8-K - USB - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 25, 2023

U.S. BANCORP

(Exact name of registrant as specified in its charter)

1-6880

(Commission File Number)

Delaware	41-0255900
(State or other jurisdiction	(I.R.S. Employer Identification
of incorporation)	Number)
800 Nicollet Mall
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Minneapolis, Minnesota 55402
(Address of principal executive offices and zip code)

(651) 466-3000

(Registrant’s telephone number, including area code)

(not applicable)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 Under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading<br>symbol	Name of each exchange<br>on which registered
Common Stock, $.01 par value per share	USB	New York Stock Exchange
Depositary Shares (each representing 1/100th interest in a share of Series A Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrA	New York Stock Exchange
Depositary Shares (each representing 1/1,000th interest in a share of Series B Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrH	New York Stock Exchange
Depositary Shares (each representing 1/1,000th interest in a share of Series K Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrP	New York Stock Exchange
Depositary Shares (each representing 1/1,000th interest in a share of Series L Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrQ	New York Stock Exchange
Depositary Shares (each representing 1/1,000th interest in a share of Series M Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrR	New York Stock Exchange
Depositary Shares (each representing 1/1,000th interest in a share of Series O Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrS	New York Stock Exchange
0.850% Medium-Term Notes, Series X (Senior), due June 7, 2024	USB/24B	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule l2b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section l3(a) of the Exchange Act. ☐

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On January 25, 2023, U.S. Bancorp (the “Company”) issued a press release reporting quarter-ended December 31, 2022 results, and posted on its website its 4Q22 Earnings Conference Call Presentation, which contains certain additional historical and forward-looking information relating to the Company. The press release is included as Exhibit 99.1 hereto and is incorporated herein by reference. The information included in the press release is considered to be “filed” under the Securities Exchange Act of 1934. The 4Q22 Earnings Conference Call Presentation is included as Exhibit 99.2 hereto and is incorporated herein by reference. The information included in the 4Q22 Earnings Conference Call Presentation is considered to be “furnished” under the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference in any filings under the Securities Act of 1933. The press release and 4Q22 Earnings Conference Call Presentation contain forward-looking statements regarding the Company and each includes a cautionary statement identifying important factors that could cause actual results to differ materially from those anticipated.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits.

99.1	Press Release issued by U.S. Bancorp on January 25, 2023, deemed “filed” under the Securities Exchange Act of 1934.
99.2	4Q22 Earnings Conference Call Presentation, deemed “furnished” under the Securities Exchange Act of 1934.
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104	Cover Page Interactive Data File (embedded within the Inline XBRL document)
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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

U.S. BANCORP
By /s/ Lisa R. Stark
Lisa R. Stark
Executive Vice President and<br>Controller

DATE: January 25, 2023

EX-99.1

Exhibit 99.1

U.S. Bancorp Completes Acquisitionof MUFG Union Bank<br> <br>Reports Fourth Quarter and Full Year 2022 Results
• Net income of $1.9 billion and diluted earnings per common share of $1.20, excluding notable items related to the acquisition of MUFG Union Bank for<br>4Q22
• Return on average<br>assets of 1.20% and return on average common equity of 16.8%, excluding notable items related to the acquisition of MUFG Union Bank for 4Q22
• Common Equity Tier 1<br>capital ratio of 8.4% and strong levels of liquidity
Full Year and 4Q22 Key Financial Data	4Q22 and Full YearHighlights
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PROFITABILITY METRICS	4Q22	3Q22	4Q21	Full Year<br> <br>2021
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Return on average assets (%)	.59	1.22	1.16	1.43
Return on average common equity (%)	8.0	15.8	13.0	16.0
Return on tangible common equity (%) (a)	11.5	21.0	16.6	20.4
Net interest margin (%)	3.01	2.83	2.40	2.49
Efficiency ratio (%) (a)	63.3	57.5	62.3	60.4
Tangible efficiency ratio (%) (a)	62.0	56.8	61.6	59.7
INCOME STATEMENT (b)	4Q22	3Q22	4Q21	Full Year<br><br><br>2021
Net interest income (taxable-equivalent basis)	$4,325	$3,857	3,150	$12,600
Noninterest income	$2,043	$2,469	2,534	$10,227
Net income attributable to U.S. Bancorp	$925	$1,812	1,673	$7,963
Diluted earnings per common share	$.57	$1.16	1.07	$5.10
Dividends declared per common share	$.48	$.48	.46	$1.76
BALANCE SHEET (b)	4Q22	3Q22	4Q21	Full Year<br><br><br>2021
Average total loans	$359,811	$336,778	302,755	$296,965
Average total deposits	$481,834	$456,769	449,838	$434,281
Net charge-off ratio	.64%	.19%	.17%	.23%
Book value per common share (period end)	$28.71	$27.39	32.71
Preliminary Basel III standardized CET1 (c)	8.4%	9.7%	10.0%
(a) See Non-GAAP Financial Measures reconciliation on page 20
(b) Dollars in millions, except per share data
(c) CET1 = Common equity tier 1 capital ratio

All values are in US Dollars.

4Q22<br><br><br><br><br><br>• Net revenue of $6,368 million including<br>$4,325 million of net interest income and $2,043 million of noninterest income for 4Q22, as reported<br> <br><br><br><br>• Net income of $1,877 million and diluted earnings<br>per common share of $1.20 for 4Q22, as adjusted for notable items related to the acquisition. On a reported basis, diluted earnings per common share were $0.57<br> <br><br><br><br>• Reported results included notable items related to the<br>acquisition of MUFG Union Bank, including balance sheet optimization charges of $399 million, merger and integration-related charges of $90 million and impacts to provision for credit losses of $791 million<br><br><br><br><br><br>• Return on average assets of 1.20% and return on average<br>common equity of 16.8% for 4Q22, as adjusted for notable items related to the acquisition. Net income of $925 million, return on average assets of 0.59%. return on average common equity of 8.0%, and return on tangible common equity of 11.5% for<br>4Q22, on a reported basis<br> <br><br> <br>• Average total loan growth of 18.8% year-over-year and 6.8% on a linked quarter basis<br> <br><br><br><br>• Average total deposit growth of 7.1% year-over-year and<br>5.5% on a linked quarter basis<br> <br><br> <br>FullYear<br> <br><br> <br>• Full year positive operating leverage over 230 basis points for legacy U.S. Bancorp operations, excluding notable items and income from the acquisition of MUFG Union Bank<br><br><br><br><br><br>• Full year net income of $5,825 million and diluted<br>earnings per common share of $3.69 as reported, $4.45 excluding notable items from the acquisition of MUFG Union Bank
CEO Commentary
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4Q22 • Net revenue of $6,368 million including $4,325 million of net interest income and $2,043 million of noninterest income for 4Q22, as reported • Net income of $1,877 million and diluted earnings per common share of $1.20 for 4Q22, as adjusted for notable items related to the acquisition. On a reported basis, diluted earnings per common share were $0.57 • Reported results included notable items related to the acquisition of MUFG Union Bank, including balance sheet optimization charges of $399 million, merger and integration-related charges of $90 million and impacts to provision for credit losses of $791 million • Return on average assets of 1.20% and return on average common equity of 16.8% for 4Q22, as adjusted for notable items related to the acquisition. Net income of $925 million, return on average assets of 0.59%. return on average common equity of 8.0%, and return on tangible common equity of 11.5% for 4Q22, on a reported basis • Average total loan growth of 18.8% year-over-year and 6.8% on a linked quarter basis • Average total deposit growth of 7.1% year-over-year and 5.5% on a linked quarter basis FullYear • Full year positive operating leverage over 230 basis points for legacy U.S. Bancorp operations, excluding notable items and income from the acquisition of MUFG Union Bank • Full year net income of $5,825 million and diluted earnings per common share of $3.69 as reported, $4.45 excluding notable items from the acquisition of MUFG Union Bank

CEO Commentary

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‘‘Full year results, as adjusted, were highlighted by strong pre-provision earnings growth, driven by solid net interest income, wider net interest margin, and positive operating leverage over 230 basis points. On December 1 we completed the acquisition of MUFG Union Bank, which meaningfully increased our market share in California by adding one million consumer, 700 commercial, and 190,000 business banking customers. We expect the transaction to be 8 to 9% accretive to 2023 EPS as the benefits of increased scale, cost synergies, and Union Bank’s core deposit franchise are realized. Credit quality remains strong as we prudently manage with a through-the-cycle view and we continue to maintain healthy capital and liquidity levels given the uncertain economic environment. As of December 31, our common equity tier 1 ratio was 8.4%. I want to thank our dedicated U.S. Bank employees as we continue to work towards a successful systems integration and account conversion of Union Bank customers expected in the second quarter of 2023.”

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

Impact of theMUFG Union Bank Acquisition which closed on December 1, 2022
MUFG UNION BANK ACQUISITION IMPACT HIGHLIGHTS
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(Taxable-equivalent basis; in millions, except per-share data)
							Net Income Attributable<br><br><br>to U.S. Bancorp
Fourth Quarter 2022						Fourth Quarter 2022	Before Tax<br><br><br>Impact
Total net revenue	6,465	302	6,767	(399)	$6,368	USB Combined		2,408	1,877	$1.20
Noninterest expense	3,732	221	3,953	90	4,043
Provision for credit losses	375	26	401	791	1,192	Notable items
Net income attributable to U.S. Bancorp	1,833	44	1,877	(952)	925	Balance sheet optimization		(399)	(297)	(.20)
Diluted earnings per common share	1.17	.03	1.20	(.63)	$.57	Merger and integration charges		(90)	(67)	(.04)
						Provision for credit losses		(791)	(588)	(.39)
Loans at period end	335,133	53,080	388,213		$388,213	U.S. Bancorp, as reported		1,128	925	$.57
Deposits at period end	442,984	81,992	524,976		524,976
Nonperforming assets at period end	687	329	1,016		1,016

All values are in US Dollars.

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Investor contact: George Andersen, 612.303.3620 | Media contact: Jeff Shelman, 612.303.9933

U.S. Bancorp Fourth Quarter 2022 Results
MUFG UNION BANK ACQUISITION IMPACT HIGHLIGHTS
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( in millions, except per-share data)
	3Q22
Income Statement Summary	USB <br>Legacy
Net interest income (taxable-equivalent basis) (a)	3,857	4,070	255	4,325	--	$4,325
Noninterest income	2,469	2,395	47	2,442	(399)	2,043
Total net revenue	6,326	6,465	302	6,767	(399)	6,368
Noninterest expense	3,595	3,732	221	3,953	90	4,043
Income before provision and income taxes	2,731	2,733	81	2,814	(489)	2,325
Provision for credit losses	362	375	26	401	791	1,192
Income before taxes	2,369	2,358	55	2,413	(1,280)	1,133
Income taxes and taxable-equivalent adjustment	520	520	11	531	(328)	203
Net income	1,849	1,838	44	1,882	(952)	930
Net (income) loss attributable to noncontrolling interests	(4)	(5)	--	(5)	--	(5)
Net income attributable to U.S. Bancorp	1,845	1,833	44	1,877	(952)	$925
Net income applicable to U.S. Bancorp common shareholders	1,751	1,757	44	1,801	(948)	$853
Diluted earnings per common share	1.18	1.17	.03	1.20	(.63)	$.57
Return on average assets	1.24%	1.23%	.61%	1.20%		.59%
Return on average common equity	16.2%	18.1%	4.5%	16.8%		8.0%
Net interest margin (a)	2.83%	2.96%	3.87%	3.01%		3.01%
Efficiency ratio (b)	56.8%	57.7%	73.2%	58.4%		63.3%
Tangible efficiency ratio (b)	56.2%	57.1%	59.3%	57.2%		62.0%
(a) Net of intercompany funding activity between U.S. Bank National Association and MUFG Union Bank
(b) See Non-GAAP Financial Measures reconciliation on page 20

All values are in US Dollars.

Balance Sheet and Credit Quality Summary<br><br><br>As of December 31, 2022
Loans	335,133	53,080	$388,213
Investment securities	151,169	10,481	161,650
Total assets (a)	593,356	81,449	674,805
Deposits	442,984	81,992	524,976
Allowance for Credit Losses as a Percentage of
Period-end loans	1.96%	1.59%	1.91%
Nonperforming loans	1020%	257%	762%
Nonperforming assets	955%	257%	729%
Nonperforming assets	687	329	$1,016
(a) Net of intercompany funding activity between U.S. Bank National Association and MUFG Union Bank

All values are in US Dollars.

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U.S. Bancorp Fourth Quarter 2022 Results

On December 1, 2022, the Company completed the acquisition of MUFG Union Bank. As such, the fourth quarter and full year results include one month of results from MUFG Union Bank, the impact of recognizing purchase accounting fair value marks to market and credit related marks to both the balance sheet and the accretion of these purchase accounting adjustments to the income statement in accordance with generally accepted accounting principles.

On a USB Legacy basis, key highlights include the following:

•	Net interest income, on a taxable equivalent basis, increased 29.2 percent from the fourth<br>quarter of 2021 and 5.5 percent on a linked quarter basis
•	Fee revenue declined $139 million, or 5.5 percent, from a year ago primarily driven by<br>lower mortgage banking revenue and service charges, offset by strong growth in payment services revenue and trust and investment management fees
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•	Total net revenue increased 12.1 percent from the fourth quarter of 2021 and 2.2 percent<br>on a linked quarter basis
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•	Earnings per diluted common share increased 9.3 percent from a year ago while the provision for<br>credit losses increased by $388 million relative to the fourth quarter of a year ago.
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MUFG Union Bank contributed $81 million on a pre-provision basis representing one month of results including the impacts of purchase accounting accretion in net interest income and approximately $42 million of intangible amortization primarily related to core deposit intangibles. The acquisition contributed $.03 per diluted common share for the fourth quarter.

Fourth quarter and full year results also include certain notable items directly related to the acquisition. Noninterest income included $399 million of losses primarily related to interest rate hedging positions entered into after regulatory approval was obtained to manage the impact of interest rate volatility on capital prior to closing the transaction in December. During that time, longer term interest rates increased nearly 50 basis points before declining approximately 65 basis points. These interest rate hedges were terminated at closing. In addition, the Company took actions to sell certain loans that were not aligned with our credit risk profile, reposition the investment portfolio and sell certain equity investments. Noninterest expense included $90 million of merger and integration costs primarily reflecting deal closing costs, professional services and employee related costs. The provision for credit losses included charges of $791 million related to initially providing for acquired loans of $662 million and $129 million related to the securitization of approximately $4 billion of indirect automobile loans to optimize the balance sheet capital management.

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U.S. Bancorp Fourth Quarter 2022 Results
INCOME STATEMENT HIGHLIGHTS
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( in millions, except per-share data)								Percent Change
		3Q<br><br><br>2022			4Q<br><br><br>2021			4Q22 vs<br><br><br>3Q22			4Q22 vs4Q21			Full Year2022			Full Year2021			Percent<br><br><br>Change
Net interest income	4,293	$	3,827		$	3,123			12.2			37.5		$	14,728		$	12,494			17.9
Taxable-equivalent adjustment	32		30			27			6.7			18.5			118			106			11.3
Net interest income (taxable-equivalent basis)	4,325		3,857			3,150			12.1			37.3			14,846			12,600			17.8
Noninterest income	2,043		2,469			2,534			(17.3	)		(19.4	)		9,456			10,227			(7.5)
Total net revenue	6,368		6,326			5,684			.7			12.0			24,302			22,827			6.5
Noninterest expense before merger and integration	3,953		3,595			3,533			10.0			11.9			14,577			13,728			6.2
Merger and integration charges	90		42			--			nm			nm			329			--			nm
Total noninterest expense	4,043		3,637			3,533			11.2			14.4			14,906			13,728			8.6
Income before provision and income taxes	2,325		2,689			2,151			(13.5	)		8.1			9,396			9,099			3.3
Provision for credit losses	1,192		362			(13	)		nm			nm			1,977			(1,173	)		nm
Income before taxes	1,133		2,327			2,164			(51.3	)		(47.6	)		7,419			10,272			(27.8)
Income taxes and taxable-equivalent adjustment	203		511			486			(60.3	)		(58.2	)		1,581			2,287			(30.9)
Net income	930		1,816			1,678			(48.8	)		(44.6	)		5,838			7,985			(26.9)
Net (income) loss attributable to noncontrolling interests	(5		(4	)		(5	)		(25.0	)		--			(13	)		(22	)		40.9
Net income attributable to U.S. Bancorp	925	$	1,812		$	1,673			(49.0	)		(44.7	)	$	5,825		$	7,963			(26.8)
Net income applicable to U.S. Bancorp common shareholders	853	$	1,718		$	1,582			(50.3	)		(46.1	)	$	5,501		$	7,605			(27.7)
Diluted earnings per common share	.57	$	1.16		$	1.07			(50.9	)		(46.7	)	$	3.69		$	5.10			(27.6)

All values are in US Dollars.

Net income attributable to U.S. Bancorp was $925 million for the fourth quarter of 2022, which was $748 million lower than the $1,673 million for the fourth quarter of 2021 and $887 million lower than the $1,812 million for the third quarter of 2022. Diluted earnings per common share were $0.57 in the fourth quarter of 2022, compared with $1.07 in the fourth quarter of 2021 and $1.16 in the third quarter of 2022. The fourth quarter of 2022 included $(952) million, or $(0.63) per diluted common share, of notable items associated with the acquisition of MUFG Union Bank including the impact of certain transactions to support balance sheet optimization, merger and integration-related charges and the initial provision for credit losses, compared with $(0.02) per diluted common share of merger and integration-related charges in the third quarter of 2022.

The decrease in net income year-over-year was primarily due to the notable items. Pretax income excluding the notable items increased 11.5 percent compared with a year ago including $55 million of contribution from MUFG Union Bank. Net interest income increased 37.3 percent on a year-over-year taxable-equivalent basis due to the impact of rising interest rates on earning assets and strong growth in loan balances including the impacts of the MUFG Union Bank acquisition, partially offset by deposit mix and pricing as well as funding mix. The net interest margin increased to 3.01 percent in the current quarter from 2.40 percent in the fourth quarter of 2021 primarily due to the impact of higher rates on earning assets, partially offset by deposit pricing and short-term borrowing costs. Excluding the impact of notable items, noninterest income decreased 3.6 percent compared with a year ago driven by lower mortgage banking revenue due to a decline in refinancing activities, partially offset by higher payment services revenue and trust and investment management fees. The increase also reflects $47 million of fee income related to MUFG Union Bank. Excluding merger and integration-related charges, noninterest expense increased 11.9 percent driven by MUFG Union Bank operating expenses of $221 million, including core deposit intangible amortization expense and higher legacy compensation expense. Provision for credit losses reflected the initial provision for credit losses related to the acquisition of MUFG Union Bank and a reserve build in the fourth quarter of 2022 as compared with a reserve release in the fourth quarter of 2021, primarily driven by increasing economic uncertainty.

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U.S. Bancorp Fourth Quarter 2022 Results

Net income decreased on a linked quarter basis primarily due to the notable items. Pretax income excluding the notable items increased 1.9 percent on a linked quarter basis including $55 million of contribution from MUFG Union Bank. Net interest income increased 12.1 percent on a taxable-equivalent basis due to yield curve favorability, growth in loan balances including the impacts of the MUFG Union Bank acquisition and earning asset mix, partially offset by deposit mix and pricing as well as funding mix. The net interest margin increased to 3.01 percent in the current quarter from 2.83 percent in the third quarter of 2022 primarily due to the impact of higher rates on earning assets and loan growth, partially offset by deposit pricing and short-term borrowing costs. Excluding the impact of notable items, noninterest income decreased 1.1 percent compared with the third quarter of 2022 driven by seasonally lower payment services revenue, impacted by foreign currency exchange rates in Europe, and lower commercial products revenue, partially offset by higher mortgage banking revenue. Excluding merger and integration-related charges, noninterest expense increased 10.0 percent on a linked quarter basis driven by MUFG Union Bank operating expenses, core deposit intangible amortization expense and higher legacy Company compensation expense. Provision for credit losses increased driven by the initial provision for credit losses related to the acquisition of MUFG Union Bank along with increasing economic uncertainty.

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U.S. Bancorp Fourth Quarter 2022 Results
NET INTEREST INCOME
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(Taxable-equivalent basis; in millions)

Components of net interest income
Income on earning assets	6,008	4,759	3,382	1,249	2,626	18,066	13,593	$4,473
Expense on interest-bearing liabilities	1,683	902	232	781	1,451	3,220	993	2,227
Net interest income	4,325	3,857	3,150	468	1,175	14,846	12,600	$2,246
Average yields and rates paid
Earning assets yield	4.17%	3.50%	2.58%	.67%	1.59%	3.31%	2.69%	.62%
Rate paid on interest-bearing liabilities	1.55	.89	.25	.66	1.30	.80	.28	.52
Gross interest margin	2.62%	2.61%	2.33%	.01%	.29%	2.51%	2.41%	.10%
Net interest margin	3.01%	2.83%	2.40%	.18%	.61%	2.72%	2.49%	.23%
Average balances
Investment securities (a)	166,993	164,851	160,784	2,142	6,209	169,442	154,702	$14,740
Loans	359,811	336,778	302,755	23,033	57,056	333,573	296,965	36,608
Interest-bearing deposits with banks	35,565	29,130	45,751	6,435	(10,186)	31,425	39,914	(8,489)
Earning assets	572,678	541,666	522,535	31,012	50,143	545,343	506,141	39,202
Interest-bearing liabilities	430,600	403,573	363,880	27,027	66,720	400,844	358,533	42,311
(a) Excludes unrealized gain (loss)

All values are in US Dollars.

Net interest income on a taxable-equivalent basis in the fourth quarter of 2022 was $4,325 million, an increase of $1,175 million (37.3 percent) over the fourth quarter of 2021. The increase was primarily due to the impact of rising interest rates on earning assets, growth in the Company’s legacy loan portfolio and the MUFG Union Bank acquisition, partially offset by deposit pricing and short-term borrowing costs. Average earning assets were $50.1 billion (9.6 percent) higher than the fourth quarter of 2021, reflecting increases of $57.1 billion (18.8 percent) in average total loans and $6.2 billion (3.9 percent) in average investment securities, while average interest-bearing deposits with banks decreased $10.2 billion (22.3 percent) driven by the growth in loan and investment securities balances. The increase in average investment securities year-over-year was due to the acquisition of MUFG Union Bank as well as purchases of mortgage-backed, U.S. Treasury and state and political securities, net of prepayments, sales and maturities in the Company’s legacy portfolio.

Net interest income on a taxable-equivalent basis increased $468 million (12.1 percent) on a linked quarter basis primarily due to yield curve favorability, growth in loan balances including the impacts of the MUFG Union Bank acquisition and earning asset mix, partially offset by deposit mix and pricing as well as short-term borrowing costs. Average earning assets were $31.0 billion (5.7 percent) higher on a linked quarter basis, reflecting increases of $23.0 billion (6.8 percent) in average loans, $2.1 billion (1.3 percent) in average investment securities and $6.4 billion (22.1 percent) in average interest-bearing deposits with banks. The increase in average investment securities on a linked quarter basis was primarily due to the acquisition of MUFG Union Bank.

The net interest margin in the fourth quarter of 2022 was 3.01 percent, compared with 2.40 percent in the fourth quarter of 2021 and 2.83 percent in the third quarter of 2022. The increase in the net interest margin from the prior year was primarily due to the impact of higher rates on earning assets, partially offset by deposit pricing and short-term borrowing costs. The increase in the net interest margin on a linked quarter basis reflected the impact of rising interest rates on earning assets and loan growth, partially offset by deposit pricing and short-term borrowing costs.

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U.S. Bancorp Fourth Quarter 2022 Results
AVERAGE LOANS
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( in millions)
						4Q22 vs<br><br><br>4Q21			Full Year<br><br><br>2022		Full Year<br><br><br>2021		Percent<br><br><br>Change
Commercial	128,269	123,745	99,433	3.7			29.0		$	118,967	$	97,649		21.8
Lease financing	4,649	4,774	5,075	(2.6	)		(8.4	)		4,830		5,206		(7.2	)
Total commercial	132,918	128,519	104,508	3.4			27.2			123,797		102,855		20.4
Commercial mortgages	34,997	30,002	28,216	16.6			24.0			30,890		27,997		10.3
Construction and development	10,725	10,008	10,635	7.2			.8			10,208		10,784		(5.3	)
Total commercial real estate	45,722	40,010	38,851	14.3			17.7			41,098		38,781		6.0
Residential mortgages	97,092	84,018	75,858	15.6			28.0			84,749		74,629		13.6
Credit card	25,173	24,105	22,399	4.4			12.4			23,478		21,645		8.5
Retail leasing	5,774	6,259	7,354	(7.7	)		(21.5	)		6,459		7,710		(16.2	)
Home equity and second mortgages	11,927	11,142	10,568	7.0			12.9			11,051		11,228		(1.6	)
Other	41,205	42,725	43,217	(3.6	)		(4.7	)		42,941		40,117		7.0
Total other retail	58,906	60,126	61,139	(2.0	)		(3.7	)		60,451		59,055		2.4
Total loans	359,811	336,778	302,755	6.8			18.8		$	333,573	$	296,965		12.3

All values are in US Dollars.

Average total loans for the fourth quarter of 2022 were $57.1 billion (18.8 percent) higher than the fourth quarter of 2021. The increase was driven by growth in the Company’s legacy loan portfolio as well as the $18.3 billion impact on average loan balances from the MUFG Union Bank acquisition which are primarily reflected in commercial loans, commercial mortgages and residential mortgages. Increases in commercial loans (29.0 percent), commercial mortgages (24.0 percent), residential mortgages (28.0 percent) and credit card loans (12.4 percent) were partially offset by lower retail leasing balances (21.5 percent) and other retail loans (4.7 percent). The increase in legacy portfolio commercial loans was due to higher utilization driven by working capital needs of corporate customers, slower pay-offs given higher volatility in the capital markets and core growth. The increase in legacy residential mortgages was driven by on-balance sheet loan activities and slower refinance activity. The increase in credit card loans was primarily driven by higher spend volumes, account growth and lower payment rates.

Average total loans were $23.0 billion (6.8 percent) higher than the third quarter of 2022 primarily due to the $18.3 billion impact of the MUFG Union Bank acquisition as well as legacy portfolio growth. Increases in commercial loans (3.7 percent), total commercial real estate (14.3 percent) and residential mortgages (15.6 percent) were primarily driven by the MUFG Union Bank acquisition, while the increase in credit card loans (4.4 percent) was primarily driven by lower payment rates.

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U.S. Bancorp Fourth Quarter 2022 Results
AVERAGE DEPOSITS
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
( in millions)						Percent Change
		3Q		4Q		4Q22 vs			4Q22 vs			Full Year		Full Year		Percent
		2022		2021		3Q22			4Q21			2022		2021		Change
Noninterest-bearing deposits	118,912	$	114,044	$	135,936		4.3			(12.5	)	$	120,394	$	127,204		(5.4	)
Interest-bearing savings deposits
Interest checking	124,522		113,364		108,889		9.8			14.4			117,471		103,198		13.8
Money market savings	135,949		125,389		117,462		8.4			15.7			126,221		117,093		7.8
Savings accounts	67,991		67,782		64,763		.3			5.0			67,722		62,294		8.7
Total savings deposits	328,462		306,535		291,114		7.2			12.8			311,414		282,585		10.2
Time deposits	34,460		36,190		22,788		(4.8	)		51.2			30,576		24,492		24.8
Total interest-bearing deposits	362,922		342,725		313,902		5.9			15.6			341,990		307,077		11.4
Total deposits	481,834	$	456,769	$	449,838		5.5			7.1		$	462,384	$	434,281		6.5

All values are in US Dollars.

Average total deposits for the fourth quarter of 2022 were $32.0 billion (7.1 percent) higher than the fourth quarter of 2021 driven in part by the $28.6 billion impact of the MUFG Union Bank acquisition. Average noninterest-bearing deposits decreased $17.0 billion (12.5 percent) across all business lines, net of the impact of the acquisition. Average total savings deposits were $37.3 billion (12.8 percent) higher year-over-year driven by Corporate and Commercial Banking and the impact of the acquisition. Average time deposits were $11.7 billion (51.2 percent) higher than the prior year quarter mainly within Corporate and Commercial Banking. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics.

Average total deposits grew $25.1 billion (5.5 percent) from the third quarter of 2022 reflecting the $28.6 billion impact of the MUFG Union Bank acquisition. On a linked quarter basis, average noninterest-bearing deposits increased $4.9 billion (4.3 percent) primarily driven by Consumer and Business Banking as a result of the acquisition. Average total savings deposits increased $21.9 billion (7.2 percent) primarily within Corporate and Commercial Banking, Wealth Management and Investment Services and Consumer and Business Banking driven by the acquisition. Average time deposits were $1.7 billion (4.8 percent) lower on a linked quarter basis mainly within Corporate and Commercial Banking. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics.

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U.S. Bancorp Fourth Quarter 2022 Results
NONINTEREST INCOME
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
( in millions)
		3Q<br><br><br>2022					4Q22 vs4Q21			Full Year<br><br><br>2022		Full Year<br><br><br>2021
Card revenue	384		391	382	(1.8	)		.5			1,512		1,507	.3
Corporate payment products revenue	178		190	155	(6.3	)		14.8			698		575	21.4
Merchant processing services	385		406	365	(5.2	)		5.5			1,579		1,449	9.0
Trust and investment management fees	571		572	483	(.2	)		18.2			2,209		1,832	20.6
Service charges	314		317	345	(.9	)		(9.0	)		1,298		1,338	(3.0	)
Commercial products revenue	264		285	265	(7.4	)		(.4	)		1,105		1,102	.3
Mortgage banking revenue	104		81	298	28.4			(65.1	)		527		1,361	(61.3	)
Investment products fees	58		56	62	3.6			(6.5	)		235		239	(1.7	)
Securities gains (losses), net	--		1	15	nm			nm			38		103	(63.1	)
Other	184		170	164	8.2			12.2			654		721	(9.3	)
Total before balance sheet optimization	2,442		2,469	2,534	(1.1	)		(3.6	)		9,855		10,227	(3.6	)
Balance sheet optimization	(399		--	--	nm			nm			(399		--	nm
Total noninterest income	2,043	$	2,469	2,534	(17.3	)		(19.4	)	$	9,456	$	10,227	(7.5	)

All values are in US Dollars.

Fourth quarter noninterest income of $2,043 million was $491 million (19.4 percent) lower than the fourth quarter of 2021, reflecting $(399) million of balance sheet optimization impact related to the MUFG Union Bank acquisition. Excluding the balance sheet optimization impact, fourth quarter noninterest income was $92 million (3.6 percent) lower than the fourth quarter of 2021 driven by lower mortgage banking revenue due to a decline in refinancing activities as well as lower service charges, partially offset by stronger payment services revenue and trust and investment management fees. Mortgage banking revenue decreased $194 million (65.1 percent) reflecting lower application volume, given declining refinance activities experienced in the mortgage industry, lower related gain on sale margins and fewer sales of performing loans, partially offset by a favorable change in the valuation of mortgage servicing rights, net of hedging activities. Service charges decreased $31 million (9.0 percent) primarily due to the impact of the elimination of certain consumer overdraft fees in 2022. These decreases in noninterest income were partially offset by an increase of $45 million (5.0 percent) in payment services revenue compared with the fourth quarter of 2021. Corporate payment products revenue increased $23 million (14.8 percent) driven by improving business spending across all product groups and merchant processing services revenue increased $20 million (5.5 percent) driven by higher sales volume and higher merchant fees. Given continued uncertainties in Europe, the U.S. dollar has strengthened considerably compared to European currencies. Adjusted for the impact of foreign currency rate changes, year-over-year merchant processing services revenue increased approximately 11.2 percent. Trust and investment management fees increased $88 million (18.2 percent) driven by lower money market fund fee waivers and activity related to the fourth quarter of 2021 acquisition of PFM Asset Management LLC, partially offset by unfavorable market conditions.

Noninterest income was $426 million (17.3 percent) lower in the fourth quarter of 2022 compared with the third quarter of 2022, reflecting $(399) million of balance sheet optimization related to the MUFG Union Bank acquisition. Excluding the balance sheet optimization impact, fourth quarter noninterest income was $27 million (1.1 percent) lower than the third quarter of 2022 reflecting seasonally lower payment services revenue and lower commercial products revenue, partially offset by higher mortgage banking revenue and other noninterest income. Payment services revenue decreased $40 million (4.1 percent). Card revenue decreased $7 million (1.8 percent) due to lower net interchange rate. Corporate payment products revenue decreased $12 million (6.3 percent) primarily due to seasonally lower sales volume. Merchant processing services revenue decreased $21 million (5.2 percent) primarily due to lower sales volume and lower merchant fees. Commercial products revenue decreased $21 million (7.4 percent) driven by lower capital markets and foreign currency customer activity as well as lower trading revenue, partially offset by higher non-yield loan fees as a result of higher commitment fees, higher commercial leasing fees and activity related to the acquisition of MUFG Union Bank. Partially offsetting these decreases, mortgage banking revenue increased $23 million (28.4 percent) reflecting an increase in the fair value of mortgage servicing rights, net of hedging activities, and other noninterest income increased $14 million (8.2 percent) due to higher tax-advantaged investment syndication revenue, partially offset by higher gains on the sale of certain assets in the third quarter of 2022.

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U.S. Bancorp Fourth Quarter 2022 Results
NONINTEREST EXPENSE
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
( in millions)						Percent Change
		3Q<br><br><br>2022		4Q<br><br><br>2021		4Q22 vs<br><br><br>3Q22		4Q22 vs<br><br><br>4Q21		Full Year<br><br><br>2022		Full Year<br><br><br>2021		Percent<br><br><br>Change
Compensation and employee benefits	2,402	$	2,260	$	2,223		6.3		8.1	$	9,157	$	8,728		4.9
Net occupancy and equipment	290		272		268		6.6		8.2		1,096		1,048		4.6
Professional services	173		131		160		32.1		8.1		529		492		7.5
Marketing and business development	144		126		129		14.3		11.6		456		366		24.6
Technology and communications	459		427		443		7.5		3.6		1,726		1,728		(.1	)
Other intangibles	85		43		40		97.7		nm		215		159		35.2
Other	400		336		270		19.0		48.1		1,398		1,207		15.8
Total before merger and integration	3,953		3,595		3,533		10.0		11.9		14,577		13,728		6.2
Merger and integration charges	90		42		--		nm		nm		329		--		nm
Total noninterest expense	4,043	$	3,637	$	3,533		11.2		14.4	$	14,906	$	13,728		8.6

All values are in US Dollars.

Fourth quarter noninterest expense of $4,043 million was $510 million (14.4 percent) higher than the fourth quarter of 2021. Included in the fourth quarter of 2022 were merger and integration-related charges associated with the acquisition of MUFG Union Bank of $90 million. Excluding the fourth quarter merger and integration-related charges, fourth quarter noninterest expense increased $420 million (11.9 percent) compared with the fourth quarter of 2021, driven by the impact of MUFG Union Bank operating expenses, core deposit intangible amortization expense, higher legacy Company compensation expense and higher other noninterest expense. Compensation expense increased $179 million (8.1 percent) compared with the fourth quarter of 2021 primarily due to MUFG Union Bank expense as well as merit and hiring to support business growth and lower capitalized loan costs driven by lower mortgage production, partially offset by lower performance-based incentives. Intangible amortization increased $45 million driven by the core deposit intangible created as a result of the MUFG Union Bank acquisition. Other noninterest expense increased $130 million (48.1 percent) due to lower prior year accruals related to future delivery exposures for merchant and airline processing and other liabilities, higher FDIC insurance expense driven by an increase in the assessment base and rate and MUFG Union Bank expense, partially offset by lower costs related to tax-advantaged projects and expenses related to the decline in mortgage production.

Noninterest expense increased $406 million (11.2 percent) on a linked quarter basis. Excluding merger and integration-related charges of $90 million in the fourth quarter of 2022 and $42 million in the third quarter of 2022, fourth quarter noninterest expense increased $358 million (10.0 percent) driven by the impact of MUFG Union Bank operating expenses, core deposit intangible amortization, higher legacy Company compensation expense and other noninterest expense. Compensation expense increased $142 million (6.3 percent) primarily due to MUFG Union Bank expense, higher performance-based incentives and lower capitalized loan costs driven by lower mortgage production, partially offset by lower variable compensation. Intangible amortization increased $42 million (97.7 percent) driven by the core deposit intangible created as a result of the MUFG Union Bank acquisition. Other noninterest expense increased $64 million (19.0 percent) due to MUFG Union Bank expense, higher costs related to tax-advantaged projects, higher FDIC insurance expense driven by an increase in the assessment base and rate, and other accrued liabilities.

Provision for Income Taxes

The provision for income taxes for the fourth quarter of 2022 resulted in a tax rate of 17.9 percent on a taxable-equivalent basis (effective tax rate of 15.5 percent), compared with 22.5 percent on a taxable-equivalent basis (effective tax rate of 21.5 percent) in the fourth quarter of 2021, and a tax rate of 22.0 percent on a taxable-equivalent basis (effective tax rate of 20.9 percent) in the third quarter of 2022. The tax rate on a taxable-equivalent basis, was 22.0 percent excluding the impact of notable items related to the acquisition.

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U.S. Bancorp Fourth Quarter 2022 Results
ALLOWANCE FOR CREDIT LOSSES
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
( in millions)			% (a)		3Q2022			% (a)		2Q2022			% (a)		1Q2022			% (a)		4Q2021			% (a)
Balance, beginning of period	6,455				$	6,255				$	6,105				$	6,155				$	6,300
Allowance for acquired credit losses (b)	336					--					--					--					--
Net charge-offsUSB Combined	210			.23		162			.19		161			.20		162			.21		132			.17
Acquisition impact (c)	368					--					--					--					--
Total net charge-offs	578			.64		162			.19		161			.20		162			.21		132			.17
Provision for credit losses
USB Combined	401					362					311					112					(13	)
Balance sheet optimization impact	129					--					--					--					--
Acquisition impact of initial provision	662					--					--					--					--
Total provision for credit losses	1,192					362					311					112					(13	)
Other changes	(1	)				--					--					--					--
Balance, end of period	7,404				$	6,455				$	6,255				$	6,105				$	6,155
Components
Allowance for loan losses	6,936				$	6,017				$	5,832				$	5,664				$	5,724
Liability for unfunded credit commitments	468					438					423					441					431
Total allowance for credit losses	7,404				$	6,455				$	6,255				$	6,105				$	6,155
Allowance for credit losses as a percentage of
Period-end loans	1.91	%				1.88	%				1.88	%				1.91	%				1.97	%
Nonperforming loans	762	%				1,025	%				863	%				798	%				738	%
Nonperforming assets	729	%				953	%				812	%				753	%				701	%
(a) Annualized and calculated on average<br>loan balances (b) Allowance for credit deteriorated and charged-off<br>loans acquired from MUFG Union Bank (c) Includes net charge-offs of 179 million, reflecting<br>uncollectible acquired loans previously charged-off and acquisition alignment, and 189 million loss on balance sheet optimization

All values are in US Dollars.

SUMMARY OF NET CHARGE-OFFS
($ in millions)	4Q2022			% (a)			3Q2022			% (a)			2Q2022			% (a)			1Q2022			% (a)			4Q2021			% (a)
Net charge-offs
Commercial	$	133			.41		$	24			.08		$	28			.10		$	26			.10		$	6			.02
Lease financing		5			.43			3			.25			2			.16			6			.49			--			--
Total commercial		138			.41			27			.08			30			.10			32			.12			6			.02
Commercial mortgages		25			.28			(6	)		(.08	)		(2	)		(.03	)		--			--			(3	)		(.04	)
Construction and development		17			.63			--			--			8			.33			(5	)		(.20	)		(1	)		(.04	)
Total commercial real estate		42			.36			(6	)		(.06	)		6			.06			(5	)		(.05	)		(4	)		(.04	)
Residential mortgages		(3	)		(.01	)		(5	)		(.02	)		(9	)		(.04	)		(6	)		(.03	)		(7	)		(.04	)
Credit card		175			2.76			119			1.96			118			2.08			112			2.08			109			1.93
Retail leasing		1			.07			1			.06			--			--			1			.06			1			.05
Home equity and second mortgages		--			--			(2	)		(.07	)		(3	)		(.11	)		(2	)		(.08	)		(2	)		(.08	)
Other		225			2.17			28			.26			19			.17			30			.27			29			.27
Total other retail		226			1.52			27			.18			16			.11			29			.19			28			.18
Total net charge-offs	$	578			.64		$	162			.19		$	161			.20		$	162			.21		$	132			.17
Gross charge-offs	$	669					$	275					$	276					$	280					$	254
Gross recoveries	$	91					$	113					$	115					$	118					$	122
(a) Annualized and calculated on average<br>loan balances

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U.S. Bancorp Fourth Quarter 2022 Results

The Company’s provision for credit losses for the fourth quarter of 2022 was $1,192 million, compared with a provision of $362 million in the third quarter of 2022 and a credit benefit of $13 million in the fourth quarter of 2021. The increase in provision was primarily due to the initial provision for credit losses recorded in the fourth quarter of 2022 of $662 million related to the MUFG Union Bank acquisition and the provision impact of balance sheet optimization actions taken in the fourth quarter of $129 million as well as changing economic conditions. During 2021, factors affecting economic conditions, including government stimulus and declining impacts from the pandemic in the U.S., contributed to economic improvement and related reserve releases. In 2022, economic uncertainty and recession risk have been increasing due to ongoing supply chain challenges, inflationary concerns, market volatility, rising oil prices from the Russia-Ukraine conflict and pressure on corporate earnings related to these factors. Expected loss estimates consider various factors including customer specific information impacting changes in risk ratings, projected delinquencies, and the impact of economic deterioration on borrowers’ liquidity and ability to repay. Generally, these credit quality factors continue to perform better than pre-pandemic levels despite the changing economic outlook. Consumer portfolios remain resilient despite rising delinquencies and lower collateral values. We anticipate some stress in commercial portfolios as the impact of rising interest rates filters through financials.

Total net charge-offs in the fourth quarter of 2022 were $578 million, compared with $162 million in the third quarter of 2022 and $132 million in the fourth quarter of 2021. Net charge-offs for the fourth quarter included $179 million of uncollectible acquired loans previously charged-off and acquisition alignment, and $189 million of losses on balance sheet optimization. The net charge-off ratio was 0.64 percent in the fourth quarter of 2022 (0.23 percent excluding the impact of the MUFG Union Bank acquisition-related items noted above), compared with 0.19 percent in the third quarter of 2022 and 0.17 percent in the fourth quarter of 2021. Net charge-offs, excluding the impact of the MUFG Union Bank acquisition-related items noted above, increased $48 million (29.6 percent) compared with the third quarter of 2022 and $78 million (59.1 percent) compared with the fourth quarter of 2021, reflecting higher charge-offs in most loan categories consistent with normalizing credit conditions.

The allowance for credit losses was $7,404 million at December 31, 2022, compared with $6,455 million at September 30, 2022, and $6,155 million at December 31, 2021. The allowance for credit losses at December 31, 2022, included the impact of MUFG Union Bank’s initial provision for credit losses of $662 million and $336 million of initial allowance recorded through purchase accounting. The increase on a linked quarter basis was driven by the MUFG Union Bank acquisition, and increasing economic uncertainty. The ratio of the allowance for credit losses to period-end loans was 1.91 percent at December 31, 2022, compared with 1.88 percent at September 30, 2022, and 1.97 percent at December 31, 2021. The ratio of the allowance for credit losses to nonperforming loans was 762 percent at December 31, 2022, compared with 1,025 percent at September 30, 2022, and 738 percent at December 31, 2021.

Nonperforming assets were $1,016 million at December 31, 2022, and included $329 million acquired from MUFG Union Bank. Nonperforming assets were $677 million at September 30, 2022, and $878 million at December 31, 2021. The ratio of nonperforming assets to loans and other real estate was 0.26 percent at December 31, 2022, compared with 0.20 percent at September 30, 2022, and 0.28 percent at December 31, 2021. The year-over-year and linked quarter increases in nonperforming assets reflected nonperforming assets acquired from MUFG Union Bank. The year-over-year increase was partially offset by decreases across all loan categories within the legacy portfolios, with the largest drivers in total commercial and total commercial real estate nonperforming loans. Accruing loans 90 days or more past due were $491 million at December 31, 2022, and included $22 million of accruing loans 90 days or more past due acquired from MUFG Union Bank, compared with $393 million at September 30, 2022, and $472 million at December 31, 2021.

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U.S. Bancorp Fourth Quarter 2022 Results
DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES
---	---	---	---	---	---	---	---	---	---	---
(Percent)	Dec 312022		Sep 302022		Jun 302022		Mar 312022		Dec 312021
Delinquent loan ratios - 90 days or more past due
Commercial		.07		.03		.07		.06		.04
Commercial real estate		.01		.05		.01		--		.03
Residential mortgages		.08		.10		.12		.18		.24
Credit card		.88		.74		.69		.74		.73
Other retail		.12		.11		.10		.11		.11
Total loans		.13		.11		.13		.14		.15
Delinquent loan ratios - 90 days or more past due and nonperforming loans
Commercial		.19		.12		.19		.21		.20
Commercial real estate		.62		.46		.53		.55		.76
Residential mortgages		.36		.35		.40		.45		.53
Credit card		.88		.74		.69		.74		.73
Other retail		.37		.32		.35		.37		.35
Total loans		.38		.30		.35		.38		.42
ASSET QUALITY (a)
---	---	---	---	---	---
( in millions)

Nonperforming loans
Commercial	139	92	116	139	$139
Lease financing	30	30	32	35	35
Total commercial	169	122	148	174	174
Commercial mortgages	251	110	147	178	213
Construction and development	87	57	59	38	71
Total commercial real estate	338	167	206	216	284
Residential mortgages	325	211	223	214	226
Credit card	1	--	--	--	--
Other retail	139	130	148	161	150
Total nonperforming loans	972	630	725	765	834
Other real estate	23	24	23	23	22
Other nonperforming assets	21	23	22	23	22
Total nonperforming assets	1,016	677	770	811	$878
Accruing loans 90 days or more past due	491	393	423	450	$472
Nonperforming assets to loans plus ORE (%)	.26	.20	.23	.25	.28
(a) Throughout this document, nonperforming assets and related<br>ratios do not include accruing loans 90 days or more past due

All values are in US Dollars.

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U.S. Bancorp Fourth Quarter 2022 Results
COMMON SHARES
---	---	---	---	---	---	---	---	---	---	---	---
(Millions)	4Q 2022		3Q 2022		2Q 2022		1Q 2022			4Q 2021
Beginning shares outstanding		1,486		1,486		1,486		1,484			1,483
Shares issued for stock incentive plans, acquisitions and other corporate purposes		45		--		--		3			1
Shares repurchased		--		--		--		(1	)		--
Ending shares outstanding		1,531		1,486		1,486		1,486			1,484
CAPITAL POSITION										Preliminary Data
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
($ in millions)	Dec 312022			Sep 302022			Jun 302022			Mar 312022			Dec 312021
Total U.S. Bancorp shareholders’ equity	$	50,766		$	47,513		$	48,605		$	51,200		$	54,918
Basel III Standardized Approach (a)
Common equity tier 1 capital	$	41,560		$	44,094		$	42,944		$	41,950		$	41,701
Tier 1 capital		48,813			51,346			50,195			49,198			48,516
Total risk-based capital		59,015			60,738			58,307			57,403			56,250
Common equity tier 1 capital ratio		8.4	%		9.7	%		9.7	%		9.8	%		10.0	%
Tier 1 capital ratio		9.8			11.2			11.4			11.5			11.6
Total risk-based capital ratio		11.9			13.3			13.2			13.4			13.4
Leverage ratio		7.9			8.7			8.6			8.6			8.6
Tangible common equity to tangible assets (b)		4.5			5.2			5.5			6.0			6.8
Tangible common equity to risk-weighted assets (b)		6.0			6.7			7.2			8.0			9.2
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the currentexpected credit losses methodology (b)		8.1			9.4			9.4			9.5			9.6
(a) Amounts and ratios calculated in accordance with transitional regulatory requirements<br>related to the current expected credit losses methodology
(b) See Non-GAAP Financial Measures reconciliation on<br>page 20

Total U.S. Bancorp shareholders’ equity was $50.8 billion at December 31, 2022, compared with $47.5 billion at September 30, 2022, and $54.9 billion at December 31, 2021. The Company suspended all common stock repurchases at the beginning of the third quarter of 2021, except for those done exclusively in connection with its stock-based compensation programs, due to its pending acquisition of MUFG Union Bank’s core regional banking franchise. The Company does not expect to commence repurchasing its common stock until its CET1 ratio approximates 9.0 percent.

All regulatory ratios continue to be in excess of “well-capitalized” requirements. The common equity tier 1 capital to risk-weighted assets ratio using the Basel III standardized approach was 8.4 percent at December 31, 2022, compared with 9.7 percent at September 30, 2022, and 10.0 percent at December 31, 2021. The common equity tier 1 capital to risk-weighted assets ratio, reflecting the full implementation of the current expected credit losses methodology was 8.1 percent at December 31, 2022, compared with 9.4 percent at September 30, 2022, and 9.6 percent at December 31, 2021.

LOGO

U.S. Bancorp Fourth Quarter 2022 Results
Investor Conference Call
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On Wednesday, January 25, 2023 at 8 a.m. CT, Chairman, President and Chief Executive Officer Andy Cecere and Vice Chair and Chief Financial Officer Terry Dolan will host a conference call to review the financial results. The live conference call will be available online or by telephone. To access the webcast and presentation, visit the U.S. Bancorp website at usbank.com and click on “About Us”, “Investor Relations” and “Webcasts & Presentations.” To access the conference call from locations within the United States and Canada, please dial 877-692-8955. Participants calling from outside the United States and Canada, please dial 234-720-6979. The PIN code for all participants is 6030554. For those unable to participate during the live call, a replay will be available at approximately 11 a.m. CT on Wednesday, January 25, 2023. To access the replay, please visit the U.S. Bancorp website at usbank.com and click on “About Us”, “Investor Relations” and “Webcasts & Presentations.”

About U.S. Bancorp

U.S. Bancorp, with approximately 77,000 employees and $675 billion in assets as of December 31, 2022, is the parent company of U.S. Bank National Association. The Minneapolis-based company serves millions of customers locally, nationally and globally through a diversified mix of businesses: Consumer and Business Banking; Payment Services; Corporate & Commercial Banking; and Wealth Management and Investment Services. MUFG Union Bank, consisting primarily of retail banking branches on the West Coast, joined U.S. Bancorp in 2022. The company has been recognized for its approach to digital innovation, social responsibility, and customer service, including being named one of the 2022 World’s Most Ethical Companies and Fortune’s most admired superregional bank. Learn more at usbank.com/about.

Forward-looking Statements

“Safe Harbor” Statement under 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 hereof. These forward-looking statements cover, among other things, future economic conditions and the anticipated future revenue, expenses, financial condition, asset quality, capital and liquidity levels, plans, prospects and operations of U.S. Bancorp. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “projects,” “forecasts,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.”

Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those set forth in forward-looking statements, including the following risks and uncertainties:

•	Deterioration in general business and economic conditions or turbulence in domestic or global<br>financial markets, which could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price<br>volatility;
•	Changes to statutes, regulations, or regulatory policies or practices, including capital and<br>liquidity requirements, and the enforcement and interpretation of such laws and regulations, and U.S. Bancorp’s ability to address or satisfy those requirements and other requirements or conditions imposed by regulatory entities;
---	---
•	Changes in interest rates;
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•	Increases in unemployment rates;
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•	Deterioration in the credit quality of its loan portfolios or in the value of the collateral<br>securing those loans;
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•	Risks related to originating and selling mortgages, including repurchase and indemnity demands, and<br>related to U.S. Bancorp’s role as a loan servicer;
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•	Impacts of current, pending or future litigation and governmental proceedings;
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•	Increased competition from both banks and non-banks;
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•	Effects of climate change and related physical and transition risks;
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•	Changes in customer behavior and preferences and the ability to implement technological changes to<br>respond to customer needs and meet competitive demands;
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•	Breaches in data security;
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•	Failures or disruptions in or breaches of U.S. Bancorp’s operational or security systems or<br>infrastructure, or those of third parties;
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LOGO

U.S. Bancorp Fourth Quarter 2022 Results
•	Failures to safeguard personal information;
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•	Impacts of pandemics, including the COVID-19 pandemic,<br>natural disasters, terrorist activities, civil unrest, international hostilities and geopolitical events;
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•	Impacts of supply chain disruptions, rising inflation, slower growth or a recession;
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•	Failure to execute on strategic or operational plans;
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•	Effects of mergers and acquisitions and related integration;
---	---
•	Effects of critical accounting policies and judgments;
---	---
•	Effects of changes in or interpretations of tax laws and regulations;
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•	Management’s ability to effectively manage credit risk, market risk, operational risk,<br>compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk; and
---	---
•	The risks and uncertainties more fully discussed in the section entitled “Risk Factors” of<br>U.S. Bancorp’s Form 10-K for the year ended December 31, 2021, and subsequent filings with the Securities and Exchange Commission.
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In addition, U.S. Bancorp’s acquisition of MUFG Union Bank presents risks and uncertainties, including, among others: the risk that the cost savings, any revenue synergies and other anticipated benefits of the acquisition may not be realized or may take longer than anticipated to be realized; and the possibility that the combination of MUFG Union Bank with U.S. Bancorp, including the integration of MUFG Union Bank, may be more costly or difficult to complete than anticipated or have unanticipated adverse results.

In addition, factors other than these risks also could adversely affect U.S. Bancorp’s results, and the reader should not consider these risks to be a complete set of all potential risks or uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date hereof, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.

LOGO

U.S. Bancorp Fourth Quarter 2022 Results
Non-GAAP FinancialMeasures
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In addition to capital ratios defined by banking regulators, 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
---	---
•	Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the<br>current expected credit losses methodology, and
---	---
•	Return on tangible common equity.
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These capital measures are viewed by management as useful additional methods of evaluating the Company’s utilization of its capital held and the level of capital available to withstand unexpected negative 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 capital measures are not defined in generally accepted accounting principles (“GAAP”), or are not currently effective or defined in banking regulations. In addition, certain of these measures differ from currently effective capital ratios defined by banking regulations principally in that the currently effective ratios, which are subject to certain transitional provisions, temporarily exclude the impact of the 2020 adoption of accounting guidance related to impairment of financial instruments based on the current expected credit losses methodology. As a result, these capital measures disclosed by the Company may be considered non-GAAP financial measures. Management believes this information helps investors assess trends in the Company’s capital adequacy.

The Company also discloses net interest income and related ratios and analysis on a taxable-equivalent basis, which may also be considered non-GAAP financial measures. The Company believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures, including the efficiency ratio, tangible efficiency ratio and net interest margin, utilize net interest income on a taxable-equivalent basis.

The adjusted return on average assets, adjusted return on average common equity, adjusted return on tangible common equity and adjusted diluted earnings per common share exclude notable items related to the acquisition of MUFG Union Bank. Management uses these measures in their analysis of the Company’s performance and believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods.

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.

LOGO

CONSOLIDATED STATEMENT OF INCOME
	Three Months Ended				Year Ended
(Dollars and Shares in Millions, Except Per Share Data)	December 31,				December 31,
(Unaudited)	2022		2021		2022		2021
Interest Income
Loans		4,532		2,635		13,603		10,747
Loans held for sale		38		56		201		232
Investment securities		988		624		3,378		2,365
Other interest income		416		40		763		143
Total interest income		5,974		3,355		17,945		13,487
Interest Expense
Deposits		1,081		75		1,872		320
Short-term borrowings		318		18		565		70
Long-term debt		282		139		780		603
Total interest expense		1,681		232		3,217		993
Net interest income		4,293		3,123		14,728		12,494
Provision for credit losses		1,192		(13		1,977		(1,173
Net interest income after provision for credit losses		3,101		3,136		12,751		13,667
Noninterest Income
Card revenue		384		382		1,512		1,507
Corporate payment products revenue		178		155		698		575
Merchant processing services		385		365		1,579		1,449
Trust and investment management fees		571		483		2,209		1,832
Service charges		314		345		1,298		1,338
Commercial products revenue		264		265		1,105		1,102
Mortgage banking revenue		104		298		527		1,361
Investment products fees		58		62		235		239
Securities gains (losses), net		(18		15		20		103
Other		(197		164		273		721
Total noninterest income		2,043		2,534		9,456		10,227
Noninterest Expense
Compensation and employee benefits		2,402		2,223		9,157		8,728
Net occupancy and equipment		290		268		1,096		1,048
Professional services		173		160		529		492
Marketing and business development		144		129		456		366
Technology and communications		459		443		1,726		1,728
Other intangibles		85		40		215		159
Merger and integration charges		90		--		329		--
Other		400		270		1,398		1,207
Total noninterest expense		4,043		3,533		14,906		13,728
Income before income taxes		1,101		2,137		7,301		10,166
Applicable income taxes		171		459		1,463		2,181
Net income		930		1,678		5,838		7,985
Net (income) loss attributable to noncontrolling interests		(5		(5		(13		(22
Net income attributable to U.S. Bancorp		925		1,673		5,825		7,963
Net income applicable to U.S. Bancorp common shareholders		853		1,582		5,501		7,605
Earnings per common share		.57		1.07		3.69		5.11
Diluted earnings per common share		.57		1.07		3.69		5.10
Dividends declared per common share		.48		.46		1.88		1.76
Average common shares outstanding		1,501		1,483		1,489		1,489
Average diluted common shares outstanding		1,501		1,484		1,490		1,490

All values are in US Dollars.

CONSOLIDATED ENDING BALANCE SHEET
(Dollars in Millions)	December 31,<br><br><br>2022		December 31,<br><br><br>2021
Assets
Cash and due from banks		53,542		28,905
Investment securities
Held-to-maturity		88,740		41,858
Available-for-sale		72,910		132,963
Loans held for sale		2,200		7,775
Loans
Commercial		135,690		112,023
Commercial real estate		55,487		39,053
Residential mortgages		115,845		76,493
Credit card		26,295		22,500
Other retail		54,896		61,959
Total loans		388,213		312,028
Less allowance for loan losses		(6,936		(5,724
Net loans		381,277		306,304
Premises and equipment		3,858		3,305
Goodwill		12,373		10,262
Other intangible assets		7,155		3,738
Other assets		52,750		38,174
Total assets		674,805		573,284
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing		137,743		134,901
Interest-bearing		387,233		321,182
Total deposits		524,976		456,083
Short-term borrowings		31,216		11,796
Long-term debt		39,829		32,125
Other liabilities		27,552		17,893
Total liabilities		623,573		517,897
Shareholders’ equity
Preferred stock		6,808		6,371
Common stock		21		21
Capital surplus		8,712		8,539
Retained earnings		71,901		69,201
Less treasury stock		(25,269		(27,271
Accumulated other comprehensive income (loss)		(11,407		(1,943
Total U.S. Bancorp shareholders’ equity		50,766		54,918
Noncontrolling interests		466		469
Total equity		51,232		55,387
Total liabilities and equity		674,805		573,284

All values are in US Dollars.

NON-GAAP FINANCIAL MEASURES
(Dollars in Millions, Unaudited)	December 31,<br><br><br>2022		September 30,<br><br><br>2022		June 30,<br><br><br>2022		March 31,<br><br><br>2022		December 31,<br><br><br>2021
Total equity		51,232		47,978		49,069		51,668		55,387
Preferred stock		(6,808		(6,808		(6,808		(6,808		(6,371
Noncontrolling interests		(466		(465		(464		(468		(469
Goodwill (net of deferred tax liability) (1)		(11,395		(9,165		(9,204		(9,304		(9,323
Intangible assets (net of deferred tax liability), other than mortgage servicing rights		(2,792		(735		(780		(762		(785
Tangible common equity (a)		29,771		30,805		31,813		34,326		38,439
Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements<br>related to the current expected credit losses methodology implementation		41,560		44,094		42,944		41,950		41,701
Adjustments (2)		(1,299		(1,300		(1,300		(1,298		(1,733
Common equity tier 1 capital, reflecting the full implementation of the current expected credit losses<br>methodology (b)		40,261		42,794		41,644		40,652		39,968
Total assets		674,805		600,973		591,381		586,517		573,284
Goodwill (net of deferred tax liability) (1)		(11,395		(9,165		(9,204		(9,304		(9,323
Intangible assets (net of deferred tax liability), other than mortgage servicing rights		(2,792		(735		(780		(762		(785
Tangible assets (c)		660,618		591,073		581,397		576,451		563,176
Risk-weighted assets, determined in accordance with transitional regulatory capital requirements related to<br>the current expected credit losses methodology implementation (d)		496,500		456,928		441,804		427,174		418,571
Adjustments (3)		(620		(337		(317		(351		(357
Risk-weighted assets, reflecting the full implementation of the current expected credit<br>losses<br>methodology (e)		495,880		456,591		441,487		426,823		418,214
Ratios*
Tangible common equity to tangible assets (a)/(c)		4.5		5.2		5.5		6.0		6.8
Tangible common equity to risk-weighted assets (a)/(d)		6.0		6.7		7.2		8.0		9.2
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current<br>expected credit losses methodology (b)/(e)		8.1		9.4		9.4		9.5		9.6
	Three Months Ended
	December 31,<br>2022		September 30,<br>2022		June 30,<br>2022		March 31,<br>2022		December 31,<br>2021
Net income applicable to U.S. Bancorp common shareholders		853		1,718		1,464		1,466		1,582
Intangibles amortization<br>(net-of-tax)		67		34		32		37		32
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization		920		1,752		1,496		1,503		1,614
Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangible<br>amortization (f)		3,650		6,951		6,000		6,096		6,403
Average total equity		49,731		50,284		49,633		53,934		55,875
Average preferred stock		(6,808		(6,808		(6,808		(6,619		(6,865
Average noncontrolling interests		(466		(464		(467		(468		(633
Average goodwill (net of deferred tax liability) (1)		(9,202		(9,192		(9,246		(9,320		(9,115
Average intangible assets (net of deferred tax liability), other than mortgage servicing rights		(1,637		(758		(783		(779		(656
Average tangible common equity (g)		31,618		33,062		32,329		36,748		38,606
Return on tangible common equity (f)/(g)		11.5		21.0		18.6		16.6		16.6
Net interest income		4,293		3,827		3,435		3,173		3,123
Taxable-equivalent adjustment (4)		32		30		29		27		27
Net interest income, on a taxable-equivalent basis		4,325		3,857		3,464		3,200		3,150
Net interest income, on a taxable-equivalent basis
(as calculated above)		4,325		3,857		3,464		3,200		3,150
Noninterest income		2,043		2,469		2,548		2,396		2,534
Less: Securities gains (losses), net		(18		1		19		18		15
Total net revenue, excluding net securities gains (losses) (h)		6,386		6,325		5,993		5,578		5,669
Noninterest expense (i)		4,043		3,637		3,724		3,502		3,533
Less: Intangibles amortization		85		43		40		47		40
Noninterest expense, excluding intangibles amortization (j)		3,958		3,594		3,684		3,455		3,493
Efficiency ratio (i)/(h)		63.3		57.5		62.1		62.8		62.3
Tangible efficiency ratio (j)/(h)		62.0		56.8		61.5		61.9		61.6

All values are in US Dollars.

*	Preliminary data. Subject to change prior to filings with applicable regulatory agencies. <br>
(1)	Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory<br>requirements.
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(2)	Includes the estimated increase in the allowance for credit losses related to the adoption of the current expected<br>credit losses methodology net of deferred taxes.
---	---
(3)	Includes the impact of the estimated increase in the allowance for credit losses related to the adoption of the current<br>expected credit losses methodology.
---	---
(4)	Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not<br>included for federal income tax purposes.
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NON-GAAP FINANCIAL MEASURES
	Three Months Ended
(Dollars in Millions, Unaudited)	December 31,<br>2022		September 30,<br>2022
Net income attributable to U.S. Bancorp		925		1,812
Less: Notable items (1)		(952		(33
Net income attributable to U.S. Bancorp, excluding notable items		1,877		1,845
Annualized net income attributable to U.S. Bancorp, excluding notable items (a)		7,447		7,320
Average assets (b)		622,064		588,764
Return on average assets, excluding notable items (a)/(b)		1.20		1.24
Net income applicable to U.S. Bancorp common shareholders		853		1,718
Less: Notable items, including the impact of earnings allocated to participating stock awards (1)		(948		(33
Net income applicable to U.S. Bancorp common shareholders, excluding notable items		1,801		1,751
Annualized net income applicable to U.S. Bancorp common shareholders, excluding notable items (c)		7,145		6,947
Average common equity (d)		42,457		43,012
Return on average common equity, excluding notable items (c)/(d)		16.8		16.2
Net interest income		4,293		3,827
Taxable-equivalent adjustment (2)		32		30
Net interest income, on a taxable-equivalent basis		4,325		3,857
Net interest income, on a taxable-equivalent basis (as calculated above)		4,325		3,857
Noninterest income		2,043		2,469
Less: Securities gains (losses), net		(18		1
Total net revenue, excluding net securities gains (losses)		6,386		6,325
Less: Notable items (1)		(399		--
Less: Securities (gains) losses, net included in notable items		18		--
Total net revenue, excluding net securities gains (losses) and notable items (e)		6,767		6,325
Noninterest expense		4,043		3,637
Less: Notable items (1)		90		42
Noninterest expense, excluding notable items (f)		3,953		3,595
Less: Intangibles amortization		85		43
Noninterest expense, excluding notable items and intangible amortization (g)		3,868		3,552
Efficiency ratio, excluding notable items (f)/(e)		58.4		56.8
Tangible efficiency ratio, excluding notable items (g)/(e)		57.2		56.2
Net income applicable to U.S. Bancorp common shareholders, excluding notable items (as calculated above)<br>(h)		1,801		1,751
Average diluted common shares outstanding (i)		1,501		1,486
Diluted earnings per common share, excluding notable items<br>(h)/(i)		1.20		1.18

All values are in US Dollars.

(1)	Notable items for the three months ended December 31, 2022 include the following:
-	$399 million ($297 million net-of-tax) of losses primarily related to interest rate hedging positions entered into after<br>regulatory approval was obtained to manage the impact of interest rate volatility on capital prior to closing the MUFG Union Bank acquisition.
---	---
-	$90 million ($67 million net-of-tax) of merger and integration charges.
---	---
-	$791 million ($588 million net-of-tax) of provision for credit losses related to initially providing for acquired loans as well<br>as charges related to the securitization of indirect automobile loans to optimize the balance sheet capital management.
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Notable items for the three months ended September 30, 2022 included $42 million ($33 million net-of-tax) of merger and integration charges.

(2)	Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not<br>included for federal income tax purposes.

NON-GAAP FINANCIAL MEASURES
(Dollars in Millions, Unaudited)	Three Months Ended<br>December 31,<br><br><br>2022
Net income applicable to U.S. Bancorp common shareholders		853
Intangibles amortization<br>(net-of-tax)		67
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization		920
Less: Notable items, including the impact of earnings allocated to participating stock awards (1)		(948
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization and notable<br>items		1,868
Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization<br>and notable items (a)		7,411
Average total equity		49,731
Average preferred stock		(6,808
Average noncontrolling interests		(466
Average goodwill (net of deferred tax liability) (2)		(9,202
Average intangible assets (net of deferred tax liability), other than mortgage servicing rights		(1,637
Average tangible common equity (b)		31,618
Return on tangible common equity, excluding notable items (a)/(b)		23.4
Net charge-offs		578
Less: Notable items (3)		368
Net charge-offs, excluding notable items		210
Annualized net charge-offs, excluding notable items (c)		833
Average loan balances (d)		359,811
Net charge-off ratio, excluding notable items (c)/(d)		.23
Income before taxes		1,101
Taxable-equivalent adjustment (4)		32
Less: Notable items (1)		(1,280
Income before taxes (taxable-equivalent basis), excluding notable items (e)		2,413
Income taxes		171
Taxable-equivalent adjustment (4)		32
Less: Notable items (1)		(328
Income taxes and taxable-equivalent adjustment, excluding notable items (f)		531
Income tax rate (taxable-equivalent basis), excluding notable<br>items (f)/(e)		22.0

All values are in US Dollars.

(1)	Notable items for the three months ended December 31, 2022 include the following: <br>
-	$399 million ($297 million net-of-tax) of losses primarily related to interest rate hedging positions entered into after<br>regulatory approval was obtained to manage the impact of interest rate volatility on capital prior to closing the MUFG Union Bank acquisition.
---	---
-	$90 million ($67 million net-of-tax) of merger and integration charges.
---	---
-	$791 million ($588 million net-of-tax) of provision for credit losses related to initially providing for acquired loans as well<br>as charges related to the securitization of indirect automobile loans to optimize the balance sheet capital management.
---	---
(2)	Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory<br>requirements.
---	---
(3)	Notable items for the three months ended December 31, 2022 included net charge-offs of $179 million,<br>reflecting uncollectible acquired loans previously charged-off and acquisition alignment, and $189 million loss on balance sheet optimization.
---	---
(4)	Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not<br>included for federal income tax purposes.
---	---

NON-GAAP FINANCIAL MEASURES
	Year Ended
(Dollars in Millions, Unaudited)	December 31,2022		December 31,2021		PercentChange
Net income applicable to U.S. Bancorp common shareholders		5,501		7,605
Intangibles amortization<br>(net-of-tax)		170		126
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization (a)		5,671		7,731
Average total equity		50,882		54,442
Average preferred stock		(6,761		(6,255
Average noncontrolling interests		(466		(632
Average goodwill (net of deferred tax liability) (1)		(9,240		(9,037
Average intangible assets (net of deferred tax liability), other than mortgage servicing rights		(991		(650
Average tangible common equity (b)		33,424		37,868
Return on tangible common equity (a)/(b)		17.0		20.4
Net interest income		14,728		12,494
Taxable-equivalent adjustment (2)		118		106
Net interest income, on a taxable-equivalent basis		14,846		12,600
Net interest income, on a taxable-equivalent basis (as calculated above)		14,846		12,600
Noninterest income		9,456		10,227
Less: Securities gains (losses), net		20		103
Total net revenue, excluding net securities gains (losses) (c)		24,282		22,724
Noninterest expense (d)		14,906		13,728
Less: Intangibles amortization		215		159
Noninterest expense, excluding intangibles amortization (e)		14,691		13,569
Efficiency ratio (d)/(c)		61.4		60.4
Tangible efficiency ratio (e)/(c)		60.5		59.7
Net interest income, on a taxable-equivalent basis (as calculated above)		14,846		12,600
Noninterest income		9,456		10,227
Total net revenue		24,302		22,827		6.5	%(f)
Less: MUFG Union Bank net revenue		302		--
Less: Notable items (3)		(399		--
Total net revenue, excluding MUFG Union Bank and notable items		24,399		22,827		6.9	%(g)
Noninterest expense		14,906		13,728		8.6	%(h)
Less: MUFG Union Bank noninterest expense		221		--
Less: Notable items (3)		329		--
Total noninterest expense, excluding MUFG Union Bank and notable items		14,356		13,728		4.6	%(i)
Operating leverage (f) - (h)		(2.1
Operating leverage, excluding MUFG Union Bank and notable items (g) - (i)		2.3
Net income applicable to U.S. Bancorp common shareholders		5,501
Less: Notable items, including the impact of earnings allocated to participating stock awards (3)		(1,134
Net income applicable to U.S. Bancorp common shareholders, excluding notable items (j)		6,635
Average diluted common shares outstanding (k)		1,490
Diluted earnings per common share, excluding notable items<br>(j)/(k)		4.45

All values are in US Dollars.

