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MarketScreener Homepage  >  Equities  >  Nyse  >  US Bancorp    USB

US BANCORP

(USB)
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US Bancorp : December 31, 2020 U.S. Bancorp

02/23/2021 | 05:59pm EST

Regulatory Capital Pillar 3 Disclosures

Standardized Approach

December 31, 2020

Table of Contents

Background .................................................................................................................................................................... 3

Overview ....................................................................................................................................................................... 3

Corporate Governance ................................................................................................................................................... 3

Internal Capital Adequacy Assessment Process (ICAAP) ............................................................................................. 4

Regulatory Capital Adequacy Ratios ............................................................................................................................. 4

Table 1 Regulatory Capital Ratios ............................................................................................................................. 5

Stress Capital Buffer .................................................................................................................................................. 5

Table 2 Non-GAAP Capital Ratios ............................................................................................................................ 6

Table 3 Supplementary Leverage Ratio ..................................................................................................................... 7

Standardized Approach Risk-Weighted Assets ............................................................................................................. 8

Credit Risk Mitigation ............................................................................................................................................... 8

Counterparty Credit Risk of OTC Derivative Contracts, Repo-Style Transactions and Eligible Margin Loans ....... 9

Securitization ........................................................................................................................................................... 10

Equity Securities Not Subject to Market Risk Rule ................................................................................................. 11

Market Risk ................................................................................................................................................................. 12

Credit Risk: General Disclosures ................................................................................................................................. 12

Appendix A - Disclosure Matrix …………………………………………………………………………………… .A1

BACKGROUND

Basel III regulatory capital rules for large and internationally active banks established the definition of regulatory capital elements and minimum capital ratios, regulatory capital buffers above those minimums, a common equity tier 1 ratio, a supplementary leverage ratio and the rules for calculating risk-weighted assets. Basel III includes two comprehensive methodologies for calculating risk-weighted assets: a general standardized approach and more risk-sensitive advanced approaches. With the passing of the "Prudential Standards for Large Bank Holding Companies, Savings and Loan Holding Companies, and Foreign Banking Organizations" rule, effective December 31, 2019, the Company is classified as a Category III banking organization Therefore, the regulatory capital requirements effective for U.S. Bancorp (the "Company") follow the general standardized approach.

OVERVIEW

U.S. Bancorp (the "Company") based in Minneapolis, is one of the largest commercial banks in the United States and provides a comprehensive line of banking, investment, mortgage, trust and payment services products to consumers, businesses, and institutions.

This document, and certain of the Company's public filings, present the Pillar 3 Disclosures in compliance with Basel III as described in Subsections 61-63 of the: Capital Adequacy-Basel III Final Rule (the "Rule"). The Company's 2020 Annual Report on Form 10-K ("Annual Report") filed with the Securities and Exchange Commission contains management's discussion of the overall corporate risk profile of the Company and related management strategies. These Pillar 3 Disclosures should be read in conjunction with the Annual Report, the Consolidated Financial Statements for Bank Holding Companies - FR Y-9C. The Company's Pillar 3 Disclosures Matrix (see Appendix A) specifies where all disclosures required by the Rule are located. The Pillar 3 Disclosures have not been audited by the Company's external auditors.

The Rule applies only to the consolidated Company, with the exception that every depository subsidiary must disclose capital ratios.

CORPORATE GOVERNANCE

Managing risks is an essential part of successfully operating a financial services company. The Company's Board of Directors has approved a risk management framework which establishes governance and risk management requirements for all risk-taking activities. This framework includes Company and business line risk appetite statements which set boundaries for the types and amount of risk that may be undertaken in pursuing business objectives and initiatives. The Board of Directors, through its Risk Management and Capital Planning Committees, oversees performance relative to the risk management framework, risk appetite statements, and other policy requirements.

The Executive Risk Committee ("ERC"), which is chaired by the Chief Risk Officer and includes the Chief Executive Officer and other members of the executive management team, oversees execution against the risk management framework and risk appetite statements. The ERC focuses on current and emerging risks, including strategic and reputational risks, by directing timely and comprehensive actions. Senior operating committees have also been established, each responsible for overseeing a specified category of risk.

The Company's most prominent risk exposures are credit, interest rate, market, liquidity, operational, compliance, strategic, and reputational risk. Credit risk is the risk of loss associated with a change in the credit profile or the failure of a borrower or counterparty to meet its contractual obligations. Interest rate risk is the potential reduction of net interest income or market valuations as a result of changes in interest rates. Market risk arises from fluctuations in interest rates, foreign exchange rates, and security prices that may result in changes in the values of financial instruments, such as trading and available-for-sale securities, mortgage loans held for sale, mortgage servicing rights ("MSRs") and derivatives that are accounted for on a fair value basis. Liquidity risk is the possible inability to fund obligations or new business at a reasonable cost and in a timely manner. Operational risk is the risk to current or projected financial condition and resilience arising from inadequate or failed internal processes or systems, people (including human errors or misconduct), or adverse external events, including the risk of loss resulting from breaches in data security. Operational risk can also include the risk of loss due to failures by third parties with which the Company does business Compliance risk is the risk that the Company may suffer legal or regulatory sanctions, financial losses and reputational damage if the Company fails to adhere to compliance requirements and theCompany's compliance policies. Strategic risk is the risk to current or projected financial condition and resilience arising from adverse business decisions, poor implementation of business decisions, or lack of responsiveness to changes in the banking industry and operating environment. Reputation risk is the risk to current or anticipated earnings, capital, or franchise or enterprise value arising from negative public opinion. This risk may impair the Company's competitiveness by affecting its ability to establish new relationships or services or continue servicing existing relationships. In addition to the risks identified above, other risk factors exist that may impact the Company. Refer to "Risk Factors" in the Annual Report for a detailed discussion of these factors.

The Company's Board of Directors and management-level governance committees are supported by a "three lines of defense" model for establishing effective checks and balances. The first line of defense, the business lines, manages risks in conformity with established limits and policy requirements. In turn, business leaders and their risk officers establish programs to ensure conformity with these limits and policy requirements. The second line of defense, which is primarily aligned to the Chief Risk Officer's organization but also includes policy and oversight activities of corporate support functions, translates risk appetite and strategy into actionable risk limits and policies. The second line of defense monitors first line of defense conformity with limits and policies and provides reporting and escalation of emerging risks and other concerns to senior management and the Risk Management Committee of the Board of Directors. The third line of defense, internal audit, is responsible for providing the Audit Committee of the Board of Directors and senior management with independent assessment and assurance regarding the effectiveness of the Company's governance, risk management, and control processes.

INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS (ICAAP)

The Company's ICAAP is a component of its Basel Program. The Company manages its capital to multiple minimum thresholds and measures that are consistent with the Company's strategic objectives, business model and capital plan. Expectations of internal and external stakeholders are integral, and the capital goals and targets are calibrated considering internally developed models that ensure adequate coverage for all material quantitative and qualitative risks, minimum regulatory requirements, supervisory stress testing expectations and rating agency and counterparty perspectives.

The Company is committed to managing capital to maintain strong protection for depositors and creditors, and for maximum shareholder benefit in order to achieve the Company's broader goals, which are as follows:

  • Ensure the Company's safety and soundness;

  • Maintain access to the debt and capital markets so the Company may continue to provide exceptional service to its customers and fulfill, without interruption, its obligations as a credit intermediary;

  • Serve as a source of managerial and financial strength to its subsidiaries; and

  • Ensure that the Company continues to be in a position to conduct its business in an environment of economic or financial stress.

The Company's ICAAP, the identification of material risks and how those material risks inform capital adequacy, is conducted via the Company's stress testing program. Through this process the Company's material risks, informed by the risk identification process, are critical to the scenario design process and the development of the Company's internal stress scenario. The results of these forward-looking scenarios inform the Company's regulatory and internally defined capital adequacy relative to the Company's risk profile and risk appetite.

REGULATORY CAPITAL ADEQUACY RATIOS

The Company also manages its capital to exceed regulatory capital requirements for well-capitalized financial institutions. The Company's applicable capital requirement for regulatory and supervisory purposes is based upon the ratios determined under the standardized approach.

Banking regulators define capital requirements for banks and financial services holding companies expressed in the form of a common equity tier 1 capital ratio, a tier 1 capital ratio, a total risk-based capital ratio, a leverage ratio and for advanced approaches banks and category III banks, a supplementary leverage ratio. The current minimum required levels, , for these ratios are 4.5 percent, 6 percent, 8 percent, 4.0 percent and 3.0 percent, respectively, while the requirements for an insured depository institution to be considered "well-capitalized" are 6.5 percent, 8.0

percent, 10.0 percent, 5.0 percent and 3.0 percent, respectively. Using the standardized approach rule the common equity tier 1 ratio was 9.7 percent at December 31, 2020 - above the Company's targeted ratio of 8.5 percent.

A summary of the capital ratios under the standardized is shown in Table 1.

Table 1 Regulatory Capital Ratios

U.S. Bancorp

U.S. Bank National Association

(Dollars in Millions, Unaudited)

December 31, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Common Equity Tier 1 capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tier 1 capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total risk-based capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$38,045 $35,713

$44,155 $39,114

44,474 41,721

44,600 39,138

52,601 49,744

52,967 46,994

Common Equity Tier 1 capital as a percent of risk-weighted assets . . . . . . . . . . . . Tier 1 capital as a percent of risk-weighted assets . . . . . . . . . . . . . . . . . . . . . . . . . Tier 1 risk-based capital as a percent of adjusted quarterly average assets (leverage ratio) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tier 1 risk-based capital as a percent of total on and off balance sheet average exposures (supplementary leverage ratio) . . . . . . . . . . . . . . . . . . . . . . .

9.7 %

9.1 %

  • 11.4 %

    11.3 %

    10.7 %

    8.3 %

    8.8 %

  • 11.5 % 8.4 %

10.2 % 10.2 % 8.4 %

7.3 %

7.0 %

Total risk-based capital as a percent of risk-weighted assets . . . . . . . . . . . . . . . . . Risk-Weighted Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13.4 %

12.7 %

$393,648

$391,269

6.8

%

6.7

%

13.7

%

12.3

%

$387,388

$383,560

The Company's total shareholders' equity was $53.1 billion at December 31, 2020, compared with $51.9 billion at December 31, 2019. The following items of note have had an impact on equity during the year, net income and an increase other comprehensive income resulted in an increase in equity which were offset by the adoption of the Current Expected Credit Loss (CECL) accounting standard, dividends paid and common share repurchases during the year. In compliance with the Rule, the Company reviewed the aggregate amount of surplus capital of insurance subsidiaries included in the regulatory capital of the consolidated group and has determined that it was not material. Refer to "Management's Discussion and Analysis-Capital Management" in the Annual Report for further discussion on capital management.

In addition to capital ratios defined by banking regulators, the Company considers various other measures when evaluating capital utilization and adequacy. These measures are viewed by management as useful additional methods of reflecting the level of capital available to withstand unexpected market or economic conditions. Additionally, presentation of these measures allows investors, analysts and banking regulators to assess the Company's capital position relative to other financial services companies. These measures differ from the currently effective capital ratios defined by current banking regulations principally in that the numerator excludes trust preferred securities and preferred stock, the nature and extent of which varies among different financial services companies. These measures are not defined in generally accepted accounting principles ("GAAP") or are not currently effective or defined in federal banking regulations. As a result, these measures disclosed by the Company may be considered non-GAAP financial measures.

Stress Capital Buffer

Effective October 1, 2020 the Federal Reserve Board (FRB) introduced a new Stress Capital Buffer (SCB) that will replace the capital conservation buffer. The stress capital buffer is calculated based on the decrease in the Company's Common Equity Tier 1 Capital under the severely adverse scenario in the FRB's annual supervisory stress test and related Comprehensive Capital Analysis and Review (CCAR), plus four quarters of planned common stock dividends as a percentage of risk-weighted assets subject to a floor of 2.5%. A company's SCB is added to the minimum capital requirement from above for the risk-based ratios and is the level of capital where restrictions on distributions and discretionary bonuses begin. The FRB announced that the Company's stress capital buffer is 2.50% effective October 1, 2020.

The FRB, OCC and FDIC also adopted a final rule that revises the definition of "eligible retained income" for purposes of the SCB and other capital buffer requirements. This revision reduces the likelihood that a banking organization is suddenly subject to abrupt and restrictive distribution limitations in a scenario where the Company's ratios fall within its applicable minimum-plus-buffer requirements. The change to the definition of eligible retained income allow banking organizations to more freely use their capital and leverage buffers and supports banking organizations' lending activity and other financial intermediation activities to avoid compounding negative impacts in the financial markets. Under the final rule, eligible retained income is the greater of (i) the banking organization's net income for the four preceding calendar quarters, net of any distributions and associated tax effects not already reflected in net income, and (ii) the average of the banking organization's net income over the preceding four quarters. The Company's eligible retained income at December 31, 2020 was $1.2 billion.

Table 2 Non-GAAP Capital Ratios

(Unaudited)

December 31, 2020

December 31, 2019

Tangible common equity to tangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tangible common equity to risk-weighted assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.5

9.3

Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation

of the current expected credit losses methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.3

6.9 %

7.5 %

Refer to "Management's Discussion and Analysis-Non-GAAP Financial Measures" in the Annual Report for further discussion on the non-GAAP capital ratios.

Table 3 Supplementary Leverage Ratio

Advanced approaches banks and category III banks are required to report the Supplementary Leverage Ratio (SLR) defined as tier 1 capital divided by the total leverage exposure which includes both on- and off-balance sheet exposures. The Company as a Category III banking organization is still required to meet a 3.0 percent SLR requirement. At December 31, 2020, the Company's and subsidiary bank's SLR exceeded the requirement with ratios of 7.3 percent and 6.8 percent, respectively. This is compared to 7.0 percent and 6.7 percent, respectively, at December 31, 2019.

US Bancorp

US Bank NA

(Dollars in millions, Unaudited)

December 31, 2020

December 31, 2020

Summary Comparison of Accounting Assets and Total Leverage Exposure

Total Consolidated Assets as reported in published financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$547,165

$537,800

Adjustment for investments in banking, financial, insurance or commercial entities that are consolidated for accounting purposes but outside the

scope of regulatory consideration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

-

-

Adjustments for fiduciary assets recognized on balance sheet but excluded from total leverage exposure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

-

-

Adjustment for derivative exposures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17,978

17,971

Adjustment for repo-style transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,090

11

Adjustment for off-balance sheet exposures (credit equivalent) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

110,590

110,563

Less Other adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Adjustments for deductions from Tier 1 Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10,278

9,693

Adjustments for frequecny calculations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,458

(394)

Adjustments for deductions of qualifying central bank deposits for custodial banking organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

56,081

-

Total Leverage Exposure banking organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

610,006

657,046

Supplementary Leverage Ratio

On-balance sheet exposures

On-balance sheet assets (excluding on-balance sheet assets for repo-style transactions and derivative exposures, but including cash collateral

received in derivative transactions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

545,707

538,194

LESS: Deductions from common equity tier 1 capital and additional tier 1 capital (report as a positive value) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10,278

9,693

LESS: Deductions of qualifying central bank deposits for custodial banking organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

56,081

$

-

Total on-balance sheet exposures

479,348

528,501

Derivative exposures

Replacement cost for derivative exposures (net of cash variation margin) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,304

4,309

Add-on amounts for potential future exposure (PFE) for derivatives exposures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,867

6,855

Gross-up for cash collateral posted if deducted from the on-balance sheet assets, except for cash variation margin . . . . . . . . . . . . . . . . . . . . . . . .

208

208

LESS: Deductions of receivable assets for cash variation margin posted in derivatives transactions, if included in on-balance sheet assets

(report as a positive value) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

-

-

LESS: Exempted CCP leg of client-cleared transactions (report as a positive value) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

-

-

Effective notional principal amount of sold credit protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,611

6,611

LESS: Effective notional principal amount offsets and PFE adjustments for sold credit protection (report as a positive value) . . . . . . . . . . . . . . . .

12

12

Total derivative exposures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17,978

17,971

Repo-style transactions

On-balance sheet assets for repo-style transactions, include the gross value of receivables for reverse repurchase transactions . . . . . . . . . . . . . .

2,030

-

LESS: Reduction of the gross value of receivables in reverse repurchase transactions by cash payables in repurchase transactions under netting

agreements (report as a positive value) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

-

-

Counterparty credit risk for all repo-style transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

60

11

Exposure for repo-style transactions where a banking organization acts as an agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

-

-

Total exposures for repo-style transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,090

11

Other off-balance sheet exposures

Off-balance sheet exposures at gross notional amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

362,951

362,906

LESS: Adjustments for conversion to credit equivalent amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

252,361

252,343

Off-balance sheet exposures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

110,590

110,563

Capital and total leverage exposures

Tier 1 Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

44,474

44,600

Total leverage exposure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .

$610,006

$657,046

Supplementary Leverage Ratio

Supplementary Leverage Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.29%

6.79%

7

STANDARDIZED APPROACH RISK-WEIGHTED ASSETS

Risk-weighted assets represent an institution'sassetsand off-balance sheet exposures, weighted according to the risk associated with each exposure category. The risk-weighted asset calculation is used in determining the institution's capital requirement.

The standardized approach assigns each credit exposure category to a predefined risk weight classification.

Standardized approach risk-weighted assets were $393.6 billion at December 31, 2020, compared with $391.3 billion at December 31, 2019. The increase in risk-weighted assets was primarily driven by increases in investments in agency mortgage backed securities , equity exposures and domestic derivatives offset in part by decrease in corporate exposures due to the impact of the COVID-19 pandemic on the global economy. The decrease in other assets was primarily due to a decline in outstanding retail loan exposures lower consumer spending due to the COVID-19 pandemic.

Table 4 Risk-Weighted Assets

(Dollars in Millions, Unaudited)

December 31, 2020 December 31, 2019

$ ChangePercent Change

Credit risk

Exposures to Sovereign Entities (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exposures to Depository Entities Foreign Banks . . . . . . . . . . . . . . . . . . . . . . . PSE Exposures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Corporate Exposures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Residential Mortgage Exposures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HVCRE loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Past Due Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cleared Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Default Fund Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unsettled Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Securitization Exposures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Equity Exposures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ -

$ -

$ - 0.0

%

731

691

40 5.8

18,759

13,436

5,323 39.6

115,035

120,977

(5,942) (4.9)

51,910

51,912

(2) (0.0)

4,316

5,124

(808) (15.8)

1,500

1,052

448 42.6

100,959 -

101,970 -

(1,011) (1.0)

- 0.0

11

1

3 -

8 266.7

1 0.0

520

690

(170) (24.6)

10,335

10,071

264 2.6

Off Balance Sheet Exposures

Letters of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Off Balance sheet commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Securitizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Off Balance Sheet Exposures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,175

7,615

(440) (5.8)

74,015

71,450

2,565 3.6

6,462

3,645

2,817 77.3

420

161

259 160.9

211

186

25 13.4

Market risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Excess Allowance

2,319

(1,031)

2,286 -

33 1.4

(1,031) 100.0

Total risk-weighted assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$393,648

$391,269

$2,379

0.6 %

(a) Exposures to and portions of exposures that are unconditionally guaranteed by, the U.S. Government, its agencies and the federal reserve receive 0% risk weight.

Credit Risk Mitigation The Company's approach in underwriting is to grant credit on the basis of capacity to repay rather than place primary reliance on credit risk mitigation. Mitigation is nevertheless an important aspect of effective risk management. Various risk mitigation techniques are used by the Company, including collateral, guarantees and, to a limited extent, credit derivatives.

The Company has a process that takes into account the risk-reducing effects of collateral in support of exposures. Examples of collateral that impact the Company's estimate include, but are not limited to, cash, working capital, depreciable assets and real estate. Unsecured exposures generally result in larger losses and secured exposures generally result in smaller losses.

The Company may use credit default swaps ("CDS") to manage the credit risk of certain large wholesale loan exposures, with the goal of reducing concentrations in individual names. CDS are subject to credit risk associated with counterparties to the contracts.

Credit risk mitigants are valued to monitor and ensure that they will continue to provide the secure repayment source anticipated at the time they were taken. Company policy prescribes the frequency of valuation based on the volatility of the collateral. Valuation methods range from the use of market indices to individual professional inspection.

Counterparty Credit Risk of OTC Derivative Contracts, Repo-Style Transactions and Eligible Margin Loans Counterparty exposure arises from OTC derivatives, repurchase agreements, securities lending and borrowing and other similar products and activities. The amount of this exposure depends on the value of underlying market factors (e.g. interest rates and foreign exchange rates), which can be volatile and uncertain in nature.

