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 U.S. Bancorp Reports Fourth Quarter and Full Year 2016 Earnings
   Wednesday, January 18, 2017 6:45:01 AM ET

--Full year return on average assets of 1.36 percent and average common equity of 13.4 percent

--Returned 79 percent of full year earnings to shareholders

U.S. Bancorp (USB ) today reported net income of $1,478 million for the fourth quarter of 2016, or $0.82 per diluted common share, compared with $1,476 million, or $0.80 per diluted common share, in the fourth quarter of 2015.

Highlights for the full year of 2016 included:

-- Record diluted earnings per common share of $3.24, which was 2.5 percent higher than 2015

-- Industry-leading return on average assets of 1.36 percent and average common equity of 13.4 percent



-- Returned 79 percent of 2016 earnings to shareholders through dividends and share buybacks

Highlights for the fourth quarter of 2016 included:

-- Average total loans grew 1.1 percent on a linked quarter basis and 6.2 percent over the fourth quarter of 2015

-- Average total deposits grew 3.3 percent on a linked quarter basis and 11.8 percent over the fourth quarter of 2015

-- Net interest income (taxable-equivalent basis) grew 2.1 percent on a linked quarter basis and 4.6 percent year-over-year -- Average earning assets grew 2.1 percent on a linked quarter basis and 7.7 percent year-over-year

-- Net interest margin of 2.98 percent for the fourth quarter of 2016 was unchanged from the third quarter of 2016, and down 8 basis points from the fourth quarter of 2015, primarily due to changes in the loan and investment portfolio mix and higher average cash balances

-- Noninterest income increased 3.9 percent on a year-over-year basis -- Payment services revenue increased 4.0 percent (5.6 percent excluding the impact of foreign currency rate changes)

-- Trust and investment management fees increased 9.5 percent

-- Mortgage banking revenue increased 13.7 percent

-- Credit quality was stable relative to the third quarter and year-over-year

-- Strong capital position. At December 31, 2016, the estimated common equity tier 1 capital to risk-weighted assets ratio was 9.1 percent using the Basel III fully implemented standardized approach and was 11.7 percent using the Basel III fully implemented advanced approaches method.

                                                                   
----------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
 EARNINGS SUMMARY                                                                                                                                                                                                                                                            Table 1  
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
 ($ in millions, except per-share data)                                                                                                  Percent                Percent                                                
                                                                                                                                                                                                 Change                                    Change
                                                            4Q                                        3Q                                        4Q                                              4Q16 vs                                   4Q16 vs                                 Full Year                                 Full Year                                   Percent
                                                          2016                   2016                   2015                              3Q16                   4Q15                   2016                   2015                 Change
                                          -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                      
 Net income attributable to U.S. Bancorp                                     $1,478                                    $1,502                                    $1,476                            (1.6 )                                                           .1                                    $5,888                                    $5,879                                        .2
 Diluted earnings per common share                                             $.82                                      $.84                                      $.80                            (2.4 )                                                          2.5                                     $3.24                                     $3.16                                       2.5
                                                                                                                                                                                                                                                                                                                                                                                                      
 Return on average assets (%)                                                  1.32                                      1.36                                      1.41                                                                                                                                     1.36                                      1.44
 Return on average common equity (%)                                           13.1                                      13.5                                      13.7                                                                                                                                     13.4                                      14.0
 Net interest margin (%)                                                       2.98                                      2.98                                      3.06                                                                                                                                     3.01                                      3.05
 Efficiency ratio (%) (a)                                                      55.3                                      54.5                                      53.9                                                                                                                                     54.9                                      53.8
 Tangible efficiency ratio (%) (a)                                             54.5                                      53.7                                      53.0                                                                                                                                     54.0                                      53.0
                                                                                                                                                                                                                                                                                                                                                                                                      
 Dividends declared per common share                                          $.280                                     $.280                                     $.255                              --                                                            9.8                                    $1.070                                    $1.010                                       5.9
 Book value per common share (period end)                                    $24.63                                    $24.78                                    $23.28                             (.6 )                                                          5.8
                                                                                                                                                                                                                                                                                                                                                                                                      
 (a) See Non-GAAP Financial Measures reconciliation on page 21
 
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Net income attributable to U.S. Bancorp was $1,478 million for the fourth quarter of 2016, 0.1 percent higher than the $1,476 million for the fourth quarter of 2015, and 1.6 percent lower than the $1,502 million for the third quarter of 2016. Diluted earnings per common share of $0.82 in the fourth quarter of 2016 were $0.02 higher than the fourth quarter of 2015 and $0.02 lower than the third quarter of 2016. The increase in net income year-over-year was principally due to total net revenue growth, including an increase in net interest income of 4.6 percent on a taxable-equivalent basis (4.8 percent as reported on a GAAP basis), mainly a result of loan growth, and an increase in noninterest income of 3.9 percent, driven by higher payment services revenue, trust and investment management fees and mortgage banking revenue. This increase was partially offset by higher noninterest expense related to increased compensation expense due to hiring to support business growth and compliance programs as well as merit increases and higher variable compensation expense. The decrease in net income on a linked quarter basis was principally due to a seasonal increase in noninterest expense of 2.5 percent driven by investments in tax-advantaged projects and professional services expense, along with an increase in the provision for credit losses due to loan growth. These increases were partially offset by an increase in total net revenue of 0.9 percent, reflecting an increase in net interest income of 2.1 percent on a taxable-equivalent basis and as reported on a GAAP basis, partially offset by a decrease in noninterest income of 0.6 percent driven by lower mortgage banking revenue.

U.S. Bancorp Chairman and Chief Executive Officer Richard K. Davis said, "U.S. Bancorp delivered an outstanding performance in 2016 with record net income, EPS, and revenue. In a challenging year where the economic environment was often unpredictable, we delivered industry-leading returns, we made important investments in our long-term growth strategy, and we returned 79 percent of our earnings to shareholders through dividends and share buybacks.

"As importantly, the fundamental elements of our core businesses are solid and we are well positioned for growth as we enter 2017. With an intense focus on our customers and providing them with innovative products and services, we are optimistic we will continue to create outstanding value for our shareholders, customers, and communities.

"Our success in 2016 was a result of the tremendous efforts of our 70,000 employees working hard as One U.S. Bank to help our customers build financially secure futures - and they did it with ethics and integrity. For the second year, the Ethisphere Institute named U.S. Bank to its World’s Most Ethical Companies list. For the tenth year, the Ponemon Institute named U.S. Bank the Most Trusted Bank. For the sixth year, FORTUNE magazine named U.S. Bank the number one superregional bank. And for the first time, MONEY magazine named U.S. Bank the Best Big Bank. We are proud of these achievements because they are a reflection of our people and our culture. As usual, you can expect U.S. Bank to deliver consistent, predictable, and repeatable results."

 
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 INCOME STATEMENT HIGHLIGHTS                                                                                                                                                                                                                                                       Table 2  
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------- -----------------------------
 ($ in millions, except per-share data)                                                                                                                                                      Percent                     Percent                                                                   
                                                                                                                                                                                                                                                     Change                                         Change
                                                                                                        4Q                                               3Q                                               4Q                                        4Q16 vs                                        4Q16 vs                                         Full Year                                            Full Year                                        Percent
                                                                                                      2016                          2016                          2015                        3Q16                        4Q15                           2016                              2015                      Change
                                                                               ------------------------------------------------ ------------------------------------------------ ------------------------------------------------ ---------------------------------------------- ---------------------------------------------- ------------------------------------------------- ---------------------------------------------------- --------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 Net interest income                                                                                $2,955                                           $2,893                                           $2,819                                            2.1                                            4.8                                           $11,528                                              $11,001                                            4.8
 Taxable-equivalent adjustment                                                                          49         50         52                        (2.0 )                                         (5.8 )                                             203            213                        (4.7 )
                                                                                                    ------ -------------------- -------------------- ------ -------------------- -------------------- ------ --------------------                                                                                                                    ------- -------------------- -------------------- ---------- --------------------
 Net interest income (taxable-equivalent basis)                                                      3,004                                            2,943                                            2,871                                            2.1                                            4.6                                            11,731                                               11,214                                            4.6
 Noninterest income                                                                                  2,431      2,445      2,340                         (.6 )                                          3.9                                             9,577          9,092                         5.3
                                                                                                    ------ -------------------- -------------------- ------ -------------------- -------------------- ------ --------------------                                                                                                                    ------- -------------------- -------------------- ---------- --------------------
   Total net revenue                                                                                 5,435                                            5,388                                            5,211                                             .9                                            4.3                                            21,308                                               20,306                                            4.9
 Noninterest expense                                                                                 3,004      2,931      2,809                         2.5                                            6.9                                            11,676         10,931                         6.8
                                                                                                    ------ -------------------- -------------------- ------ -------------------- -------------------- ------ --------------------                                                                                                                    ------- -------------------- -------------------- ---------- --------------------
 Income before provision and income taxes                                                            2,431                                            2,457                                            2,402                                           (1.1 )                                          1.2                                             9,632                                                9,375                                            2.7
 Provision for credit losses                                                                           342        325        305                         5.2                                           12.1                                             1,324          1,132                        17.0
                                                                                                    ------ -------------------- -------------------- ------ -------------------- -------------------- ------ --------------------                                                                                                                    ------- -------------------- -------------------- ---------- --------------------
 Income before taxes                                                                                 2,089                                            2,132                                            2,097                                           (2.0 )                                          (.4 )                                           8,308                                                8,243                                             .8
                                                                                                       598        616        608                        (2.9 )                                         (1.6 )                                           2,364          2,310                         2.3
 Income taxes and taxable-equivalent adjustment
                                                                                                    ------ -------------------- -------------------- ------ -------------------- -------------------- ------ --------------------                                                                                                                    ------- -------------------- -------------------- ---------- --------------------
 Net income                                                                                          1,491                                            1,516                                            1,489                                           (1.6 )                                           .1                                             5,944                                                5,933                                             .2
                                                                                                       (13 )                         (14 )                         (13 )                                          7.1                                             --                                               (56 )                             (54 )                                         (3.7 )
 Net (income) loss attributable to noncontrolling interests
                                                                                                    ------ -------------------- -------------------- ------ -------------------- -------------------- ------ --------------------                                                                                                                    ------- -------------------- -------------------- ---------- --------------------
 Net income attributable to U.S. Bancorp                                                            $1,478     $1,502     $1,476                        (1.6 )                                           .1                                            $5,888         $5,879                          .2
                                                                                                    ------ -------------------- -------------------- ------ -------------------- -------------------- ------ --------------------                                                                                                                    ------- -------------------- -------------------- ---------- --------------------
                                                                                                    $1,391     $1,434     $1,404                        (3.0 )                                          (.9 )                                          $5,589         $5,608                         (.3 )
 Net income applicable to U.S. Bancorp common shareholders
                                                                                                    ------ -------------------- -------------------- ------ -------------------- -------------------- ------ --------------------                                                                                                                    ------- -------------------- -------------------- ---------- --------------------
 Diluted earnings per common share                                                                    $.82       $.84       $.80                        (2.4 )                                          2.5                                             $3.24          $3.16                         2.5
                                                                                                    ------ -------------------- -------------------- ------ -------------------- -------------------- ------ --------------------                                                                                                                    ------- -------------------- -------------------- ---------- --------------------
 
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 NET INTEREST INCOME                                                                                                                                                                                                                                                                          Table 3  
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------- ------------------------------------------------
 (Taxable-equivalent basis; $ in millions)                                                                                                                                                                                                                                  
                                                                                                                                                                                                                           Change                                           Change
                                                                        4Q                                                 3Q                                                 4Q                                          4Q16 vs                                          4Q16 vs                                          Full Year                                            Full Year
                                                                      2016                            2016                            2015                          3Q16                          4Q15                            2016                              2015                        Change
                                             -------------------------------------------------- -------------------------------------------------- -------------------------------------------------- ------------------------------------------------ ------------------------------------------------ -------------------------------------------------- ---------------------------------------------------- ----------------------------
 Components of net interest income
   Income on earning assets                                         $3,424                                             $3,371                                             $3,209                                              $53                                             $215                                            $13,375                                              $12,619                                             $756
   Expense on interest-bearing liabilities                             420          428          338         (8 )                          82        1,644          1,405        239  
                                                                  -------- -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------- -------------------- -------------------- ---------- -------------------- -------------------- ------ --------------------
 Net interest income                                                $3,004       $2,943       $2,871        $61       $133      $11,731        $11,214       $517  
                                                                  -------- -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------- -------------------- -------------------- ---------- -------------------- -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 Average yields and rates paid
   Earning assets yield                                               3.40 %                                             3.41 %                                             3.42 %                                           (.01 )%                                          (.02 )%                                            3.43 %                                               3.43 %                                            .00 %
   Rate paid on interest-bearing liabilities                           .57          .59          .50       (.02 )                         .07          .57            .52        .05  
                                                                  -------- -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------- -------------------- -------------------- ---------- -------------------- -------------------- ------ --------------------
 Gross interest margin                                                2.83 %                          2.82 %                          2.92 %                         .01 %                        (.09 )%                         2.86 %                            2.91 %                        (.05 )%
                                                                  -------- -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------- -------------------- -------------------- ---------- -------------------- -------------------- ------ --------------------
 Net interest margin                                                  2.98 %                          2.98 %                          3.06 %                          -- %                        (.08 )%                         3.01 %                            3.05 %                        (.04 )%
                                                                  -------- -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------- -------------------- -------------------- ---------- -------------------- -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 Average balances
   Investment securities (a)                                      $110,386                                           $108,109                                           $105,536                                           $2,277                                           $4,850                                           $107,922                                             $103,161                                           $4,761
   Loans                                                           272,671                                            269,637                                            256,692                                            3,034                                           15,979                                            267,811                                              250,459                                           17,352
   Earning assets                                                  401,971                                            393,783                                            373,091                                            8,188                                           28,880                                            389,877                                              367,445                                           22,432
   Interest-bearing liabilities                                    295,288                                            290,331                                            269,940                                            4,957                                           25,348                                            287,760                                              269,474                                           18,286
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 (a) Excludes unrealized gain (loss)
 
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Net Interest Income

Net interest income on a taxable-equivalent basis in the fourth quarter of 2016 was $3,004 million, an increase of $133 million (4.6 percent) over the fourth quarter of 2015. The increase was principally driven by loan growth partially offset by a lower net interest margin. Average earning assets were $28.9 billion (7.7 percent) higher than the fourth quarter of 2015, driven by increases of $16.0 billion (6.2 percent) in average total loans, $4.9 billion (4.6 percent) in average investment securities and higher average cash balances. Net interest income on a taxable-equivalent basis increased $61 million (2.1 percent) linked quarter, primarily due to growth in average earning assets. Average earning assets were $8.2 billion (2.1 percent) higher on a linked quarter basis, reflecting growth in average total loans of $3.0 billion (1.1 percent), average investment securities of $2.3 billion (2.1 percent) and higher average cash balances.

The net interest margin in the fourth quarter of 2016 was 2.98 percent, compared with 3.06 percent in the fourth quarter of 2015, and 2.98 percent in the third quarter of 2016. The decrease in the net interest margin of 8 basis points on a year-over-year basis was principally due to lower yields on securities purchases, lower reinvestment rates on maturing securities and maintaining higher cash balances. On a linked quarter basis, net interest margin was impacted by higher average cash balances as well as lower average rates on new securities purchases and lower reinvestment rates on maturing securities, offset by the favorable impact of interest rates on loans.

Investment Securities

Average investment securities in the fourth quarter of 2016 were $4.9 billion (4.6 percent) higher year-over-year and $2.3 billion (2.1 percent) higher than the prior quarter. These increases were primarily due to purchases of U.S. Treasury and U.S. government agency-backed securities, net of prepayments and maturities, to support liquidity.

