Attached files
| file | filename |
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| EX-99.1 - PRESS RELEASE ISSUED BY U.S. BANCORP - US BANCORP \DE\ | d466775dex991.htm |
| 8-K - FORM 8-K - US BANCORP \DE\ | d466775d8k.htm |
 U.S.
Bancorp 4Q12 Earnings
Conference Call
U.S. Bancorp
4Q12 Earnings
Conference Call
January 16, 2013
Richard K. Davis
Chairman, President and CEO
Andy Cecere
Vice Chairman and CFO
Exhibit 99.2 |
 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
made.
These
forward-looking
statements
cover,
among
other
things,
anticipated
future
revenue
and
expenses
and
the
future
plans
and
prospects
of
U.S.
Bancorp.
Forward-looking
statements
involve
inherent
risks
and
uncertainties,
and
important
factors could cause actual results to differ materially from those
anticipated. Global and domestic economies could fail to recover from the recent
economic downturn or could experience another severe contraction, which could
adversely affect U.S. Bancorp’s revenues and the values of its assets
and liabilities. Global financial markets could experience a recurrence of significant turbulence, which could reduce the availability of
funding to certain financial institutions and lead to a tightening of credit, a
reduction of business activity, and increased market volatility. Continued
stress in the commercial real estate markets, as well as a delay
or failure of recovery in the residential real estate markets, could cause
additional credit losses and deterioration in asset values. In
addition, U.S. Bancorp’s business and financial performance is likely to be negatively impacted
by effects of recently enacted and future legislation and regulation. U.S.
Bancorp’s results could also be adversely affected by continued
deterioration
in
general
business
and
economic
conditions;
changes
in
interest
rates;
deterioration
in
the
credit
quality
of
its
loan
portfolios
or
in
the
value of the collateral securing those loans; deterioration in the value of
securities held in its investment securities portfolio; legal and regulatory
developments; increased competition from both banks and non-banks; changes in
customer behavior and preferences; effects of mergers and acquisitions and
related integration; effects of critical accounting policies and judgments; and management’s ability to effectively manage credit
risk, residual value risk, market risk, operational risk, interest rate risk and
liquidity risk. For discussion of these and other risks that may cause actual
results to differ from expectations, refer to U.S. Bancorp’s Annual Report on
Form 10-K for the year ended December 31, 2011, on file with the Securities and
Exchange Commission, including the sections entitled “Risk
Factors”
and
“Corporate
Risk
Profile”
contained
in
Exhibit
13,
and
all
subsequent
filings
with
the
Securities
and
Exchange
Commission
under
Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934.
Forward-looking statements speak only as of the date they are made, and
U.S. Bancorp undertakes no obligation to update them in light of new information or future events.
This
presentation
includes
non-GAAP
financial
measures
to
describe
U.S.
Bancorp’s
performance.
The
reconciliations
of
those
measures
to
GAAP
measures
are
provided
within
or
in
the
appendix
of
the
presentation.
These
disclosures
should
not
be
viewed
as
a
substitute
for
operating
results
determined in accordance with GAAP, nor are they necessarily comparable to
non-GAAP performance measures that may be presented by other
companies. |
 3
4Q12 Earnings
Conference Call
2012 Full Year Highlights
Record net income of $5.6 billion; $2.84 per diluted common share
Record total net revenue of $20.3 billion, up 6.2% vs. 2011
•
Net interest income growth of 6.0% vs. 2011
•
Noninterest income growth of 6.4% vs. 2011
Industry-leading profitability measures, including ROA of 1.65%, ROCE of 16.2%
and efficiency ratio of 51.5%
Positive operating leverage
Average loan growth of 6.9% vs. 2011
Strong average deposit growth of 10.6% vs. 2011
Net
charge-offs
declined
26.2%
vs.
