U.S. Bancorp Reports Third Quarter 2018 Results
-
Record net revenue of
$5,699 million , record net income of$1,815 million and record diluted earnings per share of$1.06 - Industry leading return on average assets of 1.58% and return on average common equity of 15.5%
3Q18 Key Financial Data
PROFITABILITY METRICS | 3Q18 | 2Q18 | 3Q17 | |||
Return on average assets (%) | 1.58 | 1.54 | 1.38 | |||
Return on average common equity (%) | 15.5 | 15.3 | 13.6 | |||
Return on tangible common equity (%) (a) | 19.9 | 19.8 | 17.3 | |||
Net interest margin (%) | 3.15 | 3.13 | 3.14 | |||
Efficiency ratio (%) (a) | 53.5 | 54.8 | 53.9 | |||
INCOME STATEMENT (b) | 3Q18 | 2Q18 | 3Q17 | |||
Net interest income (taxable-equivalent basis) | $3,281 | $3,226 | $3,227 | |||
Noninterest income | $2,418 | $2,414 | $2,340 | |||
Net income attributable to U.S. Bancorp | $1,815 | $1,750 | $1,563 | |||
Diluted earnings per common share | $1.06 | $1.02 | $.88 | |||
Dividends declared per common share | $.37 | $.30 | $.30 | |||
BALANCE SHEET (b) | 3Q18 | 2Q18 | 3Q17 | |||
Average total loans | $281,065 | $278,624 | $277,626 | |||
Average total deposits | $330,121 | $334,822 | $335,151 | |||
Net charge-off ratio | .46% | .48% | .47% | |||
Book value per common share (period end) | $27.35 | $27.02 | $25.98 | |||
Basel III standardized CET1 (c) | 9.0% | 9.1% | 9.4% | |||
(a) See Non-GAAP Financial Measures reconciliation on pages 16-17 | ||||||
(b) Dollars in millions, except per share data | ||||||
(c) CET1 = Common equity tier 1 capital ratio, 3Q17 as if fully implemented | ||||||
3Q18 Highlights
-
Net income of
$1,815 million and diluted earnings per common share of$1.06 - Industry leading return on average assets of 1.58% and return on average common equity of 15.5%
- Return on tangible common equity of 19.9%
- Returned 78% of 3Q earnings to shareholders through dividends and share buybacks
- Year-over-year positive operating leverage with net revenue increase of 2.4% and noninterest expense increase of 1.5%
- Net interest income grew 2.4% year-over-year (1.7% on a taxable-equivalent basis) and 1.7% linked quarter on both a reported and tax-equivalent basis
-
Total noninterest income grew 3.3% year-over year
- Payment services revenue grew 7.1%
- Trust and investment management fees increased 8.2%
- Nonperforming assets decreased 19.7% on a year-over-year basis and 8.0% on a linked quarter basis
CEO Commentary
“Strong underlying momentum in each of our business lines drove
record revenue, net income and EPS this quarter. We remain vigilant in
our expense discipline while continuing to prudently invest in our core
businesses as well as in our digital and payments capabilities. In the
third quarter, we expanded our commercial banking presence, launched a
new digital platform to serve our small business customers and acquired
new capabilities in our payments business. At the same time, our focus
on optimization allowed us to deliver positive operating leverage and a
best-in-class efficiency ratio, while growing our industry leading
return on tangible common equity ratio to 19.9%. I am thankful for our
—
In the Spotlight
Most Powerful Women in Banking and Finance
Three of our Vice
Chairmen,
Launch of Digital Small Business Lending
Expansion of Commercial Banking Team
Meeting Customers’ Short-Term Cash Needs
INCOME STATEMENT HIGHLIGHTS | ||||||||||||||||||||||||
($ in millions, except per-share data) |
Percent Change | |||||||||||||||||||||||
3Q | 2Q | 3Q | 3Q18 vs | 3Q18 vs | YTD | YTD | Percent | |||||||||||||||||
2018 | 2018 | 2017 | 2Q18 | 3Q17 | 2018 | 2017 | Change | |||||||||||||||||
Net interest income | $3,251 | $3,197 | $3,176 | 1.7 | 2.4 | $9,616 | $9,205 | 4.5 | ||||||||||||||||
Taxable-equivalent adjustment | 30 | 29 | 51 | 3.4 | (41.2 | ) | 88 | 152 | (42.1 | ) | ||||||||||||||
Net interest income (taxable-equivalent basis) | 3,281 | 3,226 | 3,227 | 1.7 | 1.7 | 9,704 | 9,357 | 3.7 | ||||||||||||||||
Noninterest income | 2,418 | 2,414 | 2,340 | .2 | 3.3 | 7,104 | 6,947 | 2.3 | ||||||||||||||||
Total net revenue | 5,699 | 5,640 | 5,567 | 1.0 | 2.4 | 16,808 | 16,304 | 3.1 | ||||||||||||||||
Noninterest expense | 3,044 | 3,085 | 2,998 | (1.3 | ) | 1.5 | 9,184 | 8,891 | 3.3 | |||||||||||||||
Income before provision and income taxes | 2,655 | 2,555 | 2,569 | 3.9 | 3.3 | 7,624 | 7,413 | 2.8 | ||||||||||||||||
Provision for credit losses | 343 | 327 | 360 | 4.9 | (4.7 | ) | 1,011 | 1,055 | (4.2 | ) | ||||||||||||||
Income before taxes | 2,312 | 2,228 | 2,209 | 3.8 | 4.7 | 6,613 | 6,358 | 4.0 | ||||||||||||||||
Income taxes and taxable-equivalent adjustment |
490 | 470 | 640 | 4.3 | (23.4 | ) | 1,351 | 1,791 | (24.6 | ) | ||||||||||||||
Net income | 1,822 | 1,758 | 1,569 | 3.6 | 16.1 | 5,262 | 4,567 | 15.2 | ||||||||||||||||
Net (income) loss attributable to noncontrolling interests |
(7 | ) | (8 | ) | (6 | ) | 12.5 | (16.7 | ) | (22 | ) | (31 | ) | 29.0 | ||||||||||
Net income attributable to U.S. Bancorp | $1,815 | $1,750 | $1,563 | 3.7 | 16.1 | $5,240 | $4,536 | 15.5 | ||||||||||||||||
Net income applicable to U.S. Bancorp common shareholders |
$1,732 | $1,678 | $1,485 | 3.2 | 16.6 | $5,007 | $4,302 | 16.4 | ||||||||||||||||
Diluted earnings per common share | $1.06 | $1.02 | $.88 | 3.9 | 20.5 | $3.04 | $2.55 | 19.2 | ||||||||||||||||
Net income attributable to
The increase in net income year-over-year was largely due to total net
revenue growth of 2.4 percent partially offset by noninterest expense
growth of 1.5 percent. Net interest income increased 2.4 percent (1.7
percent on a taxable-equivalent basis), mainly a result of the impact of
rising interest rates, earning assets growth, and higher yields on
reinvestment of securities, partially offset by higher rates on deposits
and funding mix. Noninterest income increased 3.3 percent compared with
a year ago, driven by strong growth in payment services revenue, trust
and investment management fees, and other noninterest revenue, partially
offset by decreases in mortgage banking revenue and commercial products
revenue. Noninterest expense increased 1.5 percent primarily due to
increased compensation expense related to supporting business growth and
compliance programs, merit increases, and variable compensation related
to revenue growth, higher employee benefits expense, and higher
technology and communications expense in support of business growth.
Partially offsetting these increases was lower other noninterest expense
driven by lower costs related to tax-advantaged projects, lower
Net income increased on a linked quarter basis primarily due to total net revenue growth of 1.0 percent and a decrease in noninterest expense of 1.3 percent. The increase in total net revenue reflected an increase in net interest income of 1.7 percent due to the impact of rising interest rates, earning assets growth, and an additional day in the third quarter, partially offset by higher rates on deposits and funding mix. Noninterest income increased 0.2 percent driven by seasonally higher payment services revenue and deposit services charges, along with higher trust and investment management fees and other noninterest income. These increases were partially offset by decreases in commercial products revenue and mortgage banking revenue. The decrease in noninterest expense of 1.3 percent was primarily driven by lower other noninterest expense due to lower costs related to tax-advantaged projects driven by syndicating tax credits following tax reform and the change in accruals related to legal and insurance matters, as well as a reduction in compensation expense due to lower incentives and seasonally lower contract labor costs.
NET INTEREST INCOME | ||||||||||||||||||||||||
(Taxable-equivalent basis; $ in millions) |
Change | |||||||||||||||||||||||
3Q | 2Q | 3Q | 3Q18 vs | 3Q18 vs | YTD | YTD | ||||||||||||||||||
2018 | 2018 | 2017 | 2Q18 | 3Q17 | 2018 | 2017 | Change | |||||||||||||||||
Components of net interest income | ||||||||||||||||||||||||
Income on earning assets | $4,155 | $3,980 | $3,758 | $175 | $397 | $11,957 | $10,774 | $1,183 | ||||||||||||||||
Expense on interest-bearing liabilities | 874 | 754 | 531 | 120 | 343 | 2,253 | 1,417 | 836 | ||||||||||||||||
Net interest income | $3,281 | $3,226 | $3,227 | $55 | $54 | $9,704 | $9,357 | $347 | ||||||||||||||||
Average yields and rates paid | ||||||||||||||||||||||||
Earning assets yield | 3.98 | % | 3.86 | % | 3.66 | % | .12 | % | .32 | % | 3.86 | % | 3.56 | % | .30 | % | ||||||||
Rate paid on interest-bearing liabilities | 1.10 | .97 | .69 | .13 | .41 | .96 | .63 | .33 | ||||||||||||||||
Gross interest margin | 2.88 | % | 2.89 | % | 2.97 | % | (.01 | )% | (.09 | )% | 2.90 | % | 2.93 | % | (.03 | )% | ||||||||
Net interest margin | 3.15 | % | 3.13 | % | 3.14 | % | .02 | % | .01 | % | 3.14 | % | 3.09 | % | .05 | % | ||||||||
Average balances | ||||||||||||||||||||||||
Investment securities (a) | $113,547 | $114,578 | $111,832 | $(1,031 | ) | $1,715 | $113,873 | $111,325 | $2,548 | |||||||||||||||
Loans | 281,065 | 278,624 | 277,626 | 2,441 | 3,439 | 279,699 | 275,454 | 4,245 | ||||||||||||||||
Earning assets | 415,177 | 412,676 | 408,825 | 2,501 | 6,352 | 413,246 | 404,031 | 9,215 | ||||||||||||||||
Interest-bearing liabilities | 314,816 | 312,217 | 304,236 | 2,599 | 10,580 | 312,894 | 299,922 | 12,972 | ||||||||||||||||
(a) Excludes unrealized gain (loss) | ||||||||||||||||||||||||
Net interest income on a taxable-equivalent basis in the third quarter
of 2018 was
Net interest income on a taxable-equivalent basis increased
The net interest margin in the third quarter of 2018 was 3.15 percent, compared with 3.14 percent in the third quarter of 2017 and 3.13 percent in the second quarter of 2018. The increase in the net interest margin year-over-year was primarily due to higher interest rates, partially offset by deposit and funding mix, lower loan spreads due to mix, and the impact of tax reform. The increase in net interest margin on a linked quarter basis was primarily due to the impact of higher rates on assets, partially offset by deposit and funding mix, as well as higher cash balances.