 
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 AVERAGE LOANS                                                                                                                                                                                                                                             Table 4  
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- ------------------------------
 ($ in millions)                                                                                                               Percent                      Percent                                                
                                                                                                                                                                                       Change                                          Change
                                                        4Q                                        3Q                                        4Q                                        4Q16 vs                                         4Q16 vs                                 Full Year                                 Full Year                                         Percent
                                                      2016                   2016                   2015                        3Q16                         4Q15                   2016                   2015                       Change
                                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------- ----------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------
                                                                                                                                                                                                                                                                                                                                                                                       
 Commercial                                                             $88,448                                   $87,067                                   $81,592                       1.6                                             8.4                                                        $86,754                                   $78,815                       10.1
 Lease financing                                                          5,359                  5,302                  5,211                       1.1                                             2.8                                                          5,289                  5,268                         .4
                                                           -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                     -------------------- -------------------- --------------------
   Total commercial                                                      93,807                                    92,369                                    86,803                       1.6                                             8.1                                                         92,043                                    84,083                        9.5
                                                                                                                                                                                                                                                                                                                                                                                       
 Commercial mortgages                                                    31,767                                    31,888                                    31,830                       (.4 )                                           (.2 )                                                       31,860                                    32,378                       (1.6 )
 Construction and development                                            11,624                 11,486                 10,401                       1.2                                            11.8                                                         11,180                 10,037                       11.4
                                                           -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                     -------------------- -------------------- --------------------
   Total commercial real estate                                          43,391                                    43,374                                    42,231                        --                                             2.7                                                         43,040                                    42,415                        1.5
                                                                                                                                                                                                                                                                                                                                                                                       
 Residential mortgages                                                   56,718                                    56,284                                    52,970                        .8                                             7.1                                                         55,682                                    51,840                        7.4
                                                                                                                                                                                                                                                                                                                                                                                       
 Credit card                                                             20,942                                    20,628                                    18,838                       1.5                                            11.2                                                         20,490                                    18,057                       13.5
                                                                                                                                                                                                                                                                                                                                                                                       
 Retail leasing                                                           6,191                                     5,773                                     5,265                       7.2                                            17.6                                                          5,619                                     5,563                        1.0
 Home equity and second mortgages                                        16,444                                    16,470                                    16,241                       (.2 )                                           1.2                                                         16,419                                    16,046                        2.3
 Other                                                                   31,245                 30,608                 29,556                       2.1                                             5.7                                                         30,292                 27,470                       10.3
                                                           -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                     -------------------- -------------------- --------------------
   Total other retail                                                    53,880                 52,851                 51,062                       1.9                                             5.5                                                         52,330                 49,079                        6.6
                                                           -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                     -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                       
 Total loans, excluding covered loans                                   268,738                265,506                251,904                       1.2                                             6.7                                                        263,585                245,474                        7.4
                                                           -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                     -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                       
 Covered loans                                                            3,933                  4,131                  4,788                      (4.8 )                                         (17.9 )                                                        4,226                  4,985                      (15.2 )
                                                           -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                     -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                       
 Total loans                                                           $272,671               $269,637               $256,692                       1.1                                             6.2                                                       $267,811               $250,459                        6.9
                                                           -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                     -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                       

Loans

Average total loans were $16.0 billion (6.2 percent) higher in the fourth quarter of 2016 than the fourth quarter of 2015 (5.6 percent excluding the credit card portfolio acquisition at the end of the fourth quarter of 2015). The increase was due to growth in total commercial loans (8.1 percent), residential mortgages (7.1 percent), total other retail loans (5.5 percent), total commercial real estate (2.7 percent) and credit card loans (11.2 percent). Excluding the credit card portfolio acquisition, credit card loans were 2.6 percent higher than the fourth quarter of 2015. These increases were partially offset by a decrease in the run-off covered loans portfolio (17.9 percent). Average total loans were $3.0 billion (1.1 percent) higher in the fourth quarter of 2016 than the third quarter of 2016. This increase was driven by linked quarter growth in total commercial loans (1.6 percent), total other retail loans (1.9 percent), residential mortgages (0.8 percent), and credit card loans (1.5 percent).

 
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 AVERAGE DEPOSITS                                                                                                                                                                                                                                            Table 5  
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -----------------------------
 ($ in millions)                                                                                                              Percent                     Percent                                                
                                                                                                                                                                                      Change                                         Change
                                                       4Q                                        3Q                                        4Q                                        4Q16 vs                                        4Q16 vs                                 Full Year                                 Full Year                                        Percent
                                                     2016                   2016                   2015                        3Q16                        4Q15                   2016                   2015                      Change
                                     -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------- ---------------------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------------
                                                                                                                                                                                                                                                                                                                                                                                    
 Noninterest-bearing deposits                                          $84,892                                   $82,021                                   $83,894                       3.5                                            1.2                                                        $81,176                                   $79,203                       2.5
 Interest-bearing savings deposits
   Interest checking                                                    64,647                                    63,456                                    57,109                       1.9                                           13.2                                                         61,726                                    55,974                      10.3
   Money market savings                                                106,637                                    99,921                                    82,828                       6.7                                           28.7                                                         96,518                                    79,266                      21.8
   Savings accounts                                                     41,310                 40,695                 37,991                       1.5                                            8.7                                                         40,382                 37,150                       8.7
                                                          -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                    -------------------- -------------------- --------------------
     Total of savings deposits                                         212,594                                   204,072                                   177,928                       4.2                                           19.5                                                        198,626                                   172,390                      15.2
 Time deposits                                                          31,697                 32,455                 32,683                      (2.3 )                                         (3.0 )                                                       33,008                 35,558                      (7.2 )
                                                          -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                    -------------------- -------------------- --------------------
     Total interest-bearing deposits                                   244,291                236,527                210,611                       3.3                                           16.0                                                        231,634                207,948                      11.4
                                                          -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                    -------------------- -------------------- --------------------
 Total deposits                                                       $329,183               $318,548               $294,505                       3.3                                           11.8                                                       $312,810               $287,151                       8.9
                                                          -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                    -------------------- -------------------- --------------------
 
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Deposits

Average total deposits for the fourth quarter of 2016 were $34.7 billion (11.8 percent) higher than the fourth quarter of 2015. Average noninterest-bearing deposits increased $1.0 billion (1.2 percent) year-over-year mainly in Consumer and Small Business Banking, partially offset by a decline in deposits within Wealth Management and Securities Services. Average total savings deposits were $34.7 billion (19.5 percent) higher year-over-year, the result of growth across all business lines. Average time deposits were $1.0 billion (3.0 percent) lower than the prior year quarter. Changes in time deposits are largely related to those deposits managed as an alternative to other funding sources such as wholesale borrowing, based largely on relative pricing and liquidity characteristics.

Average total deposits increased $10.6 billion (3.3 percent) over the third quarter of 2016. On a linked quarter basis, average noninterest-bearing deposits grew $2.9 billion (3.5 percent) and average total savings deposits grew $8.5 billion (4.2 percent) reflecting increases across all business lines. Average time deposits, which are managed based on funding needs, relative pricing, and liquidity characteristics, decreased $758 million (2.3 percent) on a linked quarter basis.

 
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 NONINTEREST INCOME                                                                                                                                                                                                                                                          Table 6  
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------------------------------
 ($ in millions)                                                                                                                  Percent                            Percent                                                
                                                                                                                                                                                                             Change                                                Change
                                                                             4Q                                        3Q                                        4Q                                         4Q16 vs                                               4Q16 vs                                 Full Year                                 Full Year                                               Percent
                                                                           2016                   2016                   2015                         3Q16                               4Q15                   2016                   2015                             Change
                                                           -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------------------------------------------- ----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                
 Credit and debit card revenue                                                                  $316                                      $299                                      $294                        5.7                                                   7.5                                                         $1,177                                    $1,070                             10.0
 Corporate payment products revenue                                                              171                                       190                                       170                      (10.0 )                                                  .6                                                            712                                       708                               .6
 Merchant processing services                                                                    404                                       412                                       393                       (1.9 )                                                 2.8                                                          1,592                                     1,547                              2.9
 ATM processing services                                                                          87                                        87                                        79                         --                                                  10.1                                                            338                                       318                              6.3
 Trust and investment management fees                                                            368                                       362                                       336                        1.7                                                   9.5                                                          1,427                                     1,321                              8.0
 Deposit service charges                                                                         186                                       192                                       182                       (3.1 )                                                 2.2                                                            725                                       702                              3.3
 Treasury management fees                                                                        147                                       147                                       139                         --                                                   5.8                                                            583                                       561                              3.9
 Commercial products revenue                                                                     217                                       219                                       222                        (.9 )                                                (2.3 )                                                          871                                       867                               .5
 Mortgage banking revenue                                                                        240                                       314                                       211                      (23.6 )                                                13.7                                                            979                                       906                              8.1
 Investment products fees                                                                         38                                        41                                        44                       (7.3 )                                               (13.6 )                                                          158                                       185                            (14.6 )
 Securities gains (losses), net                                                                    6                                        10                                         1                      (40.0 )                                                   nm                                         22                                        --                      nm 
 Other                                                                                           251                    172                    269                       45.9                                                  (6.7 )                                                          993                    907                              9.5
                                                                                -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                            -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                
 Total noninterest income                                                                     $2,431                 $2,445                 $2,340                        (.6 )                                                 3.9                                                         $9,577                 $9,092                              5.3
                                                                                -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                            -------------------- -------------------- --------------------
 