2011
and
nonperforming
assets
(excluding
covered
assets) declined 18.9% vs. 2011
Capital generation continues to strengthen capital position
•
Tier 1 common equity ratio of 9.0% vs. 8.6% in 2011
•
Repurchased 59 million shares of common stock during 2012
•
In total, returned $3.4 billion of our earnings in 2012 to shareholders
|
 4
4Q12 Earnings
Conference Call
4Q12 Highlights
Net income of $1.4 billion; $0.72 per diluted common share
4Q12 results included an $80 million expense accrual for a mortgage
foreclosure-related regulatory settlement; reduced diluted EPS by
$0.03 4Q11 results included a $263 million merchant settlement gain and a
$130 million expense accrual related to mortgage servicing matters;
increased EPS by $0.05
Net revenue of $5.1 billion, up 0.2% vs. 4Q11 (5.6% excluding 4Q11
merchant settlement gain) Positive operating leverage on a
year-over-year basis Average loan growth of 6.4% vs. 4Q11 and average
loan growth of 1.5% vs. 3Q12 Strong average deposit growth of 9.2% vs. 4Q11
and 1.9% vs. 3Q12 Net charge-offs declined 13.0% vs. 3Q12 (3Q12 included
$54 million of incremental charge-offs due to a regulatory
clarification) Nonperforming assets declined 5.8% vs. 3Q12 (4.6% excluding
covered assets) Capital generation continues to reinforce capital
position •
Tier 1 common equity ratio of approximately 8.1% using proposed rules for Basel
III standardized approach released June 2012
•
Tier 1 common equity ratio of 9.0%; Tier 1 capital ratio of 10.8%
•
Repurchased 13 million shares of common stock during 4Q12
|
 5
4Q12 Earnings
Conference Call
Performance Ratios
ROCE and ROA
Efficiency Ratio and
Net Interest Margin
Return on Avg Common Equity
Return on Avg Assets
Efficiency Ratio
Net Interest Margin
Efficiency
ratio
computed
as
noninterest
expense
divided
by
the
sum
of
net
interest
income
on
a
taxable-equivalent
basis
and
noninterest
income
excluding
securities
gains
(losses)
net |
 6
4Q12 Earnings
Conference Call
* Gain on merchant processing agreement settlement
Taxable-equivalent basis
Revenue Growth
$ in millions |
 7
4Q12 Earnings
Conference Call
Loan and Deposit Growth
Average Balances
Year-Over-Year Growth
$ in billions |
 8
4Q12 Earnings
Conference Call
Credit Quality
*
Excluding
Covered
Assets
(assets
subject
to
loss
sharing
agreements
with
FDIC)
**
Related
to
a
regulatory
clarification
in
the
treatment
of
residential
mortgage
and
other
consumer
loans
to
borrowers
who
have
exited
bankruptcy
but
continue
to
make
payments
on
their
loans
***
Excluding
$54
million
of
incremental
charge-offs
$ in millions
Net Charge-offs (Left Scale)
NCOs to Avg Loans (Right Scale)
Nonperforming Assets (Left Scale)
NPAs to Loans plus ORE (Right Scale) |
 9
4Q12 Earnings
Conference Call
FY
FY
4Q12
3Q12
4Q11
vs 3Q12
vs 4Q11
2012
2011
% B/(W)
Net Interest Income
2,783
$
2,783
$
2,673
$
-
4.1
10,969
$
10,348
$
6.0
Noninterest Income
2,329
2,396
2,431
(2.8)
(4.2)
9,319
8,760
6.4
Total Revenue
5,112
5,179
5,104
(1.3)
0.2
20,288
19,108
6.2
Noninterest Expense
2,686
2,609
2,696
(3.0)
0.4
10,456
9,911
(5.5)
Operating Income
2,426
2,570
2,408
(5.6)
0.7
9,832
9,197
6.9
Net Charge-offs
468
538
622
13.0
24.8
2,097
2,843
26.2
Excess Provision
(25)
(50)
(125)
--
--
(215)
(500)
--
Income before Taxes
1,983
2,082
1,911
(4.8)
3.8
7,950
6,854
16.0
Applicable Income Taxes
608
650
583
6.5
(4.3)
2,460
2,066
(19.1)
Noncontrolling Interests
45
42
22
7.1
104.5
157
84
86.9
Net Income
1,420
1,474
1,350
(3.7)
5.2
5,647
4,872
15.9
Preferred Dividends/Other
