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

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

      Achieves Record Total Net Revenue and Earnings for Full Year 2012

Business Wire

MINNEAPOLIS -- January 16, 2013

U.S. Bancorp (NYSE: USB) today reported net income of $1,420 million for the
fourth quarter of 2012, or $.72 per diluted common share, and $5,647 million
of net income, or $2.84 per diluted common share, for full year 2012. Included
in the fourth quarter of 2012 results was a previously disclosed $80 million
expense accrual for a mortgage foreclosure-related regulatory settlement,
which reduced quarterly diluted earnings per common share by $.03.

Summary highlights for the full year of 2012 included:

  *Record full year 2012 net income of $5.6 billion, 15.9 percent higher than
    2011

       *Record full year diluted earnings per common share of $2.84, 15.4
         percent higher than 2011
       *Record full year total net revenue of $20.3 billion, 6.2 percent
         higher than 2011
       *Industry-leading performance measures, including return on average
         assets of 1.65 percent, return on average common equity of 16.2
         percent and efficiency ratio of 51.5 percent
       *Positive full year operating leverage

Highlights for the fourth quarter of 2012 included:

  *Strong new lending activity of $71.5 billion during the fourth quarter,
    including:

       *$39.8 billion of new and renewed commercial and commercial real
         estate commitments
       *$2.6 billion of lines related to new credit card accounts
       *$29.1 billion of mortgage and other retail loan originations

  *Growth in average total loans of 6.4 percent over the fourth quarter of
    2011 (8.6 percent excluding covered loans) and 1.5 percent on a linked
    quarter basis (6.0 percent annualized)

       *Growth in average total commercial loans of 15.7 percent over the
         fourth quarter of 2011 and 2.8 percent over the third quarter of 2012
       *Growth in average commercial and commercial real estate commitments
         of 15.6 percent year-over-year and 2.5 percent over the prior quarter

  *Significant growth in average deposits of 9.2 percent over the fourth
    quarter of 2011, including:

       *Growth in average noninterest-bearing deposits of 14.2 percent
         year-over-year and 6.6 percent over the third quarter
       *Growth in average total savings deposits of 6.6 percent
         year-over-year and 3.7 percent over the third quarter

  *Net interest income growth of 4.1 percent over the fourth quarter of 2011

       *Average earning assets growth of 5.8 percent year-over-year and 1.1
         percent on a linked quarter basis
       *Continued strong growth in lower cost core deposit funding on a
         year-over-year and linked quarter basis
       *Net interest margin of 3.55 percent for the fourth quarter of 2012,
         compared with 3.60 percent for the fourth quarter of 2011, and 3.59
         percent for the third quarter of 2012

  *Positive operating leverage and an improved efficiency ratio on a
    year-over-year basis
  *Net charge-offs declined on both a linked quarter and year-over-year
    basis. Provision for credit losses was $25 million less than net
    charge-offs

       *Net charge-offs were $70 million lower than the third quarter of
         2012; third quarter of 2012 included $54 million of incremental
         charge-offs due to a regulatory clarification
       *Annualized net charge-offs to average total loans ratio declined to
         .85 percent
       *Excluding covered loans, allowance to period-end loans was 2.15
         percent at year end

  *Nonperforming assets declined on both a linked quarter and year-over-year
    basis

       *Nonperforming assets (excluding covered assets) decreased 4.6 percent
         from the third quarter of 2012 (5.8 percent including covered assets)
       *Allowance to nonperforming assets (excluding covered assets) was 218
         percent at year end, compared with 213 percent at September 30, 2012,
         and 191 percent at December 31, 2011

  *Capital generation continues to reinforce capital position; ratios at
    December 31, 2012 were:

       *Tier 1 capital ratio of 10.8 percent
       *Total risk based capital ratio of 13.1 percent
       *Tier 1 common equity to risk-weighted assets ratio of 9.0 percent
       *Tier 1 common equity ratio of approximately 8.1 percent using
         proposed rules for the Basel III standardized approach released June
         2012

                                                                
EARNINGS                                                         Table 1
SUMMARY
($ in
millions,
except                                Percent  Percent                 
per-share
data)
                                          Change    Change
               4Q       3Q       4Q       4Q12 vs   4Q12 vs   Full     Full     Percent
                                                              Year     Year
               2012    2012    2011    3Q12     4Q11     2012    2011    Change
                                                                                
Net income
attributable   $1,420   $1,474   $1,350   (3.7  )   5.2       $5,647   $4,872   15.9
to U.S.
Bancorp
Diluted
earnings per   $.72     $.74     $.69     (2.7  )   4.3       $2.84    $2.46    15.4
common share
                                                                                
Return on
average        1.62     1.70     1.62                         1.65     1.53
assets (%)
Return on
average        15.6     16.5     16.8                         16.2     15.8
common
equity (%)
Net interest   3.55     3.59     3.60                         3.58     3.65
margin (%)
Efficiency     52.6     50.4     52.7                         51.5     51.8
ratio (%)
Tangible
efficiency     51.3     49.1     51.3                         50.2     50.2
ratio (%)
(a)
                                                                                
Dividends
declared per   $.195    $.195    $.125    --        56.0      $.780    $.500    56.0
common share
Book value
per common     $18.31   $18.03   $16.43   1.6       11.4
share
(period-end)
                                                                                
(a) Computed as noninterest expense divided by the sum of net interest income on a
taxable-equivalent basis and noninterest income
excluding net securities gains (losses) and intangible amortization.


Net income attributable to U.S. Bancorp was $1,420 million for the fourth
quarter of 2012, 5.2 percent higher than the $1,350 million for the fourth
quarter of 2011, but 3.7 percent lower than the $1,474 million for the third
quarter of 2012. Diluted earnings per common share of $.72 in the fourth
quarter of 2012 were $.03 higher than the fourth quarter of 2011 and $.02
lower than the previous quarter. Return on average assets and return on
average common equity were 1.62 percent and 15.6 percent, respectively, for
the fourth quarter of 2012, compared with 1.62 percent and 16.8 percent,
respectively, for the fourth quarter of 2011. During the fourth quarter of
2012, the Company recorded an $80 million expense accrual for a mortgage
foreclosure-related regulatory settlement, which reduced diluted earnings per
common share by $.03. Earnings in the fourth quarter of 2011 included a $263
million merchant settlement gain, partially offset by a $130 million accrual
related to mortgage servicing matters, which together increased diluted
earnings per common share for the fourth quarter of 2011 by $.05. The
provision for credit losses was $25 million lower than net charge-offs in the
fourth quarter of 2012, $50 million lower than net charge-offs in the third
quarter of 2012 and $125 million lower than net charge-offs in the fourth
quarter of 2011.

U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis
said, “2012 was a great year for our Company, as we achieved record annual
earnings of $5.6 billion, or $2.84 per diluted common share. Further, our 2012
full year results included record total net revenue of $20.3 billion,
representing growth in net interest income and fee revenues, as well as
controlled expenses. Additionally, we achieved  positive operating leverage
for both the year-over-year quarter and full year. Our returns on average
assets and average common equity for 2012 of 1.65 percent and 16.2 percent, as
well as our efficiency ratio of 51.5 percent, surpassed our performance in
2011 and remain industry-leading.

“As expected, total average loans grew in the fourth quarter over the prior
year and linked quarter by 6.4 percent and 1.5 percent, respectively. For the
full year 2012, our Company grew total average loans by 6.9 percent over the
prior year, accelerating growth over the 4.4 percent increase realized in full
year 2011. Total average deposits were also higher in the fourth quarter,
increasing by 9.2 percent over the same quarter of last year, while rising
10.6 percent on a full year basis over 2011. Growth in both of these
categories demonstrates our Company’s continuing ability to expand and deepen
relationships with our current customer base, as well as gain new customers
and market share. Our fee-based businesses also realized solid growth in 2012,
led by mortgage banking. With continued investments in growth initiatives and
small, strategic acquisitions, these businesses remain very well positioned to
continue to grow and leverage the slow, but steady, economic recovery.