The Company reduces its counterparty exposure related to derivative contracts by centrally clearing all eligible derivatives. All other credit exposure is approved either on a transaction level basis, or under credit limits supporting bilateral trades governed by appropriate master trading agreements. The primary element of the credit approval process is a detailed risk assessment of every credit exposure associated with a counterparty. The Company's risk assessment procedures consider both the credit worthiness of the counterparty and the risks related to the specific type of credit facility or exposure. The Company manages the credit risk of its derivative positions by diversifying its positions among various counterparties, entering into master netting arrangements where possible with its counterparties, requiring collateral and, in certain cases, though insignificant, transferring the counterparty credit risk related to interest rate swaps to third parties through the use of risk participation arrangements. Credit exposures are monitored daily for counterparties with an established Credit Support Annex ("CSA"), to assure collateral levels are appropriately sized to cover risk, and prior to execution of an initial trade for any counterparty to ensure it does not exceed the approved credit limit for each counterparty.

The Company uses the current exposure to calculate exposure at default (EAD) and determine risk-weighted assets and capital requirements for counterparty risk. EAD is calculated for each counterparty that has an International Swaps and Derivatives Association ("ISDA") Master Agreement with the Company using the collateral haircut approach in the current exposure methodology.

For further information on counterparty credit risk, refer to the "Use of Derivatives to Manage Interest Rate and Other Risks" subsection in the "Management's Discussion and Analysis" section of the Annual Report.

Collateral To calculate a counterparty's net risk position for counterparty credit risk, the Company revalues all financial instruments and associated collateral positions on a daily basis. Collateral positions are monitored by a dedicated group that manages a process to ensure that calls for collateral and exposure reductions are made promptly. Processes exist for the resolution of trades where the level of collateral is disputed, or the collateral sought is not received.

Eligible collateral types are documented by a CSA to the ISDA Master Agreement and are controlled under the Company's general credit policies. A valuation haircut policy reflects the fact that collateral may fall in value between the date the collateral is called and the date of liquidation or enforcement. In practice, most of the Company's collateral held as credit risk mitigation under a CSA is either cash or U.S. government securities.

Credit ratings downgrade Certain credit support annexes to master arrangements provide for rating dependent triggers, where additional collateral has to be pledged if a party's rating is downgraded. The Company also enters into master arrangements that provide for an additional termination event upon a party's rating downgrade.

The Company analyzes and monitors its potential contingent payment obligations resulting from a rating downgrade in its stress testing approach for liquidity risk on an ongoing basis. At December 31, 2020, the additional collateral required to be posted for a three-notch downgrade of U.S. Bank National Association would be $119.7 million. No additional collateral would be required for a three-notch downgrade of its parent company, U.S. Bancorp.

The following table summarizes the netting and collateral positions of the Company's derivatives and securities financing transactions ("SFT") using the Current Exposure Method. As defined by the Rule, the gross current credit exposure is calculated as the greater of the positive mark-to-market of the derivative or zero (asset derivatives).

Table 5 General Disclosure for Counterparty Credit Risk of OTC Derivative Contracts, Repo-Style Transactions, and Eligible Margin Loans

(Dollars in Millions, Unaudited)

December 31, 2020

December 31, 2019

Derivatives

Gross positive fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$6,001

$2,897

Netting benefit (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

-

(982)

Net derivatives credit exposure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$6,001

$1,915

Securities financing transactions

Gross positive fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$8,417

$7,146

Collateral held for risk mitigation (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6,461)

(4,564)

Excess collateral (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

164

96

Net SFT credit exposure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$2,120

$2,678

  • (a) Represents netting of derivative asset and liability balances, and related collateral, with the same counterparty subject to master netting agreements.

  • (b) All collateral is either cash or money market investments.

  • (c) Certain counterparties have provided collateral in excess of the fair value of the related contracts.

The distribution of gross current credit exposure is shown below:

(Dollars in Millions, Unaudited)

December 31, 2020

December 31, 2019

Gross Current Credit

Exposure at

Gross Current Credit

Exposure at

Derivatives

Exposure

Default (a)

Exposure

Default (a)

Credit derivatives (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$1

$757

$1

$721

Derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,072

9,358

2,066

7,366

Foreign exchange forwards and options . . . . . . . . . . . . . . . . . . .

1,605

2,750

767

1,761

Mortgage derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

323

273

63

58

Total derivative gross current credit exposure (c) . . . . . . . . .

$6,001

$13,138

$2,897

$9,906

Securities financing transactions

Repo-Style Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$8,391

$829

$7,125

$624

Eligible margin loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26

26

21

21

Total SFT gross current credit exposure (c) . . . . . . . . . . . . . .

$8,417

$855

$7,146

$645

(a) In addition to the current fair value for asset derivatives, EAD includes amounts for the potential future exposure which is calculated on both asset and liability derivatives.

(b) Credit derivatives have a notional amount of $2.9 billion for asset derivatives and $7.5 billion for liability derivatives at December 31, 2020 and $2.9 billion for asset derivatives and $7.5 billion for liability derivatives at December 31, 2019.

(c) The gross positive fair value of derivative contracts averaged $5.9 billion for the fourth quarter of 2020 and $2.2 billion for the fourth quarter of 2019. The gross positive fair value of SFT contracts averaged $6.3 billion for the fourh quarter of 2020 and $4.5 billion for the fourth quarter of 2019.

Securitization The disclosures in this section refer to securitizations held in the banking book and the regulatory capital on these exposures calculated according to the Rule. A participant in the securitization market is typically an originator, investor, or sponsor. The Company's primary securitization-related activity is investing in products created by third parties and entering into secured lending transactions with clients. Securitization exposures held in the banking book include traditional non-government or non-agency guaranteed ABS and MBS securitizations, loans, lines of credit, and liquidity facilities. The Company is not applying any credit risk mitigation to its securitization exposures and doesn't have exposure to securitization guarantors. The Company does not have any synthetic securitization exposure and does not act as a sponsor.

The Company calculates the regulatory capital requirement for securitization exposures in accordance with the hierarchy of approaches prescribed in the Rule. The Company utilizes the Simplified Supervisory Formula Approach ("SSFA") to determine risk-weighted assets for the majority of its securitization exposures. The SSFA framework considers the Company's seniority in the securitization structure and risk factors inherent in the underlying assets.

As presented in Table 6 below, the Company's total securitization exposures at December 31, 2020, were $3.8 billion compared to $3.7 billion at December 31, 2019.

Table 6 Securitizations

Securitizations by exposure type are shown below (a):

December 31, 2020

December 31, 2019

Mortgage-backed securities . . . . . . . . . . . . . . . . . . . . . Asset-backed securities . . . . . . . . . . . . . . . . . . . . . . . . Other (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total securitization exposure . . . . . . . . . . . . . . . . . .

(Dollars in Millions, Unaudited)

Securitizations by capital treatment and underlying exposure type are shown below (a):

December 31, 2020

December 31, 2019

Mortgage-backed securities . . . . . . . . . . . . . . . . . . . . Asset-backed securities . . . . . . . . . . . . . . . . . . . . . . . Other (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total securitization exposure . . . . . . . . . . . . . . . . .

(Dollars in Millions, Unaudited)

Securitizations by capital treatment and risk-weight bands are summarized below (a):

December 31, 2020

December 31, 2019

(Dollars in Millions, Unaudited)

Securitizations

Zero to 250% risk weighting . . . . . . . . . . . . . . . . .

$3,834

$837

$ -

$67

$3,707

$782

$ -

$63

251% to 500% risk weighting . . . . . . . . . . . . . . . .

2

7

-

1

3

7

-

1

501% to 1250% risk weighting . . . . . . . . . . . . . . .

10

10

102

9

12

2

127

10

Resecuritizations

Zero to 250% risk weighting . . . . . . . . . . . . . . . . .

-

-

-

-

-

-

-

-

251% to 500% risk weighting . . . . . . . . . . . . . . . . .

-

-

-

-

-

-

-

-

501% to 1250% risk weighting . . . . . . . . . . . . . . . .

-

-

-

-

-

-

-

-

Total securitization exposures . . . . . . . . . . . . . . . . . .

$3,846

$854

$102

$77

$3,722

$791

$127

$74

SSFA Risk

1250% Risk Capital impact of

Notional SSFA Risk

1250% Risk Capital impact of

Notional Amount Weighted Assets

Weighted RWA (c)

Amount Weighted Assets

Weighted RWA (c)

  • (a) Table related to the Company as an investor/originator in the securitization.

  • (b) Includes loans, lines of credit, and liquidity facilities.

  • (c) The capital impact of RWA is calculated by multiplying risk weighted assets by the minimum total risk-based capital ratio of 8%.

Equity Securities Not Subject to Market Risk Rule The Company has total equity exposures of approximately $16.0 billion, with $10.5 billion in individual equities and $5.5 billion in equity funds at December 31, 2020. The majority of the individual investments are related to the Company's community reinvestment activities, including tax-advantaged investments made through U.S. Bancorp Community Development Corporation. The Company uses the Simple Risk-Weight Approach for its individual equity securities.

Equity exposures in investment funds consist of Bank Owned Life Insurance ("BOLI"), private equity, money market and other equity funds. The Company uses the Full Look-Through Approach for BOLI assets in separate and hybrid accounts. Investment guidelines specify objectives and constraints for separate and hybrid account BOLI investment funds, requirements and duration parameters. In compliance with these guidelines, underlying investment exposures include Treasury, agency, asset-backed, and mortgage-backed securities and corporate notes and bonds.

Non-marketable equity securities are generally recorded either at historical cost or using the equity method. Details of the Company's accounting policy for equity investments and the valuation of financial instruments are provided in Note 1-Significant Accounting Policies in the Annual Report.

Marketable equity securities are generally recorded as available-for-sale and carried at fair value with unrealized net gains or losses reported within other comprehensive income (loss) in shareholders' equity. For regulatory capital purposes unrealized gains are excluded from tier 1 capital.

Equity securities maintained in the trading account are reported at fair value. At December 31, 2020, the Company does not have material equity exposure in the trading account. Changes in fair value are recorded in earnings.

The Company had no realized gains arising from the sales and liquidations of equity securities during the fourth quarter of 2020

Table 7 summarizes the Company's equity securities not subject to the market risk rule. Latent revaluation gains/losses are unrealized gains/losses on nonpublic equity securities recorded at cost; these latent revaluation gains/losses are not recognized in the Company's financial statements. Latent revaluation gains of $177 million and $274 million at December 31, 2020 and December 31, 2019, respectively.

Table 7 Equity Securities Not Subject to Market Risk Rule

December 31, 2020

December 31, 2019

(Dollars In Millions, Unaudited)

Nonpublic

Public

Total

Nonpublic

Public

Total

Amortized cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$15,927

$25

$15,952

$15,960

$38

$15,998

Unrealized gains/losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

-

-

-

-

-

-

Latent revaluation gains/losses (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

177

-

177

274

-

274

Fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$16,104

$25

$16,129

$16,234

$38

$16,272

Unrealized gains/losses included in risk-based capital . . . . . . . . . . . . . . . . . .

$ -

$-

$ -

$ -

$

-

$

-

(a) Represents unrealized gains (losses) on nonpublic equity securities recorded at cost. The unrealized gains (losses) are not recognized either in the balance sheet or through earnings.

The capital requirements of equity securities are shown below:

The capital requirements of equity securities, calculated using the 8% minimum total risk-based capital ratio, are shown below:

December 31, 2020

December 31, 2019

(Dollars In Millions, Unaudited)

0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full look-through approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total capital requirements for equity securities . . . . . . . . . . . . . . . . . . . . . .

MARKET RISK

In addition to interest rate risk, the Company is exposed to other forms of market risk, including: 1) trading activities which support customers' strategies to manage their own foreign currency, interest rate risk and funding activities; 2) hedging activities related to mortgage loans held for sale and MSRs; and 3) valuation of the Company's investment portfolio. Market risk risk-weighted assets for trading activities remained constant at $2.3 billion at December 31, 2020 compared to $2.3 billion at December 31, 2019. Refer to the "Market Risk Management" section of the "Management's Discussion and Analysis" section of the Annual Report for further discussion of market risk associated with client related trading and mortgage hedging.

CREDIT RISK: GENERAL DISCLOSURES

The Company's strategy for credit risk management includes well-defined, centralized credit policies, uniform underwriting criteria, and ongoing risk monitoring and review processes for all commercial and consumer credit exposures. The strategy also emphasizes diversification on an industry, geographic and customer level, regular credit examinations and management reviews of loans exhibiting deterioration of credit quality. The Company's credit risk management strategy, including its rating system, is subject to an independent review function to ensure the control mechanisms are operating as intended. For further detail on the Company's general credit risk management, see the "Credit Risk Management" section of "Management's Discussion and Analysis" in the Annual Report.

Disclosures included in this Credit Risk: General Disclosures are presented under the interpretation that the Rule's definition of "major types of credit exposures" corresponds to the definition in the Company's Annual Report. The tables report balance sheet classifications consistent with the Annual Report. Credit risk associated with loans, debt securities, commitments to extend credit and letters of credit are presented in this section. Credit risk associated withother off-balance sheet commitments and OTC derivatives are presented in other tables which is consistent with the Company's disclosures in the Annual Report. See the Company's Pillar 3 Disclosures Matrix for the location of other off-balance sheet credit risk disclosures.

The Company categorizes its loan portfolio into two segments, which is the level at which it develops and documents a systematic methodology to determine the allowance for credit losses based on expected credit losses given current credit quality and reasonable and supportable economic forecasts. The Company's loan portfolio segments are commercial lending and consumer lending. The Company further disaggregates its loans into various classes based on their underlying risk characteristics. The two classes within the commercial lending segment are commercial and commercial real estate loans. The three classes within the consumer lending segment are residential mortgages, credit card loans and other retail loans. Trends in delinquency and nonperforming ratios are an indicator, among other considerations, of credit risk within the Company's loan portfolios.

Table 8 provides industry distribution by major types of credit exposure. The credit exposure includes loans, contractual commitments to extend credit and letters of credit. This differs from the industry distribution by major types of credit exposure disclosed in the Company's Annual Report, which includes only loans.

Table 8 Credit Exposure by Industry (a)

December 31, 2020

December 31, 2019

(Dollars in Millions, Unaudited)

Total CommitmentsPercent of TotalTotal CommitmentsPercent of Total

Commercial

Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C&I Real-Estate Related . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Health Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Personal, Professional and Commercial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Automotive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Food and Beverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power (including Utilities) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Energy (including Oil & Gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Education & Non-profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . State / Municipal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Media and Entertainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Capital Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Building Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Metals and Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • $34,715 12.2 %

  • $30,878 11.4

    %

    28,740

    10.1

  • 29,275 10.8

    19,761

    6.9

  • 15,728 5.8

    17,588

    6.2

  • 15,401 5.7

    17,187

    6.0

  • 15,685 5.8

    14,608

    5.1

  • 13,891 5.1

    13,024

    4.6

  • 12,950 4.8

    10,734

    3.8

  • 10,092 3.7

    10,733

    3.8

  • 10,077 3.7

    10,521

    3.7

  • 11,194 4.1

    10,286

    3.6

  • 8,252 3.0

    10,156

    3.5

  • 9,635 3.5

    10,053

    3.5

  • 10,333 3.8

    9,301

    3.2

  • 8,791 3.2

    8,930

    3.1

  • 8,636 3.2

    7,278

    2.5

  • 6,475 2.4

    6,732

    2.4

  • 7,154 2.6

    3,951

    1.4

  • 4,191 1.5

    41,201

    14.4

  • 43,392 15.9

Total commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Commercial real estate

285,499

100.0

  • 272,030 100.0

    Business owner occupied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lodging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Multi Family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Residential Land & Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    9,272

    18.3

  • 9,805 19.2

    3,638

    7.2

  • 3,442 6.7

    3,310

    6.5

  • 3,876 7.6

    12,702

    25.1

  • 12,066 23.6

    8,035

    15.9

  • 7,344 14.5

    3,814

    7.5

  • 4,253 8.3

    4,434

    8.8

  • 4,632 9.1

    5,398

    10.7

  • 5,620 11.0

Total commercial real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

50,603

100.0

  • 51,038 100.0

    Residential mortgages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other retail

    76,475

    100.0

  • 71,003 100.0

    140,173

    100.0

  • 136,562 100.0

    Retail leasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Home equity and second mortgages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    8,150

    8.8

  • 8,490 9.0

    34,456

    37.0

  • 38,242 40.7

    50,396

    54.2

  • 47,183 50.3

Total other retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

93,002

100.0

Total commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$645,752

100.0 %

93,915 $624,548

100.0 100.0 %

Table 9 provides the geographic distribution of major types of credit exposure. The credit exposure includes loans, contractual commitments to extend credit and letters of credit. This differs from the geographic distribution by major types of credit exposure disclosed in the Company's Annual Report, which includes only loans.

Table 9 Credit Exposure by Geography (a)

December 31, 2020

December 31, 2019

(Dollars in Millions, Unaudited)

Total Percent Commitments of Total

Total Percent Commitments of Total

Commercial

California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Colorado . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Iowa, Kansas, Nebraska, North Dakota, South Dakota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Arkansas, Indiana, Kentucky, North Carolina, Tennessee . . . . . . . . . . . . . . . . . . . . . . . . . . . Idaho, Montana, Wyoming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Arizona, Nevada, New Mexico, Utah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • $36,241 12.7 %

  • $32,245 11.9 %

    8,829

    3.1

  • 9,035 3.3

    16,143

    5.7

  • 14,374 5.3

    18,397

    6.4

  • 17,358 6.4

    9,981

    3.5

  • 9,680 3.6

    11,784

    4.1

  • 11,843 4.4

    5,746

    2.0

  • 5,140 1.9

    10,726

    3.8

  • 9,874 3.6

    10,418

    3.7

  • 9,596 3.5

    12,024

    4.2

  • 11,902 4.4

    18,759

    6.6

  • 18,131 6.7

    3,245

    1.1

  • 2,991 1.1

    9,514

    3.3

  • 9,565 3.4

  • Total banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171,807 60.2

    • 161,734 59.5

  • Outside the Company's banking region

  • Florida, Michigan, New York, Pennsylvania, Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,664 20.5

    • 56,876 20.9

  • All other states . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,028 19.3

  • 53,420 19.6

Total outside the Company's banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

113,692

39.8

110,296

40.5

Total commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

285,499

100.0

  • 272,030 100.0

    Commercial real estate

    California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Colorado . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Iowa, Kansas, Nebraska, North Dakota, South Dakota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Arkansas, Indiana, Kentucky, North Carolina, Tennessee . . . . . . . . . . . . . . . . . . . . . . . . . . . Idaho, Montana, Wyoming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Arizona, Nevada, New Mexico, Utah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    12,252

    24.2

  • 12,748 25.0

    2,343

    4.6

  • 2,255 4.4

    1,865

    3.7

  • 1,651 3.2

    2,255

    4.5

  • 2,382 4.7

    1,031

    2.0

  • 1,246 2.4

    1,383

    2.7

  • 1,496 2.9

    2,082

    4.1

  • 2,066 4.0

    4,560

    9.0

  • 4,215 8.3

    1,703

    3.4

  • 1,843 3.6

    2,099

    4.2

  • 2,290 4.5

    3,885

    7.7

  • 4,032 7.9

    1,193

    2.4

  • 1,179 2.3

    3,815

    7.5

  • 4,109 8.1

Total banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Outside the Company's banking region

40,466

80.0

  • 41,512 81.3

    Florida, Michigan, New York, Pennsylvania, Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . All other states . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    5,632

    11.1

  • 5,782 11.4

    4,505

    8.9

  • 3,744 7.3

Total outside the Company's banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10,137

20.0

Total commercial real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$50,603

100.0 %

9,526 $51,038

18.7 100.0 %

(a) Net of participations sold.

Table 9 Credit Exposure by Geography Continued (a)

(Dollars in Millions, Unaudited)

Residential mortgages

California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Colorado . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Iowa, Kansas, Nebraska, North Dakota, South Dakota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Arkansas, Indiana, Kentucky, North Carolina, Tennessee . . . . . . . . . . . . . . . . . . . . . . . . . . . Idaho, Montana, Wyoming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Arizona, Nevada, New Mexico, Utah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Outside the Company's banking region

Florida, Michigan, New York, Pennsylvania, Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . All other states . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total outside the Company's banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total residential mortgages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Credit card

California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Colorado . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Iowa, Kansas, Nebraska, North Dakota, South Dakota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Arkansas, Indiana, Kentucky, North Carolina, Tennessee . . . . . . . . . . . . . . . . . . . . . . . . . . . Idaho, Montana, Wyoming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Arizona, Nevada, New Mexico, Utah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

December 31, 2020

Total Percent Commitments of Total

  • $22,994 30.1 %

3,777

4.9

3,786

5.0

4,378

5.7

1,724

2.3

2,241

2.9

2,399

3.1

3,943

5.2

1,391

1.8

1,969

2.6

4,372

5.7

1,334

1.7

6,087

8.0

60,395

79.0

7,367

9.6

8,713

11.4

16,080

21.0

76,475

100.0

14,606

10.4

5,170

3.7

6,743

4.8

7,614

5.4

3,975

2.8

6,666

4.8

4,122

2.9

5,289

3.8

7,217

5.2

6,549

4.7

11,617

8.3

2,332

1.7

7,044

5.0

  • Total banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88,944 63.5

    Outside the Company's banking region

  • Florida, Michigan, New York, Pennsylvania, Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,352 19.5

  • All other states . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,877 17.0

Total outside the Company's banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Retail loans

California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Colorado . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Iowa, Kansas, Nebraska, North Dakota, South Dakota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Arkansas, Indiana, Kentucky, North Carolina, Tennessee . . . . . . . . . . . . . . . . . . . . . . . . . . . Idaho, Montana, Wyoming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Arizona, Nevada, New Mexico, Utah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

51,229

36.5

140,173

100.0

16,614

17.9

4,680

5.0

4,349

4.7

7,798

8.4

3,327

3.6

4,143

4.5

3,729

4.0

4,386

4.7

2,598

2.8

4,024

4.3

5,685

6.1

2,203

2.4

4,788

5.1

  • Total banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,324 73.5

    Outside the Company's banking region

  • Florida, Michigan, New York, Pennsylvania, Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,764 15.9

  • All other states . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,914 10.6

Total outside the Company's banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total retail loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

December 31, 2019

Total Percent Commitments of Total

  • $22,945 32.4 %

  • 3,864 5.4

  • 3,488 4.9

  • 4,359 6.1

  • 1,704 2.4

  • 2,017 2.8

  • 2,485 3.5

  • 4,075 5.7

  • 1,503 2.1

  • 1,970 2.8

  • 3,921 5.5

  • 1,354 1.9

  • 5,229 7.4

  • 58,914 82.9

  • 5,162 7.3

  • 6,927 9.8

12,089

17.1

  • 71,003 100.0

  • 14,428 10.6

  • 5,092 3.7

  • 6,697 4.9

  • 7,511 5.5

  • 3,937 2.9

  • 6,609 4.8

  • 4,112 3.0

  • 5,237 3.8

  • 7,033 5.2

  • 6,433 4.7

  • 11,373 8.3

  • 2,308 1.7

  • 6,872 5.1

  • 87,642 64.2

  • 26,226 19.2

  • 22,694 16.6

48,920

35.8

  • 136,562 100.0

  • 17,376 18.5

  • 4,920 5.2

  • 4,861 5.2

  • 8,138 8.7

  • 3,502 3.7

  • 4,223 4.5

  • 3,853 4.1

  • 4,446 4.7

  • 2,651 2.8

  • 4,181 4.5

  • 5,488 5.8

  • 2,243 2.4

  • 4,887 5.2

  • 70,769 75.3

  • 13,432 14.4

  • 9,714 10.3

24,678 93,002 $645,752

26.5 100.0 100.0 %

23,146 93,915 $624,548

24.7 100.0 100.0 %

(a) Net of participations sold.

The Company's investment securities portfolio includes U.S. Treasury and agencies, agency mortgage-backed securities, and obligations of state and political subdivisions (municipal securities). The most important feature management relies on when assessing credit risk for U.S. Treasury and agencies and agency mortgage-backed securities is the guarantee of the federal government or its agencies. Geography is one of the factors the Company considers in managing its investment in municipal securities. Table 10 shows that the Company's municipal securities are distributed throughout the major regions of the United States.

Table 10 Municipal Securities by Geography

December 31, 2020

December 31, 2019

Percent

Percent

(Dollars in Millions, Unaudited)

Amountof Total

Amount of Total

Municipal securities

Southeast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . West . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Northeast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Southwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Midwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Multi-state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$2,435

27.5 %

$1,792 26.3 %

2,291

25.8

1,738 25.5

1,905

21.5

1,580 23.2

1,336

15.1

996 14.6

894 -

10.1 -

708 10.4

Total municipal securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$8,861

100.0 %

- $6,814

- 100.0 %

Table 11 provides a maturity distribution by loan category for loans, contractual commitments to extend credit and letters of credit. The contractual amounts of commitments to extend credit and letters of credit represent the Company's maximum exposure to credit loss, in the event of default by the borrower if the borrower were to fully draw against the commitment. The Company manages this credit risk by using the same credit policies it applies to loans. Management assesses the borrower's credit worthiness to determine the necessary collateral, which may include marketable securities, receivables, inventory, equipment and real estate. Refer to the Annual Report for further details.

Table 11 Credit Risk and Maturity by Exposure Type Loan maturity distribution by loan category:

One Year

(Dollars in Millions, Unaudited)

or Less

Five Years

Years

Total

Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$42,147

$58,051

$2,673

$102,871

Commercial real estate . . . . . . . . . . . . . . . . . . . . . . .

11,748

20,866

6,697

39,311

Residential mortgages . . . . . . . . . . . . . . . . . . . . . . .

2,735

9,888

63,532

76,155

Retail credit card . . . . . . . . . . . . . . . . . . . . . . . . . . .

22,346

-

-

22,346

Other Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10,240

25,254

21,530

57,024

Total loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$89,216

$114,059

$94,432

$297,707

Through Over Five

December 31, 2020

Over One

Through Over Five

One Year

or Less

Five Years

Years

Total

$40,211

$59,926

$3,726

$103,863

10,322

22,029

7,395

39,746

2,490

9,041

59,055

70,586

24,789

-

-

24,789

10,830

24,741

21,547

57,118

$88,642

$115,737

$91,723

$296,102

December 31, 2019 Over One

The ending and average contract (notional) amounts of unfunded commitments to extend credit and letters of credit, excluding those commitments considered derivatives, are shown below. Since the Company expects many of the commitments to expire without being drawn, total commitment amounts do not necessarily represent the Company's future liquidity requirements.

The ending and average contract (notional) amounts of unfunded commitments to extend credit and letters of credit, excluding those commitments considered derivatives, are shown below. Since the Company expects many of the commitments to expire without being drawn, total commitment amounts do not necessarily represent the Company's future liquidity requirements.

Unfunded Commitment maturity distribution by loan category:

December 31, 2020

December 31, 2019

Ending Balance

(Dollars in Millions, Unaudited)

Unfunded commitments to extend credit (a)

Commercial and commercial real estate . . . . . . .

$43,642

Corporate and purchasing cards (b) . . . . . . . . . . .

29,541

Residential mortgages . . . . . . . . . . . . . . . . . . . . .

319

Retail credit card (b) . . . . . . . . . . . . . . . . . . . . . . .

117,827

-

Other retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12,980

22,998

Total unused loan commitments . . . . . . . . . . . .

204,309

133,381

Other non-loan related unused commitments . . . .

6,486

10

Total commitments to extend credit . . . . . . . . .

$210,795

$133,391

Letters of credit (a)

Standby . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$4,526

$5,263

Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

536

30

(a) Net of participations sold.

(b) Primarily cancelable at the Company's discretion.

Average

Balance

$110,382

$154,024

$139,475

-

29,541

28,767

320

505

117,827

111,834

35,978

36,894

337,690

317,475

6,496

6,316

$344,186

$323,791

$9,789

$10,358

566

339

1

One Year or Greater Than

Less One Year Total

Average Balance

Ending Balance

One Year or Greater Than

Less One YearTotal

$153,959

29,233

373

117,737

36,308

$31,235 $108,303 $139,538

29,296 - 29,296

416

1 417

111,773 - 111,773

12,614 24,183 36,797

337,610

185,334

132,487

317,821

6,553

6,325

-6,325

$344,163

$191,659

$132,487

$324,146

$9,815 518

$4,676 339

$5,582 28

$10,258 367

Table 12 provides industry detail of the past due and nonperforming loans for each class within the commercial lending segment and further loan type breakout within the other retail class. The Company has continued to see improvement in past due and nonperforming loans across most loan classes. Refer to the Annual Report for further details.

Table 12 Past Due and Nonperforming Loans by Industry

December 31, 2020

Accruing Loans

Industry Group (Dollars in Millions, Unaudited) Commercial

Amount

30-89 Days Past Due

90 or More Days Past Due

Total Nonaccrual

As a Percent

As a Percent

As a Percent

of Ending

of Ending

of Ending

Amount Loans

Amount Loans

Loans

Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C&I Real-Estate Related . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Health Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Personal, Professional and Commercial Services . . . . . . . . . . . . . . . . . . Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Automotive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Food and Beverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power (including Utilities) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Energy (including Oil & Gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Education & Non-profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . State / Municipal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Media and Entertainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Capital Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Building Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Metals and Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$5

.04 %

18 .13

26 .33

$0 - -- - -

%

$2 .02 %

5 .04

23 .29

27 .36

4 .05

46 .61

14 .27

1 .02

43 .81

9 .23

2 .05

3 .08

1 .05

1 .04

15 .32

36 1.14

5 .09

11 .32

9 .31

10 .36

12 .41

4 .21

106 .86

Total commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

314 .31

- - - - - - - - - - - - - 50 55

- - - - - - - - - - - - - .40 .05

5 .13

10 .23

6 .16

-

-141 5.37

11 .23

2 .06

18 .31

16 .46

3 .10

7 .25

25 .86

5 .26

7 .06

375 .36

Commercial real estate

Business owner occupied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lodging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Multi Family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Residential Land & Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18 .21

2 .07

12 .43

13 .15

2 .03

78 2.14

12 .44

46 1.21

- - - - - - 2 -

- - - - - - .07 -100 1.16

2 .07

137 4.87

16 .18

7 .12

174 4.77

Total commercial real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

183 .47

2 .01

Residential mortgages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

244 .32

137 .18

- 14 450 245

- .37

Credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other retail

231 1.04

197 .88

-1.14 .32 -

Retail leasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Home equity and second mortgages . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

35 .43

4 .05

13 .16

68 .54

45 .36

107 .86

215 .60

37 .10

34 .09

Total other retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

318 $1,290

.56 .43 %

86 $477

.15 .16 %

154 $1,224

.27 .41 %

Table 12 Past Due and Nonperforming Loans by Industry Continued

December 31, 2019

Industry Group (Dollars in Millions, Unaudited) Commercial

Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C&I Real-Estate Related . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Health Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Personal, Professional and Commercial Services . . . . . . . . . . . . . . . . . . Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Automotive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Food and Beverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power (including Utilities) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Energy (including Oil & Gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Education & Non-profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . State / Municipal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Media and Entertainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Capital Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Building Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Metals and Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Commercial real estate

Business owner occupied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lodging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Multi Family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 .07

Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 .09

Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 .18

Residential Land & Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 .03

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 .03

Total commercial real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Residential mortgages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other retail

Retail leasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Home equity and second mortgages . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total other retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Accruing Loans

30-89 Days Past Due

90 or More Days Past Due

Total Nonaccrual

As a Percent

As a Percent

As a Percent

of Ending

of Ending

of Ending

Amount Loans

Amount Loans

$1 .01 %

5 .03

14 .22

39 .76

53 .78

2 .04

2 .03

12 .33

3 .07

--1 .03

16 .32

5 .12

6 .16

3 .09

6 .25

5 .15

23 1.02

8 .06

204 .20

47 .52

1 .04

10 .32

3 .04

2 .03

13 .33

2 .07

4 .11

82 .21

241 .34

--

13 .15

116 .77

36 .11

165 $692

.29 .23 %

Impaired loans include all nonaccrual and troubled debt restructured ("TDR") loans. The past due and nonperforming loan tables include $582 million of TDRs that are not performing in accordance with the modified terms in nonperforming loans. In addition, performing TDRs that are past due are reported according to contractual delinquency. Performing TDRs of $92 million are included in 90 days past due and performing TDRs of $155 million are included in 30-89 days past due. The past due and nonperforming loan tables above exclude approximately $1.9 billion of TDRs that are considered current with the modified terms. See the Company's Annual Report for more information on TDRs and nonperforming loans.

In addition to industry, the Company uses the geography of the borrower's business or property location in the case of real estate secured loans, among other key risk characteristics, to determine estimates about the likelihood of default by the borrowers and the severity of loss in the event of default. Table 13 provides geographic detail on past due and nonperforming loans.

Table 13 Past Due and Nonperforming Loans by Geography

(Dollars in Millions, Unaudited)

Nonaccrual Loans

30-89 Days Past Due

90 or More Days Past Due

Nonaccrual

As a Percent

As a Percent

As a Percent

of Ending

of Ending

of Ending

Amount Loans

Amount Loans

December 31, 2020 Accruing Loans

California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Colorado . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Iowa, Kansas, Nebraska North Dakota, South Dakota . . . . . . . . . . . . Arkansas, Indiana, Kentucky, North Carolina, Tennessee . . . . . . . . . . Idaho, Montana, Wyoming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Arizona, Nevada, New Mexico, Utah . . . . . . . . . . . . . . . . . . . . . . . . . .

Total banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Outside the Company's banking region

Florida, Michigan, New York, Pennsylvania, Texas . . . . . . . . . . . . All other states . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Outside the Company's banking region

(Dollars in Millions, Unaudited)

California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Colorado . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Iowa, Kansas, Nebraska North Dakota, South Dakota . . . . . . . . . . . . Arkansas, Indiana, Kentucky, North Carolina, Tennessee . . . . . . . . . . Idaho, Montana, Wyoming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Arizona, Nevada, New Mexico, Utah . . . . . . . . . . . . . . . . . . . . . . . . . .

Florida, Michigan, New York, Pennsylvania, Texas . . . . . . . . . . . . All other states . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Table 14 shows the amount of the allowance for credit losses by loan portfolio class. Although the Company determines the amount of each element of the allowance separately and considers this process to be an important credit management tool, the entire allowance for credit losses is available for the entire loan portfolio. The actual amount of losses incurred can vary significantly from the estimated amounts. Effective January 1, 2020, the Company adopted new accounting guidance which changed previous impairment recognition to a model that is based on expected losses rather than incurred losses. This change resulted in increased allowance for credit loss.

Management evaluates the appropriateness of the allowance for credit losses on a quarterly basis. The allowance considers expected losses for the remaining lives of the applicable assets. Multiple economic scenarios are considered over a three-year reasonable and supportable forecast period, which incorporates historical loss experience in years two and three. After the forecast period, the Company fully reverts to long-term historical loss experience, adjusted for prepayments and characteristics of the current loan and lease portfolio, to estimate losses over the remaining lives. The economic scenarios are updated at least quarterly and are designed to provide a range of reasonable estimates, both better and worse than current expectations. Refer to "Management's Discussion and Analysis--Analysis and Determination of the Allowance for Credit Losses" in the Annual Report for further discussion on the evaluation of the allowance for credit losses.

Table 14 Elements of the Allowance for Credit Losses

December 31, 2020

December 31, 2019

(Dollars in Millions, Unaudited)

Amount

Ending Loans

Amount

Ending Loans

Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$2,423

2.36

%

$1,484

1.43

%

Commercial real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,544

3.93

799

2.01

Residential mortgages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

573

.75

433

.61

Credit card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,355

10.54

1,128

4.55

Other retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,115

1.96

647

1.13

Total allowance for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$8,010

2.69

%

$4,491

1.52

%

FORWARD-LOOKING STATEMENTS

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

This Pillar 3 Disclosures document contains forward-looking statements about the Company. 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 the Company.

Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. The COVID-19 pandemic is adversely affecting us, our customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on our 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 the Company'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 the Company in substantial and unpredictable ways. The Company's results could also be adversely affected by changes in interest rates; further 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; changes in customer behavior and preferences; breaches in data security; failures to safeguard personal information; 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 the Company's Annual Report for the year ended December 31, 2020, 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) ofthe Securities Exchange Act of 1934. In addition, factors other than these risks also could adversely affect the Company's results, and the reader should not consider these risks to be a complete set of all potential risks or uncertainties. Forward-looking statements speak only as of the date hereof, and the Company undertakes no obligation to update them in light of new information or future events.

Appendix A

U.S. Bancorp Basel Capital Pillar 3 Disclosures Matrix

As of December 31, 2020

In compliance with the Section-63 Disclosure Requirements by certain institutions with consolidated assets of greater than $50 Billion that are not advanced approaches institutions: In accordance with the rule, U.S. Bancorp the ("Company" or "USB") has provided the following summary of the required disclosure locations. All documents referenced can be found at usbank.com.

Table

Disclosure Requirement

Disclosure Location

Disclosure

Page

Source Reference - if applicable

Scope of Application

Qualitative:

(a)

The name of the top corporate entity in the group to which the Risk-Based Capital Standards apply:

Basel Pillar 3 Disclosures (Unaudited):

Overview

3

(b)

A brief description of the differences in the basis for consolidating entities for accounting and regulatory purposes, with a description of those entities:

  • (1) that are fully consolidated;

  • (2) that are deconsolidated and deducted from total capital;

  • (3) for which the total capital requirement is deducted; and

  • (4) that are neither consolidated nor deducted (for example, where the investment in the entity is assigned a risk weight in accordance with this subpart).

Not applicable. The Company does not have differences in the basis of consolidation for accounting and regulatory purposes.

None

None

(c)

Any restrictions, or other major impediments, on transfer of funds or regulatory capital within the group.

2020 Annual Report (Audited):

Note 24--U.S. Bancorp (Parent Company) Consolidated Balance Sheet

2020 Annual Report pg 139-140

Quantitative:

(d)

The aggregate amount of surplus capital of insurance subsidiaries included in the regulatory capital of the consolidated group.

FR Y9-C

Schedule HC-R Part I Regulatory Capital Components and Ratios

FR Y9-C

Schedule HC-R Part I

(e)

The aggregate amount by which actual regulatory capital is less than the minimum regulatory capital requirement in all subsidiaries with regulatory capital requirements and the name(s) of the subsidiaries with such deficiencies.

None.

None

None

Capital Structure

Qualitative:

(a)

Summary information on the terms and conditions of the main features of all regulatory capital instruments.

2020 Annual Report (Audited):

MD&A Capital Management Note 13--Long-Term Debt Note 14--Shareholders' Equity Note 15--Earnings per Share

2020 Annual Report

  • pg 57-58

  • pg 103

  • pg 104-108

  • pg 109

Quantitative:

(b)

The amount of tier 1 capital, with separate disclosure of:

  • (1) common stock/surplus;

  • (2) retained earnings;

  • (3) Common Equity minority interest

  • (4) AOCI (net of tax) and other reserves

  • (5) Regulatory adjustments and deductions made to common equity tier 1 capital.

FR Y9-C

Schedule HC-R Part I Regulatory Capital Components and Ratios

FR Y9-C

Schedule HC-R Part I

(c)

The amount of tier 1 capital, with separate disclosure of:

(1) Additional tier 1 capital elements, including additional tier 1 capital instruments and tier 1 minority interest not included in common equity tier 1 capital; and

(2) Regulatory adjustments and deductions made to total capital.

FR Y9-C

Schedule HC-R Part I Regulatory Capital Components and Ratios

2020 Annual Report (Audited):

Consolidated Balance Sheet

FR Y9-C

Schedule HC-R Part I

2020 Annual Report pg 36

(d)

The amount of total capital, with separate disclosure of:

(1) Tier 2 capital elements, including tier 2 capital instruments and total capital minority interest not included in tier 1 capital; and

(2) Regulatory adjustments and deductions made to total capital.

FR Y9-C

Schedule HC-R Part I Regulatory Capital Components and Ratios

FR Y9-C

Schedule HC-R Part I

Capital Adequacy

Qualitative:

(a)

A summary discussion of the bank holding company's approach to assessing the adequacy of its capital to support current and future activities.

2020 Annual Report (Audited):

MD&A Capital Management

MD&A Non-GAAP Financial Measures Note 14--Shareholders' Equity

Basel Pillar 3 Disclosures (Unaudited):

Internal Capital Adequacy Assessment Process ("ICAAP")

4-5

2020 Annual Report

  • pg 57-58

  • pg 64-65

  • pg 104-108

Quantitative:

(b)

Risk-weighted assets for credit risk from: Risk-weighted assets for:

  • (1) Exposures to sovereign entities;

  • (2) Exposures to certain supranational entities and MDBs;

  • (3) Exposures to depository institutions, foreign banks, and credit unions;

  • (4) Exposures to PSEs;

  • (5) Corporate exposures;

  • (6) Residential mortgage exposures;

  • (7) Statutory multifamily mortgages and pre-sold construction loans;

  • (8) HVCRE loans;

  • (9) Past due loans;

  • (10) Other assets;

  • (11) Cleared transactions;

  • (12) Default fund contributions;

  • (13) Unsettled transactions;

  • (14) Securitization exposures; and

  • (15) Equity exposures

FR Y9-C

Schedule HC-R Part II. Risk Weighted Assets

FR Y9-C

Schedule HC-R Part II.

(c)

Standardized market risk-weighted assets as calculated under subpart F of this part:

FR Y9-C

Schedule HC-R Part II. Risk Weighted Assets

FR Y9-C

Schedule HC-R Part II.

Table

Disclosure Requirement

Disclosure Location

Disclosure

Page

Source Reference - if applicable

(d)

Common Equity tier 1, tier 1 and total risk-based capital ratios:

  • (1) For the top consolidated group; and

  • (2) For each Depository Institution subsidiary.

