Exhibit 99.1

EX-99.1 2 d122322dex991.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

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News Release

Contacts:

Dana Ripley

Media

(612) 303-3167

Sean O’Connor

Investors/Analysts

(612) 303-0778

U.S. BANCORP REPORTS FOURTH QUARTER AND FULL YEAR 2015 EARNINGS

Achieves Record Net Income and EPS for the Full Year 2015

Full year return on average assets of 1.44 percent and average common equity of 14.0 percent

Returned 72 percent of full year earnings to shareholders

MINNEAPOLIS, January 15, 2016 — U.S. Bancorp (NYSE: USB) today reported net income of $1,476 million for the fourth quarter of 2015, or $0.80 per diluted common share, compared with $1,488 million, or $0.79 per diluted common share, in the fourth quarter of 2014. The fourth quarter of 2015 reflected a gain on the sale of a deposit portfolio, partially offset by accruals related to legal and compliance matters that, combined, increased diluted earnings per common share by $.01.

Highlights for the full year of 2015 included:

Record full year diluted earnings per common share of $3.16, which were 2.6 percent higher than 2014

Industry-leading return on average assets of 1.44 percent and average common equity of 14.0 percent

Returned 72 percent of 2015 earnings to shareholders through dividends and share buybacks

Highlights for the fourth quarter of 2015 included:

Record quarterly revenue

Growth in average total loans of 4.2 percent over the fourth quarter of 2014 and 1.7 percent on a linked quarter basis (excluding student loans, which were transferred to held for sale at the end of the first quarter of 2015 and returned to held for investment on September 1, 2015)

Growth in average total commercial loans of 9.0 percent over the fourth quarter of 2014 and 2.5 percent over the third quarter of 2015

Growth in average auto loans of 13.0 percent over the fourth quarter of 2014 and 2.0 percent over the third quarter of 2015

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

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Growth in average total deposits of 6.9 percent over the fourth quarter of 2014 and 1.7 percent on a linked quarter basis

Growth in average low-cost deposits, including noninterest-bearing and total savings deposits, of 11.4 percent year-over-year and 2.4 percent on a linked quarter basis

Net interest income growth of 2.6 percent year-over-year and 1.8 percent linked quarter

Growth in average earnings assets of 5.1 percent year-over-year, and 1.0 percent on a linked quarter basis

Net interest margin relatively stable at 3.06 percent for the fourth quarter of 2015 compared with 3.04 percent in the prior quarter

Continued momentum in payment-related fee revenue led by year-over-year increases in credit and debit card revenue of 8.1 percent

Operating leverage improving at 0.6 percent year-over-year

Strong capital position. At December 31, 2015, common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach was 9.1 percent and for the Basel III fully implemented advanced approaches was 11.9 percent.


EARNINGS SUMMARY																		Table 1
($ in millions, except per-share data)	4Q 2015		3Q 2015		4Q 2014		Percent Change 4Q15 vs 3Q15			Percent Change 4Q15 vs 4Q14			Full Year 2015		Full Year 2014		Percent Change


Net income attributable to U.S. Bancorp		$1,476		$1,489		$1,488		(.9	)		(.8	)		$5,879		$5,851		.5
Diluted earnings per common share		$.80		$.81		$.79		(1.2	)		1.3			$3.16		$3.08		2.6

Return on average assets (%)		1.41		1.44		1.50								1.44		1.54
Return on average common equity (%)		13.7		14.1		14.4								14.0		14.7
Net interest margin (%)		3.06		3.04		3.14								3.05		3.23
Efficiency ratio (%) (a)		53.9		53.9		54.3								53.8		53.2
Tangible efficiency ratio (%) (a)		53.0		53.1		53.3								53.0		52.2

Dividends declared per common share		$.255		$.255		$.245		—			4.1			$1.010		$.965		4.7
Book value per common share (period end)		$23.28		$22.99		$21.68		1.3			7.4

(a) Computed as noninterest expense divided by the sum of net interest income on a taxable-equivalent basis and noninterest income excluding net securities gains (losses), and for tangible efficiency ratio, intangible amortization.

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U.S. Bancorp Reports Fourth Quarter 2015 Results

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Net income attributable to U.S. Bancorp was $1,476 million for the fourth quarter of 2015, 0.8 percent lower than the $1,488 million for the fourth quarter of 2014, and 0.9 percent lower than the $1,489 million for the third quarter of 2015. Diluted earnings per common share of $0.80 in the fourth quarter of 2015 were $0.01 higher than the fourth quarter of 2014 and $0.01 lower than the previous quarter. The decrease in net income year-over-year was due to a higher provision for credit losses, lower noninterest income, impacted by the 2014 Nuveen gain, partially offset by increases in payments-related revenue and trust and investment management fees and the gain on the sale of a Health Savings Account deposit portfolio (“HSA deposit sale”), along with an increase in net interest income primarily driven by growth in earning assets. The decrease in net income on a linked quarter basis was primarily due to a seasonal increase in noninterest expense and the provision for credit losses, partially offset by higher net interest income primarily due to loan growth.

U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “U.S. Bancorp delivered a remarkable performance in 2015; a year underscored by persistent and historically low interest rates, modest economic growth, and increasing regulatory requirements. More than any year in recent history, 2015 required strong management focus as we balanced decisions on operating efficiencies with opportunities for investing in future growth and addressing our customers’ needs. U.S. Bancorp rose to that challenge, delivering record net income and diluted EPS for the year and continuing with industry-leading performance metrics. We are well positioned as we move into 2016 – as indicated by our record fourth quarter revenue, strong momentum toward positive operating leverage during the quarter and the continued stability in our net interest margin. We also created value for our shareholders as we returned 72 percent of our 2015 earnings back to shareholders through dividends and share buybacks.

“As the operating environment continues to improve, we are optimistic about the momentum building in our core businesses, particularly within our Wealth Management and Security Services and Payment Services businesses. We recently announced an exciting new agreement with Fidelity Investments. U.S. Bank will become the exclusive issuer of the Fidelity^® Rewards Visa Signature^® Card and the Fidelity Investments 529 College Rewards^® Visa Signature^® Card. This program reflects the strength of our Payment Services business and strategic significance of our diversified business model.

“I am very proud of our 67,000 employees and their passionate commitment to creating value for our shareholders, customers, and communities. We were recently named one of the Most Ethical Companies in the World by the Ethisphere Institute. We also became one of the few banks to offer all the “Pays” – Apple Pay, Samsung Pay, and Android Pay – to our customers. We were one of the top three Small Business

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

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Administration (SBA) lenders, fueling economic growth and progress across the country. And we invested millions of dollars and thousands of hours into improving our communities. As we look to 2016, we are well positioned to continue providing quality products and services to our customers and exceptional value to our shareholders from a position of strength and stability that our stakeholders have come to expect from U.S. Bancorp.”


INCOME STATEMENT HIGHLIGHTS																							Table 2
(Taxable-equivalent basis, $ in millions, except per-share data)										Percent Change 4Q15 vs 3Q15			Percent Change 4Q15 vs 4Q14
	4Q 2015			3Q 2015			4Q 2014			Percent Change 4Q15 vs 3Q15			Percent Change 4Q15 vs 4Q14			Full Year 2015			Full Year 2014			Percent Change


Net interest income		$2,871			$2,821			$2,799			1.8			2.6			$11,214			$10,997			2.0
Noninterest income		2,340			2,326			2,370			.6			(1.3	)		9,092			9,164			(.8	)

Total net revenue		5,211			5,147			5,169			1.2			.8			20,306			20,161			.7
Noninterest expense		2,809			2,775			2,804			1.2			.2			10,931			10,715			2.0

Income before provision and taxes		2,402			2,372			2,365			1.3			1.6			9,375			9,446			(.8	)
Provision for credit losses		305			282			288			8.2			5.9			1,132			1,229			(7.9	)

Income before taxes		2,097			2,090			2,077			.3			1.0			8,243			8,217			.3
Taxable-equivalent adjustment		52			53			55			(1.9	)		(5.5	)		213			222			(4.1	)
Applicable income taxes		556			534			521			4.1			6.7			2,097			2,087			.5

Net income		1,489			1,503			1,501			(.9	)		(.8	)		5,933			5,908			.4
Net (income) loss attributable to noncontrolling interests		(13	)		(14	)		(13	)		7.1			—			(54	)		(57	)		5.3

Net income attributable to U.S. Bancorp		$1,476			$1,489			$1,488			(.9	)		(.8	)		$5,879			$5,851			.5