71
70
36
(1.4)
(97.2)
264
151
(74.8)
NI to Common
1,349
$
1,404
$
1,314
$
(3.9)
2.7
5,383
$
4,721
$
14.0
Diluted EPS
0.72
$
0.74
$
0.69
$
(2.7)
4.3
2.84
$
2.46
$
15.4
Average Diluted Shares
1,880
1,897
1,911
0.9
1.6
1,896
1,923
1.4
% B/(W)
Earnings Summary
$ in millions, except per-share data
Taxable-equivalent basis |
 10
4Q12 Earnings
Conference Call
Notable Items
$ in millions
4Q12
4Q11
Revenue Items
Merchant processing agreement settlement
-
$
263
$
Expense Items
Mortgage servicing matters
80
130
|
 11
4Q12 Earnings
Conference Call
4Q12 Results -
Key Drivers
vs. 4Q11
Net Revenue growth of 0.2% (5.6% excluding notable items)
•
Net
interest
income
growth
of
4.1%;
net
interest
margin
of
3.55%
vs.
3.60%
in
4Q11
•
Noninterest income decline of 4.2% (7.4% increase excluding notable items)
Noninterest expense decline of 0.4% (1.6% increase excluding notable items)
Provision for credit losses lower by $54 million
•
Net charge-offs lower by $154 million
•
Provision lower than NCOs by $25 million vs. $125 million in 4Q11
vs. 3Q12
Net Revenue decline of 1.3%
•
Net
interest
income
growth
of
0.0%;
net
interest
margin
of
3.55%
vs.
3.59%
in
3Q12
•
Noninterest income decline of 2.8%
Noninterest expense growth of 3.0% (0.1% decline excluding notable items)
Provision for credit losses lower by $45 million
•
Net charge-offs lower by $70 million
•
Provision lower than NCOs by $25 million vs. $50 million in 3Q12
|
 12
4Q12 Earnings
Conference Call
4Q12
3Q12
2Q12
1Q12
4Q11
Shareholders' equity
39.0
$
38.7
$
37.8
$
35.9
$
34.0
$
Tier 1 capital
31.2
30.8
30.0
30.0
29.2
Total risk-based capital
37.8
37.6
36.4
36.4
36.1
Tier 1 common equity ratio
9.0%
9.0%
8.8%
8.7%
8.6%
Tier 1 capital ratio
10.8%
10.9%
10.7%
10.9%
10.8%
Total risk-based capital ratio
13.1%
13.3%
13.0%
13.3%
13.3%
Leverage ratio
9.2%
9.2%
9.1%
9.2%
9.1%
Tangible common equity ratio
7.2%
7.2%
6.9%
6.9%
6.6%
Tangible common equity as a % of RWA
8.6%
8.8%
8.5%
8.3%
8.1%
Basel III
Tier 1 common equity ratio using Basel III
proposals published prior to June 2012
-
-
-
8.4%
8.2%
Tier 1 common equity ratio approximated
using proposed rules for the Basel III
standardized approach released June 2012
8.1%
8.2%
7.9%
-
-
Capital Position
$ in billions
RWA = risk-weighted assets |
 13
4Q12 Earnings
Conference Call
Mortgage Repurchase
Mortgages Repurchased and Make-whole Payments
Mortgage Representation and Warranties Reserve
$ in millions
4Q12
3Q12
2Q12
1Q12
4Q11
Beginning Reserve
$220
$216
$202
$160
$162
Net Realized Losses
(32)
(32)
(31)
(25)
(31)
Additions to Reserve
52
36
45
67
29
Ending Reserve
$240
$220
$216
$202
$160
Mortgages
repurchased
and make-whole
payments
$57
$58
$58
$55
$61
Repurchase activity lower than
peers due to:
•
Conservative credit and
underwriting culture
•
Disciplined origination process -
primarily conforming
loans
(
95% sold to GSEs)
Do not participate in private
placement securitization market
Outstanding repurchase and
make-whole requests balance
= $131 million
Repurchase requests expected to
remain relatively stable over next
few quarters |
 continues
continues
Momentum
Momentum |
 15
4Q12 Earnings
Conference Call
Appendix |
 16
4Q12 Earnings
Conference Call
Average Loans
Average Loans
Key Points
$ in billions
vs. 4Q11
Average total loans grew over $13 billion, or 6.4%
Average total loans, excluding covered loans,
were higher by 8.6%
Average total commercial loans increased $8.7
billion, or 15.7%; average residential mortgage
loans increased $6.9 billion, or 19.0%