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Noninterest Income

Fourth quarter noninterest income was $2,431 million, which was $91 million (3.9 percent) higher than the fourth quarter of 2015, reflecting increases in payment services revenue, trust and investment management fees, and mortgage banking revenue, partially offset by a decline in other noninterest income. Credit and debit card revenue increased $22 million (7.5 percent) reflecting higher transaction volumes including the impact of acquired portfolios. Merchant processing services revenue increased $11 million (2.8 percent) as a result of an increase in product fees and higher volumes. Adjusted for the approximate $11 million impact of foreign currency rate changes, year-over-year merchant processing services revenue increased approximately 5.6 percent. Trust and investment management fees increased $32 million (9.5 percent) reflecting lower money market fee waivers along with account growth, an increase in assets under management, and improved market conditions. Mortgage banking revenue increased $29 million (13.7 percent) over a year ago driven by higher origination and sales volumes. Other income decreased $18 million (6.7 percent) compared with the prior year quarter, primarily reflecting lower income from leasing residuals and the impact of a gain on the sale of a deposit portfolio in the fourth quarter of 2015 partially offset by stronger trading income and higher fourth quarter 2016 equity investment income.

Noninterest income was $14 million (0.6 percent) lower in the fourth quarter of 2016 than the third quarter of 2016 principally driven by lower mortgage banking revenue and seasonally lower corporate payment products revenue, partially offset by seasonally higher credit and debit card revenue and an increase in other noninterest income. Mortgage banking revenue decreased $74 million (23.6 percent) reflecting lower origination and sales volume, while corporate payment products revenue was $19 million (10.0 percent) lower, reflecting seasonally lower government-related transaction volumes. Credit and debit card revenue increased $17 million (5.7 percent), driven by seasonally higher sales volumes. The increase in other income of $79 million (45.9 percent) was primarily driven by changes in equity investment income.

 
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 NONINTEREST EXPENSE                                                                                                                                                                                                                                            Table 7  
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -----------------------------
 ($ in millions)                                                                                                             Percent                     Percent                                                
                                                                                                                                                                                     Change                                         Change
                                                      4Q                                        3Q                                        4Q                                        4Q16 vs                                        4Q16 vs                                 Full Year                                 Full Year                                        Percent
                                                    2016                   2016                   2015                        3Q16                        4Q15                   2016                   2015                      Change
                                    -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------- ---------------------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------------
                                                                                                                                                                                                                                                                                                                                                                                   
 Compensation                                                          $1,357                                    $1,329                                    $1,212                       2.1                                           12.0                                                         $5,212                                    $4,812                       8.3
 Employee benefits                                                        261                                       280                                       272                      (6.8 )                                         (4.0 )                                                        1,119                                     1,167                      (4.1 )
 Net occupancy and equipment                                              247                                       250                                       246                      (1.2 )                                           .4                                                            988                                       991                       (.3 )
 Professional services                                                    156                                       127                                       125                      22.8                                           24.8                                                            502                                       423                      18.7
 Marketing and business development                                       107                                       102                                        96                       4.9                                           11.5                                                            435                                       361                      20.5
 Technology and communications                                            238                                       243                                       230                      (2.1 )                                          3.5                                                            955                                       887                       7.7
 Postage, printing and supplies                                            75                                        80                                        74                      (6.3 )                                          1.4                                                            311                                       297                       4.7
 Other intangibles                                                         45                                        45                                        46                        --                                           (2.2 )                                                          179                                       174                       2.9
 Other                                                                    518                    475                    508                       9.1                                            2.0                                                          1,975                  1,819                       8.6
                                                         -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                    -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                   
 Total noninterest expense                                             $3,004                 $2,931                 $2,809                       2.5                                            6.9                                                        $11,676                $10,931                       6.8
                                                         -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                    -------------------- -------------------- --------------------
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 

Noninterest Expense

Fourth quarter noninterest expense was $3,004 million, $195 million (6.9 percent) higher than the fourth quarter of 2015, primarily due to higher compensation, professional services and marketing expenses. Compensation expense increased $145 million (12.0 percent) principally due to the impact of hiring to support business growth and compliance programs, merit increases, and higher variable compensation. Professional services increased $31 million (24.8 percent) primarily due to compliance programs and implementation costs of capital investments to support business growth. Marketing increased $11 million (11.5 percent) to support new business development. Partially offsetting these increases was an $11 million (4.0 percent) decrease in employee benefits expense mainly due to lower pension and healthcare costs.

Noninterest expense increased $73 million (2.5 percent) on a linked quarter basis driven by higher other noninterest expense, professional services expense and compensation expense. Other noninterest expense increased $43 million (9.1 percent) primarily due to seasonally higher costs related to investments in tax-advantaged projects. Professional services expense was $29 million (22.8 percent) higher due to seasonally higher costs across a majority of the lines of business including capital investments, and risk and compliance activities. Compensation expense increased $28 million (2.1 percent) primarily due to increased staffing to support business investment and compliance programs. Partially offsetting these increases was a $19 million (6.8 percent) decrease in employee benefits expense driven by lower healthcare costs.

Provision for Income Taxes

The provision for income taxes for the fourth quarter of 2016 resulted in a tax rate on a taxable-equivalent basis of 28.6 percent (effective tax rate of 26.9 percent), compared with 29.0 percent (effective tax rate of 27.2 percent) in the fourth quarter of 2015, and 28.9 percent (effective tax rate of 27.2 percent) in the third quarter of 2016.