(1)	Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory<br>requirements.
(2)	Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not<br>included for federal income tax purposes.
---	---
(3)	Notable items for the year ended December 31, 2022 include the following: <br>
---	---
-	$399 million ($297 million net-of-tax) of losses primarily related to interest rate hedging positions entered into after<br>regulatory approval was obtained to manage the impact of interest rate volatility on capital prior to closing the MUFG Union Bank acquisition.
---	---
-	$329 million ($253 million net-of-tax) of merger and integration charges.
---	---
-	$791 million ($588 million net-of-tax) of provision for credit losses related to initially providing for acquired loans as well<br>as charges related to the securitization of indirect automobile loans to optimize the balance sheet capital management.
---	---

LOGO

LINE OF BUSINESS FINANCIALPERFORMANCE											Preliminary data
($ in millions)	Net Income Attributableto U.S. Bancorp										Net Income Attributable<br>to U.S. Bancorp
Business Line	4Q2022		3Q2022					4Q22 vs4Q21			Full Year2022		Full Year 2021
Corporate and Commercial Banking		542		504	308	7.5			76.0			1,841		1,564	17.7
Consumer and Business Banking		462		460	481	.4			(4.0	)		1,806		2,357	(23.4	)
Wealth Management and Investment Services		395		397	205	(.5	)		92.7			1,313		842	55.9
Payment Services		229		330	367	(30.6	)		(37.6	)		1,324		1,704	(22.3	)
Treasury and Corporate Support		(703		121	312	nm			nm			(459		1,496	nm
Consolidated Company		925		1,812	1,673	(49.0	)		(44.7	)		5,825		7,963	(26.8	)
	Income Before Provisionand Taxes										Income Before Provision<br>and Taxes
	4Q2022		3Q2022					4Q22 vs4Q21			Full Year2022		Full Year 2021
Corporate and Commercial Banking		701		740	509	(5.3	)		37.7			2,604		2,151	21.1
Consumer and Business Banking		831		654	640	27.1			29.8			2,636		3,006	(12.3	)
Wealth Management and Investment Services		529		533	278	(.8	)		90.3			1,760		1,130	55.8
Payment Services		649		725	622	(10.5	)		4.3			2,746		2,621	4.8
Treasury and Corporate Support		(385		37	102	nm			nm			(350		191	nm
Consolidated Company		2,325		2,689	2,151	(13.5	)		8.1			9,396		9,099	3.3

All values are in US Dollars.

Lines of Business

The Company’s major lines of business are Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment 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. Business line results are derived from the Company’s business unit profitability reporting systems by specifically attributing managed balance sheet assets, deposits and other liabilities and their related income or 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 2022, certain organization and methodology changes were made and, accordingly, prior period results were restated and presented on a comparable basis.

LOGO

CORPORATE ANDCOMMERCIAL BANKING	Preliminary data
( in millions)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		3Q<br><br><br>2022					4Q22 vs<br><br><br>4Q21			Full Year<br><br><br>2022
Condensed Income Statement
Net interest income (taxable-equivalent<br>basis)	986		938	694	5.1			42.1			3,468	2,853	21.6
Noninterest income	235		255	251	(7.8	)		(6.4	)		1,008	1,039	(3.0	)
Securities gains (losses), net	--		--	--	--			--			--	--	--
Total net revenue	1,221		1,193	945	2.3			29.2			4,476	3,892	15.0
Noninterest expense	510		453	436	12.6			17.0			1,862	1,741	7.0
Other intangibles	10		--	--	nm			nm			10	--	nm
Total noninterest expense	520		453	436	14.8			19.3			1,872	1,741	7.5
Income before provision and taxes	701		740	509	(5.3	)		37.7			2,604	2,151	21.1
Provision for credit losses	(22		68	98	nm			nm			149	65	nm
Income before income taxes	723		672	411	7.6			75.9			2,455	2,086	17.7
Income taxes and taxable-equivalent<br>adjustment	181		168	103	7.7			75.7			614	522	17.6
Net income	542		504	308	7.5			76.0			1,841	1,564	17.7
Net (income) loss attributable to noncontrolling<br>interests	--		--	--	--			--			--	--	--
Net income attributable to U.S. Bancorp	542		504	308	7.5			76.0			1,841	1,564	17.7
Average Balance Sheet Data
Loans	140,713		131,578	106,491	6.9			32.1			127,916	103,404	23.7
Other earning assets	4,786		4,506	4,690	6.2			2.0			4,532	4,537	(.1	)
Goodwill	1,922		1,912	1,912	.5			.5			1,915	1,715	11.7
Other intangible assets	215		3	4	nm			nm			57	5	nm
Assets	159,802		147,635	118,274	8.2			35.1			143,370	115,423	24.2
Noninterest-bearing deposits	54,591		53,280	66,292	2.5			(17.7	)		57,451	61,991	(7.3	)
Interest-bearing deposits	107,317		100,407	75,621	6.9			41.9			97,169	71,711	35.5
Total deposits	161,908		153,687	141,913	5.3			14.1			154,620	133,702	15.6
Total U.S. Bancorp shareholders’ equity	15,267		14,607	13,685	4.5			11.6			14,403	13,906	3.6

All values are in US Dollars.

Corporate and Commercial Banking offers lending, equipment finance and small-ticket leasing, depository services, treasury management, capital markets services, international trade services and other financial services to middle market, large corporate, commercial real estate, financial institution, non-profit and public sector clients.

Corporate and Commercial Banking generated $701 million of income before provision and taxes in the fourth quarter of 2022, compared with $509 million in the fourth quarter of 2021, and contributed $542 million of the Company’s net income in the fourth quarter of 2022. The provision for credit losses decreased $120 million compared with the fourth quarter of 2021 primarily due to slower legacy Company loan balance growth in the current year quarter, partially offset by the impact of the MUFG Union Bank acquisition. Total net revenue was $276 million (29.2 percent) higher due to an increase of $292 million (42.1 percent) in net interest income, partially offset by a decrease of $16 million (6.4 percent) in total noninterest income. Net interest income increased primarily due to higher loan balances and the impact of higher rates on the margin benefit from deposits, partially offset by lower spreads on loans and lower noninterest-bearing deposits. Total noninterest income decreased primarily due to lower commercial products revenue due to lower capital markets revenue net of higher trading revenue as well as lower service charges driven by higher earnings credits. Total noninterest expense increased $84 million (19.3 percent) compared with a year ago primarily due to higher FDIC insurance expense and higher net shared services expense driven by investment in support of business growth and the impacts of the MUFG Union Bank acquisition including intangible amortization driven by the core deposit intangible.

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CONSUMER AND BUSINESS<br>BANKING
( in millions)
						4Q22 vs4Q21			Full Year<br><br><br>2022
Condensed Income Statement
Net interest income (taxable-equivalent<br>basis)	2,072	1,724	1,504	20.2			37.8			6,904	6,085	13.5
Noninterest income	364	337	581	8.0			(37.3	)		1,556	2,496	(37.7	)
Securities gains (losses), net	--	--	--	--			--			--	--	--
Total net revenue	2,436	2,061	2,085	18.2			16.8			8,460	8,581	(1.4	)
Noninterest expense	1,573	1,404	1,442	12.0			9.1			5,783	5,563	4.0
Other intangibles	32	3	3	nm			nm			41	12	nm
Total noninterest expense	1,605	1,407	1,445	14.1			11.1			5,824	5,575	4.5
Income before provision and taxes	831	654	640	27.1			29.8			2,636	3,006	(12.3	)
Provision for credit losses	215	40	(1)	nm			nm			228	(136)	nm
Income before income taxes	616	614	641	.3			(3.9	)		2,408	3,142	(23.4	)
Income taxes and taxable-equivalent<br>adjustment	154	154	160	--			(3.8	)		602	785	(23.3	)
Net income	462	460	481	.4			(4.0	)		1,806	2,357	(23.4	)
Net (income) loss attributable to noncontrolling<br>interests	--	--	--	--			--			--	--	--
Net income attributable to U.S. Bancorp	462	460	481	.4			(4.0	)		1,806	2,357	(23.4	)
Average Balance Sheet Data
Loans	155,173	143,022	140,630	8.5			10.3			145,079	140,890	3.0
Other earning assets	2,485	3,043	6,570	(18.3	)		(62.2	)		3,117	8,093	(61.5	)
Goodwill	3,255	3,241	3,262	.4			(.2	)		3,249	3,429	(5.2	)
Other intangible assets	4,584	3,726	2,966	23.0			54.6			3,785	2,761	37.1
Assets	170,688	158,475	159,333	7.7			7.1			160,713	161,385	(.4	)
Noninterest-bearing deposits	35,708	31,193	33,360	14.5			7.0			32,256	33,063	(2.4	)
Interest-bearing deposits	171,258	166,223	162,132	3.0			5.6			167,938	157,592	6.6
Total deposits	206,966	197,416	195,492	4.8			5.9			200,194	190,655	5.0
Total U.S. Bancorp shareholders’ equity	13,105	12,468	12,212	5.1			7.3			12,550	12,319	1.9

All values are in US Dollars.

Consumer and Business Banking comprises consumer banking, small business banking and consumer lending. Products and services are delivered through banking offices, telephone servicing and sales, on-line services, direct mail, ATM processing, mobile devices, distributed mortgage loan officers, and intermediary relationships including auto dealerships, mortgage banks, and strategic business partners.

Consumer and Business Banking generated $831 million of income before provision and taxes in the fourth quarter of 2022, compared with $640 million in the fourth quarter of 2021, and contributed $462 million of the Company’s net income in the fourth quarter of 2022. The provision for credit losses increased $216 million compared with prior year due to the impacts of balance sheet optimization and more favorable credit trends in the prior year quarter. Total net revenue was higher by $351 million (16.8 percent) due to an increase of $568 million (37.8 percent) in net interest income, partially offset by a decrease in total noninterest income of $217 million (37.3 percent). Net interest income reflected the favorable impact of higher rates on the margin benefit from deposits, partially offset by lower spreads on loans and lower loan fees. Total noninterest income decreased primarily due to lower mortgage banking revenue reflecting lower application volume, lower related gain on sale margins and fewer sales of loans. Noninterest income was also adversely impacted by lower residual gains on vehicle sales and the impact of pricing changes on deposit service charges. Total noninterest expense increased $160 million (11.1 percent) due to increases in net shared services expense due to investments in digital capabilities and the impact of the MUFG Union Bank acquisition, including intangible amortization driven by the core deposit intangible, as well as lower capitalized loan costs driven by lower mortgage production, partially offset by lower compensation expense and related loan expenses due to lower mortgage production.

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WEALTH MANAGEMENT AND INVESTMENTSERVICES	Preliminary data
( in millions)
---	---	---	---	---	---	---	---	---	---	---	---	---	---
						4Q22 vs<br><br><br>4Q21			Full Year<br><br><br>2022
Condensed Income Statement
Net interest income (taxable-equivalent<br>basis)	522	475	250	9.9			nm			1,624	1,002	62.1
Noninterest income	654	651	583	.5			12.2			2,553	2,222	14.9
Securities gains (losses), net	--	--	--	--			--			--	--	--
Total net revenue	1,176	1,126	833	4.4			41.2			4,177	3,224	29.6
Noninterest expense	639	587	551	8.9			16.0			2,390	2,079	15.0
Other intangibles	8	6	4	33.3			nm			27	15	80.0
Total noninterest expense	647	593	555	9.1			16.6			2,417	2,094	15.4
Income before provision and taxes	529	533	278	(.8	)		90.3			1,760	1,130	55.8
Provision for credit losses	2	3	5	(33.3	)		(60.0	)		9	7	28.6
Income before income taxes	527	530	273	(.6	)		93.0			1,751	1,123	55.9
Income taxes and taxable-equivalent<br>adjustment	132	133	68	(.8	)		94.1			438	281	55.9
Net income	395	397	205	(.5	)		92.7			1,313	842	55.9
Net (income) loss attributable to noncontrolling<br>interests	--	--	--	--			--			--	--	--
Net income attributable to U.S. Bancorp	395	397	205	(.5	)		92.7			1,313	842	55.9
Average Balance Sheet Data
Loans	23,705	22,871	19,620	3.6			20.8			22,410	18,095	23.8
Other earning assets	334	249	229	34.1			45.9			273	242	12.8
Goodwill	1,701	1,700	1,656	.1			2.7			1,720	1,628	5.7
Other intangible assets	356	311	130	14.5			nm			308	84	nm
Assets	27,436	26,439	22,970	3.8			19.4			26,036	21,303	22.2
Noninterest-bearing deposits	22,594	23,851	29,314	(5.3	)		(22.9	)		24,721	24,663	.2
Interest-bearing deposits	78,236	73,229	74,620	6.8			4.8			73,461	76,000	(3.3	)
Total deposits	100,830	97,080	103,934	3.9			(3.0	)		98,182	100,663	(2.5	)
Total U.S. Bancorp shareholders’ equity	3,759	3,726	3,318	.9			13.3			3,675	3,154	16.5

All values are in US Dollars.

Wealth Management and Investment Services provides private banking, financial advisory services, investment management, retail brokerage services, insurance, trust, custody and fund servicing through four businesses: Wealth Management, Global Corporate Trust & Custody, U.S. Bancorp Asset Management and Fund Services.

Wealth Management and Investment Services generated $529 million of income before provision and taxes in the fourth quarter of 2022, compared with $278 million in the fourth quarter of 2021, and contributed $395 million of the Company’s net income in the fourth quarter of 2022. The provision for credit losses decreased slightly compared with the prior year quarter. Total net revenue increased $343 million (41.2 percent) year-over-year reflecting an increase of $272 million in net interest income and $71 million (12.2 percent) in total noninterest income. Net interest income increased primarily due to the favorable impact of higher rates on the margin benefit from deposits. Total noninterest income increased primarily driven by higher trust and investment management fees reflecting lower money market fund fee waivers and the impact of the PFM acquisition, partially offset by the impact of unfavorable market conditions. Total noninterest expense increased $92 million (16.6 percent) compared with the fourth quarter of 2021 reflecting increasing compensation costs, higher net shared services expense driven by investment in support of business growth and the impact of the MUFG Union Bank acquisition. Compensation expense increased as a result of merit, the PFM acquisition in late 2021, and core business growth.

