U.S. Bancorp Reports Fourth Quarter And Full Year 2012 Earnings

Commercial and commercial real estate loan net charge-offs decreased to $69 million (.27 percent of average loans outstanding) in the fourth quarter of 2012, compared with $91 million (.37 percent of average loans outstanding) in the third quarter of 2012, and $156 million (.68 percent of average loans outstanding) in the fourth quarter of 2011.

Residential mortgage loan net charge-offs were $96 million (.88 percent of average loans outstanding) in the fourth quarter of 2012, compared with $121 million (1.17 percent of average loans outstanding) in the third quarter of 2012, and $119 million (1.30 percent of average loans outstanding) in the fourth quarter of 2011. Credit card loan net charge-offs were $161 million (3.86 percent of average loans outstanding) in the fourth quarter of 2012, compared with $167 million (4.01 percent of average loans outstanding) in the third quarter of 2012, and $193 million (4.71 percent of average loans outstanding) in the fourth quarter of 2011. Total other retail loan net charge-offs were $135 million (1.12 percent of average loans outstanding) in the fourth quarter of 2012, compared with $157 million (1.30 percent of average loans outstanding) in the third quarter of 2012, and $152 million (1.25 percent of average loans outstanding) in the fourth quarter of 2011.

The ratio of the allowance for credit losses to period-end loans was 2.12 percent (2.15 percent excluding covered loans) at December 31, 2012, compared with 2.19 percent (2.26 percent excluding covered loans) at September 30, 2012, and 2.39 percent (2.52 percent excluding covered loans) at December 31, 2011. The ratio of the allowance for credit losses to nonperforming loans was 228 percent (269 percent excluding covered loans) at December 31, 2012, compared with 202 percent (244 percent excluding covered loans) at September 30, 2012, and 163 percent (228 percent excluding covered loans) at December 31, 2011.

CREDIT RATIOS										Table 9
(Percent)		4Q		3Q		2Q		1Q		4Q
		2012		2012		2012		2012		2011
Net charge-offs ratios (a)
Commercial		.32		.41		.41		.61		.41
Lease financing		.37		.50		1.07		.55		1.43
Total commercial		.32		.42		.48		.61		.52
Commercial mortgages		.16		.26		.62		.47		.50
Construction and development		.33		.33		.41		2.38		2.91
Total commercial real estate		.18		.27		.58		.79		.93
Residential mortgages		.88		1.17		1.12		1.19		1.30
Credit card (b)		3.86		4.01		4.10		4.05		4.71
Retail leasing		.07		--		--		.08		--
Home equity and second mortgages		1.76		2.04		1.44		1.66		1.67
Other		.92		1.06		.86		.92		1.19
Total other retail		1.12		1.30		.98		1.11		1.25
Total net charge-offs, excluding covered loans		.88		1.04		1.04		1.17		1.28
Covered loans		.24		.06		--		.03		.05
Total net charge-offs		.85		.99		.98		1.09		1.19
Delinquent loan ratios - 90 days or more past due excluding nonperforming loans (c)
Commercial		.09		.06		.07		.08		.08
Commercial real estate		.02		.03		.03		.04		.04
Residential mortgages		.64		.72		.80		.79		.98
Credit card		1.27		1.18		1.17		1.33		1.36
Other retail		.20		.20		.19		.34		.38
Total loans, excluding covered loans		.31		.31		.33		.38		.43
Covered loans		5.86		5.61		4.96		5.23		6.15
Total loans		.59		.61		.61		.70		.84
Delinquent loan ratios - 90 days or more past due including nonperforming loans (c)
Commercial		.27		.31		.38		.61		.63
Commercial real estate		1.50		1.75		1.92		2.15		2.55
Residential mortgages		2.14		2.52		2.46		2.58		2.73
Credit card		2.12		2.18		2.29		2.58		2.65
Other retail		.66		.64		.57		.48		.52
Total loans, excluding covered loans		1.11		1.24		1.27		1.40		1.54
Covered loans		9.28		9.30		9.30		10.86		12.42
Total loans		1.52		1.69		1.76		2.04		2.30
(a) Annualized and calculated on average loan balances
(b) Net charge-offs as a percent of average loans outstanding, excluding portfolio     purchases where the acquired loans were recorded at fair value at the purchase     date were 4.00 percent for the fourth quarter of 2012, 4.17 percent for the third     quarter of 2012, 4.25 percent for the second quarter of 2012, 4.21 percent for the     first quarter of 2012 and 4.88 percent for the fourth quarter of 2011.
(c) Ratios are expressed as a percent of ending loan balances.

