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Us Bancorp De (USB) SEC Filing 10-K Annual Report for the fiscal year ending Friday, December 31, 2021

Us Bancorp De

CIK: 36104 Ticker: USB

Exhibit 99.1

 

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U.S. Bancorp Reports Fourth Quarter and Full Year 2021 Results

 

 Full year net income of $8.0 billion and full year net revenue of $22.8 billion

 Full year return on average assets of 1.43% and return on average common equity of 16.0%

 Common Equity Tier 1 capital ratio of 10.0% and strong levels of liquidity

 

 

    4Q21 and Full Year Key Financial Data

  

 

4Q21 and Full Year Highlights

    

           

 PROFITABILITY METRICS

    4Q21       3Q21       4Q20           
Full Year
2021
 
 
   
Full Year
2020
 
 

Return on average assets (%)

 

 

 

 

1.16

 

 

    1.45       1.10         1.43       .93  

Return on average common
equity (%)

    13.0       15.9       12.1         16.0       10.0  

Return on tangible common
equity (%) (a)

    16.6       20.2       15.6         20.4       13.2  

Net interest margin (%)

    2.40       2.53       2.57         2.49       2.68  

Efficiency ratio (%) (a)

 

 

 

 

 

62.3

 

 

    58.4       58.8         60.4       57.8  

 INCOME STATEMENT (b)

    4Q21       3Q21       4Q20          
Full Year
2021
 
 
   
Full Year
2020
 
 

Net interest income (taxable-equivalent basis)

 

 

 

 

$3,150

 

 

    $3,197       $3,201         $12,600       $12,924  

Noninterest income

    $2,534       $2,693       $2,550         $10,227       $10,401  

Net income attributable to U.S. Bancorp

    $1,673       $2,028       $1,519         $7,963       $4,959  

Diluted earnings per common share

    $1.07       $1.30       $.95         $5.10       $3.06  

Dividends declared per common share

 

 

 

 

 

$.46

 

 

    $.46       $.42         $1.76       $1.68  

 BALANCE SHEET (b)

    4Q21       3Q21       4Q20          
Full Year
2021
 
 
   
Full Year
2020
 
 

Average total loans

 

 

 

 

$302,755

 

 

    $296,739       $302,308         $296,965       $307,269  

Average total deposits

    $449,838       $431,487       $422,413         $434,281       $398,615  

Net charge-off ratio

    .17%       .20%       .58%         .23%        .58%   

Book value per common share (period end)

    $32.71       $32.22       $31.26        

Basel III standardized CET1 (c)

 

 

 

 

 

10.0%

 

  

    10.2%        9.7%         

 

 
(a) See Non-GAAP Financial Measures reconciliation on page 16

 

(b) Dollars in millions, except per share data

 

(c) CET1 = Common equity tier 1 capital ratio

 

 

 

  Net income of $1,673 million and diluted earnings per common share of $1.07 for 4Q21

 

  Return on average assets of 1.16% and return on average common equity of 13.0% for 4Q21

 

  Net revenue decline driven by lower mortgage banking revenue, partially offset by higher trust and investment management fees

 

  Strong deposit growth supported related investment portfolio and cash balance strategies to optimize asset sensitivity going into 2022. While dilutive to NIM, this was a net benefit to net interest income. This elevated liquidity drove NIM to decline 6 basis points while lower Paycheck Protection Program “PPP” loan fees accounted for 6 basis points decline

 

  Net charge-off ratio of 0.17% in 4Q21 compared with 0.20% in 3Q21 and 0.58% in 4Q20

 

  Average total loans grew 2.0% on a linked quarter basis

                       

 

  Full year net income of $7,963 million and diluted earnings per common share of $5.10

 

  Full year average earning assets growth of 5.1%

 

  Full year average total deposits growth of 8.9%

 

  CET1 capital ratio increased to 10.0% at December 31, 2021, compared with 9.7% at December 31, 2020

 

 

CEO Commentary

 

“The value of our diversified business model was evident in 2021 results. Credit quality continues to be particularly strong with our net charge-off ratio at a historical low of 17 basis points in the fourth quarter. We experienced solid loan growth from new business originations and increased line utilization. Deposit growth was very strong this quarter increasing $18.4 billion or 4.3% compared with the third quarter, which supported our loan growth and provided the opportunity for investment strategies that were both accretive to fourth quarter net interest income and maintains asset sensitivity for future growth in a rising rate environment. As we start a new year, we are encouraged by the momentum building in each of our lines of business. The investments we have made in our digital transformation and payments ecosystem initiatives will continue to enable customer and revenue growth and we expect continued momentum in customer spend activity and loan growth. In the fourth quarter we closed on the acquisition of TravelBank, providing tech-led expense and travel management solutions for mid-size companies, and the PFM acquisition, which increases assets under management. I want to thank our U.S. Bank employees for all they do, and we are looking forward to welcoming Union Bank employees to our team when we close on the acquisition later this year.”