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PAYMENT SERVICES	Preliminary data
( in millions)
---	---	---	---	---	---	---	---	---	---	---	---	---	---
						4Q22 vs<br><br><br>4Q21			Full Year<br><br><br>2022
Condensed Income Statement
Net interest income (taxable-equivalent<br>basis)	631	627	617	.6			2.3			2,498	2,457	1.7
Noninterest income	952	995	906	(4.3	)		5.1			3,799	3,550	7.0
Securities gains (losses), net	--	--	--	--			--			--	--	--
Total net revenue	1,583	1,622	1,523	(2.4	)		3.9			6,297	6,007	4.8
Noninterest expense	900	863	868	4.3			3.7			3,415	3,254	4.9
Other intangibles	34	34	33	--			3.0			136	132	3.0
Total noninterest expense	934	897	901	4.1			3.7			3,551	3,386	4.9
Income before provision and taxes	649	725	622	(10.5	)		4.3			2,746	2,621	4.8
Provision for credit losses	344	285	133	20.7			nm			980	349	nm
Income before income taxes	305	440	489	(30.7	)		(37.6	)		1,766	2,272	(22.3	)
Income taxes and taxable-equivalent<br>adjustment	76	110	122	(30.9	)		(37.7	)		442	568	(22.2	)
Net income	229	330	367	(30.6	)		(37.6	)		1,324	1,704	(22.3	)
Net (income) loss attributable to noncontrolling<br>interests	--	--	--	--			--			--	--	--
Net income attributable to U.S. Bancorp	229	330	367	(30.6	)		(37.6	)		1,324	1,704	(22.3	)
Average Balance Sheet Data
Loans	37,023	35,819	32,351	3.4			14.4			34,627	30,856	12.2
Other earning assets	110	392	356	(71.9	)		(69.1	)		634	93	nm
Goodwill	3,284	3,292	3,219	(.2	)		2.0			3,305	3,184	3.8
Other intangible assets	387	405	473	(4.4	)		(18.2	)		423	507	(16.6	)
Assets	42,699	42,090	38,280	1.4			11.5			41,109	36,549	12.5
Noninterest-bearing deposits	3,265	3,312	4,247	(1.4	)		(23.1	)		3,410	4,861	(29.8	)
Interest-bearing deposits	152	171	155	(11.1	)		(1.9	)		162	145	11.7
Total deposits	3,417	3,483	4,402	(1.9	)		(22.4	)		3,572	5,006	(28.6	)
Total U.S. Bancorp shareholders’ equity	8,544	8,257	7,936	3.5			7.7			8,235	7,642	7.8

All values are in US Dollars.

Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate, government and purchasing card services, consumer lines of credit and merchant processing.

Payment Services generated $649 million of income before provision and taxes in the fourth quarter of 2022, compared with $622 million in the fourth quarter of 2021, and contributed $229 million of the Company’s net income in the fourth quarter of 2022. The provision for credit losses increased $211 million from a year ago primarily due to the impacts of increasing delinquency rates, along with stronger growth in loan balances. Total net revenue increased $60 million (3.9 percent) due to higher net interest income of $14 million (2.3 percent) and higher total noninterest income of $46 million (5.1 percent). Net interest income increased primarily due to higher loan yields driven by higher interest rates net of lower customer revolve rates, higher loan balances, and loan fees, mostly offset by higher funding costs. Total noninterest income increased year-over-year mainly due to continued strengthening of consumer and business spending across most sectors. As a result, there was strong growth in corporate payment products revenue driven by improving business spending across all product groups. In addition, merchant processing services revenue increased due to higher sales volume and higher merchant fees, partially offset by the impact of foreign currency rate changes in Europe. Total noninterest expense increased $33 million (3.7 percent) reflecting higher net shared services expense driven by investment in infrastructure and technology development, in addition to higher compensation expense due to merit and core business growth.

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TREASURY AND CORPORATESUPPORT	Preliminary data
( in millions)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		3Q<br><br><br>2022		4Q<br><br><br>2021				4Q22 vs<br><br><br>4Q21			Full Year<br><br><br>2022		Full Year<br><br><br>2021
Condensed Income Statement
Net interest income (taxable-equivalent<br>basis)	114		93		85	22.6			34.1			352		203	73.4
Noninterest income	(144		230		198	nm			nm			520		817	(36.4	)
Securities gains (losses), net	(18		1		15	nm			nm			20		103	(80.6	)
Total net revenue	(48		324		298	nm			nm			892		1,123	(20.6	)
Noninterest expense	336		287		196	17.1			71.4			1,241		932	33.2
Other intangibles	1		--		--	nm			nm			1		--	nm
Total noninterest expense	337		287		196	17.4			71.9			1,242		932	33.3
Income (loss) before provision and taxes	(385		37		102	nm			nm			(350		191	nm
Provision for credit losses	653		(34		(248)	nm			nm			611		(1,458)	nm
Income (loss) before income taxes	(1,038		71		350	nm			nm			(961		1,649	nm
Income taxes and taxable-equivalent<br>adjustment	(340		(54		33	nm			nm			(515		131	nm
Net income (loss)	(698		125		317	nm			nm			(446		1,518	nm
Net (income) loss attributable to noncontrolling<br>interests	(5		(4		(5)	(25.0	)		--			(13		(22)	40.9
Net income (loss) attributable to U.S.<br>Bancorp	(703)		121		312	nm			nm			(459		1,496	nm
Average Balance Sheet Data
Loans	3,197		3,488		3,663	(8.3	)		(12.7	)		3,541		3,720	(4.8	)
Other earning assets	205,152		196,698		207,935	4.3			(1.3	)		203,214		196,211	3.6
Goodwill	--		--		--	--			--			--		--	--
Other intangible assets	18		--		--	nm			nm			4		--	nm
Assets	221,439		214,125		233,502	3.4			(5.2	)		220,921		221,872	(.4	)
Noninterest-bearing deposits	2,754		2,408		2,723	14.4			1.1			2,556		2,626	(2.7	)
Interest-bearing deposits	5,959		2,695		1,374	nm			nm			3,260		1,629	nm
Total deposits	8,713		5,103		4,097	70.7			nm			5,816		4,255	36.7
Total U.S. Bancorp shareholders’ equity	8,590		10,762		18,091	(20.2	)		(52.5	)		11,553		16,789	(31.2	)

All values are in US Dollars.

Treasury and Corporate Support includes the Company’s investment portfolios, funding, capital management, interest rate risk management, income taxes not allocated to the business lines, including most investments in tax-advantaged projects, and the residual aggregate of those expenses associated with corporate activities that are managed on a consolidated basis.

Treasury and Corporate Support generated a $385 million loss before provision and taxes in the fourth quarter of 2022, compared with $102 million of income before provision and taxes in the fourth quarter of 2021, and recorded a net loss of $703 million in the fourth quarter of 2022. The provision for credit losses increased $901 million primarily due to the initial provision for credit losses recorded in the fourth quarter of 2022 related to the MUFG Union Bank acquisition as well as continued economic uncertainty in the current quarter relative to the reduction in the allowance for credit losses associated with improving economic conditions in the fourth quarter of 2021. Total net revenue was lower by $346 million due to a decrease of $375 million in total noninterest income, partially offset by an increase of $29 million (34.1 percent) in net interest income. Net interest income increased primarily due to the acquisition of MUFG Union Bank, partially offset by higher funding costs. The decrease in total noninterest income was primarily due to the impacts of balance sheet optimization associated with the acquisition of MUFG Union Bank. Total noninterest expense increased $141 million (71.9 percent) primarily due to merger and integration-related charges related to the acquisition of MUFG Union Bank, other accrued liabilities, and higher compensation expense reflecting merit, hiring to support business growth, core business growth and higher production incentives, partially offset by lower net shared services costs. Income taxes are assessed to each line of business at a managerial tax rate of 25.0 percent with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in Treasury and Corporate Support.

LOGO

EX-99.2

U.S. Bancorp 4Q22 Earnings Conference Call January 25, 2023 Exhibit 99.2

Forward-looking Statements and Additional Information The following information appears in accordance with the Private Securities Litigation Reform Act of 1995: This presentation 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 hereof. These forward-looking statements cover, among other things, future economic conditions and the anticipated future revenue, expenses, financial condition, asset quality, capital and liquidity levels, plans, prospects and operations of U.S. Bancorp. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “projects,” “forecasts,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those set forth in forward-looking statements, including the following risks and uncertainties: deterioration in general business and economic conditions or turbulence in domestic or global financial markets, which could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price volatility; changes to statutes, regulations, or regulatory policies or practices, including capital and liquidity requirements, and the enforcement and interpretation of such laws and regulations, and U.S. Bancorp’s ability to address or satisfy those requirements and other requirements or conditions imposed by regulatory entities; changes in interest rates; increases in unemployment rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; risks related to originating and selling mortgages, including repurchase and indemnity demands, and related to U.S. Bancorp’s role as a loan servicer; impacts of current, pending or future litigation and governmental proceedings; increased competition from both banks and non-banks; effects of climate change and related physical and transition risks; changes in customer behavior and preferences and the ability to implement technological changes to respond to customer needs and meet competitive demands; breaches in data security; failures or disruptions in or breaches of U.S. Bancorp’s operational or security systems or infrastructure, or those of third parties; failures to safeguard personal information; impacts of pandemics, including the COVID-19 pandemic, natural disasters, terrorist activities, civil unrest, international hostilities and geopolitical events; impacts of supply chain disruptions, rising inflation, slower growth or a recession; failure to execute on strategic or operational plans; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; effects of changes in or interpretations of tax laws and regulations; management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk; and the risks and uncertainties more fully discussed in the section entitled “Risk Factors” of U.S. Bancorp’s Form 10-K for the year ended December 31, 2021, and subsequent filings with the Securities and Exchange Commission. In addition, U.S. Bancorp’s acquisition of MUFG Union Bank presents risks and uncertainties, including, among others: the risk that the cost savings, any revenue synergies and other anticipated benefits of the acquisition may not be realized or may take longer than anticipated to be realized; and the possibility that the combination of MUFG Union Bank with U.S. Bancorp, including the integration of MUFG Union Bank, may be more costly or difficult to complete than anticipated or have unanticipated adverse results. In addition, factors other than these risks also could adversely affect U.S. Bancorp’s results, and the reader should not consider these risks to be a complete set of all potential risks or uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date hereof, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events. This presentation includes non-GAAP financial measures to describe U.S. Bankcorp’s performance. The calculations of these measures are provided in the Appendix. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

4Q22 Highlights Successful Acquisition of Union Bank Closed transaction December 1st; Conversion expected over Memorial Day weekend Positive operating leverage of 230bps1,2,3 Strong financial performance Solid pre-provision earnings growth as adjusted for notable items1, driven by net interest income and wider net interest margin Superior credit quality Normalizing but still strong credit quality metrics Healthy capital levels Common equity tier 1 capital ratio reflecting Basel III standardized approach of 8.4% as of December 31 1 Adjusted for notable items (shown on slide 8) which include acquisition impacts related to balance sheet optimization, merger & integration charges, and provision for credit losses 2 Non-GAAP; see slides 29, 30 and 32 for calculations 3 Legacy basis

4Q22 Highlights 1 Adjusted for notable items (shown on slide 8) which include acquisition impacts related to balance sheet optimization, merger & integration charges, and provision for credit losses 2 Non-GAAP; see slides 29 to 32 for calculations 3Taxable-equivalent basis; see slide 29 for calculation 4 Common equity tier 1 capital to risk-weighted assets, reflecting Basel III standardized with 5 year CECL transition 5 Earnings returned (millions) = total common dividends paid and aggregate value of common shares repurchased

Performance Ratios Return on Average Assets Efficiency Ratio1 & Net Interest Margin2 Return on Average Common Equity Return on Tangible Common Equity1 1 Non-GAAP; see slides 29 and 30 for calculations 2 Net interest margin on a taxable-equivalent basis 3 Non-GAAP; see slides 29 and 30 for calculations; Adjusted for notable items (shown on slide 8) which include acquisition impacts related to balance sheet optimization, merger & integration charges, and provision for credit losses Adjusted for notable items Adjusted for notable items Adjusted for notable items Adjusted for notable items

Bolstering Our Scale with Union Union Bank Added: Consumer Accounts ~1 Million Assets1 Deposits1 Loans1 Business Banking Clients ~190,000 Commercial Relationships ~700 High Net Worth / Affluent Households ~50,000 Branches Bolstering our California Market Share: California deposit market share is now #5 from #10 USB is now the #1 SBA lender in California 280 new branches in California 296 Legacy Union Bank Investment Securities1,2 $ in billions 1 End of period balances 2 Balances on an amortized cost basis which excludes unrealized gains (losses)

4Q22 Earnings Summary – Key Notable Items Balance sheet optimization Sale of acquired loans not aligned with credit risk profile, repositioning of the investment portfolio and sale of certain equity investments Losses related to interest rate hedging positions to minimize impact of interest rate volatility on capital Merger & integration charges Charges reflect deal closing costs, professional services and employee-related costs Provision for credit losses Acquisition impact of initial provision for credit losses of $662m Additional provision impact of $129m related to the securitization of legacy indirect automobile loans Union Bank Acquisition Impacts: Reported diluted earnings per share of $0.57 or $1.20, as adjusted Reported earnings include notable items that impacted results by $(0.63) per share 1 Adjusted for notable items (shown on slide 8) which include acquisition impacts related to balance sheet optimization, merger & integration charges, and provision for credit losses 2 Excludes $5m of net income attributable to noncontrolling interest on Legacy

4Q22 Earnings Summary - Detail + = Union Bank contributed $302 million of revenue and $0.03 earnings per share Noninterest expense includes $42 million of intangibles amortization related to Union Bank 1 Adjusted for notable items which include acquisition impacts related to balance sheet optimization, merger & integration charges, and provision for credit losses 2 Taxable-equivalent basis; see slide 29 for calculation 3 Non-GAAP; see slide 29 for calculations

End of Period Loan Composition Total 4Q22 Loan Balance Activity Legacy Combined $ in billions 1 Mark-to-market purchase accounting adjustments

End of Period Deposit Composition Total 4Q22 Deposit Balance Activity Legacy Combined $ in billions 1 Mark-to-market purchase accounting adjustments

End of Period Securities Portfolio Composition1 Total 4Q22 Investment Securities Activity Legacy Combined $ in billions 1 Balances on an amortized cost basis which excludes unrealized gains (losses) 2 Mark-to-market purchase accounting adjustments