Average investment securities in the third quarter of 2018 increased
AVERAGE LOANS | |||||||||||||||||||
($ in millions) | Percent Change | ||||||||||||||||||
3Q | 2Q | 3Q | 3Q18 vs | 3Q18 vs | YTD | YTD | Percent | ||||||||||||
2018 | 2018 | 2017 | 2Q18 | 3Q17 | 2018 | 2017 | Change | ||||||||||||
Commercial | $93,541 | $92,835 | $91,077 | .8 | 2.7 | $92,776 | $89,817 | 3.3 | |||||||||||
Lease financing | 5,507 | 5,518 | 5,556 | (.2 | ) | (.9 | ) | 5,519 | 5,530 | (.2 | ) | ||||||||
Total commercial | 99,048 | 98,353 | 96,633 | .7 | 2.5 | 98,295 | 95,347 | 3.1 | |||||||||||
Commercial mortgages | 28,362 | 28,710 | 30,114 | (1.2 | ) | (5.8 | ) | 28,746 | 30,729 | (6.5 | ) | ||||||||
Construction and development | 11,180 | 11,147 | 11,507 | .3 | (2.8 | ) | 11,172 | 11,708 | (4.6 | ) | |||||||||
Total commercial real estate | 39,542 | 39,857 | 41,621 | (.8 | ) | (5.0 | ) | 39,918 | 42,437 | (5.9 | ) | ||||||||
Residential mortgages | 62,042 | 60,834 | 59,030 | 2.0 | 5.1 | 61,023 | 58,496 | 4.3 | |||||||||||
Credit card | 21,774 | 21,220 | 20,926 | 2.6 | 4.1 | 21,428 | 20,801 | 3.0 | |||||||||||
Retail leasing | 8,383 | 8,150 | 7,762 | 2.9 | 8.0 | 8,173 | 7,142 | 14.4 | |||||||||||
Home equity and second mortgages | 16,000 | 16,048 | 16,299 | (.3 | ) | (1.8 | ) | 16,080 | 16,270 | (1.2 | ) | ||||||||
Other | 31,520 | 31,265 | 32,008 | .8 | (1.5 | ) | 31,882 | 31,423 | 1.5 | ||||||||||
Total other retail | 55,903 | 55,463 | 56,069 | .8 | (.3 | ) | 56,135 | 54,835 | 2.4 | ||||||||||
Total loans, excluding covered loans | 278,309 | 275,727 | 274,279 | .9 | 1.5 | 276,799 | 271,916 | 1.8 | |||||||||||
Covered loans | 2,756 | 2,897 | 3,347 | (4.9 | ) | (17.7 | ) | 2,900 | 3,538 | (18.0 | ) | ||||||||
Total loans | $281,065 | $278,624 | $277,626 | .9 | 1.2 | $279,699 | $275,454 | 1.5 | |||||||||||
Average total loans were
AVERAGE DEPOSITS | |||||||||||||||||||
($ in millions) | Percent Change | ||||||||||||||||||
3Q | 2Q | 3Q | 3Q18 vs | 3Q18 vs | YTD | YTD | Percent | ||||||||||||
2018 | 2018 | 2017 | 2Q18 | 3Q17 | 2018 | 2017 | Change | ||||||||||||
Noninterest-bearing deposits | $77,192 | $78,987 | $81,964 | (2.3 | ) | (5.8 | ) | $78,546 | $81,808 | (4.0 | ) | ||||||||
Interest-bearing savings deposits | |||||||||||||||||||
Interest checking | 69,330 | 69,918 | 68,066 | (.8 | ) | 1.9 | 69,865 | 67,021 | 4.2 | ||||||||||
Money market savings | 100,688 | 103,333 | 105,072 | (2.6 | ) | (4.2 | ) | 102,453 | 106,856 | (4.1 | ) | ||||||||
Savings accounts | 44,848 | 45,069 | 43,649 | (.5 | ) | 2.7 | 44,770 | 43,265 | 3.5 | ||||||||||
Total savings deposits | 214,866 | 218,320 | 216,787 | (1.6 | ) | (.9 | ) | 217,088 | 217,142 | -- | |||||||||
Time deposits | 38,063 | 37,515 | 36,400 | 1.5 | 4.6 | 37,525 | 32,660 | 14.9 | |||||||||||
Total interest-bearing deposits | 252,929 | 255,835 | 253,187 | (1.1 | ) | (.1 | ) | 254,613 | 249,802 | 1.9 | |||||||||
Total deposits | $330,121 | $334,822 | $335,151 | (1.4 | ) | (1.5 | ) | $333,159 | $331,610 | .5 | |||||||||
Average total deposits for the third quarter of 2018 were
Average total deposits decreased
Average total savings deposits decreased
NONINTEREST INCOME | ||||||||||||||||||||
($ in millions) | Percent Change | |||||||||||||||||||
3Q | 2Q | 3Q | 3Q18 vs | 3Q18 vs | YTD | YTD | Percent | |||||||||||||
2018 | 2018 | 2017 | 2Q18 | 3Q17 | 2018 | 2017 | Change | |||||||||||||
Credit and debit card revenue | $344 | $351 | $318 | (2.0 | ) | 8.2 | $1,019 | $947 | 7.6 | |||||||||||
Corporate payment products revenue | 169 | 158 | 150 | 7.0 | 12.7 | 481 | 427 | 12.6 | ||||||||||||
Merchant processing services | 392 | 387 | 377 | 1.3 | 4.0 | 1,142 | 1,112 | 2.7 | ||||||||||||
ATM processing services | 85 | 90 | 77 | (5.6 | ) | 10.4 | 254 | 223 | 13.9 | |||||||||||
Trust and investment management fees | 411 | 401 | 380 | 2.5 | 8.2 | 1,210 | 1,128 | 7.3 | ||||||||||||
Deposit service charges | 198 | 183 | 187 | 8.2 | 5.9 | 563 | 538 | 4.6 | ||||||||||||
Treasury management fees | 146 | 155 | 153 | (5.8 | ) | (4.6 | ) | 451 | 466 | (3.2 | ) | |||||||||
Commercial products revenue | 216 | 234 | 240 | (7.7 | ) | (10.0 | ) | 670 | 730 | (8.2 | ) | |||||||||
Mortgage banking revenue | 174 | 191 | 213 | (8.9 | ) | (18.3 | ) | 549 | 632 | (13.1 | ) | |||||||||
Investment products fees | 47 | 47 | 42 | -- | 11.9 | 140 | 128 | 9.4 | ||||||||||||
Securities gains (losses), net | 10 | 10 | 9 | -- | 11.1 | 25 | 47 | (46.8 | ) | |||||||||||
Other | 226 | 207 | 194 | 9.2 | 16.5 | 600 | 569 | 5.4 | ||||||||||||
Total noninterest income | $2,418 | $2,414 | $2,340 | .2 | 3.3 | $7,104 | $6,947 | 2.3 | ||||||||||||
Third quarter noninterest income of
Noninterest income was
NONINTEREST EXPENSE | |||||||||||||||||||
($ in millions) | Percent Change | ||||||||||||||||||
3Q | 2Q | 3Q | 3Q18 vs | 3Q18 vs | YTD | YTD | Percent | ||||||||||||