Andy Cecere, Chairman, President and CEO, U.S. Bancorp                    

 

In the Spotlight

 

U.S. Bank Helping Customers Manage Cash Flow

In 2022, U.S. Bank is implementing changes to help consumer customers better manage their cash flow and avoid fees. Effective January 3, U.S. Bank eliminated certain fees for non-sufficient funds. By the end of the second quarter, the amount an account can be overdrawn prior to fee assessment will increase from $5 to $50. A new U.S. Bank Overdraft Fee Forgiven offering provides account holders a full day to deposit funds to avoid a fee when the negative balance is more than $50. Additionally, the bank will roll out a new balance dashboard providing smart alerts to inform consumers of a potential negative balance before it occurs.

U.S. Bank Acquires PFM Asset Management

U.S. Bank closed on its previously announced agreement to purchase PFM Asset Management LLC. As part of the acquisition, more than 250 PFM Asset Management employees have joined U.S. Bank. With the addition of PFMAM, Wealth Management and Investment Services has combined investment assets under management of approximately $420 billion as of December 31, 2021.

U.S. Bank Acquires TravelBank

U.S. Bancorp, the parent company of U.S. Bank, has acquired TravelBank, a San Francisco-based fintech company that provides an all-in-one, tech-driven expense and travel management solution. TravelBank is easy to use for employees and helps businesses control and track expenses, automate processes, streamline approvals and reporting and ensure compliance with company policies.

Net Zero Greenhouse Gas Emissions Goal

U.S. Bank announced several company-wide commitments to address the impacts of climate change on its business, customers and communities, including setting a goal to achieve Net Zero greenhouse gas emissions by 2050. In addition, goals were set to source 100% renewable electricity within its operations by 2025 and an environmental finance goal of $50 billion by 2030.

 

 

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        Investor contact: Jennifer Thompson, 612.303.0778 | Media contact: Jeff Shelman, 612.303.9933