“Credit quality continues to improve, as evidenced by the decline this quarter
in both net charge-offs and nonperforming assets. Our annualized net
charge-offs ratio of .85 percent for the fourth quarter of 2012 reflects the
high quality of our portfolio. Our customers – from individuals, to small
businesses, to large corporations – are healthy and productive, having
adjusted to the current slow growth, uncertain environment in which they
operate today, but they remain poised to take advantage of the recovery as it
emerges.

“Our capital position remains strong with a Tier 1 common ratio of 9.0 percent
and a Tier 1 capital ratio of 10.8 percent at December 31st. Our Tier 1 common
equity ratio, based on our assessment of the proposed rules for the Basel III
standardized approach, was 8.1 percent at December 31st, above our targeted
ratio of 8.0 percent. We continue to generate significant capital each
quarter, and we have set a target to return 60 to 80 percent of our earnings
to shareholders in the form of dividends and share buybacks. In 2012, we
achieved our target by returning a total of $3.4 billion of earnings to our
shareholders through dividends and the repurchase of approximately 59 million
shares of common stock. In early January, we completed and submitted our 2013
Comprehensive Capital Plan to the Federal Reserve, and we look forward to
receiving regulatory authority by March 31st to raise our dividend and
continue our stock buyback program in 2013.

“I am very proud of our current quarter and full year 2012 results, and I want
to take this opportunity to thank all of our employees for their
contributions, hard work and dedication to serving our customers. These
results and our success as a Company are directly tied to the talent, passion
and commitment our employees bring to their job everyday, as they work closely
with their fellow employees and customers, support their families and enrich
the communities in which they live through their volunteer activities.

“On July 13, 2013, U.S. Bank will celebrate its 150th anniversary. Our
institution operates under the national charter, signed in 1863, that
originally formed the First National Bank of Cincinnati. Since then, our
Company has expanded through organic growth and through numerous acquisitions.
We have managed through times of prosperity and through times of hardship. We
have focused our efforts externally on growth and development and, when
necessary, we have focused internally to right the course. Our past has shaped
our present and our future. We are a Company with a well diversified business
model, prudent risk management and an ability to produce consistent,
predictable, repeatable results. We are always mindful of the responsibility
we hold to help our customers achieve their financial goals, while supporting
and strengthening the communities, and this country, that we serve. We are,
once again, stronger and better than we were one year ago. We are focused on
the future and continuing to build momentum into 2013 and beyond – all for the
benefit of our customers, employees, communities and, importantly, our
shareholders.”

                                                                        
INCOME STATEMENT                                                         Table 2
HIGHLIGHTS
(Taxable-equivalent
basis, $ in                                   Percent  Percent                   
millions,
except per-share                                Change    Change
data)
                      4Q       3Q       4Q       4Q12 vs   4Q12 vs   Full      Full      Percent
                                                                     Year      Year
                      2012    2012    2011    3Q12     4Q11     2012     2011     Change
                                                                                         
Net interest income   $2,783   $2,783   $2,673   --        4.1       $10,969   $10,348   6.0
Noninterest income    2,329   2,396   2,431    (2.8  )   (4.2  )   9,319    8,760     6.4
Total net revenue     5,112    5,179    5,104    (1.3  )   .2        20,288    19,108    6.2
Noninterest expense   2,686   2,609   2,696    3.0       (.4   )   10,456   9,911     5.5
Income before         2,426    2,570    2,408    (5.6  )   .7        9,832     9,197     6.9
provision and taxes
Provision for         443     488     497      (9.2  )   (10.9 )   1,882    2,343     (19.7 )
credit losses
Income before taxes   1,983    2,082    1,911    (4.8  )   3.8       7,950     6,854     16.0
Taxable-equivalent    56       57       56       (1.8  )   --        224       225       (.4   )
adjustment
Applicable income     552     593     527      (6.9  )   4.7       2,236    1,841     21.5
taxes
Net income            1,375    1,432    1,328    (4.0  )   3.5       5,490     4,788     14.7
Net (income) loss
attributable to
noncontrolling        45      42      22       7.1       nm        157      84        86.9
interests
Net income
attributable to       $1,420  $1,474  $1,350   (3.7  )   5.2       $5,647   $4,872    15.9
U.S. Bancorp
Net income
applicable to U.S.
Bancorp
common shareholders   $1,349  $1,404  $1,314   (3.9  )   2.7       $5,383   $4,721    14.0
Diluted earnings      $.72    $.74    $.69     (2.7  )   4.3       $2.84    $2.46     15.4
per common share
                                                                        

Net income attributable to U.S. Bancorp for the fourth quarter of 2012 was $70
million (5.2 percent) higher than the fourth quarter of 2011, but $54 million
(3.7 percent) lower than the third quarter of 2012. The increase in net income
year-over-year was the result of an increase in total net revenue, driven by
higher net interest income, a decrease in noninterest expense and a decline in
the provision for credit losses. On a linked quarter basis, the decrease in
net income was driven by a decline in noninterest income and an increase in
noninterest expense, primarily due to the $80 million mortgage
foreclosure-related regulatory settlement accrual, partially offset by a
decrease in the provision for credit losses.

Total net revenue on a taxable-equivalent basis for the fourth quarter of 2012
was $5,112 million; $8 million (.2 percent) higher than the fourth quarter of
2011, reflecting a 4.1 percent increase in net interest income, largely offset
by a 4.2 percent decrease in noninterest income. The increase in net interest
income year-over-year was the result of higher average earning assets,
continued growth in lower cost core  deposit funding and the positive impact
from long-term debt repricing. Noninterest income decreased year-over-year,
primarily due to the $263 million merchant settlement gain recorded in the
fourth quarter of 2011, partially offset by higher mortgage banking revenue in
the current quarter. Total net revenue on a taxable-equivalent basis was $67
million (1.3 percent) lower on a linked quarter basis due to lower fee-based
revenue driven by a reduction in mortgage banking revenue and the net impact
of a third quarter of 2012 gain on sale of a credit card portfolio and a
charge related to an investment under the equity method of accounting.

Total noninterest expense in the fourth quarter of 2012 was $2,686 million;
$10 million (.4 percent) lower than the fourth quarter of 2011 and $77 million
(3.0 percent) higher than the third quarter of 2012. The decrease in total
noninterest expense year-over-year was primarily due to the accrual for
mortgage servicing related matters recorded in fourth quarter of 2011,
partially offset by the current quarter mortgage foreclosure-related
regulatory settlement accrual, as well as higher mortgage servicing
review-related professional services costs. Total noninterest expense on a
linked quarter basis was higher, primarily due to the accrual for the mortgage
foreclosure-related regulatory settlement and an increase in mortgage
servicing review-related professional services costs, partially offset by
lower compensation expense.

The Company’s provision for credit losses for the fourth quarter of 2012 was
$443 million, $45 million lower than the prior quarter and $54 million lower
than the fourth quarter of 2011. The third quarter of 2012 provision for
credit losses included $54 million in charge-offs related to a regulatory
clarification in the treatment of residential mortgage and other consumer
loans to borrowers who have had debt discharged through bankruptcy but
continue to make payments on their loans. The provision for credit losses was
lower than net charge-offs by $25 million in the fourth quarter of 2012, $50
million in the third quarter of 2012 and $125 million in the fourth quarter of
2011. Net charge-offs in the fourth quarter of 2012 were $468 million,
compared with $538 million in the third quarter of 2012, and $622 million in
the fourth quarter of 2011. Given current economic conditions, the Company
expects the level of net charge-offs to be relatively stable to down modestly
in the first quarter of 2013.

Nonperforming assets include assets originated or acquired by the Company, as
well as loans and other real estate acquired under FDIC loss sharing
agreements that substantially reduce the risk of credit losses to the Company
(“covered assets”). Excluding covered assets, nonperforming assets were $2,088
million at December 31, 2012, compared with $2,188 million at September 30,
2012, and $2,574 million at December 31, 2011. The declines were led by a
reduction in commercial and commercial real estate nonperforming assets.
Notably, commercial mortgage and construction and development nonperforming
assets declined by $353 million (39.3 percent) year-over-year and $85 million
(13.5 percent) on a linked quarter basis, as the Company continued to resolve
and reduce exposure to these problem assets. Other real estate owned increased
in the current quarter as a result of the Company including 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
reclassified from nonperforming loans to other real estate owned. Covered
nonperforming assets were $583 million at December 31, 2012, compared with
$647 million at September 30, 2012, and $1,200 million at December 31, 2011.
The ratio of the allowance for credit losses to period-end loans, excluding
covered loans, was 2.15 percent at December 31, 2012, compared with 2.26
percent at September 30, 2012, and 2.52 percent at December 31, 2011. The
ratio of the allowance for credit losses to period-end loans, including
covered loans, was 2.12 percent at December 31, 2012, compared with 2.19
percent at September 30, 2012, and 2.39 percent at December 31, 2011. The
Company expects total nonperforming assets to trend lower in the first quarter
of 2013.

                                                                                          
NET INTEREST INCOME                                                                        Table 3
(Taxable-equivalent
basis; $ in                                                                                      
millions)
                                                          Change      Change
                      4Q          3Q          4Q          4Q12 vs     4Q12 vs     Full Year   Full Year
                      2012       2012       2011       3Q12       4Q11       2012       2011       Change
Components of net
interest income
Income on earning     $3,254      $3,284      $3,278      $(30   )    $(24   )    $13,112     $12,870     $242
assets
Expense on
interest-bearing      471       501       605       (30    )   (134   )   2,143     2,522     (379   )
liabilities
Net interest income   $2,783    $2,783    $2,673    --        $110      $10,969   $10,348   $621   
                                                                                                          
Average yields and
rates paid
Earning assets        4.15    %   4.24    %   4.42    %   (.09   )%   (.27   )%   4.28    %   4.54    %   (.26   )%
yield
Rate paid on
interest-bearing      .84       .88       1.08      (.04   )   (.24   )   .95       1.14      (.19   )
liabilities
Gross interest        3.31    %  3.36    %  3.34    %  (.05   )%  (.03   )%  3.33    %  3.40    %  (.07   )%
margin
Net interest margin   3.55    %  3.59    %  3.60    %  (.04   )%  (.05   )%  3.58    %  3.65    %  (.07   )%
                                                                                                          
Average balances
Investment            $72,887     $72,454     $68,801     $433        $4,086      $72,501     $63,645     $8,856
securities (a)
Loans                 220,266     216,928     207,047     3,338       13,219      215,374     201,427     13,947
Earning assets        312,227     308,959     295,114     3,268       17,113      306,270     283,290     22,980
Interest-bearing      224,219     226,109     222,075     (1,890 )    2,144       225,466     221,690     3,776
liabilities
                                                                                                          
(a) Excludes
unrealized gain
(loss)
                                                                                          
                                                                                                          

Net Interest Income

Net interest income on a taxable-equivalent basis in the fourth quarter of
2012 was $2,783 million, an increase of $110 million (4.1 percent) over the
fourth quarter of 2011. The increase was principally the result of growth in
average earning assets and lower cost core deposit funding, as well as the
positive impact from long-term debt repricing. The year-over-year increase was
also impacted by a change in the classification of credit card balance
transfer fees from noninterest income to interest income beginning in the
first quarter of 2012. Average earning assets were $17.1 billion (5.8 percent)
higher than the fourth quarter of 2011, driven by increases of $13.2 billion
(6.4 percent) in average total loans and $4.1 billion (5.9 percent) in average
investment securities. Net interest income was flat on a linked quarter basis,
as growth in average earning assets, principally average total loans, was
offset by a 4 basis point decline in the net interest margin. The net interest
margin in the fourth quarter of 2012 was 3.55 percent, compared with 3.60
percent in the fourth quarter of 2011, and 3.59 percent in the third quarter
of 2012. The decline in the net interest margin year-over-year primarily
reflected higher balances in lower yielding investment securities and lower
loan rates, partially offset by lower rates on deposits and long-term debt and
a reduction in cash balances held at the Federal Reserve. On a linked quarter
basis, the net interest margin declined due to a reduction in the yield on the
investment securities portfolio and lower loan rates.

                                                                          
AVERAGE                                                                    Table 4
LOANS
($ in                                       Percent  Percent                     
millions)
                                                Change    Change
               4Q         3Q         4Q         4Q12 vs   4Q12 vs   Full       Full       Percent
                                                                    Year       Year
               2012      2012      2011      3Q12     4Q11     2012      2011      Change
                                                                                          
Commercial     $58,552    $56,655    $49,437    3.3       18.4      $55,232    $45,706    20.8
Lease          5,377     5,537     5,834      (2.9  )   (7.8  )   5,598     5,910      (5.3  )
financing
Total          63,929     62,192     55,271     2.8       15.7      60,830     51,616     17.9
commercial
                                                                                          
Commercial     30,762     30,686     29,403     .2        4.6       30,493     28,636     6.5
mortgages
Construction
and            6,089     5,944     6,399      2.4       (4.8  )   6,012     6,878      (12.6 )
development
Total
commercial     36,851     36,630     35,802     .6        2.9       36,505     35,514     2.8
real estate
                                                                                          
Residential    43,156     40,969     36,256     5.3       19.0      40,290     33,711     19.5
mortgages
                                                                                          
Credit card    16,588     16,551     16,271     .2        1.9       16,653     16,084     3.5
                                                                                          
Retail         5,384      5,256      5,150      2.4       4.5       5,222      4,928      6.0
leasing
Home equity
and second     16,950     17,329     18,281     (2.2  )   (7.3  )   17,451     18,555     (5.9  )
mortgages
Other          25,595    25,406    24,901     .7        2.8       25,265    24,716     2.2
Total other    47,929    47,991    48,332     (.1   )   (.8   )   47,938    48,199     (.5   )
retail
                                                                                          
Total loans,
excluding      208,453   204,333   191,932    2.0       8.6       202,216   185,124    9.2
covered
loans
                                                                                          
Covered        11,813    12,595    15,115     (6.2  )   (21.8 )   13,158    16,303     (19.3 )
loans
                                                                                          
Total loans    $220,266  $216,928  $207,047   1.5       6.4       $215,374  $201,427   6.9
                                                                          
                                                                                          

Average total loans were $13.2 billion (6.4 percent) higher in the fourth
quarter of 2012 than the fourth quarter of 2011, driven by growth in
residential mortgages (19.0 percent), commercial loans (18.4 percent),
commercial mortgages (4.6 percent), retail leasing (4.5 percent), other retail
loans (2.8 percent) and credit card loans (1.9 percent). These increases were
partially offset by declines in lease financing (7.8 percent), home equity and
second mortgages (7.3 percent), construction and development loans (4.8
percent) and covered loans (21.8 percent). Average total loans, excluding
covered loans, were higher by 8.6 percent year-over-year. Average total loans
were $3.3 billion (1.5 percent) higher in the fourth quarter of 2012 than the
third quarter of 2012, driven by increases in residential mortgages (5.3
percent), commercial loans (3.3 percent), retail leasing (2.4 percent) and
other retail loans (.7 percent), partially offset by decreases in lease
financing (2.9 percent), home equity and second mortgages (2.2 percent) and
covered loans (6.2 percent). Excluding covered loans, average total loans grew
by 2.0 percent on a linked quarter basis.

Average investment securities in the fourth quarter of 2012 were $4.1 billion
(5.9 percent) higher year-over-year and $.4 billion (.6 percent) higher than
the prior quarter. The increases were primarily due to purchases of U.S.
government agency-backed securities, net of prepayments and maturities.

                                                                                 
AVERAGE DEPOSITS                                                                  Table 5
($ in millions)                                    Percent  Percent                     
                                                       Change    Change
                      4Q         3Q         4Q         4Q12 vs   4Q12 vs   Full       Full       Percent
                                                                           Year       Year
                      2012      2012      2011      3Q12     4Q11     2012      2011      Change
                                                                                                 
Noninterest-bearing   $72,655    $68,127    $63,640    6.6       14.2      $67,241    $53,856    24.9
deposits
Interest-bearing
savings deposits
Interest checking     45,168     43,207     44,287     4.5       2.0       45,433     42,827     6.1
Money market          49,545     47,530     45,200     4.2       9.6       46,874     45,119     3.9
savings
Savings accounts      30,231    29,743    27,693     1.6       9.2       29,596    26,654     11.0
Total of savings      124,944    120,480    117,180    3.7       6.6       121,903    114,600    6.4
deposits
Time certificates
of deposit less
than $100,000         13,956     14,362     15,068     (2.8  )   (7.4  )   14,509     15,237     (4.8  )
Time deposits
greater than          32,292    36,312    27,430     (11.1 )   17.7      32,057    29,466     8.8
$100,000
Total
interest-bearing      171,192   171,154   159,678    --        7.2       168,469   159,303    5.8
deposits
Total deposits        $243,847  $239,281  $223,318   1.9       9.2       $235,710  $213,159   10.6
                                                                                 
                                                                                                 

Average total deposits for the fourth quarter of 2012 were $20.5 billion (9.2
percent) higher than the fourth quarter of 2011. Average noninterest-bearing
deposits increased $9.0 billion (14.2 percent) year-over-year, with growth in
average balances in a majority of the lines of business, including Wholesale
Banking and Commercial Real Estate, Wealth Management and Securities Services,
and Consumer and Small Business Banking. Average total savings deposits were
$7.8 billion (6.6 percent) higher year-over-year, the result of growth in
Consumer and Small Business Banking and corporate trust balances, partially
offset by lower government banking and broker-dealer average balances. Average
time certificates of deposit less than $100,000 were $1.1 billion (7.4
percent) lower, while time deposits greater than $100,000 were $4.9 billion
(17.7 percent) higher than the fourth quarter of 2011, principally in
Wholesale Banking and Commercial Real Estate. Time deposits greater than
$100,000 are managed as an alternative to other funding sources, such as
wholesale borrowing, based largely on relative pricing.

Average total deposits increased $4.6 billion (1.9 percent) over the third
quarter of 2012. Average noninterest-bearing deposits increased by $4.5
billion (6.6 percent) on a linked quarter basis, driven by growth in Consumer
and Small Business Banking, Wholesale Banking and Commercial Real Estate and
corporate trust balances. Average total savings deposits increased $4.5
billion (3.7 percent) over the third quarter of 2012 due to higher Consumer
and Small Business Banking, Wholesale Banking and Commercial Real Estate and
institutional and corporate trust balances. Compared with the third quarter of
2012, average time certificates of deposit less than $100,000 were lower by
$.4 billion (2.8 percent), while average time deposits greater than $100,000
decreased $4.0 billion (11.1 percent), primarily in Wholesale Banking and
Commercial Real Estate.

                                                                   
NONINTEREST                                                         Table 6
INCOME
($ in                                  Percent  Percent                     
millions)
                                           Change    Change
              4Q       3Q       4Q         4Q12 vs   4Q12 vs   Full       Full       Percent
                                                               Year       Year
              2012    2012    2011      3Q12     4Q11     2012      2011      Change
                                                                                     
Credit and
debit card    $242     $213     $231       13.6      4.8       $892       $1,073     (16.9 )
revenue
Corporate
payment       178      201      171        (11.4 )   4.1       744        734        1.4
products
revenue
Merchant
processing    354      345      378        2.6       (6.3  )   1,395      1,355      3.0
services
ATM
processing    83       87       111        (4.6  )   (25.2 )   346        452        (23.5 )
services
Trust and
investment    276      265      245        4.2       12.7      1,055      1,000      5.5
management
fees
Deposit
service       170      174      171        (2.3  )   (.6   )   653        659        (.9   )
charges
Treasury
management    130      135      133        (3.7  )   (2.3  )   541        551        (1.8  )
fees
Commercial
products      226      225      220        .4        2.7       878        841        4.4
revenue
Mortgage
banking       476      519      303        (8.3  )   57.1      1,937      986        96.5
revenue
Investment
products      39       38       31         2.6       25.8      150        129        16.3
fees and
commissions
Securities
gains         3        1        (9     )   nm        nm        (15    )   (31    )   51.6
(losses),
net
Other         152     193     446       (21.2 )   (65.9 )   743      1,011     (26.5 )
                                                                                     
Total
noninterest   $2,329  $2,396  $2,431    (2.8  )   (4.2  )   $9,319   $8,760    6.4
income
                                                                     
                                                                                           

Noninterest Income

Fourth quarter noninterest income was $2,329 million; $102 million (4.2
percent) lower than the fourth quarter of 2011 and $67 million (2.8 percent)
lower than the third quarter of 2012. The year-over-year decrease in
noninterest income was principally driven by a decline in other income due to
the merchant settlement gain, as well as a gain related to the Company’s
investment in Visa Inc. (NYSE: V) (“Visa gain”), together totaling $292
million, recorded in the fourth quarter of 2011. In addition, merchant
processing services revenue was $24 million (6.3 percent) lower year-over-year
due to lower rates and the reversal in the fourth quarter of 2011 of an
accrual for a terminated revenue sharing agreement, partially offset by higher
volumes, while ATM processing services revenue decreased $28 million (25.2
percent) due to classifying surcharge revenue passed through to others as a
reduction of revenue beginning in the first quarter of 2012, rather than as
occupancy expense as in previous periods. Offsetting these negative variances
was an $11 million (4.8 percent) increase in credit and debit card revenue,
principally driven by higher volumes, which was partially offset by the change
in the classification of credit card balance transfer fees from noninterest
income to interest income beginning in the first quarter of 2012. Corporate
payment products revenue was $7 million (4.1 percent) higher as a result of an
increase in volume and higher rates. Trust and investment management fees
increased $31 million (12.7 percent) year-over-year, reflecting improved
market conditions and business expansion. Commercial products revenue was $6
million (2.7 percent) higher than the fourth quarter of last year as higher
bond underwriting and commercial leasing revenue were partially offset by
lower syndication fees. The $173 million (57.1 percent) increase in mortgage
banking revenue over the same quarter of last year was principally due to
higher origination and sales revenue, as well as an increase in loan servicing
revenue. Investment products fees and commissions increased $8 million (25.8
percent), compared with the prior year driven by higher sales volumes. In
addition, there was a $12 million favorable variance in net securities gains
(losses).

Noninterest income was $67 million (2.8 percent) lower in the fourth quarter
of 2012 than the third quarter of 2012. Corporate payment products revenue
decreased $23 million (11.4 percent) due to seasonally lower volumes. Mortgage
banking revenue was $43 million (8.3 percent) lower than the third quarter of
2012, principally due to lower origination and sales revenue, including the
impact of an increase to the representations and warranties repurchase
reserve. Other income was $41 million (21.2 percent) lower on a linked quarter
basis due to the net impact of the gain on sale of a credit card portfolio and
the charge related to an investment under the equity method of accounting,
both of which were recorded in the third quarter of 2012. These negative
variances were offset by a $29 million (13.6 percent) increase in credit and
debit card revenue over the prior quarter, principally due to seasonally
higher credit card sales and prepaid card fees. Merchant processing services
revenue was $9 million (2.6 percent) higher than the third quarter of 2012,
reflecting higher seasonal product fees, partially offset by a reduction in
net interchange revenue on slightly lower volume. Trust and investment
management fees were $11 million (4.2 percent) higher on a linked quarter
basis due to seasonally higher fee income and business expansion.

                                                                   
NONINTEREST                                                         Table 7
EXPENSE
($ in                                   Percent  Percent                  
millions)
                                            Change    Change
                 4Q       3Q       4Q       4Q12 vs   4Q12 vs   Full      Full     Percent
                                                                Year      Year
                 2012    2012    2011    3Q12     4Q11     2012     2011    Change
                                                                                   
Compensation     $1,083   $1,109   $1,057   (2.3  )   2.5       $4,320    $4,041   6.9
Employee         231      225      202      2.7       14.4      945       845      11.8
benefits
Net occupancy    234      233      249      .4        (6.0  )   917       999      (8.2  )
and equipment
Professional     166      144      131      15.3      26.7      530       383      38.4
services
Marketing and
business         103      96       112      7.3       (8.0  )   388       369      5.1
development
Technology and   214      205      195      4.4       9.7       821       758      8.3
communications
Postage,
printing and     78       75       77       4.0       1.3       304       303      .3
supplies
Other            66       67       74       (1.5  )   (10.8 )   274       299      (8.4  )
intangibles
Other            511     455     599      12.3      (14.7 )   1,957    1,914    2.2
                                                                                   
Total
noninterest      $2,686  $2,609  $2,696   3.0       (.4   )   $10,456  $9,911   5.5
expense
                                                                   
                                                                                   

Noninterest Expense

Noninterest expense in the fourth quarter of 2012 totaled $2,686 million, a
decrease of $10 million (.4 percent) from the fourth quarter of 2011, and a
$77 million (3.0 percent) increase over the third quarter of 2012. The
decrease in total noninterest expense year-over-year was primarily due to a
reduction in other expense, partially offset by higher compensation, employee
benefits and professional services expense. Other expense decreased by $88
million (14.7 percent) as the $130 million mortgage servicing-related expense
accrual recorded in the fourth quarter of 2011, as well as year-over-year
declines in FDIC insurance expense and other real estate owned costs, were
partially offset by the current quarter’s $80 million accrual for a mortgage
foreclosure-related regulatory settlement. Net occupancy and equipment expense
decreased $15 million (6.0 percent), principally reflecting the change in
classification in the first quarter of 2012 of ATM surcharge revenue passed
through to others. In addition, marketing and business development expense was
$9 million (8.0 percent) lower than last year, reflecting the timing of
charitable contributions, and other intangibles expense decreased $8 million
(10.8 percent) due to the reduction or completion of the amortization of
certain intangibles. These reductions were partially offset by higher
compensation and employee benefits expense of $26 million (2.5 percent) and
$29 million (14.4 percent), respectively. The increase in compensation expense
was primarily the result of growth in staffing for business initiatives and
mortgage servicing-related activities, in addition to higher commissions and
merit increases. Employee benefits expense increased principally due to higher
pension and medical insurance costs and staffing levels. Professional services
expense was $35 million (26.7 percent) higher year-over-year, principally due
to mortgage servicing review-related projects. Technology and communications
expense was $19 million (9.7 percent) higher year-over-year as a result of
business expansion and technology projects.

Noninterest expense increased $77 million (3.0 percent) on a linked quarter
basis. The majority of the variance was in other expense, which increased $56
million (12.3 percent) due to the $80 million mortgage foreclosure-related
regulatory settlement accrual and higher costs related to investments in
affordable housing and other tax-advantaged projects, partially offset by
lower litigation and insurance-related costs. Professional services expense
was $22 million (15.3 percent) higher, principally due to mortgage servicing
review-related projects. Partially offsetting these increases was a $26
million (2.3 percent) decrease in compensation expense, which was largely
related to lower incentive costs.

Provision for Income Taxes

The provision for income taxes for the fourth quarter of 2012 resulted in a
tax rate on a taxable-equivalent basis of 30.7 percent (effective tax rate of
28.6 percent), compared with 30.5 percent (effective tax rate of 28.4 percent)
in the fourth quarter of 2011 and 31.2 percent (effective tax rate of 29.3
percent) in the third quarter of 2012.

                                                            
ALLOWANCE FOR CREDIT                                         Table 8
LOSSES
($ in millions)          4Q        3Q        2Q        1Q        4Q
                          2012      2012      2012      2012      2011
                                                                      
Balance, beginning of     $4,771     $4,864     $4,919     $5,014     $5,190
period
                                                                      
Net charge-offs
Commercial                47         59         56         78         51
Lease financing           5        7        15       8        21     
Total commercial          52         66         71         86         72
Commercial mortgages      12         20         47         35         37
Construction and          5        5        6        36       47     
development
Total commercial real     17         25         53         71         84
estate
                                                                      
Residential mortgages     96         121        109        112        119
                                                                      
Credit card               161        167        170        169        193
                                                                      
Retail leasing            1          --         --         1          --
Home equity and second    75         89         63         74         77
mortgages
Other                     59       68       54       57       75     
Total other retail        135      157      117      132      152    
Total net charge-offs,    461        536        520        570        620
excluding covered loans
Covered loans             7        2        --       1        2      
Total net charge-offs     468        538        520        571        622
Provision for credit      443        488        470        481        497
losses
Net change for credit
losses to be reimbursed   (13    )   (10    )   (5     )   (5     )   (51    )
by the FDIC
Other changes             --       (33    )  --       --       --     
Balance, end of period    $4,733   $4,771   $4,864   $4,919   $5,014 
                                                                      
Components
Allowance for loan
losses, excluding
losses to be
reimbursed by the FDIC    $4,382     $4,426     $4,507     $4,575     $4,678
Allowance for credit
losses to be reimbursed
by the FDIC               42         55         65         70         75
Liability for unfunded    309      290      292      274      261    
credit commitments
Total allowance for       $4,733   $4,771   $4,864   $4,919   $5,014 
credit losses
                                                                      
Gross charge-offs         $576       $639       $631       $681       $718
Gross recoveries          $108       $101       $111       $110       $96
                                                                      
Allowance for credit
losses as a percentage
of
Period-end loans,         2.15       2.26       2.34       2.44       2.52
excluding covered loans
Nonperforming loans,      269        244        247        238        228
excluding covered loans
Nonperforming assets,
excluding covered         218        213        210        199        191
assets
                                                                      
Period-end loans          2.12       2.19       2.25       2.32       2.39
Nonperforming loans       228        202        196        174        163
Nonperforming assets      177        168        161        142        133
                                                              
                                                                             

Credit Quality

Net charge-offs and nonperforming assets declined on a linked quarter and
year-over-year basis as economic conditions continued to slowly improve. On a
linked quarter basis, net charge-offs decreased $70 million (13.0 percent),
while nonperforming assets, excluding covered assets, decreased $100 million
(4.6 percent). The allowance for credit losses was $4,733 million at December
31, 2012, compared with $4,771 million at September 30, 2012, and $5,014
million at December 31, 2011. Total net charge-offs in the fourth quarter of
2012 were $468 million, compared with $538 million in the third quarter of
2012 and $622 million in the fourth quarter of 2011. The decrease in total net
charge-offs on a linked quarter basis reflected improvement in the commercial
and commercial real estate portfolios, as well as the impact of $54 million of
incremental charge-offs recorded in the third quarter of 2012 due to the
regulatory clarification in the treatment of loans to consumer borrowers who
had debt discharged through bankruptcy but continue to make payments on their
loans. The $154 million (24.8 percent) decline in net charge-offs
year-over-year, was primarily due to improvement in the commercial, commercial
real estate and credit card portfolios. The Company recorded $443 million of
provision for credit losses, $25 million less than net charge-offs for the
fourth quarter of 2012.

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          .88    1.04   1.04   1.17    1.28
covered loans
                                                                       
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           238       239       314       379       545
development
Total commercial real      546        631        690        759        899
estate
                                                                       
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           1,693      1,913      1,916      2,028      2,152
covered loans
                                                                       
Covered loans              386       449       570       798       926
Total nonperforming        2,079      2,362      2,486      2,826      3,078
loans
                                                                       
Other real estate (a)      381        259        324        377        404
Covered other real         197        198        203        233        274
estate (a)
Other nonperforming        14        16        16        18        18
assets
Total nonperforming        $2,671    $2,835    $3,029    $3,454    $3,774
assets (b)
                                                                       
Total nonperforming
assets, excluding          $2,088    $2,188    $2,256    $2,423    $2,574
covered assets
                                                                       
Accruing loans 90 days
or more
past due, excluding        $660      $644      $663      $750      $843
covered loans
                                                                       
Accruing loans 90 days     $1,323    $1,326    $1,315    $1,492    $1,753
or more past due
                                                                       
Performing
restructured loans,
excluding GNMA
and covered loans          $3,421    $3,387    $3,310    $3,380    $3,365
                                                                       
Performing
restructured GNMA and      $2,159    $2,002    $1,727    $1,675    $1,509
covered loans
                                                                       
Nonperforming assets
to loans
plus ORE, excluding        .98        1.06       1.11       1.22       1.32
covered assets (%)
                                                                       
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.

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

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

Wholesale Banking and Commercial Real Estate offers lending, equipment finance
and small-ticket leasing, depository services, treasury management, capital
markets, foreign exchange, international trade services and other financial
services to middle market, large corporate, commercial real estate, financial
institution and public sector clients. Wholesale Banking and Commercial Real
Estate contributed $319 million of the Company’s net income in the fourth
quarter of 2012, compared with $275 million in the fourth quarter of 2011 and
$324 million in the third quarter of 2012. Wholesale Banking and Commercial
Real Estate’s net income increased $44 million (16.0 percent) over the same
quarter of 2011, principally due to a lower provision for credit losses. Total
net revenue declined by $5 million (.6 percent), as a 3.5 percent decline in
net interest income was partially offset by a 4.9 percent increase in total
noninterest income. Net interest income decreased $19 million (3.5 percent)
year-over-year, primarily due to lower rates on loans and the impact of lower
rates on the margin benefit from deposits, partially offset by higher average
loan and deposit balances. Total noninterest income increased $14 million (4.9
percent), driven by higher equity investment and trading account revenue.
Total noninterest expense decreased $5 million (1.5 percent) from a year ago,
primarily due to lower costs related to other real estate owned. The provision
for credit losses was $70 million lower year-over-year, mainly due to lower
net charge-offs.

Wholesale Banking and Commercial Real Estate’s contribution to net income in
the fourth quarter of 2012 was $5 million (1.5 percent) lower than the third
quarter of 2012. Total net revenue decreased $4 million (.5 percent) compared
with the prior quarter. Net interest income decreased $9 million (1.7 percent)
on a linked quarter basis, principally due to lower loan rates and partially
offset by increased average loan balances. Total noninterest income increased
by $5 million (1.7 percent), primarily due to an increase in equity investment
revenue. Total noninterest expense increased $5 million (1.6 percent), as an
increase in professional services expense was partially offset by lower
compensation and employee benefits expense.

Consumer and Small Business Banking delivers products and services through
banking offices, telephone servicing and sales, on-line services, direct mail,
ATM processing and over mobile devices. It encompasses community banking,
metropolitan banking, in-store banking, small business banking, consumer
lending, mortgage banking, workplace banking, student banking and 24-hour
banking. Consumer and Small Business Banking contributed $269 million of the
Company’s net income in the fourth quarter of 2012, a $12 million (4.7
percent) increase over the fourth quarter of 2011, and a $57 million (17.5
percent) decrease from the prior quarter. Within Consumer and Small Business
Banking, the retail banking division reported a 48.5 percent decrease in its
contribution from the same quarter of last year due to lower total net revenue
and a higher provision for credit losses, partially offset by lower total
noninterest expense. Retail banking’s total net revenue was 5.3 percent lower
than the fourth quarter of 2011. Net interest income decreased 2.4 percent,
primarily due to lower loan rates and the impact of lower rates on the margin
benefit from deposits, partially offset by higher average loan and deposit
balances. Total noninterest income for the retail banking division decreased
11.9 percent from a year ago, principally due to a decrease in ATM processing
services revenue, a result of the change in classification of the surcharge
revenue passed through to others, and lower retail lease residual revenue.
Total noninterest expense for the retail banking division in the fourth
quarter of 2012 decreased 3.4 percent from the same quarter of the prior year,
largely due to lower net occupancy and equipment expense, as a result of the
classification change to ATM surcharge revenue passed through to others, as
well as lower FDIC insurance expense and other intangibles expense, partially
offset by higher shared services costs, compensation and employee benefits
expense. The provision for credit losses for the retail banking division
increased 46.1 percent on a year-over-year basis due to a change in the
reserve allocation, partially offset by lower net charge-offs. The
contribution of the mortgage banking division increased $92 million (100.0
percent) over the fourth quarter of 2011 due to higher total net revenue and a
lower provision for credit losses, partially offset by an increase in total
noninterest expense. The division’s 39.3 percent increase in total net revenue
was primarily due to a 55.3 percent increase in total noninterest income,
driven by strong mortgage origination and sales revenue, as well as an
increase in loan servicing revenue. In addition, net interest income increased
10.7 percent, primarily the result of higher average loans held for sale.
Total noninterest expense was 60.9 percent higher, reflecting the
foreclosure-related regulatory settlement accrual and higher mortgage
servicing review-related costs, compensation and employee benefits expense.
The provision for credit losses for the mortgage banking division decreased by
80.5 percent due to lower net charge-offs and a change in the reserve
allocation.

Consumer and Small Business Banking’s contribution in the fourth quarter of
2012 was $57 million (17.5 percent) lower than the third quarter of 2012 due
to a decrease in total net revenue and an increase in total noninterest
expense, partially offset by a lower provision for credit losses. Within
Consumer and Small Business Banking, the retail banking division’s
contribution increased 6.3 percent on a linked quarter basis, principally due
to a decrease in the provision for credit losses, partially offset by a
reduction in total net revenue. Total net revenue for the retail banking
division declined 1.8 percent from the previous quarter, mainly due to a
reduction in retail lease residual revenue. Total noninterest expense for the
retail banking division was relatively flat on a linked quarter basis. The
provision for credit losses decreased 11.4 percent on a linked quarter basis
due to lower net charge-offs, partially offset by an unfavorable change in the
reserve allocation. The contribution of the mortgage banking division
decreased 25.2 percent from the third quarter of 2012 due to a decline in
total net revenue and an increase in total noninterest expense, partially
offset by a lower provision for credit losses. Total net revenue decreased 7.2
percent due to a 3.1 percent decline in net interest income, driven by lower
rates on average loans held for sale, and an 8.7 percent decrease in total
noninterest income, primarily due to lower mortgage origination and sales
revenue, including the impact of an increase in the representations and
warranties repurchase reserve. Total noninterest expense increased 25.8
percent, driven by the foreclosure-related regulatory settlement accrual and
higher mortgage servicing review-related costs, partially offset by lower
compensation expense. The mortgage banking division’s provision for credit
losses decreased 55.1 percent on a linked quarter basis due to a change in the
reserve allocation.

Wealth Management and Securities Services provides private banking, financial
advisory services, investment management, retail brokerage services,
insurance, trust, custody and fund servicing through five businesses: Wealth
Management, Corporate Trust Services, U.S. Bancorp Asset Management,
Institutional Trust & Custody and Fund Services. Wealth Management and
Securities Services contributed $41 million of the Company’s net income in the
fourth quarter of 2012, equal to the contribution for the fourth quarter of
2011 and $2 million (4.7 percent) lower than the third quarter of 2012. The
business line’s contribution, compared with the same quarter of 2011 was flat,
as higher total net revenue was offset by an increase in total noninterest
expense and the provision for credit losses. Total net revenue increased by
$29 million (8.1 percent) year-over-year. Total noninterest income increased
by $36 million (14.0 percent), primarily due to the impact of improved market
conditions, business expansion and higher investment products fees and
commissions. Partially offsetting this increase was a $7 million (7.1 percent)
decrease in net interest income, principally due to the impact of lower rates
on the margin benefit of deposits. Total noninterest expense increased by $22
million (7.6 percent) due to higher compensation and employee benefits expense
and an increase in net shared services costs. The provision for credit losses
increased by $6 million due to higher net charge-offs.

The business line’s contribution in the fourth quarter of 2012 was $2 million
(4.7 percent) lower than the prior quarter. Total net revenue increased $16
million (4.3 percent) due to an $11 million (3.9 percent) increase in total
noninterest income, mainly due to seasonally higher fee income and business
expansion, and a $5 million (5.8 percent) increase in net interest income,
principally due to higher average deposit balances. Total noninterest expense
increased $14 million (4.7 percent) over the prior quarter, primarily as a
result of the timing of professional services expenses, and higher
litigation-related and business integration costs. The provision for credit
losses was $5 million higher than the prior quarter due to an increase in net
charge-offs.

Payment Services includes consumer and business credit cards, stored-value
cards, debit cards, corporate and purchasing card services, consumer lines of
credit and merchant processing. Payment Services contributed $318 million of
the Company’s net income in the fourth quarter of 2012, a decrease of $2
million (.6 percent) from the same period of 2011, and a $57 million (15.2
percent) decrease from the prior quarter. The decrease year-over-year was
primarily due to higher total noninterest expense and an increase in the
provision for credit losses, partially offset by higher total net revenue.
Total net revenue increased $28 million (2.4 percent) year-over-year. Net
interest income increased $34 million (9.4 percent), principally due to higher
average loan balances, improved loan rates and the credit card balance
transfer fees classification change. Total noninterest income decreased $6
million (.8 percent) year-over-year. Merchant processing services revenue was
lower year-over year, due to lower rates and the reversal in fourth quarter of
2011 of an accrual for a terminated revenue sharing agreement, partially
offset by higher volumes. This decrease was partially offset by higher credit
and debit card revenue, principally driven by higher volumes, a portion of
which was partially offset by the change in the classification of credit card
balance transfer fees to interest income beginning in the first quarter of
2012. In addition, corporate payment products revenue was higher due to an
increase in volume and higher rates. Total noninterest expense increased $19
million (3.7 percent), primarily due to higher professional services, outside
data processing and net shared services expenses compared with the fourth
quarter of 2011. The provision for credit losses increased $17 million (13.0
percent) due to a change in the reserve allocation, partially offset by lower
net charge-offs.

Payment Services’ contribution in the fourth quarter of 2012 was $57 million
(15.2 percent) lower than the third quarter of 2012 due to lower total net
revenue, higher total noninterest expense and an increase in the provision for
credit losses. Total net revenue declined by $46 million (3.7 percent) from
the third quarter of 2012. Total noninterest income was $58 million (6.8
percent) lower on a linked quarter basis, driven by a reduction in other
income due to the impact of the third quarter of 2012 gain on the credit card
portfolio sale. In addition, corporate payment products revenue decreased due
to seasonally lower volumes. These unfavorable variances were partially offset
by an increase in credit and debit card revenue due to seasonally higher
credit cards sales and prepaid card fees. Net interest income increased $12
million (3.1 percent) quarter over quarter, driven by seasonally lower rebate
costs on the government card program and improved rates on loans. Total
noninterest expense increased $34 million (6.9 percent) on a linked quarter
basis, principally due to the timing of marketing programs. The provision for
credit losses increased $14 million (10.4 percent) due to a change in the
reserve allocation.

Treasury and Corporate Support includes the Company’s investment portfolios,
most covered commercial and commercial real estate loans and related other
real estate owned, funding, capital management, asset securitization, interest
rate risk management, the net effect of transfer pricing related to average
balances and the residual aggregate of those expenses associated with
corporate activities that are managed on a consolidated basis. Treasury and
Corporate Support recorded net income of $473 million in the fourth quarter of
2012, compared with net income of $457 million in the fourth quarter of 2011
and net income of $406 million in the third quarter of 2012. Net interest
income increased $108 million (22.0 percent) over the fourth quarter of 2011,
reflecting lower long-term funding rates, partially offset by lower rates on
the investment portfolio. Total noninterest income decreased by $261 million
(77.7 percent), year-over-year, largely due to the merchant settlement and
Visa gains recorded in the fourth quarter of 2011. In addition, there was a
$12 million favorable change in net securities gains (losses). Total
noninterest expense decreased by $142 million (42.4 percent), principally due
to the impact of the mortgage servicing-related expense accrual recorded in
the fourth quarter of 2011 and a reduction in net shared services expense,
partially offset by increased compensation and employee benefits expense.

Net income in the fourth quarter of 2012 was $67 million (16.5 percent) higher
on a linked quarter basis, due to an increase in total net revenue and lower
total noninterest expense. Total net revenue was higher than the third quarter
of 2012 by $43 million (6.8 percent), principally as a result of higher total
noninterest income, primarily due to the impact of the third quarter of 2012
equity method of accounting investment charge. Net interest income increased
by .5 percent, as the favorable impact of lower long-term funding rates was
partially offset by lower rates on the investment securities portfolio. A $48
million (19.9 percent) decrease in total noninterest expense on a linked
quarter basis primarily reflected lower litigation and insurance-related
costs, partially offset by increased costs related to investments in
affordable housing and other tax-advantaged projects in the current quarter.

Additional schedules containing more detailed information about the Company’s
business line results are available on the web at usbank.com or by calling
Investor Relations at 612-303-0781.

On Wednesday, January 16, 2013, at 7:00 a.m. (CST) Richard K. Davis, chairman,
president and chief executive officer, and Andrew Cecere, vice chairman and
chief financial officer, will host a conference call to review the financial
results. The conference call will be available by telephone or on the
Internet. A presentation will be used during the call and will be available on
the Company’s website at www.usbank.com. To access the conference call from
locations within the United States and Canada, please dial 866-316-1409.
Participants calling from outside the United States and Canada, please dial
706-634-9086. The conference ID number for all participants is 75695755. For
those unable to participate during the live call, a recording of the call will
be available approximately two hours after the conference call ends on
Wednesday, January 16th, and will run through Wednesday, January 23rd, at
11:00 p.m. (CST). To access the recorded message within the United States and
Canada, dial 855-859-2056. If calling from outside the United States and
Canada, please dial 404-537-3406 to access the recording. The conference ID is
75695755. To access the webcast and presentation go to www.usbank.com and
click on “About U.S. Bank.” The “Webcasts & Presentations” link can be found
under the Investor/Shareholder information heading, which is at the left side
of the bottom of the page.

Minneapolis-based U.S. Bancorp (“USB”), with $354 billion in assets as of
December 31, 2012, is the parent company of U.S. Bank National Association,
the 5th largest commercial bank in the United States. The Company operates
3,084 banking offices in 25 states and 5,065 ATMs and provides a comprehensive
line of banking, brokerage, insurance, investment, mortgage, trust and payment
services products to consumers, businesses and institutions. U.S. Bancorp and
its employees are dedicated to improving the communities they serve, for which
the company earned the 2011 Spirit of America Award, the highest honor
bestowed on a company by United Way. Visit U.S. Bancorp on the web at
usbank.com.

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 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. These forward-looking statements cover, among
other things, anticipated future revenue and expenses and the future plans and
prospects of U.S. Bancorp. 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 effects of recently enacted and future legislation and regulation.
U.S. Bancorp’s results could also be adversely affected by continued
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, 2011, 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.

Non-GAAP Financial Measures

In addition to capital ratios defined by banking regulators under the FDIC
Improvement Act prompt corrective action provisions applicable to all banks,
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 using Basel I definition,

• Tier 1 common equity to risk-weighted assets using Basel I definition,

• Tier 1 common equity to risk-weighted assets using Basel III proposals
published prior to June 2012, and

• Tier 1 common equity to risk-weighted assets approximated using proposed
rules for the Basel III standardized approach released June 2012.

These measures are viewed by management as useful additional methods of
reflecting the level of capital available to withstand unexpected 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 measures differ
from capital ratios defined by current banking regulations principally in that
the numerator excludes trust preferred securities and preferred stock, the
nature and extent of which varies among different financial services
companies. These measures are not defined in generally accepted accounting
principals (“GAAP”) or federal banking regulations. As a result, these
measures disclosed by the Company may be considered non-GAAP financial
measures.

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.