2018 | 2018 | 2017 | 2Q18 | 3Q17 | 2018 | 2017 | Change | ||||||||||||
Compensation | $1,529 | $1,542 | $1,440 | (.8 | ) | 6.2 | $4,594 | $4,247 | 8.2 | ||||||||||
Employee benefits | 294 | 299 | 268 | (1.7 | ) | 9.7 | 923 | 843 | 9.5 | ||||||||||
Net occupancy and equipment | 270 | 262 | 258 | 3.1 | 4.7 | 797 | 760 | 4.9 | |||||||||||
Professional services | 96 | 95 | 104 | 1.1 | (7.7 | ) | 274 | 305 | (10.2 | ) | |||||||||
Marketing and business development | 106 | 111 | 92 | (4.5 | ) | 15.2 | 314 | 291 | 7.9 | ||||||||||
Technology and communications | 247 | 242 | 227 | 2.1 | 8.8 | 724 | 667 | 8.5 | |||||||||||
Postage, printing and supplies | 84 | 80 | 82 | 5.0 | 2.4 | 244 | 244 | -- | |||||||||||
Other intangibles | 41 | 40 | 44 | 2.5 | (6.8 | ) | 120 | 131 | (8.4 | ) | |||||||||
Other | 377 | 414 | 483 | (8.9 | ) | (21.9 | ) | 1,194 | 1,403 | (14.9 | ) | ||||||||
Total noninterest expense | $3,044 | $3,085 | $2,998 | (1.3 | ) | 1.5 | $9,184 | $8,891 | 3.3 | ||||||||||
Third quarter noninterest expense of
Noninterest expense decreased
Provision for Income Taxes
The provision for income taxes for the third quarter of 2018 resulted in a tax rate of 21.2 percent on a taxable-equivalent basis (effective tax rate of 20.2 percent), compared with 29.0 percent (effective tax rate of 27.3 percent) in the third quarter of 2017, and 21.1 percent on a taxable-equivalent basis (effective tax rate of 20.1 percent) in the second quarter of 2018. The lower 2018 tax rates reflect the tax reform legislation enacted during the fourth quarter of 2017.
ALLOWANCE FOR CREDIT LOSSES | ||||||||||||||||||||||||||||||
($ in millions) | 3Q | 2Q | 1Q | 4Q | 3Q | |||||||||||||||||||||||||
2018 | % (b) | 2018 | % (b) | 2018 | % (b) | 2017 | % (b) | 2017 | % (b) | |||||||||||||||||||||
Balance, beginning of period | $4,411 | $4,417 | $4,417 | $4,407 | $4,377 | |||||||||||||||||||||||||
Net charge-offs | ||||||||||||||||||||||||||||||
Commercial | 63 | .27 | 54 | .23 | 56 | .25 | 22 | .09 | 79 | .34 | ||||||||||||||||||||
Lease financing | 3 | .22 | 4 | .29 | 4 | .29 | 6 | .44 | 4 | .29 | ||||||||||||||||||||
Total commercial | 66 | .26 | 58 | .24 | 60 | .25 | 28 | .11 | 83 | .34 | ||||||||||||||||||||
Commercial mortgages | (5 | ) | (.07 | ) | -- | -- | (4 | ) | (.06 | ) | 18 | .24 | (2 | ) | (.03 | ) | ||||||||||||||
Construction and development | (4 | ) | (.14 | ) | -- | -- | 1 | .04 | -- | -- | (5 | ) | (.17 | ) | ||||||||||||||||
Total commercial real estate | (9 | ) | (.09 | ) | -- | -- | (3 | ) | (.03 | ) | 18 | .17 | (7 | ) | (.07 | ) | ||||||||||||||
Residential mortgages | 4 | .03 | 4 | .03 | 7 | .05 | 10 | .07 | 7 | .05 | ||||||||||||||||||||
Credit card | 206 | 3.75 | 210 | 3.97 | 211 | 4.02 | 205 | 3.83 | 187 | 3.55 | ||||||||||||||||||||
Retail leasing | 3 | .14 | 3 | .15 | 3 | .15 | 3 | .15 | 2 | .10 | ||||||||||||||||||||
Home equity and second mortgages | (1 | ) | (.02 | ) | (2 | ) | (.05 | ) | (1 | ) | (.03 | ) | (2 | ) | (.05 | ) | (1 | ) | (.02 | ) | ||||||||||
Other | 59 | .74 | 59 | .76 | 64 | .79 | 63 | .76 | 59 | .73 | ||||||||||||||||||||
Total other retail | 61 | .43 | 60 | .43 | 66 | .47 | 64 | .44 | 60 | .42 | ||||||||||||||||||||
Total net charge-offs, |
|
|||||||||||||||||||||||||||||
excluding covered loans |
328 | .47 | 332 | .48 | 341 | .50 | 325 | .47 | 330 | .48 | ||||||||||||||||||||
Covered loans | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||||||||
Total net charge-offs | 328 | .46 | 332 | .48 | 341 | .49 | 325 | .46 | 330 | .47 | ||||||||||||||||||||
Provision for credit losses | 343 | 327 | 341 | 335 | 360 | |||||||||||||||||||||||||
Other changes (a) | -- | (1 | ) | -- | -- | -- | ||||||||||||||||||||||||
Balance, end of period | $4,426 | $4,411 | $4,417 | $4,417 | $4,407 | |||||||||||||||||||||||||
Components | ||||||||||||||||||||||||||||||
Allowance for loan losses | $3,954 | $3,920 | $3,918 | $3,925 | $3,908 | |||||||||||||||||||||||||
Liability for unfunded credit commitments |
472 | 491 | 499 | 492 | 499 | |||||||||||||||||||||||||
Total allowance for credit losses | $4,426 | $4,411 | $4,417 | $4,417 | $4,407 | |||||||||||||||||||||||||
Gross charge-offs | $428 | $437 | $453 | $464 | $433 | |||||||||||||||||||||||||
Gross recoveries | $100 | $105 | $112 | $139 | $103 | |||||||||||||||||||||||||
Allowance for credit losses as a percentage of | ||||||||||||||||||||||||||||||
Period-end loans | 1.57 | 1.57 | 1.59 | 1.58 | 1.58 | |||||||||||||||||||||||||
Nonperforming loans | 544 | 484 | 431 | 438 | 426 | |||||||||||||||||||||||||
Nonperforming assets | 441 | 404 | 367 | 368 | 352 | |||||||||||||||||||||||||
(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. |
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(b) Annualized and calculated on average loan balances | ||||||||||||||||||||||||||||||