vs. 3Q12
Average total loans grew by $3.4 billion, or 1.5%
Average total loans, excluding covered loans,
were higher by 2.0%
Average total commercial loans increased $1.7
billion, or 2.8%; average residential mortgage
loans increased $2.2 billion, or 5.3% |
 17
4Q12 Earnings
Conference Call
Average Deposits
Average Deposits
Key Points
$ in billions
vs. 4Q11
Average total deposits increased by $20.5
billion, or 9.2%
Average low cost deposits (NIB, interest
checking, money market and savings)
increased by $16.8 billion, or 9.3%
vs. 3Q12
Average total deposits increased by $4.5
billion, or 1.9%
Average low cost deposits increased by $9.0
billion, or 4.8% |
 18
4Q12 Earnings
Conference Call
Net Interest Income
Net Interest Income
Key Points
$ in millions
Taxable-equivalent basis
vs. 4Q11
Average earning assets grew by $17.1 billion,
or 5.8%
Net interest margin lower by 5 bp (3.55% vs.
3.60%) driven by:
•
Higher balances in lower yielding investment
securities and lower loan rates
•
Partially offset by lower rates on deposits and long-
term debt and a reduction in cash balances held at
the Federal Reserve
vs. 3Q12
Average earning assets grew by $3.3 billion,
or 1.1%
Net interest margin lower by 4 bp (3.55% vs.
3.59%) driven by:
•
Reduction in the yield on the investment securities
portfolio and lower loan rates |
 19
4Q12 Earnings
Conference Call
Noninterest Income
Noninterest Income
Key Points
$ in millions
Payments = credit and debit card revenue, corporate payment products revenue and
merchant processing; Service charges = deposit service charges, treasury
management fees and ATM processing services vs. 4Q11
Noninterest income declined by $102 million, or
4.2%, driven by:
•
Lower other income due to the merchant settlement gain as well
as a gain related to the Company’s investment in Visa, both of
which were recorded in 4Q11
•
Lower merchant processing revenue (6.3% decline) due to rates
and the 4Q11 reversal of an accrual for a terminated revenue
sharing agreement and lower ATM processing services revenue
(25.2% decline) due to a 1Q12 classification change
•
Mortgage banking revenue increase of $173 million
•
Higher trust and investment management fees (12.7% increase)
•
Higher credit and debit card revenue (4.8% increase) and
corporate payment revenue (4.1% increase)
vs. 3Q12
Noninterest income declined by $67 million, or 2.8%,
driven by:
•
Mortgage banking revenue decrease of $43 million
•
Lower other income due to the net impact of the gain on sale of a
credit card portfolio and the charge related to an investment under
the equity method of accounting, both of which were recorded in
3Q12
•
Lower corporate payment revenue (11.4% decline) due to
seasonally lower volumes
•
Higher credit and debit card revenue (13.6% increase) principally
due to seasonally higher sales and prepaid card fees and trust
and investment management fees (4.2% increase) due to
seasonally higher billing income and business expansion
4Q11
1Q12
2Q12
3Q12
4Q12
Non-operating gains
263
$
-
$
-
$
-
$
-
$
Total
263
$
-
$
-
$
-
$
-
$
Notable Noninterest Income Items |
 20
4Q12 Earnings
Conference Call
Noninterest Expense
Noninterest Expense
Key Points
$ in millions
vs. 4Q11
Noninterest expense was lower by $10 million, or
0.4%, driven by:
•
Lower other expense due to the $130 million mortgage-
servicing related expense accrual recorded in 4Q11 partially
offset by the $80 million accrual for a mortgage foreclosure-
related regulatory settlement in the current quarter, as well as