FR Y9-C - Consolidated Financial Statement for Holding Companies Schedule HC-R Part I Regulatory Capital Components and Ratios

U.S. Bancorp

FFIEC 031-Consolidated Reports of Conditions and Income for a Bank with Domestic and Foreign Offices

Schedule RC-R Part I Regulatory Capital Components and Ratios U.S. Bank National Association (Cincinnati, OH)

Basel Pillar 3 Disclosures (Unaudited):

Table 1-- Regulatory Capital Ratios

5

FR Y9-C

Schedule HC-R Part I

FFIEC 031

Schedule HC-R Part I

(e)

Total Standardized Risk Weighted Assets

FR Y9-C - Consolidated Financial Statement for Holding Companies Schedule HC-R

Basel Pillar 3 Disclosures (Unaudited):

Table 4 Risk Weighted Assets

8

FR Y9-C Schedule HC-R .

Capital Conservation and Countercyclical Capital Buffers

Quantitative:

(a)

At least quarterly, the bank holding company must calculate and publicly disclose the capital conservation buffer as described under §.11 of subpart B.

FR Y9-C - Consolidated Financial Statement for Holding Companies Schedule HC-R Part I Regulatory Capital Components and Ratios Basel Pillar 3 Disclosures (Unaudited):

Capital Conservation Buffer

5

FR Y9-C Schedule HC-R

(b)

At least quarterly, the bank holding company must calculate and publicly disclose the buffer retained income of the bank holding company.

Basel Pillar 3 Disclosures (Unaudited):

Stress Capital Buffer

5

(c)

At least quarterly, the bank holding company must calculate and publicly disclose any limitations it has on distributions and discretionary bonus payments resulting from the capital conservation buffer and the countercyclical capital buffer framework described under §.11 of subpart B, including the maximum payout amount for the quarter.

Basel Pillar 3 Disclosures (Unaudited):

Stress Capital Buffer

5

General Qualitative Disclosure Requirement

For each separate risk area described in tables 5 through 10, the bank holding company must describe its risk management objectives and policies, including:

  • (1) Strategies and processes;

  • (2) The structure and organization of the relevant risk management function;

  • (3) The scope and nature of risk reporting and/or measurement systems;

  • (4) Policies for hedging and/or mitigating risk and strategies and processes for monitoring the continuing effectiveness of hedges/mitigants.

2020 Annual Report (Audited):

  • MD&A--Balance Sheet Analysis

  • • MD&A--Corporate Risk Profile

  • • Note 1--Significant Accounting Policies

  • • Note 4--Investment Securities

  • • Note 5--Loans and Allowance for Credit Losses

  • • Note 7--Accounting For Transfers and Servicing of Financial

    Assets and Variable Interest Entities

  • • Note 19--Derivative Instruments

  • • Note 21--Fair Values of Assets and Liabilities

  • • Note 22--Guarantees and Contingent Liabilities

Basel Pillar 3 Disclosures (Unaudited):

Credit Risk: General Disclosures

12-21

2020 Annual Report

  • pg 28-36

  • pg 36-57

  • pg 79-86

  • pg 87-89

  • pg 90-95

  • pg 97-98

  • pg 119-123

  • pg 127-133

  • pg 133-136

http://phx.corporate-ir.net/phoenix.zhtml?c=117565 &p=irol-govboard

Credit Risk - General Disclosures

Qualitative:

(a)

The general qualitative disclosure requirement with respect to credit risk (excluding counterparty credit risk disclosed in accordance with Table 7) including:

  • (1) Policy for determining past due or delinquency status;

  • (2) Policy for placing loans on nonaccrual;

  • (3) Policy for returning loans to accrual status;

  • (4) Definition of and policy for identifying impaired loans (for financial accounting purposes).

(5) Description of the methodology that the entity uses to estimate its allowance for loan and lease losses, including statistical methods used where applicable;

  • (6) Policy for charging-off uncollectible amounts; and

  • (7) Discussion of the bank's credit risk management policy

020 Annual Report (Audited):

MD&A--Balance Sheet Analysis MD&A--Corporate Risk Profile

Note 1--Significant Accounting Policies Note 4--Investment Securities

Note 5--Loans and Allowance for Credit Losses Note 22--Guarantees and Contingent Liabilities

asel Pillar 3 Disclosures (Unaudited):

redit Risk: General Disclosures

12-21

2020 Annual Report

pg28-36

  • pg 36-57

  • pg 79-86

  • pg 87-89

  • pg 90-95

  • pg 133-136

Quantitative:

(b)

Total credit risk exposures and average credit risk exposures, after accounting offsets in accordance with GAAP, without taking into account the effects of credit risk mitigation techniques (for example, collateral and netting not permitted under GAAP), over the period categorized by major types of credit exposure. For example, bank holding companies could use categories similar to that used for financial statement purposes. Such categories might include, for instance:

(1) Loans, off-balance sheet commitments, and other non-derivative off-balance sheet exposures;

  • (2) Debt securities; and

  • (3) OTC derivatives.

020 Annual Report (Audited):

Note 5--Loans and Allowance for Credit Losses

Consolidated Daily Average Balance Sheet and Related Yields and Rates

R Y-9C (Unaudited):

Schedule HC-B - Securities

Schedule HC-L - Derivatives and Off-Balance-Sheet Items

asel Pillar 3 Disclosures (Unaudited):

able 5--General Disclosure for Counterparty Credit Risk of OTC Derivative Contracts, Repo-tyle Transactions, and Eligible Margin Loans able 11--Credit Risk and Maturity by Exposure Type

10 16-17

2020 Annual Report pg 90-95 pg 146-147

FR Y-9C pg 16-18 pg 28-31

(c)

Geographic distribution of exposures, categorized in significant areas by major types of credit exposure.

asel Pillar 3 Disclosures (Unaudited): able 9--Credit Exposure by Geography able 10--Municipal Securities by Geography

14-15 16

(d)

Industry or counterparty type distribution of exposures, broken down by major types of credit exposure.

R Y-9C (Unaudited):

Schedule HC-B - Securities

Schedule HC-L - Derivatives and Off-Balance-Sheet Items asel Pillar 3 Disclosures (Unaudited):

able 8--Credit Exposure by Industry

13

FR Y9-C Schedule HC-B Schedule HC-L

By major industry or counterparty type:

2020 Annual Report (Audited):

(1) Amount of impaired loans for which there was a related allowance under GAAP;

(2) Amount of impaired loans for which there was no related allowance under GAAP;

  • (3) Amount of loans past due 90 days and on nonaccrual;

    (e)

  • (4) Amount of loans past due 90 days and still accruing;

  • (5) The balance in the allowance for loan and lease losses at the end of each period, disaggregated on the basis of the entity's impairment method. To disaggregate the information required on the basis of impairment methodology, an entity shall separately disclose the amounts based on the requirements in GAAP; and

  • Analysis and Determination of the Allowance for Credit

Losses

Basel Pillar 3 Disclosures (Unaudited):

Table 12--Past Due and Nonperforming Loan Portfolio By Industry

Basel Pillar 3 Disclosures (Unaudited):

Table 12--Past Due and Nonperforming Loan Portfolio By Industry

Basel Pillar 3 Disclosures (Unaudited):

Table 14--Elements of the Allowance for Credit Losses

2020 Annual Report: pg 46-50

18-19 18-19

19

Table

Disclosure Requirement

Disclosure Location

Disclosure

Page

Source Reference - if applicable

(6) Charge-offs during the period.

2020 Annual Report (Audited):

  • Table 18--Summary of Allowance for Credit Losses

2020 Annual Report pg 47

(f)

Amount of impaired loans and, if available, the amount of past due loans categorized by significant geographic areas including, if practical, the amounts of allowances related to each geographical area, further categorized as required by GAAP.

Basel Pillar 3 Disclosures (Unaudited):

Table 16--Past Due and Nonperforming Loans by Geography

Allowance by geography is not practical or meaningful to disclose since management does not use this information to allocate general or specific allowance components.

20

(g)

Reconciliation of changes in the allowances for loan and lease losses.

2020 Annual Report (Audited):

  • Table18--Summary of Allowance for Credit Losses

2020 Annual Report pg 47

(h)

Remaining contractual maturity breakdown (for example, one year or less) of the whole portfolio, broken down by major types of credit exposure.

FR Y-9C (Unaudited):

  • • Schedule HC-B - Securities

  • • Schedule HC-L - Derivatives and Off-Balance-Sheet Items

Basel Pillar 3 Disclosures (Unaudited):

Table 11--Credit Risk and Maturity by Exposure Type

16-17

FR Y-9C pg 16-18 pg 28-31

General Disclosure for Counterparty Credit Risk of OTC Derivative Contracts, Repo-Style Transactions, and Eligible Margin Loans

Qualitative:

(a)

The general qualitative disclosure requirement with respect to OTC derivatives, eligible margin loans, and repo-style transactions, including:

(1) Discussion of methodology used to assign credit limits for counterparty credit exposures;

(2) Discussion of policies for securing collateral, valuing and managing collateral, and establishing credit reserves;

  • (3) Discussion of the primary types of collateral taken;

  • (4) Discussion of the impact of the amount of collateral the bank holding company would have to provide given a deterioration in the bank's own creditworthiness.

2020 Annual Report (Audited):

  • • MD&A Use of Derivatives to Manage Interest Rate and Other Risks (Unaudited)

  • • Note 1--Significant Accounting Policies (Audited)

  • • Note 19--Derivative Instruments (Audited)

  • • Note 20--Netting Arrangements for Certain Financial Instruments (Audited)

  • • Note 21--Fair Values of Assets and Liabilities (Audited)

Basel Pillar 3 Disclosures (Unaudited):

Counterparty Credit Risk of OTC Derivative Contracts, Repo-Style Transactions, and Eligible Margin Loans

9-10

2020 Annual Report

  • pg 52

  • pg 79-86

  • pg 119-123

  • pg 124-126

  • pg 127-133

Quantitative:

(b)

Gross positive fair value of contracts, collateral held (including type, for example, cash, government securities), and net unsecured credit exposure.1 A [BANK] also must disclose the notional value of credit derivative hedges purchased for counterparty credit risk protection and the distribution of current credit exposure by exposure type.2

Basel Pillar 3 Disclosures (Unaudited):

Table 5--General Disclosure for Counterparty Credit Risk of OTC Derivative Contracts, Repo-Style Transactions, and Eligible Margin Loans

10

(c)

Notional amount of purchased and sold credit derivatives, segregated between use for the bank holding company's own credit portfolio and for its intermediation activities, including the distribution of the credit derivative products used, broken down further by protection bought and sold within each product group.