 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 ALLOWANCE FOR CREDIT LOSSES                                                                                                                                                                                                                                                                                  Table 8    
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------- ----------------------------------------- ---------------------------------------------------- ---------------------
 ($ in millions)                                                                                     4Q                                          3Q                                          2Q                                          1Q                                                       4Q  
                                                                                                                      2016     % (b)                              2016     % (b)                              2016     % (b)                              2016                  % (b)                              2015                  % (b)
                                                                                          ----------------------------------------------------- ---------------------------- ---------------------------------------------------- ---------------------------- ---------------------------------------------------- ---------------------------- ---------------------------------------------------- ----------------------------------------- ---------------------------------------------------- ---------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 Balance, beginning of period                                                                  $4,338                                                                            $4,329                                                                            $4,320                                                                            $4,306                                                                                         $4,306
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 Net charge-offs
   Commercial                                                                                      71                                            .32                                 84                                            .38                                 74                                            .34                                 78                                                  .37                                        58                                                  .28
   Lease financing                                                                                  5                         .37                                  3                         .23                                  5                         .38                                  5                               .38                                         5                               .38
                                                                                          ----------- --------------------                                                   ---------- --------------------                                                   ---------- --------------------                                                   ---------- --------------------                                                                ---------- --------------------
     Total commercial                                                                              76                                            .32                                 87                                            .37                                 79                                            .34                                 83                                                  .37                                        63                                                  .29
   Commercial mortgages                                                                            (3 )                                         (.04 )                                5                                            .06                                 (4 )                                         (.05 )                               (2 )                                               (.03 )                                       2                                                  .02
   Construction and development                                                                    (6 )                                         (.21 )                               (4 )                                         (.14 )                                4                         .15                                 (3 )                                               (.11 )                                      (2 )                                               (.08 )
                                                                                          ----------- --------------------                                                   ---------- --------------------                                                   ---------- --------------------                                                   ---------- --------------------                                                                ---------- --------------------
     Total commercial real estate                                                                  (9 )                                         (.08 )                                1                                            .01                                 --                                             --                                 (5 )                                               (.05 )                                      --                                                   --
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
   Residential mortgages                                                                           12                                            .08                                 12                                            .08                                 17                                            .12                                 19                                                  .14                                        16                                                  .12
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
   Credit card                                                                                    181                                           3.44                                161                                           3.11                                170                                           3.39                                164                                                 3.26                                       166                                                 3.50
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
   Retail leasing                                                                                   1                                            .06                                  1                                            .07                                  2                                            .15                                  1                                                  .08                                         1                                                  .08
   Home equity and second mortgages                                                                (1 )                                         (.02 )                                1                                            .02                                 (1 )                                         (.02 )                                2                                                  .05                                         6                                                  .15
   Other                                                                                           62                         .79                                 52                         .68                                 50                         .68                                 51                               .69                                        53                               .71
                                                                                          ----------- --------------------                                                   ---------- --------------------                                                   ---------- --------------------                                                   ---------- --------------------                                                                ---------- --------------------
     Total other retail                                                                            62                                            .46                                 54                                            .41                                 51                                            .40                                 54                                                  .43                                        60                                                  .47
       Total net charge-offs,                                                                                                                                                                                                                                                                                                                                        
                                                                                          ---------------------------------                                                  --------------------------------                                                  --------------------------------                                                  --------------------------------                                                               --------------------------------
         excluding covered loans                                                                  322                                            .48                                315                                            .47                                317                                            .49                                315                                                  .49                                       305                                                  .48
   Covered loans                                                                                   --                          --                                 --                          --                                 --                          --                                 --                                --                                        --                                --
                                                                                          ----------- --------------------                                                   ---------- --------------------                                                   ---------- --------------------                                                   ---------- --------------------                                                                ---------- --------------------
       Total net charge-offs                                                                      322                                            .47                                315                                            .46                                317                                            .48                                315                                                  .48                                       305                                                  .47
 Provision for credit losses                                                                      342                                                                               325                                                                               327                                                                               330                                                                                            305
 Other changes (a)                                                                                 (1 )                                                                              (1 )                                                                              (1 )                                                                              (1 )                                                                                           --  
                                                                                          ----------- --------------------                                                   ---------- --------------------                                                   ---------- --------------------                                                   ---------- --------------------                                                                ---------- --------------------
 Balance, end of period                                                                        $4,357                                                         $4,338                                                         $4,329                                                         $4,320                                                                      $4,306  
                                                                                          ----------- --------------------                                                   ---------- --------------------                                                   ---------- --------------------                                                   ---------- --------------------                                                                ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 Components
   Allowance for loan losses                                                                   $3,813                                                                            $3,797                                                                            $3,806                                                                            $3,853                                                                                         $3,863
                                                                                                  544                                                            541                                                            523                                                            467                                                                         443  
   Liability for unfunded credit commitments
                                                                                          ----------- --------------------                                                   ---------- --------------------                                                   ---------- --------------------                                                   ---------- --------------------                                                                ---------- --------------------
 Total allowance for credit losses                                                             $4,357                                                         $4,338                                                         $4,329                                                         $4,320                                                                      $4,306  
                                                                                          ----------- --------------------                                                   ---------- --------------------                                                   ---------- --------------------                                                   ---------- --------------------                                                                ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 Gross charge-offs                                                                               $405                                                                              $398                                                                              $407                                                                              $405                                                                                           $381
 Gross recoveries                                                                                 $83                                                                               $83                                                                               $90                                                                               $90                                                                                            $76
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 Allowance for credit losses as a percentage of
                                                                                                 1.60                                                                              1.61                                                                              1.62                                                                              1.65                                                                                           1.67
   Period-end loans, excluding covered loans
                                                                                                  317                                                                               309                                                                               311                                                                               302                                                                                            360
   Nonperforming loans, excluding covered loans
                                                                                                  275                                                                               264                                                                               263                                                                               255                                                                                            288
   Nonperforming assets, excluding covered assets
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
   Period-end loans                                                                              1.59                                                                              1.60                                                                              1.61                                                                              1.63                                                                                           1.65
   Nonperforming loans                                                                            318                                                                               310                                                                               312                                                                               303                                                                                            361
   Nonperforming assets                                                                           272                                                                               261                                                                               259                                                                               251                                                                                            283
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 (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
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 

Credit Quality

The Company’s provision for credit losses for the fourth quarter of 2016 was $342 million, which was $17 million (5.2 percent) higher than the prior quarter and $37 million (12.1 percent) higher than the fourth quarter of 2015. Credit quality was relatively stable compared with the third quarter of 2016.

The provision for credit losses was $20 million higher than net charge-offs in the fourth quarter of 2016, $10 million higher than net charge-offs in the third quarter of 2016, and equal to net charge-offs in the fourth quarter of 2015. The reserve build for the fourth quarter of 2016 was driven by portfolio growth, partially offset by improvement in residential mortgage and home equity credit quality. Total net charge-offs in the fourth quarter of 2016 were $322 million, compared with $315 million in the third quarter of 2016, and $305 million in the fourth quarter of 2015. Net charge-offs increased $7 million (2.2 percent) compared with the third quarter of 2016 reflecting a seasonal increase in credit card loan net charge-offs, offset by declines in commercial and commercial real estate loan net charge-offs. Net charge-offs increased $17 million (5.6 percent) compared with the fourth quarter of 2015 primarily due to higher commercial and credit card loan net charge-offs, partially offset by lower charge-offs related to commercial real estate and residential mortgages. The net charge-off ratio was 0.47 percent in the fourth quarter of 2016, compared with 0.46 percent in the third quarter of 2016 and 0.47 percent in the fourth quarter of 2015.

The allowance for credit losses was $4,357 million at December 31, 2016, compared with $4,338 million at September 30, 2016, and $4,306 million at December 31, 2015. The ratio of the allowance for credit losses to period-end loans was 1.59 percent at December 31, 2016, compared with 1.60 percent at September 30, 2016, and 1.65 percent at December 31, 2015. The ratio of the allowance for credit losses to nonperforming loans was 318 percent at December 31, 2016, compared with 310 percent at September 30, 2016, and 361 percent at December 31, 2015.

Nonperforming assets were $1,603 million at December 31, 2016, compared with $1,664 million at September 30, 2016, and $1,523 million at December 31, 2015. The ratio of nonperforming assets to loans and other real estate was 0.59 percent at December 31, 2016, compared with 0.61 percent at September 30, 2016, and 0.58 percent at December 31, 2015. The $61 million (3.7 percent) decrease in nonperforming assets on a linked quarter basis was driven by improvements in commercial loans, residential mortgages and other real estate. The $80 million (5.3 percent) increase in nonperforming assets on a year-over-year basis was driven by commercial loans within the energy portfolio, partially offset by improvements in the Company’s residential portfolio. Accruing loans 90 days or more past due were $764 million ($552 million excluding covered loans) at December 31, 2016, compared with $748 million ($518 million excluding covered loans) at September 30, 2016, and $831 million ($541 million excluding covered loans) at December 31, 2015.

 
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES                                                                                            Table 9
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------
 (Percent)                                                                 
                                                           Dec 31                      Sep 30                      Jun 30                      Mar 31                       Dec 31
                                                             2016     2016     2016     2016      2015
                                                           ------ -------------------- ------ -------------------- ------ -------------------- ------ -------------------- -------
                                                                                                                                                                                    
 Delinquent loan ratios - 90 days or more past due excluding
 nonperforming loans
   Commercial                                                 .06                         .05                         .05                         .05                          .05
   Commercial real estate                                     .02                         .02                         .03                         .04                          .03
   Residential mortgages                                      .27                         .28                         .27                         .31                          .33
   Credit card                                               1.16                        1.11                         .98                        1.10                         1.09
   Other retail                                               .15                         .14                         .13                         .15                          .15
 Total loans, excluding covered loans                         .20                         .19                         .18                         .20                          .21
   Covered loans                                             5.53                        5.72                        5.81                        6.23                         6.31
 Total loans                                                  .28                         .28                         .27                         .30                          .32
                                                                                                                                                                                    
Delinquent loan ratios - 90 days or more past due including
nonperforming loans
   Commercial                                                 .57                         .61                         .58                         .57                          .25
   Commercial real estate                                     .31                         .26                         .27                         .28                          .33
   Residential mortgages                                     1.31                        1.37                        1.39                        1.54                         1.66
   Credit card                                               1.18                        1.13                        1.00                        1.14                         1.13
   Other retail                                               .45                         .42                         .43                         .45                          .46
 Total loans, excluding covered loans                         .71                         .72                         .70                         .75                          .67
   Covered loans                                             5.68                        5.89                        5.98                        6.39                         6.48
 Total loans                                                  .78                         .79                         .79                         .84                          .78
 