Credit quality was relatively stable on a linked quarter and
year-over-year basis. The Company’s provision for credit losses for the
third quarter of 2018 was
Total net charge-offs in the third quarter of 2018 were
The allowance for credit losses was
Nonperforming assets were
DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES | ||||||||||
(Percent) | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | |||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||
Delinquent loan ratios - 90 days or more past due excluding nonperforming loans | ||||||||||
Commercial | .06 | .06 | .06 | .06 | .05 | |||||
Commercial real estate | .01 | .01 | .01 | .01 | .01 | |||||
Residential mortgages | .19 | .18 | .22 | .22 | .18 | |||||
Credit card | 1.18 | 1.15 | 1.29 | 1.28 | 1.20 | |||||
Other retail | .17 | .16 | .18 | .17 | .15 | |||||
Total loans, excluding covered loans | .19 | .19 | .21 | .21 | .18 | |||||
Covered loans (a) | .86 | 4.46 | 4.57 | 4.74 | 4.66 | |||||
Total loans | .20 | .23 | .25 | .26 | .23 | |||||
Delinquent loan ratios - 90 days or more past due including nonperforming loans | ||||||||||
Commercial | .28 | .28 | .37 | .31 | .33 | |||||
Commercial real estate | .27 | .27 | .31 | .37 | .30 | |||||
Residential mortgages | .69 | .84 | .93 | .96 | .98 | |||||
Credit card | 1.18 | 1.15 | 1.29 | 1.28 | 1.20 | |||||
Other retail | .49 | .48 | .48 | .46 | .43 | |||||
Total loans, excluding covered loans | .48 | .51 | .58 | .57 | .55 | |||||
Covered loans (a) | .86 | 4.68 | 4.77 | 4.93 | 4.84 | |||||
Total loans | .48 | .55 | .62 | .62 | .60 | |||||
(a) Effective September 30, 2018, the Company transferred $1.3 billion of covered loans to loans held for sale. | ||||||||||
Included in the amount transferred were $108 million of loans 90 days or more past due and $6 million that were nonperforming. |
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ASSET QUALITY (a) | ||||||||||
($ in millions) | ||||||||||
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | ||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||
Nonperforming loans | ||||||||||
Commercial | $193 | $199 | $274 | $225 | $231 | |||||
Lease financing | 23 | 25 | 27 | 24 | 38 | |||||
Total commercial | 216 | 224 | 301 | 249 | 269 | |||||
Commercial mortgages | 77 | 72 | 86 | 108 | 89 | |||||
Construction and development | 28 | 32 | 33 | 34 | 33 | |||||
Total commercial real estate | 105 | 104 | 119 | 142 | 122 | |||||
Residential mortgages | 317 | 400 | 430 | 442 | 474 | |||||
Credit card | -- | -- | -- | 1 | 1 | |||||
Other retail | 175 | 178 | 168 | 168 | 163 | |||||
Total nonperforming loans, excluding covered loans | 813 | 906 | 1,018 | 1,002 | 1,029 | |||||
Covered loans | -- | 6 | 6 | 6 | 6 | |||||
Total nonperforming loans | 813 | 912 | 1,024 | 1,008 | 1,035 | |||||
Other real estate | 100 | 108 | 124 | 141 | 164 | |||||
Covered other real estate | 19 | 20 | 20 | 21 | 26 | |||||
Other nonperforming assets | 72 | 51 | 36 | 30 | 26 | |||||
Total nonperforming assets | $1,004 | $1,091 | $1,204 | $1,200 | $1,251 | |||||
Accruing loans 90 days or more past due | $551 | $640 | $702 | $720 | $649 | |||||
Performing restructured loans, excluding GNMA and covered loans |
$2,262 | $2,164 | $2,190 | $2,306 | $2,419 | |||||
Performing restructured GNMA and covered loans | $1,678 | $1,695 | $1,598 | $1,713 | $1,600 | |||||
Nonperforming assets to loans plus ORE (%) | .36 | .39 | .43 | .43 | .45 | |||||
(a) Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due | ||||||||||
COMMON SHARES | |||||||||||||||
(Millions) | 3Q | 2Q | 1Q | 4Q | 3Q | ||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | |||||||||||
Beginning shares outstanding | 1,636 | 1,649 | 1,656 | 1,667 | 1,679 | ||||||||||
Shares issued for stock incentive plans, acquisitions and other corporate purposes |
1 | -- | 4 | 1 | -- | ||||||||||
Shares repurchased | (14 | ) | (13 | ) | (11 | ) | (12 | ) | (12 | ) | |||||
Ending shares outstanding | 1,623 | 1,636 | 1,649 | 1,656 | 1,667 | ||||||||||
CAPITAL POSITION | |||||||||||||||
($ in millions) | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | ||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | |||||||||||
Total U.S. Bancorp shareholders' equity | $50,375 | $49,628 | $49,187 | $49,040 | $48,723 | ||||||||||
Basel III Standardized Approach (a) | |||||||||||||||
Common equity tier 1 capital | $34,097 | $34,161 | $33,539 | $34,369 | $34,876 | ||||||||||
Tier 1 capital | 40,114 | 39,611 | 38,991 | 39,806 | 40,411 | ||||||||||
Total risk-based capital | 47,531 | 47,258 | 46,640 | 47,503 | 48,104 | ||||||||||
Fully implemented common equity tier 1 capital ratio (a) | 9.0 | % | 9.1 | % | 9.0 | % | 9.1 | % (b) | 9.4 | % (b) | |||||
Tier 1 capital ratio | 10.6 | 10.5 | 10.4 | 10.8 | 11.1 | ||||||||||