Net income applicable to U.S. Bancorp common shareholders		$1,404			$1,422			$1,420			(1.3	)		(1.1	)		$5,608			$5,583			.4

Diluted earnings per common share		$.80			$.81			$.79			(1.2	)		1.3			$3.16			$3.08			2.6

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

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NET INTEREST INCOME																						Table 3
(Taxable-equivalent basis; $ in millions)	4Q 2015			3Q 2015			4Q 2014			Change 4Q15 vs 3Q15			Change 4Q15 vs 4Q14			Full Year 2015			Full Year 2014		Change


Components of net interest income
Income on earning assets		$3,209			$3,171			$3,158			$38			$51			$12,619			$12,454		$165
Expense on interest-bearing liabilities		338			350			359			(12	)		(21	)		1,405			1,457		(52	)

Net interest income		$2,871			$2,821			$2,799			$50			$72			$11,214			$10,997		$217


Average yields and rates paid
Earning assets yield		3.42	%		3.42	%		3.54	%		—	%		(.12	)%		3.43	%		3.65%		(.22)%
Rate paid on interest-bearing liabilities		.50			.52			.55			(.02	)		(.05	)		.52			.58		(.06)

Gross interest margin		2.92	%		2.90	%		2.99	%		.02	%		(.07	)%		2.91	%		3.07%		(.16)%

Net interest margin		3.06	%		3.04	%		3.14	%		.02	%		(.08	)%		3.05	%		3.23%		(.18)%


Average balances
Investment securities (a)		$105,536			$103,943			$98,164			$1,593			$7,372			$103,161			$90,327		$12,834
Loans		256,692			250,536			246,421			6,156			10,271			250,459			241,692		8,767
Earning assets		373,091			369,265			354,961			3,826			18,130			367,445			340,994		26,451
Interest-bearing liabilities		269,940			269,479			259,938			461			10,002			269,474			249,972		19,502

(a) Excludes unrealized gain (loss)

Net Interest Income

Net interest income on a taxable-equivalent basis in the fourth quarter of 2015 was $2,871 million, an increase of $72 million (2.6 percent) over the fourth quarter of 2014. The increase was the result of growth in average earning assets, partially offset by a continued shift in loan portfolio mix. Average earning assets were $18.1 billion (5.1 percent) higher than the fourth quarter of 2014, driven by increases of $10.3 billion (4.2 percent) in average total loans and $7.4 billion (7.5 percent) in average investment securities. Net interest income increased $50 million (1.8 percent) on a linked quarter basis, primarily due to higher average total loans. Average total loans were $4.2 billion (1.7 percent) higher on a linked quarter basis, excluding the student loan reclassification.

The net interest margin in the fourth quarter of 2015 was 3.06 percent, compared with 3.14 percent in the fourth quarter of 2014, and 3.04 percent in the third quarter of 2015. The decrease in the net interest margin on a year-over-year basis primarily reflected a change in loan portfolio mix, as well as growth in the investment portfolio at lower average rates and lower reinvestment rates on investment securities. On a linked quarter basis, the increase in the net interest margin was principally due to loan growth which also resulted in lower cash balances.

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

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Investment Securities

Average investment securities in the fourth quarter of 2015 were $7.4 billion (7.5 percent) higher year-over-year and $1.6 billion (1.5 percent) higher than the prior quarter. These increases were primarily due to purchases of U.S. government agency-backed securities, net of prepayments and maturities, to support regulatory liquidity coverage ratio requirements.


AVERAGE LOANS																		Table 4
($ in millions)	4Q 2015		3Q 2015		4Q 2014		Percent Change 4Q15 vs 3Q15			Percent Change 4Q15 vs 4Q14			Full Year 2015		Full Year 2014		Percent Change


Commercial		$81,592		$79,486		$74,333		2.6			9.8			$78,815		$70,549		11.7
Lease financing		5,211		5,218		5,292		(.1	)		(1.5	)		5,268		5,185		1.6

Total commercial		86,803		84,704		79,625		2.5			9.0			84,083		75,734		11.0

Commercial mortgages		31,830		32,083		31,783		(.8	)		.1			32,378		31,949		1.3
Construction and development		10,401		10,233		9,183		1.6			13.3			10,037		8,643		16.1

Total commercial real estate		42,231		42,316		40,966		(.2	)		3.1			42,415		40,592		4.5

Residential mortgages		52,970		51,831		51,872		2.2			2.1			51,840		51,818		—

Credit card		18,838		17,944		17,990		5.0			4.7			18,057		17,635		2.4

Retail leasing		5,265		5,480		5,939		(3.9	)		(11.3	)		5,563		5,981		(7.0	)
Home equity and second mortgages		16,241		16,083		15,853		1.0			2.4			16,046		15,564		3.1
Other		29,556		27,286		27,317		8.3			8.2			27,470		26,808		2.5

Total other retail		51,062		48,849		49,109		4.5			4.0			49,079		48,353		1.5


Total loans, excluding covered loans		251,904		245,644		239,562		2.5			5.2			245,474		234,132		4.8


Covered loans		4,788		4,892		6,859		(2.1	)		(30.2	)		4,985		7,560		(34.1	)


Total loans		$256,692		$250,536		$246,421		2.5			4.2			$250,459		$241,692		3.6

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

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Loans

Average total loans were $10.3 billion (4.2 percent) higher in the fourth quarter of 2015 than the fourth quarter of 2014, due to growth in total commercial loans (9.0 percent), credit card loans (4.7 percent), total other retail loans (4.0 percent) total commercial real estate loans (3.1 percent) and residential mortgages (2.1 percent). These increases were partially offset by a decline in covered loans (30.2 percent), including the impact of the expiration of the loss sharing agreements on commercial and commercial real estate assets at the end of 2014. Average total loans were $6.2 billion (2.5 percent) higher in the fourth quarter of 2015 than the third quarter of 2015. Excluding the student loan reclassification, average total loans were $4.2 billion (1.7 percent) higher in the fourth quarter of 2015 than the third quarter of 2015. The increase was driven by growth in total commercial loans (2.5 percent), credit card (5.0 percent) and residential mortgages (2.2 percent). The Company also acquired a $1.6 billion credit card portfolio at the end of the fourth quarter of 2015 which did not have a material impact to average balances for the quarter.


AVERAGE DEPOSITS																		Table 5
($ in millions)	4Q 2015		3Q 2015		4Q 2014		Percent Change 4Q15 vs 3Q15			Percent Change 4Q15 vs 4Q14			Full Year 2015		Full Year 2014		Percent Change


Noninterest-bearing deposits	$	83,894	$	80,940	$	76,958		3.6			9.0		$	79,203	$	73,455		7.8
Interest-bearing savings deposits
Interest checking		57,109		56,888		54,199		.4			5.4			55,974		53,248		5.1
Money market savings		82,828		80,338		68,914		3.1			20.2			79,266		63,977		23.9
Savings accounts		37,991		37,480		34,955		1.4			8.7			37,150		34,196		8.6

Total of savings deposits		177,928		174,706		158,068		1.8			12.6			172,390		151,421		13.8
Time deposits		32,683		34,046		40,453		(4.0	)		(19.2	)		35,558		41,764		(14.9	)

Total interest-bearing deposits		210,611		208,752		198,521		.9			6.1			207,948		193,185		7.6

Total deposits	$	294,505	$	289,692	$	275,479		1.7			6.9		$	287,151	$	266,640		7.7

Deposits

Average total deposits for the fourth quarter of 2015 were $19.0 billion (6.9 percent) higher than the fourth quarter of 2014. Average noninterest-bearing deposits increased $6.9 billion (9.0 percent) year-over-year, mainly in Wholesale Banking and Commercial Real Estate and Consumer and Small Business Banking. Average total savings deposits were $19.9 billion (12.6 percent) higher year-over-year, the result of

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

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growth in corporate trust, Wholesale Banking and Commercial Real Estate, and Consumer and Small Business Banking balances. Growth in Consumer and Small Business Banking total savings deposits included net new account growth of 3.2 percent. Average time deposits were $7.8 billion (19.2 percent) lower than the prior year quarter. Changes in time deposits are largely related to those deposits managed as an alternative to other wholesale funding sources, based on funding needs and relative pricing.

Average total deposits increased $4.8 billion (1.7 percent) over the third quarter of 2015. Average noninterest-bearing deposits increased $3.0 billion (3.6 percent) on a linked quarter basis, due to higher balances in Wholesale Banking and Commercial Real Estate and corporate trust. Average total savings deposits increased $3.2 billion (1.8 percent), reflecting increases in Wholesale Banking and Commercial Real Estate and Consumer and Small Business Banking. Average time deposits, which are managed based on funding needs and relative pricing, decreased $1.4 billion (4.0 percent) on a linked quarter basis.


NONINTEREST INCOME																			Table 6
($ in millions)	4Q 2015		3Q 2015			4Q 2014		Percent Change 4Q15 vs 3Q15			Percent Change 4Q15 vs 4Q14			Full Year 2015		Full Year 2014		Percent Change


Credit and debit card revenue	$	294	$	269		$	272		9.3			8.1		$	1,070	$	1,021		4.8
Corporate payment products revenue		170		190			174		(10.5	)		(2.3	)		708		724		(2.2	)
Merchant processing services		393		400			384		(1.8	)		2.3			1,547		1,511		2.4
ATM processing services		79		81			80		(2.5	)		(1.3	)		318		321		(.9	)
Trust and investment management fees		336		329			322		2.1			4.3			1,321		1,252		5.5
Deposit service charges		182		185			180		(1.6	)		1.1			702		693		1.3
Treasury management fees		139		143			136		(2.8	)		2.2			561		545		2.9
Commercial products revenue		222		231			219		(3.9	)		1.4			867		854		1.5
Mortgage banking revenue		211		224			235		(5.8	)		(10.2	)		906		1,009		(10.2	)
Investment products fees		44		46			49		(4.3	)		(10.2	)		185		191		(3.1	)
Securities gains (losses), net		1		(1	)		1		nm			—			—		3		nm
Other		269		229			318		17.5			(15.4	)		907		1,040		(12.8	)


Total noninterest income	$	2,340	$	2,326		$	2,370		.6			(1.3	)	$	9,092	$	9,164		(.8	)

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

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Noninterest Income

Fourth quarter noninterest income was $2,340 million, which was $30 million (1.3 percent) lower than the fourth quarter of 2014 and $14 million (0.6 percent) higher than the third quarter of 2015. The year-over-year decrease in noninterest income was primarily due to the impact of the 2014 Nuveen gain, partially offset by fee revenue growth and the HSA deposit sale. Higher credit and debit card revenue, trust and investment management fees, and merchant processing services were partially offset by a decrease in mortgage banking revenue, primarily due to an unfavorable change in the valuation of mortgage servicing rights (“MSRs”), net of hedging activities. Credit and debit card revenue increased $22 million (8.1 percent) due to higher transaction volumes. Trust and investment management fees increased $14 million (4.3 percent), reflecting the benefits of the Company’s investments in corporate trust and fund services businesses, as well as account growth and improved market conditions and lower fee waivers. Merchant processing services increased $9 million (2.3 percent) as a result of higher transaction volumes, along with account growth and equipment sales to merchants related to new chip card technology requirements, which decreased in the fourth quarter of 2015 compared with the third quarter of 2015. Adjusted for the approximate $16 million impact of foreign currency rate changes, year-over-year merchant processing services growth would have been approximately 6.5 percent.

Noninterest income was $14 million (0.6 percent) higher in the fourth quarter of 2015 than the third quarter of 2015. The increase in noninterest income on a linked quarter basis was primarily due to the HSA deposit sale and credit and debit card revenue, partially offset by seasonally lower corporate payment products revenue and lower mortgage banking revenue. Credit and debit card revenue increased $25 million (9.3 percent), primarily due to seasonally higher sales volumes. Other income increased $40 million (17.5 percent) reflecting the impact of the prior quarter notable items including the Visa Inc. Class B common stock sales and the student loan market adjustment, offset by the HSA deposit sale and other equity investment income. Corporate payment products revenue decreased $20 million (10.5 percent), reflecting the impact of seasonally higher third quarter government-related transaction volumes and mortgage banking revenue decreased $13 million (5.8 percent), primarily due to lower origination revenue.

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

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NONINTEREST EXPENSE																		Table 7
($ in millions)	4Q 2015		3Q 2015		4Q 2014		Percent Change 4Q15 vs 3Q15			Percent Change 4Q15 vs 4Q14			Full Year 2015		Full Year 2014		Percent Change


Compensation	$	1,212	$	1,225	$	1,151		(1.1	)		5.3		$	4,812	$	4,523		6.4
Employee benefits		272		285		245		(4.6	)		11.0			1,167		1,041		12.1
Net occupancy and equipment		246		251		248		(2.0	)		(.8	)		991		987		.4
Professional services		125		115		132		8.7			(5.3	)		423		414		2.2
Marketing and business development		96		99		129		(3.0	)		(25.6	)		361		382		(5.5	)
Technology and communications		230		222		219		3.6			5.0			887		863		2.8
Postage, printing and supplies		74		77		86		(3.9	)		(14.0	)		297		328		(9.5	)
Other intangibles		46		42		51		9.5			(9.8	)		174		199		(12.6	)
Other		508		459		543		10.7			(6.4	)		1,819		1,978		(8.0	)


Total noninterest expense	$	2,809	$	2,775	$	2,804		1.2			.2		$	10,931	$	10,715		2.0

Noninterest Expense

Fourth quarter noninterest expense was $2,809 million, which was $5 million (0.2 percent) higher than the fourth quarter of 2014. Compensation expense increased $61 million (5.3 percent), reflecting the impact of merit increases and higher staffing for risk and compliance activities, while employee benefits expense was $27 million (11.0 percent) higher, mainly due to increased pension costs. Offsetting these increases was a $33 million (25.6 percent) decline in marketing and business development, principally due to charitable contributions in the fourth quarter of 2014, and $35 million (6.4 percent) lower other noninterest expense, reflecting the impact of prior year legal accruals partially offset by higher compliance-related expenses.

Noninterest expense increased $34 million (1.2 percent) on a linked quarter basis, reflecting seasonally higher costs related to investments in tax-advantaged projects and accruals related to legal and compliance matters, partially offset by the favorable impact of reduced mortgage-related compliance and talent upgrade costs which were elevated in the third quarter 2015. Compensation expense declined $13 million (1.1 percent), reflecting the impact of expense management initiatives and decreases in variable compensation, and a $13 million (4.6 percent) decrease in employee benefits expense was driven by lower payroll tax expense and healthcare costs.

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

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Provision for Income Taxes

The provision for income taxes for the fourth quarter of 2015 resulted in a tax rate on a taxable-equivalent basis of 29.0 percent (effective tax rate of 27.2 percent), compared with 27.7 percent (effective tax rate of 25.8 percent) in the fourth quarter of 2014, and 28.1 percent (effective tax rate of 26.2 percent) in the third quarter of 2015.

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

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ALLOWANCE FOR CREDIT LOSSES																										Table 8
($ in millions)	4Q						3Q						2Q						1Q						4Q
	2015			% (b)			2015			% (b)			2015			% (b)			2015			% (b)			2014			% (b)

Balance, beginning of period	$	4,306					$	4,326					$	4,351					$	4,375					$	4,414
Net charge-offs
Commercial		58			.28			68			.34			39			.20			40			.21			48			.26
Lease financing		5			.38			3			.23			3			.23			3			.23			(2	)		(.15	)

Total commercial		63			.29			71			.33			42			.20			43			.21			46			.23
Commercial mortgages		2			.02			—			—			4			.05			(1	)		(.01	)		(3	)		(.04	)
Construction and development		(2	)		(.08	)		(11	)		(.43	)		(3	)		(.12	)		(17	)		(.72	)		(7	)		(.30	)

Total commercial real estate		—			—			(11	)		(.10	)		1			.01			(18	)		(.17	)		(10	)		(.10	)
Residential mortgages		16			.12			25			.19			33			.26			35			.28			39			.30
Credit card		166			3.50			153			3.38			169			3.85			163			3.71			160			3.53
Retail leasing		1			.08			2			.14			1			.07			1			.07			1			.07
Home equity and second mortgages		6			.15			7			.17			11			.28			14			.36			17			.43
Other		53			.71			45			.65			39			.62			41			.60			52			.76

Total other retail		60			.47			54			.44			51			.43			56			.46			70			.57

Total net charge-offs, excluding covered loans		305			.48			292			.47			296			.49			279			.47			305			.51
Covered loans		—			—			—			—			—			—			—			—			3			.17

Total net charge-offs		305			.47			292			.46			296			.48			279			.46			308			.50
Provision for credit losses		305						282						281						264						288
Other changes (a)		—						(10	)					(10	)					(9	)					(19	)

Balance, end of period	$	4,306					$	4,306					$	4,326					$	4,351					$	4,375

Components
Allowance for loan losses	$	3,863					$	3,965					$	4,013					$	4,023					$	4,039
Liability for unfunded credit commitments		443						341						313						328						336

Total allowance for credit losses	$	4,306					$	4,306					$	4,326					$	4,351					$	4,375

Gross charge-offs	$	381					$	372					$	380					$	383					$	415
Gross recoveries	$	76					$	80					$	84					$	104					$	107
Allowance for credit losses as a percentage of
Period-end loans, excluding covered loans		1.67						1.71						1.76						1.79						1.78
Nonperforming loans, excluding covered loans		360						347						348						321						297
Nonperforming assets, excluding covered assets		288						280						279						261						245
Period-end loans		1.65						1.69						1.74						1.77						1.77
Nonperforming loans		361						347						349						322						298
Nonperforming assets		283						275						274						257						242

(a) Includes net changes in credit losses to be reimbursed by the FDIC and reductions in the allowance for covered loans where the reversal of a previously recorded allowance was offset by an associated decrease in the indemnification asset, and the impact of any loan sales.
(b) Annualized and calculated on average loan balances

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

Page 13

Credit Quality

The Company’s provision for credit losses for the fourth quarter of 2015 was $305 million, which was $23 million (8.2 percent) higher than the prior quarter and $17 million (5.9 percent) higher than the fourth quarter of 2014. The provision for credit losses was equal to net charge-offs in the fourth quarter of 2015, $10 million lower than net charge-offs in the third quarter of 2015, and $20 million lower than net charge-offs in the fourth quarter of 2014. Total net charge-offs in the fourth quarter of 2015 were $305 million, compared with $292 million in the third quarter of 2015, and $308 million in the fourth quarter of 2014. Net charge-offs increased $13 million (4.5 percent) on a linked quarter basis due to seasonally higher credit card charge-offs and lower commercial mortgage and construction and development recoveries, while the $3 million (1.0 percent) decrease in net charge-offs on a year-over-year basis reflected improvements in residential mortgages and total other retail loans. Given current economic conditions, the Company expects the level of net charge-offs to remain relatively stable in the first quarter of 2016.

The allowance for credit losses was $4,306 million at December 31, 2015, and at September 30, 2015, compared with $4,375 million at December 31, 2014. The ratio of the allowance for credit losses to period-end loans was 1.65 percent at December 31, 2015, compared with 1.69 percent at September 30, 2015, and 1.77 percent at December 31, 2014. The ratio of the allowance for credit losses to nonperforming loans was 361 percent at December 31, 2015, compared with 347 percent at September 30, 2015, and 298 percent at December 31, 2014.

At December 31, 2015, approximately $3.2 billion of commercial loans (approximately 1.2 percent of total loans outstanding) were to customers in energy-related businesses. The decline in energy prices over the past year has resulted in deterioration of a portion of these loans; however, the impact of this deterioration was not significant to the Company during 2015. Based on the uncertain outlook for commodity prices in the near term and the potential for further energy price declines, the Company may see additional stress within its energy and metals-related loan portfolios in 2016. At December 31, 2015, the Company had credit reserves of approximately 5 percent of total energy loan balances.

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

Page 14


DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES										Table 9
(Percent)
	Dec 31 2015		Sep 30 2015		Jun 30 2015		Mar 31 2015		Dec 31 2014


Delinquent loan ratios - 90 days or more past due excluding nonperforming loans
Commercial		.05		.05		.05		.05		.05
Commercial real estate		.03		.05		.05		.07		.05
Residential mortgages		.33		.33		.30		.33		.40
Credit card		1.09		1.10		1.03		1.19		1.13
Other retail		.15		.14		.14		.15		.15
Total loans, excluding covered loans		.21		.20		.19		.22		.23
Covered loans		6.31		6.57		6.66		7.01		7.48
Total loans		.32		.32		.32		.36		.38

Delinquent loan ratios - 90 days or more past due including nonperforming loans
Commercial		.25		.25		.16		.16		.19
Commercial real estate		.33		.39		.46		.58		.65
Residential mortgages		1.66		1.73		1.80		1.95		2.07
Credit card		1.13		1.16		1.12		1.32		1.30
Other retail		.46		.47		.51		.55		.53
Total loans, excluding covered loans		.67		.70		.70		.77		.83
Covered loans		6.48		6.80		6.88		7.25		7.74
Total loans		.78		.81		.82		.91		.97

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

Page 15


ASSET QUALITY										Table 10
($ in millions)
	Dec 31 2015		Sep 30 2015		Jun 30 2015		Mar 31 2015		Dec 31 2014


Nonperforming loans
Commercial		$160		$157		$78		$74		$99
Lease financing		14		12		12		13		13

Total commercial		174		169		90		87		112

Commercial mortgages		92		105		116		142		175
Construction and development		35		39		59		75		84

Total commercial real estate		127		144		175		217		259

Residential mortgages		712		735		769		825		864
Credit card		9		12		16		22		30
Other retail		162		171		178		187		187

Total nonperforming loans, excluding covered loans		1,184		1,231		1,228		1,338		1,452

Covered loans		8		11		11		12		14

Total nonperforming loans		1,192		1,242		1,239		1,350		1,466

Other real estate (a)		280		276		287		293		288
Covered other real estate (a)		32		31		35		37		37
Other nonperforming assets		19		18		16		16		17

Total nonperforming assets (b)		$1,523		$1,567		$1,577		$1,696		$1,808


Total nonperforming assets, excluding covered assets		$1,483		$1,525		$1,531		$1,647		$1,757


Accruing loans 90 days or more past due, excluding covered loans		$541		$510		$469		$521		$550


Accruing loans 90 days or more past due		$831		$825		$801		$880		$945


Performing restructured loans, excluding GNMA and covered loans		$2,766		$2,746		$2,815		$2,684		$2,832


Performing restructured GNMA and covered loans		$1,944		$2,031		$2,111		$2,186		$2,273


Nonperforming assets to loans plus ORE, excluding covered assets (%)		.58		.61		.63		.68		.72

Nonperforming assets to loans plus ORE (%)		.58		.61		.63		.69		.73

(a) Includes equity investments in entities whose principal assets are other real estate owned.
(b) Does not include accruing loans 90 days or more past due.

Nonperforming assets decreased on a linked quarter and year-over-year basis to $1,523 million at December 31, 2015, compared with $1,567 million at September 30, 2015, and $1,808 million at December 31, 2014. The ratio of nonperforming assets to loans and other real estate was 0.58 percent at December 31, 2015, compared with 0.61 percent at September 30, 2015, and 0.73 percent at December 31, 2014. The decrease in nonperforming assets on a year-over-year basis was driven primarily by reductions in the commercial real estate portfolios and residential mortgages, as economic conditions continued to slowly

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

Page 16

improve. Accruing loans 90 days or more past due were $831 million ($541 million excluding covered loans) at December 31, 2015, compared with $825 million ($510 million excluding covered loans) at September 30, 2015, and $945 million ($550 million excluding covered loans) at December 31, 2014. The Company expects total nonperforming assets to remain relatively stable in the first quarter of 2016.


COMMON SHARES														Table 11
(Millions)	4Q 2015			3Q 2015			2Q 2015			1Q 2015			4Q 2014


Beginning shares outstanding		1,754			1,767			1,780			1,786			1,795
Shares issued for stock incentive plans, acquisitions and other corporate purposes		1			3			1			6			2
Shares repurchased		(10	)		(16	)		(14	)		(12	)		(11	)

Ending shares outstanding		1,745			1,754			1,767			1,780			1,786

Capital Management

Total U.S. Bancorp shareholders’ equity was $46.1 billion at December 31, 2015, compared with $45.1 billion at September 30, 2015, and $43.5 billion at December 31, 2014. Including fourth quarter distributions, the Company returned 72 percent of earnings to shareholders for the full year.

