% 60 bps vs. 2Q23 7% CET1 Ratio Regulatory Minimum Binding Capital Constraint Earnings Net of Capital Distribution

1 All results and guidance are on an adjusted basis 2 Taxable-equivalent basis 3 Non-GAAP; see appendix for calculations and description of notable items Fourth Quarter 2023 Outlook1 Net interest income2 $13.4B $4.1B - $4.2B Total Revenue, adjusted3 $21.4B $6.8B - $6.9B Includes purchase accounting accretion $265M ~$65M Total Noninterest expense, adjusted3 $12.8B ~$4.2B Includes Core Deposit Intangibles Amortization related to Union Bank $364M ~$115M Income Tax Rate, adjusted3 23.2% ~23% Notable Items: Merger & Integration $838M $250M - $300M Year-to-Date 4Q23 Guidance On a core basis, we expect full year 2024 expenses to be flat with 2023

Post-Acquisition Commitment Relief AOCI Treatment in CET1 Future RWA Optimization 100% inclusion No sooner than YE 2024 25% inclusion2 Beginning Q3 2025 Low-to-Moderate EPS Impact Low-to-Neutral EPS impact Full relief from Category II commitments 1 made in connection with Union Bank acquisition Now subject to existing capital rules or, if adopted, the same transition rules as all other Category III banks under the Basel III End Game proposal Impact of Commitment Relief Before After 1 Remain subject to the Board’s enhanced prudential standards rule, 12 CFR Part 252, as a Category III banking organization (less than $700 billion in total consolidated assets and less than $75 billion in cross-jurisdictional activity) 2 Per Basel III End Game proposal We expect continued capital generation of ~20-25bps per quarter with enhanced earnings power U.S. Bancorp will not be required to meet Category II requirements by YE 2024

Appendix

Average Loans -3.1% linked quarter +11.9% year-over-year $ in billions On a year-over-year basis, average total loans grew due to growth in the legacy loan portfolio and from the Union Bank acquisition. On a linked quarter basis, average total loans decreased due to reduced commercial loans, commercial real estate loans, residential mortgages, and other retail loans.

Average Deposits +3.0% linked quarter +12.2% year-over-year $ in billions On a year-over-year basis, average total deposits grew due to higher interest-bearing deposits, partially offset by decreasing noninterest-bearing deposits On a linked quarter basis, average total deposits grew due to higher interest-bearing deposits, partially offset by decreasing noninterest-bearing deposits driven by a product change for certain Union Bank retail checking accounts into interest checking accounts at conversion

Card fee revenue improved 5.4% YOY driven by sales growth and the Union Bank acquisition. Merchant processing fee revenue improved 5.2% YOY driven by sales growth. Corporate payments fee revenue increased 4.2% YOY driven by sales growth. Payment Services Fee Revenue Growth 1 Includes prepaid card 3Q23 vs. Prior Year

Payments Revenue Breakdown Total payments revenue, which includes net interest income and fee revenue, accounted for 25% of 3Q23 net revenue Total payment fee revenue grew 5.1% year-over-year due to higher sales volumes across all businesses Seasonal Considerations A Shift to Tech-led3 Revenue Historical Linked Quarter Seasonal Trends for Payment Fees Revenue2 1 Includes prepaid card 2 Linked quarter change based on trends from 2015 – 2019 3 Tech-led includes digital, omni-commerce and e-commerce as well as investments in integrated software providers Payment Fees as a % of Net Revenue (3Q23) Payment Services 1 Tech-led3 Merchant Processing Fee Revenue Growth On a linked Quarter basis: 3Q payments fee revenue growth is typically higher or stable. Our multiyear investments in e-commerce and tech-led will continue to drive growth – representing 33% of merchant processing revenue

Credit Quality – Commercial Key Statistics $ in millions3Q22 2Q23 3Q23 Average Loans$128,519 $138,085 $134,720 30-89 Delinquencies0.25% 0.25% 0.24% 90+ Delinquencies0.03% 0.04% 0.05% Nonperforming Loans0.09% 0.17% 0.19% Average Loans ($M) and Net Charge-offs Ratio 6.5% 3.4% 2.1% 1.8% (2.4%) Linked Quarter Growth(a) Key Points Average loans decreased by 2.4% on a linked quarter basis Utilization is flat quarter over quarter at 24.7% Portfolio continues to perform well despite elevated interest rate environment 1 Non-GAAP; see appendix for calculations and description of notable items (a) Average loans at 4Q22 includes only 1 month of Union Bank (12/1 acquisition date), whereas 1Q23 and forward includes full quarter

Credit Quality – Commercial Real Estate $ in millions 3Q22 2Q23 3Q23 Average Loans$40,010 $ 54,934$54,253 30-89 Delinquencies0.02% 0.13% 0.07% 90+ Delinquencies0.05% 0.00% 0.00% Nonperforming Loans0.41% 0.87% 1.33% Key Points Average Loans ($M) and Net Charge-offs Ratio Key Statistics Linked Quarter Growth (a) 1.2% 14.3% 21.6% (1.2%) (1.2%) 1 Average loans decreased (1.2%) on a linked quarter basis Net charge-off rate and nonperforming loans increased from the previous quarter primarily driven by the Office portfolio 1 Non-GAAP; see appendix for calculations and description of notable items 2 SFR = Single Family Residential (a) Average loans at 4Q22 includes only 1 month of Union Bank (12/1 acquisition date), whereas 1Q23 and forward includes full quarter

1 Credit Quality – Residential Mortgage $ in millions 3Q222Q233Q23 Average Loans$84,018 $117,606$114,627 30-89 Delinquencies0.10%0.11% 0.11% 90+ Delinquencies0.10% 0.08% 0.11% Nonperforming Loans0.24%0.18%0.14% 4.7% 15.6% 19.8% 1.1% (2.5%) Key Points Average loans decreased by 2.5% on a linked quarter basis, primarily driven by prior quarter balance sheet optimization activity Continued adjusted low losses and nonperforming loans were supported by strong portfolio credit quality and collateral values Originations continued to reflect high credit quality (weighted average credit score of 771, weighted average LTV of 72%) Linked Quarter Growth (a) Average Loans ($M) and Net Charge-offs Ratio Key Statistics 1 Non-GAAP; see appendix for calculations and description of notable items (a) Average loans at 4Q22 includes only 1 month of Union Bank (12/1 acquisition date), whereas 1Q23 and forward includes full quarter

Credit Quality – Credit Card $ in millions 3Q222Q233Q23 Average Loans$24,105 $26,046 $26,883 30-89 Delinquencies0.97% 1.15% 1.35% 90+ Delinquencies0.74%1.02% 1.17% Nonperforming Loans - %- %- % Key Points Average loans increased by 3.2% on a linked quarter basis Net charge-off rate of 3.25% and increases in 30-89 and 90+ day delinquencies reflect portfolio normalization Average Loans ($M) and Net Charge-offs Ratio Key Statistics 6.0% 4.4% 1.6% 1.9% 3.2% Linked Quarter Growth (a) 1 1 Non-GAAP; see appendix for calculations and description of notable items (a) Average loans at 4Q22 includes only 1 month of Union Bank (12/1 acquisition date), whereas 1Q23 and forward includes full quarter

Credit Quality – Other Retail $ in millions 3Q222Q233Q23 Average Loans$60,126 $52,146$46,394 30-89 Delinquencies0.41%0.50% 0.56% 90+ Delinquencies0.11%0.12% 0.13% Nonperforming Loans0.22%0.27% 0.28% Key Points Average loans decreased by (11.0%) on a linked quarter basis primarily driven by 2Q23 balance sheet optimization actions. Net charge-offs on an adjusted basis and delinquencies increased from prior quarter Average Loans ($M) and Net Charge-offs Ratio Key Statistics 1 Non-GAAP; see appendix for calculations and description of notable items (a) Average loans at 4Q22 includes only 1 month of Union Bank (12/1 acquisition date), whereas 1Q23 and forward includes full quarter Linked Quarter Growth (a) 1 (1.5%) (2.0%) (9.0%) (2.7%) (11.0%)

Non-GAAP Financial Measures (1), (2) – see last page in appendix for corresponding notes

(2), (3) – see last page in appendix for corresponding notes Non-GAAP Financial Measures

Non-GAAP Financial Measures (2) – see last page in appendix for corresponding notes

Non-GAAP Financial Measures (1), (2), (3) – see last page in appendix for corresponding notes

Non-GAAP Financial Measures

Notes 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. Notable items for the three months ended September 30, 2023 included $284 million ($213 million net-of-tax) of merger and integration-related charges. Notable items of $575 million ($432 million net-of-tax) for the three months ended June 30, 2023 included $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $310 million of merger and integration-related charges and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions. Notable items for the three months ended September 30, 2022 included $42 million ($33 million net-of-tax) of merger and integration-related charges. Notable items for the three months ended June 30, 2023 included $309 million of net charge-offs related to balance sheet repositioning and capital management actions. Notable items for the three months ended March 31, 2023 included $244 million ($183 million net-of-tax) of merger and integration charges and $91 million of net charge-offs related to uncollectible acquired loans, considered purchase credit deteriorated as of the date of the acquisition. Notable items for the three months ended December 31, 2022 included $179 million of net charge-offs related to uncollectible acquired loans as well as $189 million of net charge-offs related to balance sheet repositioning and capital management actions. Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.