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 ASSET QUALITY                                                                                                                                                                                         Table 10  
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------- --------------------
 ($ in millions)                                                                                                          
                                                                                                          Dec 31                      Sep 30                      Jun 30                      Mar 31                        Dec 31
                                                                                                            2016     2016     2016     2016       2015
                                                                                                          ------ -------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------
 Nonperforming loans
   Commercial                                                                                               $443                        $477                        $450                        $457                          $160
   Lease financing                                                                                            40       40       39       16         14
                                                                                                          ------ -------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------
     Total commercial                                                                                        483                         517                         489                         473                           174
                                                                                                                                                                                                                                    
   Commercial mortgages                                                                                       87                          98                          91                          94                            92
   Construction and development                                                                               37        7       12       10         35
                                                                                                          ------ -------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------
     Total commercial real estate                                                                            124                         105                         103                         104                           127
                                                                                                                                                                                                                                    
   Residential mortgages                                                                                     595                         614                         628                         677                           712
   Credit card                                                                                                 3                           4                           5                           7                             9
   Other retail                                                                                              157      153      157      157        162
                                                                                                          ------ -------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------
 Total nonperforming loans, excluding covered loans                                                        1,362                       1,393                       1,382                       1,418                         1,184
                                                                                                                                                                                                                                    
   Covered loans                                                                                               6        7        7        7          8
                                                                                                          ------ -------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------
 Total nonperforming loans                                                                                 1,368                       1,400                       1,389                       1,425                         1,192
                                                                                                                                                                                                                                    
 Other real estate (a)                                                                                       186                         213                         229                         242                           280
 Covered other real estate (a)                                                                                26                          28                          34                          33                            32
 Other nonperforming assets                                                                                   23       23       20       19         19
                                                                                                          ------ -------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------
                                                                                                                                                                                                                                    
 Total nonperforming assets (b)                                                                           $1,603   $1,664   $1,672   $1,719     $1,523
                                                                                                          ------ -------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------
                                                                                                                                                                                                                                    
 Total nonperforming assets, excluding covered assets                                                     $1,571   $1,629   $1,631   $1,679     $1,483
                                                                                                          ------ -------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------
                                                                                                                                                                                                                                    
                                                                                                            $552     $518     $478     $528       $541
 Accruing loans 90 days or more past due, excluding covered loans
                                                                                                          ------ -------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------
                                                                                                                                                                                                                                    
 Accruing loans 90 days or more past due                                                                    $764     $748     $724     $804       $831
                                                                                                          ------ -------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------
                                                                                                                                                                                                                                    
                                                                                                          $2,557   $2,672   $2,676   $2,735     $2,766
 Performing restructured loans, excluding GNMA and covered loans
                                                                                                          ------ -------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------
                                                                                                                                                                                                                                    
 Performing restructured GNMA and covered loans                                                           $1,604   $1,375   $1,602   $1,851     $1,944
                                                                                                          ------ -------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------
                                                                                                                                                                                                                                    
                                                                                                             .58                         .61                         .62                         .64                           .58
 Nonperforming assets to loans plus ORE, excluding covered assets
 (%)
                                                                                                                                                                                                                                    
 Nonperforming assets to loans plus ORE (%)                                                                  .59                         .61                         .62                         .65                           .58
                                                                                                                                                                                                                                    
 (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.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 COMMON SHARES                                                                                                                                                      Table 11  
----------------------------------------------------------------------------------- -------------------- ---------------------------------------------------- ---------------------------------------------------- ---------------------------------------------------- ---------------------------------------------------- -----------------------------------------------
 (Millions)                                                                                                        4Q                                3Q                                2Q                                1Q                           4Q
                                                                                                                                    2016                              2016                              2016                              2016                         2015
                                                                                                         ---------------------------------------------------- ---------------------------------------------------- ---------------------------------------------------- ---------------------------------------------------- ---------------------------
                                                                                                                                                                                                                                                                                                                                                         
 Beginning shares outstanding                                                                                 1,705                                                1,719                                                1,732                                                1,745                                           1,754
                                                                                                                  6                                                    2                                                    2                                                    3                                               1
 Shares issued for stock incentive plans, acquisitions and other
 corporate purposes
 Shares repurchased                                                                                             (14 )                             (16 )                             (15 )                             (16 )                        (10 )
                                                                                                         ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ----- --------------------
 Ending shares outstanding                                                                                    1,697          1,705          1,719          1,732     1,745  
                                                                                                         ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ----- --------------------
                                                                                                                                                                                                                                                                                                                                                         
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 CAPITAL POSITION                                                                                                                                                                                                                                         Table 12  
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------- -------- --------------------
 ($ in millions)                                                                            Dec 31                         Sep 30                         Jun 30                         Mar 31                          Dec 31
                                                                                                                 2016        2016        2016        2016         2015
                                                                                                              ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- --------
                                                                                                                                                                                                                                                                                                                                
 Total U.S. Bancorp shareholders’ equity                                                                      $47,298                                           $47,759                                           $47,390                                           $46,755                                            $46,131
                                                                                                                                                                                                                                                                                                                                
 Standardized Approach
                                                                                                                                                                                                                                                                                                                                
   Basel III transitional standardized approach
     Common equity tier 1 capital                                                                             $33,720                                           $33,827                                           $33,444                                           $32,827                                            $32,612
     Tier 1 capital                                                                                            39,421                                            39,531                                            39,148                                            38,532                                             38,431
     Total risk-based capital                                                                                  47,355                                            47,452                                            47,049                                            45,412                                             45,313
                                                                                                                                                                                                                                                                                                                                
     Common equity tier 1 capital ratio                                                                           9.4 %                                             9.5 %                                             9.5 %                                             9.5 %                                              9.6 %
     Tier 1 capital ratio                                                                                        11.0                                              11.1                                              11.1                                              11.1                                               11.3
     Total risk-based capital ratio                                                                              13.2                                              13.3                                              13.4                                              13.1                                               13.3
     Leverage ratio                                                                                               9.0                                               9.2                                               9.3                                               9.3                                                9.5
                                                                                                                                                                                                                                                                                                                                
                                                                                                                  9.1                                               9.3                                               9.3                                               9.2                                                9.1
   Common equity tier 1 capital to risk-weighted assets estimated for
   the Basel III fully implemented standardized approach (a)
                                                                                                                                                                                                                                                                                                                                
 Advanced Approaches
  
                                                                                                                 12.2                                              12.4                                              12.3                                              12.3                                               12.5
   Common equity tier 1 capital to risk-weighted assets for the Basel
   III transitional advanced approaches
                                                                                                                                                                                                                                                                                                                                
                                                                                                                 11.7                                              12.1                                              12.0                                              11.9                                               11.9
   Common equity tier 1 capital to risk-weighted assets estimated for
   the Basel III fully implemented advanced approaches (a)
                                                                                                                                                                                                                                                                                                                                
 Tangible common equity to tangible assets (a)                                                                    7.5                                               7.5                                               7.6                                               7.7                                                7.6
 Tangible common equity to risk-weighted assets (a)                                                               9.2                                               9.3                                               9.3                                               9.3                                                9.2
                                                                                                                                                                                                                                                                                                                                
 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.
 
 (a) See Non-GAAP Financial Measures reconciliation on page 21
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 

Capital Management

Total U.S. Bancorp shareholders’ equity was $47.3 billion at December 31, 2016, compared with $47.8 billion at September 30, 2016, and $46.1 billion at December 31, 2015. During the fourth quarter, the Company returned 81 percent of earnings to shareholders through dividends and share buybacks.

All regulatory ratios continue to be in excess of "well-capitalized" requirements. The estimated common equity tier 1 capital to risk-weighted assets ratio using the Basel III fully implemented standardized approach was 9.1 percent at December 31, 2016, compared with 9.3 percent at September 30, 2016, and 9.1 percent at December 31, 2015. The decline from the third quarter of 2016 in the common equity tier 1 ratio was principally due to the impact of rising interest rates on unrealized gains (losses) of securities available-for-sale. The estimated common equity tier 1 capital to risk-weighted assets ratio using the Basel III fully implemented advanced approaches method was 11.7 percent at December 31, 2016, compared with 12.1 percent at September 30, 2016, and 11.9 percent at December 31, 2015.

On Wednesday, January 18, 2017, at 8:00 a.m. CST, Richard K. Davis, chairman and chief executive officer, and Terry Dolan, vice chairman 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 17948161. For those unable to participate during the live call, a recording will be available at approximately 11:00 a.m. CST on Wednesday, January 18 and be accessible through Wednesday, January 25 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 17948161.

Minneapolis-based U.S. Bancorp (USB ), with $446 billion in assets as of December 31, 2016, is the parent company of U.S. Bank National Association, the fifth largest commercial bank in the United States. The Company operates 3,106 banking offices in 25 states and 4,842 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.

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 (which could result, in part, from the United Kingdom’s withdrawal from the European Union); changes in interest rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; deterioration 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, 2015, on file with the Securities and Exchange Commission, including the sections entitled "Risk Factors" and "Corporate Risk Profile" contained in Exhibit 13, and all subsequent filings with the Securities and Exchange Commission under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934. However, factors other than these also could adversely affect U.S. Bancorp’s results, and the reader should not consider these factors to be a complete set of all potential risks or uncertainties. Forward-looking statements speak only as of the date hereof, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.

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 capital 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 of the currently effective ratios, which are subject to certain transitional provisions, temporarily excludes a portion of unrealized gains and losses related to available-for-sale securities and retirement plan obligations, and includes a portion of capital related to intangible assets, other than mortgage servicing rights. These capital 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 capital measures disclosed by the Company may be considered non-GAAP financial measures.

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

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.

 
U.S. Bancorp
Consolidated Statement of Income
                                                                                          Three Months Ended                                                                    Year Ended
(Dollars and Shares in Millions, Except Per Share Data)                                                         December 31,                                                                      December 31,
                                                                                ------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------
(Unaudited)                                                    2016       2015        2016           2015  
---------------------------------------------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
Interest Income                                                                                                                                                                              
Loans                                                                           $2,771                                           $2,583                                           $10,810                                              $10,059
Loans held for sale                                                                 44                                               40                                               154                                                  206
Investment securities                                                              523                                              499                                             2,078                                                2,001
Other interest income                                                               36         34         125            136  
                                                                                ------ -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
  Total interest income                                                          3,374                                            3,156                                            13,167                                               12,402
Interest Expense
Deposits                                                                           170                                              113                                               622                                                  457
Short-term borrowings                                                               62                                               56                                               263                                                  245
Long-term debt                                                                     187        168         754            699  
                                                                                ------ -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
  Total interest expense                                                           419        337       1,639          1,401  
                                                                                ------ -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
Net interest income                                                              2,955                                            2,819                                            11,528                                               11,001
Provision for credit losses                                                        342        305       1,324          1,132  
                                                                                ------ -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
Net interest income after provision for credit losses                            2,613                                            2,514                                            10,204                                                9,869
Noninterest Income
Credit and debit card revenue                                                      316                                              294                                             1,177                                                1,070
Corporate payment products revenue                                                 171                                              170                                               712                                                  708
Merchant processing services                                                       404                                              393                                             1,592                                                1,547
ATM processing services                                                             87                                               79                                               338                                                  318
Trust and investment management fees                                               368                                              336                                             1,427                                                1,321
Deposit service charges                                                            186                                              182                                               725                                                  702
Treasury management fees                                                           147                                              139                                               583                                                  561
Commercial products revenue                                                        217                                              222                                               871                                                  867
Mortgage banking revenue                                                           240                                              211                                               979                                                  906
Investment products fees                                                            38                                               44                                               158                                                  185
Securities gains (losses), net                                                       6                                                1                                                22                                                   --
Other                                                                              251        269         993            907  
                                                                                ------ -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
  Total noninterest income                                                       2,431                                            2,340                                             9,577                                                9,092
Noninterest Expense
Compensation                                                                     1,357                                            1,212                                             5,212                                                4,812
Employee benefits                                                                  261                                              272                                             1,119                                                1,167
Net occupancy and equipment                                                        247                                              246                                               988                                                  991
Professional services                                                              156                                              125                                               502                                                  423
Marketing and business development                                                 107                                               96                                               435                                                  361
Technology and communications                                                      238                                              230                                               955                                                  887
Postage, printing and supplies                                                      75                                               74                                               311                                                  297
Other intangibles                                                                   45                                               46                                               179                                                  174
Other                                                                              518        508       1,975          1,819  
                                                                                ------ -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
  Total noninterest expense                                                      3,004      2,809      11,676         10,931  
                                                                                ------ -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
Income before income taxes                                                       2,040                                            2,045                                             8,105                                                8,030
Applicable income taxes                                                            549        556       2,161          2,097  
                                                                                ------ -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
Net income                                                                       1,491                                            1,489                                             5,944                                                5,933
Net (income) loss attributable to noncontrolling interests                         (13 )                         (13 )                          (56 )                             (54 )
                                                                                ------ -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
Net income attributable to U.S. Bancorp                                         $1,478     $1,476      $5,888         $5,879  
                                                                                ------ -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
Net income applicable to U.S. Bancorp common shareholders                       $1,391     $1,404      $5,589         $5,608  
                                                                                ------ -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                     
Earnings per common share                                                         $.82                                             $.80                                             $3.25                                                $3.18
Diluted earnings per common share                                                 $.82                                             $.80                                             $3.24                                                $3.16
Dividends declared per common share                                              $.280                                            $.255                                            $1.070                                               $1.010
Average common shares outstanding                                                1,700                                            1,747                                             1,718                                                1,764
Average diluted common shares outstanding                     1,705      1,754       1,724          1,772  
---------------------------------------------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------- -------------------- -------------------- ---------- --------------------
                                                                                                                                                                                                                                                
 
U.S. Bancorp
Consolidated Ending Balance Sheet
                                                                                 
                                                                                      December 31,                                         December 31,
(Dollars in Millions)                                 2016           2015  
----------------------------------------------- -------------------- -------- -------------------- -------------------- ---------- --------------------
Assets
Cash and due from banks                                               $15,705                                              $11,147
Investment securities
  Held-to-maturity                                                     42,991                                               43,590
  Available-for-sale                                                   66,284                                               61,997
Loans held for sale                                                     4,826                                                3,184
Loans
  Commercial                                                           93,386                                               88,402
  Commercial real estate                                               43,098                                               42,137
  Residential mortgages                                                57,274                                               53,496
  Credit card                                                          21,749                                               21,012
  Other retail                                                         53,864         51,206  
                                                                     -------- -------------------- -------------------- ---------- --------------------
    Total loans, excluding covered loans                              269,371                                              256,253
  Covered loans                                                         3,836          4,596  
                                                                     -------- -------------------- -------------------- ---------- --------------------
    Total loans                                                       273,207                                              260,849
      Less allowance for loan losses                                   (3,813 )                          (3,863 )
                                                                     -------- -------------------- -------------------- ---------- --------------------
      Net loans                                                       269,394                                              256,986
Premises and equipment                                                  2,443                                                2,513
Goodwill                                                                9,344                                                9,361
Other intangible assets                                                 3,303                                                3,350
Other assets                                                           31,674         29,725  
                                                                     -------- -------------------- -------------------- ---------- --------------------
      Total assets                                                   $445,964       $421,853  
                                                                     -------- -------------------- -------------------- ---------- --------------------
                                                                                                                         
Liabilities and Shareholders’ Equity
Deposits
  Noninterest-bearing                                                 $86,097                                              $83,766
  Interest-bearing                                                    248,493        216,634  
                                                                     -------- -------------------- -------------------- ---------- --------------------
    Total deposits                                                    334,590                                              300,400
Short-term borrowings                                                  13,963                                               27,877
Long-term debt                                                         33,323                                               32,078
Other liabilities                                                      16,155         14,681  
                                                                     -------- -------------------- -------------------- ---------- --------------------
    Total liabilities                                                 398,031                                              375,036
Shareholders’ equity
  Preferred stock                                                       5,501                                                5,501
  Common stock                                                             21                                                   21
  Capital surplus                                                       8,440                                                8,376
  Retained earnings                                                    50,151                                               46,377
  Less treasury stock                                                 (15,280 )                                            (13,125 )
  Accumulated other comprehensive income (loss)                        (1,535 )                          (1,019 )
                                                                     -------- -------------------- -------------------- ---------- --------------------
    Total U.S. Bancorp shareholders’ equity                            47,298                                               46,131
  Noncontrolling interests                                                635            686  
                                                                     -------- -------------------- -------------------- ---------- --------------------
    Total equity                                                       47,933         46,817  
                                                                     -------- -------------------- -------------------- ---------- --------------------
    Total liabilities and equity                  $445,964       $421,853  
----------------------------------------------- -------------------- -------- -------------------- -------------------- ---------- --------------------
                                                                                                                                    