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

Page 17


CAPITAL POSITION													Table 12
($ in millions)	Dec 31 2015			Sep 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2014


Total U.S. Bancorp shareholders’ equity		$46,131			$45,075			$44,537			$44,277			$43,479

Standardized Approach

Basel III transitional standardized approach
Common equity tier 1 capital		$32,612			$32,124			$31,674			$31,308			$30,856
Tier 1 capital		38,431			37,197			36,748			36,382			36,020
Total risk-based capital		45,313			44,015			43,526			43,558			43,208

Common equity tier 1 capital ratio		9.6	%		9.6	%		9.5	%		9.6	%		9.7	%
Tier 1 capital ratio		11.3			11.1			11.0			11.1			11.3
Total risk-based capital ratio		13.3			13.1			13.1			13.3			13.6
Leverage ratio		9.5			9.3			9.2			9.3			9.3

Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach		9.1			9.2			9.2			9.2			9.0

Advanced Approaches

Common equity tier 1 capital to risk-weighted assets for the Basel III transitional advanced approaches		12.5			13.0			12.9			12.3			12.4

Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches		11.9			12.4			12.4			11.8			11.8

Tangible common equity to tangible assets		7.6			7.7			7.5			7.6			7.5
Tangible common equity to risk-weighted assets		9.2			9.3			9.2			9.3			9.3

Beginning January 1, 2014, the regulatory capital requirements effective for the Company follow Basel III, subject to certain transition provisions from Basel I over the following four years to full implementation by January 1, 2018. Basel III includes two comprehensive methodologies for calculating risk-weighted assets: a general standardized approach and more risk-sensitive advanced approaches, with the Company’s capital adequacy being evaluated against the methodology that is most restrictive.

All regulatory ratios continue to be in excess of “well-capitalized” requirements. The common equity tier 1 capital to risk-weighted assets ratio estimated for the Basel III standardized approach as if fully implemented was 9.1 percent at December 31, 2015, compared with 9.2 percent at September 30, 2015, and 9.0 percent at December 31, 2014. The common equity tier 1 capital to risk-weighted assets ratio estimated for the Basel III advanced approaches as if fully implemented was 11.9 percent at December 31, 2015, compared with 12.4 percent at September 30, 2015, and 11.8 percent at December 31, 2014.

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

Page 18

On Friday, January 15, 2016, at 8:00 a.m. CST, Richard K. Davis, chairman, president and chief executive officer, and Kathy Rogers, vice chair and chief financial officer, will host a conference call to review the financial results. The conference call will be available online or by telephone. To access the webcast and presentation, go to www.usbank.com and click on “About U.S. Bank.” The “Webcasts & Presentations” link can be found under the Investor/Shareholder information heading, which is at the left side near the bottom of the page. To access the conference call from locations within the United States and Canada, please dial 866-316-1409. Participants calling from outside the United States and Canada, please dial 706-634-9086. The conference ID number for all participants is 76889596. For those unable to participate during the live call, a recording will be available at approximately 11:00 a.m. CST on Friday, January 15 and be accessible through Friday, January 22 at 11:00 p.m. CST. To access the recorded message within the United States and Canada, dial 855-859-2056. If calling from outside the United States and Canada, please dial 404-537-3406 to access the recording. The conference ID is 76889596.

Minneapolis-based U.S. Bancorp (“USB”), with $422 billion in assets as of December 31, 2015, is the parent company of U.S. Bank National Association, the fifth largest commercial bank in the United States. The Company operates 3,133 banking offices in 25 states and 4,936 ATMs and provides a comprehensive line of banking, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

Page 19

Forward-Looking Statements

The following information appears in accordance with 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, anticipated future revenue and expenses and the future plans and prospects of U.S. Bancorp. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. A reversal or slowing of the current economic recovery or another severe contraction could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities. Global financial markets could experience a recurrence of significant turbulence, which could reduce the availability of funding to certain financial institutions and lead to a tightening of credit, a reduction of business activity, and increased market volatility. Stress in the commercial real estate markets, as well as a downturn in the residential real estate markets could cause credit losses and deterioration in asset values. In addition, U.S. Bancorp’s business and financial performance is likely to be negatively impacted by recently enacted and future legislation and regulation. U.S. Bancorp’s results could also be adversely affected by deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in its investment securities portfolio; legal and regulatory developments; litigation; increased competition from both banks and non-banks; changes in customer behavior and preferences; breaches in data security; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputational risk.

For discussion of these and other risks that may cause actual results to differ from expectations, refer to U.S. Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2014, on file with the Securities and Exchange Commission, including the sections entitled “Risk Factors” and “Corporate Risk Profile” contained in Exhibit 13, and all subsequent filings with the Securities and Exchange Commission under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934. However, factors other than these also could adversely affect U.S. Bancorp’s results, and the reader should not consider these factors to be a complete set of all potential risks or uncertainties. Forward-looking statements speak only as of the date hereof, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.

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U.S. Bancorp Reports Fourth Quarter 2015 Results

January 15, 2016

Page 20

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 estimated for the Basel III fully implemented standardized approach, and

●

Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches.

These measures are viewed by management as useful additional methods of reflecting the level of capital available to withstand unexpected market or economic conditions. Additionally, presentation of these measures allows investors, analysts and banking regulators to assess the Company’s capital position relative to other financial services companies. These measures differ from currently effective capital ratios defined by banking regulations principally in that the numerator includes unrealized gains and losses related to available-for-sale securities and excludes preferred securities, including preferred stock, the nature and extent of which varies among different financial services companies. These measures are not defined in generally accepted accounting principles (“GAAP”), or are not currently effective or defined in federal banking regulations. As a result, these measures disclosed by the Company may be considered non-GAAP financial measures.

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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U.S. Bancorp

Consolidated Statement of Income


(Dollars and Shares in Millions, Except Per Share Data)	Three Months Ended December 31,					Year Ended December 31,
(Unaudited)		2015		2014			2015		2014
Interest Income
Loans		$2,583		$2,541			$10,059		$10,113
Loans held for sale		40		41			206		128
Investment securities		499		488			2,001		1,866
Other interest income		34		32			136		121
Total interest income		3,156		3,102			12,402		12,228
Interest Expense
Deposits		113		117			457		465
Short-term borrowings		56		59			245		263
Long-term debt		168		182			699		725
Total interest expense		337		358			1,401		1,453
Net interest income		2,819		2,744			11,001		10,775
Provision for credit losses		305		288			1,132		1,229
Net interest income after provision for credit losses		2,514		2,456			9,869		9,546
Noninterest Income
Credit and debit card revenue		294		272			1,070		1,021
Corporate payment products revenue		170		174			708		724
Merchant processing services		393		384			1,547		1,511
ATM processing services		79		80			318		321
Trust and investment management fees		336		322			1,321		1,252
Deposit service charges		182		180			702		693
Treasury management fees		139		136			561		545
Commercial products revenue		222		219			867		854
Mortgage banking revenue		211		235			906		1,009
Investment products fees		44		49			185		191
Securities gains (losses), net		1		1			—		3
Other		269		318			907		1,040
Total noninterest income		2,340		2,370			9,092		9,164
Noninterest Expense
Compensation		1,212		1,151			4,812		4,523
Employee benefits		272		245			1,167		1,041
Net occupancy and equipment		246		248			991		987
Professional services		125		132			423		414
Marketing and business development		96		129			361		382
Technology and communications		230		219			887		863
Postage, printing and supplies		74		86			297		328
Other intangibles		46		51			174		199
Other		508		543			1,819		1,978
Total noninterest expense		2,809		2,804			10,931		10,715
Income before income taxes		2,045		2,022			8,030		7,995
Applicable income taxes		556		521			2,097		2,087
Net income		1,489		1,501			5,933		5,908
Net (income) loss attributable to noncontrolling interests		(13	)	(13	)		(54	)	(57	)
Net income attributable to U.S. Bancorp		$1,476		$1,488			$5,879		$5,851
Net income applicable to U.S. Bancorp common shareholders		$1,404		$1,420			$5,608		$5,583
Earnings per common share		$.80		$.79			$3.18		$3.10
Diluted earnings per common share		$.80		$.79			$3.16		$3.08
Dividends declared per common share		$.255		$.245			$1.010		$.965
Average common shares outstanding		1,747		1,787			1,764		1,803
Average diluted common shares outstanding		1,754		1,796			1,772		1,813

Page 21

U.S. Bancorp

Consolidated Ending Balance Sheet


(Dollars in Millions)	December 31, 2015			December 31, 2014
Assets
Cash and due from banks		$11,147			$10,654
Investment securities
Held-to-maturity		43,590			44,974
Available-for-sale		61,997			56,069
Loans held for sale		3,184			4,792
Loans
Commercial		88,402			80,377
Commercial real estate		42,137			42,795
Residential mortgages		53,496			51,619
Credit card		21,012			18,515
Other retail		51,206			49,264

Total loans, excluding covered loans		256,253			242,570
Covered loans		4,596			5,281