ASSET QUALITY										Table 10
($ in millions)
		Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
		2012		2012		2012		2012		2011
Nonperforming loans
Commercial		$107		$133		$172		$280		$280
Lease financing		16		19		23		31		32
Total commercial		123		152		195		311		312
Commercial mortgages		308		392		376		380		354
Construction and development		238		239		314		379		545
Total commercial real estate		546		631		690		759		899
Residential mortgages		661		757		660		686		650
Credit card		146		163		189		207		224
Other retail		217		210		182		65		67
Total nonperforming loans, excluding covered loans		1,693		1,913		1,916		2,028		2,152
Covered loans		386		449		570		798		926
Total nonperforming loans		2,079		2,362		2,486		2,826		3,078
Other real estate (a)		381		259		324		377		404
Covered other real estate (a)		197		198		203		233		274
Other nonperforming assets		14		16		16		18		18
Total nonperforming assets (b)		$2,671		$2,835		$3,029		$3,454		$3,774
Total nonperforming assets, excluding covered assets		$2,088		$2,188		$2,256		$2,423		$2,574
Accruing loans 90 days or more
past due, excluding covered loans		$660		$644		$663		$750		$843
Accruing loans 90 days or more past due		$1,323		$1,326		$1,315		$1,492		$1,753
Performing restructured loans, excluding GNMA
and covered loans		$3,421		$3,387		$3,310		$3,380		$3,365
Performing restructured GNMA and covered loans		$2,159		$2,002		$1,727		$1,675		$1,509
Nonperforming assets to loans
plus ORE, excluding covered assets (%)		.98		1.06		1.11		1.22		1.32
Nonperforming assets to loans
plus ORE (%)		1.19		1.30		1.40		1.63		1.79
(a) Includes equity investments in entities whose only asset is other real estate owned.
(b) Does not include accruing loans 90 days or more past due or restructured loans that continue to accrue interest.

Nonperforming assets at December 31, 2012, totaled $2,671 million, compared with $2,835 million at September 30, 2012, and $3,774 million at December 31, 2011. Total nonperforming assets at December 31, 2012, included $583 million of covered assets. The ratio of nonperforming assets to loans and other real estate was 1.19 percent (.98 percent excluding covered assets) at December 31, 2012, compared with 1.30 percent (1.06 percent excluding covered assets) at September 30, 2012, and 1.79 percent (1.32 percent excluding covered assets) at December 31, 2011. The decrease in nonperforming assets, excluding covered assets, compared with a year ago was driven primarily by reductions in the construction and development portfolio, as well as by improvement in commercial mortgages and other commercial loan portfolios, partially offset by an increase in nonperforming other retail loans, primarily due to a policy change for junior lien lines and loans in the second quarter. In addition, residential mortgage and other retail loan portfolios were impacted by the third quarter regulatory clarification in the treatment of consumer borrowers who have had debt discharged through bankruptcy but continue to make payments on their loans. Other real estate owned increased in the current quarter, reflecting a change by the Company to include in this category, residential real estate-related loans for which the borrower had vacated the property, but foreclosure had not yet occurred. Substantially all of these loans were reported as nonperforming at the time they were reclassified to other real estate owned.

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