The following information was filed by Us Bancorp De (USB) on Wednesday, January 19, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Cover Page
Consolidated Balance Sheet
Consolidated Balance Sheet (Parenthetical)
Consolidated Statement Of Cash Flows
Consolidated Statement Of Comprehensive Income
Consolidated Statement Of Income
Consolidated Statement Of Shareholders' Equity
Consolidated Statement Of Shareholders' Equity (Parenthetical)
Accounting Changes
Accounting For Transfers And Servicing Of Financial Assets And Variable Interest Entities
Accounting For Transfers And Servicing Of Financial Assets And Variable Interest Entities (Tables)
Accounting For Transfers And Servicing Of Financial Assets And Variable Interest Entities - Additional Information (Detail)
Accounting For Transfers And Servicing Of Financial Assets And Variable Interest Entities - Summary Of Investments In Community Development And Tax-Advantaged Vies (Detail)
Business Combinations
Business Combinations - Additional Information (Detail)
Business Segments
Business Segments (Tables)
Business Segments - Additional Information (Detail)
Business Segments - Business Segment Results (Detail)
Deposits
Deposits (Tables)
Deposits - Composition Of Deposits (Detail)
Deposits - Maturities Of Time Deposits Outstanding (Detail)
Derivative Instruments
Derivative Instruments (Tables)
Derivative Instruments - Additional Information (Detail)
Derivative Instruments - Asset And Liability Management Derivative Positions Of Company (Detail)
Derivative Instruments - Asset And Liability Management Derivative Positions Of Company (Parenthetical) (Detail)
Derivative Instruments - Customer-Related Derivative Positions Of Company (Detail)
Derivative Instruments - Effect Of Fair Value And Cash Flow Hedge Accounting On Consolidated Statement Of Income (Detail)
Derivative Instruments - Effect Of Fair Value And Cash Flow Hedge Accounting On Consolidated Statement Of Income (Parenthetical) (Detail)
Derivative Instruments - Summary Of Cumulative Hedging Adjustments And The Carrying Amount Of Assets And Liabilities Designated In Fair Value Hedges (Detail)
Derivative Instruments - Summary Of Cumulative Hedging Adjustments And The Carrying Amount Of Assets And Liabilities Designated In Fair Value Hedges (Parenthetical) (Detail)
Derivative Instruments - Summary Of Effective Portion Of Gains (Losses) Recognized In Other Comprehensive Income (Loss) And Gains (Losses) Reclassified From Other Comprehensive Income (Loss) Into Earnings (Detail)
Derivative Instruments - Summary Of Gains (Losses) Recognized In Earnings For Other Economic Hedges And Customer-Related Positions (Detail)
Earnings Per Share
Earnings Per Share (Tables)
Earnings Per Share - Additional Information (Detail)
Earnings Per Share - Components Of Earnings Per Share (Detail)
Employee Benefits
Employee Benefits (Tables)
Employee Benefits - Additional Information (Detail)
Employee Benefits - Components Of Net Periodic Benefit Cost And Other Amounts Recognized In Accumulated Other Comprehensive Income (Loss) (Detail)
Employee Benefits - Expected Future Benefit Payments (Detail)
Employee Benefits - Pension Plans With Benefit Obligations In Excess Of Plan Assets (Detail)
Employee Benefits - Summarizes Changes For Qualified Pension Plan Investment Assets Measured At Fair Value Using Significant Unobservable Inputs (Level 3) (Detail)
Employee Benefits - Summary Of Changes In Projected Benefit Obligation, Plan Assets, Funded Status, Amounts Recognized In Consolidated Balance Sheet And Accumulated Other Comprehensive Income (Loss) (Detail)
Employee Benefits - Summary Of Changes In Projected Benefit Obligation, Plan Assets, Funded Status, Amounts Recognized In Consolidated Balance Sheet And Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail)
Employee Benefits - Summary Of Plan Investment Assets Measured At Fair Value (Detail)
Employee Benefits - Summary Of Plan Investment Assets Measured At Fair Value (Parenthetical) (Detail)
Employee Benefits - Weighted Average Assumptions To Determine Projected Benefit Obligations (Detail)
Employee Benefits - Weighted Average Assumptions To Determine Projected Benefit Obligations (Parenthetical) (Detail)
Employee Benefits - Weighted Average Assumptions Used To Determine Net Periodic Benefit Cost (Detail)
Employee Benefits - Weighted Average Assumptions Used To Determine Net Periodic Benefit Cost (Parenthetical) (Detail)
Fair Values Of Assets And Liabilities
Fair Values Of Assets And Liabilities (Tables)
Fair Values Of Assets And Liabilities - Additional Information (Detail)
Fair Values Of Assets And Liabilities - Adjusted Carrying Values For Assets Measured At Fair Value On Nonrecurring Basis (Detail)
Fair Values Of Assets And Liabilities - Balances Of Assets And Liabilities Measured At Fair Value On Recurring Basis (Detail)
