US Bancorp : 1Q 2022 Slide Presentation

U.S. BANCORP

Forward-looking Statements and Additional Information

The following information appears in accordance with the Private Securities Litigation Reform Act of 1995:

This presentation 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. These forward-looking statements cover, among other things, anticipated future revenue and expenses and the future plans and prospects of U.S. Bancorp. Forward-looking statements often use words such as "anticipates," "targets," "expects," "hopes," "estimates," "projects," "forecasts," "intends," "plans," "goals," "believes," "continue" and other similar expressions or future or conditional verbs such as "will," "may," "might," "should," "would" and "could."

Forward-looking statements involve inherent risks and uncertainties, including the following risks and uncertainties and the risks and uncertainties more fully discussed in the section entitled "Risk Factors" of Exhibit 13 to U.S. Bancorp's Annual Report on Form 10-K for the year ended December 31, 2021, which could cause actual results to differ materially from those anticipated. The COVID-19 pandemic is adversely affecting U.S. Bancorp, its customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect U.S. Bancorp's revenues and the values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price volatility. 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 changes in interest rates; increases in unemployment 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 its investment securities; legal and regulatory developments; litigation; increased competition from both banks and non-banks; civil unrest; the effects of climate change; changes in customer behavior and preferences; breaches in data security, including as a result of work-from-home arrangements; failures to safeguard personal information; the impacts of international hostilities or geopolitical events; 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 reputation risk. In addition, U.S. Bancorp's proposed acquisition of MUFG Union Bank presents risks and uncertainties, including, among others: the risk that the cost savings, any revenue synergies and other anticipated benefits of the proposed acquisition may not be realized or may take longer than anticipated to be realized; the risk that U.S. Bancorp's business could be disrupted as a result of the announcement and pendency of the proposed acquisition and diversion of management's attention from ongoing business operations and opportunities; the possibility that the proposed acquisition, including the integration of MUFG Union Bank, may be more costly or difficult to complete than anticipated; delays in closing the proposed acquisition; and the failure of required governmental approvals to be obtained or any other closing conditions in the definitive purchase agreement to be satisfied.

For discussion of these and other risks that may cause actual results to differ from those described in forward-looking statements, refer to U.S. Bancorp's Annual Report on Form 10-K for the year ended December 31, 2021, on file with the Securities and Exchange Commission, including the sections entitled "Corporate Risk Profile" and "Risk Factors" 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. In addition, factors other than these risks also could adversely affect U.S. Bancorp's results, and the reader should not consider these risks to be a complete set of all potential risks or uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements. 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.

This presentation includes non-GAAP financial measures to describe U.S. Bancorp's performance. The calculations of these measures are provided in the Appendix. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

1Q22 Highlights

Income Statement $ in millions, except EPS

1Q22

change vs. 4Q21 1Q21

Net interest income1 Noninterest income Reported net income

$3,200 2,396 1,557

1.6 % (5.4)

3.6 % 0.6

• (6.9) (31.7)

Credit Quality $ in millions

1Q22

change vs. 4Q21 1Q21

Nonperforming assets NPA ratio

Net charge-off ratio

$811 0.25 % 0.21 %

(7.6) % (3 bps)

4 bps

(32.5) % (16 bps) (10 bps)Diluted EPS

$

0.99

(7.5) %

(31.7) %

Balance Sheet $ in billions

1Q22

change vs. 4Q21 1Q21

Average earning assets Average total loans Average total deposits

$529.8 313.0 454.2

1.4 %

3.4 6.5

1.0 6.5

1Taxable-equivalent basis; see slide 26 for calculation

Capital

1Q22

change vs. 4Q21 1Q21

6.5 %

CET1 capital ratio2 Book value per share Earnings returned (millions)3

9.8 % $29.87$742

(20 bps)

(8.7) %

• 2 Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology was 9.5% as of 3/31/22.

• 3 Earnings returned (millions) = total common dividends paid and aggregate value of common shares repurchased

(10 bps)

(2.2) %

Performance Ratios

Return on	Return on	Return on	Efficiency Ratio1 &
Average Assets	Average Common Equity	Tangible Common Equity1	Net Interest Margin2
24.3%
1.69%	19.0%

62.8%

62.1%

62.3%

2.50%

2.40%

2.44%

1Q21

4Q21

1Q22

1Q21

4Q21

1Q22

1Q21

4Q21

1Q22

1Q21

4Q21

1Q22

1 Non-GAAP; see slides 26 and 27 for calculations 2 Net interest margin on a taxable-equivalent basis

Digital Engagement Trends

Digital Active Customers (% of Total Active Customers)1

Transactions (% of Total)

80%

78%

74%

60%

40%

20%

0%

52% 52%

58%

50%

81%

63%

2/29/20

79%

82%

80%60%40%20%

72%

42%

28%

21%

0%

2/29/20

Three months ended 2/28/21

2/28/21

2/28/22

Mobile

OnlineTotal Digital

Total DigitalBranch, ATM, Phone and IVR2

% of Loan Sales

80% 60% 40% 20% 0%

1/1/20

5/1/20

9/1/20

1/1/21

5/1/21

9/1/21

1/1/22 2/28/22

18%

2/28/22

DigitalBranch & Phone

• 1 Represents core Consumer Banking customers active in at least one channel in the previous 90 days

• 2 Interactive Voice Response

Total Digital includes both online and mobile platforms