Total risk-based capital ratio | 12.6 | 12.6 | 12.5 | 12.9 | 13.2 | ||||||||||
Leverage ratio | 9.0 | 8.9 | 8.8 | 8.9 | 9.1 | ||||||||||
Basel III Advanced Approaches (a) | |||||||||||||||
Fully implemented common equity tier 1 capital ratio (a) | 11.8 | 11.6 | 11.5 | 11.6 | (b) | 11.8 | (b) | ||||||||
Tangible common equity to tangible assets (b) | 7.7 | 7.8 | 7.7 | 7.6 | 7.7 | ||||||||||
Tangible common equity to risk-weighted assets (b) | 9.3 | 9.3 | 9.3 | 9.4 | 9.5 | ||||||||||
Common equity tier 1 capital ratio calculated under the transitional standardized approach (a) |
-- | -- | -- | 9.3 | 9.6 | ||||||||||
Common equity tier 1 capital ratio calculated under the transitional advanced approaches (a) |
-- | -- | -- | 12.0 | 12.1 | ||||||||||
(a) Beginning January 1, 2018, the regulatory capital requirements fully reflect implementation of Basel III. Prior to 2018, the Company's capital ratios reflected certain transitional adjustments. 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. |
|||||||||||||||
(b) See Non-GAAP Financial Measures reconciliation on page 16 | |||||||||||||||
All regulatory ratios continue to be in excess of “well-capitalized”
requirements. The common equity tier 1 capital to risk-weighted assets
ratio using the Basel III standardized approach was 9.0 percent at
Investor Conference Call
On
About
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
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
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
- Return on tangible common equity
These capital measures are viewed by management as useful additional methods of evaluating the Company’s utilization of its capital held and the level of capital available to withstand unexpected negative market or economic conditions. Additionally, presentation of these measures allows investors, analysts and banking regulators to assess the Company’s capital position relative to other financial services companies. These capital measures are not defined in generally accepted accounting principles (“GAAP”), or are not defined in banking regulations. As a result, these capital measures disclosed by the Company may be considered non-GAAP financial measures. In addition, certain capital measures related to prior periods are presented on the same basis as those capital measures in the current period. The effective capital ratios defined by banking regulations for these periods were subject to certain transitional provisions. Management believes this information helps investors assess trends in the Company’s capital adequacy.
The Company also discloses net interest income and related ratios and analysis on a taxable-equivalent basis, which may also be considered non-GAAP financial measures. The Company believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures, including the efficiency ratio 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.
CONSOLIDATED STATEMENT OF INCOME | ||||||||||||
(Dollars and Shares in Millions, Except Per Share Data) |
Three Months Ended |
Nine Months Ended |
||||||||||
(Unaudited) | 2018 | 2017 | 2018 | 2017 | ||||||||
Interest Income | ||||||||||||
Loans | $3,353 | $3,049 | $9,645 | $8,728 | ||||||||
Loans held for sale | 36 | 40 | 108 | 104 | ||||||||
Investment securities | 661 | 568 | 1,927 | 1,653 | ||||||||
Other interest income | 73 | 47 | 182 | 131 | ||||||||
Total interest income | 4,123 | 3,704 | 11,862 | 10,616 | ||||||||
Interest Expense | ||||||||||||
Deposits | 491 | 293 | 1,263 | 730 | ||||||||
Short-term borrowings | 104 | 39 | 265 | 96 | ||||||||
Long-term debt | 277 | 196 | 718 | 585 | ||||||||
Total interest expense | 872 | 528 | 2,246 | 1,411 | ||||||||
Net interest income | 3,251 | 3,176 | 9,616 | 9,205 | ||||||||
Provision for credit losses | 343 | 360 | 1,011 | 1,055 | ||||||||
Net interest income after provision for credit losses | 2,908 | 2,816 | 8,605 | 8,150 | ||||||||
Noninterest Income | ||||||||||||
Credit and debit card revenue | 344 | 318 | 1,019 | 947 | ||||||||
Corporate payment products revenue | 169 | 150 | 481 | 427 | ||||||||
Merchant processing services | 392 | 377 | 1,142 | 1,112 | ||||||||
ATM processing services | 85 | 77 | 254 | 223 | ||||||||
Trust and investment management fees | 411 | 380 | 1,210 | 1,128 | ||||||||
Deposit service charges | 198 | 187 | 563 | 538 | ||||||||
Treasury management fees | 146 | 153 | 451 | 466 | ||||||||
Commercial products revenue | 216 | 240 | 670 | 730 | ||||||||
Mortgage banking revenue | 174 | 213 | 549 | 632 | ||||||||
Investment products fees | 47 | 42 | 140 | 128 | ||||||||
Securities gains (losses), net | 10 | 9 | 25 | 47 | ||||||||
Other | 226 | 194 | 600 | 569 | ||||||||
Total noninterest income | 2,418 | 2,340 | 7,104 | 6,947 | ||||||||
Noninterest Expense | ||||||||||||
Compensation | 1,529 | 1,440 | 4,594 | 4,247 | ||||||||
Employee benefits | 294 | 268 | 923 | 843 | ||||||||
Net occupancy and equipment | 270 | 258 | 797 | 760 | ||||||||
Professional services | 96 | 104 | 274 | 305 | ||||||||
Marketing and business development | 106 | 92 | 314 | 291 | ||||||||
Technology and communications | 247 | 227 | 724 | 667 | ||||||||
Postage, printing and supplies | 84 | 82 | 244 | 244 | ||||||||
Other intangibles | 41 | 44 | 120 | 131 | ||||||||
Other | 377 | 483 | 1,194 | 1,403 | ||||||||
Total noninterest expense | 3,044 | 2,998 | 9,184 | 8,891 | ||||||||
Income before income taxes | 2,282 | 2,158 | 6,525 | 6,206 | ||||||||
Applicable income taxes | 460 | 589 | 1,263 | 1,639 | ||||||||
Net income | 1,822 | 1,569 | 5,262 | 4,567 | ||||||||
Net (income) loss attributable to noncontrolling interests | (7 | ) | (6 | ) | (22 | ) | (31 | ) | ||||
Net income attributable to U.S. Bancorp | $1,815 | $1,563 | $5,240 | $4,536 | ||||||||
Net income applicable to U.S. Bancorp common shareholders | $1,732 | $1,485 | $5,007 | $4,302 | ||||||||
Earnings per common share | $1.06 | $.89 | $3.05 | $2.56 | ||||||||
Diluted earnings per common share | $1.06 | $.88 | $3.04 | $2.55 | ||||||||
Dividends declared per common share | $.37 | $.30 | $.97 | $.86 | ||||||||
Average common shares outstanding | 1,629 | 1,672 | 1,641 | 1,683 | ||||||||
Average diluted common shares outstanding | 1,633 | 1,678 | 1,645 | 1,689 | ||||||||
CONSOLIDATED ENDING BALANCE SHEET | |||||||||
(Dollars in Millions) | September 30, | December 31, | September 30, | ||||||
2018 | 2017 | 2017 | |||||||
Assets | (Unaudited) | (Unaudited) | |||||||
Cash and due from banks | $20,082 | $19,505 | $20,540 | ||||||
Investment securities | |||||||||
Held-to-maturity | 46,046 | 44,362 | 44,018 | ||||||
Available-for-sale | 64,912 | 68,137 | 67,772 | ||||||
Loans held for sale | 4,533 | 3,554 | 3,757 | ||||||
Loans | |||||||||
Commercial | 99,273 | 97,561 | 96,928 | ||||||
Commercial real estate | 39,966 | 40,463 | 41,430 | ||||||
Residential mortgages | 62,904 | 59,783 | 59,317 | ||||||
Credit card | 21,869 | 22,180 | 20,923 | ||||||
Other retail | 56,049 | 57,324 | 56,859 | ||||||
Total loans, excluding covered loans | 280,061 | 277,311 | 275,457 | ||||||
Covered loans | 1,400 | 3,121 | 3,262 | ||||||
Total loans | 281,461 | 280,432 | 278,719 | ||||||
Less allowance for loan losses | (3,954 | ) | (3,925 | ) | (3,908 | ) | |||
Net loans | 277,507 | 276,507 | 274,811 | ||||||
Premises and equipment | 2,438 | 2,432 | 2,402 | ||||||
Goodwill | 9,530 | 9,434 | 9,370 | ||||||
Other intangible assets | 3,544 | 3,228 | 3,193 | ||||||
Other assets | 36,015 | 34,881 | 33,364 | ||||||
Total assets | $464,607 | $462,040 | $459,227 | ||||||
Liabilities and Shareholders' Equity | |||||||||
Deposits | |||||||||
Noninterest-bearing | $77,146 | $87,557 | $82,152 | ||||||
Interest-bearing | 254,032 | 259,658 | 260,437 | ||||||
Total deposits | 331,178 | 347,215 | 342,589 | ||||||
Short-term borrowings | 23,868 | 16,651 | 15,856 | ||||||
Long-term debt | 40,894 | 32,259 | 34,515 | ||||||
Other liabilities | 17,660 | 16,249 | 16,916 | ||||||
Total liabilities | 413,600 | 412,374 | 409,876 | ||||||
Shareholders' equity | |||||||||
Preferred stock | 5,984 | 5,419 | 5,419 | ||||||
Common stock | 21 | 21 | 21 | ||||||
Capital surplus | 8,479 | 8,464 | 8,457 | ||||||
Retained earnings | 57,878 | 54,142 | 53,023 | ||||||
Less treasury stock | (19,414 | ) | (17,602 | ) | (16,978 | ) | |||
Accumulated other comprehensive income (loss) | (2,573 | ) | (1,404 | ) | (1,219 | ) | |||
Total U.S. Bancorp shareholders' equity | 50,375 | 49,040 | 48,723 | ||||||
Noncontrolling interests | 632 | 626 | 628 | ||||||
Total equity | 51,007 | 49,666 | 49,351 | ||||||
Total liabilities and equity | $464,607 | $462,040 | $459,227 | ||||||
NON-GAAP FINANCIAL MEASURES | |||||||||||||||
(Dollars in Millions, Unaudited) |
|
|
|
|
|
||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
|||||||||||
Total equity | $51,007 | $50,257 | $49,812 | $49,666 | $49,351 | ||||||||||
Preferred stock | (5,984 | ) | (5,419 | ) | (5,419 | ) |
(5,419 |
) |
(5,419 | ) | |||||
Noncontrolling interests | (632 | ) | (629 | ) | (625 | ) | (626 | ) | (628 | ) | |||||
Goodwill (net of deferred tax liability) (1) | (8,682 | ) | (8,585 | ) | (8,609 | ) | (8,613 | ) | (8,141 | ) | |||||
Intangible assets, other than mortgage servicing rights | (627 | ) | (571 | ) | (608 | ) | (583 | ) | (595 | ) | |||||
Tangible common equity (a) | 35,082 | 35,053 | 34,551 | 34,425 | 34,568 | ||||||||||
Total assets | 464,607 | 461,329 | 460,119 | 462,040 | 459,227 | ||||||||||
Goodwill (net of deferred tax liability) (1) | (8,682 | ) | (8,585 | ) | (8,609 | ) | (8,613 | ) | (8,141 | ) | |||||
Intangible assets, other than mortgage servicing rights | (627 | ) | (571 | ) | (608 | ) | (583 | ) | (595 | ) | |||||