Fair Values Of Assets And Liabilities - Balances Of Assets And Liabilities Measured At Fair Value On Recurring Basis (Parenthetical) (Detail)
Fair Values Of Assets And Liabilities - Changes In Fair Value For All Assets And Liabilities Measured At Fair Value On Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail)
Fair Values Of Assets And Liabilities - Changes In Fair Value For All Assets And Liabilities Measured At Fair Value On Recurring Basis Using Significant Unobservable Inputs (Level 3) (Parenthetical) (Detail)
Fair Values Of Assets And Liabilities - Differences Between Aggregate Fair Value Carrying Amount Of Mlhfs For Which Fair Value Option Has Been Elected And Aggregate Unpaid Principal Amount Contractually Obligated To Receive At Maturity (Detail)
Fair Values Of Assets And Liabilities - Estimated Fair Values Of Financial Instruments (Detail)
Fair Values Of Assets And Liabilities - Losses Recognized Related To Nonrecurring Fair Value Measurements Of Individual Assets Or Portfolios (Detail)
Fair Values Of Assets And Liabilities - Valuation Assumption Ranges For Derivative Commitments (Detail)
Fair Values Of Assets And Liabilities - Valuation Assumption Ranges For Msrs (Detail)
Guarantees And Contingent Liabilities
Guarantees And Contingent Liabilities (Tables)
Guarantees And Contingent Liabilities - Additional Information (Detail)
Guarantees And Contingent Liabilities - Contract Or Notional Amount Of Letters Of Credit (Detail)
Guarantees And Contingent Liabilities - Contract Or Notional Amounts Of Unfunded Commitments To Extend Credit (Detail)
Guarantees And Contingent Liabilities - Summary Of Other Guarantees And Contingent Liabilities (Detail)
Income Taxes
Income Taxes (Tables)
Income Taxes - Additional Information (Detail)
Income Taxes - Components Of Income Tax Expense (Detail)
Income Taxes - Reconciliation Of Changes In Federal, State And Foreign Unrecognized Tax Position Balances (Detail)
Income Taxes - Reconciliation Of Expected Income Tax Expense At Federal Statutory Rate Of 21 Percent To Company's Applicable Income Tax Expense (Detail)
Income Taxes - Significant Components Of The Company's Net Deferred Tax Asset (Liability) (Detail)
Intangible Assets
Intangible Assets (Tables)
Intangible Assets - Aggregate Amortization Expense (Detail)
Intangible Assets - Changes In Carrying Value Of Goodwill (Detail)
Intangible Assets - Estimated Amortization Expense (Detail)
Intangible Assets - Intangible Assets (Detail)
Investment Securities
Investment Securities (Tables)
Investment Securities - Additional Information (Detail)
Investment Securities - Amortized Cost, Fair Value And Yield By Maturity Date (Detail)
Investment Securities - Amortized Cost, Fair Value And Yield By Maturity Date (Parenthetical) (Detail)
Investment Securities - Amount Of Gross Gains And Losses Realized Through Sales Of Available-For-Sale Investment Securities (Detail)
Investment Securities - Amount Of Interest Income From Taxable And Non-Taxable Investment Securities (Detail)
Investment Securities - Available-For-Sale And Held-To-Maturity (Detail)
Investment Securities - Gross Unrealized Losses And Fair Value Of Company's Investment Securities (Detail)
Leases
Leases (Tables)
Leases - Additional Information (Detail)
Leases - Components Of Net Investment In Sales - Type And Direct Financing Leases (Detail)
Leases - Contractual Future Lease Payments To Be Received (Detail)
Leases - Schedule Of Contractual Future Lease Obligations (Detail)
Leases - Summary Of Amounts Relevant To Company's Assets Leased For Use In Its Operations (Detail)
Leases - Summary Of Weighted-Average Remaining Lease Terms And Discount Rates (Detail)
Loans And Allowance For Credit Losses
Loans And Allowance For Credit Losses (Tables)
Loans And Allowance For Credit Losses - Activity In Allowance For Credit Losses By Portfolio Class (Detail)
Loans And Allowance For Credit Losses - Additional Information (Detail)
Loans And Allowance For Credit Losses - Composition Of Loan Portfolio (Detail)
Loans And Allowance For Credit Losses - Summary Of Loans By Portfolio Class And Company's Internal Credit Quality Rating (Detail)
Loans And Allowance For Credit Losses - Summary Of Loans By Portfolio Class And Company's Internal Credit Quality Rating (Parenthetical) (Detail)
Loans And Allowance For Credit Losses - Summary Of Loans By Portfolio Class, Including Delinquency Status Of Those That Continue To Accrue Interest And Are Nonperforming (Detail)
Loans And Allowance For Credit Losses - Summary Of Loans By Portfolio Class, Including Delinquency Status Of Those That Continue To Accrue Interest And Are Nonperforming (Parenthetical) (Detail)
Loans And Allowance For Credit Losses - Summary Of Loans Modified As Tdrs (Detail)
Loans And Allowance For Credit Losses - Summary Of Loans Modified As Tdrs In The Past Twelve Months That Have Subsequently Defaulted (Detail)
Long-Term Debt
Long-Term Debt (Tables)
Long-Term Debt - Additional Information (Detail)
Long-Term Debt - Maturities Of Long-Term Debt Outstanding (Detail)
Long-Term Debt - Summary Of Long-Term Debt (Detail)
Long-Term Debt - Summary Of Long-Term Debt (Parenthetical) (Detail)
Mortgage Servicing Rights
Mortgage Servicing Rights (Tables)
Mortgage Servicing Rights - Additional Information (Detail)
Mortgage Servicing Rights - Changes In Fair Value Of Capitalized Msrs (Detail)
Mortgage Servicing Rights - Msrs And Related Characteristics By Portfolio (Detail)
Mortgage Servicing Rights - Sensitivity To Changes In Interest Rates Of The Fair Value Of Msr Portfolio And Related Derivative Instruments (Detail)
Netting Arrangements For Certain Financial Instruments And Securities Financing Activities
Netting Arrangements For Certain Financial Instruments And Securities Financing Activities (Tables)
Netting Arrangements For Certain Financial Instruments And Securities Financing Activities - Additional Information (Detail)
Netting Arrangements For Certain Financial Instruments And Securities Financing Activities - Information On Company's Accounting Netting Adjustments And Items Not Offset In Consolidated Balance Sheet Assets But Available For Offset In Event Of Default (Detail)
Netting Arrangements For Certain Financial Instruments And Securities Financing Activities - Information On Company's Accounting Netting Adjustments And Items Not Offset In Consolidated Balance Sheet Assets But Available For Offset In Event Of Default (Parenthetical) (Detail)
Netting Arrangements For Certain Financial Instruments And Securities Financing Activities - Information On Company's Accounting Netting Adjustments And Items Not Offset In Consolidated Balance Sheet Liabilities But Available For Offset In Event Of Default (Detail)
Netting Arrangements For Certain Financial Instruments And Securities Financing Activities - Information On Company's Accounting Netting Adjustments And Items Not Offset In Consolidated Balance Sheet Liabilities But Available For Offset In Event Of Default (Parenthetical) (Detail)
Netting Arrangements For Certain Financial Instruments And Securities Financing Activities - Summary Of Maturities By Category Of Collateral Pledged For Repurchase Agreements And Securities Loaned Transactions (Detail)
Premises And Equipment
Premises And Equipment (Tables)
Premises And Equipment - Premises And Equipment (Detail)
Restrictions On Cash And Due From Banks
Restrictions On Cash And Due From Banks - Additional Information (Detail)
Shareholder' Equity
Shareholder' Equity (Tables)
Shareholders' Equity - Additional Information (Detail)
Shareholders' Equity - Common Stock Repurchased (Detail)
Shareholders' Equity - Components Of Company's Regulatory Capital Requirements Under Banking Regulations (Detail)
Shareholders' Equity - Components Of Company's Regulatory Capital Requirements Under Banking Regulations (Detail) (Parenthetical)
Shareholders' Equity - Impact To Net Income For Items Reclassified Out Of Accumulated Other Comprehensive Income And Into Earnings (Detail)
Shareholders' Equity - Number Of Shares Issued And Outstanding And Carrying Amount Of Preferred Stock (Detail)
Shareholders' Equity - Number Of Shares Issued And Outstanding And Carrying Amount Of Preferred Stock (Parenthetical) (Detail)
Shareholders' Equity - Reconciliation Of Transactions Affecting Accumulated Other Comprehensive Income (Loss) Included In Shareholders' Equity (Detail)
Short-Term Borrowings
Short-Term Borrowings (Tables)
Short-Term Borrowings - Summary Of Short-Term Borrowings (Detail)
Significant Accounting Policies
Significant Accounting Policies (Policies)
Stock-Based Compensation
Stock-Based Compensation (Tables)
Stock-Based Compensation - Additional Information (Detail)
Stock-Based Compensation - Stock Options Outstanding Additional Information (Detail)
Stock-Based Compensation - Summary Of Certain Stock Option Activity (Detail)
Stock-Based Compensation - Summary Of Company's Restricted Shares Of Stock And Unit Awards (Detail)
Stock-Based Compensation - Summary Of Stock Options Outstanding And Exercised Under Prior And Existing Stock Incentive Plans (Detail)
Subsequent Events
U.S. Bancorp (Parent Company)
U.S. Bancorp (Parent Company) (Tables)
U.S. Bancorp (Parent Company) - Additional Information (Detail)
U.S. Bancorp (Parent Company) - Condensed Income Statement Of Parent Company Only (Detail)
U.S. Bancorp (Parent Company) - Condensed Statement Of Cash Flows Of Parent Company Only (Detail)
U.S. Bancorp (Parent Company) - Condensed Statement Of Financial Position Of Parent Company Only (Detail)
Ticker: USB
CIK: 36104
Form Type: 10-K Annual Report
Accession Number: 0001193125-22-048709
Submitted to the SEC: Tue Feb 22 2022 5:14:10 PM EST
Accepted by the SEC: Tue Feb 22 2022
Period: Friday, December 31, 2021
Industry: National Commercial Banks

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