“We are very pleased to receive the Federal Reserve’s non-objection to our plan to increase our dividends and authorize a new share repurchase program,” said Richard K. Davis, chairman, president, and chief executive officer of U.S. Bancorp. “Our Company’s ability to generate capital, even under extraordinarily adverse economic conditions, is well proven by the results of this year’s CCAR. Given these results, we expect to recommend an 18 percent increase to the dividend rate in June, as we align our yearly dividend increases with the annual CCAR process going forward. Our goal is to return 60 to 80 percent of our earnings each year to shareholders through dividends and share buybacks, and our planned capital actions will allow us to, once again, achieve that goal in 2013.”The board of directors has also declared the following:
- A regular quarterly dividend of $875.00 per share (equivalent to $8.75000 per depositary share) on U.S. Bancorp's Series A Non-Cumulative Perpetual Preferred Stock, payable April 15, 2013, to stockholders of record at the close of business on March 28, 2013.
- A regular quarterly dividend of $218.75 per share (equivalent to $0.21875 per depositary share) on U.S. Bancorp's Series B Non-Cumulative Perpetual Preferred Stock, payable April 15, 2013, to stockholders of record at the close of business on March 28, 2013.
- A regular quarterly dividend of $492.19 per share (equivalent to $0.49219 per depositary share) on U.S. Bancorp's Series D Non-Cumulative Perpetual Preferred Stock, payable April 15, 2013, to stockholders of record at the close of business on March 28, 2013.
- A regular quarterly dividend of $406.25 per share (equivalent to $0.40625 per depository share) on U.S. Bancorp’s Series F Non-Cumulative Perpetual Preferred Stock, payable April 15, 2013, to stockholders of record at the close of business on March 28, 2013.
- A regular quarterly dividend of $375.00 per share (equivalent to $0.37500 per depository share) on U.S. Bancorp’s Series G Non-Cumulative Perpetual Preferred Stock, payable April 15, 2013, to stockholders of record at the close of business on March 28, 2013.
Forward-Looking StatementsThe 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 made. The forward-looking statements contained in this press release include, among other things, anticipated future U.S. Bancorp capital distributions by stock repurchases and dividends. There can be no assurance that U.S. Bancorp will distribute this or any amount of capital to its shareholders in the future in the form of dividends or share repurchases. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. Global and domestic economies could fail to recover from the recent economic downturn or could experience another severe contraction, which 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. Continued stress in the commercial real estate markets, as well as a delay or failure of recovery in the residential real estate markets, could cause additional credit losses and deterioration in asset values. In addition, U.S. Bancorp’s business and financial performance is likely to be negatively impacted by recently enacted and future legislation and regulation. U.S. Bancorp’s results could also be adversely affected by deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in its investment securities portfolio; legal and regulatory developments; increased competition from both banks and non-banks; changes in customer behavior and preferences; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management’s ability to effectively manage credit risk, residual value risk, market risk, operational risk, interest rate risk, and liquidity 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, 2012, 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. Forward-looking statements speak only as of the date they are made, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.