U.S. Bancorp                                                    
Consolidated Statement of Income
                                    Three Months Ended   Year Ended
(Dollars and Shares in Millions,    December 31,        December 31,
Except Per Share Data)
(Unaudited)                        2012     2011     2012      2011    
Interest Income
Loans                               $2,639    $2,634     $10,558     $10,370
Loans held for sale                 74        61         282         200
Investment securities               416       463        1,792       1,820
Other interest income               67       62       251       249     
Total interest income               3,196     3,220      12,883      12,639
Interest Expense
Deposits                            161       194        691         840
Short-term borrowings               89        124        442         531
Long-term debt                      219      285      1,005     1,145   
Total interest expense              469      603      2,138     2,516   
Net interest income                 2,727     2,617      10,745      10,123
Provision for credit losses         443      497      1,882     2,343   
Net interest income after           2,284     2,120      8,863       7,780
provision for credit losses
Noninterest Income
Credit and debit card revenue       242       231        892         1,073
Corporate payment products          178       171        744         734
revenue
Merchant processing services        354       378        1,395       1,355
ATM processing services             83        111        346         452
Trust and investment management     276       245        1,055       1,000
fees
Deposit service charges             170       171        653         659
Treasury management fees            130       133        541         551
Commercial products revenue         226       220        878         841
Mortgage banking revenue            476       303        1,937       986
Investment products fees and        39        31         150         129
commissions
Securities gains (losses), net      3         (9     )   (15     )   (31     )
Other                               152      446      743       1,011   
Total noninterest income            2,329     2,431      9,319       8,760
Noninterest Expense
Compensation                        1,083     1,057      4,320       4,041
Employee benefits                   231       202        945         845
Net occupancy and equipment         234       249        917         999
Professional services               166       131        530         383
Marketing and business              103       112        388         369
development
Technology and communications       214       195        821         758
Postage, printing and supplies      78        77         304         303
Other intangibles                   66        74         274         299
Other                               511      599      1,957     1,914   
Total noninterest expense           2,686    2,696    10,456    9,911   
Income before income taxes          1,927     1,855      7,726       6,629
Applicable income taxes             552      527      2,236     1,841   
Net income                          1,375     1,328      5,490       4,788
Net (income) loss attributable to   45       22       157       84      
noncontrolling interests
Net income attributable to U.S.     $1,420   $1,350   $5,647    $4,872  
Bancorp
Net income applicable to U.S.       $1,349   $1,314   $5,383    $4,721  
Bancorp common shareholders
                                                                     
Earnings per common share           $.72      $.69       $2.85       $2.47
Diluted earnings per common share   $.72      $.69       $2.84       $2.46
Dividends declared per common       $.195     $.125      $.780       $.500
share
Average common shares outstanding   1,872     1,904      1,887       1,914
Average diluted common shares      1,880    1,911    1,896     1,923   
outstanding
                                                                     

U.S. Bancorp                                                
Consolidated Ending Balance Sheet
                                                               
                                                December 31,   December 31,
(Dollars in Millions)                          2012          2011
Assets
Cash and due from banks                         $8,252         $13,962
Investment securities
Held-to-maturity                                34,389         18,877
Available-for-sale                              40,139         51,937
Loans held for sale                             7,976          7,156
Loans
Commercial                                      66,223         56,648
Commercial real estate                          36,953         35,851
Residential mortgages                           44,018         37,082
Credit card                                     17,115         17,360
Other retail                                    47,712       48,107    
Total loans, excluding covered loans            212,021        195,048
Covered loans                                   11,308       14,787    
Total loans                                     223,329        209,835
Less allowance for loan losses                  (4,424    )   (4,753    )
Net loans                                       218,905        205,082
Premises and equipment                          2,670          2,657
Goodwill                                        9,143          8,927
Other intangible assets                         2,706          2,736
Other assets                                    29,675       28,788    
Total assets                                    $353,855     $340,122  
                                                               
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing                             $74,172        $68,579
Interest-bearing                                145,972        134,757
Time deposits greater than $100,000             29,039       27,549    
Total deposits                                  249,183        230,885
Short-term borrowings                           26,302         30,468
Long-term debt                                  25,516         31,953
Other liabilities                               12,587       11,845    
Total liabilities                               313,588        305,151
Shareholders' equity
Preferred stock                                 4,769          2,606
Common stock                                    21             21
Capital surplus                                 8,201          8,238
Retained earnings                               34,720         30,785
Less treasury stock                             (7,790    )    (6,472    )
Accumulated other comprehensive income (loss)   (923      )   (1,200    )
Total U.S. Bancorp shareholders' equity         38,998         33,978
Noncontrolling interests                        1,269        993       
Total equity                                    40,267       34,971    
Total liabilities and equity                   $353,855     $340,122  
                                                                         

*Story too large*
U.S. Bancorp                                                          
Non-GAAP
Financial
Measures
                                                                                       
                 December       September       June          March         December
                 31,            30,             30,           31,           31,
(Dollars in
Millions,       2012        2012         2012       2012       2011     
Unaudited)
Total equity     $40,267        $39,825         $38,874       $36,914       $34,971
Preferred        (4,769   )     (4,769    )     (4,769  )     (3,694  )     (2,606   )
stock
Noncontrolling   (1,269   )     (1,164    )     (1,082  )     (1,014  )     (993     )
interests
Goodwill (net
of deferred      (8,351   )     (8,194    )     (8,205  )     (8,233  )     (8,239   )
tax liability)
Intangible
assets, other
than mortgage    (1,006   )   (980      )   (1,118  )   (1,182  )   (1,217   )
servicing
rights
Tangible
common equity    24,872         24,718          23,700        22,791        21,916
(a)
                                                                                       
Tier 1
capital,
determined in
accordance
with             31,203         30,766          30,044        29,976        29,173
prescribed
regulatory
requirements
using Basel I
definition
Trust
preferred        --             --              --            (1,800  )     (2,675   )
securities
Preferred        (4,769   )     (4,769    )     (4,769  )     (3,694  )     (2,606   )
stock
Noncontrolling
interests,
less preferred   (685     )   (685      )   (685    )   (686    )   (687     )
stock not
eligible for
Tier 1 capital
Tier 1 common
equity using     25,749         25,312          24,590        23,796        23,205
Basel I
definition (b)
                                                                                       
Tangible
common equity                                                 22,791        21,916
(as calculated
above)
Adjustments                                                   434        450      
(1)
Tier 1 common
equity using
Basel III
proposals                                                     23,225        22,366
published
prior to June
2012 (c)
                                                                                       
Tangible
common equity    24,872         24,718          23,700
(as calculated
above)
Adjustments      126         157          153     
(2)
Tier 1 common
equity
approximated
using proposed
rules for the    24,998         24,875          23,853
Basel III
standardized
approach
released June
2012 (d)
                                                                                       
Total assets     353,855        352,253         353,136       340,762       340,122
Goodwill (net
of deferred      (8,351   )     (8,194    )     (8,205  )     (8,233  )     (8,239   )
tax liability)
Intangible
assets, other
than mortgage    (1,006   )   (980      )   (1,118  )   (1,182  )   (1,217   )
servicing
rights
Tangible         344,498        343,079         343,813       331,347       330,666
assets (e)
                                                                                       
Risk-weighted
assets,
determined in
accordance
with             287,611    *   282,033         279,972       274,847       271,333
prescribed
regulatory
requirements
using Basel I
definition (f)
                                                                                       
Risk-weighted
assets using
Basel III
proposals        --             --              --            277,856       274,351
published
prior to June
2012 (g)
                                                                                       
Risk-weighted
assets,
determined in
accordance
with             287,611    *   282,033         279,972
prescribed
regulatory
requirements
using Basel I
definition
Adjustments      21,233      22,167       23,240  
(3)
Risk-weighted
assets
approximated
using proposed
rules for the    308,844    *   304,200         303,212
Basel III
standardized
approach
released June
2012 (h)
                                                                                       
Ratios *
Tangible
common equity    7.2        %   7.2         %
to tangible
assets (a)/(e)

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