declines in FDIC insurance expense and other real estate
owned costs
•
Lower net occupancy and equipment (6.0% decline)
principally reflecting the change in classification of ATM
surcharge revenue passed through to others
•
Lower marketing and business development (8.0% decline)
due to the timing of charitable contributions
•
Higher professional services (26.7% increase) principally due
to mortgage servicing review-related projects
•
Higher compensation (2.5% increase) and employee benefits
(14.4% increase)
vs. 3Q12
Noninterest expense was higher by $77 million, or
3.0%, driven by:
•
Higher other expense due to the mortgage foreclosure-related
regulatory settlement accrual and higher costs related to
investments in affordable housing and other tax-advantaged
projects, partially offset by lower litigation and insurance-
related costs
•
Higher professional services expense (15.3% increase) due to
mortgage servicing review-related projects
All Other
4Q11
1Q12
2Q12
3Q12
4Q12
Mortgage servicing matters
130
$
-
$
-
$
-
$
80
$
Total
130
$
-
$
-
$
-
$
80
$
Notable Noninterest Expense Items |
 21
4Q12 Earnings
Conference Call
Credit Quality
-
Commercial Loans
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Strong
new
lending
activity
resulted
in
3.3%
linked
quarter
loan
growth
and
18.4%
year-over-year
growth even though utilization rates remained at historically low levels
Nonperforming loans and net charge-offs continued to improve
year-over-year and on a linked quarter basis
Increases
in
early
and
late
stage
delinquencies
primarily
relate
to
government
payment
products
4Q11
3Q12
4Q12
Average Loans
$49,437
$56,655
$58,552
30-89 Delinquencies
0.48%
0.29%
0.48%
90+ Delinquencies
0.09%
0.07%
0.10%
Nonperforming Loans
0.55%
0.23%
0.18%
$ in millions
Revolving Line Utilization Trend |
 22
4Q12 Earnings
Conference Call
Credit Quality
-
Commercial Leases
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Net charge-offs and nonperforming loans continue to improve both on a linked
quarter and year- over-year basis
Delinquencies remain stable
4Q11
3Q12
4Q12
Average Loans
$5,834
$5,537
$5,377
30-89 Delinquencies
0.96%
0.93%
0.89%
90+ Delinquencies
0.00%
0.02%
0.00%
Nonperforming Loans
0.54%
0.35%
0.29%
$ in millions |
 23
4Q12 Earnings
Conference Call
Credit Quality
-
Commercial Real Estate
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Net charge-off ratio of 0.18%, down from 0.27% on a linked quarter basis and
from the 2Q10 peak of 2.67%
Late
stage
delinquencies
continue
to
decline
on
a
linked
quarter
basis,
ending
at
0.02%
Nonperforming loans improved on both a linked quarter and on a
year-over-year basis, ending at 1.48% 4Q11
3Q12
4Q12
Average Loans
$35,802
$36,630
$36,851
30-89 Delinquencies
0.38%
0.18%
0.43%
90+ Delinquencies
0.04%
0.03%
0.02%
Nonperforming Loans
2.51%
1.71%
1.48%
Performing TDRs
537
583
531
$ in millions
Investor
$19,487
Owner
Occupied
$11,275
Multi-family
$1,914
Retail
$460
Residential
Construction
$1,036
Condo
Construction
$157
A&D
Construction
$704
Office
$818
Other
$1,000 |
 24
4Q12 Earnings
Conference Call
Credit Quality
-
Residential Mortgage
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Strong growth in high quality originations (weighted average FICO 764, weighted
average LTV 65%) as average loans increased 5.3% over 3Q12, driven by demand
for refinancing Over 70% of the balances have been originated since the
beginning of 2009, the origination quality metrics and performance to date