Tangible assets (b) | 455,298 | 452,173 | 450,902 | 452,844 | 450,491 | ||||||||||
Risk-weighted assets, determined in accordance with the Basel III standardized approach (c) |
377,713 |
* |
375,466 | 373,141 | 367,771 | 363,957 | |||||||||
Tangible common equity (as calculated above) | 34,425 | 34,568 | |||||||||||||
Adjustments (2) | (550 | ) | (52 | ) | |||||||||||
Common equity tier 1 capital estimated for the Basel III fully implemented standardized and advanced approaches (d) |
33,875 | 34,516 | |||||||||||||
Risk-weighted assets, determined in accordance with prescribed transitional standardized approach regulatory requirements |
367,771 | 363,957 | |||||||||||||
Adjustments (3) | 4,473 | 3,907 | |||||||||||||
Risk-weighted assets estimated for the Basel III fully implemented standardized approach (e) |
372,244 | 367,864 | |||||||||||||
|
|||||||||||||||
Risk-weighted assets, determined in accordance with prescribed transitional advanced approaches regulatory requirements |
287,211 | 287,800 | |||||||||||||
Adjustments (4) | 4,769 | 4,164 | |||||||||||||
Risk-weighted assets estimated for the Basel III fully implemented advanced approaches (f) |
291,980 | 291,964 | |||||||||||||
Ratios * | |||||||||||||||
Tangible common equity to tangible assets (a)/(b) | 7.7 | % | 7.8 | % | 7.7 | % | 7.6 | % | 7.7 | % | |||||
Tangible common equity to risk-weighted assets (a)/(c) | 9.3 |
9.3 |
9.3 | 9.4 | 9.5 | ||||||||||
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach (d)/(e) |
9.1 | 9.4 | |||||||||||||
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches (d)/(f) |
11.6 | 11.8 | |||||||||||||
Three Months Ended | |||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | |||||||||||
Net income applicable to U.S. Bancorp common shareholders | $1,732 | $1,678 | $1,597 | $1,611 | $1,485 | ||||||||||
Intangibles amortization (net-of-tax) | 32 | 32 | 31 | 28 | 29 | ||||||||||
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization |
1,764 | 1,710 | 1,628 | 1,639 | 1,514 | ||||||||||
Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization (g) |
6,998 |
6,859 | 6,602 | 6,503 | 6,007 | ||||||||||
Average total equity | 50,768 | 49,950 | 49,450 | 49,461 | 49,447 | ||||||||||
Less: Average preferred stock | 5,714 | 5,419 | 5,419 | 5,419 | 5,419 | ||||||||||
Less: Average noncontrolling interests | 630 | 628 | 625 | 627 | 628 | ||||||||||
Less: Average goodwill (net of deferred tax liability) (1) | 8,620 | 8,602 | 8,627 | 8,154 | 8,153 | ||||||||||
Less: Average intangible assets, other than mortgage servicing rights | 584 | 588 | 603 | 591 | 615 | ||||||||||
Average U.S. Bancorp common shareholders' equity, excluding intangible assets (h) |
35,220 | 34,713 | 34,176 | 34,670 | 34,632 | ||||||||||
Return on tangible common equity (g)/(h) | 19.9 | % | 19.8 | % | 19.3 | % | 18.8 | % | 17.3 | % | |||||
*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. | |||||||||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(Dollars in Millions, Unaudited) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
September 30, |
||||||||||||||||
Net interest income | $3,251 | $3,197 | $3,168 | $3,175 | $3,176 | $9,616 | $9,205 | ||||||||||||||||
Taxable-equivalent adjustment (1) | 30 | 29 | 29 | 53 | 51 | 88 | 152 | ||||||||||||||||
Net interest income, on a taxable-equivalent basis | 3,281 | 3,226 | 3,197 | 3,228 | 3,227 | 9,704 | 9,357 | ||||||||||||||||
Net interest income, on a taxable-equivalent basis (as calculated above) | 3,281 | 3,226 | 3,197 | 3,228 | 3,227 | 9,704 | 9,357 | ||||||||||||||||
Noninterest income | 2,418 | 2,414 | 2,272 | 2,370 | 2,340 | 7,104 | 6,947 | ||||||||||||||||
Less: Securities gains (losses), net | 10 | 10 | 5 | 10 | 9 | 25 | 47 | ||||||||||||||||
Total net revenue, excluding net securities gains (losses) (a) | 5,689 | 5,630 | 5,464 | 5,588 | 5,558 | 16,783 | 16,257 | ||||||||||||||||
Noninterest expense (b) | 3,044 | 3,085 | 3,055 | 3,899 | 2,998 | 9,184 | 8,891 | ||||||||||||||||
Less: Intangible amortization | 41 | 40 | 39 | 44 | 44 | 120 | 131 | ||||||||||||||||
Noninterest expense, excluding intangible amortization (c) | 3,003 | 3,045 | 3,016 | 3,855 | 2,954 | 9,064 | 8,760 | ||||||||||||||||
Efficiency ratio (b)/(a) | 53.5 | % | 54.8 | % | 55.9 | % | 69.8 | % | 53.9 | % | 54.7 | % | 54.7 | % | |||||||||
Tangible efficiency ratio (c)/(a) | 52.8 | 54.1 | 55.2 | 69.0 | 53.1 | 54.0 | 53.9 | ||||||||||||||||
(1) Interest and rates are presented on a fully taxable-equivalent basis based on a federal income tax rate of 21 percent for 2018 and 35 percent for 2017. |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20181017005087/en/
Source:
U.S. Bancorp
Investor contact:
Jennifer Thompson, 612-303-0778
or
Media
contact:
Stacey Wempen, 612-303-7620