us bancorp (USB) Key Developments
U.S. Bancorp Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2014; Announces Net Charge-Offs for the Fourth Quarter of 2014; Provides Net Charge-Offs Guidance for the First Quarter of 2015
Jan 21 15
U.S. Bancorp announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2014. For the quarter, the company's net interest income was $2,744 million compared with $2,677 million a year ago. The increase in net interest income year-over-year was the result of an increase in average earning assets and continued growth in lower cost core deposit funding, partially offset by lower loan fees due to the previously communicated wind down of the short-term, small-dollar deposit advance product, Checking Account Advance. Income before income taxes was $2,022 million compared with $1,874 million a year ago. Net income applicable to the company’s common shareholders was $1,420 million or $0.79 per diluted share compared with $1,389 million or $0.76 per diluted share a year ago. The increase in net income year-over-year was principally due to an increase in total net revenue, driven by increases in net interest income and fee-based revenue, and the net impact of notable items. Return on average assets was 1.50% compared with 1.62% a year ago. Return on average common equity was 14.4% compared with 15.4% a year ago. Total net revenue was $5,169 million compared with $4,889 million a year ago.
For the year, the company's net interest income was $10,775 million compared with $10,604 million a year ago. Income before income taxes was $7,995 million compared with $7,764 million a year ago. Net income was $5,908 million compared with $5,732 million a year ago. Net income applicable to the company’s common shareholders was $5,583 million or $3.08 per diluted share compared with $5,552 million or $3.00 per diluted share a year ago. Return on average assets was 1.54% compared with 1.65% a year ago. Return on average common equity was 14.7% compared with 15.8% a year ago. As on December 31, 2014, the company's book value per common share was $21.68 against $19.92 a year ago. Total net revenue was $20,161 million compared with $19,602 million a year ago.
The company’s net charge-offs for the fourth quarter of 2014 were $308 million, compared with $312 million in the fourth quarter of 2013.
The company announced that given current economic conditions, the company expects the level of net charge-offs to remain relatively stable in the first quarter of 2015.
U.S. Bank Announces Management Changes
Jan 20 15
U.S. Bank announced that Andrew Cecere, currently Vice Chairman and Chief Financial Officer (CFO), has been promoted to Vice Chairman and Chief Operating Officer (COO) and will be responsible for U.S. Bank's core lines of business: Consumer and Small Business Banking, Wholesale Banking and Commercial Real Estate, Payment Services, and Wealth Management and Securities Services. Cecere will continue to report to Richard Davis, Chairman, President, and Chief Executive Officer, U.S. Bank. Kathy Ashcraft Rogers, currently Executive Vice President, Business Line Planning & Reporting, will succeed Cecere as Vice Chairman and Chief Financial Officer. Rogers has been with U.S. Bank for 28 years and has served in a variety of leadership roles within the Finance organization. She will report to Davis and join the Managing Committee, which consists of the 14 most senior leaders at U.S. Bank. Kate Quinn, Executive Vice President of Strategy and Corporate Affairs, U.S. Bank, has also been promoted and will join the Managing Committee and report to Davis. Cecere has been with U.S. Bank since 1985. He has served as Vice Chairman and CFO since 2007.
US Bank to Face Class Action Suit from Customers
Jan 16 15
Customers have filed a class action suit against US Bank for forcing customers to purchase insurance on some of its mortgage loans. The claimants said that the bank abused its right by charging borrowers for expired coverage, purchasing backdated, retroactive FPI policies on behalf of borrowers and arranging for kickbacks in connection with the FPI.
U.S. Bank Announces Management Changes
Dec 22 14
U.S. Bank. announced that J.P. Perfili will succeed Scott Scherschligt as local head of retail banking for U.S. Bank. Perfili's title will be Senior Vice President and Regional Manager for retail banking. He will oversee the bank's 76 branches in Portland and southwest Washington. Perfili previously worked as regional manager for the bank in Orange County and the South Bay area of Los Angeles.
Y. Marc Belton and Victoria Buyniski Gluckman Intends Not to Stand for Re-Election to the U.S. Bancorp's Board of Directors
Dec 10 14
U.S. Bancorp announced that on December 8, 2014, each of Y. Marc Belton and Victoria Buyniski Gluckman informed the company of his or her intention not to stand for re-election to the company's Board of Directors when his or her current term expires at the Companys 2015 annual meeting of shareholders.