Total loans		260,849			247,851
Less allowance for loan losses		(3,863	)		(4,039	)

Net loans		256,986			243,812
Premises and equipment		2,513			2,618
Goodwill		9,361			9,389
Other intangible assets		3,350			3,162
Other assets		29,725			27,059

Total assets		$421,853			$402,529

Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing		$83,766			$77,323
Interest-bearing		216,634			205,410

Total deposits		300,400			282,733
Short-term borrowings		27,877			29,893
Long-term debt		32,078			32,260
Other liabilities		14,681			13,475

Total liabilities		375,036			358,361
Shareholders’ equity
Preferred stock		5,501			4,756
Common stock		21			21
Capital surplus		8,376			8,313
Retained earnings		46,377			42,530
Less treasury stock		(13,125	)		(11,245	)
Accumulated other comprehensive income (loss)		(1,019	)		(896	)

Total U.S. Bancorp shareholders’ equity		46,131			43,479
Noncontrolling interests		686			689

Total equity		46,817			44,168

Total liabilities and equity		$421,853			$402,529

Page 22

U.S. Bancorp

Non-GAAP Financial Measures


(Dollars in Millions, Unaudited)	December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014
Total equity		$46,817			$45,767			$45,231			$44,965			$44,168
Preferred stock		(5,501	)		(4,756	)		(4,756	)		(4,756	)		(4,756	)
Noncontrolling interests		(686	)		(692	)		(694	)		(688	)		(689	)
Goodwill (net of deferred tax liability) (1)		(8,295	)		(8,324	)		(8,350	)		(8,360	)		(8,403	)
Intangible assets, other than mortgage servicing rights		(838	)		(779	)		(744	)		(783	)		(824	)

Tangible common equity (a)		31,497			31,216			30,687			30,378			29,496

Tangible common equity (as calculated above)		31,497			31,216			30,687			30,378			29,496
Adjustments (2)		67			118			125			158			172

Common equity tier 1 capital estimated for the Basel III fully implemented standardized and advanced approaches (b)		31,564			31,334			30,812			30,536			29,668

Total assets		421,853			415,943			419,075			410,233			402,529
Goodwill (net of deferred tax liability) (1)		(8,295	)		(8,324	)		(8,350	)		(8,360	)		(8,403	)
Intangible assets, other than mortgage servicing rights		(838	)		(779	)		(744	)		(783	)		(824	)

Tangible assets (c)		412,720			406,840			409,981			401,090			393,302

Risk-weighted assets, determined in accordance with prescribed transitional standardized approach regulatory requirements (d)		341,360	*		336,227			333,177			327,709			317,398
Adjustments (3)		3,892	*		3,532			3,532			3,153			11,110

Risk-weighted assets estimated for the Basel III fully implemented standardized approach (e)		345,252	*		339,759			336,709			330,862			328,508

Risk-weighted assets, determined in accordance with prescribed transitional advanced approaches regulatory requirements		261,668	*		248,048			245,038			254,892			248,596
Adjustments (4)		4,099	*		3,723			3,721			3,321			3,270

Risk-weighted assets estimated for the Basel III fully implemented advanced approaches (f)		265,767	*		251,771			248,759			258,213			251,866

Ratios *
Tangible common equity to tangible assets (a)/(c)		7.6	%		7.7	%		7.5	%		7.6	%		7.5	%
Tangible common equity to risk-weighted assets (a)/(d)		9.2			9.3			9.2			9.3			9.3
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach (b)/(e)		9.1			9.2			9.2			9.2			9.0
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches (b)/(f)		11.9			12.4			12.4			11.8			11.8

* 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 net losses on cash flow hedges included in accumulated other comprehensive income (loss) and other adjustments.

(3) Includes higher risk-weighting for unfunded loan commitments, investment securities, residential mortgages, mortgage servicing rights and other adjustments.

(4) Primarily reflects higher risk-weighting for mortgage servicing rights.

Page 23

Supplemental Business Line Schedules

4Q 2015

LOGO

U.S. Bancorp Fourth Quarter 2015 Business Line Results

January 15, 2016

Page 2


LINE OF BUSINESS FINANCIAL PERFORMANCE (a)
($ in millions)
	Net Income Attributable to U.S. Bancorp						Percent Change						Net Income Attributable to U.S. Bancorp							4Q 2015

Business Line	4Q 2015		3Q 2015		4Q 2014		4Q15 vs 3Q15			4Q15 vs 4Q14			Full Year 2015		Full Year 2014		Percent Change			Earnings Composition
Wholesale Banking and Commercial Real Estate	$	209	$	213	$	275		(1.9	)		(24.0	)	$	884	$	1,092		(19.0	)		14	%
Consumer and Small Business Banking		351		317		368		10.7			(4.6	)		1,354		1,483		(8.7	)		24
Wealth Management and Securities Services		71		64		64		10.9			10.9			257		251		2.4			5
Payment Services		326		320		304		1.9			7.2			1,160		1,138		1.9			22
Treasury and Corporate Support		519		575		477		(9.7	)		8.8			2,224		1,887		17.9			35

Consolidated Company	$	1,476	$	1,489	$	1,488		(.9	)		(.8	)	$	5,879	$	5,851		.5			100	%


(a) preliminary data

Lines of Business

The Company’s major lines of business are Wholesale Banking and Commercial Real Estate, Consumer and Small Business Banking, Wealth Management and Securities Services, 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. Noninterest expenses incurred by centrally managed operations or business lines that directly support another business line’s operations are charged to the applicable business line based on its utilization of those services, primarily measured by the volume of customer activities, number of employees or other relevant factors. These allocated expenses are reported as net shared services expense within noninterest 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 2015, certain organization and methodology changes were made and, accordingly, prior period results were restated and presented on a comparable basis.

U.S. Bancorp Fourth Quarter 2015 Business Line Results

January 15, 2016

Page 3


WHOLESALE BANKING AND COMMERCIAL REAL ESTATE (a)
(Taxable-equivalent basis, $ in millions)							Percent Change

	4Q 2015		3Q 2015		4Q 2014		4Q15 vs 3Q15			4Q15 vs 4Q14			Full Year 2015		Full Year 2014		Percent Change

Condensed Income Statement
Net interest income		$514		$516		$521		(.4	)		(1.3	)		$2,034		$2,030		.2
Noninterest income		223		223		234		—			(4.7	)		890		965		(7.8	)
Securities gains (losses), net		—		—		—		—			—			—		—		—

Total net revenue		737		739		755		(.3	)		(2.4	)		2,924		2,995		(2.4	)
Noninterest expense		324		325		305		(.3	)		6.2			1,295		1,224		5.8
Other intangibles		1		1		1		—			—			4		4		—

Total noninterest expense		325		326		306		(.3	)		6.2			1,299		1,228		5.8

Income before provision and taxes		412		413		449		(.2	)		(8.2	)		1,625		1,767		(8.0	)
Provision for credit losses		83		78		17		6.4			nm			235		51		nm

Income before income taxes		329		335		432		(1.8	)		(23.8	)		1,390		1,716		(19.0	)
Income taxes and taxable-equivalent adjustment		120		122		157		(1.6	)		(23.6	)		506		624		(18.9	)

Net income		209		213		275		(1.9	)		(24.0	)		884		1,092		(19.0	)
Net (income) loss attributable to noncontrolling interests		—		—		—		—			—			—		—		—

Net income attributable to U.S. Bancorp		$209		$213		$275		(1.9	)		(24.0	)		$884		$1,092		(19.0	)

Average Balance Sheet Data
Loans		$86,034		$84,322		$79,619		2.0			8.1			$83,794		$76,522		9.5
Other earning assets		1,997		2,258		1,958		(11.6	)		2.0			2,245		1,887		19.0
Goodwill		1,647		1,647		1,648		—			(.1	)		1,647		1,627		1.2
Other intangible assets		19		20		22		(5.0	)		(13.6	)		20		21		(4.8	)
Assets		94,108		92,503		87,308		1.7			7.8			92,205		83,787		10.0
Noninterest-bearing deposits		37,775		36,589		34,053		3.2			10.9			36,018		32,302		11.5
Interest-bearing deposits		51,510		50,150		47,687		2.7			8.0			50,508		47,018		7.4

Total deposits		89,285		86,739		81,740		2.9			9.2			86,526		79,320		9.1
Total U.S. Bancorp shareholders’ equity		8,393		8,440		7,836		(.6	)		7.1			8,251		7,568		9.0

