MINNEAPOLIS--(BUSINESS WIRE)--Dec. 21, 2004--The board of
directors of U.S. Bancorp (NYSE:USB) has approved a 25 percent
increase in the dividend rate on U.S. Bancorp common stock to $1.20 on
an annualized basis, or $0.30 on a quarterly basis. The quarterly
common stock dividend of $0.30 per common share is payable on January
17, 2005, to shareholders of record at the close of business on
December 31, 2004.
The board of directors of U.S. Bancorp also authorized today a
program to repurchase up to 150 million shares of its outstanding
common stock. This new authorization replaces the company's current
share repurchase program. U.S. Bancorp's shares of common stock may be
repurchased during the next 24 months in the open market or in
privately negotiated transactions. The reacquired common shares will
be held as treasury shares and may be reissued for various corporate
purposes.
Jerry A. Grundhofer, chairman and chief executive officer of U.S.
Bancorp, stated, "Increasing the dividend by 25 percent and
authorizing a new 150 million share repurchase program are both
important components of our plan to continue our commitment to return
at least 80 percent of our earnings to our shareholders. We are very
proud of U.S. Bancorp's long history of paying a dividend, which
provides our shareholders with an additional reward for investing in
our company."
Also, as a result of the significant improvement in the risk
profile of the company over the past three years and the company's
ability to generate considerable amounts of capital due to its high
level of profitability, U.S. Bancorp announced plans to reduce its
targeted tangible common equity ratio to 6.00 percent from 6.25
percent.
U.S. Bancorp, through its predecessor companies, has now increased
its dividend rate in each of the past 33 years and will have paid a
dividend for 142 consecutive years as of January 17, 2005. Prior to
this increase U.S. Bancorp's dividend on an annualized basis was
$0.96, or $0.24 on a quarterly basis.
In the past, U.S. Bancorp has also been recognized by Standard &
Poor's in the "S&P 500 Dividend Aristocrats" list, which features
companies that have increased their dividend for at least 25
consecutive years. Of the top ten companies that have paid a dividend
the longest, six of these companies, including U.S. Bancorp, are
headquartered in the United States, according to S&P.
U.S. Bancorp, with $193 billion in assets, is the 6th largest bank
holding company in the United States. The company operates 2,346
banking offices and 4,621 ATMs in 24 states, and provides a
comprehensive line of banking, brokerage, insurance, investment,
mortgage, trust and payment services products to consumers, businesses
and institutions. U.S. Bancorp is home of the Five Star Service
Guarantee in which the company pays customers if certain key banking
benefits and services are not met. U.S. Bancorp is the parent company
of U.S. Bank. Visit U.S. Bancorp on the web at usbank.com.
CONTACT: U.S. Bancorp
Steve Dale, 612-303-0784 (Media)
H. D. McCullough, 612-303-0786 (Analysts)
Judy Murphy, 612-303-0783 (Analysts)
SOURCE: U.S. Bancorp
