US Bank 2015 Annual Report Download - page 69

TABLE 23 REGULATORY CAPITAL RATIOS
U.S. Bancorp
U.S. Bank National
Association
At December 31 (Dollars in Millions) 2015 2014 2015 2014
Basel III transitional standardized approach:
Common equity tier 1 capital ........................................... $ 32,612 $ 30,856 $ 33,831 $ 32,381
Tier 1 capital ........................................................ 38,431 36,020 34,148 32,789
Total risk-based capital ............................................... 45,313 43,208 41,112 40,008
Risk-weighted assets ................................................. 341,360 317,398 336,938 313,261
Common equity tier 1 capital as a percent of risk-weighted assets ............. 9.6% 9.7% 10.0% 10.3%
Tier 1 capital as a percent of risk-weighted assets .......................... 11.3 11.3 10.1 10.5
Total risk-based capital as a percent of risk-weighted assets ................. 13.3 13.6 12.2 12.8
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) . . . 9.5 9.3 8.5 8.6
Basel III transitional advanced approaches:
Common equity tier 1 capital ........................................... $ 32,612 $ 30,856 $ 33,831 $ 32,381
Tier 1 capital ........................................................ 38,431 36,020 34,148 32,789
Total risk-based capital ............................................... 42,262 40,475 38,090 37,299
Risk-weighted assets ................................................. 261,668 248,596 258,207 245,007
Common equity tier 1 capital as a percent of risk-weighted assets ............. 12.5% 12.4% 13.1% 13.2%
Tier 1 capital as a percent of risk-weighted assets .......................... 14.7 14.5 13.2 13.4
Total risk-based capital as a percent of risk-weighted assets ................. 16.2 16.3 14.8 15.2
Bank Regulatory Capital Requirements
Minimum
Well-
Capitalized
2015
Common equity tier 1 capital as a percent of risk-weighted assets ..................................... 4.5% 6.5%
Tier 1 capital as a percent of risk-weighted assets .................................................. 6.0 8.0
Total risk-based capital as a percent of risk-weighted assets .......................................... 8.0 10.0
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) ........................... 4.0 5.0
2014
Common equity tier 1 capital as a percent of risk-weighted assets ..................................... 4.0% *
Tier 1 capital as a percent of risk-weighted assets .................................................. 5.5 6.0%
Total risk-based capital as a percent of risk-weighted assets .......................................... 8.0 10.0
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) ........................... 4.0 5.0
* Not applicable.
FOURTH QUARTER SUMMARY
The Company reported net income attributable to
U.S. Bancorp of $1.5 billion for the fourth quarter of 2015, or
$0.80 per diluted common share, compared with $1.5 billion,
or $0.79 per diluted common share, for the fourth quarter of
2014. Return on average assets and return on average
common equity were 1.41 percent and 13.7 percent,
respectively, for the fourth quarter of 2015, compared with
1.50 percent and 14.4 percent, respectively, for the fourth
quarter of 2014.
Total net revenue, on a taxable-equivalent basis for the
fourth quarter of 2015, was $42 million (0.8 percent) higher
than the fourth quarter of 2014, reflecting a 2.6 percent
increase in net interest income, partially offset by a
1.3 percent decrease in noninterest income. The increase in
net interest income from the fourth quarter of 2014 was the
result of growth in average earning assets, partially offset by a
continued shift in loan portfolio mix. Noninterest income
decreased from a year ago primarily due to the impact of the
fourth quarter 2014 Nuveen gain, partially offset by fee
revenue growth and the HSA deposit sale.
Noninterest expense in the fourth quarter of 2015 was
higher than the fourth quarter of 2014, primarily due to
increases in compensation and employee benefits expenses
and other costs related to risk and compliance activities,
partially offset by lower charitable contributions and the
impact of prior year legal accruals.
Fourth quarter 2015 net interest income, on a taxable-
equivalent basis, was $2.9 billion, compared with $2.8 billion
in the fourth quarter of 2014. The $72 million
(2.6 percent) increase was principally the result of growth in
average earning assets, partially offset by a continued shift in
loan portfolio mix. Average earning assets were $18.1 billion
(5.1 percent) higher in the fourth quarter of 2015, compared
with the fourth quarter of 2014, driven by increases of $10.3
billion (4.2 percent) in loans and $7.4 billion (7.5 percent) in
investment securities. The net interest margin, on a taxable-
equivalent basis, in the fourth quarter of 2015 was
3.06 percent, compared with 3.14 percent in the fourth
quarter of 2014, reflecting a change in the loan portfolio mix,
as well as growth in the investment portfolio at lower average
rates and lower reinvestment rates on investment securities.
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