have significantly outperformed prior vintages with similar seasoning
Delinquencies and nonperforming loans continue to decline as housing values
improve 4Q11
3Q12
4Q12
Average Loans
$36,256
$40,969
$43,156
30-89 Delinquencies
1.09%
0.93%
0.79%
90+ Delinquencies
0.98%
0.72%
0.64%
Nonperforming Loans
1.75%
1.81%
1.50%
$ in millions
** Excludes GNMA loans, whose repayments are insured by the FHA or guaranteed by
the Department of VA ($1,778 million 4Q12) *
Excluding
$22
million
related
to
a
regulatory
clarification
in
the
treatment
of
loans
to
borrowerswho
have
exited
bankruptcy
but
continue
to
make
payments
on
their
loans |
 25
4Q12 Earnings
Conference Call
4Q11
3Q12
4Q12
Average Loans
$16,271
$16,551
$16,588
30-89 Delinquencies
1.37%
1.41%
1.33%
90+ Delinquencies
1.36%
1.18%
1.27%
Nonperforming Loans
1.29%
0.99%
0.85%
Credit Quality -
Credit Card
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Net charge-offs continue to remain low
Late state delinquencies increased due to normal seasonal patterns
Nonperforming loans have decreased for six consecutive quarters
$ in millions
* Excluding portfolio purchases where the acquired loans were recorded at fair
value at the purchase date |
 26
4Q12 Earnings
Conference Call
Credit Quality -
Home Equity
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
High-quality originations (weighted average FICO 763, weighted average CLTV
71%) originated primarily through the retail branch network to existing bank
customers on their primary residence Early and late stage delinquencies have
improved year-over-year and on a linked quarter basis Net charge off
dollars are down year-over-year, however, the net charge off ratio has increased due to declining
loan balances
4Q11
3Q12
4Q12
Average Loans
$18,281
$17,329
$16,950
30-89 Delinquencies
0.90%
0.81%
0.76%
90+ Delinquencies
0.73%
0.32%
0.30%
Nonperforming Loans
0.22%
1.05%
1.13%
$ in millions
*
Excluding
$26
million
related
to
a
regulatory
clarification
in
the
treatment
of
loans
to
borrowerswho
have
exited
bankruptcy
but
continue
to
make
payments
on
their
loans |
 27
4Q12 Earnings
Conference Call
Credit Quality -
Retail Leasing
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
High-quality originations (weighted average FICO 772)
Retail leasing delinquencies have stabilized at very low levels
Strong used auto values continued to contribute to historically low net
charge-offs 4Q11
3Q12
4Q12
Average Loans
$5,150
$5,256
$5,384
30-89 Delinquencies
0.19%
0.17%
0.22%
90+ Delinquencies
0.02%
0.02%
0.02%
Nonperforming Loans
0.00%
0.02%
0.02%
$ in millions
*
Manheim
Used
Vehicle
Value
Index
source:
www.manheimconsulting.com,
January
1995
=
100,
quarter
value
=
average
monthly
ending
value |
 28
4Q12 Earnings
Conference Call
Credit Quality -
Other Retail
Average Loans and Net Charge-offs Ratios
Key Statistics
Comments
Average balances increased modestly year-over-year, growth in Auto Loans
(9.2%) more than offset declines in Student Lending loan balances
Delinquencies and nonperforming loans remain stable and at very low levels
4Q11
3Q12
4Q12
Average Loans
$24,901
$25,406
$25,595
30-89 Delinquencies
0.68%
0.59%
0.59%
90+ Delinquencies
0.20%
0.16%
0.17%
Nonperforming Loans
0.11%
0.12%
0.11%
$ in millions
* Excluding $5 million related to a regulatory clarification in the treatment of
loans to borrowers who have exited bankruptcy but continue to make payments on their loans |
 29
4Q12 Earnings
Conference Call
Non-GAAP Financial Measures
$ in millions
