Company Receives Results of Comprehensive Capital Analysis and
Review; Federal Reserve Did Not Object to Company’s Request to Increase
Dividend and Undertake Other Capital Distributions
MINNEAPOLIS--(BUSINESS WIRE)--Mar. 13, 2012--
The Board of Directors of U.S. Bancorp (NYSE:USB) has approved a 56
percent increase in the dividend rate on U.S. Bancorp common stock to
$0.78 on an annualized basis, or $0.195 on a quarterly basis. The
quarterly common stock dividend of $0.195 per common share is payable on
April 16, 2012, to shareholders of record at the close of business on
March 30, 2012.
Additionally, the board of directors of U.S. Bancorp today approved an
authorization to repurchase up to 100 million shares of its outstanding
common stock. This new authorization replaces the company’s current
share repurchase program. U.S. Bancorp’s common stock shares may be
repurchased through March 2013 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.
Today the Federal Reserve disclosed the results of the 2012
Comprehensive Capital Analysis and Review (“CCAR”). The Federal Reserve
disclosure included their estimate of U.S. Bancorp’s Pre-Provision Net
Revenue (PPNR) and Losses under a two-year hypothetical stressed
economic scenario that is much more severe than actually expected.
Additionally, the Federal Reserve published the resulting Pro-Forma,
Post Stress Capital Ratios with and without the dividends and buybacks
proposed by the Company under the more likely base case scenario. After
a review of the Company’s CCAR results, the Federal Reserve did not
object to the Company’s request to increase its dividend and other
capital distributions.
Richard K. Davis, chairman, president and chief executive officer of
U.S. Bancorp, stated, “Our board of directors and senior management team
are very pleased to announce today’s increase in the Company’s common
stock dividend, as well as the new stock repurchase authorization. The
Company’s CCAR Pro-Forma, Post Stressed Capital Ratios published today
by the Federal Reserve confirm, once again, the fundamental strength of
U.S. Bancorp’s business model and capital position, even when viewed
under a remarkably stressed hypothetical economic scenario. Looking
ahead, we continue to see a slow, but steady, economic recovery, and we
look forward to participating in the revitalization of our markets,
while serving the needs of our customers and, importantly, rewarding our
shareholders for their investment in our Company.”
The board of directors has also declared a regular quarterly dividend of
$884.722 per share (equivalent to $8.84722 per depositary share) on U.S.
Bancorp’s Series A Non-Cumulative Perpetual Preferred Stock, payable
April 16, 2012, to stockholders of record at the close of business on
March 30, 2012.
Additionally, the board of directors declared a regular quarterly
dividend of $221.18 per share (equivalent to $0.22118 per depositary
share) on U.S. Bancorp’s Series B Non-Cumulative Perpetual Preferred
Stock, payable April 16, 2012, to stockholders of record at the close of
business on March 30, 2012.
The board also declared a regular quarterly dividend of $497.66 per
share (equivalent to $0.49766 per depositary share) on U.S. Bancorp’s
Series D Non-Cumulative Perpetual Preferred Stock, payable April 16,
2012, to stockholders of record at the close of business on March 30,
2012.
Finally, the board of directors declared an initial dividend of $370.14
per share (equivalent to $0.37014 per depositary share) on U.S.
Bancorp’s Series F Non-Cumulative Perpetual Preferred Stock, payable
April 16, 2012, to stockholders of record at the close of business on
March 30, 2012.
Minneapolis-based U.S. Bancorp (“USB”), with $340 billion in assets as
of December 31, 2011, is the parent company of U.S. Bank National
Association, the 5th largest commercial bank in the United States. The
company operates 3,085 banking offices in 25 states and 5,053 ATMs and
provides a comprehensive line of banking, brokerage, insurance,
investment, mortgage, trust and payment services products to consumers,
businesses and institutions. U.S. Bancorp and its employees are
dedicated to improving the communities they serve, for which the company
earned the 2011 Spirit of America Award, the highest honor bestowed on a
company by United Way. Visit U.S. Bancorp on the web at usbank.com.
Source: U.S. Bancorp
U.S. Bancorp
Investors/Analysts:
Judith T. Murphy, 612-303-0783
or
Media:
Thomas
Joyce, 612-303-3167
