2017 Annual Report

Performance

Review our Financial Highlights and Financial Summary below.

Financial Highlights

Net Income Attributable
to U.S. Bancorp (in millions)

17
$6,218
16
$5,888
15
$5,879
14
$5,851
13
$5,836

Diluted Earnings per Common Share

17
$3.51
16
$3.24
15
$3.16
14
$3.08
13
$3.00

Dividends Declared per Common Share

17
$1.160
16
$1.070
15
$1.010
14
$0.965
13
$0.885

Return on Average Assets

17
1.39%
16
1.36%
15
1.44%
14
1.54%
13
1.65%

Return on Average Common Equity

17
13.8%
16
13.4%
15
14.0%
14
14.7%
13
15.8%

Dividend Payout Ratio

17
32.9%
16
32.9%
15
31.8%
14
31.1%
13
29.3%

Net Interest Margin (a)

17
3.06%
16
3.01%
15
3.05%
14
3.23%
13
3.44%

Efficiency Ratio (b)

17
58.8%
16
54.9%
15
53.8%
14
53.2%
13
52.4%

Common Equity Tier 1 Capital (c)

17
9.3%
16
9.4%
15
9.6%
14
9.7%
13
9.4%

Average Assets (in millions)

17
$448,582
16
$433,313
15
$408,865
14
$380,004
13
$352,680

Average U.S. Bancorp Shareholders' Equity
(in millions)

17
$48,466
16
$47,339
15
$44,813
14
$42,837
13
$39,917

Total Risk-Based Capital (c)

17
12.9%
16
13.2%
15
13.3%
14
13.6%
13
13.2%

(a) Taxable-equivalent basis, utilizing a tax rate of 35 percent, for the periods presented, for those assets and liabilities whose income or expense is not included for federal income tax purposes.

(b) See Non-GAAP Financial Measures beginning on page 66.

(c) December 31, 2017, 2016, 2015 and 2014, calculated under the Basel III transitional standardized approach; December 31, 2013, calculated under Basel I.

Financial Summary

Year Ended December 31
(Dollars and Shares in Millions, Except Per Share Data)
2017 2016 2017
v 2016
Net interest income $12,241 $11,528 6.2%
Taxable-equivalent adjustment (a) 205 203 1.0
Net interest income (taxable-equivalent basis) (b) 12,446 11,731 6.1
Noninterest income 9,611 9,577 .4
Total net revenue 22,057 21,308 3.5
Noninterest expense 12,945 11,676 10.9
Provision for credit losses 1,390 1,324 5.0
Income taxes and taxable-equivalent adjustment 1,469 2,364 (37.9)
Net income 6,253 5,944 5.2
Net (income) loss attributable to noncontrolling interests (35) (56) 37.5
Net income attributable to U.S. Bancorp $6,218 $5,888 5.6
Net income applicable to U.S. Bancorp common shareholders $5,913 $5,589 5.8
Per Common Share
Per Common Share 2017 2016 2017
v 2016
Earnings per share $3.53 $3.25 8.6%
Diluted earnings per share 3.51 3.24 8.3
Dividends declared per share 1.16 1.07 8.4
Book value per share (c) 26.34 24.63 6.9
Market value per share 53.58 51.37 4.3
Average common shares outstanding 1,677 1,718 (2.4)
Average diluted common shares outstanding 1,683 1,724 (2.4)
Financial Ratios
Financial Ratios 2017 2016  
Return on average assets 1.39% 1.36%
Return on average common equity 13.8 13.4
Net interest margin (taxable-equivalent basis) (a) 3.06 3.01
Efficiency ratio (b) 58.8 54.9
Average Balances
Average Balances 2017 2016 2017
v 2016
Loans $276,537 $267,811 3.3%
Investment securities (d) 111,820 107,922 3.6
Earning assets 406,421 389,877 4.2
Assets 448,582 433,313 3.5
Deposits 333,514 312,810 6.6
Total U.S. Bancorp shareholders' equity 48,466 47,339 2.4
Period End Balances
Period End Balances 2017 2016 2017
v 2016
Loans $280,432 $273,207 2.6%
Allowance for credit losses 4,417 4,357 1.4
Investment securities 112,499 109,275 3.0
Assets 462,040 445,964 3.6
Deposits 347,215 334,590 3.8
Total U.S. Bancorp shareholders' equity 49,040 47,298 3.7
Capital Ratios
Capital Ratios 2017 2016  
Basel III transitional standardized approach:
Common equity tier 1 capital 9.3% 9.4%
Tier 1 capital 10.8 11.0
Total risk-based capital 12.9 13.2
Leverage 8.9 9.0
Common equity tier 1 capital to risk-weighted assets for the Basel III transitional advanced approaches 12.0 12.2
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach (b) 9.1 9.1
Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented advanced approaches (b) 11.6 11.7
Tangible common equity to tangible assets (b) 7.6 7.5
Tangible common equity to risk-weighted assets (b) 9.4 9.2

(a) Utilizes a tax rate of 35 percent, for the periods presented, for those assets and liabilities whose income or expense is not included for federal income tax purposes.

(b) See Non-GAAP Financial Measures beginning on page 66.

(c) Calculated as U.S. Bancorp common shareholders’ equity divided by common shares outstanding at end of the period.

(d) Excludes unrealized gains and losses on available-for-sale investment securities and any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity.