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

Accruing loans 90 days or more past due were $1,323 million ($660 million excluding covered loans) at December 31, 2012, lower than the $1,326 million ($644 million excluding covered loans) at September 30, 2012, and the $1,753 million ($843 million excluding covered loans) at December 31, 2011. Although total accruing loans 90 days or more past due were lower, seasonality led to an increase in accruing credit card loans 90 days or more past due on a linked quarter basis. Performing restructured loans, excluding GNMA and covered loans, increased $34 million compared with September 30, 2012, and $56 million compared with December 31, 2011. The increase from a year ago included the impact of the second quarter of 2012 regulatory clarification for the treatment of consumer borrowers who have had debt discharged through bankruptcy but continue to make payments on their loans.

                                         
CAPITAL POSITION                                   Table 11    
($ in millions)   Dec 31     Sep 30     Jun 30     Mar 31     Dec 31  
2012       2012       2012       2012       2011
 
Total U.S. Bancorp shareholders' equity $38,998 $38,661 $37,792 $35,900 $33,978
Tier 1 capital 31,203 30,766 30,044 29,976 29,173
Total risk-based capital 37,780 37,559 36,429 36,431 36,067
 
Tier 1 capital ratio 10.8 % 10.9 % 10.7 % 10.9 % 10.8 %
Total risk-based capital ratio 13.1 13.3 13.0 13.3 13.3
Leverage ratio 9.2 9.2 9.1 9.2 9.1
Tangible common equity to tangible assets 7.2 7.2 6.9 6.9 6.6
Tangible common equity to risk-weighted assets 8.6 8.8 8.5 8.3 8.1
Tier 1 common equity to risk-weighted assets
using Basel I definition 9.0 9.0 8.8 8.7 8.6
Tier 1 common equity to risk-weighted assets
using Basel III proposals published prior to June 2012 -- -- -- 8.4 8.2
Tier 1 common equity to risk-weighted assets approximated
using proposed rules for the Basel III standardized
approach released June 2012 8.1 8.2 7.9 -- --
                                         
 

Total U.S. Bancorp shareholders’ equity was $39.0 billion at December 31, 2012, compared with $38.7 billion at September 30, 2012, and $34.0 billion at December 31, 2011. The Tier 1 capital ratio was 10.8 percent at December 31, 2012, compared with 10.9 percent at September 30, 2012, and 10.8 percent at December 31, 2011. The tangible common equity to tangible assets ratio was 7.2 percent at December 31, 2012, and at September 30, 2012, compared with 6.6 percent at December 31, 2011. The Tier 1 common equity to risk-weighted assets ratio was 9.0 percent at December 31, 2012, and at September 30, 2012, compared with 8.6 percent at December 31, 2011. All regulatory ratios continue to be in excess of “well-capitalized” requirements. Additionally, the Tier 1 common equity to risk-weighted assets ratio using proposed rules for the Basel III standardized approach released June 2012 was approximately 8.1 percent at December 31, 2012, compared with 8.2 percent at September 30, 2012. During the fourth quarter, the Company declared $366 million in common stock dividends and repurchased common stock totaling $413 million.

                     
COMMON SHARES                   Table 12
(Millions)   4Q   3Q   2Q   1Q   4Q
2012   2012   2012   2012   2011
 
Beginning shares outstanding 1,880 1,892 1,901 1,910 1,913
Shares issued for stock option and stock purchase
plans, acquisitions and other corporate purposes 2 5 4 7 3
Shares repurchased (13 )   (17 )   (13 )   (16 )   (6 )
Ending shares outstanding 1,869     1,880     1,892     1,901     1,910  
                               
 
                           
LINE OF BUSINESS FINANCIAL PERFORMANCE (a)                       Table 13  
($ in millions)                  
Net Income Attributable Net Income Attributable
to U.S. Bancorp Percent Change to U.S. Bancorp 4Q 2012
4Q 3Q 4Q 4Q12 vs 4Q12 vs Full Year Full Year Percent Earnings
Business Line   2012   2012   2011   3Q12   4Q11   2012   2011   Change   Composition  
Wholesale Banking and
Commercial Real Estate $319 $324 $275 (1.5 ) 16.0 $1,297 $1,055 22.9 23 %
Consumer and Small Business
Banking 269 326 257 (17.5 ) 4.7 1,334 780 71.0 19
Wealth Management and
Securities Services 41 43 41 (4.7 ) -- 171 180 (5.0 ) 3
Payment Services 318 375 320 (15.2 ) (.6 ) 1,261 1,321 (4.5 ) 22
Treasury and Corporate Support 473   406   457   16.5 3.5 1,584   1,536 3.1 33
 
Consolidated Company $1,420   $1,474   $1,350 (3.7 ) 5.2 $5,647   $4,872 15.9 100 %
 
(a) preliminary data
                                       
 

Lines of Business

The Company’s major lines of business are Wholesale Banking and Commercial Real Estate, Consumer and Small Business Banking, Wealth Management and Securities Services, Payment Services, and Treasury and Corporate Support. These operating segments are components of the Company about which financial information is prepared and is evaluated regularly by management in deciding how to allocate resources and assess performance. Noninterest expenses incurred by centrally managed operations or business lines that directly support another business line’s operations are charged to the applicable business line based on its utilization of those services, primarily measured by the volume of customer activities, number of employees or other relevant factors. These allocated expenses are reported as net shared services expense within noninterest expense. Designations, assignments and allocations change from time to time as management systems are enhanced, methods of evaluating performance or product lines change or business segments are realigned to better respond to the Company’s diverse customer base. During 2012, certain organization and methodology changes were made and, accordingly, prior period results were restated and presented on a comparable basis.

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