4Q12
3Q12
2Q12
1Q12
4Q11
Total equity
40,267
$
39,825
$
38,874
$
36,914
$
34,971
$
Preferred stock
(4,769)
(4,769)
(4,769)
(3,694)
(2,606)
Noncontrolling interests
(1,269)
(1,164)
(1,082)
(1,014)
(993)
Goodwill (net of deferred tax liability)
(8,351)
(8,194)
(8,205)
(8,233)
(8,239)
Intangible assets (exclude mortgage servicing rights)
(1,006)
(980)
(1,118)
(1,182)
(1,217)
Tangible common equity (a)
24,872
24,718
23,700
22,791
21,916
Tier 1 capital, determined in accordance with prescribed regulatory
requirements using Basel I definition 31,203
30,766
30,044
29,976
29,173
Trust preferred securities
-
-
-
(1,800)
(2,675)
Preferred stock
(4,769)
(4,769)
(4,769)
(3,694)
(2,606)
Noncontrolling interests, less preferred stock not eligible for Tier I
capital (685)
(685)
(685)
(686)
(687)
Tier 1 common equity using Basel I definition (b)
25,749
25,312
24,590
23,796
23,205
Tangible common equity (as calculated above)
22,791
21,916
Adjustments
1
434
450
Tier 1 common equity using Basel III proposals published prior to June 2012
(c) 23,225
22,366
Tangible common equity (as calculated above)
24,872
24,718
23,700
Adjustments
2
126
157
153
Tier 1 common equity approximated using proposed rules for the Basel III
standardized approach released June 2012 (d) 24,998
24,875
23,853
Total assets
353,855
352,253
353,136
340,762
340,122
Goodwill (net of deferred tax liability)
(8,351)
(8,194)
(8,205)
(8,233)
(8,239)
Intangible assets (exclude mortgage servicing rights)
(1,006)
(980)
(1,118)
(1,182)
(1,217)
Tangible assets (e)
344,498
343,079
343,813
331,347
330,666
Risk-weighted assets, determined in accordance with prescribed
regulatory requirements using Basel I definition (f) 287,611
282,033
279,972
274,847
271,333
Risk-weighted assets using Basel III proposals published prior to June
2012 (g) -
-
-
277,856
274,351
Risk-weighted assets, determined in accordance with prescribed
regulatory requirements using Basel I definition 287,611
282,033
279,972
Adjustments3
21,233
22,167
23,240
Risk-weighted assets approximated using proposed rules for the Basel III
standardized approach released June 2012 (h) 308,844
304,200
303,212
Ratios
Tangible common equity to tangible assets (a)/(e)
7.2%
7.2%
6.9%
6.9%
6.6%
Tangible common equity to risk-weighted assets using Basel I definition
(a)/(f) 8.6%
8.8%
8.5%
8.3%
8.1%
Tier 1 common equity to risk-weighted assets using Basel I definition
(b)/(f) 9.0%
9.0%
8.8%
8.7%
8.6%
Tier 1 common equity to risk-weighted assets using Basel III proposals
published prior to June 2012 (c)/(g) -
-
-
8.4%
8.2%
Tier 1 common equity to risk-weighted assets approximated using proposed
rules for the Basel III standardized approach released June 2012 (d)/(h)
8.1%
8.2%
7.9%
-
-
4Q12 risk-weighted assets are preliminary data, subject to change prior
to filings with applicable regulatory agencies
1
Principally net losses on cash flow hedges included in accumulated other
comprehensive income 2
Includes net losses on cash flow hedges included in accumulated other
comprehensive income, unrealized losses on securities transferred from available-for-sale to held-to-maturity included in accumulated
other comprehensive income and disallowed mortgage servicing rights
3
Includes higher risk-weighting for residential mortgages, unfunded loan
commitments, investment securities and purchased mortgage servicing rights, and other adjustments |
 U.S.
Bancorp 4Q12 Earnings
Conference Call
U.S. Bancorp
4Q12 Earnings
Conference Call
January 16, 2013 |