MINNEAPOLIS--(BUSINESS WIRE)--Jun. 28, 2017--
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
“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
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.
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170628006418/en/
Source: U.S. Bancorp
Jennifer Thompson, 612-303-0778
U.S. Bank Corporate Communications