(a) preliminary data

Wholesale Banking and Commercial Real Estate offers lending, equipment finance and small-ticket leasing, depository services, treasury management, capital markets, international trade services and other financial services to middle market, large corporate, commercial real estate, financial institution, non-profit and public sector clients. Wholesale Banking and Commercial Real Estate contributed $209 million of the Company’s net income in the fourth quarter of 2015, compared with $275 million in the fourth quarter of 2014. Wholesale Banking and Commercial Real Estate’s net income decreased $66 million (24.0 percent) from the same quarter of 2014 due to increases in the provision for credit losses and total noninterest expense, along with a decrease in total net revenue. Total net revenue decreased $18 million (2.4 percent), due to a $7 million (1.3 percent) decrease in net interest income and an $11 million (4.7 percent) decrease in

U.S. Bancorp Fourth Quarter 2015 Business Line Results

January 15, 2016

Page 4

total noninterest income. Net interest income decreased year-over-year, primarily due to lower rates and fees on loans, partially offset by higher average total loans. The decrease in total noninterest income was driven by higher loan-related charges, partially offset by higher wholesale transaction activity. Total noninterest expense was $19 million (6.2 percent) higher compared with a year ago, primarily due to an increase in variable costs allocated to manage the business and increased compensation and employee benefits expense, mainly due to higher variable compensation, merit and pension costs. The provision for credit losses increased $66 million due to an unfavorable change in the reserve allocation driven by a decline in energy prices and an increase in net charge-offs.


CONSUMER AND SMALL BUSINESS BANKING (a)
(Taxable-equivalent basis, $ in millions)							Percent Change

	4Q 2015		3Q 2015		4Q 2014		4Q15 vs 3Q15			4Q15 vs 4Q14			Full Year 2015		Full Year 2014		Percent Change

Condensed Income Statement
Net interest income		$1,170		$1,161		$1,167		.8			.3			$4,617		$4,717		(2.1	)
Noninterest income		610		634		635		(3.8	)		(3.9	)		2,497		2,601		(4.0	)
Securities gains (losses), net		—		—		—		—			—			—		—		—

Total net revenue		1,780		1,795		1,802		(.8	)		(1.2	)		7,114		7,318		(2.8	)
Noninterest expense		1,187		1,253		1,150		(5.3	)		3.2			4,818		4,552		5.8
Other intangibles		10		10		12		—			(16.7	)		40		40		—

Total noninterest expense		1,197		1,263		1,162		(5.2	)		3.0			4,858		4,592		5.8

Income before provision and taxes		583		532		640		9.6			(8.9	)		2,256		2,726		(17.2	)
Provision for credit losses		31		33		61		(6.1	)		(49.2	)		127		393		(67.7	)

Income before income taxes		552		499		579		10.6			(4.7	)		2,129		2,333		(8.7	)
Income taxes and taxable-equivalent adjustment		201		182		211		10.4			(4.7	)		775		850		(8.8	)

Net income		351		317		368		10.7			(4.6	)		1,354		1,483		(8.7	)
Net (income) loss attributable to noncontrolling interests		—		—		—		—			—			—		—		—

Net income attributable to U.S. Bancorp		$351		$317		$368		10.7			(4.6	)		$1,354		$1,483		(8.7	)

Average Balance Sheet Data
Loans		$133,676		$130,600		$131,404		2.4			1.7			$130,962		$130,300		.5
Other earning assets		4,661		7,625		4,895		(38.9	)		(4.8	)		6,519		3,812		71.0
Goodwill		3,681		3,682		3,681		—			—			3,682		3,603		2.2
Other intangible assets		2,654		2,661		2,605		(.3	)		1.9			2,594		2,674		(3.0	)
Assets		148,794		148,517		146,598		.2			1.5			147,832		144,137		2.6
Noninterest-bearing deposits		27,034		26,833		25,386		.7			6.5			26,137		23,743		10.1
Interest-bearing deposits		110,598		109,699		106,518		.8			3.8			109,599		104,147		5.2

Total deposits		137,632		136,532		131,904		.8			4.3			135,736		127,890		6.1
Total U.S. Bancorp shareholders’ equity		10,795		10,690		11,494		1.0			(6.1	)		10,953		11,484		(4.6	)

(a) preliminary data

U.S. Bancorp Fourth Quarter 2015 Business Line Results

January 15, 2016

Page 5

Consumer and Small Business Banking delivers products and services through banking offices, telephone servicing and sales, on-line services, direct mail, ATM processing and mobile devices, such as mobile phones and tablet computers. It encompasses community banking, metropolitan banking and indirect lending, as well as mortgage banking. Consumer and Small Business Banking contributed $351 million of the Company’s net income in the fourth quarter of 2015, compared with $368 million in the fourth quarter of 2014. Consumer and Small Business Banking’s net income decreased $17 million (4.6 percent) from the same quarter of 2014 due to a decrease in total net revenue and an increase in total noninterest expense, partially offset by a decrease in the provision for credit losses. Total net revenue decreased $22 million (1.2 percent). Net interest income was $3 million (0.3 percent) higher due to higher average loan and deposit balances. Noninterest income was $25 million (3.9 percent) lower, primarily due to lower mortgage banking revenue as a result of an unfavorable change in the valuation of MSRs, net of hedging activities. Total noninterest expense in the fourth quarter of 2015 increased $35 million (3.0 percent) over the same quarter of the prior year, primarily due higher mortgage servicing-related expenses, along with higher compensation and employee benefits expense, reflecting higher variable compensation, merit and pension costs. The provision for credit losses decreased $30 million (49.2 percent) due to lower net charge-offs, along with a favorable change in the reserve allocation driven by improvements in the mortgage portfolio.

U.S. Bancorp Fourth Quarter 2015 Business Line Results

January 15, 2016

Page 6


WEALTH MANAGEMENT AND SECURITIES SERVICES (a)
(Taxable-equivalent basis, $ in millions)							Percent Change

	4Q 2015		3Q 2015		4Q 2014		4Q15 vs 3Q15			4Q15 vs 4Q14			Full Year 2015		Full Year 2014		Percent Change

Condensed Income Statement
Net interest income		$110		$98		$95		12.2			15.8			$386		$383		.8
Noninterest income		372		366		357		1.6			4.2			1,466		1,396		5.0
Securities gains (losses), net		—		—		—		—			—			—		—		—

Total net revenue		482		464		452		3.9			6.6			1,852		1,779		4.1
Noninterest expense		364		355		342		2.5			6.4			1,420		1,343		5.7
Other intangibles		7		7		8		—			(12.5	)		28		33		(15.2	)

Total noninterest expense		371		362		350		2.5			6.0			1,448		1,376		5.2

Income before provision and taxes		111		102		102		8.8			8.8			404		403		.2
Provision for credit losses		—		1		1		nm			nm			—		9		nm

Income before income taxes		111		101		101		9.9			9.9			404		394		2.5
Income taxes and taxable-equivalent adjustment		40		37		37		8.1			8.1			147		143		2.8

Net income		71		64		64		10.9			10.9			257		251		2.4
Net (income) loss attributable to noncontrolling interests		—		—		—		—			—			—		—		—

Net income attributable to U.S. Bancorp		$71		$64		$64		10.9			10.9			$257		$251		2.4

Average Balance Sheet Data
Loans		$6,639		$6,215		$5,722		6.8			16.0			$6,226		$5,420		14.9
Other earning assets		172		192		210		(10.4	)		(18.1	)		191		182		4.9
Goodwill		1,567		1,567		1,570		—			(.2	)		1,567		1,568		(.1	)
Other intangible assets		116		123		146		(5.7	)		(20.5	)		126		159		(20.8	)
Assets		9,470		9,053		8,739		4.6			8.4			9,178		8,500		8.0
Noninterest-bearing deposits		16,297		14,997		15,246		8.7			6.9			14,469		15,157		(4.5	)
Interest-bearing deposits		46,339		46,677		41,520		(.7	)		11.6			45,272		39,139		15.7

Total deposits		62,636		61,674		56,766		1.6			10.3			59,741		54,296		10.0
Total U.S. Bancorp shareholders’ equity		2,325		2,304		2,286		.9			1.7			2,308		2,284		1.1

(a) preliminary data

Wealth Management and Securities Services provides private banking, financial advisory services, investment management, retail brokerage services, insurance, trust, custody and fund servicing through five businesses: Wealth Management, Corporate Trust Services, U.S. Bancorp Asset Management, Institutional Trust & Custody and Fund Services. Wealth Management and Securities Services contributed $71 million of the Company’s net income in the fourth quarter of 2015, compared with $64 million in the fourth quarter of 2014. The business line’s contribution was $7 million (10.9 percent) higher than the same quarter of 2014, primarily reflecting an increase in total net revenue, partially offset by an increase in total noninterest expense. Total net revenue increased $30 million (6.6 percent) year-over-year, driven by a $15 million (4.2 percent) increase in total noninterest income, reflecting the impact of account growth and improved market

U.S. Bancorp Fourth Quarter 2015 Business Line Results

January 15, 2016

Page 7

conditions and lower fee waivers, along with an increase in net interest income of $15 million (15.8 percent), principally due to higher average deposit balances. Total noninterest expense increased $21 million (6.0 percent), primarily as a result of higher net shared services expense and increased compensation and employee benefits expense due to merit and pension costs. The provision for credit losses was relatively flat year-over-year.


