Financials | U.S. Bancorp 2022 Annual Report

Financial Highlights

$24.3BIn record net revenue (Up 6.5% over 2021)

12.3%Increase in average loans year over year

6.5%Increase in average deposits year over year

2.3%¹Increase in Positive Operating Leverage

2.72%²Net Interest Margin compared to 2.49% in 2021

82%of core consumer customers engaged digitally with U.S. Bank

Impact of Union Bank acquisition

On December 1 we completed the acquisition of Union Bank, which meaningfully increased our market share in California and made us the No. 1 SBA lender in the state.

~1MConsumer accounts added

~190KBusiness banking clients added

~700Commercial accounts added

~$82BIn deposits added

~$53BIn loans added

Financial Summary

Year Ended December 31
(Dollars and Shares in Millions, Except Per Share Data)

Year Ended December 31 (Dollars and Shares in Millions, Except Per Share Data)
	2022	2021	2020	2022 v 2021	2021 v 2020
Net interest income	$14,728	$12,494	$12,825	17.9%	(2.6)%
Taxable-equivalent adjustment ^(a)	118	106	99	11.3	7.1
Net interest income (taxable-equivalent basis) ^(b)	14,846	12,600	12,924	17.8	(2.5)
Noninterest income	9,456	10,227	10,401	(7.5)	(1.7)
Total net revenue	24,302	22,827	23,325	6.5	(2.1)
Noninterest expense	14,906	13,728	13,369	8.6	2.7
Provision for credit losses	1,977	(1,173)	3,806	*	*
Income taxes and taxable-equivalent adjustment	1,581	2,287	1,165	(30.9)	96.3
Net income	5,838	7,985	4,985	(26.9)	60.2
Net (income) loss attributable to noncontrolling interests	(13)	(22)	(26)	40.9	15.4
Net income attributable to U.S. Bancorp	$5,825	$7,963	$4,959	(26.8)	60.6
Net income applicable to U.S. Bancorp common shareholders	$5,501	$7,605	$4,621	(27.7)	64.6

Per common share

Per common share
	2022	2021	2020	2022 v 2021	2021 v 2020
Earnings per share	$3.69	$5.11	$3.06	(27.8)%	67.0%
Diluted earnings per share	3.69	5.10	3.06	(27.6)	66.7
Dividends declared per share	1.88	1.76	1.68	6.8	4.8
Book value per share ^(c)	28.71	32.71	31.26	(12.2)	4.6
Market value per share	43.61	56.17	46.59	(22.4)	20.6
Average common shares outstanding	1,489	1,489	1,509	—	(4.6)
Average diluted common shares outstanding	1,490	1,490	1,510	—	(1.3)

Financial ratios

Financial ratios
	2022	2021	2020
Return on average assets	.98%	1.43%	.93%
Return on average common equity	12.6	16.0	10.0
Net interest margin (taxable-equivalent basis) ^(a)	2.72	2.49	2.68
Efficiency ratio ^(b)	61.4	60.4	57.8

Average balances

Average balances
	2022	2021	2020	2022 v 2021	2021 v 2020
Loans	$333,573	$296,965	$307,269	12.3%	(3.4)%
Investment securities ^(d)	169,442	154,702	125,954	9.5	22.8
Earning assets	545,343	506,141	481,402	7.7	5.1
Assets	592,149	556,532	531,207	6.4	4.8
Deposits	462,384	434,281	398,615	6.5	8.9
Total U.S. Bancorp shareholders’ equity	50,416	53,810	52,246	(6.3)	3.0

Period end balances

Period end balances
	2022	2021	2020	2022 v 2021	2021 v 2020
Loans	$388,213	$312,028	$297,707	24.4%	4.8%
Allowance for credit losses	7,404	6,155	8,010	20.3	(23.2)
Investment securities	161,650	174,821	136,840	(7.5)	27.8
Assets	674,805	573,284	553,905	17.7	3.5
Deposits	524,976	456,083	429,770	15.1	6.1
Total U.S. Bancorp shareholders’ equity	50,766	54,918	53,095	(7.6)	3.4

Capital ratios

Capital ratios
	2022	2021	2020
Common equity tier 1 capital	8.4%	10.0%	9.7%
Tier 1 capital	9.8	11.6	11.3
Total risk-based capital	11.9	13.4	13.4
Leverage	7.9	8.6	8.3
Total leverage exposure	6.4	6.9	7.3
Tangible common equity to tangible assets ^(b)	4.5	6.8	6.9
Tangible common equity to risk-weighted assets ^(b)	6.0	9.2	9.5
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology ^(b)	8.1	9.6	9.3

* Not meaningful
(a) 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.
(b) See Non-GAAP Financial Measures beginning on page 59.
(c) Calculated as U.S. Bancorp common shareholders’ equity divided by common shares outstanding at end of the period.
(d) Excludes unrealized gains and losses on available-for-sale investment securities and any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity.