U.S. Bancorp Receives No Objection to Its 2017 Capital Plan
U.S. Bancorp today announced that the Federal Reserve did not object to the Company’s 2017 Capital Plan following its conclusion
and assessment of the 2017 Comprehensive Capital Analysis and Review (“CCAR”).
As a result of the Federal Reserve’s non-objection to U.S. Bancorp’s plan to increase its dividend rate, the Company will
recommend in July that its board of directors approve an increase to the quarterly dividend rate beginning with the third quarter
dividend payable in October 2017. The Company expects to recommend a third quarter dividend of $0.30 per common
share, a 7.1 percent increase over the current dividend rate. At this quarterly dividend rate, the annual dividend will be
equivalent to $1.20 per common share.
Additionally, the board of directors of U.S. Bancorp has approved a four-quarter authorization to repurchase up
to $2.6 billion of its outstanding stock, beginning on July 1, 2017, to replace the current four-quarter
authorization, which expires on June 30, 2017. U.S. Bancorp’s common stock may be repurchased through June 2018 in
the open market or in privately negotiated transactions. The acquired common shares will be held as treasury shares and may be
reissued for various corporate purposes.
“We are very pleased to receive the Federal Reserve’s non-objection to our plan to increase our dividend and authorize a new
share repurchase program,” said Andy Cecere, president and chief executive officer of U.S. Bancorp. “The results of this year’s
Stress Test highlight the Company’s ability to withstand - and remain profitable - under extraordinarily adverse economic
conditions. This consistent performance will enable us to once again achieve our objective of returning 60 to 80 percent of
earnings to shareholders in 2017 through dividends and share buybacks.”
Minneapolis-based U.S. Bancorp (NYSE: USB), with $450 billion in assets as of March 31, 2017, is the parent company of U.S. Bank
National Association, the fifth largest commercial bank in the United States. The Company operates 3,091 banking offices in 25
states and 4,838 ATMs, and provides a comprehensive line of banking, investment, mortgage, trust and payment services products to
consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.
Forward-looking Statements:
The following information appears in accordance with the Private Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts,
including statements about beliefs and expectations, are forward-looking statements and are based on the information available to,
and assumptions and estimates made by, management as of the date hereof. The forward-looking statements contained in this press
release include, among other things, anticipated U.S. Bancorp capital distributions by dividends and share repurchases. There can
be no assurance that U.S. Bancorp will distribute this or any amount of capital to its shareholders in the form of dividends or
share repurchases in the future.
Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ
materially from those anticipated. A reversal or slowing of the current economic recovery or another severe contraction could
adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities. Global financial markets could experience a
recurrence of significant turbulence, which could reduce the availability of funding to certain financial institutions and lead to
a tightening of credit, a reduction of business activity, and increased market volatility. Stress in the commercial real estate
markets, as well as a downturn in the residential real estate markets could cause credit losses and deterioration in asset values.
In addition, changes to statutes, regulations, or regulatory policies or practices could affect U.S. Bancorp in substantial and
unpredictable ways. U.S. Bancorp’s results could also be adversely affected by deterioration in general business and economic
conditions; changes in interest rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral
securing those loans; deterioration in the value of securities held in its investment securities portfolio; legal and regulatory
developments; litigation; increased competition from both banks and non-banks; changes in customer behavior and preferences;
breaches in data security; effects of mergers and acquisitions and related integration; effects of critical accounting policies and
judgments; and management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic
risk, interest rate risk, liquidity risk and reputational risk.
For discussion of these and other risks that may cause actual results to differ from expectations, refer to U.S. Bancorp’s
Annual Report on Form 10-K for the year ended December 31, 2016, on file with the Securities and Exchange Commission, including the
sections entitled “Risk Factors” and “Corporate Risk Profile” contained in Exhibit 13, and all subsequent filings with the
Securities and Exchange Commission under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934. However,
factors other than these also could adversely affect U.S. Bancorp’s results, and the reader should not consider these factors to be
a complete set of all potential risks or uncertainties. 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.
U.S. Bancorp
Jennifer Thompson, 612-303-0778
U.S. Bank Investor Relations
jen.thompson@usbank.com
or
Dana Ripley, 612-303-3167
U.S. Bank Corporate Communications
dana.ripley@usbank.com
Twitter @usbank_news
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