PAYMENT SERVICES (a)
(Taxable-equivalent basis, $ in millions)										Percent Change

	4Q 2015			3Q 2015			4Q 2014			4Q15 vs 3Q15			4Q15 vs 4Q14			Full Year 2015			Full Year 2014			Percent Change

Condensed Income Statement
Net interest income		$520			$484			$471			7.4			10.4			$1,930			$1,749			10.3
Noninterest income		870			874			843			(.5	)		3.2			3,371			3,292			2.4
Securities gains (losses), net		—			—			—			—			—			—			—			—

Total net revenue		1,390			1,358			1,314			2.4			5.8			5,301			5,041			5.2
Noninterest expense		637			639			601			(.3	)		6.0			2,540			2,310			10.0
Other intangibles		28			24			30			16.7			(6.7	)		102			122			(16.4	)

Total noninterest expense		665			663			631			.3			5.4			2,642			2,432			8.6

Income before provision and taxes		725			695			683			4.3			6.1			2,659			2,609			1.9
Provision for credit losses		202			180			193			12.2			4.7			787			766			2.7

Income before income taxes		523			515			490			1.6			6.7			1,872			1,843			1.6
Income taxes and taxable-equivalent adjustment		190			187			178			1.6			6.7			681			670			1.6
Net income		333			328			312			1.5			6.7			1,191			1,173			1.5
Net (income) loss attributable to noncontrolling interests		(7	)		(8	)		(8	)		12.5			12.5			(31	)		(35	)		11.4

Net income attributable to U.S. Bancorp		$326			$320			$304			1.9			7.2			$1,160			$1,138			1.9

Average Balance Sheet Data
Loans		$26,719			$25,769			$25,597			3.7			4.4			$25,712			$24,854			3.5
Other earning assets		1,039			402			309			nm			nm			526			388			35.6
Goodwill		2,469			2,475			2,499			(.2	)		(1.2	)		2,474			2,514			(1.6	)
Other intangible assets		436			381			454			14.4			(4.0	)		411			484			(15.1	)
Assets		33,082			31,584			31,681			4.7			4.4			31,796			31,097			2.2
Noninterest-bearing deposits		891			851			846			4.7			5.3			879			740			18.8
Interest-bearing deposits		708			710			628			(.3	)		12.7			696			633			10.0

Total deposits		1,599			1,561			1,474			2.4			8.5			1,575			1,373			14.7
Total U.S. Bancorp shareholders’ equity		6,044			5,829			5,764			3.7			4.9			5,868			5,697			3.0

(a) preliminary data

Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate, government and purchasing card services, consumer lines of credit and merchant processing. Payment Services contributed $326 million of the Company’s net income in the fourth quarter of 2015,

U.S. Bancorp Fourth Quarter 2015 Business Line Results

January 15, 2016

Page 8

compared with $304 million in the fourth quarter of 2014. The $22 million (7.2 percent) increase in the business line’s contribution from the prior year was due to an increase in total net revenue, partially offset by an increase in noninterest expense and an increase in the provision for credit losses. Total net revenue increased $76 million (5.8 percent) year-over-year. Net interest income increased $49 million (10.4 percent), primarily due to improved loan rates and higher average loan balances and fees. Total noninterest income was $27 million (3.2 percent) higher year-over-year due to an increase in credit and debit card revenue on higher transaction volumes, along with higher merchant processing services, driven by increased transaction volumes and product fees and equipment sales to merchants related to new chip card technology requirements, partially offset by the impact of foreign currency rate changes. Total noninterest expense increased $34 million (5.4 percent) over the fourth quarter of 2014, driven by higher net shared services, compensation and marketing expenses. The provision for credit losses increased $9 million (4.7 percent) due to higher net charge-offs.

U.S. Bancorp Fourth Quarter 2015 Business Line Results

January 15, 2016

Page 9


TREASURY AND CORPORATE SUPPORT (a)
(Taxable-equivalent basis, $ in millions)										Percent Change

	4Q 2015			3Q 2015			4Q 2014			4Q15 vs 3Q15			4Q15 vs 4Q14			Full Year 2015			Full Year 2014			Percent Change

Condensed Income Statement
Net interest income		$557			$562			$545			(.9	)		2.2			$2,247			$2,118			6.1
Noninterest income		264			230			300			14.8			(12.0	)		868			907			(4.3	)
Securities gains (losses), net		1			(1	)		1			nm			—			—			3			nm

Total net revenue		822			791			846			3.9			(2.8	)		3,115			3,028			2.9
Noninterest expense		251			161			355			55.9			(29.3	)		684			1,087			(37.1	)
Other intangibles		—			—			—			—			—			—			—			—

Total noninterest expense		251			161			355			55.9			(29.3	)		684			1,087			(37.1	)

Income before provision and taxes		571			630			491			(9.4	)		16.3			2,431			1,941			25.2
Provision for credit losses		(11	)		(10	)		16			(10.0	)		nm			(17	)		10			nm

Income before income taxes		582			640			475			(9.1	)		22.5			2,448			1,931			26.8
Income taxes and taxable-equivalent adjustment		57			59			(7	)		(3.4	)		nm			201			22			nm

Net income		525			581			482			(9.6	)		8.9			2,247			1,909			17.7
Net (income) loss attributable to noncontrolling interests		(6	)		(6	)		(5	)		—			(20.0	)		(23	)		(22	)		(4.5	)

Net income attributable to U.S. Bancorp		$519			$575			$477			(9.7	)		8.8			$2,224			$1,887			17.9

Average Balance Sheet Data
Loans		$3,624			$3,630			$4,079			(.2	)		(11.2	)		$3,765			$4,596			(18.1	)
Other earning assets		108,530			108,252			101,168			.3			7.3			107,505			93,033			15.6
Goodwill		—			—			—			—			—			—			—			—
Other intangible assets		—			—			—			—			—			—			—			—
Assets		129,668			128,782			120,390			.7			7.7			127,854			112,483			13.7
Noninterest-bearing deposits		1,897			1,670			1,427			13.6			32.9			1,700			1,513			12.4
Interest-bearing deposits		1,456			1,516			2,168			(4.0	)		(32.8	)		1,873			2,248			(16.7	)

Total deposits		3,353			3,186			3,595			5.2			(6.7	)		3,573			3,761			(5.0	)
Total U.S. Bancorp shareholders’ equity		18,216			17,604			16,463			3.5			10.6			17,433			15,804			10.3

(a) preliminary data

Treasury and Corporate Support includes the Company’s investment portfolios, most covered commercial and commercial real estate loans and related other real estate owned, funding, capital management, interest rate risk management, income taxes not allocated to business lines, 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 recorded net income of $519 million in the fourth quarter of 2015, compared with $477 million in the fourth quarter of 2014. The increase in net income of $42 million (8.8 percent) over the prior year was due to decreases in total noninterest expense and the provision for credit losses, partially offset by a decrease in total net revenue. Net interest income increased $12 million (2.2 percent) over the fourth quarter of 2014, principally

U.S. Bancorp Fourth Quarter 2015 Business Line Results

January 15, 2016

Page 10

due to growth in the investment portfolio. Total noninterest income decreased $36 million (12.0 percent) from the fourth quarter of last year, mainly due to the 2014 Nuveen gain, partially offset by the HSA deposit sale. Total noninterest expense decreased $104 million (29.3 percent), principally due to the notable items in the fourth quarter of 2014, partially offset by higher compensation and employee benefits expense, reflecting higher pension costs, the impact of merit increases and staffing for risk and compliance activities. The provision for credit losses was $27 million lower year-over-year, primarily due to lower net charge-offs, along with a favorable change in the reserve allocation.