2020 Annual Report (Audited):

  • • Note 19--Derivative Instruments

FR Y-9C (Unaudited):

  • • Schedule HC-L - Derivatives and Off-Balance-Sheet Items

2020 Annual Report pg 119-123

FR Y-9C pg 28-31

Credit Risk Mitigation

Qualitative:

(a)

The general qualitative disclosure requirement with respect to credit risk mitigation including:

(1) policies and processes for, and an indication of the extent to which the bank holding company uses, on-and-off-balance sheet netting;

  • (2) a description of the main types of collateral taken by the bank holding company;

  • (3) the main types of guarantors/credit derivative counterparties and their creditworthiness; and

(4) information about (market or credit) risk concentrations within the mitigation taken.

2020 Annual Report (Audited):

  • • MD&A--Corporate Risk Profile

  • • Note 1--Significant Accounting Policies

  • • Note 4--Investment Securities

  • • Note 5--Loans and Allowance for Credit Losses

  • • Note 19--Derivative Instruments

  • • Note 20--Netting Arrangements for Certain Financial Instruments

  • • Note 21--Fair Values of Assets and Liabilities

Basel Pillar 3 Disclosures (Unaudited):

Credit Risk Mitigation

8

2020 Annual Report

  • pg 36-57

  • pg 79-86

  • pg 87-89

  • pg 90-95

  • pg 119-123

  • pg 124-126

  • pg 127-133

Quantitative:

(b)

For each separately disclosed credit risk portfolio, the total exposure that is covered by eligible financial collateral, and after the application of haircuts.

Basel Pillar 3 Disclosures (Unaudited):

Credit Risk Mitigation

8

(c)

For each separately disclosed portfolio, the total exposure that is covered by guarantees/credit derivatives and the risk-weighted asset amount associated with that exposure.

Basel Pillar 3 Disclosures (Unaudited):

Credit Risk Mitigation

8

Securitization

Qualitative:

(a)

The general qualitative disclosure requirement with respect to securitization (including synthetic securitizations), including a discussion of:

(1) The bank holding company's objectives for securitizing assets, including the extent to which these activities transfer credit risk of the underlying exposures away from the bank holding company to other entities and including the type of risks assumed and retained with resecuritization activity;

  • (2) The nature of the risks (e.g. liquidity risk) inherent in the securitized assets;

  • (3) The roles played by the bank holding company in the securitization process and an indication of the extent of the bank holding company's involvement in each of them;

(4) The processes in place to monitor changes in the credit and market risk of securitization exposures including how those processes differ for resecuritization exposures;

(5) The bank holding company's policy for mitigating the credit risk retained through securitization and resecuritization exposures; and

(6) The risk-based capital approaches that the bank holding company follows for its securitization exposures including the type of securitization exposure to which each approach applies.

2020 Annual Report (Audited):

  • • MD&A Corporate Risk Profile (Off-Balance Sheet Arrangements

Basel Pillar 3 Disclosures (Unaudited):

Securitization

10-11

2020 Annual Report pg 56-57

(b)

A list of:

(1) The type of securitization SPEs that the bank holding company, as sponsor, uses to securitize third-party exposures. The bank holding company must indicate whether it has exposure to these SPEs , either on- or off- balance sheet; and (2) Affiliated entities:

  • (i) That the bank holding company manages or advises; and

  • (ii) That invest either in the securitization exposures that the bank holding company has securitized or in securitization SPEs that the bank holding company sponsors.

Basel Pillar 3 Disclosures (Unaudited):

Securitization

10-11

Table

Disclosure Requirement

Disclosure Location

Disclosure

Page

Source Reference - if applicable

(c)

Summary of the bank holding company's accounting policies for securitization activities, including:

  • (1) Whether the transactions are treated as sales or financings;

  • (2) Recognition of gain-on-sale;

  • (3) Methods and key assumptions and inputs applied in valuing retained or purchased interests;

(4) Changes in methods and key assumptions and inputs from the previous period for valuing retained interests and impact of the changes;

  • (5) Treatment of synthetic securitizations;

  • (6) How exposures intended to be securitized are valued and whether they are recorded under subpart E of this part; and

(7) Policies for recognizing liabilities on the balance sheet for arrangements that could require the bank holding company to provide financial support for securitized assets.

Basel Pillar 3 Disclosures (Unaudited):

Securitization

10-11

(d)

An explanation of significant changes to any of the quantitative information set forth below since the last reporting period.

Basel Pillar 3 Disclosures (Unaudited):

Securitization

10-11

Quantitative:

(e)

The total outstanding exposures securitized by the bank holding company in securitizations that meet the operational criteria in §.141 (categorized into traditional/synthetic), by underlying exposure type separately for securitizations of third-party exposures for which the bank acts only as sponsor.

Basel Pillar 3 Disclosures (Unaudited):

Table 6-- Securitization

11

(f)

For exposures securitized by the bank holding company in securitizations that meet the operational criteria in §.141:

(1) Amount of securitized assets that are impaired/past due categorized by exposure type; and

(2) Losses recognized by the bank holding company during the current period categorized by exposure type.

Basel Pillar 3 Disclosures (Unaudited):

Table 6-- Securitization

11

(g)

The total amount of outstanding exposures intended to be securitized categorized by exposure type.

Basel Pillar 3 Disclosures (Unaudited):

Table 6-- Securitization

11

(h)

Aggregate amount of:

(1) On-balance sheet securitization exposures retained or purchased categorized by exposure type; and

(2) Off-balance sheet securitization exposures categorized by exposure type.

Basel Pillar 3 Disclosures (Unaudited):

Table 6-- Securitization

11

(i)

(1) Aggregate amount of securitization exposures retained or purchased and the associated capital requirements for these exposures, categorized between securitization and resecuritization exposures, further categorized into a meaningful number of risk weight bands and by risk-based capital approach (e.g. SSFA).

(2) Exposures that have been deducted entirely from tier 1 capital, CEIOs deducted from total capital (as described in §l.42(a)(1), and other exposures deducted from total capital should be disclosed separately by exposure type.

Basel Pillar 3 Disclosures (Unaudited):

Table 6-- Securitization

11

(j)

Summary of current year's securitization activity, including the amount of exposures securitized (by exposure type), and recognized gain or loss on sale by asset type.

Basel Pillar 3 Disclosures (Unaudited):

Table 6-- Securitization

11

(k)

Aggregate amount of resecuritization exposures retained or purchased categorized according to:

  • (1) Exposures to which credit risk mitigation is applied and those not applied; and

  • (2) Exposures to guarantors categorized according to guarantor creditworthiness categories or guarantor name.

Basel Pillar 3 Disclosures (Unaudited):

Table 6-- Securitization

11

Equities Not Subject to Market Risk Rule

Qualitative:

(a)

The general qualitative disclosure requirement with respect to equity risk, including: (1) differentiation between holdings on which capital gains are expected and those taken under other objectives including for relationship and strategic reasons; and (2) discussion of important policies covering the valuation of and accounting for equity holdings in the banking book. This includes the accounting techniques and valuation methodologies used, including key assumptions and practices affecting valuation as well as significant changes in these practices.

2020 Annual Report (Audited):

Note 1--Significant Accounting Policies

Note 7--Accounting For Transfers and Servicing of Financial Assets and Variable Interest Entities

Basel Pillar 3 Disclosures (Unaudited):

Equity Securities Not Subject to Market Risk Rule

11-12

2020 Annual Report pg 79-86 pg 97-98

Quantitative:

(b)

Value disclosed on the balance sheet of investments, as well as the fair value of those investments; for securities that are publicly traded, a comparison to publicly-quoted share values where the share price is materially different from fair value.

Basel Pillar 3 Disclosures (Unaudited):

Table 7--Equity Securities Not Subject to Market Risk Rule

11-12

(c)

The types and nature of investments, including the amount that is:

  • (1) Publicly traded; and

  • (2) Non-publicly traded.

Basel Pillar 3 Disclosures (Unaudited):

Table 7--Equity Securities Not Subject to Market Risk Rule

11-12

(d)

The cumulative realized gains (losses) arising from sales and liquidations in the reporting period.

Basel Pillar 3 Disclosures (Unaudited):

Table 7--Equity Securities Not Subject to Market Risk Rule

11-12

(e)

  • (1) Total unrealized gains (losses)

  • (2) Total latent revaluation gains (losses)

  • (3) Any amounts of the above included in tier 1 and/or tier 2 capital.

Basel Pillar 3 Disclosures (Unaudited):

Table 7--Equity Securities Not Subject to Market Risk Rule

11-12

(f)

Capital requirements broken down by appropriate equity groupings, consistent with the bank holding company's methodology, as well as the aggregate amounts and the type of equity investments subject to any supervisory transition regarding regulatory capital requirements.

Basel Pillar 3 Disclosures (Unaudited):

Table 7--Equity Securities Not Subject to Market Risk Rule

11-12

Interest Rate Risk for Non-trading Activities

Qualitative:

(a)

The general qualitative disclosure requirement, including the nature of interest rate risk for non-trading activities and key assumptions, including assumptions regarding loan prepayments and behavior of non-maturity deposits, and frequency of measurement of interest rate risk for non-trading activities.

2020 Annual Report (Audited):

  • • MD&A--Interest Rate Risk Management, Net Interest Income Simulation Analysis, and

Market Value of Equity Modeling

2020 Annual Report pg 51

Quantitative:

(b)

The increase (decline) in earnings or economic value (or relevant measure used by management) for upward and downward rate shocks according to management's method for measuring interest rate risk for non-trading activities, broken down by currency (as appropriate).

2020 Annual Report (Audited):

  • • MD&A--Interest Rate Risk Management, Net Interest Income Simulation Analysis, and

Market Value of Equity Modeling

2020 Annual Report pg 51

Supplementary Leverage Ratio

Quantitative

(1) Summarize the differences between total consolidated accounting assets and the calculation of total leverage exposure.

(2) Provide components of the total leverage exposure

Basel Pillar 3 Disclosures (Unaudited):

Table 3-- Supplementary Leverage Ratio

7

Disclaimer

U.S. Bancorp published this content on 16 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 February 2021 22:59:04 UTC.


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Net income 2021 5 579 M - -
Net Debt 2021 - - -
P/E ratio 2021 14,4x
Yield 2021 3,13%
Capitalization 81 190 M 81 190 M -
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Capi. / Sales 2022 3,54x
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Free-Float 70,8%
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Spread / Lowest Target -16,7%
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Andrew J. Cecere Chairman, President & Chief Executive Officer
Terrance R. Dolan Chief Financial Officer & Vice Chairman
Jeffry H. von Gillern Vice Chairman-Technology & Operations Services
Katheriner B. Quinn Vice Chairman & Chief Administrative Officer
Olivia Faulkner Kirtley Lead Independent Director
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