                                                                                                                                                                                                                                                                                       
U.S. Bancorp
Non-GAAP Financial Measures
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                         December 31,                                                          September 30,                                                               June 30,                                         March 31,                                      December 31,
(Dollars in Millions, Unaudited)                                                                                                                                                                                                              2016                             2016                             2016                           2016                           2015  
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------- -------------------- ------------------------------------------------- -------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
Total equity                                                                                                                                                                                                                             $47,933                                                                $48,399                                                                $48,029                                           $47,393                                           $46,817
Preferred stock                                                                                                                                                                                                                           (5,501 )                                                               (5,501 )                                                               (5,501 )                                          (5,501 )                                          (5,501 )
Noncontrolling interests                                                                                                                                                                                                                    (635 )                                                                 (640 )                                                                 (639 )                                            (638 )                                            (686 )
Goodwill (net of deferred tax liability) (1)                                                                                                                                                                                              (8,203 )                                                               (8,239 )                                                               (8,246 )                                          (8,270 )                                          (8,295 )
Intangible assets, other than mortgage servicing rights                                                                                                                                                                                     (712 )                           (756 )                           (796 )                         (820 )                         (838 )                     
                                                                                                                                                                                                                                         ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- --------------------
  Tangible common equity (a)                                                                                                                                                                                                              32,882                                                                 33,263                                                                 32,847                                            32,164                                            31,497
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Tangible common equity (as calculated above)                                                                                                                                                                                              32,882                                                                 33,263                                                                 32,847                                            32,164                                            31,497
Adjustments (2)                                                                                                                                                                                                                              (55 )                             97           133          99          67    
                                                                                                                                                                                                                                         ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                          32,827                                                                 33,360                                                                 32,980                                            32,263                                            31,564
  Common equity tier 1 capital estimated for the Basel III
  fully implemented standardized and advanced approaches (b)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Total assets                                                                                                                                                                                                                             445,964                                                                454,134                                                                438,463                                           428,638                                           421,853
Goodwill (net of deferred tax liability) (1)                                                                                                                                                                                              (8,203 )                                                               (8,239 )                                                               (8,246 )                                          (8,270 )                                          (8,295 )
Intangible assets, other than mortgage servicing rights                                                                                                                                                                                     (712 )                           (756 )                           (796 )                         (820 )                         (838 )                     
                                                                                                                                                                                                                                         ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- --------------------
  Tangible assets (c)                                                                                                                                                                                                                    437,049                                                                445,139                                                                429,421                                           419,548                                           412,720
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Risk-weighted assets, determined in accordance with                                                                                                                                                                                      358,237                      *                                         356,733                                                                351,462                                           346,227                                           341,360
prescribed transitional standardized approach regulatory
requirements (d)
Adjustments (3)                                                                                                                                                                                                                            4,027   *                        3,165         3,079       3,485       3,892    
                                                                                                                                                                                                                                         ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                         362,264                      *                                         359,898                                                                354,541                                           349,712                                           345,252
  Risk-weighted assets estimated for the Basel III fully
  implemented standardized approach (e)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
 
Risk-weighted assets, determined in accordance with                                                                                                                                                                                      277,141                      *                                         272,832                                                                271,495                                           267,309                                           261,668
prescribed transitional advanced approaches regulatory requirements
Adjustments (4)                                                                                                                                                                                                                            4,295   *                        3,372         3,283       3,707       4,099    
                                                                                                                                                                                                                                         ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                         281,436                      *                                         276,204                                                                274,778                                           271,016                                           265,767
  Risk-weighted assets estimated for the Basel III fully
  implemented advanced approaches (f)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Ratios *
Tangible common equity to tangible assets (a)/(c)                                                                                                                                                                                            7.5                      %                                             7.5                      %                                             7.6                      %                        7.7                      %                        7.6                      %
Tangible common equity to risk-weighted assets (a)/(d)                                                                                                                                                                                       9.2                                                                    9.3                                                                    9.3                                               9.3                                               9.2
Common equity tier 1 capital to risk-weighted assets estimated for                                                                                                                                                                           9.1                                                                    9.3                                                                    9.3                                               9.2                                               9.1
the Basel III fully implemented standardized approach (b)/(e)
Common equity tier 1 capital to risk-weighted assets estimated for                                                                                                                                                                          11.7                                                                   12.1                                                                   12.0                                              11.9                                              11.9
the Basel III fully implemented advanced approaches (b)/(f)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                            Three Months Ended                                                                                                                                                                                                     Year Ended
                                                                                       -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------
                                                                                                         December 31,                                                            September 30,                                                               June 30,                                                              March 31,                                                           December 31,                                      December 31,                                      December 31,
                                                                                                                 2016                               2016                             2016                             2016                             2015                           2016                           2015  
                                                                                       --------------------------------------------------- -------------------- --------------------------------------------------- -------------------- ------------------------------------------------- -------------------- ------------------------------------------------- -------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
Net interest income                                                                       $2,955                                                                   $2,893                                                                 $2,845                                                                 $2,835                                                                 $2,819                                           $11,528                                           $11,001
Taxable-equivalent adjustment (5)                                                             49              50            51            53            52         203         213    
                                                                                       --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- --------------------
  Net interest income, on a taxable-equivalent basis                                       3,004                                                                    2,943                                                                  2,896                                                                  2,888                                                                  2,871                                            11,731                                            11,214
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Net interest income, on a taxable-equivalent basis (as calculated                          3,004                                                                    2,943                                                                  2,896                                                                  2,888                                                                  2,871                                            11,731                                            11,214
above)
Noninterest income                                                                         2,431                                                                    2,445                                                                  2,552                                                                  2,149                                                                  2,340                                             9,577                                             9,092
Less: Securities gains (losses), net                                                           6              10             3             3             1          22          --  
                                                                                       --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
  Total net revenue, excluding net securities gains (losses) (g)                           5,429                                                                    5,378                                                                  5,445                                                                  5,034                                                                  5,210                                            21,286                                            20,306
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Noninterest expense (h)                                                                    3,004                                                                    2,931                                                                  2,992                                                                  2,749                                                                  2,809                                            11,676                                            10,931
Less: Intangible amortization                                                                 45              45            44            45            46         179         174  
                                                                                       --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
  Noninterest expense, excluding intangible amortization (i)                               2,959                                                                    2,886                                                                  2,948                                                                  2,704                                                                  2,763                                            11,497                                            10,757
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Efficiency ratio (h)/(g)                                                                    55.3                      %                                              54.5                      %                                            54.9                      %                                            54.6                      %                                            53.9                      %                       54.9                      %                       53.8                      %
Tangible efficiency ratio (i)/(g)                                        54.5            53.7          54.1          53.7          53.0        54.0        53.0    
----------------------------------------------------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
  * Preliminary data. Subject to change prior to filings with
  applicable regulatory agencies.
(1) Includes goodwill related to certain investments in
unconsolidated financial institutions per prescribed regulatory
requirements.
(2) Includes net losses on cash flow hedges included in accumulated
other comprehensive income (loss) and other adjustments.
(3) Includes higher risk-weighting for unfunded loan commitments,
investment securities, residential mortgages, mortgage servicing
rights and other adjustments.
(4) Primarily reflects higher risk-weighting for mortgage
servicing rights.
(5) Utilizes a tax rate of 35 percent for those assets and
liabilities whose income or expense is not included for federal
income tax purposes.
 

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170118005083r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170118005083/en/

SOURCE: U.S. Bancorp

U.S. Bancorp 
Media 
Dana Ripley, 612-303-3167 
or 
Investors/Analysts 
Jennifer Thompson, 612-303-0778


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