Net Revenue Highlights Net interest income increased over prior year for the legacy Company primarily due to the impact of rising interest rates on earning assets and solid loan growth Legacy adjusted noninterest income is lower vs. prior year driven by lower mortgage banking revenue and service charges. Legacy adjusted noninterest income is lower on a linked quarter basis driven by seasonally lower payment services revenue and lower commercial products revenue. Acquisition of Union Bank added $302m of revenue, as adjusted, for the quarter $ in millions Payments = card, corporate payment products and merchant processing All other = commercial products, investment products fees, securities gains (losses) and other 1 Adjusted for notable items of the impact of balance sheet optimization in 4Q22 of $315 million for Legacy and $84 million for Union Bank 2 Notable items include $399 million impact of balance sheet optimization to noninterest income in 4Q22 Legacy Adjusted1 Union Bank, adjusted Legacy NII Legacy Noninterest Income, adjusted Revenue, Adjusted

Noninterest Expense Highlights Legacy adjusted expense increased vs. prior year driven by compensation and other noninterest expense. Higher compensation was due to merit and hiring and lower capitalized loan costs. Other noninterest expense increased due to future delivery exposures liabilities and higher FDIC insurance expense. On a linked quarter basis, Legacy adjusted expense increased driven by compensation and other noninterest expense. Higher compensation was driven by higher performance-based incentives and lower capitalized loan costs. Other noninterest expense increased due to higher costs related to tax-advantage projects and higher FDIC insurance. Union Bank added $221m of adjusted expense, which included $42m of intangible amortization driven by the core deposit intangible. Legacy Adjusted1 (total noninterest expense) Union Bank, adjusted Legacy, adjusted $ in millions 1 Adjusted for notable items of merger and integration charges of $42 million in 3Q22, $68 million for Legacy in 4Q22, and $22 million for Union Bank in 4Q22 2 Notable items include $90 million of merger and integration charges in 4Q22 Expense, Adjusted

Credit Quality $ in millions, except allowance for credit losses in billions 1 Non-GAAP; see slide 30 for calculations; combined NCO, adjusted excludes acquisition impacts and balance sheet optimization one-time items 2 Provision includes $26 million Union Bank contribution (post LD1 impact); Adjusted provision excludes balance sheet optimization and acquisition related provision costs Allowance for Credit Losses by Loan Category, 12/31/22 Amount ($B) Loans and Leases Outstanding (%) Commercial $2.2 1.6% Commercial Real Estate 1.3 2.4% Residential Mortgage 0.9 0.8% Credit Card 2.0 7.7% Other Retail 1.0 1.8% Total $7.4 1.9% Net Charge-offs Nonperforming Assets Provision2 Net Charge-offs NCO % Combined, Reported $1,192 $578 0.64% Acquisition Impacts 662 179 Balance Sheet Optimization 129 189 Combined, Adjusted $401 $210 0.23%1 Provision for Credit Losses $878 1 1 1

Ratios calculated in accordance with transitional regulatory requirements related to the current expected credit losses methodology CET1 Waterfall (3Q22 - 4Q22) Acquisition and Notable impacts primarily include: An increase to goodwill & intangibles including impact of credit and interest rate marks Initial provision for credit losses and balance sheet optimization actions An increase in RWA related to Union Bank assets and other exposures An increase to equity related to the issuance of shares to MUFG

Union Bank Acquisition Metrics - Update Transaction total value $8 billion $7.5 billion Earnings per share accretion ~6% (75% cost synergies)1 ~8% (100% cost synergies)1 ~8-9% (35% cost synergies)2 low double digits (100% cost synergies)2 Cost Synergies ~$900 million 25% (2022) / 75% (2023) / 100% thereafter ~$900 million 35% (2023) / 100% thereafter Merger Expenses3 $1.2 billion ~$1.4 billion TBVPS Impact Dilution / Earnback (crossover) ~1% / ~1.5 Yrs. ~11% / ~2.0 Yrs. Internal Rate of Return ~20% ~20% (1) 2023E GAAP EPS accretion with synergies illustratively realized 75% and 100% in 2023; USB projections based on Wall Street consensus estimates (2) 2023E GAAP EPS accretion with synergies illustratively realized 35% and 100% in 2023; USB projections based on internal company forecast (3) Non-interest expense Post-Close At Announcement Main systems conversion / bank merger expected Memorial Day weekend Metric Strategically attractive Increased scale; bolsters balance sheet with high quality, low-cost consumer deposits; provides meaningful cost save potential Meaningfully enhances West Coast presence Strengthens West Coast / CA market share Adds high growth/affluent consumer base Adds ~50k affluent households Financially Attractive Highly accretive with strong IRR Estimates exclude potential revenue synergies

Union Bank Acquisition Metrics - Update (1) Excludes ACL related to loans that were previously charged off by Union Bank (2) Primarily includes interest rate marks for loans held for investment, securities (net of sales), and debt Closing Announcement Allowance for Credit Losses PCD Allowance for Credit Losses(1) $307 million $173 million Non-PCD Allowance for Credit Losses $920 million $646 million Total Allowance for Credit Losses $1,227 million $819 million Non-Credit Mark(2) $535 million ($3,049) million Non-PCD Credit Mark ($920) million ($526) million Total Premiums/(Discounts) ($385) million ($3,575) million Net Fair Value Premiums/(Discounts) Intangibles Core deposit intangibles ($ / %) $405 million (or 0.50%) $2,710 million (or 3.89%) Acquisition Impact of Initial Provision $920 million $662 million Allowance for Credit Losses declined from initial announcement due to loan sales/composition, credit quality improvement, and estimation enhancements offset by economic deterioration Non-credit mark inclusive of loans, securities (net of sales) and debt heavily discounted due to significant increase in interest rates since announcement Increase in core deposit intangibles from deal announcement driven by the rise in interest rates since September 2021

1 All results and guidance are for Combined Company, adjusted 2 Taxable-equivalent basis 3 Adjusted for notable items (shown on slide 8) which include acquisition impacts related to balance sheet optimization, merger & integration charges, and provision for credit losses 4 Non-GAAP; see slide 30 for calculation First Quarter / Full Year 2023 Outlook1 Average Earnings Assets $573b $605b - $610b $610b - $620b Net interest margin2 3.01% +5-10bps vs. 4Q22 +5-10bps vs. 4Q22 Total Revenue, adjusted3 $6.8b $7.1b - $7.3b $29b

$31b Includes purchase accounting accretion ~$33m ~$100m $350m - $400m Total Noninterest expense, adjusted3 $4.0b $4.3b - $4.4b $17b - $17.5b Includes Core Deposit Intangibles Amortization related to Union Bank $42m ~$125m ~$500m Income Tax Rate, adjusted2,3,4 22% ~22-23% ~22-23% Notable Items: Merger & Integration $90m $200m - $250m $900m - $1.0b 4Q22 1Q23 Guidance 2023 Guidance

Appendix

Average Loans On a linked quarter basis, total loans were higher primarily due to the impact of the Union Bank acquisition as well as legacy portfolio growth. Increases in commercial loans, total commercial real estate and residential mortgages were primarily driven by the Union Bank acquisition, while the increase in credit card loans was primarily driven by lower payment rates. On a year-over-year basis, total loans were higher driven by growth in the legacy Company’s loan portfolio and from the Union Bank acquisition which are primarily reflected in commercial loans, commercial mortgages and residential mortgages. Increases in commercial loans, commercial mortgages, residential mortgages and credit card loans were partially offset by lower retail leasing balances and other retail loans. Sold ~$2B of Union Bank loans that were not aligned to our credit risk profile Legacy Legacy Union Bank Highlights $ in billions

Average Deposits On a linked quarter basis, deposits increased primarily driven by the acquisition, partially offset by lower time deposits mainly within Corporate and Commercial Banking. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics. Year-over-year, deposits were higher driven by the impact of the Union Bank acquisition. Average noninterest-bearing deposits decreased, net of the impact of the acquisition. Average total savings deposits were higher year-over-year driven by Corporate and Commercial Banking and the impact of the acquisition. Average time deposits were higher than the prior year. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics. Legacy (Total Deposits) Highlights Legacy Noninterest-bearing Legacy Interest-bearing Union Bank Noninterest-bearing Union Bank Interest-bearing $ in billions

Payment Services Fee Revenue Growth 1 Includes prepaid card Card revenue improved 0.5% YoY; higher card volume largely offset by lower prepaid activity Merchant processing fee revenue increased 5.5% YoY; negatively impacted by FX exchange rates; excluding FX, YoY growth was 11.2% Corporate Payments fee revenue increased 14.8% driven by sales growth; Corporate T&E recovered to 95% of pre-pandemic levels 4Q22 vs. prior year

Payments Revenue Breakdown Merchant Processing Card1 Corporate Payments All Other Revenue Total payments revenue, which includes net interest income and fee revenue, accounted for 25% of 4Q22 net revenue Total payment fee revenue grew nearly 5.0% year-over-year due to higher sales volumes across all businesses Seasonal Considerations A Shift to Tech-led3 Revenue Historical Linked Quarter Seasonal Trends for Payment Fees Revenue2 1 Includes prepaid card 2 Linked quarter change based on trends from 2015 – 2019 3 Tech-led includes digital, omni-commerce and e-commerce as well as investments in integrated software providers; tech-led revenue also includes talech in 2022 Payment Fees as a % of Net Revenue (4Q22) 1Q payments fee revenue is typically seasonally down on a linked quarter basis reflecting lower post holiday sales activity Payments fee revenue growth, on a linked quarter basis, is typically seasonally strongest in 2Q Tech-led3 Merchant Processing Fee Revenue Growth ~3.25x FY19 New Tech-led3 Partnerships Our multiyear investments in e-commerce and tech-led will continue to drive growth Payment Services

Credit Quality – Commercial Average Loans ($mm) and Net Charge-offs Ratio Key Statistics Key Points $ in millions4Q21 3Q22 4Q22 Average Loans$104,508 $128,519 $132,918 30-89 Delinquencies0.47% 0.25% 0.26% 90+ Delinquencies0.04% 0.03% 0.07% Nonperforming Loans0.16% 0.09% 0.12% 2.6% 8.0% 6.9% 6.5 % 3.4% Linked Quarter Growth Average loans increased by 3.4% on a linked quarter basis. Excluding Union Bank, loan growth was 0.8% Net charge-off rate for Legacy was 0.10% Legacy utilization decreased quarter over quarter from 24.3% to 23.9%

Credit Quality – Commercial Real Estate $ in millions 4Q21 3Q22 4Q22 Average Loans$38,851 $ 40,010$45,722 30-89 Delinquencies0.20% 0.02% 0.16% 90+ Delinquencies0.03% 0.05% 0.01% Nonperforming Loans0.73% 0.41% 0.61% Linked Quarter Growth (0.2%) 0.6% 1.1% 1.2% 14.3% Average loans increased by 14.3% on a linked quarter basis. Excluding Union Bank, loan growth was 0.8% Net charge-off rate for Legacy was 0.03% Key Points Average Loans ($mm) and Net Charge-offs Ratio Key Statistics

Credit Quality – Residential Mortgage $ in millions 4Q213Q224Q22 Average Loans$75,858 $84,018$97,092 30-89 Delinquencies0.15%0.10% 0.17% 90+ Delinquencies0.24% 0.10% 0.08% Nonperforming Loans0.30%0.24%0.28% 2.4% 2.1% 3.6% 4.7% 15.6% Key Points Average loans increased by 15.6% on a linked quarter basis. Excluding Union Bank, loan growth was 5.0% driven by slowing mortgage refinance activity Net charge-off rate for Legacy was -0.02%. Continued low loss rates were supported by strong portfolio credit quality and collateral values. Legacy originations continued to be high credit quality (weighted average credit score of 767, weighted average LTV of 74%) Linked Quarter Growth Average Loans ($mm) and Net Charge-offs Ratio Key Statistics

Credit Quality – Credit Card $ in millions 4Q213Q224Q22 Average Loans$22,399 $24,105 $25,173 30-89 Delinquencies0.86% 0.97% 1.08% 90+ Delinquencies0.73%0.74% 0.88% Nonperforming Loans - %- %- % 2.3% (2.5%) 4.1% 6.0% 4.4% Key Points Linked Quarter Growth Average loans increased by 4.4% on a linked quarter basis. Excluding Union Bank, loan growth was 4.1% Net charge-off rate for Legacy was 2.20% Average Loans ($mm) and Net Charge-offs Ratio Key Statistics 4Q22 Average Loans include $74 million of Union Bank balances

Credit Quality – Other Retail $ in millions 4Q213Q224Q22 Average Loans$61,139 $60,126$58,906 30-89 Delinquencies0.44%0.41% 0.56% 90+ Delinquencies0.11%0.11% 0.12% Nonperforming Loans0.24%0.22% 0.25% 1.9% 1.0% (1.2%) (1.5%) (2.0%) Key Points Linked Quarter Growth Average loans decreased by (2.0%) on a linked quarter basis related to balance sheet optimization activities Net charge-off rate for Legacy, reported was 1.52%; adjusting for balance sheet optimization impact of $189m, adjusted NCO was 0.25% Average Loans ($mm) and Net Charge-offs Ratio Key Statistics 4Q22 Average Loans include $638 million of Union Bank balances 1 1 Non-GAAP; see slide 30 for calculation; Legacy NCO%, adjusted, excludes acquisition impacts and balance sheet optimization one-time items

Non-GAAP Financial Measures (1), (2) – see slide 33 for corresponding notes

(1), (2), (3) – see slide 33 for corresponding notes Non-GAAP Financial Measures

Non-GAAP Financial Measures * Preliminary data. Subject to change prior to filings with applicable regulatory agencies. (3), (4), (5) – see slide 33 for corresponding notes

Non-GAAP Financial Measures (1), (2) – see slide 33 for corresponding notes

Notes Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes. Notable items for the three months ended December 31, 2022 include the following: $399 million ($297 million net-of-tax) of losses primarily related to interest rate hedging positions entered into after regulatory approval was obtained to manage the impact of interest rate volatility on capital prior to closing the MUFG Union Bank acquisition. $90 million ($67 million net-of-tax) of merger and integration charges. $791 million ($588 million net-of-tax) of provision for credit losses related to initially providing for acquired loans as well as charges related to the securitization of indirect automobile loans to optimize the balance sheet capital management. $179 million of net charge-offs, reflecting uncollectible acquired loans previously charged-off by MUFG Union Bank and acquisition alignment, and $189 million loss on balance sheet optimization Notable items for the three months ended September 30, 2022 included $42 million ($33 million net-of-tax) of merger and integration charges. Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements. Includes the estimated increase in the allowance for credit losses related to the adoption of the current expected credit losses methodology net of deferred taxes. Includes the impact of the estimated increase in the allowance for credit losses related to the adoption of the current expected credit losses methodology.